TALLAHASSEE — A Jacksonville card room operator is alleging that state gambling officials lacked the authority to allow a tiny parimutuel permit holder in Hamilton County to expand to open a new poker room.

The Florida Gaming Control Commission, with no discussion, in June unanimously approved Hamilton Downs Horsetrack’s request to amend its permitted property.

Hamilton Downs drew attention nearly a decade ago for holding controversial “flag drop” horse races in which two horses ambled down a dirt path after a red rag on a stick was waved. An administrative law judge likened the races to an “entry-level campers’ horse show held at the conclusion of a two-week YMCA summer camp.”

Hamilton Downs offered the flag-drop races to fulfill part of state law requiring a certain number of horse races to be conducted to maintain its state-issued gambling license. The races also allowed pari-mutuel operators to run more lucrative card  rooms.

Due to changes in Florida law, Hamilton Downs doesn’t have to offer horse races any longer but still has a permit to operate a card room — which it hasn’t yet launched.

The proposal approved by gambling regulators authorized Hamilton Downs’ owners to place a cardroom on property adjacent to where the flag-drop races were held.

In a lawsuit filed last week, attorneys for Bestbet Holdings, Inc. alleged that nothing in Florida law allows Hamilton Downs “to conduct pari-mutuel operations, including a cardroom, at any location other than the location for which it was originally approved.”

The lawsuit, filed in Leon County circuit court on Oct. 13, argued that Bestbet, which operates three card rooms in Jacksonville and Orange Park, “is in direct competition” with Hamilton Downs and “stands to lose revenue” if the Jennings-based operator “is permitted to relocate and/or expand.”

Florida law includes a handful of exceptions allowing pari-mutuel operators to expand or relocate, but Hamilton Downs does not meet any of the criteria, according to the lawsuit filed on behalf of Bestbet by attorney John Lockwood.

Appearing before the gaming commission in August, Lockwood asked the panel to reconsider its approval of Hamilton Downs’ request.

Allowing the card room at the new location “exceeds the commission’s statutory authority” and “relies upon unadopted policy and creates regulatory and competitive consequences that are inconsistent with the integrity of Florida’s gaming framework,” Lockwood told commissioners on Aug. 6.

Lockwood also raised questions about whether a voter referendum would be required for Hamilton Downs to add a cardroom, under a constitutional amendment requiring voters to sign off on gambling expansions. He also asked whether it matters “if the permit holder actually operates.”

Such questions “are incredibly important to answer in this regulated industry,” the lawyer told the panel.

“However, none of these answers can be found in the Florida statutes because, simply put, there’s no provision of Florida law that authorizes this expansion,” he said.

The commission’s Hamilton Downs decision could have far-reaching implications, Lockwood warned.

“This is a significant issue. We have parimutuel permits that border counties, including counties that have voted against having pari-mutuel wagering in their county. This decision could allow those operators to potentially expand into those counties that have not previously authorized pari-mutuel or card room gaming,” Lockwood said.

The commission refused his request, leading to last week’s lawsuit.

https://www.sun-sentinel.com/2025/10/20/dispute-over-florida-poker-room-dispute-heads-to-court/