61D-8.005. Purses and Florida Owners' Awards, Horse Racing

(1) For the purpose of interpreting this rule, the following definitions shall apply:

(a) “Purse” means the cash portion of the prize for which a race is contested.

(b) “Purse Pool” means the aggregate of all amounts set aside for the purpose of purse payments, including:

1. Those sums required to be paid as purses pursuant to Chapter 550, F.S.;

2. Those additional, optional sums authorized to be paid as purses by Chapter 550, F.S., and which a horseracing permitholder elects to pay or is required to pay upon reaching specific statutory conditions or thresholds or optional sums paid by contract;

3. Any interest earned on an underpaid purse account.

(c) “Florida Owners’ Awards” means those sums awarded in accordance with the eligibility criteria established in Section 550.2625(6)(a) and (b), F.S.

(d) “Florida Owners’ Awards Pool” means the aggregate of the sums set aside for payment of Florida Owners’ Awards, including:

1. Those sums which a thoroughbred racing permitholder is required to pay as Florida Owners’ Awards by Chapter 550, F.S.;

2. Those additional, optional sums a thoroughbred permitholder is authorized and elects to pay as Florida Owners’ Awards by Chapter 550, F.S.; and

3. Any interest earned on an underpaid Florida Owners’ Awards account.

(e) “Horsemen Association” means the organization representing a majority of the thoroughbred racehorse owners and trainers.

(f) “Sweepstakes” or “Stakes” means the sums paid as purses on a sweepstakes race and which sum is partially or totally comprised by funds contributed by the competitors in and/or the sponsors of the race.

(g) “Transfer of purse pool money” means:

1. Sums deductible from a horseracing permitholder’s purse pool and due or remitted to another permitholder to be used for the payment of purses by the receiving permitholder pursuant to Chapter 550, F.S.;

2. Sums deductible from a horseracing permitholder’s purse pool and required to be used by the permitholder toward the payment of insurance benefits for backside employees pursuant to Chapter 550, F.S.;

3. Sums deductible from a harness racing permitholder’s purse pool and due or remitted to intertrack wagering guests and which become part of the guests’ commission pursuant to Chapter 550, F.S.; or

4. Sums deductible from a thoroughbred purse pool which are due or remitted to the horsemen’s association pursuant to Chapter 550, F.S.

(2) Each horseracing permitholder shall segregate the respective amounts due the purse pool into separate accounting entries. For those permitholders maintaining purse pool accounting on a cash basis, the amounts due to the purse pool from interstate simulcasting shall not be deemed accrued to the purse pool until payment in clear funds is received from the appropriate guest or host track. Amounts received after the close of the meet shall be applied toward payments in the subsequent meet. Reports reflecting the status of purse money should have disclosure notes on any amounts receivable. Permitholders maintaining accounting on an accrual basis shall credit the purse pool with the amounts due from simulcasts upon completion of the simulcast performance.

(3) A cumulative purse underpayment occurs where the aggregate of the purses paid during the meet is less than the aggregate available in the purse pool, as adjusted for statutorily required transfers.

Any underpayment of statutory required purses shall be deposited within 10 days of the end of the meet into a separate interest bearing account. The underpayment plus all interest generated shall be used to increase purses awarded over the course of the permitholder’s next meet.

(4)(a) A cumulative purse overpayment occurs where the aggregate of purses paid during the meet is greater than the aggregate available in the purse pool, as adjusted for statutorily required transfers. Unless otherwise indicated in the contract between the horsemen’s association and the permitholder, the permitholder may carry forward the amount overpaid and recoup the overpayment over the course of the next meet or future meets.

(b) The statutory purses due in a current meet shall not be reduced by deducting overpayments from a prior meet or meets or from the current meet.

(5) In thoroughbred racing, if Chapter 550, F.S., requires payment of Florida Owners’ Awards or the permitholder elects to pay such awards, the permitholder upon receipt shall segregate the respective amounts due the Florida Owners’ Awards pool into separate accounting entries.

(6) In thoroughbred racing, the sums required to be paid as Florida Owners’ Awards shall be paid to the owners of Florida bred horses in accordance with Section 550.2625(2)(a) and (b), F.S. Any eligibility criterium added by the permitholder must be previously disclosed in the conditions book and the daily racing program.

(a) If all the funds due as Florida Owners’ Awards are not paid out during the meet, the remaining amount shall be carried forward to the permitholder’s subsequent meet. All funds carried forward shall be deposited in an interest bearing account within 10 days after the close of the meet. The principal and interest generated shall be used to pay owners’ awards in the permitholder’s subsequent meet.

(b) An overpayment occurs where the aggregate of the awards paid exceed the amount available in the Florida Owners’ Awards pool. Unless otherwise indicated in the contract between the horsemen’s association and the permitholder, the permitholder may carry forward the amount overpaid and recoup the overpayment over the course of the next meet or future meets.

(7) The horseracing permitholder shall maintain a separate account for purses and a separate account for Florida Owners’ Awards. The separate interest bearing accounts maintained by the permitholder for purses and owners awards shall pay interest in an amount equivalent to current market rates for similar amounts competitive with financial institutions within the immediate geographical area of the permitholder.

(8) The purse for each race and the Florida Owners’ Awards, where applicable, shall be disclosed in the conditions book and the daily racing program. Each permitholder shall also disclose the distribution formula for each race’s purse: for example, 60% to the first finisher, 20% to the second finisher, 15% to the third finisher, and the remaining 5% divided equally among all other finishers. Where the permitholder elects to have only one distribution formula applicable throughout the performance, the uniform application shall be disclosed.

(a) Where the purse is announced as a minimum guaranteed or as “purse added”, the permitholder shall disclose to the division the source of any additional amounts and, if applicable, the total to be added to the announced purse.

(b) The announced purses and awards shall be considered contractually binding on both the permitholder and the contestants in the race.

(c) The conditions book and the daily racing program shall disclose the fees to be collected for races in which nomination, entry and starting fees are applicable. If the total collected cannot be included in the racing program, such information will be provided daily to the pari-mutel wagering specialist on site.

(9) If, prior to the payment of any purse or award, any event is known to occur or alleged to have occurred that may result in disqualification of a horse from a race, the payment of the purse or award on that horse shall be delayed until a final determination regarding the alleged violation is made by the Steward or Division Director.

(a) In the event that a purse or award payment is made and subsequently the horse is disqualified by the Steward or Division Director, the recipient of the sums shall return the money to the permitholder for redistribution.

(b) All funds held pursuant to subsection (9) shall be held in escrow by the permitholder pending a final determination and distribution.

(10) Each horseracing permitholder shall provide to the pari-mutuel wagering specialist on site a daily Purse and Florida Owners’ Award summary for each race, with the following minimum information:

(a) Total purse paid;

(b) Total derived from fees paid by category; and

(c) Where applicable, Florida Owners’ Awards paid.

A copy of a permitholder’s daily purses paid report which includes the above information shall be sufficient to meet this requirement.

(11) Each horseracing permitholder shall file a purse report within 30 days after the close of each meet reflecting:

(a) Sums contributed and interest accrued to the purse pool between the last day of the previous meet and the first day of the meet being reported. Any balance brought forward (underpayment or overpayment) from the previous meet shall be indicated;

(b) Sums contributed and interest accrued to the purse pool during the meet period;

(c) All outflows for purse payments. This includes:

1. The total purse paid and, where applicable, the total Florida Owners’ Award paid the sum of which shall equal to the sum of the elements of subparagraphs 2., 3., 4., and 5. below;

2. The amounts for entry, nomination and starting fees included as part of the purses paid;

3. The amount included as part of the purses paid which was contributed by sponsors to the race;

4. Other contractual amounts paid which are in addition to the statutory requirements;

5. The net amount paid which is derived from statutory requirements; and

(d) Amount of under or overpayments as derived from values in paragraphs (a) through (c), above;

(e) Where cash basis accounting is used, in a footnote or attached list, any amounts due to the permitholder derived from simulcasting which have not been received or have not cleared and therefore will be included in the next report; and

(f) Transfers of purse money.

(12) Each horseracing permitholder shall file a Florida Owners’ Award report within 30 days of the close of each meet reflecting:

(a) Sums contributed and interest accrued to the Florida Owners’ Award pool between the last day of the previous meet and the first day of the meet being reported. Any balance brought forward (underpayment or overpayment) from the previous meet shall be indicated;

(b) Sums contributed and interest accrued to the Florida Owners’ Award pool during the meet period;

(c) All outflows from the Florida Owners’ Award Pool; and

(d) Amount of under or overpayment as derived from values in paragraphs (a) through (c), above.

(13) For conducting purse audits, the division shall require accounting records that are used to verify purse payouts, for example, contributions to the purse pool derived from live handle, intertrack wagering, and simulcast wagering; amounts distributed from the purse pool; and transfers to any breeders’ or owners’ awards program.

(a) Supporting schedules for contributions to the purse pool which are derived from interstate broadcasting shall be included. Permitholders may submit schedules designed by the permitholder’s accounting personnel provided that all the information needed is included.

(b) The permitholder shall include disclosure notes to the report any time a permitholder has items included in the reports which are not explained within the content of the documents or where a permitholder wishes to make a contribution to the purse pool which is in excess of the statutory requirements.

(14) The frequency of the remittances to the horsemens’ association shall be as agreed upon by contract. If not addressed in the contract, the remittances shall be at intervals not greater than a week. The sworn statement required by Section 550.2614(2), F.S., must be presented to the permitholder and a copy of the sworn statement must be filed with the Division.

(15) The purse and Florida Owners’ Award report and all accounting records pertaining to the purse pool and Florida Owners’ Award accounts shall be subject to audit under the provisions of Sections 550.2625(2)(d) and 550.125(2), F.S. For the purpose of the audit, accounting records shall include contracts between the horsemen’s association and the permitholder and contracts with guests and hosts when these are needed to make determinations regarding amounts contributed to or transfers from the purse pool.

(16) If an audit or investigation by the division reveals that a horseracing permitholder failed to timely pay the amounts due the horsemen’s association under Section 550.2614, F.S., or fail to pay the amounts due for purses or Florida Owners’ Awards as required pursuant to Chapter 550, F.S., the division shall initiate administrative disciplinary action.

(17) A horseracing permitholder at its option may pay additional purses, or make additional contributions to the purse pool or Florida Owners’ Awards pool, or make additional payments to a horsemen’s association, in excess of the amounts required or authorized by Chapter 550, F.S. In no event may a contract or agreement or unilateral action by a permitholder, waive the requirements of this rule or of Chapter 550, F.S. Any contractual clause, agreement or unilateral action by a permitholder which is found to be contrary to the requirements in Chapter 550, F.S., or the provisions of this rule shall be considered void.

(18) Where a race is canceled, no purses will be due; however, any funds contributed by the owners of the horses toward the payment of a sweepstakes or enhancement of the purse on the canceled race, shall be refunded to the contributors.

(19) If a race is declared “no contest, no race or null” by the Steward, the permitholder may still pay purses on such race. The status of the wagered money on such null races will have no bearing on the decision regarding the payment of purses. If a decision not to pay the purse is made, any contributions by the competitors engaged in the race shall be refunded to the contributors.

Rulemaking Authority 550.2614(1), (2), (3), (4), 550.2625(2)(d) FS. Law Implemented 550.2614, 550.2625(2), 550.625, 550.655 FS. History–New 10-20-96, Amended 12-15-97, 4-15-07.