Florida House Passes Decoupling Bill 77-34

In less than nine minutes and with limited debate, the Florida House of Representatives approved a bill Feb. 11 that would eliminate a requirement that the state's two Thoroughbred racetracks conduct live racing in order to also be licensed for slot machines or card rooms. The vote tally was 77-34. The House, with 114 members present, spent more time earlier in the evening voting to replace the mockingbird with the flamingo and the scrub jay as the official state birds. The elimination of the requirement to run live racing in order to also run other casino games, known as decoupling, has now been approved for a second consecutive year by the House. Last year, the Florida Senate tabled the legislation after Gov. Ron DeSantis indicated he would veto the legislation. Rep. Adam Anderson, a Republican for District 57 that includes part of Hillsborough County where Tampa Bay Downs is located and a primary sponsor of House Bill 881, stressed that the legislation simply eliminates unnecessary government regulation for the last two permitholders of all the pari-mutuel permitholders statewide. In 2021, Florida approved the decoupling of pari-mutuel and gaming licenses for other pari-mutuel businesses—harness racing, Quarter Horse racing, and jai alai—but made an exception for Thoroughbred racing. The state had already banned Greyhound racing in 2018 but allowed those permitholders to keep their gaming licenses. Pompano Park, the state's sole Standardbred harness track, would eventually close in April 2022, which is the fate threatening the Thoroughbred industry if this bill becomes law, according to Rep. Yvonne Hayes Hinson, a Democrat who represents portions of Marion and Alachua counties in District 21. Ocala is the county seat of Marion County. "At first glance, this may seem like a technical regulatory change, just a tweak in how we classify permits," Hinson said. "But in reality it is a fundamental shift in policy that threatens a legacy of generations in industry. Threatens thousands of jobs and an entire community's economy." Hinson was the only other representative to speak during debate on HB 881. "Without a requirement to hold racing, the economic foundation of this industry could quickly erode. This is not hypothetical," she said. "Proponents of the bill argue that safeguards in the bill, like delaying any notice of ending live racing until July 1, 2027, with a three-year operation requirement will protect the sport. Let's be clear, those are paper guarantees that depend entirely on future business decisions. What happens if market pressures incentivize tracks to focus only on more profitable gambling operations? What happens if breeders and trainers cannot sustain their operations because the racing calendar shrinks? They are real threats raised by industry experts who know this business better than any lobbyist." Anderson minimized Hinson's concerns about "unintended consequences" from the legislation. "This upcoming weekend Tampa Bay Downs is celebrating 100 years of Thoroughbred racing and they just signed a new three-year contract with their horsemen. Gulfstream Park also signed a new three-year agreement with their horsemen," he said. "These are not the kinds of actions we see from businesses that don't intend to continue to operate." Earlier in the day, the Florida Horsemen's Benevolent and Protective Association's president Tom Cannell sent out a statement urging state representatives to vote down the bill. "Florida's Thoroughbred industry is alive and well in the state—we see it during the recent Ocala Breeder's Sales events and the Pegasus World Cup Day—but any effort to decouple puts this at risk," he said. "It jeopardizes the billions in positive economic impact that the Thoroughbred industry generates; it threatens the thousands of jobs that rely on the industry; and it endangers so many livelihoods and rural communities." The companion bill in the Florida Senate, SB 1564, has been introduced to three committees but none of them have considered the legislation yet. "We don't enjoy this but we anticipated this result way before the session, just like last year," said Lonny Powell, CEO and executive vice president for the Florida Thoroughbred Breeders' and Owners' Association. "It all fits with the movie, so now we go into part two. There is strong knowledge that the other two legs of the stool of government don't share that much passion and enthusiasm for this bill. Even less passion and enthusiasm than last year."