Florida 2025 2025 Regular Session

Florida Senate Bill S0622 Analysis / Analysis

Filed 04/22/2025

                    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 Fiscal Policy  
 
BILL: CS/CS/SB 622 
INTRODUCER:  Fiscal Policy Committee; Regulated Industries Committee; and Senators Rodriguez and 
Calatayud 
SUBJECT:  Jai Alai Permitholders 
DATE: April 22, 2025 
 
 ANALYST STAFF DIRECTOR  REFERENCE  	ACTION 
1. Baird Imhof RI Fav/CS 
2. Davis Betta AEG  Favorable 
3. Baird Siples FP Fav/CS 
 
Please see Section IX. for Additional Information: 
COMMITTEE SUBSTITUTE - Substantial Changes 
 
I. Summary: 
CS/CS/SB 622 provides that holders of a valid pari-mutuel permit are entitled to lease their pari-
mutuel permitted facilities to any jai alai permitholder within a 35-mile radius. This changes the 
current restriction that only allows holders of valid pari-mutuel permits to lease their facilities to 
any other holder of a same class valid pari-mutuel permit. The bill also removes the authority for 
these permitholders to be entitled to obtain an additional permit; however, they may apply for a 
license to conduct specified gaming activities at the leased premises. 
 
Finally, the bill requires that a jai alai permitholder that leases a facility from another 
permitholder must conduct a minimum of 20 live performances using such permitholder’s 
existing permit and may not operate under the lessor’s permit. 
 
The bill is not expected to affect state revenues and expenditures. See Section V., Fiscal Impact 
Statement. 
 
The bill takes July 1, 2025. 
REVISED:   BILL: CS/CS/SB 622   	Page 2 
 
II. Present Situation: 
Pari-Mutuel Wagering in Florida 
Since approximately 1931, pari-mutuel wagering (PMW) activities have been authorized in 
Florida for jai alai, greyhound racing, and horseracing. Pari-mutuel wagering is a system of 
betting where all bets are placed into a pool and the payout is then distributed among the 
winners, proportionally to their wagers, after deducting a percentage for the house. 
 
These activities are overseen and regulated
1
 by the Division of Pari-Mutuel Wagering (division) 
within the Florida Gaming Control Commission (commission), which is housed for 
administrative purposes within the Department of Legal Affairs, Office of the Attorney General.
2
 
The commission issues permits and operating licenses for PMW activities. Only pari-mutuel 
wagering permitholders under certain conditions are authorized to conduct other gaming 
activities like operating a cardroom or operating slot machines at their PMW facilities. 
 
Pari-Mutuel Wagering Permitting and Licensure 
 
The Florida Pari-mutuel Wagering Act (Act)
3 provides specific permitting and licensing 
requirements for the conduct of the pari-mutuel industry.
4 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.
5 Permitholders apply for an operating license annually to 
conduct PMW activities.
6 Certain permitholders are also authorized to operate cardrooms
7 and 
slot machines at their facility.
8 
 
The Act generally requires that any transfer or assignment of a permit receive prior approval
9 by 
the commission, which must determine the eligibility
10 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.
11 
 
 
1
 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. 
2
 See ss. 16.71-16.716, F.S. 
3
 Chapter 550, F.S. 
4
 Section 550.054(1), F.S. 
5
 Section 550.054(2), F.S. 
6
 Section 550.0115, F.S. 
7
 Section 849.086, F.S. 
8
 Section 551.104, F.S. 
9
 There is one exception to the prior-approval requirement in s. 550.054(11)(a), F.S., which is that the holder of a permit 
converted to a jai alai permit “may lease or build anywhere within the county in which its permit is located.” As of 2021, 
such conversions are prohibited. See s. 550.054(15)(d), F.S. 
10
 See s. 550.1815, F.S. 
11
 Section 550.054(11)(b), F.S.  BILL: CS/CS/SB 622   	Page 3 
 
The Act restricts pari-mutuel permitholders from being issued an operating license to conduct 
PMW, slot machine gaming, or the operation of a cardroom if the permitholder did not hold an 
operating license for the conduct of PMW for Fiscal Year 2020-2021.
12 
 
The Act restricts pari-mutuel permitholders from holding a permit to conduct PMW and 
associated cardroom or slot machine licenses
13 unless the permitholder, other than a limited 
thoroughbred permitholder, held an operating license for the conduct of PMW for Fiscal Year 
2020-2021.
14 
 
The Act specifies that permits held on January 1, 2021, are deemed valid,
15 but new permits for 
pari-mutuel wagering may not be approved or issued.
16  
 
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 PMW for 
Fiscal Year 2020- 2021. A permit revoked under this provision is void and may not be reissued.
17 
 
Those pari-mutuel permits approved under ch. 550, F.S., are issued to the specific location in the 
permit application and for a specific type of pari-mutuel activity. Authorized pari-mutuel permit 
types include: greyhound racing, jai alai, thoroughbred racing, quarter horse racing, and harness 
horse racing. 
 
Leasing of Pari-Mutuel Facilities 
Florida allows holders of pari-mutuel permits to lease any and all of their facilities to any other 
holder of a same class valid pari-mutuel permit.
18
 There is a requirement that the facility be 
located within a 35-mile radius of the lessee.
19
 Once a lease agreement is in place, the lessee is 
entitled to a permit and license to conduct intertrack wagering and operate its race meet or jai 
alai games at the leased premise.
20
 
 
Florida defines the same class of races, games or permit as: 
 
With respect to a jai alai permitholder, jai alai games or other jai alai permitholders; with respect 
to a greyhound permitholder, other greyhound permitholders conducting pari-mutuel wagering; 
with respect to a thoroughbred permitholder, thoroughbred races or other thoroughbred 
permitholders; with respect to a harness permitholder, harness races or other harness 
permitholders; with respect to a quarter horse permitholder, quarter horse races or other quarter 
horse permitholders.
21
 
 
12
 Section 550.01215(1)(d), F.S. 
13
 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. 
14
 Section 550.054(15)(a), F.S. 
15
 Section 550.054(15)(b), F.S. 
16
 Section 550.054(15)(c), F.S. 
17
 Section 550.054(9)(c), F.S. 
18
 Section 550.475, F.S. 
19
 Id. 
20
 Id. 
21
 Section 550.002(31), F.S.  BILL: CS/CS/SB 622   	Page 4 
 
 
During Fiscal Year 2024-2025, approximately six pari-mutuel operating licenses are operating 
by lease at another same class pari-mutuel permitholder’s permitted facility under s. 550.475, 
F.S.
22
 
 
Jai Alai 
Jai alai is a fast-paced sport involving players hurling a ball against a wall, that can be configured 
in various ways, typically involving single players, teams of two, or in modern leagues, teams of 
six. Beginning in the early 20
th
 century in Florida, jai alai experienced great popularity but has 
since seen a decline in popularity throughout the 21
st
 century. 
 
There are approximately 10 jai alai operating licenses operating at seven permitted facilities.
23 
During Fiscal Year 2023-2024, jai alai permitholders brought in less than $1,000,000 in revenue 
from the pari-mutuel handle.
24 In Fiscal Year 2023-2024, only Dania Jai Alai and Magic City Jai 
Alai were conducting live jai alai games. 
III. Effect of Proposed Changes: 
Section 1 amends s. 550.475, F.S., to allow a pari-mutuel permit holder to lease their facilities to 
any jai alai permitholder when located within a 35-mile radius. 
 
This amends the current law to allow a pari-mutuel permit holder to lease their facilities to jai 
alai permitholders, even if the jai alai permitholder is not in the same class as the pari-mutuel 
holder, (i.e., thoroughbred permit holder could lease their premises to a jai alai permitholder). 
 
The bill also removes the authority for these permitholders to be entitled to obtain an additional 
permit; however, they may apply for a license to conduct intertrack wagering and operate its race 
meet or jai alai games activities at the leased premises. 
 
Finally, the bill requires that a jai alai permitholder that leases a facility from another 
permitholder must conduct a minimum of 20 live performances using such permitholder’s 
existing permit and may not operate under the lessor’s permit. 
 
Sections 2 provides an effective date of July 1, 2025. 
IV. Constitutional Issues: 
A. Municipality/County Mandates Restrictions: 
None. 
 
22
 See Florida Gaming Control Commission, 2025 Agency Legislative Bill Analysis for SB 622 at 2 (March 4, 2025) (on file 
with the Senate Committee on Regulated Industries). 
23
 See Florida Gaming Control Commission, Annual Report Fiscal Year 2023-2024 (Annual Report), 
https://flgaming.gov/pmw/annual-reports/docs/2023-2024-FGCC-Annual-Report.pdf (last visited March 24, 2025). 
24
 Id.  BILL: CS/CS/SB 622   	Page 5 
 
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: 
The bill may have a positive economic impact on businesses by opening up more 
opportunities for lessors and lessees of pari-mutuel wagering facilities. The amount of 
additional revenue that may be generated is unknown. 
C. Government Sector Impact: 
The bill is not expected to impact state revenues or expenditures. 
VI. Technical Deficiencies: 
None. 
VII. Related Issues: 
None. 
VIII. Statutes Affected: 
This bill substantially amends section 550.475 of the Florida Statutes.  
  BILL: CS/CS/SB 622   	Page 6 
 
IX. Additional Information: 
A. Committee Substitute – Statement of Substantial Changes: 
(Summarizing differences between the Committee Substitute and the prior version of the bill.) 
CS/CS by Fiscal Policy on April 22, 2025: 
The committee substitute provides: 
• That valid pari-mutuel permitholders may lease their facilities at their permitted 
location to any jai alai permitholder. 
• The lessee may apply for a license to conduct intertrack wagering and operate its race 
meet or jai alai games at leased facility but may not operate a cardroom or slot 
machine at the leased facility. 
• The jai alai permitholder that leases a facility must conduct a minimum of 20 live 
performances using their own permit and may not operate under the lessor’s permit. 
 
CS by Regulated Industries on March 25, 2025: 
The committee substitute provides that a holder of a valid pari-mutuel permit may lease 
their pari-mutuel permitted facilities to any other holder of a same class valid or to any jai 
alai permitholder.  
 
Additionally, the committee substitute provides that such lessee may apply (as opposed to 
being entitled) for a license to conduct intertrack wagering and operate its race meet or jai 
alai games at the leased premises. 
B. Amendments: 
None. 
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.