Investment Corp. of Palm Beach v. Department of Business & Professional Regulation, Division of Pari-Mutuel Wagering
Docket: Nos. 3D97-3414, 3D97-2926
Court: District Court of Appeal of Florida; August 9, 2000; Florida; State Appellate Court
The appeal, remanded from the Florida Supreme Court, scrutinizes a Declaratory Statement from the Division of Pari-Mutuel Wagering (DPMW) regarding the handling of uncashed tickets and breaks from intertrack wagering for the Investment Corporation of Palm Beach, Calder Race Course, Tropical Park, and Gulfstream Racing Association. The court finds that DPMW incorrectly interpreted the statutory disposition of these funds, identifying three scenarios of wagering that yield the disputed breaks and outs.
In the first scenario, where an out-of-state race is simulcast to an in-state track, the court cites section 550.3551(3)(c) of Florida Statutes, stating that breaks and uncashed tickets should be included in the takeout from wagers at the in-state track, overriding any conflicting provisions in chapter 550.
In the second scenario, involving live out-of-state races simulcast to a host track and then rebroadcasted to a guest track, the court refers to section 550.6305(4), which mandates that the takeout for intertrack wagering aligns with that of the host track. Consequently, breaks and outs at the guest track are also part of the takeout, consistent with the host track's treatment under section 550.3551(3)(c).
Ultimately, the DPMW's assertion that these breaks and outs must escheat to the State is determined to be erroneous.
Calder, Tropical Park, and Gulfstream assert entitlement to a share of the breaks and outs from wagers at Palm Beach, which arise from intertrack races they rebroadcast as host tracks. However, Florida Statutes section 550.6325 (1999) stipulates that breaks and outs are retained by the permitholder conducting the live racing. Since these tracks do not conduct the live races being rebroadcast to Palm Beach, they are not entitled to those breaks and outs. Instead, intertrack wagers are governed by sections 550.3551(3)(c) and 550.6305 of the Florida Statutes.
In a different scenario where Calder, Gulfstream, or Tropical Park conduct live races that are simulcast to Palm Beach, they would be entitled to the breaks and outs from wagers at Palm Beach on those races, as stated in section 550.6325. Additionally, section 550.6305(9) grants Palm Beach, as a permitholder for dog racing and jai-alai, 45% of net proceeds from wagers placed at Palm Beach during simulcast horse races from host tracks conducting live races.
The analysis reveals that breaks and outs from rebroadcasts to guest tracks increase the guest track’s takeout, affecting the distribution of net proceeds under section 550.6305(9). The conclusions by DPMW in its Declaratory Statement regarding breaks and outs from intertrack wagering are deemed erroneous, leading to a reversal with instructions to modify the Declaratory Statement accordingly.
Definitions from chapter 550.002 clarify that a 'simulcast' involves wagers at an in-state facility on out-of-state live races, while an 'intertrack wager' pertains to wagers on live races from or rebroadcast by another in-state facility. The term 'breaks' refers to unallocated portions of the pari-mutuel pool, and 'guest track' and 'host track' are defined based on their roles in accepting or conducting intertrack wagers. All wagered funds contribute to the pari-mutuel pool, from which expenses and distributions are deducted, with breaks and outs from host track wagers being included in the host track’s takeout as specified in the statutes.
