Agreement Made Regarding Slots Revenue at Gulfstream Park

Magna Entertainment Corp., owner of Gulfstream Park, and the Florida Horsemen Benevolent and Protective Association announce that they have come to an agreement on the revenue distribution that horsemen will receive when slots become operational at the Hallandale Beach racetrack. Plans call for 500 Las Vegas-style slot machines to be installed and operational at Gulfstream by early fall.  “We have come a long way over the past several months and in the process have gained a better understanding of each other’s views regarding the future of our industry,” said MEC Chairman Frank Stronach.

Paul Micucci, who took the posts of Gulfstream Park President and General Manager almost exactly two months ago (May 15), said, “These negotiations have deepened my understanding of the concerns the horsemen have for the future. Through the years Gulfstream has built a very good relationship with horsemen and it’s my hope that this agreement assures them that our relationship will remain strong. “This was a long journey but a valuable one for us to take. We strengthened our relationship with horsemen, absolutely, but we also strengthened our relationship with the people who oversee the state’s regulatory bodies. The bonds we have developed will serve Gulfstream, the horsemen and the State of Florida well in the future.”

Terms of the agreement call for the FHBPA to receive 7.5% of the revenue after the first 500 machines are installed. The State of Florida, with the nation’s highest tax rate at 50%, could clear upward of $50 million the first full year of slots operation. A major benefactor to that windfall will be the state’s education program. Year-round employment for local residents is another benefit. A vote to allow slots in Dade and Broward counties and thereby amend the state constitution was held March 8, 2005: Broward voters passed the amendment (57%-43%) but voters in Dade did not (52%-48%). Gulfstream is one of four pari-mutuel facilities in Broward County that can have slot machines.