Florida Senate - 2025                              CS for SB 408
       
       
        
       By the Committee on Regulated Industries; and Senator Burgess
       
       
       
       
       
       580-03183-25                                           2025408c1
    1                        A bill to be entitled                      
    2         An act relating to thoroughbred permitholders;
    3         amending s. 550.01215, F.S.; requiring certain
    4         thoroughbred permitholders to conduct a full schedule
    5         of live racing until such permitholders provide notice
    6         to the Florida Gaming Control Commission with certain
    7         information; providing that such notice is not valid
    8         unless it is delivered to the commission on or after a
    9         specified date; conforming provisions to changes made
   10         by the act; amending s. 550.0951, F.S.; revising the
   11         criteria for certain thoroughbred permitholders to pay
   12         the tax on handle for intertrack wagering; amending s.
   13         551.104, F.S.; conforming provisions to changes made
   14         by the act; amending s. 849.086, F.S.; deleting
   15         certain criteria a thoroughbred permitholder must meet
   16         as part of its pari-mutuel annual license application
   17         in order to have its cardroom license renewed;
   18         conforming provisions to changes made by the act;
   19         reenacting ss. 550.3551(3) and 550.615(2), F.S.,
   20         relating to the transmission of racing and jai alai
   21         information and commingling of pari-mutuel pools and
   22         intertrack wagering, respectively, to incorporate the
   23         amendment made to s. 550.01215, F.S., in references
   24         thereto; reenacting ss. 550.09515(5), 550.09511(3)(a),
   25         and 550.6305(9)(a), F.S., relating to thoroughbred
   26         horse taxes and abandoned interest in a permit for
   27         nonpayment of taxes; jai alai taxes and abandoned
   28         interest in a permit for nonpayment of taxes; and
   29         intertrack wagering, guest track payments, and
   30         accounting rules, respectively, to incorporate the
   31         amendment made to s. 550.0951, F.S., in references
   32         thereto; providing an effective date.
   33          
   34  Be It Enacted by the Legislature of the State of Florida:
   35  
   36         Section 1. Paragraph (b) of subsection (1) of section
   37  550.01215, Florida Statutes, is amended to read:
   38         550.01215 License application; periods of operation;
   39  license fees; bond.—
   40         (1) Each permitholder shall annually, during the period
   41  between January 15 and February 4, file in writing with the
   42  commission its application for an operating license for a pari
   43  mutuel facility for the conduct of pari-mutuel wagering during
   44  the next state fiscal year, including intertrack and simulcast
   45  race wagering. Each application for live performances must
   46  specify the number, dates, and starting times of all live
   47  performances that the permitholder intends to conduct. It must
   48  also specify which performances will be conducted as charity or
   49  scholarship performances.
   50         (b)1. A greyhound permitholder may not conduct live racing.
   51  A jai alai permitholder, harness horse racing permitholder, or
   52  quarter horse racing permitholder may elect not to conduct live
   53  racing or games. A thoroughbred permitholder must conduct live
   54  racing pursuant to subparagraph 2. A greyhound permitholder, jai
   55  alai permitholder, harness horse racing permitholder, or quarter
   56  horse racing permitholder, or thoroughbred permitholder pursuant
   57  to subparagraph 2. that does not conduct live racing or games
   58  retains its permit; is a pari-mutuel facility as defined in s.
   59  550.002(23); if such permitholder has been issued a slot machine
   60  license, the facility where such permit is located remains an
   61  eligible facility as defined in s. 551.102(4), continues to be
   62  eligible for a slot machine license pursuant to s. 551.104(3),
   63  and is exempt from ss. 551.104(10) and 551.114(2) ss.
   64  551.104(4)(c) and (10) and 551.114(2); is eligible, but not
   65  required, to be a guest track and, if the permitholder is a
   66  harness horse racing permitholder or a thoroughbred permitholder
   67  pursuant to subparagraph 2., to be a host track for purposes of
   68  intertrack wagering and simulcasting pursuant to ss. 550.3551,
   69  550.615, 550.625, and 550.6305; and remains eligible for a
   70  cardroom license.
   71         2. A thoroughbred permitholder who operates a slot machine
   72  facility or cardroom shall conduct a full schedule of live
   73  racing until such permitholder notifies the commission that it
   74  will no longer conduct live racing. Notice under this
   75  subparagraph is not valid unless it is delivered to the
   76  commission on or after July 1, 2028, and contains the date on
   77  which the permitholder will no longer conduct live racing, which
   78  may not be earlier than 4 years after the date of the notice.
   79         3.2. A permitholder or licensee may not conduct live
   80  greyhound racing or dogracing in connection with any wager for
   81  money or any other thing of value in the state. The commission
   82  may deny, suspend, or revoke any permit or license under this
   83  chapter if a permitholder or licensee conducts live greyhound
   84  racing or dogracing in violation of this subparagraph. In
   85  addition to, or in lieu of, denial, suspension, or revocation of
   86  such permit or license, the commission may impose a civil
   87  penalty of up to $5,000 against the permitholder or licensee for
   88  a violation of this subparagraph. All penalties imposed and
   89  collected must be deposited with the Chief Financial Officer to
   90  the credit of the General Revenue Fund.
   91         Section 2. Paragraph (c) of subsection (3) of section
   92  550.0951, Florida Statutes, is amended to read:
   93         550.0951 Payment of daily license fee and taxes;
   94  penalties.—
   95         (3) TAX ON HANDLE.—Each permitholder shall pay a tax on
   96  contributions to pari-mutuel pools, the aggregate of which is
   97  hereinafter referred to as “handle,” on races or games conducted
   98  by the permitholder. The tax is imposed daily and is based on
   99  the total contributions to all pari-mutuel pools conducted
  100  during the daily performance. If a permitholder conducts more
  101  than one performance daily, the tax is imposed on each
  102  performance separately.
  103         (c)1. The tax on handle for intertrack wagering is 2.0
  104  percent of the handle if the host track is a horse track, 3.3
  105  percent if the host track is a harness track, 5.5 percent if the
  106  host track is a dog track, and 7.1 percent if the host track is
  107  a jai alai fronton. The tax on handle for intertrack wagering is
  108  0.5 percent if the host track and the guest track are
  109  thoroughbred permitholders or if the guest track is located
  110  outside the market area of the host track and within the market
  111  area of a thoroughbred permitholder that conducted a full
  112  schedule of live racing the preceding fiscal year currently
  113  conducting a live race meet. The tax on handle for intertrack
  114  wagering on rebroadcasts of simulcast thoroughbred horseraces is
  115  2.4 percent of the handle and 1.5 percent of the handle for
  116  intertrack wagering on rebroadcasts of simulcast harness
  117  horseraces. The tax shall be deposited into the Pari-mutuel
  118  Wagering Trust Fund.
  119         2. The tax on handle for intertrack wagers accepted by any
  120  dog track located in an area of the state in which there are
  121  only three permitholders, all of which are greyhound
  122  permitholders, located in three contiguous counties, from any
  123  greyhound permitholder also located within such area or any dog
  124  track or jai alai fronton located as specified in s. 550.615(6)
  125  or (9), on races or games received from the same class of
  126  permitholder located within the same market area is 3.9 percent
  127  if the host facility is a greyhound permitholder and, if the
  128  host facility is a jai alai permitholder, the rate shall be 6.1
  129  percent except that it shall be 2.3 percent on handle at such
  130  time as the total tax on intertrack handle paid to the
  131  commission by the permitholder during the current state fiscal
  132  year exceeds the total tax on intertrack handle paid to the
  133  commission by the permitholder during the 1992-1993 state fiscal
  134  year.
  135         Section 3. Paragraph (a) of subsection (10) of section
  136  551.104, Florida Statutes, is amended to read:
  137         551.104 License to conduct slot machine gaming.—
  138         (10)(a)1. Until a thoroughbred permitholder is no longer
  139  conducting live racing pursuant to s. 550.01215(1)(b)2., a no
  140  slot machine license or renewal thereof may not shall be issued
  141  to an applicant holding a permit under chapter 550 to conduct
  142  pari-mutuel wagering meets of thoroughbred racing unless the
  143  applicant has on file with the commission a binding written
  144  agreement between the applicant and the Florida Horsemen’s
  145  Benevolent and Protective Association, Inc., governing the
  146  payment of purses on live thoroughbred races conducted at the
  147  licensee’s pari-mutuel facility. In addition, a no slot machine
  148  license or renewal thereof may not shall be issued to such an
  149  applicant unless the applicant has on file with the commission a
  150  binding written agreement between the applicant and the Florida
  151  Thoroughbred Breeders’ Association, Inc., governing the payment
  152  of breeders’, stallion, and special racing awards on live
  153  thoroughbred races conducted at the licensee’s pari-mutuel
  154  facility. The agreement governing purses and the agreement
  155  governing awards may direct the payment of such purses and
  156  awards from revenues generated by any wagering or gaming the
  157  applicant is authorized to conduct under Florida law. All purses
  158  and awards are shall be subject to the terms of chapter 550. All
  159  sums for breeders’, stallion, and special racing awards are
  160  shall be remitted monthly to the Florida Thoroughbred Breeders’
  161  Association, Inc., for the payment of awards subject to the
  162  administrative fee authorized in s. 550.2625(3).
  163         2. A No slot machine license or renewal thereof may not
  164  shall be issued to an applicant holding a permit under chapter
  165  550 to conduct pari-mutuel wagering meets of quarter horse
  166  racing unless the applicant has on file with the commission a
  167  binding written agreement between the applicant and the Florida
  168  Quarter Horse Racing Association or the association representing
  169  a majority of the horse owners and trainers at the applicant’s
  170  eligible facility, governing the payment of purses on live
  171  quarter horse races conducted at the licensee’s pari-mutuel
  172  facility. The agreement governing purses may direct the payment
  173  of such purses from revenues generated by any wagering or gaming
  174  the applicant is authorized to conduct under Florida law. All
  175  purses are shall be subject to the terms of chapter 550.
  176         Section 4. Paragraph (c) of subsection (5) and paragraph
  177  (d) of subsection (13) of section 849.086, Florida Statutes, are
  178  amended to read:
  179         849.086 Cardrooms authorized.—
  180         (5) LICENSE REQUIRED; APPLICATION; FEES.—No person may
  181  operate a cardroom in this state unless such person holds a
  182  valid cardroom license issued pursuant to this section.
  183         (c) Notwithstanding any other provision of law, a pari
  184  mutuel permitholder, other than a permitholder issued a permit
  185  pursuant to s. 550.3345 or a purchaser, transferee, or assignee
  186  holding a valid permit for the conduct of pari-mutuel wagering
  187  approved pursuant to s. 550.054(15)(a), may not be issued a
  188  license for the operation of a cardroom if the permitholder did
  189  not hold an operating license for the conduct of pari-mutuel
  190  wagering for fiscal year 2020-2021. In order for an initial
  191  cardroom license to be issued to a thoroughbred permitholder
  192  issued a permit pursuant to s. 550.3345, the applicant must have
  193  requested, as part of its pari-mutuel annual license
  194  application, to conduct at least a full schedule of live racing.
  195  In order for a cardroom license to be renewed by a thoroughbred
  196  permitholder, the applicant must have requested, as part of its
  197  pari-mutuel annual license application, to conduct at least 90
  198  percent of the total number of live performances conducted by
  199  such permitholder during either the state fiscal year in which
  200  its initial cardroom license was issued or the state fiscal year
  201  immediately prior thereto if the permitholder ran at least a
  202  full schedule of live racing or games in the prior year.
  203         (13) TAXES AND OTHER PAYMENTS.—
  204         (d)1. Each jai alai permitholder that conducts live
  205  performances and operates a cardroom facility shall use at least
  206  4 percent of such permitholder’s cardroom monthly gross receipts
  207  to supplement jai alai prize money during the permitholder’s
  208  next ensuing pari-mutuel meet.
  209         2. Until a thoroughbred permitholder is no longer
  210  conducting live racing pursuant to s. 550.01215(1)(b)2., each
  211  thoroughbred permitholder or harness horse racing permitholder
  212  that conducts live performances and operates a cardroom facility
  213  shall use at least 50 percent of such permitholder’s cardroom
  214  monthly net proceeds as follows: 47 percent to supplement purses
  215  and 3 percent to supplement breeders’ awards during the
  216  permitholder’s next ensuing racing meet.
  217         3. A No cardroom license or renewal thereof may not shall
  218  be issued to an applicant holding a permit under chapter 550 to
  219  conduct pari-mutuel wagering meets of quarter horse racing and
  220  conducting live performances unless the applicant has on file
  221  with the commission a binding written agreement between the
  222  applicant and the Florida Quarter Horse Racing Association or
  223  the association representing a majority of the horse owners and
  224  trainers at the applicant’s eligible facility, governing the
  225  payment of purses on live quarter horse races conducted at the
  226  licensee’s pari-mutuel facility. The agreement governing purses
  227  may direct the payment of such purses from revenues generated by
  228  any wagering or gaming the applicant is authorized to conduct
  229  under Florida law. All purses are shall be subject to the terms
  230  of chapter 550.
  231         Section 5. For the purpose of incorporating the amendment
  232  made by this act to section 550.01215, Florida Statutes, in a
  233  reference thereto, subsection (3) of section 550.3551, Florida
  234  Statutes, is reenacted to read:
  235         550.3551 Transmission of racing and jai alai information;
  236  commingling of pari-mutuel pools.—
  237         (3) Any horse track licensed under this chapter may receive
  238  broadcasts of horseraces conducted at other horse racetracks
  239  located outside this state at the racetrack enclosure of the
  240  licensee, if the horse track conducted a full schedule of live
  241  racing during the preceding state fiscal year, or if the horse
  242  track does not conduct live racing as authorized under s.
  243  550.01215.
  244         (a) All broadcasts of horseraces received from locations
  245  outside this state must comply with the provisions of the
  246  Interstate Horseracing Act of 1978, 92 Stat. 1811, 15 U.S.C. ss.
  247  3001 et seq.
  248         (b) Wagers accepted at the horse track in this state may
  249  be, but are not required to be, included in the pari-mutuel
  250  pools of the out-of-state horse track that broadcasts the race.
  251  Notwithstanding any contrary provisions of this chapter, if the
  252  horse track in this state elects to include wagers accepted on
  253  such races in the pari-mutuel pools of the out-of-state horse
  254  track that broadcasts the race, from the amount wagered by
  255  patrons at the horse track in this state and included in the
  256  pari-mutuel pools of the out-of-state horse track, the horse
  257  track in this state shall deduct as the takeout from the amount
  258  wagered by patrons at the horse track in this state and included
  259  in the pari-mutuel pools of the out-of-state horse track a
  260  percentage equal to the percentage deducted from the amount
  261  wagered at the out-of-state racetrack as is authorized by the
  262  laws of the jurisdiction exercising regulatory authority over
  263  the out-of-state horse track.
  264         (c) All forms of pari-mutuel wagering are allowed on races
  265  broadcast under this section, and all money wagered by patrons
  266  on such races shall be computed as part of the total amount of
  267  money wagered at each racing performance for purposes of
  268  taxation under ss. 550.0951, 550.09512, and 550.09515. Section
  269  550.2625(2)(a), (b), and (c) does not apply to any money wagered
  270  on races broadcast under this section. Similarly, the takeout
  271  shall be increased by breaks and uncashed tickets for wagers on
  272  races broadcast under this section, notwithstanding any contrary
  273  provision of this chapter.
  274         Section 6. For the purpose of incorporating the amendment
  275  made by this act to section 550.01215, Florida Statutes, in a
  276  reference thereto, subsection (2) of section 550.615, Florida
  277  Statutes, is reenacted to read:
  278         550.615 Intertrack wagering.—
  279         (2) Except as provided in subsection (1), a pari-mutuel
  280  permitholder that has met the applicable requirement for that
  281  permitholder to conduct live racing or games under s.
  282  550.01215(1)(b), if any, for fiscal year 2020-2021 is qualified
  283  to, at any time, receive broadcasts of any class of pari-mutuel
  284  race or game and accept wagers on such races or games conducted
  285  by any class of permitholders licensed under this chapter.
  286         Section 7. For the purpose of incorporating the amendment
  287  made by this act to section 550.0951, Florida Statutes, in a
  288  reference thereto, subsection (5) of section 550.09515, Florida
  289  Statutes, is reenacted to read:
  290         550.09515 Thoroughbred horse taxes; abandoned interest in a
  291  permit for nonpayment of taxes.—
  292         (5) Notwithstanding the provisions of s. 550.0951(3)(c),
  293  the tax on handle for intertrack wagering on rebroadcasts of
  294  simulcast horseraces is 2.4 percent of the handle; provided
  295  however, that if the guest track is a thoroughbred track located
  296  more than 35 miles from the host track, the host track shall pay
  297  a tax of .5 percent of the handle, and additionally the host
  298  track shall pay to the guest track 1.9 percent of the handle to
  299  be used by the guest track solely for purses. The tax shall be
  300  deposited into the Pari-mutuel Wagering Trust Fund.
  301         Section 8. For the purpose of incorporating the amendment
  302  made by this act to section 550.0951, Florida Statutes, in a
  303  reference thereto, paragraph (a) of subsection (3) of section
  304  550.09511, Florida Statutes, is reenacted to read:
  305         550.09511 Jai alai taxes; abandoned interest in a permit
  306  for nonpayment of taxes.—
  307         (3)(a) Notwithstanding the provisions of subsection (2) and
  308  s. 550.0951(3)(c)1., any jai alai permitholder which is
  309  restricted under Florida law from operating live performances on
  310  a year-round basis is entitled to conduct wagering on live
  311  performances at a tax rate of 3.85 percent of live handle. Such
  312  permitholder is also entitled to conduct intertrack wagering as
  313  a host permitholder on live jai alai games at its fronton at a
  314  tax rate of 3.3 percent of handle at such time as the total tax
  315  on intertrack handle paid to the commission by the permitholder
  316  during the current state fiscal year exceeds the total tax on
  317  intertrack handle paid to the former Division of Pari-mutuel
  318  Wagering by the permitholder during the 1992-1993 state fiscal
  319  year.
  320         Section 9. For the purpose of incorporating the amendment
  321  made by this act to section 550.0951, Florida Statutes, in a
  322  reference thereto, paragraph (a) of subsection (9) of section
  323  550.6305, Florida Statutes, is reenacted to read:
  324         550.6305 Intertrack wagering; guest track payments;
  325  accounting rules.—
  326         (9) A host track that has contracted with an out-of-state
  327  horse track to broadcast live races conducted at such out-of
  328  state horse track pursuant to s. 550.3551(5) may broadcast such
  329  out-of-state races to any guest track and accept wagers thereon
  330  in the same manner as is provided in s. 550.3551.
  331         (a) For purposes of this section, “net proceeds” means the
  332  amount of takeout remaining after the payment of state taxes,
  333  purses required pursuant to s. 550.0951(3)(c)1., the cost to the
  334  permitholder required to be paid to the out-of-state horse
  335  track, and breeders’ awards paid to the Florida Thoroughbred
  336  Breeders’ Association and the Florida Standardbred Breeders and
  337  Owners Association, to be used as set forth in s. 550.625(2)(a)
  338  and (b).
  339         Section 10. This act shall take effect July 1, 2025.