Possible Backdoor for Expanded Gaming in Florida Revealed
Some Florida lawmakers were eager to revamp the state's gambling regulations this year to close up gaping holes and confusing fixes that had past their expiration date. They hadn't managed to pass a bill encompassing everything in the previous session, though, which meant there was a chance more gaps could appear in the future.
This week, the First District Court of Appeal upended the Department of Business and Professional Regulation's (DBPR) decision not to grant a permit to a new Miami-Date County jai alai fronton operated by West Flagler Associates. The company, which runs the Magic City Casino, had sought permission for a jai alai game during the summer in Florida City.
An Overlooked Loophole
J. Lockwood, a lawyer for West Flagler, discovered a 30-year-old loophole in Florida's parimutuel law that no one had ever exploited before. That law stated that the parimutuel spot with the poorest performance in any given county could get a summer jai alai permit. This loophole would have been beneficial to Hialeah Park in the 2011-12 fiscal year, as they had the lowest racing income during that time, making them eligible for the exemption. However, they declined and handed over the permit to the next eligible candidate, West Flagler.
The issue arose when West Flagler sought another permit the following year, only to be told by the DBPR that they could only have it once every two years. But West Flagler countered with the claim that the law was meant to apply to every rolling two-year period, asserting that there was no need to break it into separate permits.
Judge Scott Makar, along with Judges Brad Thomas and Simone Marstiller, ruling in a united 3-0 decision, agreed with West Flagler's interpretation of the statute:
"The statue explicitly dictates that the permitholder with the lowest handle for 'the 2 consecutive years next prior to filing an application' can apply for a summer jai alai permit, and if it refuses, a 'new permit' is made available."
The Benefits of Running a Jai-Alai Fronton
This ruling has implications for West Flagler, granting them the ability to operate a jai-alai fronton not just in Florida City, but anywhere in Miami-Dade County. By being able to run a jai-alai fronton, they will now be allowed to open a poker room. Additionally, they might also be able to operate a slots parlor due to a 2009 law that allowed Hialeah Park to operate slots after Miami-Dade County voters authorized three other parimutuels to do the same.
State authorities voiced concerns over the proliferation of seasonal jai-alai permits, but the court said they couldn't change the law's interpretation.
Makar wrote, "If the Legislature intended to allow a new permit, at best, every other year, it could have written the statute to say so. And if they believed it's a good policy to have this limit, they could implement it legislatively; but we cannot interpret the language of the existing statute to achieve this result."
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