Florida’s Shades of Grey - A Look into Florida’s Gaming Laws

Michael Howard Wolf Law Firm

Gaming Law in Florida can encompass both regulated and unregulated gaming facilities. Regulated facilities include pari-mutuels (horse racing, Jai alai, and, until recently, dog racing). Pari-mutuel facilities in Miami-Dade County and Broward County can operate slot machines and card rooms, under the support of the Florida Department of Business and Professional Regulation (FDBPR). The Indians’ facilities are not regulated but are constrained by a “compact” between the state of Florida and the tribes. All Indian facilities are locally owned by the Indians under Federal Law, and, as such, are not subject to state laws, other than those they choose to follow. Under federal law, the Indians can offer gaming otherwise legal in the state. For example, state law allows pari-mutuels to operate slot machines. Likewise, charitable bingo is authorized by the Florida Statute, though it is lawful for the Indians to offer bingo. Unregulated gaming facilities are sometimes described as “grey-area gaming”, meaning that these unregulated facilities operate in a grey area as for the legality of their operations. The law has worked to the point, now that it has been made clear by the Florida Legislative, what type of “amusements” are permissible. Prior to 2013, Florida had an “arcade amusement” law, which had been enacted in 1984 to allow for amusement centers like Chuck E Cheese and Dave and Busters (CHECK OUT THIS ARTICLE!). These facilities operate games where a player can collect points on a ticket, which can be exchanged for merchandise. Prior to 2013, the requirement was that the machines had to be subject to an application of skill. Redemption was limited to 75 cents on any game played, and redemption had to be with merchandise, not cash. The “grey area” term reflected the various interpretations by law enforcement officials and the courts. The language was definitely open to interpretation. Because the properties, vending companies, and gaming software manufacturers had great imaginations, new forms of “grey area” gaming cropped up. The most noteworthy form was the sweepstakes concept. This business operated as an internet café, terminology typically used for a place of business where people can purchase internet time along with refreshments. However, the new internet café concept was one where a person could purchase internet time and receive sweepstakes entries based on the amount of his or her internet time purchase. The sweepstakes entries could then be opened by playing slot-like games. The fact that somebody could determine the result of sweepstakes entries, whereas use of the slot-like games was the trick which was used to claim that the activity fell within the purview of Florida Games Promotion Statute, which allowed sweepstakes in connection with sale of consumer products and services. As usual, however, the concept was expanded to the point where these internet cafes were considered mini casinos. In 2013, an organization called Allied Veterans owned at least 60 sweepstakes rooms across the state. The organization, its officers, and its attorney were charged with crimes ranging from possession of illegal game machines to operating a gambling house to conspiracy to violate Florida Gambling Crimes Chapter. Because of these allegations, the Florida Legislative overhauled Florida’s amusement games laws by outlawing sweepstakes and moving the arcade amusement laws out of the Gambling Crimes Chapter. They created the Florida Family Amusement Law, which defines amusement devices, provides the rules for redemption, and classifies different types of machines, which may be used lawfully. Despite this new legislation in 2015, Sweepstakes, arcades, and other forms of grey area gambling have remained.