Florida’s Proposed Gambling Bill Will Strangle Horse-Racing Industry: Insiders

It would legalize gambling beyond the racetrack in a way that hurts livelihoods across the state, a former congressman said.
Florida’s Proposed Gambling Bill Will Strangle Horse-Racing Industry: Insiders
The field breaks from the starting gate during the Florida Derby at Gulfstream Park in Hallandale, Fla., on April 1, 2023. Al Bello/Getty Images
Updated:
0:00

Floridians associated with the state’s horse industry say they’re worried about the potential effects of a bill that’s moving through the state Legislature.

The proposed legislation—House Bill 105 and Senate Bill 408—would “decouple” horse racing from pari-mutuel betting.

That would mean that gambling now allowed almost exclusively at Florida racetracks, such as slot machines and cardroom games, could expand throughout the state and operate without the mandatory tie to horse racing. The state also allows gambling at stand-alone “Indian gaming” facilities operated by the Seminole tribe.

Opponents of the proposed bills now under consideration in the state House and Senate say the measure would destroy a key economic driver—horse racing—in a state that boasts having the third-largest horse population in the country and a region known as the “Horse Capital of the World.”

Allowing people to gamble at stand-alone locations will remove the incentive to attend events at racetracks, people opposed to the legislation told The Epoch Times. It will also remove income tethered to pari-mutuel betting that funnels to horse-racing participants, keeping the sport alive in the state, they said.

And that, they said, will kill jobs, end the horse-racing industry in the state, and weaken the Florida economy overall.

“This would have a detrimental effect on the Florida Thoroughbred breeding and training industry that contributes over a billion dollars to the Florida economy,” former Congressman Ted Yoho told The Epoch Times in an email. Yoho, a Republican who represented the area in Washington, served for eight years before honoring a pledge to seek no more than four, two-year terms. Before that, he worked as an equine veterinarian in the region.

“This will also lead to an expansion of casinos in Florida that was never approved by the voters,” Yoho said.

Horse Hub

Near the state’s center is Marion County. The region bills itself as the Horse Capital of the World. Nearly half of the area’s jobs are connected to horse-related activities, according to the Florida Thoroughbred Breeders’ and Owners’ Association.

Marion County is home to about 75,000 horses. Equine activities there contribute $4.3 billion to Florida’s economy. And statewide, 122,000 jobs come from the equine industry, with 30 percent linked to thoroughbreds, the association says.

Thoroughbreds are the most commonly raced horses at tracks where wagering is allowed. Standardbreds are raced in two-wheel carts, and quarter horses are ridden by jockeys.

People come from around the world each year to watch equestrian sports in Florida, spending about $2.7 billion annually on travel, dining, and lodging in the state, according to the association.

Expanded Gambling in Florida

Betting on horse races was the only legal form of gambling in Florida from the 1930s, when the industry got its start in the state. The lottery in Florida began in 1988.

Then, in the early 2000s, proponents of expanding gambling in the state began their successful campaign. They agreed to operate pari-mutuel wagering at facilities where it would be mutually beneficial—their customers would come to gamble on multiple types of sports and games, and part of the profits would be given back to the facility and participants.

Forte, ridden by Irad Ortiz Jr., wins the Florida Derby at Gulfstream Park in Hallandale, Fla., on April 1, 2023. (Al Bello/Getty Images)
Forte, ridden by Irad Ortiz Jr., wins the Florida Derby at Gulfstream Park in Hallandale, Fla., on April 1, 2023. Al Bello/Getty Images

The word “pari-mutuel” means “betting among ourselves” in French.

Under Florida law, pari-mutuel wagering is defined as a “system of betting on races or games in which the winners divide the total amount bet, after deducting management expenses and taxes, in proportion to the sums they have wagered individually and with regard to the odds assigned,” according to the Florida Gaming Control Commission.

The most common type of pari-mutuel wagering involves betting on horse races, according to the commission.

All bets on a particular race are placed into a pool, and the payout is determined by the total amount gamblers place on the race, minus a percentage paid to the facility as a commission. The payout to winners is calculated by dividing the remaining pool among the number of winning bettors.

A state constitutional amendment was needed to put the measure to allow pari-mutuel wagering into place. It was approved by voters in 2004 to allow expanded slot machines in South Florida.

In Florida, the law now allows pari-mutuel wagering on live horse racing and jai alai at licensed racetracks and jai alai frontons. Bettors at those facilities can also place wagers on televised races and jai alai at other connected locations.

Jai alai player Inaki Goicoechea (R) takes a shot during the Cesta Punta Final match of the Basque Pelota World Championships in Biarritz, France, on Oct. 29, 2022. (Gaizka Iroz/AFP via Getty Images)
Jai alai player Inaki Goicoechea (R) takes a shot during the Cesta Punta Final match of the Basque Pelota World Championships in Biarritz, France, on Oct. 29, 2022. Gaizka Iroz/AFP via Getty Images
Casino gambling, including slot machines and table games, is allowed on some Indian tribal lands.

‘The Beginning of the End’

The deal to expand gambling at racetracks helped keep horse racing as a thriving industry, said Dr. Barry Eisaman, a veterinarian who treats horses in the area.

But if the proposed legislation passes and is signed into law by the state’s governor, it will end horse racing in Florida, said Eisaman, who owns Eisaman Equine, a thoroughbred farm and training facility in Williston, Florida.

“It will not kill it like turning the switch off on a car right away, but it will be the beginning of the end,” he said.

“Horse racing will essentially be herded onto the deck of the Titanic to listen to nice orchestra music, knowing the ship is going to go down. It may take as much as seven years for the thing to sink, but the end outcome will be the same.”

He and others connected to the horse-racing industry blame the owner of a prominent horse-racing facility in Florida.

1/ST (pronounced “First”) is the Canadian parent company of Gulfstream Park near Miami, one of the largest horse racetracks and casino operations in the state. The company also owns the Santa Anita Park horse-racing track in California and the Maryland Jockey Club.

The company is part of the effort to decouple pari-mutuel facilities from horse racing, opponents of the legislation say.

According to the company’s website, it “holds nearly 20 percent of industry share and on a yearly basis processes over US$3.2 billion in wagers and operates over 300 live race days with 2,400+ full and part-time team members.”

In a January statement posted to its website, the company announced support for the proposed decoupling legislation because it will allow “Gulfstream Park’s live racing schedule to become independent of the venue’s parimutuel license” and “pursue necessary opportunities for development at Gulfstream Park.”

The statement said the company reached an agreement with the Florida Thoroughbred Horsemen’s Association that “ensures [horse-racing] purse revenues are unaffected and provides for additional contributions by Gulfstream Park to horsemen’s workers’ compensation premiums and meaningful increases to Thoroughbred aftercare efforts in Florida.”

The Epoch Times contacted 1/ST for comment. A company spokesperson acknowledged the request but did not provide a response before publication time.

Eisaman and others opposed to the legislation said they believe the move will allow the owner of Gulfstream Park and other racetrack owners to do away with horse racing, while still profiting from other forms of gambling. Opponents of the legislation told The Epoch Times that they worry the measure could allow large racetracks to be converted into housing developments and commercial projects.

An end to horse racing could cripple the now-booming equestrian industry throughout the state, Eisaman said.

“It will affect everybody. Every equestrian sport,” he said.

A statue of the famous war horse, Staff Sgt. Reckless, is displayed near the Grand Arena at the World Equestrian Center in Ocala, Fla., on June 12, 2021. (Nanette Holt/The Epoch Times)
A statue of the famous war horse, Staff Sgt. Reckless, is displayed near the Grand Arena at the World Equestrian Center in Ocala, Fla., on June 12, 2021. Nanette Holt/The Epoch Times

Countless people depend on jobs related to horse racing, even if they aren’t at racetracks or farms. Trainers, breeders, owners, barn workers, exercise riders, employees of feed mills and stores, farriers, veterinarians, hospitality workers, and workers at stores selling tack and other horse equipment would all be affected if horse racing dies off in the state, Eisaman said. And the tourism fueled in some parts of the state by Florida’s horse industry could dramatically decline.

Florida ultimately could gain revenue from expanded gambling, Eisaman said.

But he and Yoho said they believe the cost of that could come at an even higher price—the loss of jobs and businesses kept alive by horse racing.

The money from this industry “shuffles around these communities,” fueling countless other businesses and being taxed with every purchase, Eisaman said.

“It will be a substantial loss,” he said.

‘Lipstick on a Pig’

State lawmakers seem to believe the measure will help horse racing, Eisaman said.

Proponents of the legislation “paint their desires to have this decoupling in a way that is more palatable to the legislators in Tallahassee,” he said. “But that’s essentially painting lipstick on a pig. It’s not really true at all. But for legislators that are not familiar with this stuff, it sounds good.”

The bill outlines a plan for ending pari-mutuel wagering that will take seven years to complete, which sounds like it gives racetracks time to adjust, Eisaman said.

“But as soon as that decoupling goes through, there’s really no negotiating power left,” he said.

The loss of jobs connected to racing will cause families to move away and businesses to leave the state or close, he said.

The plan also would usher in major changes to the green space across the state, he said.

Many of the beautiful, lush horse farms and training facilities scattered throughout rural areas will cease to be needed, he said.

Two Arabian horses graze in a pasture at a home in Alachua, Fla., on May 18, 2023. (Nanette Holt/The Epoch Times)
Two Arabian horses graze in a pasture at a home in Alachua, Fla., on May 18, 2023. Nanette Holt/The Epoch Times
“If they start to go out of business, those things will eventually become another parking lot or another condo or another whatever,” Eisaman said. “So, between families and jobs and green space, it’s not” good for Florida.

Where it Stands Now

The Florida Gaming Control Commission has acknowledged the threat to horse racing if the bill passes.

“If thoroughbred racing ceases to occur in this state, Floridians currently licensed by the Commission or otherwise employed in the broader horse racing and breeding industry may be at risk of losing their jobs,” a spokesperson for the commission said.

In the state House, the measure was voted “favorable” by members of the Industries & Professional Activities Subcommittee and the Commerce Committee. In the Florida Senate, the legislation is being considered by the Rules Committee and the Appropriations Committee on Agriculture, Environment, and General Government. The measure was voted favorable by the Senate Regulated Industries Committee.

When asked about the issue at a press conference about an unrelated issue in Ocala on April 2, Florida Gov. Ron DeSantis said he would evaluate and make a decision on the legislation if it lands on his desk. His policy is not to comment on legislation before it’s in its final version, his communications director, Bryan Griffin, told The Epoch Times.

“I have not endorsed that bill,” DeSantis said at the press conference.

“If you put Florida first, then you’re looking to make sure that Floridians can be successful. And horse breeding is part of our state’s culture. ... I’m concerned with some of the things I hear about these proposals, about what that would mean for the viability of that going forward. But we‘ll let the process work out, and we’ll see how it ends up.”

A woman plays a slot machine during the grand opening of the newest building at the Seminole Casino Coconut Creek in Coconut Creek, Fla., on Dec. 17, 2010. (Joe Raedle/Getty Images)
A woman plays a slot machine during the grand opening of the newest building at the Seminole Casino Coconut Creek in Coconut Creek, Fla., on Dec. 17, 2010. Joe Raedle/Getty Images

Groups of horse professionals have organized trips to the Florida Capitol to plead with legislators to vote against the bill.

The Thoroughbred Racing Initiative, made up of horsemen from around the state, is one of the groups working against the measure. They’re urging Floridians to ask their state representatives and senators to kill the legislation working through each chamber. If both pass, they would be combined and sent as one bill to the governor, who could sign it, veto it, or refrain from taking action, which would allow it to pass into law.

State Sen. Danny Burgess, a Republican, sponsored the legislation in the Senate. He did not respond to a request for comment.

State Rep. Adam Anderson, also a Republican, sponsored a similar bill in the House.

“As a supporter of the Thoroughbred horse-racing industry, I’m proud to sponsor House Bill 105,” Anderson is quoted as saying in the 1/ST written statement.

“Gulfstream Park and the horse racing industry are integral to our state’s economy and cultural heritage. Gulfstream Park is not just a premier destination for racing; it’s a vital part of its local community, agriculture business and state’s economy, providing jobs and driving tourism. Florida’s horse racing industry is a symbol of excellence and tradition, and I will continue to advocate for policies that ensure its growth and success, securing its future in Florida for generations to come.”

Natasha Holt
Natasha Holt
Author
Natasha Holt is a freelance journalist covering politics and social issues. She also writes features on travel-related topics and uplifting slices of American life.