Assigned to APPROP                                                                                                             FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

FACT SHEET FOR S.B. 1794

 

historic race wagering

Purpose

            Allows historic race wagering to be conducted on a commercial live-racing permittee's racetrack or an additional wagering facility that meets requirements.

Background

            The Arizona Department of Gaming (ADG) was established in 1995 to regulate tribal gaming activities in accordance with Arizona tribal-state gaming compacts (A.R.S. Title 5, Chapter 6). In 2015, the Legislature transferred the responsibilities of the Arizona Department of Racing to the ADG and established the Division of Racing within the ADG. The ADG Division of Racing works in conjunction with the Arizona Racing Commission to regulate and supervise pari-mutuel and simulcast wagering on horse racing (A.R.S. § Title 5, Ch. 1).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires the ADG to allow historic race wagering that is conducted on a commercial live-racing permittee's racetrack grounds or at an additional wagering facility operated by a permittee that operates a racetrack that meets prescribed requirements.

2.   Allocates, until January 1, 2025, the total number of historic racing terminals evenly among racetracks that:

a)   featured commercial live-racing, as of January 1, 2019, according to a live-racing permit; and

b)   conducted at least 21 live racing days in 2019.

3.   Deems, on January 1, 2025, any commercial live-racing permittee that has conducted 21 days of live-racing for three consecutive years to be eligible for an allocation of historic racing terminals.

4.   Requires the ADG, on qualification of a permittee on January 1, 2025, to reallocate previously allocated historic racing terminals that have not been made commercially available for wagering.

5.   Requires the ADG to adopt rules to allow historic race wagering to be conducted as regulated gambling at a commercial live-racing permittee's racetrack and additional wagering facilities.

6.   Allows historic racing terminals to be installed at:

a)   eligible racetracks that feature commercial live horse racing; and

b)   additional wagering facilities operated in Arizona by an eligible racetrack that are not within 500 feet of a school or church.

7.   Caps the total number of historic racing terminals that can operate within Arizona at the greater of, 7500 or 15 percent of the aggregate positions allowed under the tribal-state Gaming Compact (Compact).

8.   Prohibits a reduction in the number of positions allowed in the Compact from affecting the number of historic racing terminals.

9.   Requires each eligible racetrack permittee, within the earlier of six months after the general effective date or after qualifying for a historic racing terminal allocation, to enter into a written agreement with to pay a percentage of each wager from historic racing terminal to:

a)   the horsemen's organization that has represented the horsemen participating in racing meetings since 1988 (horsemen's organization) to be allocated for purses; and

b)   a nonprofit organization that represents a majority of the horse breeders. 

10.  Requires the written agreement to pay a percentage of each wager from historic racing terminals to the recognized horsemen's organization to be allocated for purses and to the nonprofit organization.

11.  Reallocates the racing terminals of a permittee that does not enter into a written agreement evenly among any eligible racetrack that has entered into a written agreement.

12.  Stipulates that each written agreement must require the horsemen's purse trust account to be controlled by the horsemen's organization and allow for a purse management fee of two percent of the total amount paid to the horsemen's organization for purses.

13.  Prohibits any political subdivision except for the state, from imposing any tax, fee or assessment on historic race wagering, owning or operating historic racing terminals or gross revenues generated by historic race wagering, owning or operating historic racing terminals.

14.  Prohibits the owner or lessor of a location used as an additional wagering facility conducting historic race wagering from charging or collecting more than 1.5 percent of the gross revenues generated from the wagering for rent or other fees from any commercial live-racing permittee for operating historic race wagering at the facility.

15.  Allows historic race wagering to be offered on any day whether or not posted races have been conducted on the same day the wagering is being offered.

16.  Requires each ADG-approved commercial live-racing permittee, to request in the application for a live racing permit the greater:

a)   21 racing days;

b)   100 percent of the number of racing days and at least 100 percent of the number of races the racetrack requested for its 2019 live-racing permit, unless agreed to with the horsemen's organization.

17.  Allows pari-mutuel wagering on previously run races in either daytime or nighttime.

18.  Allows the Racing Commission to authorize dates for pari-mutuel wagering, rather than requiring a permittee to conduct pari-mutuel wagering only on dates the dates on which the Commission authorizes racing or dark day simulcasting.

19.  Allows an advance deposit wagering (ADW) account owner to make an advance deposit pari-mutuel wager by any system or method, rather than only by telephone, including in person and over the internet through websites and on mobile devices.

20.  Requires a permittee that enters into an agreement with an ADW provider to enter into an agreement to pay the horsemen's organization a percentage of wagers.

21.  Removes the requirement that ADW agreements between Arizona permittees contain substantially equivalent terms and conditions as the simulcasting agreements between the permittees to accept advance ADW on horse racing from a county with a commercial dog racing permittee.

22.  Requires advance deposit wagering agreements between Arizona permittees to contain commercially reasonable terms and conditions.

23.  Defines historic race wagering as wagering on the outcome of previously run races that were run at a licenses racetrack enclosure, that concluded with official results and without scratches, disqualifications or dead-heat finishes and that may use nonrefundable amounts provided by a permittee as a seed or guarantee.

24.  Defines positions to as either a slot machine or each seat at a gaming bar countertop, blackjack table, keno table, bingo table, poker table and other game table.

25.  Defines free play, gross revenue, permittee, racetrack, teletrack facility and teletracking.

26.  Modifies the definitions of advance deposit wagering and simulcast.

27.  Exempts the ADG from rulemaking requirements for one-year.

28.  Contains a severability clause.

29.  Makes technical and conforming changes.

30.  Becomes effective on the general effective date.

Prepared by Senate Research

February 12, 2021

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