ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fourth Legislature

Second Regular Session

House: LAG DP 4-3-0-0-0-0

HB 2811: racing; pari-mutuel wagering

Sponsor:  Representative Pierce, LD 1

Caucus & COW

Overview

Allows advance deposit wagers on previously held races, repeals restrictions on when advance deposit wagering can occur, and allows advance deposit wagering account owners to make wagers using technologies approved by the Arizona Racing Commission (Commission).

History

Pari-mutuel wagering is a system of betting that distributes the total amount wagered (less the amount withheld under state law) to the winning patrons. Advance deposit wagering is a type of pari-mutuel wagering that allows someone to deposit monies in an account with an advance deposit provider (provider) ahead of time and use those monies for pari-mutuel wagering on live or simulcast racing that an advance deposit pari-mutuel wagering permittee accepts or makes (A.R.S. § 5-101).

The Commission regulates advance deposit racing through a permitting process and must follow statutorily established requirements for approving permits (A.R.S. § 5-112(N)).

Statute allows advance deposit wagering for commercial live-racing permittees and commercial dog racing permittees that held live dog racing in 2016. Additionally, a provider can conduct this wagering if it secures approval from the racing authority in the state where it is located. Further, for horse racing, a provider must annually secure approval from both:

1)    Commercial live horse racing permittees in a county where the provider or commercial live-racing permittee accepts this type of wager for horse racing; and

2)    The organization that represents the majority of owners and trainers at each of the commercial live horse racing enclosures in each county.

Providers must pay source market fees on wagers placed on Arizona horse races to commercial live horse racing permittees in this state. Statute also directs the provider on how it should divide these fees on wagers (A.R.S. § 5-112(M)).

Provisions

1.    Amends the definition of advance deposit wagering to include using monies deposited in advance for pari-mutuel wagering on previously held races. (Sec. 1)

2.    Repeals restrictions on advance deposit wagering so that a commercial live-racing permittee or a commercial dog racing permittee may conduct advance deposit wagering as approved by the Commission. (Sec. 2)

3.    Deletes requirements that providers pay source market fees on wagers placed on Arizona horse races and that dictate how providers should divide these fees on wagers. (Sec. 2)

4.    Directs the Commission to issue permits to authorize providers to accept advance deposit wagers from persons in Arizona subject to certain statutory requirements. (Sec. 2)

5.    Clarifies that a provider can accept advance deposit pari-mutuel wagers from those in Arizona if the commercial live-racing permittee in Arizona is either:

a)    A racetrack enclosure in a county where live horse or live dog racing has been conducted for at least 40 days annually for at least 12 consecutive years starting after 1992;

b)    A new racetrack enclosure in the same county that either:

i.      Replaced the previously existing racetrack enclosure on which the advance deposit wagering is acceptable; or

ii.     Conducts a racing program with the same type of racing in which advance deposit wagering is accepted and enters into an agreement with the provider for the payment of a source market fee. (Sec. 2)

6.    Allows the advance deposit wagering account owner to make advance deposit pari-mutuel wagers by using technologies approved by the Commission, instead of just by telephone. (Sec. 2)

7.    ☐ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal NoteMakes technical changes. (Sec. 2)

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11.                    HB 2811

12.  Initials PAB           Page 0 Caucus & COW

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