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 Appropriations Committee on Agriculture, Environment, and General
Government
BILL: CS/SB 804
INTRODUCER: Appropriations Committee on Agriculture, Environment, and General Government and
Senator Hutson
SUBJECT: Gaming Licenses and Permits
DATE: February 12, 2024
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Kraemer Imhof RI Favorable
2. Kraemer/Davis Betta AEG Fav/CS
3. RC
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 804 revises gaming permitting and licensing procedures, including the method for serving
official communications and administrative complaints upon permitholders and licensees
licensed under chs. 550 and 551, F.S., (Pari-mutuel Wagering and Slot Machines), by the Florida
Gaming Control Commission (commission).
The bill provides that the commission may also 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 federal Horseracing Integrity and Safety Authority, or
on the person suspended or ineligible for licensing related to the finding of a prohibited
substance in an animal’s hair or bodily fluids. 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 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, in a signed oath or
affirmation, to a material statement, including, but not limited to, the criminal history of the
applicant or licensee.
Under the bill, the commission is authorized to waive certain restrictions related to slot machine
occupational licensing, similar to the waiver authority in current law for pari-mutuel wagering
REVISED: BILL: CS/SB 804 Page 2
occupational licensing. Current law authorizes the commission to deny, revoke, or refuse to
renew a slot machine occupational license if the applicant or the licensee has been convicted of a
felony or misdemeanor in Florida or another state or under federal law when the criminal
conviction is related to gambling or bookmaking.
1
Under the bill, the commission will be able to waive the restriction on criminal convictions for
slot machine licenses, if the applicant establishes that the applicant:
Is of good moral character;
Has been rehabilitated;
The criminal conviction is not related to slot machine gaming; and
The criminal conviction is not a capital offense.
The bill has no fiscal impact to the state.
2
See Section V., Fiscal Impact Statement.
The bill takes effect July 1, 2024.
II. Present Situation:
Background
In general, gambling is illegal in Florida.
3
Chapter 849, F.S., prohibits keeping a gambling
house,
4
running a lottery,
5
or the manufacture, sale, lease, play, or possession of slot machines.
6
However, the following gaming activities are authorized by law and regulated by the state:
Pari-mutuel
7
wagering at licensed greyhound and horse tracks and jai alai frontons;
8
Slot machine gaming at certain licensed pari-mutuel locations in Miami-Dade County and
Broward County;
9
Cardrooms
10
at certain pari-mutuel facilities;
11
1
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.”
2
See Florida Gaming Control Commission, 2024 Agency Legislative Bill Analysis for SB 804 at 6 (Jan. 11, 2024) (on file
with the Senate Committee on Regulated Industries).
3
See s. 849.08, F.S.
4
See s. 849.01, F.S.
5
See s. 849.09, F.S.
6
Section 849.16, F.S.
7
“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.
8
See ch. 550, F.S., relating to the regulation of pari-mutuel activities.
9
See FLA. CONST., art. X, s. 23, and ch. 551, F.S.
10
Section 849.086, F.S. See s. 849.086(2)(c), F.S., which 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.”
11
See Florida Gaming Control Commission, Annual Report Fiscal Year 2022-2023 (Annual Report), at p. 15, at
https://flgaming.gov/pmw/annual-reports/docs/2022-2023%20FGCC%20Annual%20Report.pdf (last visited Jan. 10, 2024),
which states that of 29 licensed permitholders, 26 operated at a pari-mutuel facility. BILL: CS/SB 804 Page 3
The state lottery authorized by section 15 of Article X of the State Constitution and
established under ch. 24, F.S.;
12
Skill-based amusement games and machines at specified locations as authorized by
s. 546.10, F.S, the Family Amusement Games Act;
13
and
The following activities, if conducted as authorized under ch. 849, relating to Gambling,
under specific and limited conditions:
o Penny-ante games;
14
o Bingo;
15
o Charitable drawings;
16
o Game promotions (sweepstakes);
17
and
o Bowling tournaments.
18
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.
19
The 1968 State Constitution states that “[l]otteries, other than the types of pari-mutuel pools
authorized by law as of the effective date of this constitution . . .” are prohibited.
20
A
constitutional amendment approved by the voters in 1986 authorized state-operated lotteries. Net
proceeds of the lottery are deposited to the Educational Enhancement Trust Fund (EETF) and
appropriated by the Legislature. Lottery operations are self-supporting and function as an
entrepreneurial business enterprise.
21
Enforcement of Gaming Laws and Florida Gaming Control Commission
In 202l, the Legislature updated Florida law for authorized gaming in the state, and for
enforcement of the gambling laws and other laws relating to authorized gaming.
22
The Office of
12
Chapter 24, F.S., was enacted by ch. 87-65, Laws of Fla., to establish the state lottery; s. 24.102, F.S., states the legislative
purpose and intent for the operations of the state lottery.
13
See s. 546.10, F.S.
14
See s. 849.085, F.S.
15
See s. 849.0931, F.S.
16
See s. 849.0935, F.S.
17
See s. 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
18
See s. 849.141, F.S.
19
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.” See also, Solimena v. State, 402 So.2d 1240, 1247 (Fla. 3d DCA
1981), review denied, 412 So.2d 470, which 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), and Zimmerman v. State of Florida, Fla. Gaming Control Comm’n, ___So.3d ___ (Fla. 5th DCA
Jan. 12, 2024) (Case No. 5D23-1062; not final until disposition of motions as set forth in the opinion).
20
The pari-mutuel pools that were authorized by law on the effective date of the State Constitution, as revised in 1968,
include horseracing, greyhound racing, and jai alai games. The revision was ratified by the electorate on November 5, 1968.
21
The Department of the Lottery is authorized by s. 15, Art. X of the State Constitution. Chapter 24, F.S., was enacted by ch.
87-65, Laws of Fla., to establish the state lottery. Section 24.102, F.S., states the legislative purpose and intent for the
operations of the state lottery.
22
See ch. 2021-268, Laws of Fla., (Implementation of 2021 Gaming Compact between the Seminole Tribe of Florida and the
State of Florida); ch. 2021-269, Laws of Fla., (Gaming Enforcement), ch. 2021-270, Laws of Fla., (Public Records and
Public Meetings), and 2021-271, Laws of Fla., (Gaming), as amended by ch. 2022-179, Laws of Fla., (Florida Gaming
Control Commission). Conforming amendments are made to the section in ch. 2022-7, Laws of Fla., (Reviser’s Bill) and
ch. 2023-8, Laws of Fla., (Reviser’s Bill). BILL: CS/SB 804 Page 4
Statewide Prosecution in the Department of Legal Affairs is authorized to investigate and
prosecute, in addition to gambling offenses, any violation of chs. 24, 285 (part II), 546, 550, 551,
or 849, F.S., (State Lotteries, Gaming Compact, Amusement Facilities, Pari-mutuel Wagering,
Slot Machines, and Gambling), which are referred to the Office of Statewide Prosecution by the
Florida Gaming Control Commission (commission).
23
In addition to the enhanced authority of the Office of Statewide Prosecution, the commission was
created
24
within the Department of Legal Affairs. The commission has two divisions, including
the Division of Gaming Enforcement (DGE), and the Division of Pari-mutuel Wagering
(DPMW) which was transferred from the Department of Business and Professional Regulation
effective July 1, 2022 (as discussed below).
The commission must do all of the following:
25
Exercise all of the regulatory and executive powers of the state with respect to gambling,
including pari-mutuel wagering, cardrooms, slot machine facilities, oversight of gaming
compacts executed by the state pursuant to the Federal Indian Gaming Regulatory Act, and
any other forms of gambling authorized by the State Constitution or law, excluding state
lottery games as authorized by the State Constitution.
Establish procedures consistent with ch. 120, F.S., the Administrative Procedure Act, to
ensure adequate due process in the exercise of the commission’s regulatory and executive
functions.
Ensure that the laws of this state are not interpreted in any manner that expands the activities
authorized in chs. 24, 285 (part II), 546, 550, 551, or 849, F.S.
Review the rules and regulations promulgated by the Seminole Tribal Gaming Commission
for the operation of sports betting and propose to the Seminole Tribe Gaming Commission
any additional consumer protection measures it deems appropriate. The proposed consumer
protection measures may include, but are not limited to, the types of advertising and
marketing conducted for sports betting, the types of procedures implemented to prohibit
underage persons from engaging in sports betting, and the types of information, materials,
and procedures needed to assist patrons with compulsive or addictive gambling problems.
Evaluate, as the state compliance agency or as the commission, information that is reported
by sports governing bodies or other parties to the commission relating to:
o Any abnormal betting activity or patterns that may indicate a concern about the integrity
of a sports event or events;
o Any other conduct with the potential to corrupt a betting outcome of a sports event for
purposes of financial gain, including, but not limited to, match fixing; suspicious or
illegal wagering activities, including the use of funds derived from illegal activity, wagers
to conceal or launder funds derived from illegal activity, use of agents to place wagers, or
use of false identification; and
o The use of data deemed unacceptable by the commission or the Seminole Tribal Gaming
Commission.
Provide reasonable notice to state and local law enforcement, the Seminole Tribal Gaming
Commission, and any appropriate sports governing body of non-proprietary information that
23
Section 16.56(1)(a), F.S.
24
Section 16.71, F.S.
25
Section 16.712, F.S. The commission also administers the Pari-mutuel Wagering Trust Fund. See s. 16.71(6), F.S. BILL: CS/SB 804 Page 5
may warrant further investigation of nonproprietary information by such entities to ensure
integrity of wagering activities in the state.
Review any matter within the scope of the jurisdiction of the commission.
Review the regulation of licensees, permitholders, or persons regulated by the commission
and the procedures used by the commission to implement and enforce the law.
Review the procedures of the commission which are used to qualify applicants applying for a
license, permit, or registration.
Receive and review violations reported by a state or local law enforcement agency, the
Department of Law Enforcement, the Department of Legal Affairs, the Department of
Agriculture and Consumer Services, the Department of Business and Professional
Regulation, the Department of the Lottery, the Seminole Tribe of Florida, or any person
licensed under chs. 24, 285 (part II), 546, 550, 551, or 849, F.S., and determine whether such
violation is appropriate for referral to the Office of Statewide Prosecution.
Refer criminal violations of chs. 24, 285 (part II), 546, 550, 551, or 849, F.S., to the
appropriate state attorney or to the Office of Statewide Prosecution, as applicable.
Exercise all other powers and perform any other duties prescribed by the Legislature, and
adopt rules to implement the above.
Commissioners
As set forth in s. 16.71, F.S., of the five commissioners appointed as members of the
commission, at least one member must have at least 10 years of experience in law enforcement
and criminal investigations, at least one member must be a certified public accountant licensed in
this state with at least 10 years of experience in accounting and auditing, and at least one member
must be an attorney admitted and authorized to practice law in this state for the preceding
10 years. All members serve four-year terms, but may not serve more than 12 years. As of the
date of this analysis, there is one vacancy on the commission.
Division of Gaming Enforcement
Section 16.711, F.S., sets forth the duties of the Division of Gaming Enforcement (DGE) within
the commission.
26
The DGE is a criminal justice agency, as defined in s. 943.045, F.S. The
commissioners must appoint a director of the DGE who is qualified by training and experience in
law enforcement or security to supervise, direct, coordinate, and administer all activities of
the DGE.
27
The DGE director and all investigators employed by the DGE must meet the requirements for
employment and appointment provided by s. 943.13, F.S., and must be certified as law
enforcement officers, as defined in s. 943.10(1), F.S. The DGE director and such investigators
must be designated law enforcement officers and must have the power to detect, apprehend, and
arrest for any alleged violation of chs. 24, 285 (part II), 546, 550, 551, or 849, F.S., or any rule
adopted pursuant thereto, or any law of this state.
28
26
For a summary of DGE investigations and actions in Fiscal Year 2022-2023, see Annual Report, supra n. 11 at p.5.
27
Section 16.711(2), F.S.
28
Section 16.711(3), F.S. BILL: CS/SB 804 Page 6
Such law enforcement officers may enter upon any premises at which gaming activities are
taking place in the state for the performance of their lawful duties and may take with them any
necessary equipment, and such entry does not constitute a trespass. In any instance in which
there is reason to believe that a violation has occurred, such officers have the authority, without
warrant, to search and inspect any premises where the violation is alleged to have occurred or is
occurring.
29
Further, any such officer may, consistent with the United States and Florida Constitutions, seize
or take possession of any papers, records, tickets, currency, or other items related to any alleged
violation. Investigators employed by the commission also have access to, and the right to inspect,
premises licensed by the commission, to collect taxes and remit them to the officer entitled to
them, and to examine the books and records of all persons licensed by the commission.
30
The DGE and its investigators are specifically authorized to seize any contraband in accordance
with the Florida Contraband Forfeiture Act. The term “contraband” has the same meaning as the
term “contraband article” in s. 932.701(2)(a)2., F.S.
31
The DGE is specifically authorized to store
and test any contraband that is seized in accordance with the Florida Contraband Forfeiture Act
and may authorize any of its staff to implement this provision. The authority of any other person
authorized by law to seize contraband is not limited by these provisions.
32
Section 16.711(5), F.S., requires the Florida Department of Law Enforcement (FDLE) to provide
assistance in obtaining criminal history information relevant to investigations required for
honest, secure, and exemplary gaming operations, and such other assistance as may be requested
by the commission’s executive director and agreed to by FDLE’s the executive director. Any
other state agency, including the DBPR and the Department of Revenue, must, upon request,
provide the commission with any information relevant to any investigation conducted as
described above, and the commission must reimburse any agency for the actual cost of providing
any such assistance.
33
Division of Pari-mutuel Wagering
The commission has regulatory oversight of permitted and licensed pari-mutuel wagering
facilities, cardrooms located at pari-mutuel facilities, and slot machines at pari-mutuel facilities
located in Miami-Dade and Broward counties. The Division of Pari-Mutuel Wagering (DPMW)
is a program area of the commission which is charged with the regulation of Florida’s pari-
mutuel, cardroom, and slot gaming industries, as authorized by chs. 550, 551, and 849, F.S., as
well as collecting and safeguarding associated revenues due to the state. The DPMW supports
the commission in meeting the commission’s obligations as the State Compliance Agency
29
Id.
30
Id.
31
Section 16.711(4), F.S.
32
Id.
33
Section 16.711(5), F.S. BILL: CS/SB 804 Page 7
(SCA)
34
in carrying out the state’s oversight responsibilities under the provisions of the Gaming
Compact between the Seminole Tribe of Florida and the State of Florida.
35
Issuance of Pari-mutuel Permits and Annual Licenses
Section 550.054, F.S., provides that any person meeting the qualification requirements of
ch. 550, F.S., may apply to the commission for a permit to conduct pari-mutuel wagering. Upon
approval, a permit must be issued to the applicant that indicates:
The name of the permitholder;
The location of the pari-mutuel facility;
The type of pari-mutuel activity to be conducted; and
A statement showing qualifications of the applicant to conduct pari-mutuel performances
under ch. 550, F.S.
A permit does not authorize any pari-mutuel performances until approved by a majority of voters
in a ratification election in the county in which the applicant proposes to conduct pari-mutuel
wagering activities. An application may not be considered, nor may a permit be issued by the
commission or be voted upon in any county, for the conduct of:
Harness horse racing, quarter horse racing, thoroughbred horse racing, or greyhound racing
at a location within 100 miles of an existing pari-mutuel facility; or
Jai alai games within 50 miles of an existing pari-mutuel facility.
Distances are measured on a straight line from the nearest property line of one pari-mutuel
facility to the nearest property line of the other facility.
36
After issuance of the permit and a ratification election, the commission may issue an annual
operating license for wagering at the specified location in a county, indicating the time, place,
and number of days during which pari-mutuel operations may be conducted at the specified
location.
37
Section 550.5251, F.S., specifies the requirements for annual operating licenses to be
issued to thoroughbred permitholders by March 15 of each year, including the number and dates
of all performances to be conducted for the racing season commencing the following July 1.
Pursuant to s. 550.054(9)(b), F.S., the commission 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 commission, and may impose a civil penalty against the
permitholder or licensee up to $1,000 for each offense.
34
See s. 285.710, F.S. Until June 30, 2022, the DPMW was designated as the SCA, prior to that division’s transfer to the
commission from the Department of Business and Professional Regulation, as set forth in ch. 2021-269, Laws of Fla.
35
See s. 285.710(3)(b), F.S., which provides that the Gaming Compact between the Seminole Tribe of Florida and the State
of Florida (2021 Gaming Compact), executed by the Governor and the Tribe on April 23, 2021, as amended on
May 17, 2021, is ratified and approved. The 2021 Gaming Compact may be accessed at https://www.flgov.com/wp-
content/uploads/pdfs/2021%20Gaming%20Compact.pdf (last visited Jan. 10, 2024). The May 17, 2021 amendment states
that Part XVIII.A [relating to certain negotiations within 36 months] is deleted in its entirety and replaced with “Reserved”,
and that the Seminole Tribe of Florida agrees that it will not commence Sports Betting, as defined in Park III.CC, prior to
October 15, 2021. (on file with the Senate Regulated Industries Committee).
36
See s. 550.054(2), F.S.
37
See s. 550.054(9)(a), F.S. BILL: CS/SB 804 Page 8
Section 550.054(14), F.S., authorizes conversion of jai alai permits to greyhound permits, under
limited conditions.
Section 550.054(15), F.S., provides that a permit for the conduct of pari-mutuel wagering and
associated cardroom or slot machine licenses may only be held by a:
Permitholder who held an operating license for the conduct of pari-mutuel wagering for
fiscal year 2020-2021 or who holds a permit issued pursuant to s. 550.3345, F.S.; or
Purchaser, transferee, or assignee of a valid permit for the conduct of pari-mutuel wagering if
approved by the commission before such purchase, transfer, or assignment and provided that
the commission does not approve or issue an additional permit for the conduct of pari-mutuel
wagering.
Under current law, no additional permits for the conduct of pari-mutuel wagering may be
approved or issued by the commission, and a pari-mutuel permit may not be converted to another
class of permit.
38
The issuance of limited thoroughbred racing permits (through conversion from a quarter horse
permit) is authorized in s. 550.3345, F.S. A limited thoroughbred racing permit authorizes the
conduct of live thoroughbred horseracing, with net revenues dedicated to the enhancement of
thoroughbred purses and breeders’, stallion, and special racing awards under ch. 550, F.S.,
promotion of the thoroughbred horse breeding industry, and the care of retired thoroughbred
horses in Florida.
Slot Machine Gaming Locations and Operations
Section 32 of Art. X of the State Constitution, adopted pursuant to a 2004 initiative petition,
authorizes slot machines in licensed pari-mutuel facilities in Broward and Miami-Dade counties,
if approved by county referendum. The voters in Broward and Miami-Dade counties approved
slot machine gaming. Slot machine gaming in the state is limited to Broward and Miami-Dade
counties, and as authorized by federal law, in the tribal gaming facilities of the Seminole Tribe.
Sections 551.102, 551.103, 551.104, 551.114, 551.116, and 551.121, F.S., address slot machine
gaming operations, and:
Restrict the issuance of slot machine licenses to licensed pari-mutuel permitholders, for slot
machine gaming only at the address specified in the licensed permitholder’s slot machine
license issued for Fiscal Year 2020-2021;
Require the licensee to be in compliance with chs. 550, F.S., relating to Pari-mutuel
Wagering, and ch. 551, F.S., relating to Slot Machines;
Require, as to thoroughbred permitholders, the conduct of a full schedule of live racing as
defined in s. 550.002(10), F.S.;
38
See s. 550.054(15)(c) and (d), F.S. Pursuant to s. 550.054(15)(b), F.S., all pari-mutuel permits issued under ch. 550, F.S.,
that were held by permitholders on January 1, 2021, are deemed valid for the sole and exclusive purpose of satisfying all
conditions for the valid issuance of the permits, if such permitholder held an operating license for the conduct of pari-mutuel
wagering for Fiscal Year 2020-2021 or if such permitholder held a permit issued pursuant to s. 550.3345, F.S., relating to
limited thoroughbred permits. BILL: CS/SB 804 Page 9
Require testing of slot machines by an independent testing laboratory with demonstrated
competence testing gaming machines and equipment, that is licensed by at least 10 other
states; and that has not had its license suspended or revoked by any other state within the
immediately preceding 10 years;
Allow slot machine gaming areas to be open 24 hours daily throughout the year;
Regulate the serving of alcoholic beverages to players in certain areas; complimentary or
reduced-cost alcoholic beverages may not be served in slot machine gaming areas;
Prohibit certain other actions concerning the advancement of credit, the acceptance of
checks, and the placement of automated teller machines or devices; and
Provide other requirements regarding ownership, law enforcement access, computer systems,
security, records, and audits.
Cardrooms
Section 849.086, F.S., authorizes cardrooms at certain pari-mutuel facilities.
39
In Fiscal Year
2022-2023, 29 permitholders held a cardroom license.
40
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.
41
A cardroom may be open 24 hours per day.
42
Under current law, notwithstanding any other provision of law, a pari-mutuel permitholder (other
than a limited thoroughbred permitholder) may not be issued a license for 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.
43
For a limited thoroughbred permitholder, the applicant
must have requested, as part of its pari-mutuel annual license application, to conduct at least a
full schedule of live racing.
44
An initial cardroom license may be issued to a pari-mutuel
permitholder only after its facilities are in place and after it conducts its first day of pari-mutuel
activities on live racing or games.
45
Sections 849.086(5) and (6), F.S., provide that a licensed pari-mutuel permitholder that holds a
valid pari-mutuel permit may hold a cardroom license authorizing the operation of a cardroom
and the conduct of authorized games at the cardroom. An authorized game is a game or series of
games of poker or dominoes.
46
Such games must be played in a non-banking manner,
47
where
the participants play against each other, instead of against the house (cardroom).
39
Section 849.086, F.S. Section 849.086(2)(c), F.S., defines “cardroom” to mean a facility where authorized 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.
40
See Annual Report, supra n. 11 at p.15, which states that of 29 permitholders, 26 operated at a pari-mutuel facility.
41
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.”
42
Section 849.086(7)(b), F.S.
43
Section 849.086(5), F.S.
44
Id.
45
Id.
46
See s. 849.086(2)(a), F.S.
47
Id. BILL: CS/SB 804 Page 10
At least four percent of the gross cardroom receipts of jai alai permitholders conducting live
games must supplement greyhound purses and jai alai prize money.
48
Thoroughbred and harness
horse racing permitholders that conduct live performances and operate a cardroom must use at
least 50 percent of the monthly net proceeds from the cardroom for purses and awards, with 47
percent to supplement purses and three percent to supplement breeders’ awards. Quarter horse
permitholders must have a contract with a horsemen’s association governing the payment of
purses on live quarter horse races conducted by the permitholder.
49
Prohibition on Racing of and Wagering on Greyhounds or other Dogs
Amendment 13 to the Florida Constitution was adopted in 2018 with 69.06 percent support of
the electorate. The amendment, titled “Prohibition on Racing of and Wagering on Greyhounds or
other Dogs, is codified in s. 32, Art. X of the State Constitution.
50
The amendment banned all
racing of and wagering on live dog racing in Florida after December 31, 2020, and allowed
greyhound permitholders to stop racing after December 31, 2018, without affecting other pari-
mutuel activities as authorized by law, and the Legislature was directed to specify civil or
criminal penalties for violations.
III. Effect of Proposed Changes:
Section 1 creates s. 16.717, F.S., to authorize the Florida Gaming Control Commission
(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, in a signed oath or affirmation, 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.
The bill mirrors similar authority held by the Department of Business and Professional
Regulation (DBPR) under current law,
51
to deny an application for license, or to suspend or
revoke a license. However, the authority for the taking of these actions that is in current law does
not apply to the commission, notwithstanding the transfer of licensing authority to it,
52
and such
authority is necessary to properly regulate the persons licensed to conduct pari-mutuel wagering,
slot machine games, or cardroom activity in the state.
Section 2 creates s. 16.718, F.S, to establish procedures relating to notification to the
commission of applicant and licensee addresses, places of employment, and the authorized
methods of service by the commission of its official communications and administrative
complaints to applicants and licensees.
48
Section 849.086(13), F.S.
49
See s. 849.086(13)(d), F.S.
50
See http://www.leg.state.fl.us/Statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes#A10S32 (last visited
Jan. 17, 2024).
51
See s. 559.791, F.S.
52
Pursuant to ch. 2021-269, s. 11, Laws of Fla., a type two transfer occurred on July 1, 2022, that transferred the Division of
Pari-Mutuel Wagering from the DBPR to the commission. BILL: CS/SB 804 Page 11
The bill provides that applicants and licensees are responsible for providing written notification
to the commission of their current mailing address, e-mail address, and place of employment.
Failure to do so constitutes a violation by an applicant, whose application may be denied for
failure to provide the information. A licensee’s failure to notify the commission of any change to
the e-mail or mailing address of record constitutes a violation that may subject the licensee to
discipline by the commission as described in s. 550.0251(10), F.S.
53
As to service by the commission of its official communications, under the bill, an e-mail to an
applicant’s or licensee’s e-mail address of record with the commission constitutes sufficient
notice to applicants and licensees, notwithstanding any provision of Florida law to the contrary.
The bill provides the commission with discretion to instead provide service by regular mail to the
last known mailing address of an applicant or licensee, but the commission is not required to
provide service by both e-mail and regular mail.
The bill further provides, as to service of an administrative complaint or other document setting
forth intended or final agency action 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, notwithstanding any provision of law to the contrary. Under the bill, e-mail
service constitutes sufficient notice to those served with an administrative complaint or any other
document setting forth intended or final agency action. The commission may, in its discretion,
provide service of such documents by regular mail to an applicant’s or licensee’s last known
mailing address, but is not required to provide service by both e-mail and regular mail.
Section 3 amends s. 550.01215, F.S., relating to annual operating licenses, to revise deadlines for
submission of applications and issuance of licenses, and to revise the process for changes in a
licensee’s operating dates.
The bill revises the date by which a pari-mutuel permitholder must submit an application for its
annual operating license, from the period between December 15 and January 4 to the period
between January 15 and February 4. This may reduce errors and deficiencies related to a
deadline in the first week of the year. Also, a permitholder may amend their application through
March 28 instead of February 28. To address the later submission date of such applications, the
bill extends the date by which the commission must issue annual operating licenses to April 15,
from March 15 of each year.
In prior years, the setting of permitholder operating dates was an important aspect of horse
racing, to avoid conflicting dates and improve profitability to horse owners, breeders, and
racetracks, and changes were subject to review by competing permitholders. Under the bill,
approval requirements relating to the procedure for a requested change in operating dates are
substantially revised, as these requirements are eliminated:
That there be no objection to the requested change from active permitholders operating
within 50 miles of the permitholder requesting the change; and
53
Section 550.251, F.S., authorizes the commission to impose an administrative fine not to exceed $1,000 for each count or
separate offense (unless otherwise provided in ch. 550, F.S., relating to pari-mutuel wagering), and to suspend or revoke a
permit, a pari-mutuel license, or an occupational license. BILL: CS/SB 804 Page 12
That when such an objection is made, the commission must approve or disapprove the
requested change based upon its impact on all the active permitholders located within 50
miles of the permitholder requesting the change.
The bill provides that when the commission determines to approve a change in operating dates, it
has the discretion whether to take the impact of the change on state revenues into consideration.
Current law provides that the commission must consider impacts on state revenues.
The bill revises the term “racing” dates to the term “performance” dates. This is a technical
revision in order to also 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.
Section 4 amends s. 550.0351, F.S., relating to charity days, to remove obsolete references to
“racing” from the provision.
Section 5 amends s. 550.054, F.S., relating to applications for permits to conduct pari-mutuel
wagering, to remove an obsolete reference to “racing” from the provision.
Section 6 amends s. 550.0951, F.S., relating to daily license fees and taxes, to delete obsolete
language related to daily license fees and tax rates payable on live greyhound racing that is no
longer authorized to be conducted in this state.
Section 7 amends s. 550.09515, F.S., relating to admissions taxes and rates for thoroughbred
races, to delete obsolete language related to thoroughbred permitholders that did not operate
during the 2001-2002 license year in a provision that expired by its own terms on July 1, 2003.
Section 8 amends s. 550.105, F.S., relating to occupational licensing and discipline of racetrack
employees. In 2020, Congress passed the Horseracing Integrity and Safety Act of 2020 (HISA)
within the Consolidated Appropriations Act of 2021.
54
This federal legislation resulted in the
creation of the Horseracing Integrity and Safety Authority (the authority), which was created for
the purposes of developing and implementing a horseracing anti-doping and medication control
program and racetrack safety program.
55
The funding for the authority comes from assessments
for racing activities within each state,
56
and permitholders that conduct thoroughbred racing have
paid those assessments.
One of the functions of the authority is to suspend individuals from Florida racetracks for
violations associated with the authority’s programs.
57
Under current law 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 refused a license by any other state racing commission or racing authority.
The bill provides that the commission may also 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
54
Pub. L. No. 116-260.
55
Section 1203, Pub. L. No. 116-260.
56
Id.
57
See the regulations promulgated by HISA for its Racetrack Safety Program (Rule Series 2000) and Equine Anti-Doping
and Controlled Medication Protocol (Rule Series 3000) at https://hisaus.org/regulations (last visited Jan. 17, 2024). BILL: CS/SB 804 Page 13
suspension or period of ineligibility by the authority, or another such authority as may be
designated by the Federal Trade Commission.
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 must 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 eliminate obsolete references in this provision.
Section 9 amends s. 550.125, F.S., relating to permitholder accounting requirements
permitholders’ and the submission of annual reports, to delete obsolete language and to clarify
that the required records must show cardroom gross receipts and slot machine revenue, in
addition to funds contributed to pari-mutuel pools.
Section 10 amends s. 550.3551, F.S., relating to transmission of racing and jai alai information,
to authorize a licensed horse track to receive broadcasts of horseraces conducted at horse
racetracks outside Florida, if the track conducted a full schedule of live racing in the preceding
fiscal year. See Section VII of this analysis related to consideration of an amendment to revise
this provision to authorize licensed horse tracks that 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 Florida.
Section 11 amends s. 550.505, F.S., relating to nonwagering permits for the conduct of horse
racing when no pari-mutuel wagering occurs. The bill revises the deadline for submission of
annual applications by nonwagering permitholders to the period of time between January 15 and
February 4 each year for the next fiscal year (i.e., July 1 to June 30). Under current law the
annual application deadline for nonwagering permitholders is before June 1, for the next calendar
year (i.e., January 1 to December 31). The bill also provides for license issuance on or before
April 15, consistent with the deadline for other annual licenses set forth in Section 3 of the bill.
The bill establishes a transitional period during which the commission is authorized to extend a
nonwagering license during the 2024 calendar year through the 2024-2025 fiscal year, if
requested by a permitholder.
Section 12 amends s. 550.5251, F.S., relating to thoroughbred racing, to revise the date by which
a thoroughbred permitholder must submit an application for its annual operating license, from
the period between December 15 and January 4 to the period between January 15 and
February 4. This may reduce errors and deficiencies related to a deadline in the first week of the BILL: CS/SB 804 Page 14
year. Also, a thoroughbred permitholder may amend the application through March 28 instead of
February 28. To address the later submission date of such applications, the bill extends the date
by which the commission must issue annual operating licenses to April 15, from March 15 of
each year. These revisions conform to the revisions to s. 550.01215, F.S., made by the bill.
See Section 3.
Section 13 amends s. 551.104, F.S. relating to slot machine gaming licenses, by:
Deleting obsolete language and conform to bill drafting conventions;
Adding to the requirement that an independent certified accountant audit a licensee’s slot
machine revenues, that the accountant must be licensed under Florida law pursuant to
ch. 373, F.S., relating to Public Accountancy, (revising text enacted in 2005
58
); and
Requiring the audit of slot machine revenues be filed within 120 days after the end of the
licensee’s fiscal year, rather than 60 days after completion of its scheduled racing or games.
Section 14 amends s. 551.107, F.S., relating to slot machine occupational licensing, to conform
the power of the commission to waive certain restrictions related to slot machine occupational
licensing to the power it has in current law to waive similar restrictions for pari-mutuel wagering
occupational licensing under s. 550.105(5)(c), F.S. Current law authorizes the commission to
deny, revoke, or refuse to renew a slot machine occupational license if the applicant or the
licensee has been convicted of a felony or misdemeanor in Florida or another state or under
federal law when the criminal conviction is related to gambling or bookmaking.
59
The bill provides that the commission may waive the restriction on criminal convictions, if the
applicant establishes that the applicant:
Is of good moral character;
Has been rehabilitated;
The criminal conviction is not related to slot machine gaming; and
The criminal conviction is not a capital offense.
Statutory Provisions Reenacted in the Bill
Sections 15 to 24 provide for the reenactment of provisions in 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. The statutory sections reenacted in the bill include
sections:
212.04(2)(c), F.S., relating to admissions taxes and rates;
550.0351(4), F.S., relating to charity racing days;
550.09511(2), F.S., relating to jai alai taxes;
550.09512(4), F.S., relating to harness horse taxes;
550.09514(1) and (2)(e), F.S., relating to greyhound dogracing taxes and purse requirements;
550.09516(3), F.S., relating to thoroughbred racing permitholders;
58
See ch. 2005-362, Laws of Fla.
59
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: CS/SB 804 Page 15
550.135(1), F.S., relating to the distribution of daily licensing fees from pari-mutuel racing;
550.1625(2), F.S., relating to dogracing taxes;
550.26352(3)-(6), F.S., relating to authorizing Breeders’ Cup Meet pools; and
550.375(4), F.S., F.S., relating to the operation of certain harness tracks.
Section 25 provides that the bill takes effect July 1, 2024.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
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:
Persons who hold gaming permits and licenses will be minimally impacted financially by
having to comply with the procedures revised by the bill, including the method for
service of official communications and administrative complaints upon permitholders and
licensees licensed under chs. 550, and 551, F.S., ((Pari-mutuel Wagering and Slot
Machines), by the Florida Gaming Control Commission (commission).
Licensees may be affected financially by the authority of the commission to 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
federal Horseracing Integrity and Safety Authority, or who has been suspended or
ineligible for licensing related to the finding of a prohibited substance in an animal’s hair
or bodily fluids. BILL: CS/SB 804 Page 16
Applicants for licenses and licensees may be affected financially if the commission
denies an application for license, or suspend or revoke a license if an applicant for a
license or a licensee has falsely sworn to a material statement, such as the criminal
history of the applicant or licensee.
Some applicants for slot machine licenses may benefit financially from the authority
granted to the commission by the bill to waive certain restrictions related to slot machine
occupational licensing in cases where the applicant or the licensee has been convicted of
a felony or misdemeanor in Florida or another state or under federal law when the
criminal conviction is related to gambling or bookmaking. Under the bill, such a waiver
by the commission is possible, if the applicant establishes that the applicant is of good
moral character, has been rehabilitated, the criminal conviction is not related to slot
machine gaming, and the criminal conviction is not a capital offense.
C. Government Sector Impact:
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.
60
VI. Technical Deficiencies:
Section 550.3551, F.S., relating to transmission of racing and jai alai information, authorizes a
licensed horse track to receive broadcasts of horseraces conducted at horse racetracks outside
Florida, if the track conducted a full schedule of live racing in the preceding fiscal year. The
sponsor may wish to consider an amendment to revise this provision to authorize licensed horse
tracks that 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 Florida. See
Section 10.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections of the Florida Statutes: 550.01215,
550.0351, 550.054, 550.0951, 550.09515, 550.105, 550.125, 550.3551, 550.505, 550.5251, and
551.104.
This bill creates the following sections of the Florida Statutes: 16.717 and 16.718.
60
See Florida Gaming Control Commission, 2024 Agency Legislative Bill Analysis for SB 804 at 6 (Jan. 11, 2024) (on file
with the Senate Committee on Regulated Industries). BILL: CS/SB 804 Page 17
This bill reenacts the following sections of the Florida Statutes: 212.04, 550.0351, 550.09511,
550.09512, 550.09514, 550.09516, 550.135, 550.1625, 550.3551, 550.26352, and 550.375.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
CS by Appropriations Committee on Agriculture, Environment, and General
Government on February 8, 2024:
The committee substitute:
Revises the title to “Gaming Licenses and Permits,” a more comprehensive
description for the provisions addressed in the bill;
Clarifies the authority of the Florida Gaming Control Commission (commission) to
deny applications, and suspend or revoke licenses, if an applicant or licensee falsely
swears, in a signed oath or affirmation, to material statements or criminal history
information;
Authorizes the commission to fine or suspend a permitholder’s license if all licensed
racing performances do not occur;
Authorizes the commission, notwithstanding the requirements of Florida’s
Administrative Procedure Act, to summarily suspend the occupational license of any
person suspended by the federal Horseracing Integrity and Safety Authority (HISA)
relating to prohibited substances in an animal’s hair or bodily fluids. After an
occupational licensee is summarily suspended, the commission must offer the
licensee a hearing within 72 hours;
Deletes an obsolete provision allowing permitholders to apply for performance dates
that are not used by another permitholder;
Retains current law relating to daily license fees and tax rates payable on live
greyhound racing;
Retains current law relating to a greyhound racing tax on unclaimed wagering tickets,
to avoid addressing tax issues in this bill;
Amends the authority for a licensed horse track to receive broadcasts of horseraces
conducted at horse racetracks outside Florida, if the track conducted a full schedule of
live racing in the preceding fiscal year;
Includes a provision to revise the deadlines for annual license applications and
amendments by thoroughbred permitholders, and for issuance of such licenses by the
commission, to conform with similar deadline revisions in the bill;
Deletes a provision authorizing the commission to waive criminal convictions of slot
machine occupational licensees in certain circumstances; and
Removes obsolete language and conforms provisions to changes made by the
amendment.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.