State SealARIZONA HOUSE OF REPRESENTATIVES

 

HB 2731: horse racing; special events; simulcasting

PRIME SPONSOR: Representative Shope, LD 8

BILL STATUS: Land & Agriculture

                               

 

Overview

☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteRepeals the Arizona Racing Commission (Commission) and requires the Arizona Department of Gaming (ADOG) to develop a system of special event wagering on the simulcasting of live horse races, subject to outlined requirements.

History

ADOG, with direction from the Commission, regulates and supervises all commercial horse racing meetings, as well as authorized pari-mutuel wagering on races that occur both inside and outside of Arizona (A.R.S. § 5-104).

Pari-mutuel wagering is the betting system that the racing industry uses to distribute earnings among the winning patrons from the total amount wagered, minus the amount withheld under state law. A handle is the term used by the racing industry to describe the total amount of money contributed by all pari-mutuel pools (A.R.S. § 5-101).

Simulcast racing is a telecast shown of races for pari-mutuel wagering. Simulcasts shown at a 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. Commercial racetracks (permittees) in Arizona can also operate additional wagering facilities, which are a permittee’s off-track locations where wagering, but no live racing, is conducted (A.R.S. § 5-112).

Statute allows a permittee 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, current statute requires the permittee to conduct at least seven posted races on 140 racing days at the permittee's racetrack enclosure (A.R.S. § 5-112).

Laws 2016, Chapter 246 prohibited live dog racing beginning in 2017 and required 20% of the fee paid to a permittee for any simulcast agreement between a permittee that conducted live dog racing in 2016 and a horse racing facility in Maricopa County to be distributed to the Arizona Horseman's Benevolent and Protective Association (AHBPA). Additionally, the legislation repealed the requirement for all licensed permittees in a county to give consent for a permittee to conduct wagering at an additional facility, beginning in 2019.

Laws 2018, Chapter 318 established the Rural County Racing Fund to distribute matching grants to counties with a population of less than 800,000 persons that operate county fair racing.

Provisions

Commission

1.       Repeals the Commission and transfers all rules, property, monies and other matters to ADOG. (Sec. 1-8)

Special Event Simulcasting

2.       Requires ADOG to develop a system of special event wagering on the simulcasting of horse races that:

a.       Originate outside of Arizona; and

b.       Consistently generate high volume pari-mutuel wagering activity. (Sec. 2)

3.       Requires all live-racing permittees to enter into an agreement that requires:

a.       Simulcasts to be offered to each live-racing permittee and additional wagering facility; and

b.       The percentage or rate paid to receive a simulcast to be equal, regardless of where the live racing is conducted. (Sec. 4)

4.       Requires any simulcast that originates from outside of Arizona to:

a.       Be offered to each live-racing permittee and each additional wagering facility in Arizona; and

b.       Cost the same percentage or rate to receive the simulcast. (Sec. 4)

5.       Requires ____% of purse monies generated at each additional wagering facility to be allocated to each live-racing permittee. (Sec. 4)

6.       Requires ADOG to ensure that activities conducted under special event wagering do not result in the elimination of restrictions or requirements for tribal gaming. (Sec. 2)

7.       Re-establishes the requirement for all licensed permittees in a county to give consent for a permittee to conduct wagering at an additional facility, retroactive to January 1, 2019. (Sec. 3,10)

o   Laws 2016, Chapter 246 repealed this requirement beginning January 1, 2019.

8.       Removes the requirement for 20% of the fee paid to a permittee for any simulcast agreement between a permittee that conducted live dog racing in 2016 and a horse racing facility in Maricopa County to be distributed to the AHBPA, retroactive to January 1, 2019. (Sec. 3,10)

o   Laws 2016, Chapter 246 established this requirement beginning January 1, 2019.

9.       Allows a permittee 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 AHBPA. (Sec. 4)

10.   Requires ADOG to allow additional wagering facilities and permittees to incorporate modern technology to facilitate special event wagering. (Sec. 2)

11.   Requires purse overpayments to be treated as a recoverable receivable for accounting purposes. (Sec. 3)

Miscellaneous

12.   Requires ADOG to distribute matching grants from the Rural County Fair Racing Fund to all counties that operate county fair racing, rather than just counties with a population of less than 800,000 persons, retroactive to July 1, 2018. (Sec. 7,10)

13.   Requires Legislative Council staff to prepare conforming legislation for consideration in the next legislative session. (Sec. 9)

14.   Makes technical and conforming changes. (Sec. 3-7,9)

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18.   Fifty-fourth Legislature                       HB 2731

19.   First Regular Session                            Version 1: Land & Agriculture

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21.   ---------- DOCUMENT FOOTER ---------