The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By: The Professional Staff of the Committee on Regulated Industries
BILL: SB 408
INTRODUCER: Senator Burgess
SUBJECT: Thoroughbred Permitholders
DATE: March 31, 2025
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Baird Imhof RI Pre-meeting
2. AEG
3. RC
I. Summary:
SB 408 removes live racing requirements for thoroughbred permitholders.
The bill allows a thoroughbred permitholder that does not conduct live racing to retain the ability
to apply for a slot machine and cardroom license.
The bill also exempts thoroughbred permitholders with a slot machine license from the
thoroughbred horse racing purses and awards agreement requirements.
II. Present Situation:
Background
In general, gambling is illegal in Florida.
1
Chapter 849, F.S., prohibits keeping a gambling
house,
2
running a lottery,
3
or the manufacture, sale, lease, play, or possession of slot machines.
4
However, the following gaming activities are authorized by law and regulated by the state:
• Pari-mutuel
5
wagering at licensed greyhound and horse tracks and jai alai frontons;
6
• Slot machine gaming at certain licensed pari-mutuel locations in Miami-Dade County and
Broward County;
7
1
See s. 849.08, F.S.
2
See s. 849.01, F.S.
3
See s. 849.09, F.S.
4
See s. 849.16, F.S.
5
Section 550.002(22), F.S., defines “pari-mutuel” 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.
6
See ch. 550, F.S., relating to the regulation of pari-mutuel activities.
7
See FLA. CONST., art. X, s. 23, and ch. 551, F.S.
REVISED: BILL: SB 408 Page 2
• Cardrooms
8
at certain pari-mutuel facilities;
9
• The state lottery authorized by section 15 of Article X of the State Constitution and
established under ch. 24, F.S.;
10
• Skill-based amusement games and machines at specified locations as authorized by
s. 546.10, F.S, the Family Amusement Games Act;
11
and
• The following activities, if conducted as authorized under ch. 849, F.S., relating to Gambling,
under specific and limited conditions:
o Penny-ante games;
12
o Bingo;
13
o Charitable drawings;
14
o Game promotions (sweepstakes);
15
and
o Bowling tournaments.
16
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.
17
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.
18
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.
19
8
Section 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.”
9
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 March
31, 2025), which states that of 29 licensed permitholders, 26 operated at a pari-mutuel facility.
10
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.
11
See s. 546.10, F.S.
12
See s. 849.085, F.S.
13
See s. 849.0931, F.S
14
See s. 849.0935, F.S.
15
Section 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
16
See s. 849.141, F.S.
17
Section 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).
18
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.
19
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. BILL: SB 408 Page 3
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
20
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.
21
Live Racing Requirements
Currently, only thoroughbred permitholders are required to conduct live racing in order to
operate other pari-mutuel gaming activities. Greyhound permitholders are prohibited from
conducting live racing, and jai alai permitholders, harness horse racing permitholders, and
quarter horse racing permitholders have the option to conduct live racing or games.
22
A greyhound permitholder, jai alai permitholder, harness horse racing permitholder, or quarter
horse racing permitholder that does not conduct live racing or games:
23
• 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.
• Remains eligible for a cardroom license.
Pari-mutuel Wagering Permitting and Licensure
The Florida Pari-mutuel Wagering Act (act)
24
provides specific permitting and licensing
requirements for the pari-mutuel industry.
25
Permitholders apply for an operating license
annually to conduct pari-mutuel wagering activities.
26
Certain permitholders are also authorized
to operate cardrooms
27
and slot machines at their facility.
28
Currently, there are three pari-mutuel operating licenses that were issued for fiscal year 2024-
2025 to conduct live thoroughbred racing performances. These licenses and their locations
include:
29
• Gulfstream Park Racing Association Inc., which operates at Gulfstream Park in Broward
County.
20
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 the Department of
Business and Professional Regulation (DBPR).
21
See ss. 16.71-16.716, F.S.
22
Section 550.01215, F.S.(1)(b)1., F.S.
23
Id.
24
See ch. 550, F.S.
25
Section 550.054(1), F.S.
26
Section 550.0115, F.S.
27
Section 849.086, F.S.
28
Section 551.104, F.S.
29
Florida Gaming Control Commission, Permit Holder Operating Licenses 2024-2025, available at
https://flgaming.gov/pmw/tracks-frontons/permitholder-operating-licenses-2024-2025/ (last visited March 31, 2025). BILL: SB 408 Page 4
• Gulfstream Park Thoroughbred After Racing Program, Inc., which operates at Gulfstream
Park in Broward County.
• Tampa Bay Downs, Inc., which operates at Tampa Bay Downs in Hillsborough County.
Slot Machine Licensing
An application for a license to conduct slot machine gaming 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.
30
Currently, slot machines are only authorized in eight
licensed pari-mutuel facilities located in Miami-Dade and Broward counties and on tribal
property.
31
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.
32
As a condition of licensure and to maintain continued authority for the conduct of slot machine
gaming, slot machine licensees that hold a thoroughbred permit, may conduct no fewer than a
full schedule of live racing or games as defined in s. 550.002(10), F.S. A permitholder’s
responsibility to conduct live races or games shall be reduced by the number of races or games
that could not be conducted due to the direct result of fire, strike, war, hurricane, pandemic, or
other disaster or event beyond the control of the permitholder.
33
Cardroom Licensing
An application for a license to conduct cardroom gaming may be approved by the commission
upon proof that the local government where the applicant for such license desires to conduct
cardroom gaming has voted to approve such activity by a majority vote of the governing body of
the municipality or the governing body of the county if the facility is not located in a
municipality.
34
Municipalities are authorized to prohibit the establishment of a cardroom on or after July 1,
2021, within their jurisdiction. This does not apply to a licensed pari-mutuel permitholder who
held an operating license for the conduct of pari-mutuel wagering for fiscal year 2020-2021 in
the municipality’s jurisdiction or to a cardroom that was previously approved by the
municipality.
35
Only those persons holding a valid cardroom license issued by the commission may operate a
cardroom. A cardroom license may only be issued to a licensed pari-mutuel permitholder, and an
30
Section 551.104(2), F.S.
31
Section 551.101, F.S.
32
Section 551.104(3), F.S.
33
Section 551.104(4)(c), F.S.
34
Section 849.086(16)(a), F.S.
35
Section 849.086(16)(b), F.S. BILL: SB 408 Page 5
authorized cardroom may only be operated at the same facility at which the permitholder is
authorized under its valid pari-mutuel wagering permit to conduct pari-mutuel wagering
activities.
36
A pari-mutuel permitholder, other than a converted quarter horse to thoroughbred permitholder
or a purchaser, transferee, or assignee holding a valid permit for the conduct of pari-mutuel
wagering, 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.
37
In order for an initial cardroom license to be issued to a converted quarter horse to 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.
38
In order for a cardroom license to be renewed by a thoroughbred permitholder, the applicant
must have requested, as part of its pari-mutuel annual license application, to conduct at least 90
percent of the total number of live performances conducted by such permitholder during either
the state fiscal year in which its initial cardroom license was issued or the state fiscal year
immediately prior thereto if the permitholder ran at least a full schedule of live racing or games
in the prior year.
39
Thoroughbred Purses and Awards
A slot machine license may not be issued, or renewed, to an applicant holding a permit to
conduct pari-mutuel wagering meets of thoroughbred racing unless the applicant has on file with
the commission a binding written agreement between the applicant and the:
40
• Florida Horsemen’s Benevolent and Protective Association, Inc., governing the payment of
purses on live thoroughbred races conducted at the licensee’s pari-mutuel facility.
• Florida Thoroughbred Breeders’ Association, Inc., governing the payment of breeders’,
stallion, and special racing awards on live thoroughbred races conducted at the licensee’s
pari-mutuel facility.
The agreements may direct the payment of such purses and awards from revenues generated by
any wagering or gaming the applicant is authorized to conduct under Florida law. All purses and
awards are subject to the terms of ch. 550, F.S. All sums for breeders’, stallion, and special
racing awards are remitted monthly to the Florida Thoroughbred Breeders’ Association, Inc., for
the payment of awards subject to the administrative fee authorized in s. 550.2625(3), F.S.
41
“Purse” means the cash portion of the prize for which a race or game is contested.
42
“Breeders’
and stallions awards” means financial incentives paid to encourage the agricultural industry of
36
Section 849.086(5)(a), F.S.
37
Section 849.086(5)(c), F.S.
38
Id.
39
Id.
40
Section 551.104(10)(a)1., F.S.
41
Id.
42
Section 550.002(28), F.S. BILL: SB 408 Page 6
breeding racehorses in this state.
43
Current law provides that “the purse structure and the
availability of breeder awards are important factors in attracting the entry of well-bred horses in
racing meets in this state which in turn helps to produce maximum racing revenues for the state
and the counties.”
44
Each permitholder conducting a horserace meet is required to pay from the
takeout withheld on pari-mutuel pools a sum for purses in accordance with the type of race
performed.
45
Each horseracing permitholder conducting any thoroughbred race is required to pay
a sum on all pari-mutuel pools conducted during any such race for the payment of breeders’,
stallion, or special racing awards.
46
Slot Machine Gaming Locations and Operations
Section 32 of Art. X of the State Constitution, adopted pursuant to a 2004 initiative petition,
authorized 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, by authorized slot machine gaming
licensees at specified pari-mutuel facility locations, is limited to Broward and Miami-Dade
counties, and as authorized by federal law and the 2021 Gaming Compact, in the tribal gaming
facilities of the Seminole Tribe located in Broward County, Collier County, Glades County,
Hendry County, and Hillsborough County.
III. Effect of Proposed Changes:
Section 1 of the bill adds thoroughbred permitholders to the list of types of pari-mutuel wagering
permit holders that may elect not to conduct live racing or games. The bill removes the
requirements that thoroughbred permitholders must conduct live racing. This section of the bill
provides that if such permitholder has been issued a slot machine license, that choosing to not
conduct live racing will allow the facility where such permit is located to remain an eligible
facility to have a slot machine license and is exempt from ss. 551.104(10), F.S.
47
Section 2 of the bill removes the requirement for thoroughbred permitholders that apply for a
slot machine license to have on file with the commission a binding written agreement between
the applicant and the:
• Florida Horsemen’s Benevolent and Protective Association, Inc., governing the payment of
purses on live thoroughbred races conducted at the licensee’s pari-mutuel facility.
• Florida Thoroughbred Breeders’ Association, Inc., governing the payment of breeders’,
stallion, and special racing awards on live thoroughbred races conducted at the licensee’s
pari-mutuel facility.
Section 3 of the bill provides an effective date of July 1, 2025.
43
Section 550.002(2), F.S.
44
Section 550.2625(1), F.S.
45
See s. 550.2625(2)(a), F.S.
46
See s. 550.2625(3), F.S.
47
See s. 551.104(10), F.S., regarding purses, the requirement that a thoroughbred permitholder have a binding written
agreement between the Florida Horsemen’s Benevolent and Protective Association, Inc., and the Florida Thoroughbred
Breeders’ Association, Inc., respectively. BILL: SB 408 Page 7
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:
Decoupling may displace families, eliminate jobs, and jeopardize 110,000 acres of horse
farms. This could further degrade the horse breeding industry and thoroughbred racing in
Florida.
48
C. Government Sector Impact:
In Fiscal Year 2023-24 the commission expended approximately $640,000 in OPS dollars
associated with occupational licensing and post-race specimen collection for the detection
of impermissible substances in thoroughbred racing animals. The amount the commission
would realize in the reduction of OPS expenditures would be dependent on the number of
live racing performances reduced or eliminated by Florida Thoroughbred licensees.
49
VI. Technical Deficiencies:
None.
48
Florida Gaming Control Commission, 2025 Agency Analysis Legislative Bill Analysis (February 6, 2025), available at
https://abar.laspbs.state.fl.us/ABAR/Attachment.aspx?ID=36208 (last visited March 31, 2025).
49
Id. BILL: SB 408 Page 8
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends sections 550.01215 and 551.104 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.