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 1566
INTRODUCER: Fiscal Policy Committee; Regulated Industries Committee and Senator Hutson
SUBJECT: Fees/Fantasy Sports Contest Operator
DATE: February 8, 2024 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Kraemer Imhof RI Fav/CS
2. Kraemer Yeatman FP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/CS/SB 1566 imposes license fees on certain fantasy sports contest operators who offer
fantasy sports contests for a cash prize to members of the public in this state. Contest operators
must pay an initial license application fee of $500,000 and renewal fees of $250,000 annually.
Such fees may not exceed 10 percent of the difference between the amount of entry fees
collected by a contest operator from the operation of fantasy sports contests in this state, and the
amount of cash or cash equivalents paid to contest participants in this state. These license fees do
not apply to individuals who act as noncommercial contest operators, as defined in SB 1568,
who collect and distribute entry fees totaling no more than $1,500 per season or $10,000
annually, and who meet other specified requirements. The fees are to be paid to the Florida
Gaming Control Commission (commission) and deposited in the Pari-mutuel Wagering Trust
Fund.
SB 1568 (Fantasy Sports Contest Amusement Act), is a linked bill that addresses authorized
fantasy sports contests.
The impact on state revenues and expenditures is indeterminate. There is no impact expected on
local government revenues and expenditures. See Section V, Fiscal Impact Statement.
The bill is effective on the same date that SB 1568 (Fantasy Sports Contest Amusement Act) or
similar legislation) takes effect, if adopted in the same legislative session or any extension, and
becomes law.
BILL: CS/CS/SB 1566 Page 2
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
In Florida, if a gaming activity is not expressly authorized by law, then the activity constitutes
illegal gambling. In addition to the activities the Seminole Tribe of Florida is authorized by law
to conduct pursuant to ch. 285.710, F.S.,5 the following gaming activities are authorized by law
and regulated by the state:
 Pari-mutuel6 wagering at licensed greyhound and horse tracks and jai alai frontons;7
 Slot machine gaming at certain licensed pari-mutuel locations in Miami-Dade County and
Broward County;8
 Cardrooms9 at certain pari-mutuel facilities;10
 The state lottery authorized by section 15 of Article X of the State Constitution and
established under ch. 24, F.S.;11
 Skill-based amusement games and machines at specified locations as authorized by
s. 546.10, F.S, the Family Amusement Games Act;12 and
 The following activities, if conducted as authorized under ch. 849, relating to Gambling,
under specific and limited conditions:
o Penny-ante games;13
o Bingo;14
o Charitable drawings;15
o Game promotions (sweepstakes);16 and
1
See s. 849.08, F.S.
2
See s. 849.01, F.S.
3
See s. 849.09, F.S.
4
Section 849.16, F.S.
5
See s. 285.710(3), F.S. The activities currently authorized to be conducted by the Seminole Tribe of Florida subject to
limitations described in s. 285.710, F.S., and the 2021 Gaming Compact, include the following: slot machines; banking or
banked card games (such as blackjack, limited to the tribal facilities in Broward County, Collier County, and Hillsborough
County); raffles and drawings; craps and other dice games; roulette; fantasy sports contests; and sports betting.
6
“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.
7
See ch. 550, F.S., relating to the regulation of pari-mutuel activities.
8
See FLA. CONST., art. X, s. 23, and ch. 551, F.S.
9
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.”
10
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. 23, 2024),
which states that of 29 licensed permitholders, 26 operated at a pari-mutuel facility.
11
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.
12
See s. 546.10, F.S.
13
See s. 849.085, F.S.
14
See s. 849.0931, F.S.
15
See s. 849.0935, F.S.
16
See s. 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
BILL: CS/CS/SB 1566 Page 3
o Bowling tournaments.17
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.18
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.19 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.20
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 laws21 and other laws relating to authorized gaming.22 The Office
of Statewide Prosecution in the Department of Legal Affairs is authorized to investigate and
prosecute, in addition to gambling offenses, any violation of ch. 24, F.S., (State Lotteries), part II
of ch. 285, F.S., (Gaming Compact), ch. 546, F.S., (Amusement Facilities), ch. 550, F.S., (Pari-
mutuel Wagering), ch. 551, F.S., (Slot Machines), or ch. 849, F.S., (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
created24 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
17
See s. 849.141, F.S.
18
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).
19
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.
20
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.
21
See Special agents confiscate over 70 illegal gambling devices in Gadsden (tallahassee.com) and
https://www.tcpalm.com/story/news/crime/st-lucie-county/2023/10/24/st-lucie-county-deputies-raid-close-arcade-accused-of-
gambling/71302519007/ relating to recent enforcement by local law enforcement and agents of the Florida Gaming Control
Commission (both last visited Jan. 23, 2024).
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 in ch. 2022-7, Laws of Fla., (Reviser’s Bill) and ch. 2023-8, Laws
of Fla., (Reviser’s Bill).
23
Section 16.56(1)(a), F.S.
24
Section 16.71, F.S.
BILL: CS/CS/SB 1566 Page 4
(DPMW) which was transferred from the Department of Business and Professional Regulation
(DBPR) effective July 1, 2022.25
Fantasy Sports Contests
The operation of fantasy sports activities in Florida has recently received significant publicity,
much like the operation of internet cafes in recent years. Many states are now evaluating the
status of fantasy gaming activities in their jurisdictions,26 as there are millions of participants.27
A fantasy game typically has multiple players who select and manage imaginary teams whose
players are actual professional sports players. Fantasy game players compete against one another
in various formats, including weekly leagues among friends and colleagues, season-long leagues,
and on-line contests (daily and weekly) entered by using the Internet through personal computers
or mobile telephones and other communications devices. There are various financial
arrangements among players and game operators.
Florida law does not specifically address fantasy contests. Section 849.14, F.S.,28 provides that a
person who wagers any “thing of value” upon the result of a contest of skill or endurance of
human or beast, or who receives any money wagered, or who knowingly becomes the custodian
of money or other thing of value that is wagered, is guilty of a second degree misdemeanor.29
The commission has issued cease and desist correspondence to various companies operating
fantasy contests in the state concerning possible violations of Florida’s gambling laws. The
letters have generated controversy, concern, and interest from contest operators, elected officials,
and the Seminole Tribe of Florida, which has entered into gaming compacts with the state (as
discussed below).30 The legality of various forms of fantasy sports games and contests is being
reviewed and addressed in a number of states.31
III. Effect of Proposed Changes:
The bill imposes license fees on certain fantasy sports contest operators32 who offer fantasy
sports contests for a cash prize to members of the public. Contest operators must pay an initial
25
See ch. 2021-269, s. 11, Laws of Fla., which delineates the transfer of the DPMW to the commission from the DBPR.
26
See Marc Edelman, A Short Treatise on Fantasy Sports and the Law: How America Regulates its New National Pastime,
Journal of Sports & Entertainment Law, Harvard Law School Vol. 3 (Jan. 2012) available at
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1907272 (last visited Jan. 23, 2024).
27
According to the Fantasy Sports Trade Association, which states it represents the interests of 57 million fantasy sports
players, fantasy sports leagues were originally referred to as “rotisserie leagues” with the development of Rotisserie League
Baseball in 1980, by magazine writer/editor Daniel Okrent, who met and played it with friends at a New York City restaurant
La Rotisserie Francaise. See https://thefsga.org/history/ (last visited Jan. 23, 2024).
28
See Fla. AGO 91-03 (Jan. 7, 1991) available at https://www.myfloridalegal.com/ag-opinions/gambling-fantasy-sports-
league (last visited Jan. 23, 2024).
29
A conviction for a second degree misdemeanor may subject the violator to a definite term of imprisonment not exceeding
60 days, and a fine not exceeding $500. See ss. 775.082 and 775.083, F.S.
30
See https://www.floridatrend.com/article/38854/questions-swirl-around-fantasy-sports (last visited Jan. 23, 2024).
31
See State Regulators Take Closer Look At Fantasy Sports Operators (sportshandle.com) (last visited Jan. 23, 2024).
32
SB 1568 (Fantasy Sports Contest Amusement Act) defines the term “contest operator” to mean “a person or entity that
offers fantasy sports contests for a cash prize to members of the public, but does not include a noncommercial contest
operator in this state. The term “noncommercial contest operator” is defined to mean “a natural person who organizes and
conducts a fantasy or simulation sports contest in which contest participants are charged entry fees for the right to participate;
entry fees are collected, maintained, and distributed by the same natural person; the total entry fees collected, maintained, and
BILL: CS/CS/SB 1566 Page 5
license application fee of $500,000 and renewal fees of $250,000 annually. Such fees may not
exceed 10 percent of the difference between the amount of entry fees collected by a contest
operator from the operation of fantasy sports contests in this state, and the amount of cash or
cash equivalents paid to contest participants in this state.
These license fees do not apply to individuals who act as noncommercial contest operators by
organizing and conducting fantasy or simulation sports contests in which:
 Contest participants are charged entry fees for the right to participate;
 Entry fees are collected, maintained, and distributed by the same natural person;
 The total entry fees collected, maintained, and distributed total no more than $1,500 per
season or $10,000 per calendar year; and
 All entry fees are returned to the contest participants in the form of prizes.
The bill provides the commission must require a contest operator applicant to provide written
evidence to the commission of the proposed amount of entry fees and cash or cash equivalents to
be paid to contest participants during the annual license period. Before a license renewal, a
contest operator must:
 Provide written evidence to the commission of the actual entry fees collected and cash or
cash equivalents paid to contest participants during the previous period of licensure; and
 Remit to the commission any difference in a license fee which results from the difference
between the proposed amount of entry fees and cash or cash equivalents paid to contest
participants, and the actual amounts collected and paid during the previous period of
licensure.
Under the bill, fees for state and federal fingerprint processing and retention must be borne by
license applicants; the state cost for fingerprint processing must meet the requirements of
s. 943.053(3)(e), F.S., for records provided to persons or entities other than as specified in that
section. The commission also may charge a $2 handling fee for each set of fingerprints submitted
for a contest operator license.
The bill requires all fees collected by the commission under s. 546.151, F.S., to be deposited into
the Pari-mutuel Wagering Trust Fund.
The bill is effective on the same date that SB 1568 (Fantasy Sports Contest Amusement Act) or
similar legislation) takes effect, if adopted in the same legislative session or any extension, and
becomes law.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
distributed by such natural person do not exceed $1,500 per season or a total of $10,000 per calendar year; and all entry fees
are returned to the contest participants in the form of prizes.” Id.
BILL: CS/CS/SB 1566 Page 6
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds