Florida Senate - 2007                      COMMITTEE AMENDMENT
    Bill No. SB 752
                        Barcode 250096
                            CHAMBER ACTION
              Senate                               House
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 1           Comm: RCS             .                    
       04/09/2007 05:31 PM         .                    
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11  The Committee on Regulated Industries (Geller) recommended the
12  following amendment:
13  
14         Senate Amendment (with title amendment) 
15         Delete everything after the enacting clause
16  
17  and insert:  
18         Section 1.  Subsections (2),(3),(4),(7),(8), and
19  paragraph (c) of subsection (12) of section 849.086, Florida
20  Statutes, are amended to read:
21         849.086  Cardrooms authorized.--
22         (2)  DEFINITIONS.--As used in this section:
23         (a)  "Authorized game" means a game or series of games
24  of poker which are played in a nonbanking manner.
25         (b)  "Authorized game facilitated by electronic
26  equipment" means an authorized game that:
27         1.  Is an electronic poker table that allows players to
28  play a game electronically without a human dealer and that
29  electronically shuffles, deals, pays pots, and otherwise
30  conducts an authorized game; and
31         2.  Uses gaming equipment that is certified by an
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    11:45 AM   04/06/07                             s0752.ri31.001

Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 independent testing laboratory approved by the division as a 2 mathematically random process with equal probability for each 3 card. 4 (c)(b) "Banking game" means a game in which the house 5 is a participant in the game, taking on players, paying 6 winners, and collecting from losers or in which the cardroom 7 establishes a bank against which participants play. 8 (d)(c) "Cardroom" means a facility where authorized 9 card games are played for money or anything of value and to 10 which the public is invited to participate in such games and 11 charged a fee for participation by the operator of such 12 facility. Authorized games and cardrooms do not constitute 13 casino gaming operations. 14 (e)(d) "Cardroom management company" means any 15 individual not an employee of the cardroom operator, any 16 proprietorship, partnership, corporation, or other entity that 17 enters into an agreement with a cardroom operator to manage, 18 operate, or otherwise control the daily operation of a 19 cardroom. 20 (f)(e) "Cardroom distributor" means any business that 21 distributes cardroom paraphernalia such as card tables, 22 betting chips, chip holders, drop boxes, banking supplies, 23 playing cards, card shufflers, and other associated equipment 24 to authorized cardrooms. 25 (g)(f) "Cardroom operator" means a licensed 26 pari-mutuel permitholder which holds a valid permit and 27 license issued by the division pursuant to chapter 550 and 28 which also holds a valid cardroom license issued by the 29 division pursuant to this section which authorizes such person 30 to operate a cardroom and to conduct authorized games in such 31 cardroom. 2 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 (h)(g) "Division" means the Division of Pari-mutuel 2 Wagering of the Department of Business and Professional 3 Regulation. 4 (i)(h) "Gross receipts" means the total amount of 5 money received by a cardroom from any person for participation 6 in authorized games. 7 (j)(i) "House" means the cardroom operator and all 8 employees of the cardroom operator. 9 (k)(j) "Net proceeds" means the total amount of gross 10 receipts received by a cardroom operator from cardroom 11 operations less direct operating expenses related to cardroom 12 operations, including labor costs, admission taxes only if a 13 separate admission fee is charged for entry to the cardroom 14 facility, gross receipts taxes imposed on cardroom operators 15 by this section, the annual cardroom license fees imposed by 16 this section on each table operated at a cardroom, and 17 reasonable promotional costs excluding officer and director 18 compensation, interest on capital debt, legal fees, real 19 estate taxes, bad debts, contributions or donations, or 20 overhead and depreciation expenses not directly related to the 21 operation of the cardrooms. 22 (l)(k) "Rake" means a set fee or percentage of the pot 23 assessed by a cardroom operator for providing the services of 24 a dealer, table, or location for playing the authorized game. 25 (m) "Tournament" means a series of games with more 26 than one betting round involving one or more tables, where the 27 winners or others receive a prize or cash award. 28 (3) CARDROOM AUTHORIZED.--Notwithstanding any other 29 provision of law, it is not a crime for a person to 30 participate in an authorized game at a licensed cardroom or to 31 operate a cardroom described in this section if such game and 3 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 cardroom operation are conducted strictly in accordance with 2 the provisions of this section. This section does not 3 authorize video poker games or any other game or machine: 4 (a) That is not otherwise authorized under the law of 5 this state; or 6 (b) As authorized in a licensed slot machine facility. 7 (4) AUTHORITY OF DIVISION.--The Division of 8 Pari-mutuel Wagering of the Department of Business and 9 Professional Regulation shall administer this section and 10 regulate the operation of cardrooms under this section and the 11 rules adopted pursuant thereto, and may is hereby authorized 12 to: 13 (a) Adopt rules, including, but not limited to: the 14 issuance of cardroom and employee licenses for cardroom 15 operations; the operation of a cardroom; the procedures and 16 operation of authorized games facilitated by electronic 17 equipment; recordkeeping and reporting requirements; and the 18 collection of all fees and taxes imposed by this section. 19 (b) Conduct investigations and monitor the operation 20 of cardrooms and the playing of authorized games therein. 21 (c) Review the books, accounts, and records of any 22 current or former cardroom operator. 23 (d) Suspend or revoke any license or permit, after 24 hearing, for any violation of the provisions of this section 25 or the administrative rules adopted pursuant thereto. 26 (e) Take testimony, issue summons and subpoenas for 27 any witness, and issue subpoenas duces tecum in connection 28 with any matter within its jurisdiction. 29 (f) Monitor and ensure the proper collection of taxes 30 and fees imposed by this section. Permitholder internal 31 controls are mandated to ensure no compromise of state funds. 4 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 To that end, a roaming division auditor will monitor and 2 verify the cash flow and accounting of cardroom revenue for 3 any given operating day. 4 (g) Approve the independent testing laboratories that 5 are authorized to certify the gaming equipment in authorized 6 games facilitated by electronic equipment as a mathematically 7 random process with equal probability for each card. 8 (7) CONDITIONS FOR OPERATING A CARDROOM.-- 9 (a) A cardroom may be operated only at the location 10 specified on the cardroom license issued by the division, and 11 such location may only be the location at which the 12 pari-mutuel permitholder is authorized to conduct pari-mutuel 13 wagering activities pursuant to such permitholder's valid 14 pari-mutuel permit or as otherwise authorized by law. 15 (b) A cardroom may be operated at the facility between 16 the hours of 10 a.m. and 2 a.m. only on days when the facility 17 is authorized to accept wagers on pari-mutuel events, except 18 that counties may prescribe, by a majority vote of the county 19 commissioners in the county where the facility is located, 20 additional uniform hours of operation during its authorized 21 meet. A cardroom may operate between the hours of 12 noon and 22 12 midnight on any day a pari-mutuel event is conducted live 23 as a part of its authorized meet. However, a permitholder who 24 holds a valid cardroom license may operate a cardroom between 25 the hours of 12 noon and 12 midnight on any day that live 26 racing of the same class of permit is occurring within 35 27 miles of its facility if no other holder of that same class of 28 permit within 35 miles is operating a cardroom at such time 29 and if all holders of the same class of permit within the 30 35-mile area have given their permission in writing to the 31 permitholder to operate the cardroom during the designated 5 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 period. Application to operate a cardroom under this paragraph 2 must be made to the division as part of the annual license 3 application. 4 (c) A cardroom operator must at all times employ and 5 provide a nonplaying dealer,except for authorized games 6 facilitated by electronic gaming equipment, for each table on 7 that which authorized card games which traditionally utilize a 8 dealer are conducted at the cardroom. Such dealers may not 9 have any participatory interest in any game other than the 10 dealing of cards and may not have an interest in the outcome 11 of the game. The providing of such dealers by a licensee shall 12 not be construed as constituting the conducting of a banking 13 game by the cardroom operator. 14 (d) A cardroom operator may award giveaways, jackpots, 15 and prizes to a player or players who hold certain 16 combinations of cards specified by the cardroom operator. 17 (e)(d) Each cardroom operator shall conspicuously post 18 upon the premises of the cardroom a notice which contains a 19 copy of the cardroom license; a list of authorized games 20 offered by the cardroom; the wagering limits imposed by the 21 house, if any; any additional house rules regarding operation 22 of the cardroom or the playing of any game; and all costs to 23 players to participate, including any rake by the house. In 24 addition, each cardroom operator shall post at each table a 25 notice of the minimum and maximum bets authorized at such 26 table and the fee for participation in the game conducted. 27 (f)(e) The cardroom facility shall be subject to 28 inspection by the division or any law enforcement agency 29 during the licensee's regular business hours. The inspection 30 will specifically encompass the permitholder internal control 31 procedures approved by the division. 6 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 (g)(f) A cardroom operator may refuse entry to or 2 refuse to allow to play any person who is objectionable, 3 undesirable, or disruptive, but such refusal shall not be on 4 the basis of race, creed, color, religion, sex, national 5 origin, marital status, physical handicap, or age, except as 6 provided in this section. 7 (8) METHOD OF WAGERS; LIMITATION.-- 8 (a) No wagering may be conducted using money or other 9 negotiable currency. Games may only be played using utilizing 10 a wagering system whereby all players' money is first 11 converted by the house to tokens or chips which shall be used 12 for wagering only at that specific cardroom. 13 (b) The cardroom operator may limit the amount wagered 14 in any game or series of games, but the maximum bet may not 15 exceed $10 $2 in value. There may not be more than three 16 raises in any round of betting. The fee charged by the 17 cardroom for participation in the game shall not be included 18 in the calculation of the limitation on the bet amount 19 provided in this paragraph. 20 (c) A tournament shall consist of a series of games. 21 The entry fee for a tournament, including any re-buys, may not 22 exceed the maximum amount that could be wagered by a 23 participant in 10 like-kind, nontournament games under 24 paragraph (b). Tournaments must be played only with tournament 25 chips that are provided to all participants in exchange for an 26 entry fee and any subsequent re-buys. All players must receive 27 an equal number of tournament chips for their entry fee. 28 Tournament chips have no cash value and represent tournament 29 points only. There is no limitation on the number of 30 tournament chips that may be used for a bet except as 31 otherwise determined by the cardroom operator. Tournament 7 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 chips may never be redeemed for cash or for any other thing of 2 value. The distribution of prizes and cash awards is 3 determined by the cardroom operator before entry fees are 4 accepted. 5 (d) For purposes of tournament play only, the term 6 "gross receipts for the tournament" means the total amount 7 received by the cardroom operator for all entry fees, player 8 re-buys, and fees for participation in the tournament less the 9 total amount paid to the winners or others as prizes. 10 (12) PROHIBITED ACTIVITIES.-- 11 (c) No electronic or mechanical devices, except 12 mechanical card shufflers or certified electronic gaming 13 equipment facilitating authorized games, may be used to 14 conduct any authorized game in a cardroom. 15 Section 2. This act shall take effect July 1, 2007. 16 17 18 ================ T I T L E A M E N D M E N T =============== 19 And the title is amended as follows: 20 Delete everything before the enacting clause 21 22 and insert: 23 A bill to be entitled 24 An act relating to cardrooms; amending s. 25 849.086, F.S.; defining the term "authorized 26 game facilitated by electronic equipment"; 27 defining the term "tournament"; providing that 28 a provision making certain activities 29 concerning games a crime does not authorize 30 certain games or machines; authorizing 31 rulemaking by the Division of Pari-mutuel 8 11:45 AM 04/06/07 s0752.ri31.001
Florida Senate - 2007 COMMITTEE AMENDMENT Bill No. SB 752 Barcode 250096 1 Wagering of the Department of Business and 2 Professional Regulation concerning authorized 3 games facilitated by electronic equipment; 4 authorizing the division to approve 5 laboratories that may certify that gaming 6 equipment in authorized games facilitated by 7 electronic equipment meets specified criteria; 8 revising the period during which a cardroom may 9 operate; clarifying awards that a cardroom may 10 give to certain players; authorizing 11 tournaments; providing that tournaments must be 12 played only with tournament chips; requiring 13 that all players receive an equal number of 14 tournament chips for the entry fee; specifying 15 that tournament chips have no cash value and 16 represent tournament points only; providing 17 that tournament chips may not be redeemed for 18 cash or any other thing of value; providing 19 that the distribution of prizes and cash awards 20 is determined by the cardroom operator before 21 entry fees are accepted; providing that only 22 certain electronic equipment may be used to 23 conduct an authorized game in a cardroom; 24 providing an effective date. 25 26 27 28 29 30 31 9 11:45 AM 04/06/07 s0752.ri31.001