Despite strong public opposition to Florida legislation that would allow Thoroughbred racetracks to operate a casino and cardrooms without being required to run live races, the House Commerce Committee voted 13-7 in support of the legislation March 17.
Rep. Adam Anderson, a sponsor of House Bill 105, started Monday afternoon's hearing outlining amendments to the bill that is being championed by 1/ST Racing, which is The Stronach Group entity operating Gulfstream Park.
Anderson said the revised bill does allow both Gulfstream Park and Tampa Bay Downs to operate live racing separately from their gaming operations, but adds a "trifecta of support to the Thoroughbred industry."
After meeting "with a number of Thoroughbred industry stakeholders," Anderson said the following changes were identified:
- Require any racetrack to provide a three-year notice if its executives elect to stop racing and requires that the earliest such a notice can be given is July 1, 2027.
- Allow the existing Thoroughbred racing permits to be transferred to different facilities "to provide flexibility and create new possibilities for the Thoroughbred industry," and,
- Add specific language to have the Florida Gaming Control Commission oversee how nearly $14 million for breeders' awards and purse supplements for Florida-breds would be allocated.
"This bill will put millions of dollars currently spent on administration fees and overhead directly into the hands of successful Florida-bred owners and breeders, while preserving the FTBOA's role in registering and maintaining the registry for Florida-bred foals and stallions," Anderson said.
After accepting these amendments unanimously, the committee members then heard from 16 members of the Florida Thoroughbred community all opposing the bill: veterinarians, trainers, owners, breeders, sales company executives, and family members of farm owners.
Across the board, they voiced concern that allowing Gulfstream Park to operate a casino without being required to run live racing would ultimately allow The Stronach Group to close the track and just operate the casino, endangering more than 34,000 Thoroughbred breeding and racing jobs and a more than $3.24 billion industry.
In a meeting earlier this year, 1/ST Racing representatives told horsemen they could not guarantee live racing would continue at Gulfstream Park even if decoupling were allowed because the track's site in Hallandale Beach was too valuable.
"In South Florida, if racing were to disappear, it would send shock waves through the entire racing industry, threatening agriculture and diminishing the value of the horses themselves," said Hall of Fame trainer Mark Casse. "The effect would be devastating for Florida but felt far beyond. Is one more hotel or casino in Hallandale Beach worth destroying an industry that supports the tens of thousands of lives in rural Florida?"
Chester Bishop, vice president of Florida Thoroughbred Horsemen's, said this bill will take away the ability of horsemen to be involved in purse negotiations and changes how the breeders are funded.
"This committee needs to look at the details," he said. "What we need is a serious partner to talk to and I don't think that effort has been given full consideration."
Tom Ventura, president of the Ocala Breeders' Sales Company, said the committee needed to recognize the history of keeping Thoroughbred racing and gaming revenue connected.
"The importance of purses and breeders awards has long been recognized in statutes as critical to the success of the Florida Thoroughbred industry," he said, noting that Gulfstream Park supported the initial gaming legislation in 2005 that required an active pari-mutuel permit in order to also operate a casino and also supported giving a portion of gaming revenue to purses and breeders awards.
"Now decades later it wants to renege on that deal," he said. "This bill immediately shuts off the funding requirements from slots and cards and reduce the number of live performances at a Thoroughbred track must conduct to continue these gaming operations.
"While it is certainly the prerogative of Gulfstream Park and 1/ST Racing to walk away from racing and develop and sell their property," he continued. "They do not, and should not, have the right to walk away with parting gifts of two slot machine and card room licenses on the backs of the horsemen and breeders who have been their partners and critical in it obtaining these privileges."
The testimony did sway several members of the committee.
"It is not the Legislature's responsibility to force a private business to operate a line of business that might not be profitable. I believe in a free market, but I also believe that when you make an agreement—that is your agreement," said Democratic Ranking Member Rep. Christine Hunshofsky. "We are not saying to a company that has slot machines and cards, now that you've built up these on your own, now we are going to force you to do racing. They only got that profitable (gaming) business because of racing."
She encouraged industry stakeholders to have honest, thoughtful conversations and find another way forward.
Rep. David Smith said he came into the committee meeting supporting the legislation and feeling he really understood this bill. Then he heard the testimony.
"Until today's great testimony, nobody explained, if you decoupled this would happen," he said. "I'm going to do something I have never done in seven (legislative) sessions. I don't think I understand this bill well enough, so I'm going to vote it down."
After the testimony, Anderson stressed with the committee members that he had reached out to industry leaders and asked them to give him a plan that would work for everyone.
"I didn't get that," he said. "Instead what happened, each of those associations hired a team of lobbyists to simply fight the bill. I wondered why they were spending money on lobbying instead of investing in the folks they are supposed to be representing—the breeders, the trainers, and the owners."
He said HB 105 addresses how the gaming subsidies should be handled and puts it into the right hands.
Anderson added that he felt it would be a failure if Thoroughbred racing ended in Florida.
"This bill is carefully crafted to do everything in our legislative power to ensure that doesn't happen," he said. "It provides a pathway so if there is a track that does want to stop racing, they will be able to transfer that license to someone who does. It provides a five-year visibility…early warning to get their groups together and come up with a plan."
Lonny Powell, CEO of the Florida Thoroughbred Breeders and Owners Association, said he was greatly disappointed to see the bill move forward and added that none of the changes made should be construed as a compromise with the horse community.
"Let me be clear: The latest changes to HB 105 are not a compromise—they are designed to scuttle Florida's vital Thoroughbred industry. No matter how our opponents try to spin it, this bill decouples live racing from voter-approved gaming requirements," he said. "This means fewer races, fewer jobs, and fewer opportunities for the hardworking Floridians devoted to this industry, including the passionate horsemen and women from the farms and barns who testified today.
"If this bill passes, it will ripple across the entire state economy, gutting a major industry and sending Florida jobs and horses to other states and our dollars to Toronto. This industry has helped power Florida's economy for generations, and we must not allow bad special-interest policy to dismantle it," he said.
