Original Notice.

     Preproposal statement of inquiry was filed as WSR 05-23-170.

     Title of Rule and Other Identifying Information: New section WAC 260-48-925 Group bet wagering.

     Hearing Location(s): Auburn City Council Chambers, 25 West Main, Auburn, WA 98001, on March 9, 2006, at 9:30 a.m.

     Date of Intended Adoption: March 9, 2006.

     Submit Written Comments to: Robert J. Lopez, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, e-mail rlopez@whrc.state.wa.us, fax (360) 459-6461, by March 6, 2006.

     Assistance for Persons with Disabilities: Contact Patty Sorby by March 6, 2006, TTY (360) 459-6462.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Establishes a new section in chapter 260-48 WAC, Mutuels, by authorizing under specific conditions group bet wagering.

     Reasons Supporting Proposal: Provides greater wagering opportunities for the racing bettors and racing industry.

     Statutory Authority for Adoption: RCW 67.16.020.

     Rule is not necessitated by federal law, federal or state court decision.

     Name of Proponent: Washington horse racing commission, governmental.

     Name of Agency Personnel Responsible for Drafting: Robert J. Lopez, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, (360) 459-6462; Implementation and Enforcement: Robert M. Leichner, 6326 Martin Way, Suite 209, Olympia, WA 98516-5578, (360) 459-6462.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable.

     A cost-benefit analysis is not required under RCW 34.05.328. Not applicable.

January 9, 2006

R. M. Leichner

Executive Secretary

OTS-8569.1

NEW SECTION
WAC 260-48-925   Group bet wagering.   (1) The group bet is a form of parimutuel wagering and part of the win pool in every race in which it is offered. The group bet is a bet to win on every participant in the selected group.

     (2) A racing association may not offer a group bet unless the format associated with the particular group bet wagering event is first approved by the executive secretary. The request must be made in writing at least three days prior to the commencement of public wagering on the proposed group bet and the licensee may not offer public wagering on the proposed group bet until written approval of the executive secretary is issued. In approving any request of a racing association related to a group bet, the executive secretary may impose such conditions as are consistent with the best interests of racing and the interests of the wagering public.

     (3) In each race in which the group bet is offered, the association shall designate one horse that shall not be a member of either group (usually the morning line favorite) and designate the remaining horses as members of one of two groups, Group A and Group B. The horses comprising each group shall number two or more horses and the number of horses in each group need not be the same, except as provided in subsection (8)(c) or (d) of this section. Each horse in a race where the group bet is offered must be a member of Group A, a member of Group B, or the sole nongroup horse.

     (4) In each race in which the group bet is offered, there shall be a win payoff for bettors selecting the winning participant in standard win betting and, in the event a member of one of the groups wins the race, a group bet win payout for those bettors wagering on the winning group. If the nongroup horse wins the race, there shall be no payout for the group bet.

     (5) The identity of the nongroup horse and the members of Group A and Group B shall be disseminated in the track program. This information may also be disseminated by the track announcer, on television monitors and, where applicable, by authorized advance deposit wagering service providers.

     (6) The minimum bet for the group bet is the same as the minimum bet to win. The amount bet on Group A and Group B shall be allocated among the members of the respective group in proportion to the amount bet on such member to win in standard win betting. Allocations may be made in fractional amounts less than the minimum permissible bet to win.

     (7) The payout for a winning group bet shall be the same regardless of which member of the group is the race winner. The probable and actual payoff for a winning group bet on Group A or Group B shall be displayed in a similar manner as the probable and actual payout for a standard win bet.

     (8) In the event of scratches in a race with a group bet, the following procedure will be followed:

     (a) In the event that the nongroup horse is scratched or declared a nonstarter, group betting shall cease and all wagers on both groups refunded.

     (b) In the event of a scratch or a declaration of nonstarter of all of the members of a group, group betting shall cease and all wagers on both groups shall be refunded.

     (c) In the event of a scratch or declaration of nonstarter of a member of a group, moneys previously allocated to the scratched runner or nonstarter shall be reallocated amongst the remaining member or members of that group.

     (d) In the event of a scratch or declaration of nonstarter of one or more horses in a group resulting in only one horse remaining in that group, the remaining horse in that group shall remain a valid betting interest and no refund will be granted.

     (9) In the event of a dead heat to win involving two or more members of the same group, the group bet payout shall be calculated in the same manner as if there was one winner of the race and such winner was a member of such group. In the event of a dead heat to win involving the nongroup horse and one or more members of either group, or one or more members of different groups, the group bet payout shall be determined in the same manner as the calculation of the win payoff, i.e., by dividing the net win wagering pool.

     (10) If circumstances occur which are not addressed by these rules, they shall be resolved by the board of stewards in a manner that is consistent with this rule and in accord with accepted parimutuel practices. Decisions regarding the group bet made by the board of stewards shall be final.

[]