REVENUE ESTIMATING CONFERENCE TAX: Cardroom

REVENUE ESTIMATING CONFERENCE TAX: Cardroom-Black Jack ISSUE: Black Jack allowed at pari-mutuel facilities located in Miami-Dade and Broward Counties who are slot machine licensees BILL NUMBER(S): CS/SB836 SPONSOR(S): Senator Jones and Senator King MONTH/YEAR COLLECTION IMPACT BEGINS: JULY 1, 2009 DATE OF ANALYSIS: March 27, 2009

SECTION 1: NARRATIVE a. Current Law: • Cardroom licensees are not authorized to conduct any banking game, i.e. Blackjack, roulette, craps, or any other game not specifically authorized by Section 849.086, F.S. • Cardroom operators shall pay a tax of 10 percent of the cardroom operation’s monthly gross receipts. o Gross receipts are defined as the total amount of money received by a cardroom from any persons participating in an authorized game. o Authorized game is defined as a game or series of games of poker or dominoes that are played in a non-banking manner. • Each facility operating a cardroom shall pay a cardroom license fee of $1,000 for each table per year.

b. Proposed Change: Authorizes Cardroom licensees located in Miami-Dade and Broward counties who are slot machine licensees pursuant to Chapter 551, F.S. to conduct the game of blackjack under the following conditions: • a full schedule of live races were conducted for the prior two (2) fiscal years pursuant to Section 550.002(11), F.S., • the Governor and the Seminole Tribe of Florida enter into a signed compact which must meet all the provision of SB788 by December 31, 2009, that would permit the Seminole Tribe of Florida the ability to play roulette or roulette style games or craps or craps-style games; and • the compact is approved or deemed approved by the Department of the Interior and properly noticed in the Federal Register.

SECTION 2: DESCRIPTION OF DATA AND SOURCES Section 849.086, Florida Statutes States: Jersey, Illinois, Indiana, Colorado

SECTION 3: METHODOLOGY (INCLUDE ASSUMPTIONS AND ATTACH DETAILS) o Assumed that the six pari-mutuel facilities currently authorized to have slot machines in Miami-Dade and Broward Counties would potentially conduct the game of blackjack. o Cardroom operators pay a tax of 10% of the monthly gross receipts on an “authorized game”, which is defined in section 849.086(2)(a), F.S., as “a game or series of games of poker or dominoes played in a non-bank manner.” Blackjack is neither a game of poker nor a game played in a non-banking manner, therefore it is likely that the 10% tax would not be applicable. o Assumed those pari-mutuel facilities would maintain their current level of cardroom tables and add an additional tables to conduct the game of blackjack, therefore the following assumptions were applied: o The high estimate is based on 35 additional tables. o The middle estimate is based on 20 additional tables. o The low estimate is based on no compact agreement be signed by 12/31/09.

SECTION 4: PROPOSED FISCAL IMPACT

State Impact: FY 2009-10 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 All Funds Annualized Cash Cash Cash Cash High 35,000 35,000 35,000 35,000 35,000 Middle 20,000 20,000 20,000 20,000 20,000 Low 0 0 0 0 0

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SECTION 5: CONSENSUS ESTIMATE (ADOPTED 3/30/09) The conference adopted the proposed estimate, contingent upon the compact being approved or deemed approved by the U.S. Department of the Interior, and published in the Federal Register by July 1, 2009.

FY 2009-10 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 Annualized Cash Cash Cash Cash General Revenue Insignificant Insignificant Insignificant Insignificant Insignificant State Trust 0 0 0 0 0 Total State Impact Insignificant Insignificant Insignificant Insignificant Insignificant Total Local Impact 0 0 0 0 0 Total Impact Insignificant Insignificant Insignificant Insignificant Insignificant

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