State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2547: public lands; management department; committee

NOW: racing commission; simulcasting; wagering facilities

PRIME SPONSOR: Representative Finchem, LD 11

BILL STATUS: Senate Engrossed

                                3rd Read: 18-11-1

 

The House Engrossed version of HB 2547 establishes the Arizona Department of Public Land Management and a related joint legislative study committee.

The Senate adopted a strike-everything amendment that does the following:

Overview

Outlines requirements for the simulcasting of live horse races originating within and outside of Arizona.☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note Allows a commercial racetrack (permittee) in a county with a population between 700,000 and 1.5 million persons to conduct simulcast wagering for more than 20 days if specified conditions are met.

History

Pari-mutuel wagering is the betting system that the horseracing industry uses to distribute earnings among the winning patrons from the total amount wagered, minus the amount withheld under state law (A.R.S. § 5-101).

Simulcast racing is a telecast shown of races for pari-mutuel wagering. Simulcasts shown at a commercial racetrack occur on the racetracks’ dark days, which are the days when there are no live-races conducted at the track. Participants watch and bet on races that are occurring at other tracks, which can be both in state and out of state (A.R.S. § 5-112).

Current statute allows a permittee in a county with a population between 700,000 and 1.5 million persons to conduct wagering on simulcasts for 20 days if the permittee conducts at least seven posted races on each of the racing days required in the permit. To conduct wagering on simulcasts for more than 20 days, the permittee must conduct at least seven posted races on 140 racing days at the permittee's racetrack enclosure (A.R.S. § 5-112).

Provisions

Simulcast Agreements

1.       Requires each simulcast that originates from a racetrack enclosure that conducts live racing in Arizona to be offered to each permittee and additional wagering facility in Arizona. (Sec. 1)

2.       Requires each permittee and each provider of simulcasts of races that originate outside of Arizona to enter into a simulcast agreement, subject to approval by the Arizona Racing Commission (Commission).  (Sec. 1)

3.       Requires the Commission to approve the simulcast agreement if the agreement is reasonable and complies with all requirements. (Sec. 1)

4.       Prohibits a permittee and a provider of simulcasts of races that originate outside of Arizona from engaging in any anticompetitive or deceptive practice. (Sec. 1)

5.       Defines anticompetitive or deceptive practice as:

a.       Any agreement to charge excessive or unreasonable fees for the right to receive the simulcasts;

b.       Any agreement, combination, trust or joint enterprise with any other racetrack or entity in which multiple simulcast signals are bundled together to secure an excessive or unreasonable fee for one or more signals in the group in exchange for the right to receive any of the signals; and

c.        Any other activity with the purpose or effect of artificially inflating prices beyond reasonable market rates. (Sec. 1)

6.       Requires the Commission, in determining whether a simulcast fee is excessive or unreasonable, to consider:

a.       Prevailing rates paid for comparable signals in the past;

b.       Prevailing rates paid outside of Arizona; and

c.        Whether any commonality of ownership or revenue sharing exists between the permittee and the entity that receives the fee. (Sec. 1)

Permittees in Pima County

7.       Allows a permittee in a county with a population between 700,000 and 1.5 million persons to conduct wagering on simulcasts for more than 20 days without conducting at least seven posted races on 140 racing days, if agreed to in writing by the permittee and the horsemen's organization that represents the horsemen participating in the meet. (Sec. 1)

8.       Allows a permittee in a county with a population between 700,000 and 1.5 million persons to own or lease up to six new additional wagering facilities in that county between the effective date of this legislation and June 30, 2022. (Sec. 2)

Miscellaneous

9.       Makes technical and conforming changes. (Sec. 1)

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12.   ---------- DOCUMENT FOOTER ---------

13.   Fifty-fourth Legislature                       HB 2547

14.   First Regular Session                            Version 4: Senate Engrossed

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16.   ---------- DOCUMENT FOOTER ---------