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A bill to be entitled

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An act relating to cardrooms; amending s. 849.086, F.S.;

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defining the term "high-stakes poker"; authorizing

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cardroom operators to host televised high-stakes poker

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tournaments at certain pari-mutuel facilities; providing

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limitations; authorizing the Division of Pari-mutuel

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Wagering of the Department of Business and Professional

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Regulation to adopt rules governing the operation of high-

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stakes poker tournaments; providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Subsections (2) and (4) of section 849.086,

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Florida Statutes, are amended, present subsections (9) through

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(17) of that section are redesignated as subsections (10) through

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(18), respectively, and a new subsection (9) is added to that

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section, to read:

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     849.086  Cardrooms authorized.--

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     (2)  DEFINITIONS.--As used in this section:

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     (a)  "Authorized game" means a game or series of games of

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poker or dominoes which are played in a nonbanking manner.

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     (b)  "Banking game" means a game in which the house is a

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participant in the game, taking on players, paying winners, and

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collecting from losers or in which the cardroom establishes a

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bank against which participants play.

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     (c)  "Cardroom" means a facility where authorized games are

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played for money or anything of value and to which the public is

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invited to participate in such games and charged a fee for

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participation by the operator of such facility. Authorized games

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and cardrooms do not constitute casino gaming operations.

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     (d)  "Cardroom management company" means any individual not

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an employee of the cardroom operator, any proprietorship,

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partnership, corporation, or other entity that enters into an

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agreement with a cardroom operator to manage, operate, or

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otherwise control the daily operation of a cardroom.

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     (e)  "Cardroom distributor" means any business that

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distributes cardroom paraphernalia such as card tables, betting

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chips, chip holders, dominoes, dominoes tables, drop boxes,

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banking supplies, playing cards, card shufflers, and other

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associated equipment to authorized cardrooms.

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     (f)  "Cardroom operator" means a licensed pari-mutuel

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permitholder which holds a valid permit and license issued by the

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division pursuant to chapter 550 and which also holds a valid

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cardroom license issued by the division pursuant to this section

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which authorizes such person to operate a cardroom and to conduct

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authorized games in such cardroom.

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     (g)  "Division" means the Division of Pari-mutuel Wagering

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of the Department of Business and Professional Regulation.

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     (h)  "Dominoes" means a game of dominoes typically played

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with a set of 28 flat rectangular blocks, called "bones," which

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are marked on one side and divided into two equal parts, with

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zero to six dots, called "pips," in each part. The term also

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includes larger sets of blocks that contain a correspondingly

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higher number of pips. The term also means the set of blocks used

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to play the game.

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     (i)  "Gross receipts" means the total amount of money

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received by a cardroom from any person for participation in

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authorized games.

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     (j) "High-stakes poker" means a game of poker which is

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played without limits on the amount wagered in any game or series

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of games or without limits on the rounds of betting established

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in this section.

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     (k)(j) "House" means the cardroom operator and all

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employees of the cardroom operator.

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     (l)(k) "Net proceeds" means the total amount of gross

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receipts received by a cardroom operator from cardroom operations

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less direct operating expenses related to cardroom operations,

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including labor costs, admission taxes only if a separate

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admission fee is charged for entry to the cardroom facility,

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gross receipts taxes imposed on cardroom operators by this

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section, the annual cardroom license fees imposed by this section

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on each table operated at a cardroom, and reasonable promotional

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costs excluding officer and director compensation, interest on

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capital debt, legal fees, real estate taxes, bad debts,

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contributions or donations, or overhead and depreciation expenses

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not directly related to the operation of the cardrooms.

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     (m)(l) "Rake" means a set fee or percentage of the pot

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assessed by a cardroom operator for providing the services of a

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dealer, table, or location for playing the authorized game.

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     (n)(m) "Tournament" means a series of games that have more

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than one betting round involving one or more tables and where the

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winners or others receive a prize or cash award.

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     (4)  AUTHORITY OF DIVISION.--The Division of Pari-mutuel

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Wagering of the Department of Business and Professional

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Regulation shall administer this section and regulate the

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operation of cardrooms under this section and the rules adopted

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pursuant thereto, and is hereby authorized to:

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     (a)1. Adopt rules, including, but not limited to: the

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issuance of cardroom and employee licenses for cardroom

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operations; the operation of a cardroom; recordkeeping and

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reporting requirements; and the collection of all fees and taxes

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imposed by this section.

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     2. Adopt rules for the operation of high-stakes poker

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tournaments, including, but not limited to, maximum buy-in

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amounts, number of players, amount of betting units, and payout

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scales.

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     (b)  Conduct investigations and monitor the operation of

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cardrooms and the playing of authorized games therein.

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     (c)  Review the books, accounts, and records of any current

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or former cardroom operator.

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     (d)  Suspend or revoke any license or permit, after hearing,

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for any violation of the provisions of this section or the

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administrative rules adopted pursuant thereto.

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     (e)  Take testimony, issue summons and subpoenas for any

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witness, and issue subpoenas duces tecum in connection with any

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matter within its jurisdiction.

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     (f)  Monitor and ensure the proper collection of taxes and

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fees imposed by this section. Permitholder internal controls are

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mandated to ensure no compromise of state funds. To that end, a

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roaming division auditor shall will monitor and verify the cash

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flow and accounting of cardroom revenue for any given operating

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day.

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     (9) HIGH-STAKES POKER TOURNAMENTS.--

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     (a) A cardroom operator may host a televised high-stakes

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poker tournament twice each year for 1 week at a pari-mutuel

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facility that is authorized to operate cardrooms during the hours

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that the pari-mutuel facility is open to conduct business. Such a

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tournament may be conducted only once in any 6-month period.

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     (b) A high-stakes poker tournament shall consist of a

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series of games played at multiple tables. Tournaments shall be

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played only with tournament chips that shall be provided to all

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participants in exchange for an entry fee and any subsequent

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rebuys. All players shall receive an equal number of tournament

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chips for their entry fee. Tournament chips shall have no cash

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value and shall represent tournament points only. There shall be

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no limitation on the number of tournament chips that can be used

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for a bet except as determined by the cardroom operator.

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Tournament chips may never be redeemed for cash or any other

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thing of value. The entry fee for a tournament shall be decided

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by the cardroom operator. The distribution of prizes and cash

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awards shall be determined by the cardroom operator before entry

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fees are accepted. For purposes of tournament play only, the term

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"gross receipts" for the tournament means the total amount

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received by the cardroom operator for all entry fees, player

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rebuys, and fees for participation in tournaments, less the total

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amount paid to the winners or others as prizes. The total number

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of players that may enter the tournament shall be decided by the

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cardroom operator.

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     Section 2.  This act shall take effect July 1, 2008.