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 Committee Code Not Found
BILL: CS/SB 7076
INTRODUCER: Appropriations Committee and Regulated Industries Committee
SUBJECT: Gaming Enforcement
DATE: April 19, 2021 REVISED:
ANALYST STAFF DIRECTOR REFERENCE ACTION
Kraemer Imhof RI Submitted as Comm. Bill/Fav
1. Davis Sadberry AP Fav/CS
Please see Section IX. for Additional Information:
COMMITTEE SUBSTITUTE - Substantial Changes
I. Summary:
CS/SB 7076 establishes additional enforcement measures to address violations of gambling laws
and the conduct of unauthorized gaming in the state, including the creation of the Florida
Gaming Control Commission, and granting additional investigatory and prosecutorial authority
to the Office of Statewide Prosecution in the Department of Legal Affairs.
CS/SB 7078, relating to Public Records and Public Meeting Exemptions/Florida Gaming Control
Commission, is linked to this bill.
The bill will have an indeterminate fiscal impact on state government. See Section V, Fiscal
Impact Statement.
Except as otherwise expressly provided in the bill, the bill takes effect July 1, 2021.
BILL: CS/SB 7076 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
However, the following gaming activities are authorized by law and regulated by the state:
Pari-mutuel5 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 and
Cardrooms8 at certain pari-mutuel facilities.9
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.10
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.11 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.12
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
“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.
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.
8
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.”
9
The Department of Business and Professional Regulation (DBPR) has issued licenses to permitholders with 2021-2022
Operating Licenses to operate 27 cardrooms. See http://www.myfloridalicense.com/DBPR/pari-mutuel-
wagering/permitholder-operating-licenses-2021-2022/ (last visited Apr. 7, 2021).
10
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).
11
The pari-mutuel pools that were authorized by law on the effective date of the Florida Constitution, as revised in 1968,
include horseracing, greyhound racing, and jai alai games. The revision was ratified by the electorate on November 5, 1968.
12
The Department of the Lottery is authorized by s. 15, Art. X, Florida 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: CS/SB 7076 Page 3
Chapter 849, F.S., also authorizes, under specific and limited conditions, the conduct of penny-
ante games,13 bingo,14 charitable drawings,15 game promotions (sweepstakes),16 and bowling
tournaments.17 The Family Amusement Games Act was enacted in 2015 and authorizes skill-
based amusement games and machines at specified locations.18
Regulation of Pari-mutuel Wagering
The Division of Pari-mutuel Wagering (division) in the Department of Business and Professional
Regulation (DBPR) regulates pari-mutuel wagering. The division 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. According to the division, there were eight license suspensions, and $19,075 in fines
assessed for violations of all pari-mutuel statutes and administrative rules in Fiscal Year 2019-
2020.19
Ten permitholders were not issued operating licenses for Fiscal Year 2020-2021: two greyhound
permitholders,20 two jai alai permitholders,21 one limited thoroughbred permitholder,22 and five
quarter horse permitholders.23
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 division 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.
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.
17
See s. 849.141, F.S.
18
See s. 546.10, F.S.
19
See the 89th Annual Report for Fiscal Year 2019-2020 issued by the division at: AnnualReport-2019-2020--89th--
20210224.pdf at page 5 (equivalent to page 3 of the printed Annual Report) (last visited Apr. 13, 2021).
20
Jefferson County Kennel Club (Monticello) and North American Racing Association (Key West).
21
Gadsden Jai-alai (Chattahoochee) and Tampa Jai Alai.
22
Under s. 550.3345, F.S., during Fiscal Year 2010-2011 only, holders of quarter horse racing permits were allowed to
convert their permits to a thoroughbred racing permit, conditioned upon specific use of racing revenues for enhancement of
thoroughbred purses and awards, promotion of the thoroughbred horse industry, and the care of retired thoroughbred horses.
Two conversions occurred, Gulfstream Park Thoroughbred After Racing Program (GPTARP) (Hallandale, Broward County),
which was licensed to operate in 2019-2020, and Ocala Thoroughbred Racing (Marion County), which was not licensed to
operate.
23
ELH Jefferson (Jefferson County), DeBary Real Estate Holdings (Volusia County), North Florida Racing (Jacksonville),
Pompano Park Racing (Pompano Beach), and St. Johns Racing (St. Johns County). See
http://www.myfloridalicense.com/dbpr/pmw/documents/PermitholdersList_2020-2021.pdf (last visited Apr. 13, 2021).
BILL: CS/SB 7076 Page 4
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
division 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.24
After issuance of the permit and a ratification election, the division 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.25
Pursuant to s. 550.054(9)(b), F.S., the division 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 division, and may impose a civil penalty against the
permitholder or license up to $1,000 for each offense.
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, 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 551.104(3), 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 facility where pari-mutuel wagering is authorized to be
conducted by the permitholder;
Limit slot machine gaming to 18 hours per day, Monday through Friday, and 24 hours on
Saturdays and Sundays; and
Prohibit the service of complimentary or reduced-cost alcoholic beverages to persons playing
a slot machine, among other prohibitions.
24
See s. 550.054(2), F.S.
25
See s. 550.054(9)(a), F.S.
BILL: CS/SB 7076 Page 5
Cardrooms
Section 849.086, F.S., authorizes cardrooms at certain pari-mutuel facilities.26 In Fiscal Year
2021-2022, 27 cardrooms are licensed to operate.27 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.28 A
cardroom may be open 18 hours per day on Monday through Friday, and 24 hours per day on
Saturday and Sunday.29
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.30 Such games must be played in a non-banking manner,31 where
the participants play against each other, instead of against the house (cardroom). At least four
percent of the gross cardroom receipts of greyhound racing permitholders and jai alai
permitholders conducting live races or games must supplement greyhound purses, and 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.32
Gaming Compacts with Seminole Tribe of Florida
In 2010, a gaming compact (2010 Compact) between the Seminole Tribe of Florida (Seminole
Tribe) and the State of Florida (state) was ratified by the Legislature.33 The 2010 Compact
authorizes the Seminole Tribe to conduct certain Class III gaming for a 20-year period, and to
offer banked card games for five years, through July 31, 2015. The 2010 Compact provides that
any expanded gaming (beyond what is specifically acknowledged) allowed in the state relieves
the Seminole Tribe of its obligations to make substantial revenue sharing payments.
Pursuant to s. 285.710(13), F.S., it is not a crime for a person to participate in raffles, drawings,
slot machine gaming, or banked card games (e.g., blackjack or baccarat) at a tribal facility
operating under the 2010 Compact. The 2010 Compact provides for revenue sharing in
consideration for the exclusive authority granted to the Seminole Tribe to offer banked card
games on tribal lands and to offer slot machine gaming outside Miami-Dade and Broward
counties.
26
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 charges a fee for
participation by the operator of such facility.
27
See http://www.myfloridalicense.com/DBPR/pari-mutuel-wagering/permitholder-operating-licenses-2021-2022/ (last
visited Apr. 13, 2021).
28
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.”
29
Section 849.086(7)(b), F.S.
30
See s. 849.086(2)(a), F.S.
31
Id.
32
See s. 849.086(13)(d), F.S.
33
Ch. 2010-29, Laws of Fla.
BILL: CS/SB 7076 Page 6
Section 285.710(9), F.S., provides that money received by the state from a gaming compact is to
be deposited into the General Revenue Fund and provides for the distribution of three percent of
the amount paid by the Seminole Tribe to the specified local governments. The percentage of the
local share distributed to the specified counties and municipalities is based on the net win per
facility in each county and municipality.
The Seminole Tribe notified the state in May 2019, that it was discontinuing revenue share
payments in accordance with the 2010 Compact, based on the results of federal litigation. The
2010 Compact remains in effect through July 31, 2030.
As designated in s. 285.710, F.S., the division of the DBPR carries out the state’s oversight
responsibilities under the 2010 Compact.
Class III Gaming under the Indian Gaming Regulatory Act
Gambling on Indian lands is regulated by the Indian Gaming Regulatory Act of 1988 (IGRA).34
The 2010 Compact authorizes the Seminole Tribe to conduct specified Class III gaming
activities at its seven tribal facilities in Florida.35
Under IGRA, gaming is categorized in three classes:
Class I gaming means social games for minimal value or traditional forms of Indian gaming
engaged in by individuals for tribal ceremonies or celebrations;
Class II gaming includes bingo and pull-tabs, lotto, punch boards, tip jars, instant bingo,
other games similar to bingo, and certain non-banked card games if not explicitly prohibited
by the laws of the state and if played in conformity with state law; and
Class III gaming includes all forms of gaming that are not Class I or Class II gaming, such
as banked card games (such as baccarat, chemin de fer, and blackjack (21), casino games
such as craps and roulette, electronic or electromechanical facsimiles of games of chance,
slot machines, and pari-mutuel wagering.36
Amendment 3 to the State Constitution (Voter Control of Gambling)
During the 2018 General Election, the electorate approved an initiative constitutional amendment
(Amendment 3, Voter Control of Gambling in Florida). The amendment is codified in the State
Constitution as article X, section 30).