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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
public lands; management department; committee
(NOW: horse racing; simulcasting; wagering facilities)
Purpose
Prescribes requirements for simulcasts of live racing originating from within and outside Arizona. Allows a commercial live-racing permittee (permittee) in a county with a population between 700,000 and 1,500,000 persons to conduct wagering on dark day simulcasts for more than 20 days, under certain circumstances, and limits the permittee to six new additional wagering facilities through June 30, 2022.
Background
Pari-mutuel wagering is a system of betting that provides for the distribution among the winning patrons of at least the total amount wagered less amounts withheld pursuant to statute (A.R.S. § 5-101).
The Arizona Department of Gaming may allow a permittee to electronically televise simulcasted horse, harness or dog races and allows wagering on simulcasted races, subject to certain requirements.
Under current statute, in a county with a population between 700,000 and 1,500,000 persons, a permittee may conduct wagering on dark day simulcasts for 20 days if the permittee conducts a minimum of seven posted races on each of the permittee's permitted race days. A permittee may conduct wagering on dark day simulcasts for more than the allowed 20 days if the permittee conducts a minimum of seven posted races on 140 racing days at the racetrack.
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Allows a permittee in a county with a population between 700,000 and 1,500,000 persons to conduct wagering on dark day simulcasts for more than 20 days without meeting the seven required posted races on 140 racing days, subject to approval by the Arizona Department of Gaming, if the permittee enters into a written agreement with the recognized horsemen's association that represents the participants at the racetrack enclosure.
2. Limits a permittee in a county with a population between 700,000 and 1,500,000 persons from owning or leasing more than six new additional wagering facilities in that county between the effective date of this legislation and June 30, 2022.
3. Requires each permittee in Arizona to enter into a simulcast agreement that complies with statutory requirements.
4. Requires all simulcasts originating from live races at racetrack enclosures in Arizona to be offered to each permittee and additional wagering facility in the state.
5. Requires each simulcast of live racing originating outside Arizona to be offered to each permittee and additional wagering facility in Arizona.
6. Subjects simulcast agreements to approval by the Arizona Racing Commission (Commission) and directs the Commission to approve simulcast agreements that the Commission determines are reasonable and compliant with statutory requirements.
7. Prohibits a permittee from engaging in any anticompetitive or deceptive practice in offering the simulcast to another permittee or additional wagering facility in Arizona and prohibits a provider of simulcasts originating outside Arizona from engaging in any anticompetitive or deceptive practice in offering to contract interstate simulcasts to a permittee or additional wagering facility.
8. Specifies that an anticompetitive or deceptive practice includes:
a) any agreement to charge excessive or unreasonable fees for the simulcast;
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 any simulcast signal in exchange for the right to receive the bundled signals; and
c) any other activity with the purpose or effect of artificially inflating prices beyond reasonable market rates.
9. Directs the Commission to consider the following when determining whether a fee for a simulcast is excessive or unreasonable:
a) previous prevailing rates paid for comparable simulcasts;
b) prevailing rates paid outside Arizona; and
c) whether any commonality of ownership or revenue sharing exists, partially or wholly, between the permittee and the entity receiving the simulcast fee.
10. Makes technical and conforming changes.
11. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Adopted a strike-everything amendment that allows a permittee to conduct additional dark day simulcast wagering in certain circumstances.
Amendments Adopted by Committee of the Whole
1. Prescribes requirements for simulcast agreements for simulcasts of live racing originating within and outside Arizona.
2. Subjects simulcast agreements to approval by the Commission and directs the Commission to approve agreements that are reasonable and comply with statutory requirements.
3. Prohibits a permittee or an interstate simulcast provider from engaging in anticompetitive or deceptive practice in offering its signal to a permittee or additional wagering facility in Arizona.
4. Limits a permittee in a county with a population between 700,000 and 1,500,000 persons to six new additional wagering facilities owned or leased by the permittee through June 30, 2022.
Senate Action
NRE 3/27/19 DPA/SE 7-0-0
Prepared by Senate Research
May 15, 2019
KN/kja