Meeting Packet — Regulatory Reform Subcommittee (February 16, 2022)
Summary
Meeting packet for the Regulatory Reform Subcommittee of the Commerce Committee, Wednesday, February 16, 2022, 10:30 AM in Webster Hall (212 Knott). The agenda lists HB 969 Resale of Tickets by Fine and HB 1269 Pari-mutuel Wagering by Daley. The staff analysis of HB 969 discusses tickets sold on the primary market and resold on the secondary market, and nontransferable tickets. The packet closes with the text of HB 1269, whose Section 2 provides that the act takes effect July 1, 2022.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
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Regulatory Reform
Subcommittee
Wednesday, February 16, 2022
10:30 AM – 12:30 PM
Webster Hall (212 Knott)
Meeting Packet
Chris Sprowls Bob Rommel
Speaker Chair
The Florida House of Representatives
Commerce Committee
Regulatory Reform Subcommittee
Chris Sprowls Bob Rommel
Speaker Chair
Meeting Agenda
Wednesday, February 16, 2022
10:30 AM – 12:30 PM
Webster Hall (212 Knott)
I. Call to Order
II. Roll Call
III. Welcome and Opening Remarks
IV. Consideration of the following bill(s):
HB 969 Resale of Tickets by Fine
HB 1269 Pari-mutuel Wagering by Daley
V. Closing Remarks
VI. Adjournment
303 House Office Building, 402 South Monroe Street, Tallahassee, FL 32399-1300
Phone Numbers
HB 969
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 969 Resale of Tickets
SPONSOR(S): Fine
TIED BILLS: IDEN./SIM. BILLS: SB 1316
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Wright Anstead
2) Civil Justice & Property Rights Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Tickets to popular events sold on the primary market sometimes are priced below the market price, partly
because some performers, venues, and events want to make tickets affordable for fans and consumers.
Tickets are often resold on the secondary market at prices above face value. Professional resellers can use
numerous staff and software, or “bots,” to rapidly buy lots of tickets. In some instances, this results in resellers
buying up a substantial portion of tickets initially offered for sale with the sole purpose of offering them for
resale. As a result, some consumers can only buy tickets on the resale market at a substantial markup.
In response to bots buying up tickets before consumers, some performers, venues, and events have made
their tickets nontransferable or have restricted transfers to being permitted only on a designated application.
Nontransferable tickets, or tickets whose terms do not allow resale, may allow more consumers to access
tickets at face-value. However, they also limit a consumer’s ability to sell tickets they cannot use, can create
inconvenience by requiring identification at the venue or the use of a specific application, and may prevent
efficient allocation of tickets.
The bill requires any person or entity who offers nontransferable tickets for sale to also offer the ticket in a
transferrable format.
The bill defines “nontransferable ticket” as a ticket that may not be given away or resold in a method of the
ticketholder’s choosing, or that requires the ticketholder and the purchaser to facilitate the exchange
exclusively through an application program by the original ticket seller.
The bill provides that the original ticket seller may not penalize, discriminate against, or deny access to an
event to a person who purchases or resells a ticket in a manner authorized.
The bill provides an effective date of July 1, 2022.
The bill does not appear to have a fiscal impact on state or local governments.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Nontransferable Tickets
Ticket pricing, resale activity, and fees for events vary. Tickets to popular events sold on the primary
market sometimes are priced below the market price, partly because performers want to make tickets
affordable and maintain fans' goodwill, according to industry representatives. Tickets are often resold
on the secondary market at prices above face value. Professional resellers can use numerous staff and
software, or “bots,” to rapidly buy many tickets. As a result, many consumers can buy tickets only on
the resale market at a substantial markup.1
The majority of states do not regulate or restrict the sale of nontransferable tickets. However,
Connecticut, New York, and Virginia restrict nontransferable tickets, or tickets whose terms do not allow
resale. In response to bots buying up tickets before consumers, some performers, venues, and events
have made their tickets nontransferable or have restricted transfers to being permitted only on a
designated application. Nontransferable tickets, or tickets whose terms do not allow resale, may allow
more consumers to access tickets at face-value. However, they also limit a consumer’s ability to sell
tickets they cannot use, can create inconvenience by requiring identification at the venue or the use of
a specific application, and may prevent efficient allocation of tickets.2
Resale of Tickets in Florida
The resale pricing of certain tickets is governed by Florida law. A person or entity that offers for resale
or resells any ticket (with the exception of travel agencies under certain conditions 3) may charge only
$1.00 above the admission price charged by the original ticket seller, for the following:4
Passage or accommodations on any common carrier in this state;
Multiday or multievent tickets to a park or entertainment complex, or to a concert, entertainment
event, permanent exhibition, or recreational activity within such a park or complex, including an
entertainment/resort complex;5 and
Event tickets originally issued by a tax-exempt charitable organization, when no more than
3,000 tickets are issued per performance. The following must be conspicuously printed on the
face or back of each such ticket: “Pursuant to s. 817.36, Florida Statutes, this ticket may not be
resold for more than $1 over the original admission price.” This provision does not apply to
tickets issued or sold by a third party ticketing service on behalf of a charitable
organization, unless the statement is on the ticket.
The limitation of only being able to charge an additional $1.00 above the original price of a ticket also
applies to any tickets that are resold or offered through an Internet website (except those described
above), unless the website:
Is authorized by the original ticket seller; or
1 U.S. Government Accountability Office, GAO-18-357, Event Tick et Sales: Mark et Characteristics and Consumer
Protection Issues 2 (April 2018), available at https://www.gao.gov/assets/gao-18-347.pdf.
2 Id.
3 To qualify for this exception, travel agencies must have an established place of business in Florida and pay state,
county, and city occupational license taxes. See s. 817.36(1)(a), F.S.
4 S. 817.36, F.S.
5 An “Entertainment/resort complex” means a theme park comprised of at least 25 acres of land with permanent
exhibitions and a variety of recreational activities, which has at least 1 million visit ors annually who pay admission fees
thereto, together with any lodging, dining, and recreational facilities located adjacent to, contiguous to, or in close
proximity to the theme park, as long as the owner(s)/operators(s ) of the theme park, or a parent or related company or
subsidiary thereof, has an equity interest in the lodging, dining, or recreational facilities or is in privity therewith. Clo se
proximity shall include an area within a 5-mile radius of the theme park complex. See s. 561.01(18), F.S.
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Makes and posts the following guarantees and disclosures through Internet web pages, or
links to web pages, in text to which a prospective purchaser is directed before completion of the
resale transaction:
o The website operator guarantees a full refund of the ticket price including any servicing,
handling, or processing fees, if such fees are not disclosed, when:
The ticketed event is canceled;
The purchaser is denied admission to the ticketed event, unless such denial is
due to the action or omission of the purchaser;
The ticket is not delivered to the purchaser as requested and pursuant to delivery
guarantees made by the reseller and such failure results in the purchaser’s being
unable to attend the event; and
o The website operator discloses that it is not the issuer, original seller, or reseller of the
ticket and does not control the pricing of the ticket, which may be resold for more than
its original value.
Individual or entities are not authorized to sell or purchase tickets at any price on property where an
event is being held (e.g., outside a stadium) without the prior express written consent of the owner of
the property.6 Sales tax is due on resold tickets.7
A person who knowingly resells a ticket or tickets in violation of these requirements is liable to the state
for a civil penalty equal to three times the amount of the price for which the ticket or tickets were
resold.8
Also, a person who intentionally uses or sells software to circumvent a security measure, an
access control system, or any other control or measure on a ticket seller’s Internet website which is
used to ensure an equitable ticket-buying process, is liable to the state for a civil penalty equal to three
times the amount for which any ticket was sold.9
Purchasers and resellers of tickets may also be subject to civil penalties under the Florida Deceptive
and Unfair Trade Practices Act (FDUTPA).10 In the absence of a contract with the original ticket seller
to distribute or sell tickets, a person who knowingly purchases from the original ticket seller a
quantity of event tickets which exceeds the posted 11 maximum ticket limit per purchaser with
the intent of resale, violates FDUTPA.12
Effect of the Bill
The bill amends the provision of law outlining requirements for the resale of tickets.
The bill requires any person or entity who offers nontransferable tickets for sale to also offer the ticket
in a transferrable format.13
6 See s. 817.36(2), F.S.
7 See s. 817.36(3), F.S.
8 See s. 817.36(4), F.S.
9 Id. Section 817.36(5), F.S. See also s. 817.36(6), F.S., which defines the term “software” as “computer programs that
are primarily designed or produced for the purpose of interfering with the operation of any person or entity that sells, over
the Internet, tickets of admission to a sporting event, theater, musical performance, or place of public entertainment or
amusement of any kind.” Similar federal legislation was enacted in 2016 to prohibit circumvention of ticket website
security or control measures and the subsequent sale of the fraudulently obtained tickets by someone who knew or
should have known about the violation. See The Better Online Ticket Sales Act, at 15 U.S.C. s. 45c.
10 See part II of ch. 501, F.S., relating to consumer protection (ss. 501.201-501.213, F.S.). FDUTPA addresses protection
of the public and legitimate business enterprises from those who engage in unfair methods of competition, or
unconscionable, deceptive, or unfair acts or practices in the conduct of any trade or commerce. Violations may result in
several actions, including civil penalties.
11 Posting of a quantity limit occurs at the point of original sale or is printed on the tickets by or on behalf of the original
ticket seller. See s. 817.357, F.S.
12 See s. 817.357, F.S.
13 The bill provides an exception for passage or accommodations on any common carrier in Florida, multiday or multievent
tickets to a park or entertainment complex or to a concert, entertainment event, permanent exhibition, or recreational
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The bill defines “nontransferable ticket” as a ticket that may not be given away or resold in a method of
the ticketholder’s choosing, or requires the ticketholder and the purchaser to facilitate the exchange
exclusively through an application program by the original ticket seller.
The bill provides that the original ticket seller may not penalize, discriminate against, or deny access to
an event to a person who purchases or resells a ticket in a manner authorized.
The bill provides an effective date of July 1, 2022.
B. SECTION DIRECTORY:
Section 1: Amends s. 817.36, F.S. providing requirements for nontransferable tickets.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill may allow more ticket resellers to sell more tickets. The bill may require original ticket sellers to
sell tickets in a transferable format.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
activity, and event tickets originally issued by a charitable organization exempt from taxation under s. 501(c)(3) or the
Internal Revenue Code for which no more than 3,000 tickets are issued per performance.
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B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
The bill does not state who qualifies as the “original ticket seller.” For example, it does not state that it
must be the ticket retailer, the artist or performer, a venue, or any other party responsible for
determining ticket requirements.
The bill does not address whether a ticket seller can charge an additional fee, or higher price for a
transferrable ticket versus a nontransferable ticket.
The bill also does not specify any penalties for an original ticket seller who violates the bill.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 969 2022
1 A bill to be entitled
2 An act relating to resale of tickets; amending s.
3 817.36, F.S.; prohibiting the sale of certain
4 nontransferable tickets; providing an exception;
5 prohibiting the original ticket seller from taking
6 certain actions against a person who purchases or
7 resells a ticket; providing an effective date.
8
9 Be It Enacted by the Legislature of the State of Florida:
10
11 Section 1. Subsections (7) and (8) are added to section
12 817.36, Florida Statutes, to read:
13 817.36 Resale of tickets.—
14 (7) Any tickets, other than the tickets in paragraphs
15 (1)(a), (1)(b), or (1)(c), may only be sold as nontransferable
16 tickets if, at the time of sale, the original ticket seller
17 offers the option, prominently displayed, to purchase the same
18 ticket with no limit on transferability. For purposes of this
19 subsection, a nontransferable ticket is a ticket that:
20 (a) May not be given away or resold in a method of the
21 ticketholder's choosing; or
22 (b) Requires the ticketholder and the purchaser to
23 facilitate the exchange exclusively through an application
24 program operated by the original ticket seller.
25 (8) The original ticket seller may not penalize,
Page 1 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0969-00
F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 969 2022
26 discriminate against, or deny access to an event to a person who
27 purchases or resells a ticket in a manner authorized by this
28 section.
29 Section 2. This act shall take effect July 1, 2022.
Page 2 of 2
CODING: Words stricken are deletions; words underlined are additions.
hb0969-00
HB 1269
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: HB 1269 Pari-mutuel Wagering
SPONSOR(S): Daley
TIED BILLS: IDEN./SIM. BILLS:
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform Subcommittee Thompson Anstead
2) State Administration & Technology
Appropriations Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Pari-mutuel wagering is authorized in Florida for certain permitholders. These activities are overseen and
regulated by the Division of Pari-Mutuel Wagering (Division) with the Department of Business and Professional
Regulation (DBPR). However, the Florida Gaming Control Commission (Commission), established within the
Department of Legal Affairs, Office of the Attorney General, in 2021, was given responsibility over the state’s
gambling laws, including pari-mutuel wagering, beginning July 1, 2022.
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. Currently, pari-mutuel permitholders’ authority to conduct certain live racing or
games is limited as follows:
A greyhound permitholder may not conduct live racing.
A jai alai permitholder, harness horse racing permitholder, or quarter horse racing permitholder may
elect not to conduct live racing or games.
A thoroughbred permitholder must conduct live racing.
Permitholders that do not conduct live racing or games retain their permit, are considered a pari-mutuel facility.
The bill amends Florida’s pari-mutuel wagering laws, as follows:
Authorizes a greyhound permitholder, jai alai permitholder, thoroughbred permitholder, or quarter horse
racing permitholder that held such permit during the 2020-2021 operating year to conduct live harness
horse racing.
Authorizes a permitholder who elects to conduct live harness horse racing to conduct live harness
horse racing as long as they qualify for the permit they held during the 2020-2021 operating year.
Authorizes a greyhound permitholder, jai alai permitholder, thoroughbred permitholder, or quarter horse
racing permitholder who elects to conduct live harness horse racing to make a request to conduct such
racing, and have their request received by October 1, 2022.
Provides that conducting live harness horse racing is an additional benefit, and not considered a
conversion of a permit or a new or additional permit. A permitholder who elects to conduct live harness
horse racing is not entitled to receive any additional or other types of pari-mutuel permits.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the bill is July 1, 2022.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
General Overview of Gaming in Florida
Gambling is generally prohibited in Florida, unless specifically authorized. Section 7, Art. X, of the
Florida Constitution prohibits lotteries, other than pari-mutuel pools, from being conducted in Florida.
Chapter 849, F.S., includes prohibitions against slot machines, keeping a gambling house and running
a lottery. However, a constitutional amendment approved by voters in 1986 authorized state-operated
lotteries, and a constitutional amendment in 2004 authorized slot machines in Miami-Dade and
Broward Counties.
The following gaming activities are also authorized by law and regulated by the state:
Pari-mutuel1 wagering;2
Gaming on tribal reservations in accordance with the Indian Gaming and Regulatory Act and the
2010 Gaming Compact with the Seminole Tribe of Florida;
Slot machine gaming at certain licensed pari-mutuel locations in Miami-Dade County and
Broward County;3 and
Cardrooms 4 at certain pari-mutuel facilities.5
Chapter 849, F.S., also authorizes, under specific and limited conditions, the conduct of penny-ante
games,6 bingo,7 charitable drawings,8 game promotions (sweepstakes),9 bowling tournaments,10 and
skill-based amusement games and machines at specified locations. 11
In 2013, the legislature clarified that Internet café style gambling machines were illegal in the state. The
legislation clarified existing sections of law regarding slot machines, charitable drawings, game
promotions, and amusement machines and created a rebuttable presumption that machines used to
simulate casino-style games in schemes involving consideration and prize are prohibited slot
machines.12
In 2015, the legislature determined that the regulation of the operation of skill-based amusement
games and machines would ensure compliance with Florida’s limitations on gambling and prevent the
expansion of casino-style gambling. The legislature clarified regulations related to the operation and
1 “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.
2 See ch. 550, F.S., relating to the regulation of pari-mutuel activities.
3 See FLA. CONST ., art. X, s. 23, and ch. 551, F.S.
4 S. 849.086(2)(c), F.S., 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.”
5 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 Jan. 23, 2022).
6 S. 849.085, F.S.
7 S. 849.0931, F.S.
8 S. 849.0935, F.S.
9 S. 849.094, F.S., authorizes game promotions in connection with the sale of consumer products or services.
10 S. 849.141, F.S.
11 S. 546.10, F.S.
12 Florida House of Representatives Select Committee on Gaming, Final Bill Analysis of 2013 CS/HB 155, p. 1 (Apr. 19, 2013).
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use of amusement games or machines to ensure that regulations would not be interpreted as creating
an exception to the state's general prohibitions against gambling. 13
Amendment to Florida Constitution Prohibiting Racing of and Wagering on Greyhounds or
Other Dogs
During the 2018 General Election, the voters approved an initiative constitutional amendment,
Amendment 13, Prohibition on Racing of and Wagering on Greyhounds or Other Dogs, which has been
codified in the State Constitution as Article X, Section 32.14
Article X, Section 32 states:
Prohibition on racing of and wagering on greyhounds or other dogs.—The humane treatment
of animals is a fundamental value of the people of the State of Florida. After December 31,
2020, a person authorized to conduct gaming or pari-mutuel operations may not race
greyhounds or any member of the Canis Familiaris subspecies in connection with any wager
for money or any other thing of value in this state, and persons in this state may not wager
money or any other thing of value on the outcome of a live dog race occurring in this state.
The failure to conduct greyhound racing or wagering on greyhound racing after December
31, 2018, does not constitute grounds to revoke or deny renewal of other related gaming
licenses held by a person who is a licensed greyhound permitholder on January 1, 2018, and
does not affect the eligibility of such permitholder, or such permitholder’s facility, to conduct
other pari-mutuel activities authorized by general law. By general law, the legislature shall
specify civil or criminal penalties for violations of this section and for activities that aid or abet
violations of this section.
As of January 1, 2021, wagering on live greyhound racing in Florida is completely prohibited. However,
cardroom and slot machine facilities by such permitholders may continue to operate after the closure of
racing activities.
Regulation of Pari-mutuel Wagering15
Oversight
Since approximately 1931, pari-mutuel wagering has been authorized in Florida for jai alai, greyhound
racing, and horseracing. These activities have been overseen and regulated16 by the Division of Pari-
Mutuel Wagering (Division) with the Department of Business and Professional Regulation (DBPR).17
However, the Legislature established the Florida Gaming Control Commission within the Department of
Legal Affairs, Office of the Attorney General, in 2021. The commission is tasked with exercising all
regulatory and executive powers of the state on all forms of gambling authorized by the State
Constitution or law including pari-mutuel wagering, card rooms, slot machine facilities, and the
oversight of gaming compacts under the federal Indian Gaming Regulatory Act but excluding state
lottery games authorized by the State Constitution.
Effective July 1, 2022, all powers, duties, functions, records, offices, personnel, associated
administrative support positions, property, pending issues, existing contracts, administrative authority,
13 s. 546.10, F.S.
14 14 See the text of Amendment 13, now codified as art. X, s. 32, at
http://www.leg.state.fl.us/Statutes/index.cfm?Mode=Constitution&Submenu=3&Tab=statutes#A10S32 (last visited Jan. 23, 2022).
15 s. 550.002(22), F.S. Pari-mutuel is defined 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."
16 From 1932 to 1969, Florida’s pari-mutuel industry was regulated by the State Racing Commission. In 1970, the commission became
a division within the Department of Business Regulation, which, in 1993, became DBPR.
17 Department of Business and Professional Regulation, Pari-mutuel Wagering – Permitholder Operating Licenses 2021-2022,
http://www.myfloridalicense.com/DBPR/pari-mutuel-wagering/permitholder-operating-licenses-2021-2022/ (last visited Jan. 23,
2022).
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administrative rules, and unexpended balances of appropriations, allocations, and other funds in DBPR
related to the oversight responsibilities by the state compliance agency for authorized gaming
compacts under s. 285.710, F.S., the regulation of pari-mutuel wagering under ch. 550, F.S., the
regulation of slot machines and slot machine gaming under ch. 551, F.S., and the regulation of
cardrooms under s. 849.086, F.S., are transferred by a type two transfer, as defined in s. 20.06(2),
F.S., to the Florida Gaming Control Commission.18
Licensure
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.19
Chapter 550, F.S., provides specific permitting and licensing requirements, taxation provisions, and
regulations for the conduct of the pari-mutuel industry. Pari-mutuel wagering activities are limited to
operators who have received a permit from the Division, which is then subject to ratification by county
referendum.
Permitholders apply for an operating license annually to conduct pari-mutuel wagering activities.20
Certain permitholders are also authorized to operate cardrooms 21 and slot machines at their facility.22
According to the Division’s Annual Report, in the 2019-2020 Fiscal Year there were 38 pari-mutuel
permitholders licensed to operate, in addition to one thoroughbred sales facility that holds a limited
license to conduct intertrack wagering. There are eight pari-mutuel facilities that have been licensed to
operate slot machines. Several locations have multiple permits that operate at a single facility.
According the Division’s Annual Report, in the 2019-2020 Fiscal Year the following types of permits
were licensed to operate:
Nineteen Greyhound Racing permits
Five Thoroughbred Horse Racing permits
One Harness Horse Racing permit
Five Quarter Horse Racing permits
Eight Jai-Alai permits
According to the Division, ten permitholders were not issued operating licenses for Fiscal Year
2020-2021: two greyhound permitholders,23 two jai alai permitholders,24 one limited thoroughbred
permitholder,25 and five quarter horse permitholders.26 There were eight license suspensions, and
$19,075 in fines assessed for violations of all pari-mutuel statutes and administrative rules in Fiscal
Year 2019-2020.27
18 Ch. 2021-269, Laws of Fla.
19 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.”
20 s. 550.0115, F.S.
21 s. 849.086, F.S.
22 s. 551.104, F.S.
23 Jefferson County Kennel Club (Monticello) and North American Racing Association (Key West).
24 Gadsden Jai-alai (Chattahoochee) and Tampa Jai Alai.
25 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 racin g revenues for enhancement of thoroughbred purses
and awards, promotion of the thoroughbred horse industry, and the care of retired thoroughbred horses. Two conversions occurr ed,
Gulfstream Park Thoroughbred After Racing Program (GPTARP) (Hallandale, Browa rd County), which was licensed to operate in
2019-2020, and Ocala Thoroughbred Racing (Marion County), which was not licensed to operate.
26 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 Jan. 23 2022).
27 Department of Business and Professional Regulation Division of Pari-mutuel Wagering, 89th Annual Report for Fiscal Year 2019-
2020, AnnualReport-2019-2020--89th--20210224.pdf pg. 5, (last visited Jan. 23, 2022).
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Issuance of and Revocation of Pari-mutuel Permits and Annual Licenses
In 2021, a law became effective that prohibits the issuance, relocation, or conversion of any licenses,
and prohibits a pari-mutuel permitholder from being issued an operating license for the conduct of pari-
mutuel wagering, slot machine gaming, or the operation of a cardroom if the permitholder did not hold
an operating license for the conduct of pari-mutuel wagering for fiscal year 2020-2021, but exempts
converted thoroughbred permits under s. 550.3345, F.S. It also allows, for Fiscal Year 2021-2022 only,
the Division to approve changes to a permitholder’s operating dates if the request is received before
October 1, 2021.
Currently, a permit for the operation of a pari-mutuel facility, cardroom, or slot machine facility may only
be held by facilities with permits on January 1, 2021. No pari-mutuel wagering permit may be
converted to another class of permit.
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. 28
Pari-Mutuel Wagering, Slot Machine and Cardroom State Revenue
License fees and taxes collected by pari-mutuel wagering permitholders, including slot machine and
cardroom permitholders, are deposited with the Chief Financial Officer, to the credit of the Pari-mutuel
Wagering Trust Fund. Slot machine tax revenue is transferred from the Pari-mutuel Wagering Trust
Fund to the Educational Enhancement Trust Fund to supplement public education funding statewide.
Taxes collected by cardrooms are split between the Pari-mutuel Wagering Trust Fund and the General
Revenue Fund.
Live Performance Requirements
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.29 Currently, the State only requires thoroughbred permitholders to
conduct live racing;30 a greyhound permitholder may not conduct live racing; and a jai alai permitholder,
harness horse racing permitholder, or quarter horse racing permitholder may elect not to conduct live
racing or games.
A greyhound permitholder, jai alai permitholder, harness horse racing permitholder, or quarter horse
racing permitholder that does not conduct live racing or games: 31
Retains its permit;
Is a pari-mutuel facility as defined in s. 550.002(23), F.S.
Is eligible, but not required, to be a guest track, and if the permitholder is a harness horse racing
permitholder, is eligible to be a host track for purposes of intertrack wagering and simulcasting
pursuant to ss. 550.3551, 550.615, 550.625, and 550.6305, F.S.; and
Remains eligible for a cardroom license.
A permitholder or licensee may not conduct live greyhound racing or dogracing in connection with any
wager for money or any other thing of value in the state. The Division is authorized to deny, suspend,
or revoke any permit or license ch. 550, F.S., for conducting live greyhound racing or dogracing in
violation of this provision. In addition to, or in lieu of, denial, suspension, or revocation of such permit or
license, the Division is authorized to impose a civil penalty of up to $5,000. All penalties imposed and
28 S. 550.054(9)(b), F.S.
29 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”).
30 S. 550.01215(1)(b)1., F.S.
31 Id.
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collected must be deposited with the Chief Financial Officer to the credit of the General Revenue
Fund.32
Permitholders are authorized to amend their applications through February 28.33
Notwithstanding any other provision of law, other than a permitholder issued a permit pursuant to s.
550.3345, F.S., which is the conversion of quarter horse permit to a limited thoroughbred permit, a pari-
mutuel permitholder may not be issued an operating license for the conduct of pari-mutuel wagering,
slot machine gaming, or the operation of a cardroom if the permitholder did not hold an operating
license for the conduct of pari-mutuel wagering for fiscal year 2020-2021.34
After the first license has been issued to a permitholder, all subsequent annual applications for a
license must be accompanied by proof, in such form as the Division may by rule require, that the
permitholder continues to possess the qualifications prescribed by this chapter, and that the permit has
not been disapproved at a later election.35
The Division is required to issue each license no later than March 15, and each permitholder is required
to operate all performances at the date and time specified on its license. 36
Effect of the Bill
The bill authorizes greyhound permitholders, jai alai permitholders, thoroughbred permitholders, or
quarter horse racing permitholders that held such permit during the 2020-2021 operating year to elect
to conduct live harness horse racing.
The bill provides that the authorization to conduct harness horse racing pursuant to ch. 550, F.S., may
only be granted to a permitholder that held an operating license to conduct pari-mutuel wagering for
fiscal year 2020-2021 or that holds a permit issued pursuant to s. 550.3345, F.S., which is a
permitholder that converted a quarter horse permit to a limited thoroughbred permit.
However, such election to conduct harness horse racing does not entitle such permitholder to receive
an additional, or other type of, permit.
The bill provides that live harness horse racing may only be conducted pursuant to ch. 550, F.S., if
such permitholder qualifies to retain the greyhound permit, jai alai permit, thoroughbred permit, or
quarter horse racing permit held during the 2020-2021 operating year.
The bill provides that the authorization granted to conduct harness horse racing to a permitholder other
than a harness horse racing permitholder is not considered the granting or issuance of a permit or
license, or a conversion of such permit, but is merely considered an additional benefit of holding a
greyhound permit, jai alai permit, thoroughbred permit, or quarter horse racing permit issued pursuant
to s. 550.3345, F.S.
The bill extends the timeframe for which the Division is authorized to approve changes in operating
dates for a jai alai permitholder, harness horse racing permitholder, or quarter horse racing
permitholder from fiscal year 2021-2022 to 2022-2023 state fiscal years only.
The bill requires greyhound permitholders, jai alai permitholders, thoroughbred permitholders, or
quarter horse racing permitholders who elect to conduct live harness racing to make a request to
conduct such racing, and must have their request received by the Division by October 1, 2022.
32 S. 550.01215(1)(b)2., F.S.
33 S. 550.01215(1)(c), F.S.
34 S. 550.01215(1)(d), F.S.
35 S. 550.01215(2), F.S.
36 S. 550.01215(3), F.S.
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B. SECTION DIRECTORY:
Section 1: Amends s. 550.01215, F.S., relating to license application; periods of operation; license
fees; bond.
Section 2: Provides an effective date.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
State agencies associated with the provisions in the bill may need to revise their rules to the extent the
rules are inconsistent with the authority to conduct live harness horse racing.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/ COMMITTEE SUBSTITUTE CHANGES
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
HB 1269 2022
1 A bill to be entitled
2 An act relating to pari-mutuel wagering; amending s.
3 550.01215, F.S.; prohibiting greyhound racing
4 permitholders from conducting live greyhound racing or
5 dogracing; requiring a thoroughbred permitholder to
6 conduct live thoroughbred racing; authorizing
7 specified permitholders to elect to conduct live
8 harness horse racing; providing construction;
9 authorizing the Division of Pari-mutuel Wagering to
10 approve certain changes to operating dates; providing
11 an effective date.
12
13 Be It Enacted by the Legislature of the State of Florida:
14
15 Section 1. Paragraph (b) of subsection (1) and subsection
16 (3) of section 550.01215, Florida Statutes, are amended to read:
17 550.01215 License application; periods of operation;
18 license fees; bond.—
19 (1) Each permitholder shall annually, during the period
20 between December 15 and January 4, file in writing with the
21 division its application for an operating license for a pari -
22 mutuel facility for the conduct of pari-mutuel wagering during
23 the next state fiscal year, including intertrack and simulcast
24 race wagering. Each application for live performances must
25 specify the number, dates, and starting times of all live
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26 performances that the permitholder intends to conduct. It must
27 also specify which performances will be conducted as charity or
28 scholarship performances.
29 (b)1. A greyhound permitholder may not conduct live
30 greyhound racing or dogracing. A jai alai permitholder, harness
31 horse racing permitholder, or quarter horse racing permitholder
32 may elect not to conduct live racing or games. A thoroughbred
33 permitholder must conduct live thoroughbred racing. A greyhound
34 permitholder, jai alai permitholder, harness horse racing
35 permitholder, or quarter horse racing permitholder that does not
36 conduct live racing or games retains its permit; is a pari -
37 mutuel facility as defined in s. 550.002(23); if such
38 permitholder has been issued a slot machine license, the
39 facility where such permit is located remains an eligible
40 facility as defined in s. 551.102(4), continues to be eligible
41 for a slot machine license pursuant to s. 551.104(3), and is
42 exempt from ss. 551.104(4)(c) and (10) and 551.114(2); is
43 eligible, but not required, to be a guest track and, if the
44 permitholder is a harness horse racing permitholder, to be a
45 host track for purposes of intertrack wagering and simulcasting
46 pursuant to ss. 550.3551, 550.615, 550.625, and 550.6305; and
47 remains eligible for a cardroom license.
48 2. A permitholder or licensee may not conduct live
49 greyhound racing or dogracing in connection with any wager for
50 money or any other thing of value in the state. The division may
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51 deny, suspend, or revoke any permit or license under this
52 chapter if a permitholder or licensee conducts live greyhound
53 racing or dogracing in violation of this subparagraph. In
54 addition to, or in lieu of, denial, suspension, or revocation of
55 such permit or license, the division may impose a civil penalty
56 of up to $5,000 against the permitholder or licensee for a
57 violation of this subparagraph. All penalties imposed and
58 collected must be deposited with the Chief Financial Officer to
59 the credit of the General Revenue Fund.
60 3. A greyhound permitholder, jai alai permitholder,
61 thoroughbred permitholder, or quarter horse racing permitholder
62 that held such permit during the 2020-2021 operating year may
63 elect to conduct live harness horse racing. Authorization to
64 conduct harness horse racing pursuant to this chapter may only
65 be granted to a permitholder that held an operating license to
66 conduct pari-mutuel wagering for fiscal year 2020-2021 or that
67 holds a permit issued pursuant to s. 550.3345. However, such
68 election to conduct harness horse racing does not entitle such
69 permitholder to receive an additional, or other type of, permit.
70 Live harness horse racing may only be conducted pursuant to this
71 chapter if such permitholder qualifies to retain the greyhound
72 permit, jai alai permit, thoroughbred permit, or quarter horse
73 racing permit held during the 2020-2021 operating year.
74 Authorization granted to conduct harness horse racing to a
75 permitholder other than a harness horse racing permitholder is
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76 not considered granting or issuance of a permit or license, or a
77 conversion of such permit, but is merely considered an
78 additional benefit of holding a greyhound permit, jai alai
79 permit, thoroughbred permit, or quarter horse racing permit
80 issued pursuant to s. 550.3345.
81 (3) The division shall issue each license no later than
82 March 15. Each permitholder shall operate all performances at
83 the date and time specified on its license. The division shall
84 have the authority to approve minor changes in racing dates
85 after a license has been issued. The division may approve
86 changes in racing dates after a license has been issued when
87 there is no objection from any operating permitholder that is
88 conducting live racing or games and that is located within 50
89 miles of the permitholder requesting the changes in operating
90 dates. In the event of an objection, the division shall approve
91 or disapprove the change in operating dates based upon the
92 impact on operating permitholders located within 50 miles of the
93 permitholder requesting the change in operating dates. In making
94 the determination to change racing dates, the division shall
95 take into consideration the impact of such changes on state
96 revenues. Notwithstanding any other provision of law, and for
97 the 2021-2022 and 2022-2023 state fiscal years year only, the
98 division may approve changes in operating dates:
99 (a) For a jai alai permitholder, harness horse racing
100 permitholder, or quarter horse racing permitholder if the
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101 request for such changes is received before October 1, 2021; or
102 (b) To allow a greyhound racing permitholder, jai alai
103 permitholder, harness horse racing permitholder, quarter horse
104 racing permitholder, or thoroughbred racing permitholder to
105 conduct live harness horse racing if the request for such
106 changes is received before October 1, 2022.
107 Section 2. This act shall take effect July 1, 2022.
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