House Bill 0111
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Florida House of Representatives - 1999 HB 111
By Representative Heyman
1 A bill to be entitled
2 An act relating to the operation of cardrooms;
3 amending s. 849.086, F.S.; revising standards
4 on when cardrooms may be operated and the
5 amount of bets allowable for each round, hand,
6 or game; authorizing facilities to award
7 prizes; redefining the terms "authorized games"
8 and "net proceeds"; abolishing certain
9 admissions taxes; revising the amount of
10 cardroom receipts that must be used to
11 supplement greyhound and jai alai purses;
12 providing an effective date.
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14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Paragraphs (a) and (j) of subsection (2)
17 and subsections (7), (8), and (13) of section 849.086, Florida
18 Statutes, are amended to read:
19 849.086 Cardrooms authorized.--
20 (2) DEFINITIONS.--As used in this section:
21 (a) "Authorized games" means only those games that are
22 described in the most current edition of Hoyle's Rules of
23 Games authorized by s. 849.085(2)(a) and that which are played
24 in a nonbanking manner.
25 (j) "Net proceeds" means the total amount of gross
26 receipts received by a cardroom operator from cardroom
27 operations less direct operating expenses related to cardroom
28 operations, including labor costs, admission taxes only if a
29 separate admission fee is charged for entry to the cardroom
30 facility, gross receipts taxes imposed on cardroom operators
31 by this section, the annual cardroom license fees imposed by
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Florida House of Representatives - 1999 HB 111
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1 this section on each table operated at a cardroom, and
2 reasonable promotional costs excluding officer and director
3 compensation, interest on capital debt, legal fees, real
4 estate taxes, bad debts, contributions or donations, or
5 overhead and depreciation expenses not directly related to the
6 operation of the cardrooms.
7 (7) CONDITIONS FOR OPERATING A CARDROOM.--
8 (a) A cardroom may only be operated at the location
9 specified on the cardroom license issued by the division, and
10 such location may only be the location at which the
11 pari-mutuel permitholder is authorized to conduct pari-mutuel
12 wagering activities pursuant to such permitholder's valid
13 pari-mutuel permit and current license.
14 (b) A cardroom may be operated at the facility only
15 when the facility is authorized to accept wagers on
16 pari-mutuel events during its authorized meet. A cardroom may
17 begin operations within 2 hours prior to the post time of the
18 first pari-mutuel event conducted live at the pari-mutuel
19 facility on which wagers are accepted by the facility and must
20 cease operations by 2 a.m. on the following day within 2 hours
21 after the conclusion of the last pari-mutuel event conducted
22 live at the pari-mutuel facility on which wagers are accepted.
23 (c) A cardroom operator must at all times employ and
24 provide a nonplaying dealer for each table on which authorized
25 card games which traditionally utilize a dealer are conducted
26 at the cardroom. Such dealers may not have any participatory
27 interest in any game other than the dealing of cards and may
28 not have an interest in the outcome of the game. The
29 providing of such dealers by a licensee shall not be construed
30 as constituting the conducting of a banking game by the
31 cardroom operator.
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1 (d) A facility that operates a cardroom may award
2 giveaways or prizes to players who hold combinations of cards
3 specified by the cardroom operator.
4 (e)(d) Each cardroom operator shall conspicuously post
5 upon the premises of the cardroom a notice which contains a
6 copy of the cardroom license; a list of authorized games
7 offered by the cardroom; the wagering limits imposed by the
8 house, if any; any additional house rules regarding operation
9 of the cardroom or the playing of any game; and all costs to
10 players to participate, including any rake by the house. In
11 addition, each cardroom operator shall post at each table a
12 notice of the minimum and maximum bets authorized at such
13 table and the fee for participation in the game conducted.
14 (f)(e) The cardroom facility shall be subject to
15 inspection by the division or any law enforcement agency
16 during the licensee's regular business hours. The inspection
17 will specifically encompass the permitholder internal control
18 procedures approved by the division.
19 (g)(f) A cardroom operator may refuse entry to or
20 refuse to allow to play any person who is objectionable,
21 undesirable, or disruptive, but such refusal shall not be on
22 the basis of race, creed, color, religion, sex, national
23 origin, marital status, physical handicap, or age, except as
24 provided in this section.
25 (8) METHOD OF WAGERS; LIMITATION.--
26 (a) No wagering may be conducted using money or other
27 negotiable currency. Games may only be played utilizing a
28 wagering system whereby all players' money is first converted
29 by the house to tokens or chips which shall be used for
30 wagering only at that specific cardroom.
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1 (b) Each bet The winnings of any player in a single
2 round, hand, or game may not exceed $2 $10 in value. The fee
3 charged by the cardroom for participation in the game shall
4 not be included in the calculation of the limitation on the
5 bet pot size provided in this paragraph.
6 (c) Notwithstanding the limit prescribed in paragraph
7 (b), a facility may conduct a tournament at which there is no
8 limit on the amount of winnings for a single round, hand, or
9 game. Such a tournament may not be conducted by that facility
10 more frequently than quarterly.
11 (13) TAXES AND OTHER PAYMENTS.--
12 (a) Each cardroom operator shall pay a tax to the
13 state of 10 percent of the cardroom operation's monthly gross
14 receipts.
15 (b) An admission tax equal to 15 percent of the
16 admission charge for entrance to the licensee's cardroom
17 facility, or 10 cents, whichever is greater, is imposed on
18 each person entering the cardroom. This admission tax shall
19 apply only if a separate admission fee is charged for entry to
20 the cardroom facility. If a single admission fee is charged
21 which authorizes entry to both or either the pari-mutuel
22 facility and the cardroom facility, the admission tax shall be
23 payable only once and shall be payable pursuant to chapter
24 550. The cardroom licensee shall be responsible for
25 collecting the admission tax. An admission tax is imposed on
26 any free passes or complimentary cards issued to guests by
27 licensees in an amount equal to the tax imposed on the regular
28 and usual admission charge for entrance to the licensee's
29 cardroom facility. A cardroom licensee may issue tax-free
30 passes to its officers, officials, and employees or other
31 persons actually engaged in working at the cardroom, including
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1 accredited press representatives such as reporters and
2 editors, and may also issue tax-free passes to other cardroom
3 licensees for the use of their officers and officials. The
4 licensee shall file with the division a list of all persons to
5 whom tax-free passes are issued.
6 (b)(c) Payment of the admission tax and gross receipts
7 tax imposed by this section shall be paid to the division. The
8 division shall deposit these sums with the Treasurer, one-half
9 being credited to the Pari-mutuel Wagering Trust Fund and
10 one-half being credited to the General Revenue Fund. The
11 cardroom licensee shall remit to the division payment for the
12 admission tax, the gross receipts tax, and the licensee fees.
13 Such payments shall be remitted to the division on the fifth
14 day of each calendar month for taxes and fees imposed for the
15 preceding month's cardroom activities. Licensees shall file a
16 report under oath by the fifth day of each calendar month for
17 all taxes remitted during the preceding calendar month. Such
18 report shall, under oath, indicate the total of all
19 admissions, the cardroom activities for the preceding calendar
20 month, and such other information as is may be prescribed by
21 the division.
22 (c)(d) Each greyhound and jai alai permitholder that
23 which operates a cardroom facility shall utilize at least 10 4
24 percent of such permitholder's cardroom monthly gross receipts
25 to supplement greyhound purses or jai alai prize money,
26 respectively, during the permitholder's next ensuing
27 pari-mutuel meet. Each thoroughbred and harness horse racing
28 permitholder that which operates a cardroom facility shall
29 utilize at least 50 percent of such permitholder's cardroom
30 monthly net proceeds as follows: 47 percent to supplement
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1 purses and 3 percent to supplement breeders' awards during the
2 permitholder's next ensuing racing meet.
3 (d)(e) The failure of any licensee to make payments as
4 prescribed in paragraph (b) (c) is a violation of this
5 section, and the licensee may be subjected by the division to
6 a civil penalty of up to $1,000 for each day the tax payment
7 is not remitted. All penalties imposed and collected shall be
8 deposited in the General Revenue Fund. If a licensee fails to
9 pay penalties imposed by order of the division under this
10 subsection, the division may suspend or revoke the license of
11 the cardroom operator or deny issuance of any further license
12 to the cardroom operator.
13 (e)(f) The cardroom shall be deemed an accessory use
14 to a licensed pari-mutuel operation and, except as provided in
15 chapter 550, a municipality, county, or political subdivision
16 may not assess or collect any additional license tax, sales
17 tax, or excise tax on such cardroom operation.
18 (f)(g) All of the moneys deposited in the Pari-mutuel
19 Wagering Trust Fund, except as set forth in paragraph (g) (h),
20 shall be utilized and distributed in the manner specified in
21 s. 550.135(3) and (4). However, cardroom tax revenues shall
22 be kept separate from pari-mutuel tax revenues and shall not
23 be used for making the disbursement to counties provided in s.
24 550.135(1).
25 (g)(h) One-quarter of the moneys deposited into the
26 Pari-mutuel Wagering Trust Fund pursuant to paragraph (f) (g)
27 shall, by October 1 of each year, be distributed to counties
28 in which the cardrooms are located; however, if two or more
29 pari-mutuel racetracks are located within the same
30 incorporated municipality, the cardroom funds shall be
31 distributed to the municipality. If a pari-mutuel facility is
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1 situated in such a manner that it is located in more than one
2 county, the site of the cardroom facility shall determine the
3 location for purposes of disbursement of tax revenues under
4 this paragraph. The division shall, by September 1 of each
5 year, determine: the amount of taxes deposited into the
6 Pari-mutuel Wagering Trust Fund pursuant to this section from
7 each cardroom licensee; the location by county of each
8 cardroom; whether the cardroom is located in the
9 unincorporated area of the county or within an incorporated
10 municipality; and, the total amount to be distributed to each
11 eligible county and municipality.
12 Section 2. This act shall take effect July 1, 1999.
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15 SENATE SUMMARY
16 Authorizes pari-mutuel facilities to operate cardrooms at
any time during which wagers are accepted by those
17 facilities, regardless of whether they are conducting
live pari-mutuel events. Decreases the maximum amount a
18 player may bet in any one round, hand, or game from $10
to $2, except that a facility may conduct quarterly
19 tournaments at which there is no limit. Authorizes
facilities to award prizes to players. Abolishes the tax
20 on admission to cardrooms. Increases, to 10 percent of
the monthly gross receipts, the amount of cardroom
21 proceeds which a permitholder must use to supplement
greyhound or jai alai purses. Redefines the games that
22 are eligible for play in a cardroom.
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