This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1269a.RRS
DATE: 2/16/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1269 Pari-mutuel Wagering
SPONSOR(S): Daley
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee 16 Y, 1 N Thompson Anstead
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Pari-mutuel wagering is authorized in Florida for certain permitholders. These activities are overseen and
regulated by the Division of Pari-Mutuel Wagering (Division) with the Department of Business and Professional
Regulation (DBPR). However, the Florida Gaming Control Commission (Commission), established within the
Department of Legal Affairs, Office of the Attorney General, in 2021, was given responsibility over the state’s
gambling laws, including pari-mutuel wagering, beginning July 1, 2022.
A license to offer pari-mutuel wagering, slot machine gambling, or a cardroom at a pari-mutuel facility is a
privilege granted by the state. Currently, pari-mutuel permitholders’ authority to conduct certain live racing or
games is limited as follows:
A greyhound permitholder may not conduct live racing.
A jai alai permitholder, harness horse racing permitholder, or quarter horse racing permitholder may
elect not to conduct live racing or games.
A thoroughbred permitholder must conduct live racing.
Permitholders that do not conduct live racing or games retain their permit, are considered a pari-mutuel facility.
The bill amends Florida’s pari-mutuel wagering laws, as follows:
Authorizes a greyhound permitholder, jai alai permitholder, thoroughbred permitholder, or quarter horse
racing permitholder that held such permit during the 2020-2021 operating year to conduct live harness
horse racing.
Authorizes a permitholder who elects to conduct live harness horse racing to conduct live harness
horse racing as long as they qualify for the permit they held during the 2020-2021 operating year.
Authorizes a greyhound permitholder, jai alai permitholder, thoroughbred permitholder, or quarter horse
racing permitholder who elects to conduct live harness horse racing to make a request to conduct such
racing, and have their request received by October 1, 2022.
Provides that conducting live harness horse racing is an additional benefit, and not considered a
conversion of a permit or a new or additional permit. A permitholder who elects to conduct live harness
horse racing is not entitled to receive any additional or other types of pari-mutuel permits.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the bill is July 1, 2022. STORAGE NAME: h1269a.RRS PAGE: 2
DATE: 2/16/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
General Overview of Gaming in Florida
Gambling is generally prohibited in Florida, unless specifically authorized. Section 7, Art. X, of the
Florida Constitution prohibits lotteries, other than pari-mutuel pools, from being conducted in Florida.
Chapter 849, F.S., includes prohibitions against slot machines, keeping a gambling house and running
a lottery. However, a constitutional amendment approved by voters in 1986 authorized state-operated
lotteries, and a constitutional amendment in 2004 authorized slot machines in Miami-Dade and
Broward Counties.
The following gaming activities are also authorized by law and regulated by the state:
Pari-mutuel
1
wagering;
2
Gaming on tribal reservations in accordance with the Indian Gaming and Regulatory Act and the
2010 Gaming Compact with the Seminole Tribe of Florida;
Slot machine gaming at certain licensed pari-mutuel locations in Miami-Dade County and
Broward County;
3
and
Cardrooms
4
at certain pari-mutuel facilities.
5
Chapter 849, F.S., also authorizes, under specific and limited conditions, the conduct of penny-ante
games,
6
bingo,
7
charitable drawings,
8
game promotions (sweepstakes),
9
bowling tournaments,
10
and
skill-based amusement games and machines at specified locations.
11
In 2013, the legislature clarified that Internet café style gambling machines were illegal in the state. The
legislation clarified existing sections of law regarding slot machines, charitable drawings, game
promotions, and amusement machines and created a rebuttable presumption that machines used to
simulate casino-style games in schemes involving consideration and prize are prohibited slot
machines.
12
In 2015, the legislature determined that the regulation of the operation of skill-based amusement
games and machines would ensure compliance with Florida’s limitations on gambling and prevent the
expansion of casino-style gambling. The legislature clarified regulations related to the operation and
1
“Pari-mutuel” is defined in Florida law as “a system of betting on races or games in which the winners divide the total amount bet,
after deducting management expenses and taxes, in proportion to the sums they have wagered individually and with regard to the odds
assigned to particular outcomes. See s. 550.002(22), F.S.
2
See ch. 550, F.S., relating to the regulation of pari-mutuel activities.
3
See FLA. CONST., art. X, s. 23, and ch. 551, F.S.
4
S. 849.086(2)(c), F.S., defines “cardroom” to mean “a facility where authorized card games are played for money or anything of
value and to which the public is invited to participate in such games and charged a fee for participation by the operator of such
facility.”
5
The Department of Business and Professional Regulation (DBPR) has issued licenses to permitholders with 2021-2022 Operating
Licenses to operate 27 cardrooms. See http://www.myfloridalicense.com/DBPR/pari-mutuel-wagering/permitholder-operating-
licenses-2021-2022/ (last visited Jan. 23, 2022).
6
S. 849.085, F.S.
7
S. 849.0931, F.S.
8
S. 849.0935, F.S.
9
S. 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
10
S. 849.141, F.S.
11
S. 546.10, F.S.
12
Florida House of Representatives Select Committee on Gaming, Final Bill Analysis of 2013 CS/HB 155, p. 1 (Apr. 19, 2013). STORAGE NAME: h1269a.RRS PAGE: 3
DATE: 2/16/2022
use of amusement games or machines to ensure that regulations would not be interpreted as creating
an exception to the state's general prohibitions against gambling.
13
Amendment to Florida Constitution Prohibiting Racing of and Wagering on Greyhounds or
Other Dogs
During the 2018 General Election, the voters approved an initiative constitutional amendment,
Amendment 13, Prohibition on Racing of and Wagering on Greyhounds or Other Dogs, which has been
codified in the State Constitution as Article X, Section 32.
14
Article X, Section 32 states:
Prohibition on racing of and wagering on greyhounds or other dogs.—The humane treatment
of animals is a fundamental value of the people of the State of Florida. After December 31,
2020, a person authorized to conduct gaming or pari-mutuel operations may not race
greyhounds or any member of the Canis Familiaris subspecies in connection with any wager
for money or any other thing of value in this state, and persons in this state may not wager
money or any other thing of value on the outcome of a live dog race occurring in this state.
The failure to conduct greyhound racing or wagering on greyhound racing after December
31, 2018, does not constitute grounds to revoke or deny renewal of other related gaming
licenses held by a person who is a licensed greyhound permitholder on January 1, 2018, and
does not affect the eligibility of such permitholder, or such permitholder’s facility, to conduct
other pari-mutuel activities authorized by general law. By general law, the legislature shall
specify civil or criminal penalties for violations of this section and for activities that aid or abet
violations of this section.
As of January 1, 2021, wagering on live greyhound racing in Florida is completely prohibited. However,
cardroom and slot machine facilities by such permitholders may continue to operate after the closure of
racing activities.
Regulation of Pari-mutuel Wagering
15
Oversight
Since approximately 1931, pari-mutuel wagering has been authorized in Florida for jai alai, greyhound
racing, and horseracing. These activities have been overseen and regulated
16
by the Division of Pari-
Mutuel Wagering (Division) with the Department of Business and Professional Regulation (DBPR).
17
However, the Legislature established the Florida Gaming Control Commission within the Department of
Legal Affairs, Office of the Attorney General, in 2021. The commission is tasked with exercising all
regulatory and executive powers of the state on all forms of gambling authorized by the State
Constitution or law including pari-mutuel wagering, card rooms, slot machine facilities, and the
oversight of gaming compacts under the federal Indian Gaming Regulatory Act but excluding state
lottery games authorized by the State Constitution.
Effective July 1, 2022, all powers, duties, functions, records, offices, personnel, associated
administrative support positions, property, pending issues, existing contracts, administrative authority,
13
s. 546.10, F.S.
14
14
See the text of Amendment 13, now codified as art. X, s. 32, at
http://www.leg.state.fl.us/Statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes#A10S32 (last visited Jan. 23, 2022).
15
s. 550.002(22), F.S. Pari-mutuel is defined as "a system of betting on races or games in which the winners divide the total amount
bet, after deducting management expenses and taxes, in proportion to the sums they have wagered individually and with regard to the
odds assigned to particular outcomes."
16
From 1932 to 1969, Florida’s pari-mutuel industry was regulated by the State Racing Commission. In 1970, the commission became
a division within the Department of Business Regulation, which, in 1993, became DBPR.
17
Department of Business and Professional Regulation, Pari-mutuel Wagering – Permitholder Operating Licenses 2021-2022,
http://www.myfloridalicense.com/DBPR/pari-mutuel-wagering/permitholder-operating-licenses-2021-2022/ (last visited Jan. 23,
2022). STORAGE NAME: h1269a.RRS PAGE: 4
DATE: 2/16/2022
administrative rules, and unexpended balances of appropriations, allocations, and other funds in DBPR
related to the oversight responsibilities by the state compliance agency for authorized gaming
compacts under s. 285.710, F.S., the regulation of pari-mutuel wagering under ch. 550, F.S., the
regulation of slot machines and slot machine gaming under ch. 551, F.S., and the regulation of
cardrooms under s. 849.086, F.S., are transferred by a type two transfer, as defined in s. 20.06(2),
F.S., to the Florida Gaming Control Commission.
18
Licensure
A license to offer pari-mutuel wagering, slot machine gaming, or a cardroom at a pari-mutuel facility is a
privilege granted by the state.
19
Chapter 550, F.S., provides specific permitting and licensing requirements, taxation provisions, and
regulations for the conduct of the pari-mutuel industry. Pari-mutuel wagering activities are limited to
operators who have received a permit from the Division, which is then subject to ratification by county
referendum.
Permitholders apply for an operating license annually to conduct pari-mutuel wagering activities.
20
Certain permitholders are also authorized to operate cardrooms
21
and slot machines at their facility.
22
According to the Division’s Annual Report, in the 2019-2020 Fiscal Year there were 38 pari-mutuel
permitholders licensed to operate, in addition to one thoroughbred sales facility that holds a limited
license to conduct intertrack wagering. There are eight pari-mutuel facilities that have been licensed to
operate slot machines. Several locations have multiple permits that operate at a single facility.
According the Division’s Annual Report, in the 2019-2020 Fiscal Year the following types of permits
were licensed to operate:
Nineteen Greyhound Racing permits
Five Thoroughbred Horse Racing permits
One Harness Horse Racing permit
Five Quarter Horse Racing permits
Eight Jai-Alai permits
According to the Division, ten permitholders were not issued operating licenses for Fiscal Year
2020-2021: two greyhound permitholders,
23
two jai alai permitholders,
24
one limited thoroughbred
permitholder,
25
and five quarter horse permitholders.
26
There were eight license suspensions, and
$19,075 in fines assessed for violations of all pari-mutuel statutes and administrative rules in Fiscal
Year 2019-2020.
27
18
Ch. 2021-269, Laws of Fla.
19
Solimena v. State, 402 So.2d 1240, 1247 (Fla. 3d DCA 1981), review denied, 412 So.2d 470, states “Florida courts have
consistently emphasized the special nature of legalized racing, describing it as a privilege rather than as a vested right,” citing State ex
rel. Mason v. Rose, 122 Fla. 413, 165 So. 347 (1936). See s. 550.1625(1), F.S., “…legalized pari-mutuel betting at dog tracks is a
privilege and is an operation that requires strict supervision and regulation in the best interests of the state.”
20
s. 550.0115, F.S.
21
s. 849.086, F.S.
22
s. 551.104, F.S.
23
Jefferson County Kennel Club (Monticello) and North American Racing Association (Key West).
24
Gadsden Jai-alai (Chattahoochee) and Tampa Jai Alai.
25
Under s. 550.3345, F.S., during Fiscal Year 2010-2011 only, holders of quarter horse racing permits were allowed to convert their
permits to a thoroughbred racing permit, conditioned upon specific use of racing revenues for enhancement of thoroughbred purses
and awards, promotion of the thoroughbred horse industry, and the care of retired thoroughbred horses. Two conversions occurred,
Gulfstream Park Thoroughbred After Racing Program (GPTARP) (Hallandale, Broward County), which was licensed to operate in
2019-2020, and Ocala Thoroughbred Racing (Marion County), which was not licensed to operate.
26
ELH Jefferson (Jefferson County), DeBary Real Estate Holdings (Volusia County), North Florida Racing (Jacksonville), Pompano
Park Racing (Pompano Beach), and St. Johns Racing (St. Johns County). See
http://www.myfloridalicense.com/dbpr/pmw/documents/PermitholdersList_2020-2021.pdf (last visited Jan. 23 2022).
27
Department of Business and Professional Regulation Division of Pari-mutuel Wagering, 89th Annual Report for Fiscal Year 2019-
2020, AnnualReport-2019-2020--89th--20210224.pdf pg. 5, (last visited Jan. 23, 2022). STORAGE NAME: h1269a.RRS PAGE: 5
DATE: 2/16/2022
Issuance of and Revocation of Pari-mutuel Permits and Annual Licenses
In 2021, a law became effective that prohibits the issuance, relocation, or conversion of any licenses,
and prohibits a pari-mutuel permitholder from being issued an operating license for the conduct of pari-
mutuel wagering, slot machine gaming, or the operation of a cardroom if the permitholder did not hold
an operating license for the conduct of pari-mutuel wagering for fiscal year 2020-2021, but exempts
converted thoroughbred permits under s. 550.3345, F.S. It also allows, for Fiscal Year 2021-2022 only,
the Division to approve changes to a permitholder’s operating dates if the request is received before
October 1, 2021.
Currently, a permit for the operation of a pari-mutuel facility, cardroom, or slot machine facility may only
be held by facilities with permits on January 1, 2021. No pari-mutuel wagering permit may be
converted to another class of permit.
The Division may revoke or suspend any permit or license upon the willful violation by the permitholder
or licensee of any provision of ch. 550, F.S., or any administrative rule adopted by the Division, and
may impose a civil penalty against the permitholder or license up to $1,000 for each offense.
28
Pari-Mutuel Wagering, Slot Machine and Cardroom State Revenue
License fees and taxes collected by pari-mutuel wagering permitholders, including slot machine and
cardroom permitholders, are deposited with the Chief Financial Officer, to the credit of the Pari-mutuel
Wagering Trust Fund. Slot machine tax revenue is transferred from the Pari-mutuel Wagering Trust
Fund to the Educational Enhancement Trust Fund to supplement public education funding statewide.
Taxes collected by cardrooms are split between the Pari-mutuel Wagering Trust Fund and the General
Revenue Fund.
Live Performance Requirements
A license to offer pari-mutuel wagering, slot machine gambling, or a cardroom at a pari-mutuel facility is
a privilege granted by the state.
29
Currently, the State only requires thoroughbred permitholders to
conduct live racing;
30
a greyhound permitholder may not conduct live racing; and a jai alai permitholder,
harness horse racing permitholder, or quarter horse racing permitholder may elect not to conduct live
racing or games.
A greyhound permitholder, jai alai permitholder, harness horse racing permitholder, or quarter horse
racing permitholder that does not conduct live racing or games:
31
Retains its permit;
Is a pari-mutuel facility as defined in s. 550.002(23), F.S.
Is eligible, but not required, to be a guest track, and if the permitholder is a harness horse racing
permitholder, is eligible to be a host track for purposes of intertrack wagering and simulcasting
pursuant to ss. 550.3551, 550.615, 550.625, and 550.6305, F.S.; and
Remains eligible for a cardroom license.
A permitholder or licensee may not conduct live greyhound racing or dogracing in connection with any
wager for money or any other thing of value in the state. The Division is authorized to deny, suspend,
or revoke any permit or license ch. 550, F.S., for conducting live greyhound racing or dogracing in
violation of this provision. In addition to, or in lieu of, denial, suspension, or revocation of such permit or
license, the Division is authorized to impose a civil penalty of up to $5,000. All penalties imposed and
28
S. 550.054(9)(b), F.S.
29
See s. 550.1625(1), F.S., (legalized pari-mutuel betting at dog tracks “is a privilege and is an operation that requires strict
supervision and regulation in the best interests of the state”).
30
S. 550.01215(1)(b)1., F.S.
31
Id. STORAGE NAME: h1269a.RRS PAGE: 6
DATE: 2/16/2022
collected must be deposited with the Chief Financial Officer to the credit of the General Revenue
Fund.
32
Permitholders are authorized to amend their applications through February 28.
33
Notwithstanding any other provision of law, other than a permitholder issued a permit pursuant to s.
550.3345, F.S., which is the conversion of quarter horse permit to a limited thoroughbred permit, a pari-
mutuel permitholder may not be issued an operating license for the conduct of pari-mutuel wagering,
slot machine gaming, or the operation of a cardroom if the permitholder did not hold an operating
license for the conduct of pari-mutuel wagering for fiscal year 2020-2021.
34
After the first license has been issued to a permitholder, all subsequent annual applications for a
license must be accompanied by proof, in such form as the Division may by rule require, that the
permitholder continues to possess the qualifications prescribed by this chapter, and that the permit has
not been disapproved at a later election.
35
The Division is required to issue each license no later than March 15, and each permitholder is required
to operate all performances at the date and time specified on its license.
36
Effect of the Bill
The bill authorizes greyhound permitholders, jai alai permitholders, thoroughbred permitholders, or
quarter horse racing permitholders that held such permit during the 2020-2021 operating year to elect
to conduct live harness horse racing.
The bill provides that the authorization to conduct harness horse racing pursuant to ch. 550, F.S., may
only be granted to a permitholder that held an operating license to conduct pari-mutuel wagering for
fiscal year 2020-2021 or that holds a permit issued pursuant to s. 550.3345, F.S., which is a
permitholder that converted a quarter horse permit to a limited thoroughbred permit.
However, such election to conduct harness horse racing does not entitle such permitholder to receive
an additional, or other type of, permit.
The bill provides that live harness horse racing may only be conducted pursuant to ch. 550, F.S., if
such permitholder qualifies to retain the greyhound permit, jai alai permit, thoroughbred permit, or
quarter horse racing permit held during the 2020-2021 operating year.
The bill provides that the authorization granted to conduct harness horse racing to a permitholder other
than a harness horse racing permitholder is not considered the granting or issuance of a permit or
license, or a conversion of such permit, but is merely considered an additional benefit of holding a
greyhound permit, jai alai permit, thoroughbred permit, or quarter horse racing permit issued pursuant
to s. 550.3345, F.S.
The bill extends the timeframe for which the Division is authorized to approve changes in operating
dates for a jai alai permitholder, harness horse racing permitholder, or quarter horse racing
permitholder from fiscal year 2021-2022 to 2022-2023 state fiscal years only.
The bill requires greyhound permitholders, jai alai permitholders, thoroughbred permitholders, or
quarter horse racing permitholders who elect to conduct live harness racing to make a request to
conduct such racing, and must have their request received by the Division by October 1, 2022.
32
S. 550.01215(1)(b)2., F.S.
33
S. 550.01215(1)(c), F.S.
34
S. 550.01215(1)(d), F.S.
35
S. 550.01215(2), F.S.
36
S. 550.01215(3), F.S. STORAGE NAME: h1269a.RRS PAGE: 7
DATE: 2/16/2022
B. SECTION DIRECTORY:
Section 1: Amends s. 550.01215, F.S., relating to license application; periods of operation; license
fees; bond.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
State agencies associated with the provisions in the bill may need to revise their rules to the extent the
rules are inconsistent with the authority to conduct live harness horse racing.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
STORAGE NAME: h1269a.RRS PAGE: 8
DATE: 2/16/2022