Florida Clamps Down on Poker Cardrooms

floridaTwo Florida based cardrooms on the radar of state authorities, after being accused of running pari-mutuel poker games. Administrative complaints have been filed against Pensacola Greyhound Racing and the Sarasota Kennel Club by the Department of Business and Professional Regulation (DBPR) for offering house-banked card games in their cardrooms. This is despite the fact that the Sunshine State signed an agreement with the Seminole Tribe that it would come down hard on cardrooms which offer pari-mutuel games – an exclusive right of the tribe. Cardrooms, according to Florida state law, are only allowed to offer games where players compete against each other, and not against the bank.

In violation of the state agreement with the Seminole, the two cardrooms have been offering ‘designated player’ games. This means that one player seated at the table acts as the bank – with the other players playing against this single player. As such, these games are deemed house-banked games by authorities.  By filing a complaint against the two cardrooms, Florida’s gambling authorities are hoping that other businesses will take note and refrain from offering these kinds of games on their own premises.

The Miami Herald explains: “Games such as Three-Card Poker and Ultimate Texas Hold ’em began popping up in Florida racetrack poker began popping up in Florida racetrack poker rooms back in 2011. The state formally gave approval in 2014 after card room operators persuaded them that the games were classified as poker, under the reasoning that patrons vied against a designated player, rather than the house.”  This decision, however, was reversed this summer after the state reached an agreement with the Seminole Tribe, resolving, for the time being, a series of lawsuits that have been brought against one another – back and forth – over a number of years.

Under the terms of the law, the Seminole will have a monopoly over blackjack and other house-banked games for at least another 12 years. The agreement determined that the state’s cardrooms would need to cease offering designated player games. The state promised to aggressively go after cardrooms who did not comply with the state law, in order to protect the interests of the tribe.

The tribe, in exchange, will continue making revenue-sharing payments to the state each month. For several years now, the Seminoles have been paying into an escrow account. The state now has the authority to access these funds, which will give them at least $220 million. Another $120 million will be added to the fund over the next year.

 

 

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