This document does not reflect the intent or official position of the bill sponsor or House of Representatives.
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DATE: 4/29/2024
HOUSE OF REPRESENTATIVES STAFF FINAL BILL ANALYSIS
BILL #: CS/HB 909 Pari-mutuel Permitholders
SPONSOR(S): Commerce Committee, Esposito
TIED BILLS: IDEN./SIM. BILLS: CS/CS/SB 804
FINAL HOUSE FLOOR ACTION: 111 Y’s
3 N’s GOVERNOR’S ACTION: Approved
SUMMARY ANALYSIS
CS/HB 909 passed the House on March 6, 2024, as CS/CS/SB 804.
The Florida Gaming Control Commission (Commission) is responsible for exercising all regulatory and
executive powers of the state with respect to gambling, including pari-mutuel wagering, cardrooms, and slot
machine facilities. The Florida Pari-mutuel Wagering Act (Act) provides specific permitting and licensure
requirements for the pari-mutuel industry. Pari-mutuel wagering activities are limited to operators who have
received a permit from the Commission, which is then subject to ratification by county referendum.
Permitholders apply for an operating license annually to conduct pari-mutuel wagering activities. Certain
permitholders are authorized to operate cardrooms and slot machines at their facility.
The bill revises provisions related to pari-mutuel wagering licenses, permit and application procedures, as
follows:
Authorizes the Commission to penalize a licensee when a person falsely swears on an application.
Establishes email as the primary service of legal filings for the Commission, including final agency
action.
Extends the filing timeframe for pari-mutuel operating license, and thoroughbred racing, applications for
licensure from December 15 - January 4, to January 15 - February 4, the issuance date from March 15
to April 15, and the application amendment date from February 28 to March 28.
Authorizes the Commission to approve minor changes in performance dates for pari-mutuel wagering
permitholders, removes the standards related to permitholders objecting to such changes, and makes it
permissive, instead of mandatory, for the Commission to consider the impact of such changes to state
revenues.
Authorizes the Commission to take action against a racetrack occupational licensee who has been
subject to certain federal horseracing penalties, including for a finding of a prohibited substance in an
animal.
Establishes a single audit and reporting requirement for pari-mutuel and slot machine permitholders.
Revises the application and issuance fiscal year, submission, and issuance dates of nonwagering
licenses to line up with the pari-mutuel operating license timeframes.
Removes the authority of the Commission to conduct an eligibility investigation relating to new
ownership or management interest in a nonwagering permit.
Authorizes the Commission to waive the disqualifying offenses for slot machine occupational license
applicants in certain circumstances.
Effective upon becoming law, clarifies that certain horse racetracks in the state may continue to receive
broadcasts of horseraces conducted at horse racetracks outside of Florida.
The bill does not appear to have a fiscal impact on state or local government. The bill may have a positive
fiscal impact on the private sector.
The bill was approved by the Governor on April 26, 2024, ch. 2024-115, L.O.F., and will become effective on
July 1, 2024.
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I. SUBSTANTIVE INFORMATION
A. EFFECT OF CHANGES:
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.
Chapter 849, F.S., also authorizes, under specific and limited conditions, the conduct of penny-ante
games,
5
bingo,
6
charitable drawings,
7
game promotions (sweepstakes),
8
bowling tournaments,
9
and
skill-based amusement games and machines at specified locations.
10
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 prizes are prohibited slot
machines.
11
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
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.
12
Amendment to Florida Constitution Prohibiting Racing of and Wagering on Greyhounds or Other Dogs
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
S. 849.085, F.S.
6
S. 849.0931, F.S.
7
S. 849.0935, F.S.
8
S. 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
9
S. 849.141, F.S.
10
S. 546.10, F.S.
11
Florida House of Representatives Select Committee on Gaming, Final Bill Analysis of 2013 CS/HB 155, p. 1 (Apr. 19, 2013).
12
S. 546.10, F.S.
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DATE: 4/29/2024
During the 2018 General Election, 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.
13
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.
Pari-mutuel Wagering
Since approximately 1931, pari-mutuel wagering has been authorized in Florida for jai alai, greyhound
racing, and horseracing. These activities are overseen and regulated
14
by the Division of Pari-Mutuel
Wagering (Division) at the Florida Gaming Control Commission (Commission), which is housed within
the Department of Legal Affairs, Office of the Attorney General.
15
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.
16
Pari-mutuel Wagering 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. During the 2022-2023 fiscal year, the pari-mutuel industry operated 447 racing and
gaming days, which resulted in state revenue of $6,291,327, total paid attendance of 61,775, and total
pari-mutuel handle of $469,498,714.
17
Pari-mutuel Wagering Live Performance Requirements
13
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. 27, 2024).
14
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.
15
See ss. 16.71-16.716, F.S.
16
S. 16.712, F.S.
17
Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023, https://flgaming.gov/pmw/annual-reports/docs/2022-
2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 12, 2024).
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Currently, only thoroughbred permitholders are required to conduct live racing.
18
Greyhound
permitholders may not conduct live racing, and jai alai permitholders, harness horse racing
permitholders, or quarter horse racing permitholders 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:
19
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 in 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
collected must be deposited with the Chief Financial Officer to the credit of the General Revenue
Fund.
20
Pari-mutuel Wagering Permitting and Licensure
The Florida Pari-mutuel Wagering Act (Act)
21
provides specific permitting and licensing requirements
for the conduct of the pari-mutuel industry.
22
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.
23
Permitholders apply for an operating license annually to conduct pari-mutuel wagering
activities.
24
Certain permitholders are also authorized to operate cardrooms
25
and slot machines at their
facility.
26
During Fiscal Year 2021-2022, the following 39 pari-mutuel permitholders were licensed to operate:
27
Nineteen Greyhound Racing permits.
Three Thoroughbred Horse Racing permits.
One Harness Horse Racing permit.
Six Quarter Horse Racing permits.
Ten Jai-Alai permits.
The Division is authorized to revoke or suspend any permit or license upon the willful violation by the
permitholder or licensee of any provision of the Act, 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
18
S. 550.01215(1)(b)1., F.S.
19
Id.
20
S. 550.01215(1)(b)2., F.S.
21
Ch. 550, F.S.
22
S. 550.054(1), F.S.
23
S. 550.054(2), F.S.
24
S. 550.0115, F.S.
25
S. 849.086, F.S.
26
S. 551.104, F.S.
27
Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023, https://flgaming.gov/pmw/annual-reports/docs/2022-
2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 12, 2024).
28
S. 550.054(9)(b), F.S.
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During Fiscal Year 2022-2023, the Division issued 22 rulings and five consent orders with assessed
fines and/or imposed license suspensions for violations.
29
Pari-mutuel Wagering License Restrictions
The Act generally requires that any transfer or assignment of a permit receive prior approval
30
by the
Commission, which must determine the eligibility
31
of persons and entities to hold a permit. Similarly, if
a permit is held by a corporation or business entity other than an individual, the transfer of ten 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.
32
The Act provides restrictions on 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
33
or for
bookmaking.
34
The Act restricts pari-mutuel permitholders from being issued an operating license to conduct 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.
35
The Act restricts pari-mutuel permitholders from holding a permit to conduct pari-mutuel wagering
and associated cardroom or slot machine licenses
36
unless the permitholder, other than a limited
thoroughbred permitholder, held an operating license for the conduct of pari-mutuel wagering for Fiscal
year 2020-2021.
37
The Act specifies that permits held on January 1, 2021 are deemed valid,
38
but new permits for pari-
mutuel wagering may not be approved or issued.
39
The Commission is required to revoke the permit of any permitholder, other than a limited thoroughbred
permitholder, who did not hold an operating license for the conduct of pari-mutuel wagering for fiscal
year 2020-2021. A permit revoked under this provision is void and may not be reissued.
40
Certain permitholders may relocate the location listed in their permit to a new location within 30
miles. Greyhound and jai alai permitholders operating in counties where they are the only permitholder
29
Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023, https://flgaming.gov/pmw/annual-reports/docs/2022-
2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 12, 2024).
30
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.
31
See s. 550.1815, F.S
32
S. 550.054(11)(b), F.S.
33
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.
34
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.”
35
S. 550.01215(1)(d), F.S.
36
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.
37
S. 550.054(15)(a), F.S.
38
S. 550.054(15)(b), F.S.
39
S. 550.054(15)(c), F.S.
40
S. 550.054(9)(c), F.S.
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of that class may relocate.
41
Greyhound permitholders that converted their permit from a jai alai permit
may relocate, and a greyhound permitholder in a county where it is the only permitholder who operates
at a leased facility may also relocate.
42
In each of these cases, the relocation must not cross county boundaries and must be approved
under the local zoning regulations. Approval by the Division is required for these relocations.
A permit to conduct pari-mutuel wagering may not be converted to another class of permit.
43
The Commission 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. However, the
Commission is authorized to approve minor changes in racing dates after a license has been issued if
there is no objection from any operating permitholder that is:
44
Conducting live racing or games; and
Located within 50 miles of the permitholder requesting the changes in operating dates.
If a permitholder objects, the Commission is required to approve or disapprove the change in operating
dates based upon the impact on operating permitholders located within 50 miles of the permitholder
requesting the change in operating dates.
45
In making the determination to change racing dates, the Commission is required to take into
consideration the impact of such changes on state revenues.
46
False Swearing On Applications
Present Situation
Currently, the Division does not appear to have the authority to deny applications and suspend or
revoke professional licenses that it issues when it has found that an applicant or licensee has provided
false information on an application that was signed under oath.
Prior to July 1, 2022, the Division was a part of the Department of Business and Professional
Regulation (DBPR), which has the authority to take these actions.
47
Specifically, the law provides that
any license issued by DBPR, which is issued or renewed in response to an application upon which the
person signing under oath or affirmation has falsely sworn to a material statement, including, but not
limited to, the names and addresses of the owners or managers of the licensee or applicant, is subject
to denial of the application or suspension or revocation of the license, and the person falsely swearing
is subject to any other penalties provided by law.
48
On July 1, 2022, the Division was transferred out of DBPR and to the Commission.
49
However the
Division did not retain the ability to take these actions. According to the Commission, it “is responsible
for the regulation of licensees, permit holders, and persons participating in pari-mutuel wagering, slot
machine gaming, or cardroom activity in the state of Florida. To regulate the industry, the Florida
Gaming Control Commission needs to have the ability to apply the appropriate penalties when a person
makes a false material statement on an application.”
50
41
S. 550.0555, F.S.
42
S. 550.054, F.S.
43
S. 550.054(15)(d), F.S.
44
S. 550.01215(3), F.S.
45
Id.
46
Id.
47
S. 559.791, F.S.
48
Id.
49
Ch. 2021-269, Laws of Fla.
50
Florida Gaming Control Commission, Agency Package, Issue 1: False swearing on application; penalties.
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Proposed Changes
The bill authorizes the Commission to deny an application for license, or to suspend or revoke a license
if an applicant for a license or a licensee has falsely sworn to a material statement, including, but not
limited to, the criminal history of the applicant or licensee. In addition, the bill provides that such
applicants and licensees are subject to other penalties as provided by law.
Legal Notices
Present Situation
Currently, the Commission does not have the authority to require service by e-mail from applicants and
licensees for official communications. Chapter 455, F.S., which applies to the regulation of professions
by DBPR, provides this authority to DBPR. Specifically, each licensee of DBPR is solely responsible for
notifying DBPR in writing of the licensee’s current mailing address, e-mail address, and place of
practice, as defined by rule of the board or the department when there is no board.
51
A licensee’s failure to notify DBPR of a change of address constitutes a violation, and the licensee may
be disciplined by the board or the department when there is no board.
52
Notwithstanding any other provision of law, service by regular mail or e-mail to a licensee’s last known
mailing address or e-mail address of record with DBPR constitutes adequate and sufficient notice to the
licensee for any official communication to the licensee by the board or the department except when
other service is required pursuant to disciplinary proceedings under s. 455.225, F.S.
53
Notwithstanding any provision of law, when an administrative complaint is served on a licensee of
DBPR, DBPR is required to provide service by regular mail to the licensee’s last known address of
record, by certified mail to the last known address of record, and, if possible, by e-mail.
54
If the licensee does not provide DBPR with proof of service, DBPR is required to:
55
Call the last known telephone number of record.
Cause a short, plain notice to the licensee to be posted on the front page of DBPR’s website.
Send notice via e-mail to all newspapers of general circulation and all news departments of
broadcast network affiliates in the county of the licensee’s last known address of record.
Proposed Changes
The bill establishes e-mail as the Commission’s primary service of legal filings, including final agency
action, similar to the method that DBPR is authorized to use. Specifically, the bill:
Requires each applicant for a license with the Commission and each licensee of the
Commission is responsible to notify the Commission in writing of the applicant's or licensee's
current mailing address, e-mail address, and place of employment.
Provides that an applicant's failure to notify the Commission constitutes a violation, and the
applicant's application may be denied.
Provides that a licensee's failure to notify the Commission of any change to the e-mail or mailing
address of record constitutes a violation, and the licensee may be disciplined by the
Commission as described in s. 550.0251(10), F.S.
51
S. 455.275(1), F.S.
52
Id.
53
S. 455.275(2), F.S.
54
S. 455.275(3)(a), F.S.
55
S. 455.275(3)(b), F.S.
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Provides that notwithstanding any provision of law to the contrary, service by e-mail to an
applicant's or licensee's e-mail address of record with the Commission constitutes sufficient
notice to the applicant or licensee for any official communication.
Authorizes the Commission to, in its discretion, provide service for any official communication by
regular mail to an applicant's or licensee's last known mailing address.
Clarifies that the Commission is not required to provide service by both e-mail and regular mail.
Provides that notwithstanding any provision of law to the contrary, when an administrative
complaint or other document setting forth intended or final agency action is to be served on an
applicant or a licensee, the Commission is only required to provide service by e-mail to the
applicant's or licensee's e-mail address on record with the commission.
Specifies that e-mail service constitutes sufficient notice to the person or persons upon whom
an administrative complaint or any other document setting forth intended or final agency action
is served.
Authorizes the commission to, in its discretion, provide service of an administrative complaint or
any other documents setting forth intended or final agency action by regular mail to an
applicant's or licensee's last known mailing address.
Clarifies that the Commission is not required to provide service by both e-mail and regular mail.
Deadline for Submitting Pari-Mutuel Wagering Operating License Application
Present Situation
Currently, each permitholder is required to annually, during the period between December 15 and
January 4, file in writing with the Commission its application for an operating license for a pari-mutuel
facility for the conduct of pari-mutuel wagering during the next state fiscal year, including intertrack and
simulcast race wagering.
56
Permitholders may amend their applications through February 28.
57
Each application for live performances must specify:
58
The number, dates, and starting times of all live performances that the permitholder intends to
conduct.
Which performances will be conducted as charity or scholarship performances.
Each application for an operating license also must include:
59
For each permitholder, whether the permitholder intends to accept wagers on intertrack or
simulcast events.
For each permitholder that elects to operate a cardroom, the dates and periods of operation the
permitholder intends to operate the cardroom.
For each thoroughbred racing permitholder that elects to receive or rebroadcast out-of-state
races, the dates for all performances that the permitholder intends to conduct.
The Commission is required to issue each license no later than March 15.
60
Proposed Changes
The bill extends:
The filing timeframe for pari-mutuel operating license application dates from December 15
through January 4, to instead January 15 through February 4,
56
S. 550.01215(1), F.S.
57
S. 550.01215(1)(c), F.S.
58
Id.
59
Id.
60
S. 550.01215(3), F.S.
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The date the Commission is required to issue a license from March 15 to April 15, and
The date permitholders may amend their applications from February 28 to March 28.
Changes in Racing Dates
Present Situation
Current law authorizes the Commission to approve minor changes in racing dates after a license has
been issued when there is no objection from any operating permitholder that is conducting live racing or
games and that is located within 50 miles of the permitholder requesting the changes in operating
dates. In the event of an objection, the Commission is required to approve or disapprove the change in
operating dates based upon the impact on operating permitholders located within 50 miles of the
permitholder requesting the change in operating dates. In making the determination to change racing
dates, the Commission is required to take into consideration the impact of such changes on state
revenues.
61
Proposed Changes
The bill revises the authority of the Commission to approve minor changes in racing dates for pari-
mutuel wagering permitholders to also allow such changes for performance dates.
The bill removes the standards related to impacted permitholders objecting to changes in performance
dates, and makes it permissive, instead of mandatory, for the Commission to consider the impact of
changes to performance dates to state revenues.
Failure to Operate Performances and Abandonment of Performances
Present Situation
In the event that a permitholder fails to operate all performances specified on its license at the date and
time specified, the Commission is required to hold a hearing to determine whether to fine or suspend
the permitholder’s license, unless such failure was the direct result of fire, strike, war, hurricane,
pandemic, or other disaster or event beyond the ability of the permitholder to control. Financial hardship
to the permitholder shall not, in and of itself, constitute just cause for failure to operate all performances
on the dates and at the times specified.
62
In the event that performances licensed to be operated by a permitholder are vacated, abandoned, or
will not be used for any reason, any permitholder is entitled, pursuant to rules adopted by the
Commission, to apply to conduct performances on the dates for which the performances have been
abandoned. The Commission is required to issue an amended license for all such replacement
performances which have been requested in compliance with ch. 550, F.S., and Commission rules.
63
Proposed Changes
The bill removes the requirement that the Commission hold a hearing prior to issuing a fine or
suspension to determine whether to fine or suspend a permitholder’s license for failure to operate
performances.
The bill removes the entire provision regarding vacated or abandoned performances.
61
Id.
62
S. 550.01215(4), F.S.
63
S. 550.01215(5), F.S.
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Daily License Fee Payments
Present Situation
Each person engaged in the business of conducting race meetings or jai alai games is required to pay
to the Commission, for the use of the Commission, a daily license fee on each live or simulcast pari-
mutuel event of $100 for each horserace and $80 for each dograce and $40 for each jai alai game
conducted at a racetrack or fronton licensed.
64
Payments imposed by this section are required to be paid to the Commission, and the Commission is
required to deposit these sums with the Chief Financial Officer, to the credit of the Pari-mutuel
Wagering Trust Fund. The permitholder musts remit to the Commission payment for the daily license
fee, the admission tax, the tax on handle, and the breaks tax.
65
Prior to July 1, 2012, such payments were required to be remitted by 3 p.m. Wednesday of each week
for taxes imposed and collected for the preceding week ending on Sunday.
66
Since July 1, 2012, such payments are required to be remitted by 3 p.m. on the 5th day of each
calendar month for taxes imposed and collected for the preceding calendar month.
67
Proposed Changes
The bill removes the outdated provision and clarifies when certain tax payments must be remitted.
Thoroughbred Horse Taxes
Present Situation
Current law provides that if a thoroughbred permitholder fails to operate all performances on its 2001-
2002 license, failure to pay tax on handle for a full schedule of live races for those performances in the
2001-2002 fiscal year does not constitute failure to pay taxes on handle for a full schedule of live races
in a fiscal year. This may not be construed as forgiving a thoroughbred permitholder from paying taxes
on performances conducted at its facility pursuant to its 2001-2002 license other than for failure to
operate all performances on its 2001-2002 license. This subsection expired on July 1, 2003.
Proposed Changes
The bill removes this outdated provision.
Occupational Licenses of Racetrack Employees
Present Situation
Occupational Licenses
Currently, each person connected with a racetrack or jai alai fronton is required to purchase from the
Commission an occupational license. All moneys collected pursuant to this section each fiscal year
shall be deposited into the Pari-mutuel Wagering Trust Fund. Pursuant to the rules adopted by the
commission, an occupational license may be valid for a period of up to 3 years for a fee that does not
64
S. 550.0951(1)(a), F.S.
65
Id.
66
S. 550.0951(5), F.S.
67
Id.
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DATE: 4/29/2024
exceed the full occupational license fee for each of the years for which the license is purchased. The
occupational license is valid during its specified term at any pari-mutuel facility.
68
The following licenses are issued to persons or entities with access to the backside, racing animals, jai
alai players’ room, jockeys’ room, drivers’ room, totalisator room, the mutuels, or money room, or to
persons who, by virtue of the position they hold, might be granted access to these areas or to any other
person or entity in one of the following categories and with fees not to exceed the following amounts for
any 12-month period:
69
Business licenses: any business such as a vendor, contractual concessionaire, business
owning racing animals, trust or estate, totalisator company, stable name, or other fictitious
name: $50.
Professional occupational licenses: professional persons with access to the backside of a
racetrack or players’ quarters in jai alai such as trainers, officials, veterinarians, doctors, nurses,
EMT’s, jockeys and apprentices, drivers, jai alai players, owners, trustees, or any management
or officer or director or shareholder or any other professional-level person who might have
access to the jockeys’ room, the drivers’ room, the backside, racing animals, or managers or
supervisors requiring access to mutuels machines, the money room, or totalisator equipment:
$40.
General occupational licenses: general employees with access to the jockeys’ room, the
drivers’ room, racing animals, the backside of a racetrack or players’ quarters in jai alai, such as
grooms, leadouts, pelota makers, cesta makers, or ball boys, or a practitioner of any other
occupation who would have access to the animals or the backside, or who would provide the
security or maintenance of these areas, or mutuel employees, totalisator employees, money-
room employees, or any employee with access to mutuels machines, the money room, or
totalisator equipment or who would provide the security or maintenance of these areas: $10.
Individuals and entities that are licensed require heightened state scrutiny, including the submission by
the individual licensees or persons associated with the entities described in this chapter of fingerprints
for a Federal Bureau of Investigation criminal records check.
70
If the state racing Commission or racing authority of such other state or jurisdiction extends to the
Commission reciprocal courtesy to maintain the disciplinary control, the Commission is authorized to:
71
Deny, revoke, suspend, or place conditions or restrictions upon a license of any person who has
been refused a license by any other state racing Commission or racing authority;
Deny, suspend, or place conditions on a license of any person who is under suspension or has
unpaid fines in another jurisdiction.
The Commission may also deny, declare ineligible, or revoke any occupational license if the applicant
for such license has been convicted of a felony or misdemeanor in this state, in any other state, or
under the laws of the United States, if such felony or misdemeanor is related to gambling or
bookmaking, as contemplated in s. 849.25, F.S., or involves cruelty to animals.
72
If the applicant establishes that she or he is of good moral character, has been rehabilitated, and the
crime is not related to pari-mutuel wagering and is not a capital offense, the restrictions excluding
offenders may be waived by the director of the Commission.
Horseracing Integrity and Safety Act
68
S. 550.105(1), F.S.
69
S. 550.105(2)(a), F.S.
70
Id.
71
S. 550.105(5)(a), F.S.
72
S. 550.105(5)(c), F.S.
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The federal Horseracing Integrity and Safety Act of 2020 (Act) requires the Horseracing Integrity and
Safety Authority (HISA) to develop and implement uniform safety and integrity rules applicable to every
thoroughbred racing participant and racetrack facility in the U.S. HISA is required to develop rules
related to horseracing, including anti-doping, medication control and racetrack safety. The Federal
Trade Commission (FTC) is given oversight over the Authority.
73
HISA began implementing its Racetrack Safety Program on July 1, 2022, and its Anti-Doping and
Medication Control Program on May 22, 2023. This established a national, uniform set of integrity and
safety rules.
74
Every thoroughbred that races in the U.S. is required to be registered in a centralized
database. More than 32,000 Covered Persons and 48,000 Covered Horses have been registered with
HISA. In accordance with HISA's rules, every thoroughbred is required to have a pre-race veterinary
inspection every time it races, at any track. Veterinarians across the country have conducted more than
33,400 pre-race inspections since July 1, 2022.
75
Violations of the Act include the following:
76
With respect to a covered horse, strict liability for covered trainers for the:
o Presence of a prohibited substance or method in a sample or the use of a prohibited
substance or method;
o Presence of a permitted substance in a sample in excess of the amount allowed by the
horseracing anti-doping and medication control program; and
o Use of a permitted method in violation of the applicable limitations established under the
horseracing anti-doping and medication control program.
Attempted use of a prohibited substance or method on a covered horse.
Possession of any prohibited substance or method.
Attempted possession of any prohibited substance or method.
Administration or attempted administration of any prohibited substance or method on a covered
horse.
Refusal or failure, without compelling justification, to submit a covered horse for sample
collection.
Failure to cooperate with the Authority or an agent of the Authority during any investigation.
Failure to respond truthfully, to the best of a covered person's knowledge, to a question of the
Authority or an agent of the Authority with respect to any matter under the jurisdiction of the
Authority.
Tampering or attempted tampering with the application of the safety, performance, or anti-
doping and medication control rules or process adopted by the Authority, including:
o Intentional interference, or an attempt to interfere, with an official or agent of the
Authority;
o Procurement or the provision of fraudulent information to the Authority or agent; and
o Intimidation of, or an attempt to intimidate, a potential witness.
The Act requires HISA to establish uniform rules imposing civil sanctions against covered persons or
covered horses for safety, performance, and anti-doping and medication control rule violations. Civil
sanctions may include:
77
Lifetime bans from horseracing, disgorgement of purses, monetary fines and penalties, and
changes to the order of finish in covered races; and
With respect to anti-doping and medication control rule violators, an opportunity to reduce the
applicable civil sanctions that is comparable to the opportunity provided by the Protocol for
Olympic Movement Testing of the United States Anti-Doping Agency.
73
See 15 U.S.C., § 3051–3060.
74
Horseracing Integrity and Safety Authority (HISA), Overseeing national, uniform integrity and safety rules for Thoroughbred
racing in the U.S., https://hisaus.org/ (last visited Jan. 20, 2024).
75
Id.
76
15 U.S.C., § 3057(a)(2).
77
15 U.S.C., § 3057(d).
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In addition to these civil sanctions, the Act authorizes HISA to commence a civil action against a
covered person or racetrack that has engaged, is engaged, or is about to engage, in acts or practices
constituting a violation in the proper federal district court:
78
To enjoin such acts or practices;
To enforce any civil sanctions imposed; and
For all other relief to which HISA is entitled.
Upon a proper showing, a permanent or temporary injunction or restraining order shall be granted
without bond.
79
According to the Commission, HISA is authorized to suspend people from Florida racetracks for
violations associated with the track safety and anti-doping programs. However, the Commission
provides that it does not have reciprocity to take action on those individuals’ licenses.
The rules of HISA preempt any provision of State law or regulation with respect to matters within the
jurisdiction of HISA.
80
According to the Commission, effective May 22, 2023, HISA preempts the Commission from
investigating and adjudicating prohibited substance violations in equines, which includes testing equine
samples at a Commission laboratory.
Proposed Changes
The bill provides that the Commission may deny a license to or revoke, suspend, or place conditions
upon or restrictions on a license of any person who has been subject to a provisional suspension or
period of ineligibility by the authority, or another such authority as may be designated by the FTC.
Similarly, as to the Commission’s authority under current law to deny, suspend, or place conditions on a
license of any person who is under suspension or has unpaid fines in another jurisdiction, the bill allows
such actions by the Commission against the license of any person who is subject to a provisional
suspension or period of ineligibility under HISA that is related to the finding of a prohibited substance in
an animal’s hair or bodily fluids. The bill provides that any such suspension expires on the same date
that the HISA-imposed provisional suspension or period of ineligibility expires.
The bill requires, if an occupational license is summarily suspended, the Commission to offer the
licensee a post-suspension hearing within 72 hours after commencement of the suspension. The
occupational licensee has the burden of proving by clear and convincing evidence that she or he is not
subject to a provisional suspension or period of ineligibility imposed by HISA. The standard of review is
whether the Commission’s action was an abuse of its discretion.
The bill includes technical drafting changes to re-order language and eliminate obsolete references in
this provision.
Pari-mutuel Wagering Audit Reports
Present Situation
Currently, each permitholder that conducts race meetings or jai alai exhibitions is required to keep
records that clearly show the:
81
78
15 U.S.C., § 3054(j).
79
Id.
80
15 U.S.C., § 3054(b).
81
S. 550.125(2)(a), F.S.
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Total number of admissions and the total amount of money contributed to each pari-mutuel pool
on each race or exhibition separately; and
Amount of money received daily from admission fees.
Within 120 days after the end of the fiscal year, such permitholders are required to submit to the
Commission a complete annual report of its accounts, audited by a certified public accountant licensed
to practice in the state.
82
Proposed Changes
The bill establishes a single audit and reporting requirement for pari-mutuel and slot machine
permitholders that clarifies what is required in the report, and requires the deadline for the report to be
120 days after the end of the fiscal year. The bill:
Removes the requirement for each permitholder issued a pari-mutuel operating license to
include the total number of admissions in the report.
Requires the records to include pari-mutuel pools, cardroom gross receipts, and slot machine
revenues.
Removes the requirement that the records be on each pari-mutuel pool on each race or
exhibition separately and the amount of money received daily from admission fees.
Retains the requirement that within 120 days after the end of its fiscal year, each permitholder
submit to the Commission a complete annual report of its accounts, audited by a certified public
accountant licensed to practice in the state.
Broadcasts of Horseraces
Present Situation
Currently, any horse track licensed under ch. 550, F.S., is authorized to receive broadcasts of
horseraces conducted at other horse racetracks located outside this state at the racetrack enclosure of
the licensee during its racing meet. Such broadcasts must meet the following requirements:
83
Must comply with the provisions of the Interstate Horseracing Act of 1978, 92 Stat. 1811, 15
U.S.C. ss. 3001 et seq.
Wagers accepted at the horse track in this state may be, but are not required to be, included in
the pari-mutuel pools of the out-of-state horse track that broadcasts the race, under certain
conditions.
All forms of pari-mutuel wagering are allowed on such races, and all money wagered by patrons
on such races must be computed as part of the total amount of money wagered at each racing
performance for purposes of certain taxation requirements as provided in law.
Proposed Changes
Effective upon becoming law, the bill authorizes licensed horse tracks that conduct a full schedule of
live racing during the preceding state fiscal year, or are not required to conduct a full schedule of live
racing under current law, to continue to receive broadcasts of horseraces conducted at horse
racetracks outside of Florida.
Nonwagering Permits
Present Situation
Current law authorizes the Commission to issue permits for the conduct of horseracing meets without
pari-mutuel wagering or any other form of wagering being conducted in conjunction. Such permits are
82
Id.
83
S. 550.3551, F.S.
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DATE: 4/29/2024
known as nonwagering permits and may be issued only for horseracing meets. A horseracing
permitholder need not obtain an additional permit from the Commission to conduct nonwagering racing,
but must apply to the Commission for the issuance of a license. The holder of a nonwagering permit is
prohibited from conducting pari-mutuel wagering or any other form of wagering in conjunction with
racing conducted under the permit.
84
The holder of a nonwagering permit is exempt from the occupational license requirements in s.
550.105, F.S., and from the imposition of daily license fees and admission tax.
85
Upon receipt of a nonwagering permit, the permitholder is required to apply to the Commission before
June 1 of each year for an annual nonwagering license for the next succeeding calendar year. Such
application must set forth the days and locations at which the permitholder will conduct nonwagering
horseracing and must indicate any changes in ownership or management of the permitholder occurring
since the date of application for the prior license.
86
On or before August 1 of each year, the Commission is required to issue a license authorizing the
nonwagering permitholder to conduct nonwagering horseracing during the succeeding calendar year
during the period and for the number of days set forth in the application.
87
The Commission is authorized to conduct an eligibility investigation to determine the qualifications of
any new ownership or management interest in the permit.
88
Proposed Changes
The bill:
Changes the application and issuance deadlines of nonwagering licenses from a calendar year
basis to a fiscal year.
Revises the nonwagering license application deadline to be consistent with the live operating
dates license applications, during the period of January 15 through February 4 annually, and
extends the date the Commission must issue a license from August 1 to April 15.
Authorizes the Commission to extend a nonwagering license from calendar year 2024 to state
fiscal year 2024-2025 upon application by the non-wagering license holder.
Removes the authority of the Commission to conduct an eligibility investigation to determine the
qualifications of any new ownership or management interest in the permit.
Thoroughbred Racing Application Dates
Present Situation
Currently, each thoroughbred permitholder is required to annually, between December 15 and January
4, file in writing with the Commission its application to conduct one or more thoroughbred racing
meetings during the thoroughbred racing season commencing on the following July 1, as follows:
89
Each application must specify the number and dates of all performances that the permitholder
intends to conduct during that thoroughbred racing season.
On or before March 15 of each year, the Commission is required to issue a license authorizing
each permitholder to conduct performances on the dates specified in its application.
Up to February 28 of each year, each permitholder is authorized to request and must be granted
changes in its authorized performances; but thereafter, as a condition precedent to the validity
84
S. 550.505(1)(b), F.S.
85
S. 550.505(1)(c), F.S.
86
S. 550.505(3)(a), F.S.
87
S. 550.505(3)(b), F.S.
88
S. 550.505(3)(c), F.S.
89
S. 550.5251(1), F.S.
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of its license and its right to retain its permit, each permitholder must operate the full number of
days authorized on each of the dates set forth in its license.
Proposed Changes
The bill extends:
The filing timeframe from December 15 through January 4, to January 15 through February 4;
The date the Commission is required to issue a license from March 15 to April 15; and
The date permitholders may request and be granted changes authorized performances from
February 28 to March 28.
o The bill also revises the reference to authorized performances to instead refer to
application to conduct performances.
License to Conduct Slot Machine Gaming
Present Situation
Upon application and a finding by the Commission after investigation that the application is complete
and the applicant is qualified and payment of the initial license fee, the Commission is authorized to
issue a license to conduct slot machine gaming in the designated slot machine gaming area of the
eligible facility.
90
An application may be approved by the Commission only after the voters of the county where the
applicant’s facility is located have authorized by referendum slot machines within pari-mutuel facilities in
that county as specified in s. 23, Art. X of the State Constitution.
91
Slot machine licenses are only allowed to be issued to licensed pari-mutuel permitholders, and slot
machine gaming may be conducted only at the eligible facility at which the permitholder is authorized
under its valid pari-mutuel wagering permit to conduct pari-mutuel wagering activities.
92
As a condition of licensure and to maintain continued authority for the conduct of slot machine gaming,
the slot machine licensee is required to continue to be in compliance with the chapter of law governing
slot machines and the chapter of law governing pari-mutuel wagering.
93
Notwithstanding any contrary provision of law and in order to expedite the operation of slot machines at
eligible facilities, any eligible facility is entitled within 60 days after the effective date of this act to
amend its 2006-2007 pari-mutuel wagering operating license issued by the Commission under ss.
550.0115 and 550.01215, F.S. The Commission must issue a new license to the eligible facility to
effectuate any approved change.
94
Proposed Changes
The bill:
Establishes a single audit and reporting requirement that clarifies what is required in the report
and requires the deadline for the report to be 120 days after the end of the slot machine
licensee’s fiscal year.
Removes the outdated provision that allows an eligible facility within 60 days after the effective
date of this act to amend its 2006-2007 pari-mutuel wagering operating license issued by the
Commission under ss. 550.0115 and 550.01215, F.S.
90
S. 551.104(1), F.S.
91
S. 551.104(2), F.S.
92
S. 551.104(3), F.S.
93
S. 551.104(4), F.S.
94
Id.
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Specifies that the certified public accountant that the audit must be provided by must be
licensed under ch. 473, F.S.
Slot Machine Occupational License
Present Situation
Current law requires the following slot machine occupational licenses to be issued to persons or entities
that, by virtue of the positions they hold, might be granted access to slot machine gaming areas or to
any other person or entity in one of the following categories:
95
General occupational licenses for general employees, including food service, maintenance,
and other similar service and support employees having access to the slot machine gaming
area.
Professional occupational licenses for any person, proprietorship, partnership, corporation,
or other entity that is authorized by a slot machine licensee to manage, oversee, or otherwise
control daily operations as a slot machine manager, a floor supervisor, security personnel, or
any other similar position of oversight of gaming operations, or any person who is not an
employee of the slot machine licensee and who provides maintenance, repair, or upgrades or
otherwise services a slot machine or other slot machine equipment.
Business occupational licenses for any slot machine management company or company
associated with slot machine gaming, any person who manufactures, distributes, or sells slot
machines, slot machine paraphernalia, or other associated equipment to slot machine
licensees, or any company that sells or provides goods or services associated with slot machine
gaming to slot machine licensees.
The Commission is authorized to deny, suspend, revoke, or refuse to renew any slot machine license if
the applicant has:
96
Violated the provisions of this chapter or the rules of the Commission governing the conduct of
persons connected with slot machine gaming.
Been convicted in this state, in any other state, or under the laws of the United States of a
capital felony, a felony, or an offense in any other state that would be a felony under the laws of
this state involving:
o Arson;
o Trafficking in, conspiracy to traffic in, smuggling, importing, conspiracy to smuggle or
import, or delivery, sale, or distribution of a controlled substance;
o Racketeering; or
o A crime involving a lack of good moral character, or has had a gaming license revoked
by this state or any other jurisdiction for any gaming-related offense.
Been convicted of a felony or misdemeanor in this state, in any other state, or under the laws of
the United States if such felony or misdemeanor is related to gambling or bookmaking as
described in s. 849.25.
This provision does not appear to allow the Commission to issue a waiver for certain disqualifying
offenses.
Proposed Changes
The bill authorizes the Commission to waive the restrictions for slot machine occupational licensee
applicants if the applicant establishes that she or he:
Is of good moral character,
Has been rehabilitated, and
The crime is not related to slot machine gaming and is not a capital offense.
95
S. 551.107(2)(a), F.S.
96
S. 551.107(6), F.S.
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Racing Dates
The bill revises references to the term “racing” dates to instead reference the term “performance” dates.
This is a technical revision to allow changes in operating dates for the conduct of jai alai games.
Current law allows changes to racing dates, which is applicable only to horse racing.
Reenactments
The bill reenacts the following provisions of current law, to incorporate the amendments made by the
bill to s. 550.0951, F.S., relating to the payment of daily license fees and taxes on horse races and jai
alai games:
S. 212.04(2)(c), F.S., relating to admissions taxes and rates;
S. 550.0351(4), F.S., relating to charity racing days;
S. 550.09511(2), F.S., relating to jai alai taxes;
S. 550.09512(4), F.S., relating to harness horse taxes;
S. 550.09514(1) and (2)(e), F.S., relating to greyhound dogracing taxes and purse
requirements;
S. 550.09516(3), F.S., relating to thoroughbred racing permitholders;
S. 550.135(1), F.S., relating to the distribution of daily licensing fees from pari-mutuel racing;
S. 550.1625(2), F.S., relating to dogracing taxes;
S. 550.3551(2)(b), (3)(c), and (4), F.S., relating to transmission of racing and jai alai information
and the commingling of pari-mutuel pools;
S. 550.26352(3)-(6), F.S., relating to authorizing Breeders’ Cup Meet pools; and
S. 550.375(4), F.S., F.S., relating to the operation of certain harness tracks.
Effective Date
The bill provides that except as otherwise expressly provided, this act shall take effect July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
Insignificant. According to the Commission, there will be a “minimal decrease in expenditures due to
expected decrease in use of certified mail, posting notices in local newspapers, and manhours for
hand service of official communication, documents, final orders, and final agency action of the
commission.”
97
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
97
Florida Gaming Control Commission, Agency Analysis of HB 907, p. 6 (Jan. 11, 2024).
STORAGE NAME: h0909z1.DOCX PAGE: 19
DATE: 4/29/2024
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
Extending pari-mutuel wagering operating license application dates may reduce costs for permitholders
and the Commission related to complying with the earlier deadlines.
Consolidating pari-mutuel wagering and slot machine license audit reporting requirements and
timeframes may reduce redundancy and related costs to the licensees and the Commission.
Authorizing the Commission to waive restrictions for disqualifying offenses for slot machine
occupational licensee applicants may result in additional applicants and a positive fiscal impact to the
individuals that gain employment, and businesses that want to hire them.
D. FISCAL COMMENTS:
None.