Florida Senate - 2025 CS for SB 408 By the Committee on Regulated Industries; and Senator Burgess 580-03183-25 2025408c1 1 A bill to be entitled 2 An act relating to thoroughbred permitholders; 3 amending s. 550.01215, F.S.; requiring certain 4 thoroughbred permitholders to conduct a full schedule 5 of live racing until such permitholders provide notice 6 to the Florida Gaming Control Commission with certain 7 information; providing that such notice is not valid 8 unless it is delivered to the commission on or after a 9 specified date; conforming provisions to changes made 10 by the act; amending s. 550.0951, F.S.; revising the 11 criteria for certain thoroughbred permitholders to pay 12 the tax on handle for intertrack wagering; amending s. 13 551.104, F.S.; conforming provisions to changes made 14 by the act; amending s. 849.086, F.S.; deleting 15 certain criteria a thoroughbred permitholder must meet 16 as part of its pari-mutuel annual license application 17 in order to have its cardroom license renewed; 18 conforming provisions to changes made by the act; 19 reenacting ss. 550.3551(3) and 550.615(2), F.S., 20 relating to the transmission of racing and jai alai 21 information and commingling of pari-mutuel pools and 22 intertrack wagering, respectively, to incorporate the 23 amendment made to s. 550.01215, F.S., in references 24 thereto; reenacting ss. 550.09515(5), 550.09511(3)(a), 25 and 550.6305(9)(a), F.S., relating to thoroughbred 26 horse taxes and abandoned interest in a permit for 27 nonpayment of taxes; jai alai taxes and abandoned 28 interest in a permit for nonpayment of taxes; and 29 intertrack wagering, guest track payments, and 30 accounting rules, respectively, to incorporate the 31 amendment made to s. 550.0951, F.S., in references 32 thereto; providing an effective date. 33 34 Be It Enacted by the Legislature of the State of Florida: 35 36 Section 1.Paragraph (b) of subsection (1) of section 37 550.01215, Florida Statutes, is amended to read: 38 550.01215License application; periods of operation; 39 license fees; bond. 40 (1)Each permitholder shall annually, during the period 41 between January 15 and February 4, file in writing with the 42 commission its application for an operating license for a pari 43 mutuel facility for the conduct of pari-mutuel wagering during 44 the next state fiscal year, including intertrack and simulcast 45 race wagering. Each application for live performances must 46 specify the number, dates, and starting times of all live 47 performances that the permitholder intends to conduct. It must 48 also specify which performances will be conducted as charity or 49 scholarship performances. 50 (b)1.A greyhound permitholder may not conduct live racing. 51 A jai alai permitholder, harness horse racing permitholder, or 52 quarter horse racing permitholder may elect not to conduct live 53 racing or games. A thoroughbred permitholder must conduct live 54 racing pursuant to subparagraph 2. A greyhound permitholder, jai 55 alai permitholder, harness horse racing permitholder, or quarter 56 horse racing permitholder, or thoroughbred permitholder pursuant 57 to subparagraph 2. that does not conduct live racing or games 58 retains its permit; is a pari-mutuel facility as defined in s. 59 550.002(23); if such permitholder has been issued a slot machine 60 license, the facility where such permit is located remains an 61 eligible facility as defined in s. 551.102(4), continues to be 62 eligible for a slot machine license pursuant to s. 551.104(3), 63 and is exempt from ss. 551.104(10) and 551.114(2) ss. 64 551.104(4)(c) and (10) and 551.114(2); is eligible, but not 65 required, to be a guest track and, if the permitholder is a 66 harness horse racing permitholder or a thoroughbred permitholder 67 pursuant to subparagraph 2., to be a host track for purposes of 68 intertrack wagering and simulcasting pursuant to ss. 550.3551, 69 550.615, 550.625, and 550.6305; and remains eligible for a 70 cardroom license. 71 2.A thoroughbred permitholder who operates a slot machine 72 facility or cardroom shall conduct a full schedule of live 73 racing until such permitholder notifies the commission that it 74 will no longer conduct live racing. Notice under this 75 subparagraph is not valid unless it is delivered to the 76 commission on or after July 1, 2028, and contains the date on 77 which the permitholder will no longer conduct live racing, which 78 may not be earlier than 4 years after the date of the notice. 79 3.2.A permitholder or licensee may not conduct live 80 greyhound racing or dogracing in connection with any wager for 81 money or any other thing of value in the state. The commission 82 may deny, suspend, or revoke any permit or license under this 83 chapter if a permitholder or licensee conducts live greyhound 84 racing or dogracing in violation of this subparagraph. In 85 addition to, or in lieu of, denial, suspension, or revocation of 86 such permit or license, the commission may impose a civil 87 penalty of up to $5,000 against the permitholder or licensee for 88 a violation of this subparagraph. All penalties imposed and 89 collected must be deposited with the Chief Financial Officer to 90 the credit of the General Revenue Fund. 91 Section 2.Paragraph (c) of subsection (3) of section 92 550.0951, Florida Statutes, is amended to read: 93 550.0951Payment of daily license fee and taxes; 94 penalties. 95 (3)TAX ON HANDLE.Each permitholder shall pay a tax on 96 contributions to pari-mutuel pools, the aggregate of which is 97 hereinafter referred to as handle, on races or games conducted 98 by the permitholder. The tax is imposed daily and is based on 99 the total contributions to all pari-mutuel pools conducted 100 during the daily performance. If a permitholder conducts more 101 than one performance daily, the tax is imposed on each 102 performance separately. 103 (c)1.The tax on handle for intertrack wagering is 2.0 104 percent of the handle if the host track is a horse track, 3.3 105 percent if the host track is a harness track, 5.5 percent if the 106 host track is a dog track, and 7.1 percent if the host track is 107 a jai alai fronton. The tax on handle for intertrack wagering is 108 0.5 percent if the host track and the guest track are 109 thoroughbred permitholders or if the guest track is located 110 outside the market area of the host track and within the market 111 area of a thoroughbred permitholder that conducted a full 112 schedule of live racing the preceding fiscal year currently 113 conducting a live race meet. The tax on handle for intertrack 114 wagering on rebroadcasts of simulcast thoroughbred horseraces is 115 2.4 percent of the handle and 1.5 percent of the handle for 116 intertrack wagering on rebroadcasts of simulcast harness 117 horseraces. The tax shall be deposited into the Pari-mutuel 118 Wagering Trust Fund. 119 2.The tax on handle for intertrack wagers accepted by any 120 dog track located in an area of the state in which there are 121 only three permitholders, all of which are greyhound 122 permitholders, located in three contiguous counties, from any 123 greyhound permitholder also located within such area or any dog 124 track or jai alai fronton located as specified in s. 550.615(6) 125 or (9), on races or games received from the same class of 126 permitholder located within the same market area is 3.9 percent 127 if the host facility is a greyhound permitholder and, if the 128 host facility is a jai alai permitholder, the rate shall be 6.1 129 percent except that it shall be 2.3 percent on handle at such 130 time as the total tax on intertrack handle paid to the 131 commission by the permitholder during the current state fiscal 132 year exceeds the total tax on intertrack handle paid to the 133 commission by the permitholder during the 1992-1993 state fiscal 134 year. 135 Section 3.Paragraph (a) of subsection (10) of section 136 551.104, Florida Statutes, is amended to read: 137 551.104License to conduct slot machine gaming. 138 (10)(a)1.Until a thoroughbred permitholder is no longer 139 conducting live racing pursuant to s. 550.01215(1)(b)2., a no 140 slot machine license or renewal thereof may not shall be issued 141 to an applicant holding a permit under chapter 550 to conduct 142 pari-mutuel wagering meets of thoroughbred racing unless the 143 applicant has on file with the commission a binding written 144 agreement between the applicant and the Florida Horsemens 145 Benevolent and Protective Association, Inc., governing the 146 payment of purses on live thoroughbred races conducted at the 147 licensees pari-mutuel facility. In addition, a no slot machine 148 license or renewal thereof may not shall be issued to such an 149 applicant unless the applicant has on file with the commission a 150 binding written agreement between the applicant and the Florida 151 Thoroughbred Breeders Association, Inc., governing the payment 152 of breeders, stallion, and special racing awards on live 153 thoroughbred races conducted at the licensees pari-mutuel 154 facility. The agreement governing purses and the agreement 155 governing awards may direct the payment of such purses and 156 awards from revenues generated by any wagering or gaming the 157 applicant is authorized to conduct under Florida law. All purses 158 and awards are shall be subject to the terms of chapter 550. All 159 sums for breeders, stallion, and special racing awards are 160 shall be remitted monthly to the Florida Thoroughbred Breeders 161 Association, Inc., for the payment of awards subject to the 162 administrative fee authorized in s. 550.2625(3). 163 2.A No slot machine license or renewal thereof may not 164 shall be issued to an applicant holding a permit under chapter 165 550 to conduct pari-mutuel wagering meets of quarter horse 166 racing unless the applicant has on file with the commission a 167 binding written agreement between the applicant and the Florida 168 Quarter Horse Racing Association or the association representing 169 a majority of the horse owners and trainers at the applicants 170 eligible facility, governing the payment of purses on live 171 quarter horse races conducted at the licensees pari-mutuel 172 facility. The agreement governing purses may direct the payment 173 of such purses from revenues generated by any wagering or gaming 174 the applicant is authorized to conduct under Florida law. All 175 purses are shall be subject to the terms of chapter 550. 176 Section 4.Paragraph (c) of subsection (5) and paragraph 177 (d) of subsection (13) of section 849.086, Florida Statutes, are 178 amended to read: 179 849.086Cardrooms authorized. 180 (5)LICENSE REQUIRED; APPLICATION; FEES.No person may 181 operate a cardroom in this state unless such person holds a 182 valid cardroom license issued pursuant to this section. 183 (c)Notwithstanding any other provision of law, a pari 184 mutuel permitholder, other than a permitholder issued a permit 185 pursuant to s. 550.3345 or a purchaser, transferee, or assignee 186 holding a valid permit for the conduct of pari-mutuel wagering 187 approved pursuant to s. 550.054(15)(a), may not be issued a 188 license for the operation of a cardroom if the permitholder did 189 not hold an operating license for the conduct of pari-mutuel 190 wagering for fiscal year 2020-2021. In order for an initial 191 cardroom license to be issued to a thoroughbred permitholder 192 issued a permit pursuant to s. 550.3345, the applicant must have 193 requested, as part of its pari-mutuel annual license 194 application, to conduct at least a full schedule of live racing. 195 In order for a cardroom license to be renewed by a thoroughbred 196 permitholder, the applicant must have requested, as part of its 197 pari-mutuel annual license application, to conduct at least 90 198 percent of the total number of live performances conducted by 199 such permitholder during either the state fiscal year in which 200 its initial cardroom license was issued or the state fiscal year 201 immediately prior thereto if the permitholder ran at least a 202 full schedule of live racing or games in the prior year. 203 (13)TAXES AND OTHER PAYMENTS. 204 (d)1.Each jai alai permitholder that conducts live 205 performances and operates a cardroom facility shall use at least 206 4 percent of such permitholders cardroom monthly gross receipts 207 to supplement jai alai prize money during the permitholders 208 next ensuing pari-mutuel meet. 209 2.Until a thoroughbred permitholder is no longer 210 conducting live racing pursuant to s. 550.01215(1)(b)2., each 211 thoroughbred permitholder or harness horse racing permitholder 212 that conducts live performances and operates a cardroom facility 213 shall use at least 50 percent of such permitholders cardroom 214 monthly net proceeds as follows: 47 percent to supplement purses 215 and 3 percent to supplement breeders awards during the 216 permitholders next ensuing racing meet. 217 3.A No cardroom license or renewal thereof may not shall 218 be issued to an applicant holding a permit under chapter 550 to 219 conduct pari-mutuel wagering meets of quarter horse racing and 220 conducting live performances unless the applicant has on file 221 with the commission a binding written agreement between the 222 applicant and the Florida Quarter Horse Racing Association or 223 the association representing a majority of the horse owners and 224 trainers at the applicants eligible facility, governing the 225 payment of purses on live quarter horse races conducted at the 226 licensees pari-mutuel facility. The agreement governing purses 227 may direct the payment of such purses from revenues generated by 228 any wagering or gaming the applicant is authorized to conduct 229 under Florida law. All purses are shall be subject to the terms 230 of chapter 550. 231 Section 5.For the purpose of incorporating the amendment 232 made by this act to section 550.01215, Florida Statutes, in a 233 reference thereto, subsection (3) of section 550.3551, Florida 234 Statutes, is reenacted to read: 235 550.3551Transmission of racing and jai alai information; 236 commingling of pari-mutuel pools. 237 (3)Any horse track licensed under this chapter may receive 238 broadcasts of horseraces conducted at other horse racetracks 239 located outside this state at the racetrack enclosure of the 240 licensee, if the horse track conducted a full schedule of live 241 racing during the preceding state fiscal year, or if the horse 242 track does not conduct live racing as authorized under s. 243 550.01215. 244 (a)All broadcasts of horseraces received from locations 245 outside this state must comply with the provisions of the 246 Interstate Horseracing Act of 1978, 92 Stat. 1811, 15 U.S.C. ss. 247 3001 et seq. 248 (b)Wagers accepted at the horse track in this state may 249 be, but are not required to be, included in the pari-mutuel 250 pools of the out-of-state horse track that broadcasts the race. 251 Notwithstanding any contrary provisions of this chapter, if the 252 horse track in this state elects to include wagers accepted on 253 such races in the pari-mutuel pools of the out-of-state horse 254 track that broadcasts the race, from the amount wagered by 255 patrons at the horse track in this state and included in the 256 pari-mutuel pools of the out-of-state horse track, the horse 257 track in this state shall deduct as the takeout from the amount 258 wagered by patrons at the horse track in this state and included 259 in the pari-mutuel pools of the out-of-state horse track a 260 percentage equal to the percentage deducted from the amount 261 wagered at the out-of-state racetrack as is authorized by the 262 laws of the jurisdiction exercising regulatory authority over 263 the out-of-state horse track. 264 (c)All forms of pari-mutuel wagering are allowed on races 265 broadcast under this section, and all money wagered by patrons 266 on such races shall be computed as part of the total amount of 267 money wagered at each racing performance for purposes of 268 taxation under ss. 550.0951, 550.09512, and 550.09515. Section 269 550.2625(2)(a), (b), and (c) does not apply to any money wagered 270 on races broadcast under this section. Similarly, the takeout 271 shall be increased by breaks and uncashed tickets for wagers on 272 races broadcast under this section, notwithstanding any contrary 273 provision of this chapter. 274 Section 6.For the purpose of incorporating the amendment 275 made by this act to section 550.01215, Florida Statutes, in a 276 reference thereto, subsection (2) of section 550.615, Florida 277 Statutes, is reenacted to read: 278 550.615Intertrack wagering. 279 (2)Except as provided in subsection (1), a pari-mutuel 280 permitholder that has met the applicable requirement for that 281 permitholder to conduct live racing or games under s. 282 550.01215(1)(b), if any, for fiscal year 2020-2021 is qualified 283 to, at any time, receive broadcasts of any class of pari-mutuel 284 race or game and accept wagers on such races or games conducted 285 by any class of permitholders licensed under this chapter. 286 Section 7.For the purpose of incorporating the amendment 287 made by this act to section 550.0951, Florida Statutes, in a 288 reference thereto, subsection (5) of section 550.09515, Florida 289 Statutes, is reenacted to read: 290 550.09515Thoroughbred horse taxes; abandoned interest in a 291 permit for nonpayment of taxes. 292 (5)Notwithstanding the provisions of s. 550.0951(3)(c), 293 the tax on handle for intertrack wagering on rebroadcasts of 294 simulcast horseraces is 2.4 percent of the handle; provided 295 however, that if the guest track is a thoroughbred track located 296 more than 35 miles from the host track, the host track shall pay 297 a tax of .5 percent of the handle, and additionally the host 298 track shall pay to the guest track 1.9 percent of the handle to 299 be used by the guest track solely for purses. The tax shall be 300 deposited into the Pari-mutuel Wagering Trust Fund. 301 Section 8.For the purpose of incorporating the amendment 302 made by this act to section 550.0951, Florida Statutes, in a 303 reference thereto, paragraph (a) of subsection (3) of section 304 550.09511, Florida Statutes, is reenacted to read: 305 550.09511Jai alai taxes; abandoned interest in a permit 306 for nonpayment of taxes. 307 (3)(a)Notwithstanding the provisions of subsection (2) and 308 s. 550.0951(3)(c)1., any jai alai permitholder which is 309 restricted under Florida law from operating live performances on 310 a year-round basis is entitled to conduct wagering on live 311 performances at a tax rate of 3.85 percent of live handle. Such 312 permitholder is also entitled to conduct intertrack wagering as 313 a host permitholder on live jai alai games at its fronton at a 314 tax rate of 3.3 percent of handle at such time as the total tax 315 on intertrack handle paid to the commission by the permitholder 316 during the current state fiscal year exceeds the total tax on 317 intertrack handle paid to the former Division of Pari-mutuel 318 Wagering by the permitholder during the 1992-1993 state fiscal 319 year. 320 Section 9.For the purpose of incorporating the amendment 321 made by this act to section 550.0951, Florida Statutes, in a 322 reference thereto, paragraph (a) of subsection (9) of section 323 550.6305, Florida Statutes, is reenacted to read: 324 550.6305Intertrack wagering; guest track payments; 325 accounting rules. 326 (9)A host track that has contracted with an out-of-state 327 horse track to broadcast live races conducted at such out-of 328 state horse track pursuant to s. 550.3551(5) may broadcast such 329 out-of-state races to any guest track and accept wagers thereon 330 in the same manner as is provided in s. 550.3551. 331 (a)For purposes of this section, net proceeds means the 332 amount of takeout remaining after the payment of state taxes, 333 purses required pursuant to s. 550.0951(3)(c)1., the cost to the 334 permitholder required to be paid to the out-of-state horse 335 track, and breeders awards paid to the Florida Thoroughbred 336 Breeders Association and the Florida Standardbred Breeders and 337 Owners Association, to be used as set forth in s. 550.625(2)(a) 338 and (b). 339 Section 10.This act shall take effect July 1, 2025.