The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Regulated Industries
BILL: SPB 7044
INTRODUCER: For consideration by the Regulated Industries Committee
SUBJECT: Changes in Ownership of or Interest in Pari-mutuel Permits
DATE: March 28, 2023
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Kraemer Imhof Pre-meeting
2.
3.
I. Summary:
SPB 7044 revises provisions relating to pari-mutuel wagering
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permits and cardroom licenses to
address an inadvertent oversight respecting the sale, transfer, or assignment of permits and
issuance of cardroom licenses.
The bill revises s. 550.054(15), F.S., relating to permits for the conduct of pari-mutuel wagering
(PMW permit), to clarify that a PMW permit may be held by a permitholder who held an
operating license to conduct pari-mutuel wagering in Fiscal Year 2020-2021 or a purchaser,
transferee, or assignee of a valid PMW permit, if the purchase, transfer, or assignment is
approved by the Florida Gaming Control Commission (commission) before such purchase,
transfer, or assignment. However, current law prohibiting the commission from approving or
issuing any additional PMW permits remains effective.
Similarly, the bill revises s. 849.086(5), F.S., relating to cardrooms authorized to operate in the
state,
2
to clarify that a purchaser, transferee, or assignee of a valid PMW permit may be issued a
license to operate an authorized cardroom.
The bill does not have an impact on state government.
The bill is effective upon becoming a law.
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(21), F.S.
2
Under s. 849.086(5)(a), F.S., a cardroom license may only be issued to a licensed pari-mutuel permitholder, and an
authorized cardroom may only be operated at the same facility where the permitholder is authorized to conduct pari-mutuel
wagering activities under its valid PMW permit.
REVISED: BILL: SPB 7044 Page 2
II. Present Situation:
In 202l, the Legislature updated Florida law for authorized gaming in the state,
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providing in
part, that 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.
4
Under current law, a permit for the conduct of pari-mutuel wagering and associated
cardroom or slot machine licenses
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may only be held by a permitholder, other than a limited
thoroughbred permitholder, who held an operating license for the conduct of pari-mutuel
wagering for Fiscal year 2020-2021.
6
Further, permits held on January 1, 2021 are deemed valid,
but new permits for pari-mutuel wagering may not be approved or issued.
7
Current law also requires that cardroom licenses not be issued to any permitholder, other than a
limited thoroughbred permitholder, if the permitholder did not hold an operating license for
Fiscal Year 2020-2021.
8
Section 550.054(11), F.S., generally requires that any transfer or assignment of a PMW permit
receive prior approval
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by the commission, which must determine the eligibility of persons and
entities to hold a PMW permit pursuant to s. 550.1815, F.S. Similarly, if a PMW permit is held
by a corporation or business entity other than an individual, the transfer of l0 percent or more of
the stock or other evidence of ownership or equity in the permitholder may not be made without
the prior approval of the transferee by the commission.
10
Section 550.1815, F.S., addresses which persons and entities (including but not limited to
employees, officers and directors, partners, and owners of the permitholder) may hold permits,
based on whether they are of “good moral character,” or have been convicted of a disqualifying
felony
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or for bookmaking.
12
In December 2022, West Flagler Associates, Ltd. applied to the Florida Gaming Control
Commission (commission) to transfer its pari-mutuel permit #155 and associated licenses to
3
See ch. 2021-271, Laws of Fla.
4
Section 550.01215(1)(d), F.S.
5
Under s. 551.114(4), F.S., designated slot machine gaming areas must be located at the address specified in the licensed
permitholder's slot machine license issued for Fiscal Year 2020-2021.
6
Section 550.054(15)(a), F.S.
7
Section 550.054(15)(c), F.S.
8
Section 849.086(5)(c), F.S.
9
There is one exception to the prior-approval requirement in s. 550.054(11)(a), F.S., which is that the holder of a permit
converted to a jai alai permit “may lease or build anywhere within the county in which its permit is located.” As of 2021,
such conversions are prohibited. See s. 550.054(15)(d), F.S.
10
See s. 550.054(11)(b), F.S.
11
Pursuant to s. 550.1815(1)(b), F.S., the following are disqualifying felonies: (1) a felony in Florida; (2) any felony in any
other state which would be a felony if committed in Florida under the laws of this state; (3) any felony under the laws of the
United States; or (4) a felony under the laws of another state if related to gambling which would be a felony under Florida
law if the offense was committed in Florida.
12
The term “bookmaking” is defined in s. 849.25, F.S., to mean “the act of taking or receiving, while engaged in the business
or profession of gambling, any bet or wager upon the result of any trial or contest of skill, speed, power, or endurance of
human, beast, fowl, motor vehicle, or mechanical apparatus or upon the result of any chance, casualty, unknown, or
contingent event whatsoever.” BILL: SPB 7044 Page 3
conduct pari-mutuel wagering and slot machine gaming, and operate a cardroom, to Wind Creek
Miami, LLC, a wholly owned subsidiary of PCI Gaming Authority, an unincorporated chartered
instrumentality of the Poarch Band of Creek Indians. The commission did not approve the
transfer of the permit because Wind Creek Miami, LLC did not hold an operating license for the
conduct of pari-mutuel wagering for Fiscal Year 2020-2021 as required by s.
550.054(15)(a), F.S.
13
In February 2023, the commission conditionally approved the acquisition of West Flagler
Associates, Ltd.’s permit after PCI Gaming Authority substituted Gretna Racing LLC as the
purchaser of pari-mutuel permit #155 and the accompanying pari-mutuel, slot machine, and
cardroom licenses. Gretna Racing LLC did hold operating an operating license for pari-mutuel
wagering and the operation of a cardroom for Fiscal Year 2020-2021.
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III. Effect of Proposed Changes:
SPB 7044 revises provisions relating to pari-mutuel wagering permits and cardroom licenses to
address an inadvertent oversight respecting the sale, transfer, or assignment of permits and
issuance of cardroom licenses.
Section 1 of the bill revises s. 550.054(15), F.S., relating to PMW permits, to clarify that a
purchaser, transferee, or assignee of a valid PMW permit may be issued a PMW permit to be
purchased, transferred, or assigned by a permitholder, if approved by the Florida Gaming Control
Commission (commission) before such purchase, transfer, or assignment. However, current law
prohibiting the commission from approving or issuing any additional PMW permits remains
effective.
Section 2 of the bill revises s. 849.086(5), F.S., relating to cardrooms authorized to operate in the
state, to clarify that a purchaser, transferee, or assignee of a valid PMW permit may be issued a
license to operate an authorized cardroom.
The bill is effective upon becoming a law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
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Section 550.01215(1)(d), F.S., also prohibits the issuance of 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 to conduct pari-
mutuel wagering for Fiscal Year 2020-2021. Section 849.086(5)(c), F.S., also prohibits the issuance of a cardroom license
under the same restrictions.
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Memorandum to the Florida Gaming Control Commission from Ross Marshman, General Counsel, Proposed acquisition
of a pari-mutuel wagering permit and its paired licenses by Gretna Racing, LLC, from West Flagler Associates, Ltd.,
February 6, 2023 (on file with the Senate Regulated Industries Committee). BILL: SPB 7044 Page 4
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None.
B. Private Sector Impact:
The clarification in the bill that purchasers, transferees, and assignees of a valid pari-
mutuel permit may hold a valid pari-mutuel permit, if approved by the commission
before the change in ownership, eliminates an inadvertent uncertainty in current law, for
those permitholders authorized to conduct pari-mutuel wagering who wish to sell,
transfer, or assign a valid pari-mutuel permit and its associated licenses.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 550.054 and
849.086.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None. BILL: SPB 7044 Page 5
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.