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A bill to be entitled

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An act relating to cardrooms; amending s. 849.086, F.S.;

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providing definitions; authorizing cardroom operators to

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host charity/celebrity poker tournaments and televised

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high-stakes poker tournaments at certain pari-mutuel

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facilities; providing limitations; authorizing the

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Division of Pari-mutuel Wagering of the Department of

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Business and Professional Regulation to adopt rules

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governing the operation of tournaments; providing an

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effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsections (2), (4), and (7) and paragraph (h)

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of present subsection (13) of section 849.086, Florida Statutes,

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are amended, present subsections (9) through (17) of that section

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are redesignated as subsections (10) through (18), respectively,

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and a new subsection (9) is added to that section, to read:

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     849.086  Cardrooms authorized.--

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     (2)  DEFINITIONS.--As used in this section:

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     (a)  "Authorized game" means a game or series of games of

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poker or dominoes which are played in a nonbanking manner.

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     (b)  "Banking game" means a game in which the house is a

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participant in the game, taking on players, paying winners, and

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collecting from losers or in which the cardroom establishes a

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bank against which participants play.

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     (c)  "Cardroom" means a facility where authorized games are

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played for money or anything of value and to which the public is

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invited to participate in such games and charged a fee for

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participation by the operator of such facility. Authorized games

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and cardrooms do not constitute casino gaming operations.

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     (d)  "Cardroom management company" means any individual not

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an employee of the cardroom operator, any proprietorship,

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partnership, corporation, or other entity that enters into an

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agreement with a cardroom operator to manage, operate, or

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otherwise control the daily operation of a cardroom.

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     (e)  "Cardroom distributor" means any business that

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distributes cardroom paraphernalia such as card tables, betting

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chips, chip holders, dominoes, dominoes tables, drop boxes,

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banking supplies, playing cards, card shufflers, and other

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associated equipment to authorized cardrooms.

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     (f)  "Cardroom operator" means a licensed pari-mutuel

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permitholder which holds a valid permit and license issued by the

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division pursuant to chapter 550 and which also holds a valid

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cardroom license issued by the division pursuant to this section

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which authorizes such person to operate a cardroom and to conduct

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authorized games in such cardroom.

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     (g) "Charity/celebrity poker tournament" means a game of

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poker which is played without limits on the amount wagered in any

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game or series of games or without limits on the rounds of

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betting established in this section if a minimum of 70 percent of

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the net proceeds from each poker tournament is donated to a

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charitable organization organized pursuant to s. 501(c)(3) of the

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Internal Revenue Code.

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     (h)(g) "Division" means the Division of Pari-mutuel

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Wagering of the Department of Business and Professional

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Regulation.

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     (i)(h) "Dominoes" means a game of dominoes typically played

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with a set of 28 flat rectangular blocks, called "bones," which

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are marked on one side and divided into two equal parts, with

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zero to six dots, called "pips," in each part. The term also

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includes larger sets of blocks that contain a correspondingly

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higher number of pips. The term also means the set of blocks used

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to play the game.

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     (j)(i) "Gross receipts" means the total amount of money

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received by a cardroom from any person for participation in

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authorized games.

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     (k) "Televised high-stakes poker tournament" means a game

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of poker which is played without limits on the amount wagered in

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any game or series of games or without limits on the rounds of

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betting established in this section.

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     (l)(j) "House" means the cardroom operator and all

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employees of the cardroom operator.

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     (m)(k) "Net proceeds" means the total amount of gross

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receipts received by a cardroom operator from cardroom operations

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less direct operating expenses related to cardroom operations,

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including labor costs, admission taxes only if a separate

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admission fee is charged for entry to the cardroom facility,

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gross receipts taxes imposed on cardroom operators by this

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section, the annual cardroom license fees imposed by this section

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on each table operated at a cardroom, and reasonable promotional

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costs excluding officer and director compensation, interest on

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capital debt, legal fees, real estate taxes, bad debts,

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contributions or donations, or overhead and depreciation expenses

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not directly related to the operation of the cardrooms.

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     (n)(l) "Rake" means a set fee or percentage of the pot

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assessed by a cardroom operator for providing the services of a

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dealer, table, or location for playing the authorized game.

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     (o)(m) "Tournament" means a series of games that have more

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than one betting round involving one or more tables and where the

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winners or others receive a prize or cash award.

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     (4)  AUTHORITY OF DIVISION.--The Division of Pari-mutuel

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Wagering of the Department of Business and Professional

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Regulation shall administer this section and regulate the

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operation of cardrooms under this section and the rules adopted

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pursuant thereto, and is hereby authorized to:

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     (a)1. Adopt rules, including, but not limited to: the

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issuance of cardroom and employee licenses for cardroom

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operations; the operation of a cardroom; recordkeeping and

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reporting requirements; and the collection of all fees and taxes

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imposed by this section.

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     2. Adopt rules for the operation of high-stakes poker

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tournaments and charity/celebrity poker tournaments, including,

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but not limited to, the amount of betting units and payout

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scales.

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     (b)  Conduct investigations and monitor the operation of

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cardrooms and the playing of authorized games therein.

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     (c)  Review the books, accounts, and records of any current

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or former cardroom operator.

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     (d)  Suspend or revoke any license or permit, after hearing,

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for any violation of the provisions of this section or the

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administrative rules adopted pursuant thereto.

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     (e)  Take testimony, issue summons and subpoenas for any

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witness, and issue subpoenas duces tecum in connection with any

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matter within its jurisdiction.

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     (f)  Monitor and ensure the proper collection of taxes and

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fees imposed by this section. Permitholder internal controls are

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mandated to ensure no compromise of state funds. To that end, a

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roaming division auditor shall will monitor and verify the cash

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flow and accounting of cardroom revenue for any given operating

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day.

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     (7)  CONDITIONS FOR OPERATING A CARDROOM.--

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     (a)  A cardroom may be operated only at the location

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specified on the cardroom license issued by the division, and

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such location may only be the location at which the pari-mutuel

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permitholder is authorized to conduct pari-mutuel wagering

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activities pursuant to such permitholder's valid pari-mutuel

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permit or as otherwise authorized by law.

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     (b) Any cardroom operator horserace, greyhound race, or jai

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alai permitholder licensed under this section may operate a

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cardroom at the pari-mutuel facility daily throughout the year,

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on any day for a cumulative amount of 12 hours if the

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permitholder meets the requirements under paragraph (5)(b). The

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cardroom may be open a cumulative amount of 18 hours per day on

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Monday through Friday and 24 hours per day on Saturday and Sunday

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and on the holidays specified in s. 110.117(1).

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     (c)  A cardroom operator must at all times employ and

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provide a nonplaying dealer for each table on which authorized

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card games which traditionally use a dealer are conducted at the

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cardroom. Such dealers may not have a participatory interest in

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any game other than the dealing of cards and may not have an

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interest in the outcome of the game. The providing of such

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dealers by a licensee does not constitute the conducting of a

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banking game by the cardroom operator.

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     (d)  A cardroom operator may award giveaways, jackpots, and

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prizes to a player who holds certain combinations of cards

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specified by the cardroom operator.

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     (e)  Each cardroom operator shall conspicuously post upon

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the premises of the cardroom a notice which contains a copy of

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the cardroom license; a list of authorized games offered by the

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cardroom; the wagering limits imposed by the house, if any; any

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additional house rules regarding operation of the cardroom or the

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playing of any game; and all costs to players to participate,

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including any rake by the house. In addition, each cardroom

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operator shall post at each table a notice of the minimum and

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maximum bets authorized at such table and the fee for

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participation in the game conducted.

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     (f)  The cardroom facility is subject to inspection by the

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division or any law enforcement agency during the licensee's

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regular business hours. The inspection must specifically include

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the permitholder internal control procedures approved by the

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division.

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     (g)  A cardroom operator may refuse entry to or refuse to

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allow any person who is objectionable, undesirable, or disruptive

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to play, but such refusal may not be on the basis of race, creed,

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color, religion, gender, national origin, marital status,

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physical handicap, or age, except as provided in this section.

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     (9) CHARITY/CELEBRITY POKER TOURNAMENTS AND TELEVISED HIGH-

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STAKES POKER TOURNAMENTS.--

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     (a) A cardroom operator may host a charity/celebrity poker

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tournament six times each year for 8 consecutive calendar days at

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a pari-mutuel facility that is authorized to operate cardrooms

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during the hours that the pari-mutuel facility is open to conduct

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business. Such a tournament may be conducted only once in any 2-

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month period. Any payments made to charitable organizations

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pursuant to this part shall not be calculated as gross receipts

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for purposes of tax payments to the state under paragraph

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(14)(a).

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     (b) A cardroom operator may host a televised high-stakes

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poker tournament twice each year for 8 consecutive calendar days

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at a pari-mutuel facility that is authorized to operate cardrooms

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during the hours that the pari-mutuel facility is open to conduct

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business. Such a tournament may be conducted only once in any 6-

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month period.

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     (c) A charity/celebrity poker tournament and televised

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high-stakes poker tournament shall consist of a series of games

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played at multiple tables. Tournaments shall be played only with

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tournament chips that shall be provided to all participants in

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exchange for an entry fee and any subsequent rebuys. All players

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shall receive an equal number of tournament chips for their entry

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fee. Tournament chips shall have no cash value and shall

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represent tournament points only. There shall be no limitation on

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the number of tournament chips that can be used for a bet except

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as determined by the cardroom operator. Tournament chips may

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never be redeemed for cash or any other thing of value. The entry

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fee for a tournament shall be decided by the cardroom operator,

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but the entry fee may not exceed $10,000 in value and subsequent

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rebuys may not exceed 50 percent of the required entry fee. The

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distribution of prizes and cash awards shall be determined by the

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cardroom operator before entry fees are accepted. For purposes of

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tournament play only, the term "gross receipts" for the

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tournament means the total amount received by the cardroom

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operator for all entry fees, player rebuys, and fees for

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participation in tournaments, less the total amount paid to the

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winners or others as prizes. The total number of players that may

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enter the tournament shall be decided by the cardroom operator,

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but the total number of players may not exceed 1,000.

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     (14)(13) TAXES AND OTHER PAYMENTS.--

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     (h)  One-quarter of the moneys deposited into the Pari-

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mutuel Wagering Trust Fund pursuant to paragraph (g) shall, by

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October 1 of each year, be distributed to the local government

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that approved the cardroom under subsection (17) (16); however,

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if two or more pari-mutuel racetracks are located within the same

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incorporated municipality, the cardroom funds shall be

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distributed to the municipality. If a pari-mutuel facility is

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situated in such a manner that it is located in more than one

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county, the site of the cardroom facility shall determine the

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location for purposes of disbursement of tax revenues under this

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paragraph. The division shall, by September 1 of each year,

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determine: the amount of taxes deposited into the Pari-mutuel

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Wagering Trust Fund pursuant to this section from each cardroom

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licensee; the location by county of each cardroom; whether the

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cardroom is located in the unincorporated area of the county or

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within an incorporated municipality; and, the total amount to be

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distributed to each eligible county and municipality.

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     Section 2.  This act shall take effect July 1, 2008.