Irreplaceable Gulfstream Park

Thoroughbred racing in Florida cannot sustain competitive purses on pari-mutuel handle alone—it requires gaming subsidies. Gulfstream Park’s slot operation generated $59.7 million in net revenue in fiscal year 2023-2024, of which approximately $6 million was allocated to racing purses, with the remaining funds retained for track operations or corporate ownership after state taxes.3 Yet even this gaming support allegedly proves insufficient. A Gulfstream Park representative testified in 2025 that despite these revenue streams, the track still subsidizes racing “to the tune of about $6 million” annually.4,5

In South Florida, land costs intensify revenue requirements. Finding and assembling contiguous 200-300 acre parcels suitable for the very specific needs of a racing operation in this highly developed urban region would require extraordinary capital investment.6 Such a facility would require substantial land acquisition costs, plus hundreds of millions more for construction of grandstands, clubhouses, barns and infrastructure. These costs require substantial ancillary revenue to justify investment, generate returns, and prevent higher-ROI redevelopment. Without gaming authorization, South Florida racing economics collapse.

Without gaming revenue, the economics stumble. The question becomes: Can we secure gaming authorization? Not likely.

The Permit Freeze:

Florida’s 2021 gaming legislation froze the pari-mutuel permit landscape. No new permits may be issued after January 1, 2021, and only permitholders who held operating licenses during fiscal year 2020-2021 may retain existing permits and slot machine licenses.7

Conversion pathways are equally blocked. Quarter Horse permits cannot be converted to Thoroughbred operations. The last of these was a narrow exception created specifically for the Florida Thoroughbred Breeders’ and Owners’ Association to potentially establish racing near the state’s breeding center—a non-profit permit, constrained to Ocala, that may not be replicated.8 Jai alai and greyhound permits similarly cannot be converted to Thoroughbred operations.7

The 60% Barrier:

Florida’s 2018 Amendment 3 requires 60% voter approval for casino gambling and prohibits legislative authorization through statute.9 Establishing slots at a new racing venue would require collecting 800,000 signatures across 14+ congressional districts and then achieving supermajority approval in a statewide election. A process requiring tens of millions in campaign spending.

This threshold has proven insurmountable even for well-funded initiatives with broad support. In November 2024, both Amendment 3 (marijuana legalization) and Amendment 4 (abortion rights) commanded majority support yet crashed against the 60% barrier despite spending $152 million and $110 million respectively against opposition spending of only $30 million and $9 million.10,11 The racing industry cannot likely replicate these expenditure levels.

Disney ($20 million) and the Seminole Tribe ($24 million) funded the 2018 amendment, with Disney protecting its family brand and the Tribe protecting its gaming exclusivity under the state Compact.12 Against Goliath political and financial capacities, the racing industry would fare better as ally than adversary.

The Gaming Compact:

The 2021 Gaming Compact grants the Seminole Tribe sweeping gaming exclusivity across Florida in exchange for revenue-sharing payments projected at $2.5 billion over five years.13 Under the Compact’s terms, any legislative action authorizing additional slot facilities or gaming expansion at existing venues enables the Tribe to reduce or suspend payments to the state.13 The Compact creates enormous incentives for the Tribe and the state to oppose any gaming expansion.

Despite these statewide obstacles, proposals for specific South Florida sites continually surface.14 None overcome the fundamental barriers.

Hialeah Park operates over 850 slot machines under a Quarter Horse permit through a 2009 Seminole deal.15 The Brunetti family ownership has no incentive to share this lucrative slots revenue with Thoroughbred racing interests, and no mechanism exists to add Thoroughbred racing to Hialeah’s slots authorization.

Palm Meadows Training Center in Boynton Beach faces municipal authority to prohibit new pari-mutuel facilities after July 1, 2021,7 and fierce homeowner opposition would be guaranteed. Even if municipal approval could be secured, no permit exists to obtain and there is no path to gaming authorization.

The fundamental problem remains: a hundreds-of-millions-dollar investment for a racing-only facility that may not generate competitive purses or adequate returns is economically irrational.

The analysis is straightforward: Racing requires gaming revenue. Gaming revenue in South Florida requires overcoming frozen permits, 60% voter approval, Seminole and Disney opposition, site-specific restrictions, and overall prohibitive economics.

Creative lawyering or political persistence cannot overcome these obstacles. They represent deliberate policy choices by Florida voters and legislators to freeze the gaming landscape and ensure voter control over expansion.

All South Florida alternatives demand thorough consideration, but the legal and economic barriers suggest that true north may lie considerably north of Gulfstream Park.