Stronach sues in latest effort to decouple racing, slots in Florida

After failing in the Florida state legislature this spring, the Stronach Group has gone to court to fight for the right to decouple its Gulfstream Park racing and slot-machine licenses.

Filing a lawsuit under the name Gulfstream Park Racing Association, Stronach wants a Tallahassee court to declare a selective 2021 decoupling law unconstitutional. The case was filed in Leon County circuit court against the Florida Gaming Control Commission.

In a written statement, Gulfstream said the law violates its right to equal protection. That is because it gave other pari-mutuel operators the chance to decouple their gaming licenses from their harness, quarter-horse and jai-alai competitions but left Thoroughbred permit holders without that opportunity.

How racing defeated Florida decoupling legislation.

“(The law is) unconstitutional for aiding rival slot operators while singling out (Gulfstream) for special and unique punishments,” the statement said. “The 2021 act allowed seven pari-mutuel operators to keep slot-machine lincenses without having to run live racing or games while imposing potentially severe penalties on Gulfstream Park if it does not meet specific requirements for Thoroughbred racing.”

The Florida Thoroughbred Owners’ and Breeders’ Association disagreed.

“Today’s news of Gulfstream Park’s court filing is deeply troubling,” FTBOA CEO Lonny Powell said in a written statement Wednesday afternoon. “After benefitting for decades from the prestige and profits of Florida’s Thoroughbred industry, they’re now asking the courts to let them abandon it entirely.”

A lawyer for 1/ST Racing, which is run by Stronach, insisted this was not a threat to Thoroughbred competition at Gulfstream.

“This is not about racing,” attorney Marie Long said in the track statement. “We are committed to a sustainable future for racing. It’s about our inability to compete with private slot operators who don’t have to meet the same obligations we must meet to run our business, because they receive special treatment at our expense.”

One of the key figures in the legislative fight against Stronach said it was too early to speak specifically about the case, but it was not to soon to call out the mission of the lawsuit.

“We will review the details of the lawsuit and reserve further comment until then,” said former Kentucky state senator Damon Thayer, who advises the Thoroughbred Racing Initiative that has fought Florida decoupling. “But one thing is for certain for all to see. Belinda Stronach hates horse racing and wants out badly. The question is why won’t she sell Gulfstream Park as is? There are multiple willing buyers. TRI and our coalition will continue to fight on all fronts any efforts that will result in decoupling.”

Powell echoed that sentiment in his statement.

“This lawsuit isn’t about fairness. It’s about Gulfstream Park wanting to operate a casino without fulfilling their racing responsibilities,” Powell said. “They’re turning their back on the very industry that built their brand and bottom line. ... Let’s be clear. This is a casino-first move, not a racing-first one. The courts should recognize it for what it is, a direct threat to our industry’s integrity and Florida agriculture’s future.”

According to sports-gambling law expert Daniel Wallach on X, Stronach had only until early next week to challenge any facet of the law that was the result of negotiations between the state and the Seminole nation, which enjoys certain grandfathered exclusivity in Florida gaming. A Monday deadline comes with the fourth anniversary of the decoupling act taking effect.

The commission had a regularly scheduled meeting Wednesday morning that included a private session with its attorney Elina Valentine about active court cases, although the newness of the Stronach case meant it was not shown on the agenda.

Racing interests who want to protect the money they get from Gulfstream Park slot machines won a legislative fight this spring to prevent decoupling from getting to the governor’s desk. They convinced the Florida Senate not to act on the Stronach proposal. Governor Ron DeSantis got at least $450,000 in donations to his conservative political-action committee when he promised not to let racing get hurt by the legislature.

Long hinted the legislative fight is not necessarily done.

“We believe the legislature can and should resolve this matter fairly and swiftly,” she said. “However, we are seeking relief from the court to protect and uphold the constitutional rights granted to us by Florida voters in 2005.”

That was a reference to the ballot initiative that granted pari-mutuel operators the opportunity to add slot machines and card rooms as long as their activities were coupled. Opponents of decoupling say the marriage of racing and slots at Gulfstream was and still is baked into that law. 

The Florida law firm Gunster, Yoakley & Stewart filed the court case Tuesday on behalf of Stronach.