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H0224.........................................................by STATE AFFAIRS
PARI-MUTUEL WAGERING - Amends existing law to clarify that advance deposit
wagering on horse racing conducted by horse racing licensees is declared to be
lawful; to provide procedures; to provide limits; and to provide for rules by
the Racing Commission.
02/10 House intro - 1st rdg - to printing
02/11 Rpt prt - to St Aff
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-seventh Legislature First Regular Session - 2003
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 224
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO HORSE RACING; AMENDING SECTION 54-2512, IDAHO CODE, TO CLARIFY
3 THAT ADVANCE DEPOSIT WAGERING ON HORSE RACING CONDUCTED BY LICENSEES IS
4 DECLARED TO BE LAWFUL, TO PROVIDE PROCEDURES, TO PROVIDE LIMITS AND TO
5 PROVIDE FOR RULES BY THE RACING COMMISSION; AND DECLARING AN EMERGENCY.
6 Be It Enacted by the Legislature of the State of Idaho:
7 SECTION 1. That Section 54-2512, Idaho Code, be, and the same is hereby
8 amended to read as follows:
9 54-2512. PARI-MUTUEL BETTING -- OTHER BETTING ILLEGAL. (1) Any licensee
10 conducting a race meet under this act may provide a place or places in the
11 race meet grounds or enclosure at which such licensee may conduct and super-
12 vise the use of the pari-mutuel system by patrons on the result of the races
13 conducted by such licensee at such race meet and, upon written application by
14 a licensee and approval by the commission, on the result of simulcast and/or
15 televised races. The commission shall issue no more than one (1) license to
16 simulcast per live race meet licensee and there shall be no more simulcasting
17 sites in the state than there are licensed live race meet sites.
18 (2) (a) Licenses authorizing simulcast and/or televised races will be
19 regulated by the commission, in addition to its other responsibilities,
20 for the purpose of enhancing, promoting, and protecting the live race
21 industry in the state of Idaho. No license authorizing simulcasting and/or
22 televised races shall be issued to or renewed for persons that are not
23 also licensed to conduct live race meets in the state of Idaho. Persons
24 applying for a simulcast and/or televised race license shall have annually
25 conducted live race meets in the state of Idaho during the preceding two
26 (2) calendar years, and have an agreement reached voluntarily or pursuant
27 to binding arbitration in conformance with chapter 9, title 7, Idaho Code,
28 with a horsemen's group as the term "horsemen's group" is defined in sec-
29 tion 54-2502, Idaho Code. The agreement shall address, but not be limited
30 to, number of live race days and percentage of the live race and simulcast
31 handle that is dedicated to the live horse race purse structure. Race days
32 agreed upon shall be submitted to the Idaho racing commission for its
33 approval.
34 (b) In addition to the restrictions recited in paragraph (a) of this sub-
35 section, live horse race licensees that have had a total race handle from
36 both live races and simulcast races exceeding five million dollars
37 ($5,000,000) during the last calendar year in operation shall not have a
38 license authorizing simulcasting and/or televised races issued or renewed
39 if the licensee has not run in the calendar year immediately preceding the
40 year for which the application for a license is being made for at least
41 ninety percent (90%) of the number of live race days that were conducted
42 by that licensee in 1989.
43 (c) The commission may issue a license authorizing simulcast and/or tele-
2
1 vised races to a live horse race licensee only after that licensee has
2 conducted at that facility a minimum of forty (40) live horse races in
3 each of the two (2) calendar years preceding the application for such
4 license. The requirements of this paragraph are only applicable to live
5 horse race licensees who have received their initial live horse race
6 license after April 1, 1997.
7 (3) Such pari-mutuel system conducted at such race meet shall not under
8 any circumstances, if conducted under the provisions of this act and in con-
9 formity thereto and to the rules of the commission, be held or construed to
10 be unlawful, other statutes of this state to the contrary notwithstanding.
11 (4) The participation by a licensee in an interstate combined wagering
12 pool does not cause that licensee to be considered to be doing business in any
13 jurisdiction other than the jurisdiction in which the licensee is physically
14 located.
15 (5) Advance deposit wagering on horse racing conducted by licensees is
16 hereby declared to be lawful and within the scope of the licensee's license.
17 As used in this section "advance deposit wagering" shall mean a form of wager-
18 ing in which an account holder may deposit money with a licensee and then use
19 the balance to fund wagers. The bettor can then contact the licensee from a
20 remote location without actually being physically present at the licensee's
21 premises in order to communicate the desired use of those funds for wagering
22 purposes. However, no wager can be accepted by the licensee that exceeds the
23 amount in the account held by the licensee for the person placing the wager.
24 Any advance deposit wagering conducted by a person with someone other than a
25 licensee is unlawful and all such persons conducting the unlawful advance
26 deposit wagering shall be guilty of a misdemeanor. The commission may promul-
27 gate rules pursuant to chapter 52, title 67, Idaho Code, to implement this
28 subsection.
29 (6) Pari-mutuel taxes or commissions may not be imposed on any amounts
30 wagered in an interstate combined wagering pool other than amounts wagered
31 within this jurisdiction.
32 (67) It shall be unlawful to conduct pool selling, bookmaking, or to cir-
33 culate handbooks, or to bet or wager on a race of any licensed race meet,
34 other than by the pari-mutuel system; and it shall further be unlawful know-
35 ingly to permit any minor to use the pari-mutuel system.
36 SECTION 2. An emergency existing therefor, which emergency is hereby
37 declared to exist, this act shall be in full force and effect on and after its
38 passage and approval.
STATEMENT OF PURPOSE
RS 12887C1
The purpose of this legislation is to declare that advance
deposit wagering conducted by licensees is hereby declared to be
lawful in the State of Idaho and within the scope of the
licensee's license. Congress has said that interstate pari-mutuel
wagering on racing by telephone or other electronic means is
permitted under the Interstate Horseracing Act (IHA). Presently,
any wagering conducted in this manner by Idaho residents is being
done out of state, thus, these monies are not subject to the
withholdings as described in Idaho Code 54-2513.
FISCAL IMPACT
No fiscal impact to the General Fund.
Contact
Name: Rep. Janet Miller
Phone: 208/332-1000
Name: Stan Boyd, Les Bois Park
Phone: 344-3371
STATEMENT OF PURPOSE/FISCAL NOTE H 224