Florida bill decouples racetracks from casinos, except for Gulfstream and Tampa Bay

The Florida Senate on Wednesday passed a bill that will allow racetracks other than Gulfstream Park and Tampa Bay Downs to cease live racing without giving up their casino licenses.

The bill had already passed in the House on Tuesday during a special session called solely to consider the bill and the approval of a gambling compact between the state and the Seminole Tribe.

Under the bill, the former Calder Race Course, which announced last fall that it would no longer host live racing, will be able to keep its casino without any obligation to race. Calder in recent years had been rebranded Gulfstream Park West and was operated by 1 S/T, which leased the racing license from Churchill Downs Inc.

The owner of Gulfstream Park, 1/ST, opposed the provision allowing for so-called “decoupling,” contending that the removal of the requirement for other operators will put its casino at a competitive disadvantage. Horse racing operations at Gulfstream are subsidized by the casino at the track.

Over the last decade, several “racetracks” in Florida have staged Quarter Horse races in order to obtain a pari-mutuel license, which allowed the owners to seek a license for a card room or casino. In addition, Hialeah Park has been holding Quarter Horse races in order to operate a casino. Hialeah will now be able to give up its racing permit.

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The legislation also establishes a new Florida Gaming Control Commission, a five-member regulatory body that will regulate pari-mutuel operations in the state. The current regulator, the Division of Pari-Mutuel Wagering, is a part of the state’s Department of Business and Professional Regulation, and it has limited rule-making powers.

The compact negotiated between the state and the Seminole Tribe – also approved by the legislature on Wednesday – will allow the tribe to offer sports betting at its seven locations in the state, as well as offer the wagers on mobile apps to state residents. The compact also allows racetracks to cut deals with the tribe to offer sports betting, provided that 40 percent of the net proceeds go to the Seminoles.

According to Florida newspapers, the compact, which lasts for 30 years, is likely to be challenged by groups opposed to the expansion of gambling.