Florida Gaming Supplier Regulatory Overview

Introduction

The state of Florida currently offers pari-mutuel wagering and card rooms (non-banking poker and dominoes only) at licensed horse-racing facilities. In addition, horse-racing facilities in Broward and Miami-Dade counties have been authorized to provide slot-machine gaming. There are currently six horse-racing locations in the state. These operations are regulated by the Division of Pari-Mutuel Wagering (“Division”), a subdivision of the state Department of Business and Professional Regulation.

It is important to note that several pieces of legislation have been introduced in late 2011 and early 2012 that would authorize expanded commercial gambling operations in the state. These proposed legislative initiatives attempt to expand the number and types of commercial games allowed, authorize casino gaming in additional locations, and create an independent gaming-control agency to oversee the state’s gambling industry. While this legislation has yet to be passed into law, it is important to recognize that legislative expansion efforts are currently underway in the state that could change the regulatory processes described below.

In addition, the state has entered into Class III compacts with local Native American tribes to allow for casino-style gaming on Native American lands in the state. Two Native American tribes operate a total of eight tribal casinos throughout the state. Though the Division has certain oversight responsibilities delegated through individual tribal-state compacts, each Native American property is regulated by the tribe that owns and operates the property. Though this analysis will focus on the state process for cardroom and slot suppliers, please be aware that more information regarding the tribal licensing process can be obtained by contacting the casino property in which the supplier wishes to conduct business.

Vendor information can be requested from the Seminole Tribe at the following address: www.semtribe.com/VendorApplication/.

Information can be requested from the Miccosukee Tribe by visiting the tribe’s website at: www.miccosukee.com/.

Cardroom Supplier Licensing Requirements

Horse-racing facilities in Florida are authorized to offer pari-mutuel wagering and cardrooms that conduct authorized poker and dominoes games. These activities are regulated by the Division, which issues licenses to vendors that provide certain goods or services to a licensed horse-racing facility.

Although the Division does not license individual officers, directors, or shareholders of vendors, it does require that these individuals submit a completed fingerprint card and a $43.25 fee with the initial application and every five years thereafter.¹ However, it should be noted that those individual employees that require access to the gaming floor or gaming equipment may need to receive additional occupational licenses from the Division depending on the type of access sought.

Those entities that wish to provide goods or services to a horse-racing facility in connection with cardroom activities must complete the Business Occupational License Application. These include “any business that distributes cardroom paraphernalia such as card tables, betting chips, chip holders, dominoes, dominoes tables, drop boxes, banking supplies, playing cards, card shufflers, and other associated equipment to authorized cardrooms.”²

Duration

Cardroom Business Licenses are valid for a period of one year and must be renewed by June 30 each year.³

Fees

For those seeking a Cardroom Business License, there is a $500 application fee due at the time the application materials are submitted.⁴

Required Documents and Information

Those entities seeking a cardroom business license must complete the Business Occupational License Application. In order to complete this application, the following information is needed:

1. Basic identification information;
2. Type of license sought;
3. List of owners, officers, and directors;
4. Whether the business has ever held a racing or gaming license in any jurisdiction;
5. Whether the business has ever had any action taken against a racing or gaming license;
6. Whether there are any pending actions against a currently held gaming license in any jurisdiction;
7. Description of the goods or services to be provided;
8. State of incorporation;
9. Any felony convictions against the corporation;
10. Whether the corporation is registered in Florida; and
11. Whether the corporation is a subsidiary of another entity conducting business in Florida.⁵

Slot Machine Licensing Requirements

The horse-racing facilities in Broward and Miami-Dade counties have been authorized to operate slot machines at the facility, and vendors supplying goods or services in connection with the operation of slot machines must be licensed by the Division.⁶ These include a business that “manufactures, distributes, or sells slot machines, slot machine paraphernalia, or other associated equipment to slot machine licensees, or any company that sells or provides goods or services associated with slot machine gaming to slot machine licensees.”⁷

Although individual licenses are not required unless the individual requires access to the gaming floor, each officer, director, and shareholder holding 5% or more in the applicant must submit a fingerprint card and $43.25 fee with the business entity application.

Duration

A license to supply goods or services to a slot-machine facility runs for a term of either one or three years. Licenses for a period of three years will only be issued if the applicant includes payment of a higher fee with its application.⁸

Fees

Applicants seeking a one-year license must submit a $1,000 fee with the application. Those applicants seeking a three-year license must submit a $2,000 fee with the application.

Required Documents and Information

Those persons or entities seeking to be licensed to supply goods or services in connection with the operation of slot machines must complete the Slot Machine Business Entity Occupational License Application. In order to complete the application, the following information is needed:

1. Basic identification information;
2. Type of business entity;
3. Type of business license sought (i.e., vendor, manufacturer, distributor);
4. Anticipated duration of license sought, either one or three years;
5. Description of the goods or services to be provided;
6. Whether the business has ever held a racing or gaming license in any jurisdiction;
7. Whether the business has ever had any action taken against a racing or gaming license;
8. Whether there are any pending actions against a currently held gaming license in any jurisdiction;
9. List of all officers, directors, and owners;
10. List of all employees who require access to the slot facility;
11. State of incorporation;
12. Any felony convictions against the corporation;
13. Whether the corporation is registered in Florida;
14. Whether the corporation is a subsidiary of another entity conducting business in Florida; and
15. List of all subsidiaries and companies holding an ownership interest in the applicant.⁹

Licensing Process and Reporting Requirements

When applying for a state-issued license, for supplying cardroom- or slot-machine-related equipment, an applicant must complete and submit the required forms to the Division. After submitting the required materials and application fees, the Division will conduct a background investigation on the applicant and all necessary key persons who are associated with the applicant.

Every five years after the initial license has been issued, the licensee is required to resubmit
fingerprint cards for those individuals required to have a fingerprint card on file with the Division, as well as include the appropriate fingerprinting fee to the Division.¹⁰

When applying for a tribally issued license, an applicant should first contact the gaming property with which the applicant is seeking to enter into a business relationship. The property will then direct the applicant to the appropriate tribal commission or agency that oversees the vendor-licensing process. The applicant will then work with the tribal agency to complete and submit the required forms and materials in connection with a vendor license.

Gaming Technology Standards

The Division has established rules that put forth detailed equipment and technological standards for goods and supplies provided in connection with the operation of cardrooms or slot machines. These rules are maintained in the Florida Administrative Code at Sections 61D-11.014-16 (regarding cardroom equipment) and Sections 61D-14.022-44 (regarding slot equipment).

Temporary Licenses

The Division may issue temporary licenses for suppliers of goods or services in connection with the operation of slot machines if the following conditions are met: the applicant submits a complete application, the applicant has not committed a disqualifying criminal offense, and the applicant has not been issued a permanent license.¹¹

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¹'Pari-Mutuel Wagering and Cardroom License Information,' Division of Pari-Mutuel Wagering, Florida Department of Business and Professional Regulation, available at http://www.myfloridalicense.com/DBPR/pari-mutuel-wagering/pari-mutuel-wagering-and-cardroom-licensing/.
²Fla. Stat. § 849.096(2)(e). See also Fla. Stat. § 849.096(6)(b).
³Fla. Admin. Code Ann. 61D-11.008(7).
⁴'Pari-Mutuel Wagering and Cardroom Licensing Information,' Division of Pari-Mutuel Wagering, Florida Department of Business and Professional Regulation, available at www.myfloridalicense.com/dbpr/pmw/PMW-Licensing-PMW_and_Cardroom.html.
⁵'Business Occupational License Application.' State of Florida Department of Business and Professional Regulation, Division of Pari-Mutuel Wagering.
⁶Fla. Stat. § 551.107(3).
⁷Id.
⁸See Fla. Stat. § 551.107(4)(c).
⁹'Slot Machine Business Entity Occupational License Application,' Department of Business and Professional Regulation, Division of Pari-Mutuel Wagering.
¹⁰Fla. Admin. Code Ann. § 61D-11.008(6).
¹¹Fl. Admin. Code Ann. § 61D-14.0055(1).