Original Notice.

     Preproposal statement of inquiry was filed as WSR 07-21-082.

     Title of Rule and Other Identifying Information: Chapter 260-48 WAC, Mutuels.

     Hearing Location(s): Auburn City Council Chambers, 25 West Main, Auburn, WA 98002, on August 14, 2008, at 9:30 a.m.

     Date of Intended Adoption: August 14, 2008.

     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 August 11, 2008.

     Assistance for Persons with Disabilities: Contact Patty Sorby, by August 11, 2008, TTY (360) 459-6462.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The purpose of the proposal is to (1) add several new sections to this chapter to address defining terms applicable to this chapter, requiring approval of all new forms of betting, regulating parimutuel cash vouchers, and other stored value instruments and systems, and allowing quinfecta wagering (the first five finishers); (2) making changes to the process for patrons to file a complaint for payment if a parimutuel ticket is lost or stolen or if the association withholds payment or refuses to cash a wager, and how to address claims of payment errors; and (3) to make minor changes to the other sections in this chapter so they are more clearly understandable. Changes are being made to nearly every section in this chapter.

     Reasons Supporting Proposal: The new section[s] are need[ed] to better explain the rules and to provide avenues for investigations and decision[s] regarding claims for payment. The proposal also offers a new form of wagering requested by Emerald Downs. The remaining changes address making our rules easier to understand and to comply with.

     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.

May 20, 2008

R. J. Lopez

Deputy Secretary

OTS-1372.3

NEW SECTION
WAC 260-48-490   Definitions.   (1) "Common pool wagering." The inclusion of wagers placed at guest association locations and secondary parimutuel organizations (SPMO) into a common parimutuel pool for the purpose of display of wagering information and calculation of payoffs on winning wagers.

     (2) "Guest association." An association approved to offer simulcast races and parimutuel wagering on races conducted at other racetracks.

     (3) "Host association." An association where live racing and parimutuel wagering are conducted and on which parimutuel wagering is conducted by guest associations or satellite locations.

     (4) "Parimutuel system." The hardware, software and communications equipment used to record wagers, calculate payouts for winning wagers, and transmit wagering transactions and parimutuel pool data for display to patrons and to communicate with other parimutuel systems linked to facilitate common pool wagering.

     (5) "Parimutuel wagering." A form of wagering on the outcome of a horse race in which all wagers are pooled and held by a parimutuel pool host for distribution of the total amount, less the deductions authorized by law, to holders of tickets on the winning contestants.

     (6) "Secondary parimutuel organization (SPMO)." An entity other than a licensed association that offers and accepts parimutuel wagers. This may include a satellite location (off-track wagering) or an advance deposit wagering service provider.

     (7) "Self-service terminal." A computerized wagering device that allows the patron to wager by use of a touch activated screen using account cards, vouchers, winning tickets and cash.

     (8) "Simulcast." Live video and audio transmission of a race and parimutuel information for the purpose of parimutuel wagering at locations other than a host association.

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     (2) Parimutuel wagering utilizes a parimutuel system to pool wagers. The parimutuel system may be located on property of the association or may, subject to compliance with applicable law and these rules, reside at another location.

     (3) Wagering may be accepted by a separate parimutuel system in this or other jurisdictions, and combined via communication between parimutuel systems.

     (4) The commission may enter into multijurisdictional agreements with other regulatory authorities to facilitate certification of compliance with requirements by, and licensing of, parimutuel companies (including their employees), entities providing services for simulcasting and common pool wagering, secondary parimutuel organizations, and advance deposit wagering systems. Such agreements must, at a minimum, ensure certification and licensing requirements comparable to this jurisdiction.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-500, filed 4/19/96, effective 6/11/96.]

     (2) The association ((shall)) must provide at the request of the commission a list of the licensed individuals afforded access to parimutuel records and equipment at the wagering facility.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-510, filed 4/19/96, effective 6/11/96.]

     (1) To be deemed a valid parimutuel ticket, ((such)) the ticket ((shall)) must have been issued by a parimutuel ticket machine operated by the association and recorded as a ticket entitled to a share of the parimutuel pool((, and contain imprinted information as to)). The parimutuel ticket must also contain the following:

     (a) The name of the association operating the meeting((.));

     (b) A unique identifying number or code((.));

     (c) ((Identification of)) The terminal at which the ticket was issued((.));

     (d) ((A designation of the performance for which)) The date that the wagering transaction was issued((.));

     (e) The race number ((for which the pool is conducted.));

     (f) The type or types of wager(s) ((represented.));

     (g) The number or numbers representing the betting interests ((for which the wager is recorded.)); and

     (h) The amount or amounts of the ((contributions to)) wagers into the parimutuel pool or pools for which the ticket is evidence.

     (2) No parimutuel ticket recorded or reported as ((previously)) paid, cancelled, or nonexistent ((shall)) will be ((deemed)) considered a valid parimutuel ticket ((by the association)).

     (3) ((Every)) The association ((shall)) must maintain a record of ((outstanding)) all winning parimutuel tickets, ((which represent the winning tickets)) not presented for payment. A record of ((such)) these tickets ((so)) when cashed ((shall)) must be retained for a period of ((thirty)) twenty-four months from the date ((they were)) cashed. This record ((shall)) will be made available for inspection by the commission or its authorized representative ((upon request)) when requested.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-520, filed 4/19/96, effective 6/11/96.]

     (2) No parimutuel ticket may be sold on a race for which wagering has already been closed and ((no)) the association ((shall be)) is not responsible for ticket sales entered into but not completed by issuance of a ticket before the ((totalisator)) parimutuel system is closed for wagering ((on such race)).

     (3) Parimutuel tickets may be exchanged or cancelled prior to the running of a race based upon the written policies of the association. Such ((policy shall)) policies must be filed with the commission.

     (4) Payment on winning parimutuel wagers ((shall)) will be made on the basis of the order of finish as ((purposely)) posted and declared "official." Any subsequent change in the order of finish or award of purse money as may result from a subsequent ruling by the stewards or commission ((shall)) will in no way affect the parimutuel payoff. If an error in the posted order of finish or payoff figures is discovered, the official order of finish or payoff prices may be corrected and an announcement concerning the change ((shall)) will be made to the public.

     (5) The association ((shall have)) has no obligation to enter a wager into a betting pool if unable to do so due to equipment failure.

     (6) No person under the age of ((18 shall)) eighteen may purchase or cash any parimutuel ticket. No employee of the association ((shall)) may knowingly sell to or cash for a person under the age of ((18)) eighteen any parimutuel ticket. Unattended persons under the age of ((18)) eighteen are not permitted in wagering areas.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-530, filed 4/19/96, effective 6/11/96.]

     (4) If the executive secretary denies the claim, the claimant may request a hearing before the commission as provided in WAC 260-08-675.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-550, filed 4/19/96, effective 6/11/96.]

     (1) In the event the error results in an overpayment to the ticket holders the association ((shall)) will be responsible for such payment.

     (2) In the event the error results in an underpayment to tickets holders:

     (a) The association ((shall)) will accept timely claims for such underpayment, ((shall)) investigate such claims and ((shall)) pay each claim, or a part thereof, ((which it)) that the association determines to be valid, and ((shall)) will notify the claimant if the claim is rejected as invalid.

     (b) Any person whose claim is ((rejected)) denied by the association may, within ((15)) fifteen days from the date the ((rejection)) denial notice was ((received)) served, request the ((commission)) executive secretary to determine the validity of the claim. The failure to file such request with the ((commission)) executive secretary within the ((said time shall)) fifteen days will constitute a waiver of the claim.

     (c) ((A hearing shall be held on each such rejected claim timely filed with the commission. The commission shall give notice of such hearing to the claimant and the association. The commission may)) The executive secretary will investigate each claim denied, and determine ((a)) the validity of the claim ((to be valid, in whole or in part, and thereafter order the association to pay the claimant the amount of the claim determined to be valid, or may deny the claim in whole or in part. Any such determination shall be final and binding to all parties)). Within seven days of service of the executive secretary's determination, the claimant or the association may challenge the executive secretary's determination by requesting a hearing before the commission as provided in WAC 260-08-675.

     (d) If no valid claims are presented, or after all filed claims have been resolved, the amount of the underpayment or any part thereof, ((shall)) will be applied to the next available corresponding pool (i.e. exacta pools). If there is no similar pool the underpayment ((shall)) will be applied to the win pool of the first race. Such payment ((shall)) will be publicly announced prior to this day.

     (((3) Any claim not filed with the association within 30 days inclusive of the date on which the underpayment was publicly announced shall be deemed waived and the association shall have no further liability therefor.))

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-560, filed 4/19/96, effective 6/11/96.]

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-570, filed 4/19/96, effective 6/11/96.]

     (2) The association may display the probable payoff or amounts wagered, in total and on each betting interest, for other pools ((may be displayed)) to the wagering public at intervals and in a manner approved by the commission.

     (3) Official results and payoffs must be displayed ((upon)) immediately after each race ((being)) is declared official.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-580, filed 4/19/96, effective 6/11/96.]

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-590, filed 4/19/96, effective 6/11/96.]

     (a) Win pools, exacta pools, and first-half double pools, offered in races in which the number of betting interests has been reduced to fewer than two.

     (b) Place pools and quinella pools, trifecta pools and first-half twin trifecta pools, offered in races in which the number of betting interests has been reduced to fewer than three.

     (c) Show pools, superfecta pools offered in races in which the number of betting interests has been reduced to fewer than four.

     (((d) Superfecta pools and first half twin trifecta pools, offered in races in which the number of betting interests has been reduced to fewer than six.

     (e) Trifecta pools, in races in which the number of betting interests has been reduced to fewer than five.))

     (2) Authorized refunds ((shall)) will be paid ((upon presentation and surrender of the affected parimutuel ticket)) when the parimutuel ticket is presented and surrendered.

[Statutory Authority: RCW 67.16.040. 00-06-070, § 260-48-600, filed 3/1/00, effective 4/1/00; 99-06-026, § 260-48-600, filed 2/23/99, effective 3/26/99; 96-10-014, § 260-48-600, filed 4/19/96, effective 6/11/96.]

     (2) For the purpose of price calculations only, coupled entries and mutuel fields ((shall)) will be calculated as a single finisher, using the finishing position of the leading horse in that coupled entry or mutuel field to determine order of placing. This rule ((shall)) will apply to all circumstances, including situations involving a dead heat, except as otherwise provided by these rules.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-610, filed 4/19/96, effective 6/11/96.]

     (1) ((Shall)) Must offer win wagering on all races with three or more betting interests. May offer win wagering on all races with two betting interests.

     (2) ((Shall)) Must offer place wagering on all races with four or more betting interests.

     (3) ((Shall)) Must offer show wagering on all races with five or more betting interests.

     (4) May offer quinella wagering on all races with three or more betting interests.

     (5) May offer exacta wagering on all races with two or more betting interests.

     (6) May offer trifecta wagering on all races with three or more betting interests.

     (7) May offer twin trifecta wagering on all races with ((seven)) six or ((more)) less betting interests.

     (8) May offer superfecta wagering on all races with four or more betting interests.

     (9) May offer quinfecta wagering on all races with five or more betting interests.

[Statutory Authority: RCW 67.16.020. 04-07-077, § 260-48-620, filed 3/15/04, effective 4/15/04. Statutory Authority: RCW 67.16.040. 00-06-070, § 260-48-620, filed 3/1/00, effective 4/1/00; 99-06-026, § 260-48-620, filed 2/23/99, effective 3/26/99; 96-10-014, § 260-48-620, filed 4/19/96, effective 6/11/96.]

     (2) An association may suspend previously approved forms of wagering with the prior approval of the commission. Any carryover will be held until the suspended from of wagering is reinstated. An association may request approval of a form of wagering or separate wagering pool for a specific performance.

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     (([(2)] Coincident with)) (2) Upon the start of any simulcast race, the association ((shall be)) is responsible to ensure that wagering is closed for the race ((after which time)). Once wagering is closed, no parimutuel tickets ((shall)) will be sold for that race.

     (3) The association ((shall)) must maintain ((in good order)) an electrical or other system approved by the commission for accurately locking ((of)) all parimutuel machines.

[Statutory Authority: RCW 67.16.040. 03-07-057, § 260-48-630, filed 3/14/03, effective 4/14/03; 96-10-014, § 260-48-630, filed 4/19/96, effective 6/11/96.]

     (a) The name of the complainant;

     (b) The nature of the complaint;

     (c) The name of the persons, if any, against whom the complaint was made;

     (d) The date of the complaint;

     (e) The action taken or proposed to be taken, if any, by the association.

     (2) The association ((shall)) will submit every complaint report to the ((commission)) executive secretary within ((48)) forty-eight hours ((after)) of the complaint ((was made)).

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-640, filed 4/19/96, effective 6/11/96.]

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-650, filed 4/19/96, effective 6/11/96.]

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-660, filed 4/19/96, effective 6/11/96.]

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-670, filed 4/19/96, effective 6/11/96.]

     (2) An association may, with the prior approval of the commission, issue special parimutuel cash vouchers as incentives or promotional prizes, and may restrict the use of those vouchers to the purchase of parimutuel wagers.

     (3) The tote system transaction record for all parimutuel vouchers will include the following:

     (a) The voucher identification number in subsequent parimutuel transactions;

     (b) Any parimutuel wagers made from a voucher will identify the voucher by identification number.

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     (2) Any request for approval of a stored value instrument or system will include a detailed description of the standards utilized:

     (a) To identify the specific stored value instrument or account in the parimutuel system wagering transaction record;

     (b) To verify the identity and business address of the person(s) obtaining, holding, and using the stored value instrument or system; and

     (c) To record and maintain records of deposits, credits, debits, transaction numbers, and account balances involving the stored value instruments or accounts.

     (3) A stored value instrument or system will prevent wagering transactions in the event such transactions would create a negative balance in an account, and will not automatically transfer funds into a stored value instrument or account without the direct authorization of the person holding the instrument or account.

     (4) Any request for approval of a stored value instrument or system will include all records and reports relating to all transactions, account records, and customer identification and verification in hard copy or in an electronic format approved by the commission. All records will be retained for a period of not less than three years.

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     (2)))(a) Except as otherwise authorized by the commission, a request for simulcasting must be filed on a form provided by the commission not later than seven business days before the first simulcast race covered by the request. The executive secretary may approve a request for simulcasting, subject to rescission of the approval by the commission at its next regular meeting.

     (b) The application must include at a minimum:

     (i) The simulcast agreement between the host and guest association;

     (ii) The approval by the horsemen's association represented at the host and guest site;

     (iii) The alternate jurisdiction approval;

     (iv) When acting as the host site, approval also requires a list of all locations that will be receiving and/or wagering on the races under the guest site; and

     (v) The executive secretary may require the association to submit additional information if the executive secretary determines the additional information is necessary to effectively evaluate the request.

     (((3))) (2) A class 1 racing association ((shall)) may not ((be allowed to)) simulcast until the following are filed with the commission.

     (a) A written agreement with the local horsemen's group.

     (b) A description of how simulcast purse moneys are to be maintained.

     (c) A description of how breeder awards are to be maintained.

     (d) A monthly statement showing amounts contributed to and balance in the purse fund and the breeder's awards fund. This statement ((shall)) will be filed with the commission no later than ((ten)) fifteen days after the end of each month.

     (((4))) (3) The approval of any particular simulcasting or wagering on particular simulcast races or programs is not binding on the commission for other requests for approval of simulcasting or wagering on simulcast races or programs.

     (((5))) (4) In determining whether to approve a ((multijurisdiction)) common pool which does not include the host track or which includes contests from more than one association, the commission ((shall)) will consider and may approve use of a bet type which is not utilized at the host track, application of a takeout rate not in effect at the host track, or other factors which are presented to the commission.

     (((6))) (5) No class 1 racing association ((shall)) will enter a contractual agreement that is in violation of, or may be construed as waiving any provision of chapter 67.16 RCW, TITLE 260 WAC and any federal, state or local law.

     (((7))) (6) The mutuel manager or the mutuel manager's designee ((shall)) must be present on association grounds at all times that the class 1 racing association is accepting wagers on simulcast races. He/she ((shall)) will be responsible for communicating all errors or omissions regarding simulcast wagering to the board of stewards or the executive secretary if errors or omissions occur during nonlive racing periods.

     (((8))) (7) There ((shall)) must be a facsimile machine located in each mutuel area or tote room and a direct, private telephone line to be located in the tote room. Phone access to the tote room ((shall)) will not require routing through the switchboard.

     (((9) Every class 1 racing association shall file with the commission an annual report of its simulcast operations including financial data as specified by the commission.

     (10) Not less than thirty minutes)) (8) When necessary prior to the commencement of transmission of the performance of parimutuel contests for each day or night, the guest association ((shall)) will initiate a test program of its transmitter, encryption and decoding, and data communication to assure proper operation of the system.

     (((11))) (9) Washington intra-track breakage and minus pools ((shall)) will be prorated based on amounts wagered.

     (((12))) (10) The commission may permit adjustment of the takeout from the parimutuel pool so that the takeout rate in this jurisdiction is identical to that at the host jurisdiction, or identical to that of other jurisdictions participating in a merged pool.

     (((13))) (11) Any surcharges or withholdings in addition to the takeout ((shall)) will only be applied in the jurisdiction otherwise imposing such surcharges or withholdings.

     (((14))) (12) Where takeout rates in the merged pool are not identical, the net price calculation may be the method by which the differing takeout rates are applied.

     (((15))) (13) Parimutuel pools may be combined for computing odds and calculating payouts but will be held separate for auditing and all other purposes.

[Statutory Authority: RCW 67.16.020. 04-21-053, § 260-48-700, filed 10/18/04, effective 11/18/04. Statutory Authority: RCW 67.16.040. 99-06-026, § 260-48-700, filed 2/23/99, effective 3/26/99.]

     (2) Rules established in the jurisdiction of the host association designated for a parimutuel pool ((shall)) will apply.

     (3) The guest association and all authorized receivers ((shall)) will conduct parimutuel wagering pursuant to the applicable jurisdiction rules.

     (4) Class 1 racing associations which import simulcast races and propose to offer types of wagers other than those currently defined in chapter 260-48 WAC, ((shall)) will submit to the commission a copy of the host jurisdiction's rule governing the wager.

     (5) If, after the close of wagering, a guest racetrack's wagers cannot be successfully merged in the ((multijurisdictional)) common pool via data circuit or manual merge, the mutuel manager ((shall)) will:

     (a) Refund the pools not successfully merged after announcing to the public that the pools were not merged successfully and the pools will be refunded; or

     (b) Pay the winning wagers based on the prices established at the host racetrack.

     The mutuel manager ((shall)) will report the failure to merge any common pool to the ((commission)) board of stewards or the executive secretary if the failure to merge any common pool occurs during nonlive racing. The report must be ((made on a form prescribed by the executive secretary and be)) filed no later than the day after the date the common pool failed to merge.

     In the event the host association has offered a wager not covered by chapter 260-48 WAC, the Association of Racing Commissioners International model rules regarding such wager ((shall)) will govern. Information regarding this emergency procedure ((shall)) will be posted throughout the class 1 racing association facility and published in its racing program.

     (6) An authorized class 1 racing association when acting as a guest association ((shall)) will provide:

     (a) ((A voice communication system between each guest association and the host association, providing timely voice contact among the commission designees and parimutuel departments.

     (b))) Parimutuel terminals and odds displays, modems and equipment enabling parimutuel data transmissions, and data communications between the host and guest associations.

     (((c))) (b) Adequate transmitting and receiving equipment of acceptable broadcast quality, which ((shall)) will not interfere with the closed circuit TV system of the host association for providing any host facility patron information.

[Statutory Authority: RCW 67.16.020. 04-21-053, § 260-48-710, filed 10/18/04, effective 11/18/04. Statutory Authority: RCW 67.16.040. 99-06-026, § 260-48-710, filed 2/23/99, effective 3/26/99.]

     (2) Unless otherwise permitted by the commission, every simulcast will contain in its video content the date, a digital display of actual time of day, the host facility's name from where it emanates and the number of the contest being displayed.

     (3) The host association ((shall)) will maintain such security controls including encryption over its uplink and communications systems as directed or approved by the commission.

     (4) Any contract of ((multijurisdiction)) common pools entered into by the association ((shall)) will contain a provision to the effect that if, for any reason, it becomes impossible to successfully merge the bets placed in another jurisdiction into the ((multijurisdiction)) common pool formed by the class 1 racing association, or if, for any reason, the commission's or the association's representative determines that attempting to effect transfer of pool data from the guest ((jurisdiction)) association may endanger the association's wagering pool, the association ((shall)) will have no liability for any measures taken which may result in the guest's wagers not being accepted into the pool.

     (5) If for any reason it becomes impossible to successfully merge pool data into the ((multijurisdiction)) common pool of the class 1 racing association, or it is determined that attempting to effect transfer of pool data from the guest jurisdiction may endanger the class 1 racing associations wagering pool, or cause an unreasonable delay of the racing program, the class 1 racing association's ((representative shall)) mutuel manager or designee will determine under the circumstances whether to manually merge guests pools, exclude guests pools or delay the Washington pools.

     (6) Scratched horses ((must)) will be communicated via facsimile machine, telephone or other approved method by the host mutuel manager to all guest mutuel managers except when the operating ((totalisator)) parimutuel system protocol performs these functions automatically or when the information is disseminated to the wagering network via satellite or video display. The host mutuel manager ((must)) will communicate program changes to all guest sites via facsimile machine, telephone or other approved method.

[Statutory Authority: RCW 67.16.020. 04-21-053, § 260-48-720, filed 10/18/04, effective 11/18/04. Statutory Authority: RCW 67.16.040. 99-06-026, § 260-48-720, filed 2/23/99, effective 3/26/99.]

     (2) Either standard price or net price calculation procedures ((shall)) will be used to calculate wagering pools((;)). However((,)) net price calculation ((shall)) will be used any time international wagering is conducted.

     (a) Standard price calculation procedure:

SINGLE PRICE POOL (WIN POOL)
Gross Pool	=	Sum of Wagers on all Betting Interests - Refunds
Takeout	=	Gross Pool x Percent Takeout
Net Pool	=	Gross Pool - Takeout
Profit	=	Net Pool - Gross Amount Bet on Winner
Profit Per Dollar	=	Profit/Gross Amount Bet on Winner
$1 Unbroken Price	=	Profit Per Dollar + $1
$1 Broken Price	=	$1 Unbroken Price Rounded Down to the Break Point
Total Payout	=	$1 Broken Price x Gross Amount Bet on Winner
Total Breakage	=	Net Pool - Total Payout

PROFIT SPLIT (PLACE POOL)

Profit is net pool less gross amount bet on all place finishers. Finishers split profit 1/2 and 1/2 (place profit), then divide by gross amount bet on each place finisher for two unique prices.

PROFIT SPLIT (SHOW POOL)

Profit is net pool less gross amount bet on all show finishers. Finishers split profit 1/3 and 1/3 and 1/3 (show profit), then divide by gross amount bet on each show finisher for three unique prices.

     (b) Net price calculation procedure:

SINGLE PRICE POOL (WIN POOL)
Gross Pool	=	Sum of Wagers on all Betting Interests - Refunds
Takeout	=	Gross Pool x Percent Takeout for each Source
Net Pool	=	Gross Pool - Takeout
Net Bet on Winner	=	Gross Amount Bet on Winner x (1 - Percent Takeout)
Total Net Pool	=	Sum of all Sources Net Pools
Total Net Bet on Winner	=	Sum of all Sources Net Bet on Winner
Total Profit	=	Total Net Pool - Total Net Bet on Winner
Profit Per Dollar	=	Total Profit/Total Net Bet on Winner
$1 Unbroken Base Price	=	Profit Per Dollar + $1 for each Source
$1 Unbroken Price	=	$1 Unbroken Base Price x (1 - Percent Takeout)
$1 Broken Price	=	$1 Unbroken Price Rounded Down to the Break Point
Total Payout	=	$1 Broken Price x Gross Amount Bet on Winner
Total Breakage	=	Net Pool - Total Payout

PROFIT SPLIT (PLACE POOL)

Total profit is the total net pool less the total net amount bet on all place finishers. Finishers split total profit 1/2 and 1/2 (place profit), then divide by total net amount bet on each place finisher for two unique unbroken base prices.

PROFIT SPLIT (SHOW POOL)

Total profit is the total net pool less the total net amount bet on all show finishers. Finishers split total profit 1/3 and 1/3 and 1/3 (show profit), then divide by total net amount bet on each show finisher for three unique unbroken base prices.

     (3) If a profit split results in only one covered winning betting interest or combinations it ((shall)) will be calculated the same as a single price pool.

     (4) The individual pools outlined in these rules may be given alternative names by each association, provided prior approval is obtained from the commission.

     (5) In the event a minus pool occurs in any parimutuel pool, the expense of said minus pool ((shall)) will be borne by the association.

     (6) The association ((must)) will pay to the holder of any ticket or tickets entitling the holder to participate in the distribution of a parimutuel pool the amount wagered by such holder plus a minimum of five percent thereof. This requirement is unaffected by the existence of a parimutuel pool which does not contain sufficient money to distribute said five percent to all persons holding such tickets.

     (7) No person or corporation ((shall)) will directly or indirectly purchase parimutuel tickets or participate in the purchase of any part of a parimutuel pool for another for hire or for any gratuity.

[Statutory Authority: RCW 67.16.020 and 67.16.040. 06-05-038, § 260-48-800, filed 2/9/06, effective 3/12/06. Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-800, filed 4/19/96, effective 6/11/96.]

     (2) The net win pool ((shall)) will be distributed as a single price pool to winning wagers in the following precedence, based upon the official order of finish:

     (a) To those whose selection finished first; but if there are no such wagers, then

     (b) To those whose selection finished second; but if there are no such wagers, then

     (c) To those whose selection finished third; but if there are no such wagers, then

     (d) The entire pool ((shall)) will be refunded on win wagers for that race.

     (3) If there is a dead heat for first involving:

     (a) Horses representing the same betting interest, the win pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Horses representing two or more betting interests, the win pool ((shall)) will be distributed as a profit split.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-810, filed 4/19/96, effective 6/11/96.]

     (2) The net place pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:

     (a) If horses of a coupled entry or mutuel field finished in the first two places, as a single price pool to those who selected the coupled entry or mutuel field; otherwise

     (b) As a profit split to those whose selection is included within the first two finishers; but if there are no such wagers on one of those two finishers, then

     (c) As a single price pool to those who selected the one covered betting interest included within the first two finishers; but if there are no such wagers, then

     (d) As a single price pool to those who selected the third-place finisher; but if there are no such wagers, then

     (e) The entire pool ((shall)) will be refunded on place wagers for that race.

     (3) If there is a dead heat for first involving:

     (a) Horses representing the same betting interest, the place pool ((shall)) will be distributed as a single price pool.

     (b) Horses representing two or more betting interests, the place pool ((shall)) will be distributed as a profit split.

     (4) If there is a dead heat for second involving:

     (a) Horses representing the same betting interest, the place pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Horses representing two or more betting interests, the place pool is divided with one-half of the profit distributed to place wagers on the betting interest finishing first and the remainder is distributed equally amongst place wagers on those betting interests involved in the dead heat for second.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-820, filed 4/19/96, effective 6/11/96.]

     (a) If horses of a coupled entry or mutuel field finished in the first three places, as a single price pool to those who selected the coupled entry or mutuel field; otherwise

     (b) If horses of a coupled entry or mutuel field finished as two of the first three finishers, the profit is divided with two-thirds distributed to those who selected the coupled entry or mutuel field and one-third distributed to those who selected the other betting interest included within the first three finishers; otherwise

     (c) As a profit split to those whose selection is included within the first three finishers; but if there are no such wagers on one of those three finishers, then

     (d) As a profit split to those who selected one of the two covered betting interests included within the first three finishers; but if there are no such wagers on two of those three finishers, then

     (e) As a single price pool to those who selected the one covered betting interest included within the first three finishers; but if there are no such wagers, then

     (f) As a single price pool to those who selected the fourth-place finisher; but if there are no such wagers, then

     (g) The entire pool ((shall)) will be refunded on show wagers for that race.

     (2) If there is a dead heat for first involving:

     (a) Two horses representing the same betting interest, the profit is divided with two-thirds distributed to those who selected the first-place finishers and one-third distributed to those who selected the betting interest finishing third.

     (b) Three horses representing a single betting interest, the show pool ((shall)) will be distributed as a single price pool.

     (c) Horses representing two or more betting interests, the show pool ((shall)) will be distributed as a profit split.

     (3) If there is a dead heat for second involving:

     (a) Horses representing the same betting interest, the profit is divided with one-third distributed to those who selected the betting interest finishing first and two-thirds distributed to those who selected the second-place finishers.

     (b) Horses representing two betting interests, the show pool ((shall)) will be distributed as a profit split.

     (c) Horses representing three betting interests, the show pool is divided with one-third of the profit distributed to show wagers on the betting interest finishing first and the remainder is distributed equally amongst show wagers on those betting interests involved in the dead heat for second.

     (4) If there is a dead heat for third involving:

     (a) Horses representing the same betting interest, the show pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Horses representing two or more betting interests, the show pool is divided with two-thirds of the profit distributed to show wagers on the betting interests finishing first and second and the remainder is distributed equally amongst show wagers on those betting interests involved in the dead heat for third.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-830, filed 4/19/96, effective 6/11/96.]

     (2) The net double pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:

     (a) As a single price pool to those whose selection finished first in each of the two races; but if there are no such wagers, then

     (b) As a profit split to those who selected the first-place finisher in either of the two races; but if there are no such wagers, then

     (c) As a single price pool to those who selected the one covered first-place finisher in either race; but if there are no such wagers, then

     (d) As a single price pool to those whose selection finished second in each of the two races; but if there are no such wagers, then

     (e) The entire pool ((shall)) will be refunded on double wagers for those races.

     (3) If there is a dead heat for first in either of the two races involving:

     (a) Horses representing the same betting interest, the double pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Horses representing two or more betting interests, the double pool ((shall)) will be distributed as a profit split if there is more than one covered winning combination.

     (4) Should a betting interest in the first-half of the double be scratched prior to the close of wagering for the first double race ((being declared official)) or a betting interest declared a nonstarter, all money wagered on combinations including the scratched betting interest ((shall)) will be deducted from the double pool and refunded.

     (5) Should a betting interest in the second-half of the double be scratched prior to the close of wagering on the first double race, all money wagered on combinations including the scratched betting interest ((shall)) will be deducted from the double pool and refunded.

     (6) Should a betting interest in the second-half of the double be scratched after the close of wagering on the first double race, or declared a nonstarter, all wagers combining the winner of the first race with the scratched betting interest in the second race ((shall)) will be allocated a consolation payoff. In calculating the consolation payoff the net double pool ((shall)) will be divided by the total amount wagered on the winner of the first race and an unbroken consolation price obtained. The broken consolation price is multiplied by the dollar value of wagers on the winner of the first race combined with the scratched betting interest to obtain the consolation payoff. Breakage is not declared in this calculation. The consolation payoff is deducted from the net double pool before calculation and distribution of the winning double payoff. Dead heats including separate betting interests in the first race ((shall)) will result in a consolation payoff calculated as a profit split.

     (7) If either of the double races are cancelled prior to the first double race, or the first double race is declared "no ((race)) contest," the entire double pool ((shall)) will be refunded on double wagers for those races.

     (8) If the second double race is cancelled or declared "no ((race)) contest" after the conclusion of the first double race, the net double pool ((shall)) will be distributed as a single price pool to wagers selecting the winner of the first double race. In the event of a dead heat involving separate betting interests, the net double pool ((shall)) will be distributed as a profit split.

     (9) Before the running of the second double race the association ((shall)) will announce and/or post the payoff of each combination coupled with the winner of the first half of the double race.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-840, filed 4/19/96, effective 6/11/96.]

     (2) The net pick three pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:

     (a) As a single price pool to those whose selection finished first in each of the three races; but if there are no such wagers, then

     (b) As a single price pool to those who selected the first-place finisher in any two of the three races; but if there are no such wagers, then

     (c) As a single price pool to those who selected the first-place finisher in any one of the three races; but if there are no such wagers, then

     (d) The entire pool ((shall)) will be refunded on pick three wagers for those races.

     (3) If there is a dead heat for first in any of the three races involving:

     (a) Horses representing the same betting interest, the pick three pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Horses representing two or more betting interests, the pick three pool ((shall)) will be distributed as follows:

     (i) As a profit split to those whose selection finished first in each of the three races, if there are no such wagers,

     (ii) As a single price pool to those who selected the first place finisher in any two of the three races, if there are no such wagers,

     (iii) As a single price pool to those who selected the first place finisher in any one of the three races, if there are no such wagers,

     (iv) The entire pool ((shall)) will be refunded on pick three wagers for those races.

     (4) Should a betting interest in any of the three pick three races be scratched, the actual favorite, as evidenced by total amounts wagered in the win pool at the close of wagering on that race, ((shall)) will be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the win pool total for two or more favorites is identical, the substitute selection ((shall)) will be the betting interest with the lowest program number. The ((totalisator shall)) parimutuel system will produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

     (5) If all three pick three races are cancelled or declared "no ((race)) contest," the entire pool ((shall)) will be refunded on pick three wagers for those races.

     (6) If one or two of the pick three races are cancelled or declared "no ((race)) contest," the pick three pool will remain valid and ((shall)) will be distributed in accordance with subsection 2 of this rule.

     (7) Before the running of the third pick three race the association ((shall)) will announce and/or post the payoff of each combination coupled with the winners of the first and second races of the pick three.

     (8) The pick three may be given a distinctive name to be selected by the association conducting such races, such as "TRIPLE," subject to the prior approval of the commission.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-850, filed 4/19/96, effective 6/11/96.]

     (2) The net quinella pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:

     (a) If horses of a coupled entry or mutuel field finish as the first two finishers, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

     (b) As a single price pool to those whose combination finished as the first two betting interests; but if there are no such wagers, then

     (c) As a profit split to those whose combination included either the first- or second-place finisher; but if there are no such wagers on one of those two finishers, then

     (d) As a single price pool to those whose combination included the one covered betting interest included within the first two finishers; but if there are no such wagers, then

     (e) The entire pool ((shall)) will be refunded on quinella wagers for that race.

     (3) If there is a dead heat for first involving:

     (a) Horses representing the same betting interest, the quinella pool ((shall)) will be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

     (b) Horses representing two betting interests, the quinella pool ((shall)) will be distributed as if no dead heat occurred.

     (c) Horses representing three or more betting interests, the quinella pool ((shall)) will be distributed as a profit split.

     (4) If there is a dead heat for second involving horses representing the same betting interest, the quinella pool ((shall)) will be distributed as if no dead heat occurred.

     (5) If there is a dead heat for second involving horses representing two or more betting interests, the quinella pool ((shall)) will be distributed to wagers in the following precedence, based upon the official order of finish:

     (a) As a profit split to those combining the winner with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

     (b) As a single price pool to those combining the winner with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

     (c) As a profit split to those combining the betting interests involved in the dead heat for second; but if there are no such wagers, then

     (d) As a profit split to those whose combination included the winner and any other betting interest and wagers selecting any of the betting interests involved in the dead heat for second; but if there are no such wagers, then

     (e) The entire pool ((shall)) will be refunded on quinella wagers for that race.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-860, filed 4/19/96, effective 6/11/96.]

     (2) The net exacta pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:

     (a) If horses of a coupled entry or mutuel field finish as the first two finishers, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

     (b) As a single price pool to those whose combination finished in correct sequence as the first two betting interests; but if there are no such wagers, then

     (c) As a profit split to those whose combination included either the first-place betting interest to finish first or the second-place betting interest to finish second; but if there are no such wagers on one of those two finishers, then

     (d) As a single price pool to those whose combination included the one covered betting interest to finish first or second in the correct sequence; but if there are no such wagers, then

     (e) The entire pool ((shall)) will be refunded on exacta wagers for that race.

     (3) If there is a dead heat for first involving:

     (a) Horses representing the same betting interest, the exacta pool ((shall)) will be distributed as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

     (b) Horses representing two or more betting interests, the exacta pool ((shall)) will be distributed as a profit split.

     (4) If there is a dead heat for second involving horses representing the same betting interest, the exacta pool ((shall)) will be distributed as if no dead heat occurred.

     (5) If there is a dead heat for second involving horses representing two or more betting interests, the exacta pool ((shall)) will be distributed to ticket holders in the following precedence, based upon the official order of finish:

     (a) As a profit split to those combining the first-place betting interest with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

     (b) As a single price pool to those combining the first-place betting interest with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

     (c) As a profit split to those wagers correctly selecting the winner for first-place and those wagers selecting any of the dead-heated betting interests for second-place; but if there are no such wagers, then

     (d) The entire pool ((shall)) will be refunded on exacta wagers for that race.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-870, filed 4/19/96, effective 6/11/96.]

     (2) The net trifecta pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:    

     (a) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

     (b) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then          

     (c) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

     (d) The entire pool ((shall)) will be refunded on trifecta wagers for that race.

     (3) If less than three betting interests finish and the race is declared official, payoffs will be made based upon the order of finish of those betting interests completing the race. The balance of any selection beyond the number of betting interests completing the race ((shall)) will be ignored.

     (4) If there is a dead heat for first involving:

     (a) Horses representing three or more betting interests, all of the wagering combinations selecting three betting interests which correspond with any of the betting interests involved in the dead heat ((shall)) will share in a profit split.

     (b) Horses representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place betting interest ((shall)) will share in a profit split.

     (5) If there is a dead heat for second, all of the combinations correctly selecting the winner combined with any of the betting interests involved in the dead heat for second ((shall)) will share in a profit split.

     (6) If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any of the betting interests involved in the dead heat for third ((shall)) will share in a profit split.

     (7) Trifecta wagering is prohibited on any race in which there is more than one coupled entry, except with written permission of the executive secretary.

     (8) Trifecta wagering is prohibited on any race in which there is a mutuel field.

[Statutory Authority: RCW 67.16.020. 04-07-077, § 260-48-890, filed 3/15/04, effective 4/15/04. Statutory Authority: RCW 67.16.040. 98-01-148, § 260-48-890, filed 12/19/97, effective 1/19/98; 96-10-014, § 260-48-890, filed 4/19/96, effective 6/11/96.]

     (2) Twin trifecta wagering may be conducted by Class A and B licensees at the discretion of the commission upon written application by an association.

     (3) After wagering closes for the first-half of the twin trifecta and commissions have been deducted from the pool, the net pool ((shall)) will then be divided into two separate pools: The first-half twin trifecta pool and the second-half twin trifecta pool. The percentage allocated to each pool must be approved by the commission.

     (4) In the first twin trifecta race only, winning wagers ((shall)) will be determined using the following precedence, based upon the official order of finish for the first twin trifecta race:

     (a) As a single price pool to those whose combination finished in the correct sequence as the first three betting interest; but if there are no such wagers, then

     (b) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

     (c) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

     (d) The entire twin trifecta pool for that day ((shall)) will be refunded on twin trifecta wagers for that race and the second-half ((shall)) will be canceled.

     (5) If no first-half twin trifecta ticket selects the first three finishers of that race in exact order, winning ticket holders ((shall)) will not receive any exchange tickets for the second-half twin trifecta pool. In such case, the second-half twin trifecta pool ((shall)) will be retained and added to any existing twin trifecta carry-over pool.

     (6) Winning tickets from the first-half of the twin trifecta ((shall)) will be exchanged for tickets selecting the first three finishers of the second-half of the twin trifecta. The second-half twin trifecta pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish for the second twin trifecta race:

     (a) As a single price pool, including any existing carry-over moneys, to those whose combination finished in correct sequence as the first three betting interest; but if there are no such tickets, then

     (b) The entire second-half twin trifecta pool for that race ((shall)) will be added to any existing carry-over moneys and retained for the corresponding second-half twin trifecta pool of the next consecutive race card.

     (7) Subject to subsection 19(e) of the twin trifecta rules, if a winning first-half twin trifecta ticket is not presented for cashing and exchange prior to the second-half twin trifecta race, the ticket holder may still collect the monetary value associated with the first-half twin trifecta pool but forfeits all rights to any distribution of the second-half twin trifecta pool.

     (8) Twin trifecta wagering is prohibited on any race in which there is a mutuel field, except with written permission of the executive secretary.

     (9) Twin trifecta wagering is prohibited on any race in which there is more than one coupled entry.

     (10) Should a betting interest in the first-half of the twin trifecta be scratched, those twin trifecta wagers including the scratched betting interest ((shall)) will be refunded.

     (11) Should a betting interest in the second-half of the twin trifecta be scratched, an announcement concerning the scratch ((shall)) will be made and a reasonable amount of time ((shall)) will be provided for exchange of tickets that include the scratched betting interest.

     (12) If there is a dead heat or multiple dead heats in either the first- or second-half of the twin trifecta, all twin trifecta wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, ((shall)) will be a winner. In the case of dead heat occurring in:

     (a) The first-half of the twin trifecta, the payoff ((shall)) will be calculated as a profit split

     (b) The second-half of the twin trifecta, the payoff ((shall)) will be calculated as a single price pool.

     (13) If either of the twin trifecta races are canceled prior to the first twin trifecta race, or the first twin trifecta race is declared "no ((race)) contest," the entire twin trifecta pool for that day ((shall)) will be refunded on twin trifecta wagers for that race and the second-half ((shall)) will be canceled.

     (14) If the second-half twin trifecta race is canceled or declared "no ((race)) contest," all exchange tickets and outstanding first-half winning twin trifecta tickets ((shall)) will be entitled to the net twin trifecta pool for that race as a single price pool, but not the twin trifecta carry-over. If there are no such tickets, the net twin trifecta pool ((shall)) will be distributed as described in subsections (4) of the twin trifecta rules.

     (15) If, due to a late scratch, the number of betting interests in the second-half of the twin trifecta is reduced to fewer than ((6)) 3, all exchange tickets and outstanding first-half winning tickets ((shall)) will be entitled to the second-half twin pool for that race as a single price pool, but not the twin trifecta carry-over.

     (16) If it be determined by the stewards that a horse has been prevented from racing because of the failure of the stall door of the starting gate to open (nonstarter) in the second-half of the twin trifecta only, there will be no refund or consolation payoff. The official order of finish as posted ((shall)) will be used to determine payoffs. This will not affect other pools for this race.

     (17) A written request for permission to distribute the twin trifecta carry-over on a specific race card may be submitted to the commission. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date of race card for the distribution.

     (18) Contrary to subsection (5) of the twin trifecta rules, during a race card designated to distribute the twin trifecta carry-over, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the twin trifecta. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets ((shall)) will be issued for combinations as described in subsection (4) of the twin trifecta rules.

     (19) Should the twin trifecta carry-over be designated for distribution on a specified date, the following precedence will be followed in determining winning tickets for the second-half of the twin trifecta after completion of the first-half of the twin trifecta:

     (a) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

     (b) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

     (c) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

     (d) As a single price pool to holders of valid exchange tickets.

     (e) As a single price pool to holders of outstanding first-half winning tickets.

     (20) The twin trifecta carry-over ((shall)) will be designated for distribution on a specified date and race card only under the following circumstances:

     (a) Upon written approval from the commission as provided in subsection (17) of the twin trifecta rules.

     (b) On the closing race card of the meet or split meet.

     (21) If, for any reason, the twin trifecta carry-over must be held over to the corresponding twin trifecta pool of the association's subsequent meet, the carry-over ((shall)) will be deposited in an interest-bearing account approved by the commission. The twin trifecta carry-over plus accrued interest ((shall)) will then be added to the second-half twin trifecta pool of the association's following meet.

     (22) If racing is canceled prior to the first-half of the twin trifecta on the closing race card of the meet or split meet, the carry-over will be held over in accordance with subsection (20) of the twin trifecta rules.

     (23) If racing is canceled after the running of the first-half but before the running of the second-half on the closing race card of the meet or split meet, the carry-over pool will be paid as a single price to holders of exchange tickets or outstanding winning tickets from the first-half.

     (24) Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of valid exchange tickets is prohibited. This ((shall)) will not prohibit necessary communications between ((totalisator)) parimutuel system and parimutuel department employees for processing of pool data.

     (25) The acceptance of a twin trifecta ticket by taking an issued ticket away from the window of the terminal from which it was issued ((shall)) will constitute an acknowledgment by the bettor that the ticket is correct. Exchange tickets may not be canceled and/or reissued except as provided by these rules. The association, ((totalisator)) parimutuel company, and state ((may)) will not be liable to any person for a twin trifecta ticket which is not:

     (a) A winning ticket in accordance with the provisions of this rule; or

     (b) Delivered for any reason, including but not limited to mechanical malfunction, electrical failure, machine locking, phone line failure, or other cause.

     (26) Twin trifecta tickets ((shall)) will be sold and exchanged only by the association through parimutuel machines.

     (27) The twin trifecta carry-over may be capped at a designated level approved or set by the commission so that if, at the close of any race card, the amount in the twin trifecta carry-over equals or exceeds the designated cap, the twin trifecta carry-over will be frozen until it is won or distributed under other provisions of this rule. After the twin trifecta carry-over is frozen, 100 percent of the net twin trifecta pool for each individual race ((shall)) will be distributed to winners of the first-half of the twin trifecta pool.

[Statutory Authority: RCW 67.16.020. 04-07-077, § 260-48-900, filed 3/15/04, effective 4/15/04. Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-900, filed 4/19/96, effective 6/11/96.]

     (2) The net superfecta pool ((shall)) will be distributed to winning wagers in the following precedence, based upon the official order of finish:

     (a) As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

     (b) As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

     (c) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

     (d) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

     (e) The entire pool ((shall)) will be refunded on superfecta wagers for that race.

     (3) If less than four betting interests finish and the race is declared official, payoffs will be made based upon the order of finish of those betting interests completing the race. The balance of any selection beyond the number of betting interests completing the race ((shall)) will be ignored.

     (4) If there is a dead heat for first involving:

     (a) Horses representing four or more betting interests, all of the wagering combinations selecting four betting interests which correspond with any of the betting interests involved in the dead heat ((shall)) will share in a profit split.

     (b) Horses representing three betting interests, all of the wagering combinations selecting the three dead-heated betting interests, irrespective of order, along with the fourth-place betting interest ((shall)) will share in a profit split.

     (c) Horses representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place and fourth-place betting interests ((shall)) will share in a profit split.

     (5) If there is a dead heat for second involving:

     (a) Horses representing three or more betting interests, all of the wagering combinations correctly selecting the winner combined with any of the three betting interests involved in the dead heat for second ((shall)) will share in a profit split.

     (b) Horses representing two betting interests, all of the wagering combinations correctly selecting the winner, the two dead-heated betting interests, irrespective of order, and the fourth-place betting interest ((shall)) will share in a profit split.

     (6) If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any two of the betting interests involved in the dead heat for third ((shall)) will share in a profit split.

     (7) If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers, in correct sequence, along with any of the betting interests involved in the dead heat for fourth ((shall)) will share in a profit split.

     (8) Superfecta wagering is prohibited on any race in which there is more than one coupled entry, except with written permission of the executive secretary.

     (9) Superfecta wagering is prohibited on any race in which there is a mutuel field.

[Statutory Authority: RCW 67.16.020. 04-07-077, § 260-48-910, filed 3/15/04, effective 4/15/04. Statutory Authority: RCW 67.16.040. 99-06-026, § 260-48-910, filed 2/23/99, effective 3/26/99.]

     (2) The net quinfecta pool will be distributed as a single price pool to those who selected the first five finishers in exact order based on the official order of finish. If there are no such wagers, then the net quinfecta pool will be carried forward to the next quinfecta performance as a carryover or added to an existing carryover.

     (3) If less than five betting interests finish the race and the race is declared official, the entire quinfecta pool for that performance will be refunded.

     (4) If, due to a late scratch or a participant is declared a nonstarter, and this causes the number of betting interest in the quinfecta pool to be reduced to fewer than five, the entire quinfecta pool for that performance will be refunded.

     (5) If the quinfecta contest is cancelled or declared "no contest," the entire quinfecta pool for that performance will be refunded.

     (6) If horses representing the same betting interest finish in the first five positions, the quinfecta pool will be distributed as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

     (7) If there is a dead heat for first involving:

     (a) Horses representing five or more betting interests, all of the wagering combinations selecting five betting interests which correspond with any of the betting interests involved in the dead heat will share in a profit split.

     (b) Horses representing four betting interests, all of the wagering combinations selecting the four dead-heated betting interests, irrespective of order, along with the fifth-place betting interest will share in a profit split.

     (c) Horses representing three betting interests, all of the wagering combinations selecting the three dead-heated betting interests, irrespective of order, along with the fourth-place and fifth-place betting interests will share in a profit split.

     (d) Horses representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place, fourth-place and fifth-place betting interests will share in a profit split.

     (8) If there is a dead heat for second involving:

     (a) Horses representing four or more betting interests, all of the wagering combinations correctly selecting the winner combined with any of the four or more betting interests involved in the dead heat for second will share in a profit split.

     (b) Horses representing three betting interests, all of the wagering combinations correctly selecting the winner, the three dead-heated betting interests, irrespective of order, and the fifth-place betting interests will share in a profit split.

     (c) Horses representing two betting interests, all of the wagering combinations correctly selecting the winner, the two dead-heated betting interests, irrespective of order, and the fourth-place and fifth-place betting interests will share in a profit split.

     (9) If there is a dead heat for third involving:

     (a) Horses representing three or more betting interests, all of the wagering combinations correctly selecting the winner, the second-place betting interest, and the three or more dead-heated betting interests will share in a profit split.

     (b) Horses representing two betting interests, all the wagering combinations correctly selecting the winner, the second-place betting interest, the two dead-heated betting interests, irrespective of order and the fifth-place betting interest will share in a profit split.

     (10) If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers, in correct sequence, along with any two of the betting interests involved in the dead heat for fourth will share in a profit split.

     (11) If there is a dead heat for fifth, all wagering combinations correctly selecting the first four finishers, in correct sequence, along with any of the betting interests involved in the dead heat for fourth will share in a profit split.

     (12) Quinfecta wagering is prohibited on any race in which there is more than one coupled entry or a mutuel field, except with written permission of the board of stewards.

     (13) Mandatory distribution of the carryover. The quinfecta carryover will be designated for a change in distribution on a specified date and performance under the following circumstances:

     (a) Upon approval from the board of stewards. If the designated date of the race for the mandatory distribution is during the race meet and the carryover pool is not distributed, the quinfecta wager must be offered on a subsequent race until the carryover pool is distributed. A written request must contain the following information:

     (i) The reason and justification for the change.

     (ii) The date of the proposed distribution.

     (b) On the closing performance of the meet.

     (14) If the quinfecta pool and any carryover are approved for distribution, the net quinfecta pool and carryover, if any, will be distributed as a single price pool to winning wagers based upon the official order of finish.

     (a) As a single price pool to those whose combination finished in correct sequence as the first five betting interests; but if there are no such wagers, then

     (b) As a single price pool to those whose combination included, in correct sequence, the first four betting interests; but if there are no such wagers, then

     (c) As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

     (d) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

     (e) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

     (f) The entire net pool will be refunded on quinfecta wagers for that race and the carryover, if any, will be held over to a quinfecta pool of the subsequent meet.

     (15) If, for any reason, the quinfecta carryover must be held over to the corresponding quinfecta pool of a subsequent meet, the carryover will be deposited in an interest-bearing account approved by the executive secretary. The quinfecta carryover plus accrued interest will then be added to the net quinfecta pool of the following meet on a date and performance approved by the board of stewards.

[]

     (2) The pick (n) pool ((shall)) will be apportioned under one of the following methods:

     (a) Method 1, pick (n) with carryover: The net pick (n) pool and carryover, if any, ((shall)) will be distributed as a single price pool to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool ((shall)) will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races; and the remainder ((shall)) will be added to the carryover.

     (b) Method 2, pick (n) with minor pool and carryover: The major share of the net pick (n) pool and the carryover, if any, ((shall)) will be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool ((shall)) will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the minor share of the net pick (n) pool ((shall)) will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races; and the major share ((shall)) will be added to the carryover.

     (c) Method 3, pick (n) with no minor pool and no carryover: The net pick (n) pool ((shall)) will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races, based upon the official order of finish. If there are no winning wagers, the pool is refunded.

     (d) Method 4, pick (n) with minor pool and no carryover: The major share of the net pick (n) pool ((shall)) will be distributed to those who selected the first place finisher in the greatest number of pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool ((shall)) will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher in a second greatest number of pick (n) races, the minor share of the net pick (n) pool ((shall)) will be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races. If the greatest number of first-place finishers selected is one (1), the major and minor shares are combined for distribution as a single price pool. If there are no winning wagers, the pool is refunded.

     (e) Method 5, pick (n) with minor pool and no carryover: The major share of net pick (n) pool ((shall)) will be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool ((shall)) will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher in all pick (n) races, the entire net pick (n) pool ((shall)) will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races. If there are no wagers selecting the first-place finisher in a second greatest number of pick (n) races, the minor share of the net pick (n) pool ((shall)) will be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in each of the pick (n) races. If there are no winning wagers, the pool is refunded.

     (f) Method 6, pick (n) with minor pool, jackpot pool, major carryover and jackpot carryover: Predetermined percentages of the net pick (n) pool ((shall)) will be set aside as a major pool, minor pool and jackpot pool. The major share of the net pick (n) pool and the major carryover, if any, ((shall)) will be distributed to those who selected the first-place finisher of each of the pick (n) races, based on the official order of finish. If there are no tickets selecting the first-place finisher in each of the pick (n) races, the major net pool ((shall)) will be added to the major carryover. If there is only one single ticket selecting the first-place finisher of each of the pick (n) races, based on the official order of finish, the jackpot share of the net pick (n) pool and the jackpot carryover, if any, ((shall)) will be distributed to the holder of that single ticket, along with the major net pool and the major carryover, if any. If more than one ticket selects the first-place finisher of each of the pick (n) races the jackpot net pool ((shall)) will be added to the jackpot carryover. The minor share of the net pick (n) pool ((shall)) will be distributed to those who selected the first-place finisher of the second greatest number of pick (n) races, based on the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the minor net pool of the pick (n) pool ((shall)) will be distributed as a single price pool to those who selected the first-place finisher of the greatest number of pick (n) races.

     (3) If there is a dead heat for first in any of the pick (n) races involving:

     (a) Horses representing the same betting interest, the pick (n) pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Horses representing two or more betting interests, the pick (n) pool ((shall)) will be distributed as a single price pool with each winning wager receiving an equal share of the profit.

     (4) Should a betting interest in any of the pick (n) races be scratched:

     (a) The racing association may allow patrons the option of selecting an alternate betting interest prior to the running of the first leg of the pick (n). The selected alternate betting interest ((shall)) will be substituted for the scratched betting interest, for all purposes, including pool calculations.

     (b) If no alternate betting interest is selected or the selected alternate betting interest is also scratched, the actual favorite, as evidenced by total amounts wagered in the win pool at the close of wagering on that race, ((shall)) will be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the win pool total for two or more favorites is identical, the substitute selection ((shall)) will be the betting interest with the lowest program number. The ((totalisator shall)) parimutuel system will produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

     (5) The pick (n) pool ((shall)) will be cancelled and all pick (n) wagers for the individual race day ((shall)) will be refunded if:

     (a) At least three races included as part of a pick 4, pick 5 or pick 6 are cancelled or declared "no ((race)) contest."

     (b) At least four races included as part of a pick 7, pick 8 or pick 9 are cancelled or declared "no ((race)) contest."

     (c) At least five races included as part of a pick 10 are cancelled or declared "no ((race)) contest."

     (6) If at least one race included as part of a pick (n) is cancelled or declared "no ((race)) contest", but not more than the number specified in subsection 5 of this rule, the net pool ((shall)) will be distributed as a single price pool to those whose selection finished first in the greatest number of pick (n) races for that race day. Such distribution ((shall)) will include the portion ordinarily retained for the pick (n) carryover but not the carryover from previous race days.

     (7) The pick (n) carryover may be capped at a designated level approved by the commission so that if, at the close of any race day, the amount in the pick (n) carryover equals or exceeds the designated cap, the pick (n) carryover will be frozen until it is won or distributed under other provisions of this rule. After the pick (n) carryover is frozen, 100 percent of the net pool, part of which ordinarily would be added to the pick (n) carryover, ((shall)) will be distributed to those whose selection finished first in the greatest number of pick (n) races for that race day.

     (8) A written request for permission to distribute the pick (n) carryover on a specific race day may be submitted to the commission. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and race day for the distribution.

     (9) Should the pick (n) carryover be designated for distribution on a specified date and race day in which there are no wagers selecting the first-place finisher in each of the pick (n) races, the entire pool ((shall)) will be distributed as a single price pool to those whose selection finished first in the greatest number of pick (n) races. The pick (n) carryover ((shall)) will be designated for distribution on a specified date and race day only under the following circumstances:

     (a) Upon written approval from the commission as provided in subsection 8 of this rule.

     (b) Upon written approval from the commission when there is a change in the carryover cap, a change from one type of pick (n) wagering to another, or when the pick (n) is discontinued.

     (c) On the closing race day of the meet or split meet.

     (10) If, for any reason, the pick (n) carryover must be held over to the corresponding pick (n) pool of a subsequent meet, the carryover ((shall)) will be deposited in an interest-bearing account approved by the commission. The pick (n) carryover plus accrued interest ((shall)) will then be added to the net pick (n) pool of the following meet on a date and race day so designated by the commission.

     (11) With the written approval of the commission, the association may contribute to the pick (n) carryover a sum of money up to the amount of any designated cap.

     (12) Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of live tickets remaining is strictly prohibited. This ((shall)) will not prohibit necessary communication between ((totalisator)) parimutuel system and parimutuel department employees for processing of pool data.

     (13) The association may suspend previously-approved pick (n) wagering with the prior approval of the commission. Any carryover ((shall)) will be held until the suspended pick (n) wagering is reinstated. An association may request approval of a pick (n) wager or separate wagering pool for specific race day.

[Statutory Authority: RCW 67.16.040. 96-10-014, § 260-48-920, filed 4/19/96, effective 6/11/96.]

     (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)) will designate one horse that ((shall)) will 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)) will 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)) will 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)) will be no payout for the group bet.

     (5) The identity of the nongroup horse and the members of Group A and Group B ((shall)) will 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)) will 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)) will 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)) will 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)) will 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)) will cease and all wagers on both groups ((shall)) will 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)) will 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)) will 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)) will 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)) will 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)) will 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)) will be final.

[Statutory Authority: RCW 67.16.020 and 67.16.040. 06-07-062, § 260-48-925, filed 3/10/06, effective 4/10/06.]

     (2) The association ((shall)) will apply in writing to the ((Washington horse racing)) commission for approval to offer the future wager on the specified contest and ((shall)) will not offer the wager until the commission approval has been granted. The written application ((shall)) will include the date and time for the pool to be opened and closed, a description of the system for compiling the pool and calculating odds and payout prices, and the time interval for displaying the odds.

     (3) The association, or in the case of ((interjurisdiction)) common pool wagering the host track, ((shall)) will name the contestants included in each betting interest on which future wagers may be made and ((shall)) will assign a program number to each betting interest.

     (4) The amount wagered on the betting interest which finishes first in the specified race is deducted from the net pool, the balance remaining being the profit; the profit is divided by the amount wagered on the betting interest finishing first, such quotient being the profit per dollar wagered in the future pool on that betting interest.

     (5) The net future pool ((shall)) will be distributed as a single price pool to winning wagers in the following precedence, based upon the official order of finish:

     (a) To those whose selection finished first; but if there are no such wagers, then

     (b) To those whose selection finished second; but if there are no such wagers, then

     (c) To those whose selection finished third; but if there are no such wagers, then

     (d) The entire pool ((shall)) will be refunded on future pool wagers for that contest.

     (6) If there is a dead heat for first involving:

     (a) Contestants representing the same betting interest, the future pool ((shall)) will be distributed as if no dead heat occurred.

     (b) Contestants representing two or more betting interests, the future pool ((shall)) will be distributed as a profit split.

     (7) No refund ((shall)) will be issued for future wager pool wagers on betting interests that do not start or finish the race. If the association becomes aware or is notified that a betting interest is ineligible or unable to start the race and the pool is still open, the association ((shall)) will immediately close betting on that betting interest.

     (8) The entire future wager pool ((shall)) will be refunded if:

     (a) The situation described at subsection 5(d) occurs; or

     (b) The specified race is declared no contest by the judges/stewards having jurisdiction over the specified race; or

     (c) The specified race does not occur; or

     (d) For whatever reason, the future wager pool cannot be determined and the payout price cannot be calculated.

[Statutory Authority: RCW 67.16.040. 02-10-100, § 260-48-930, filed 4/30/02, effective 5/31/02.]

     (2) The association must obtain ((written)) approval from the executive secretary concerning the format and scheduling of choose (n) contests, the races in which choose (n) wagering will be permitted, and the amount of any cap to be set on the carryover. The choose (n) pool ((must)) will close after each race but will reopen with respect to subsequent races that have not yet been run provided that there are at least as many races remaining as required to be selected on a winning choose (n) ticket. Once approved, any changes will require approval from the executive secretary.

     (3) The number of races in a choose (n) pool is designated by the association, while the specific races wagered on are at the discretion of the bettor. The races need not be consecutive and the first race of a choose (n) ticket may begin at any time provided that there are an adequate number of races left on the program. The bettor may purchase a choose (n) ticket allowing the bettor to select any (n) races from the entire card, unless the association has designated a race not eligible for the choose (n) pool.

     (4) The choose (n) pool will be apportioned under one of the following methods:

     (a) Method one - Choose (n) no carryover: The choose (n) "net wagering pool" will be equally distributed to the holder or holders of choose (n) tickets which correctly select (n) first place winners from the eligible races comprising the choose (n). If no choose (n) ticket correctly selects (n) first place winners from choose (n) eligible races, the "net wagering pool" of a choose (n) with no carryover amount will be equally distributed to the ticket holder or holders selecting the greatest number of first place winners of the races comprising the choose (n). If there are no winning wagers, the pool is refunded.

     (b) Method two - Choose (n) with carryover: The choose (n) "net wagering pool" and carryover, if any, will be distributed as a single price pool to holders of choose (n) tickets which have correctly selected the winner of (n) races of the races comprising the choose (n). However, if no choose (n) ticket correctly selects the first place winner in (n) races comprising the choose (n), twenty-five percent of the net wagering pool for that particular choose (n) will be equally distributed to the holder or holders of choose (n) tickets correctly selecting the greatest number of first place winners of the races comprising the choose (n) and the remaining seventy-five percent of the net wagering pool for that particular choose (n) will be added as the "carryover amount" portion of the wagering pool for designated subsequent choose (n) offerings by the association. In any choose (n) with a "carryover amount" feature, one hundred percent of the "net wagering pool" for the particular choose (n) plus any accumulated "carryover amount," will be equally distributed to the holder or holders of choose (n) tickets which correctly select the first place winners in (n) races comprising the choose (n).

     (5) The association will determine the denominations of the choose (n) tickets. No less than two or more than six races will comprise any choose (n) ticket.

     (6) The choose (n) tickets ((must)) will be clearly and immediately distinguishable from other parimutuel tickets.

     (7) Those horses constituting an entry or field, as defined by rule, will race in any choose (n) race as a single wagering interest for purposes of the choose (n) pool calculations. A scratch after wagering has begun of any part of the entry or field selection in a race will have no effect on the status of such entry or field as a wagering interest.

     (8) At any time after wagering begins on the choose (n) contest, should a horse, entire betting entry or field be scratched or declared a nonstarter in any choose (n) race, no further tickets selecting such horses, entry or field will be issued, and wagers upon such horse, entry or field for purposes of the choose (n) will be deemed wagers upon the horse, entry or field on which the most money has been wagered in the win pool at the close of win betting for such race. In the event that two horses have the exact amount wagered on them, the horse, entry or field with the lowest program number will be designated.

     (9) In the event of a dead heat for win between two or more horses in any of the choose (n) races, all such horses will be considered as the winning horse for the purpose of distributing the choose (n) pool.

     (10) The choose (n) pool with a carryover will be calculated as follows:

     (a) One hundred percent of the net amount in the choose (n) pool subject to distribution among winning ticket holders ((must)) will be distributed among holders of choose (n) tickets which have correctly selected the winner of (n) races of the races comprising the choose (n).

     (b) In the event there is no choose (n) ticket which correctly designates the winner of (n) races from the races that comprise the choose (n), twenty-five percent of that racing date's net amount available for distribution ((must)) will be distributed among the holders of choose (n) tickets correctly designating the most winning selections of the races that comprise the choose (n), and the remaining seventy-five percent of said pool ((must)) will be carried over and added to the pool on the next day that the wager is conducted.

     (c) If, on the last day on which the choose (n) is conducted at a horse race meeting, no one selects the winning horse in (n) races, the total amount of the choose (n) pool which exists on that day ((must)) will be paid to the bettor or bettors selecting the largest number of winning horses in those races. In no event will any part of the pool be carried over to the next year's race meeting, except for reasons beyond the control of the licensee and upon the approval of the executive secretary. If, for any reason, the choose (n) carryover must be held over to the corresponding choose (n) pool of a subsequent meet, the carryover will be deposited in an interest-bearing account approved by the executive secretary. The choose (n) carryover plus accrued interest will then be added to the net choose (n) pool of the following meet on a date and performance ((so designated by the executive secretary)) approved by the board of stewards.

     (11) When the distance of the race is changed or the condition of the turf course warrants a change of racing surface in any of the races open to choose (n) wagering, and such change has not been made known to the betting public prior to the close of wagering for the first choose (n) race, the stewards will declare the changed races a "no contest" for choose (n) wagering purposes and the pool will be distributed in accordance with subsection (10) of this section. Following the designation of a race as a "no contest," no tickets ((may)) will be sold selecting a horse in such "no contest" race. Any race that has been canceled or declared a "no contest" ((may)) will not be considered a contested race for choose (n) purposes.

     (12) If, for any reason, one or more races are canceled or declared a "no contest," the choose (n) pool will be paid using the following formula:

     (a) Choose two: Any live ticket regardless of its starting point that has not completed at least two contested legs will be refunded. After two or more races have run, one hundred percent of the daily pool plus any carryover will be distributed in accordance with subsection (10) of this section.

     (b) Choose three: Any ticket regardless of its starting point that has not completed at least three contested legs will be refunded. After three or more races have run((:)), one hundred percent of the daily pool plus any carryover ((must)) will be distributed in accordance with subsection (10) of this section.

     (c) Choose four: Any ticket regardless of its starting point that has not completed at least four contested legs must be refunded. After four or more races have run((:)), one hundred percent of the daily pool plus any carryover ((must)) will be distributed in accordance with subsection (10) of this section.

     (d) Choose five: Any ticket regardless of its starting point that has not completed at least four contested legs ((must)) will be refunded.

     (i) In the event that only four choose five races are contested: One hundred percent of that day's net pool (not including any carryover), after refunds, will be paid to tickets with four wins and no losses.

     (ii) In the event that at least five races have been contested for the choose five((:)), seventy-five percent of that day's net pool (after refunds) plus any carryover will be paid to tickets with five wins and twenty-five percent of the pool will be paid to tickets with four wins and no losses. In the event no ticket has five wins, seventy-five percent of the daily pool will be paid to tickets with four wins and a selection in the canceled race and twenty-five percent paid to tickets with three wins and a selection in two of the canceled races.

     (e) Choose six: Any ticket regardless of its starting point that has not completed at least four contested legs ((must)) will be refunded.

     (i) In the event only four choose six races are contested((:)), one hundred percent of the day's net pool (not including any carryover) after refunds, ((must)) will be paid to tickets with four wins.

     (ii) In the event that only five choose six races are contested((:)), seventy-five percent of the daily pool (after refunds) will be paid to tickets with five wins and twenty-five percent to tickets with four wins and no losses and a selection in the noncontested race.

     (iii) In the event that at least six races have been contested for the choose six and two or more races have not been contested((:)), seventy-five percent of the daily pool plus any carryover ((must)) will be paid to tickets with six wins, eighteen and three-quarter percent of the daily pool to tickets with five wins and a selection in a noncontested race, and six and one-quarter percent of the daily pool will be paid to tickets with four wins and selections in two of the noncontested races. If no ticket has six wins, fifty percent of the daily pool ((must)) will be paid to tickets with five wins and a selection in a noncontested race, twenty-five percent of the daily pool to tickets with four wins and selections in two noncontested races, and twenty-five percent of the daily pool to tickets with five wins and one loss.

     (iv) In the event that at least six races have been contested for the choose six and one race has not been contested((:)), seventy-five percent of the daily pool plus any carryover must be paid to tickets with six wins and twenty-five percent of the daily pool to tickets with five wins and a selection in the noncontested race. If no ticket has six wins, seventy-five percent of the daily pool must be paid to tickets with five wins and a selection in the noncontested race and twenty-five percent of the daily pool to tickets with five wins and one loss.

     (v) In the event that there is no payable ticket in a category within any of these subsections, that portion of the daily pool will be divided equally between the other categories within that subsection. In the event that there is no payable ticket within a subsection, the entire daily pool will be carried over and added to the choose (n) pool on the next day that the choose (n) wagering is conducted.

     (13) When there is a cancellation of the race card or a race is declared a no contest and there are any changes in the calculation of the choose (n) other than provided for in subsection (12) of this section, the change must be approved ((in writing by the executive secretary)) by board of stewards.

     (14) If, for any reason, the race card is canceled, wagering on the choose (n) pool must close immediately and the choose (n) pool must be distributed in accordance with subsection (12) of this section.

     (15) The choose (n) carryover may be capped at a designated level if approved by the ((executive secretary)) board of stewards so that if at the close of any performance, the amount in the choose (n) carryover equals or exceeds the designated cap, the choose (n) carryover will be frozen until it is won or distributed under other provisions of this rule. After the choose (n) carryover is frozen, one hundred percent of the net pool, part of which would ordinarily be added to the choose (n) carryover, must be equally distributed to the ticket holder or holders selecting the greatest number of first place winners of the races comprising the choose (n) for that performance.

     (16) A written request for permission to distribute the choose (n) carryover on a specific performance may be submitted to the ((executive secretary)) board of stewards. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

     (17) Should the choose (n) carryover be designated for distribution on a specified date and performance in which there are no wagers with (n) wins, the entire pool must be distributed as a single price pool to those whose selection finished first in the greatest number of choose (n) contests. The choose (n) carryover will be designated for distribution on a specified date and performance only under the following circumstances:

     (a) Upon ((written)) approval from the ((executive secretary)) board of stewards as provided in ((subsection (16) of)) this section.

     (b) Upon ((written)) approval from the ((executive secretary)) board of stewards when there is a change in the carryover cap, a change from one type of choose (n) wagering to another, or when the choose (n) is discontinued.

     (c) On the closing performance of the meet or split meet.

     (18) With the ((written)) approval of the ((executive secretary)) board of stewards, the association may contribute to the choose (n) carryover a sum of money up to the amount of any designated cap.

     (19) All choose (n) rules and methods of calculations must be available and posted for the bettors by the association.

     (20) It is a violation of these rules for any person to provide information to any individual regarding covered combinations or amounts wagered on specific combinations. This rule is not intended to prohibit necessary communication between ((totalisator)) parimutuel system and parimutuel department employees for processing of pool data. The association may be permitted to provide information regarding number of tickets sold and number of live tickets remaining to the wagering public.

     (21) The association may suspend previously approved choose (n) wagering with the prior approval of the ((executive secretary)) commission. Any carryover will be held until the suspended choose (n) wagering is reinstated. An association may request approval of a choose (n) wager or separate wagering pool for specific performances.

     (22) Should circumstances occur which are not addressed by these rules, the stewards will resolve them in accordance with general parimutuel practice. Decisions regarding distribution of the choose (n) pool made by the stewards will be final.

[Statutory Authority: RCW 67.16.020 and 67.16.040. 06-15-091, § 260-48-935, filed 7/14/06, effective 8/14/06.]

     (2) The choice of which contestants from a contest ((shall)) will participate in the head-to-head contest ((shall)) will be made as follows:

     (a) The association must obtain approval from the board of stewards for each head-to-head contest.

     (b) The matching of contestants for the head-to-head contest ((shall)) will be limited to contestant versus contestant, jockey versus jockey, and/or trainer versus trainer.

     (c) The contestants chosen for the head-to-head wager ((shall)) will be conspicuously identified in the official program.

     (3) The net head-to-head pool ((shall)) will be distributed to winning wagers in the following precedence, based on the official order of finish:

     (a) As a single price pool to those whose selection finished first in a single head-to-head contest, or first in the greatest number of a series of head-to-head contests; but if there are no such wagers, then

     (b) The head-to-head pool ((shall)) will be refunded.

     (4) If there is a dead heat in a contest involving two or more of the contestants in:

     (a) A single-contest head-to-head pool, then the entire pool ((shall)) will be refunded.

     (b) One or more contests of a series, then all the contestants involved in the dead heat ((shall)) will be considered winners and the net pool ((shall)) will be distributed as a signal price pool, provided that;

     (c) In a series of contests, if there is a dead heat in half or more of the contests then the head-to-head pool for those contests ((shall)) will be refunded.

     (5) If any head-to-head contest is canceled or declared no contest:

     (a) In a single-contest head-to-head pool, the pool ((shall)) will be refunded.

     (b) In a series of contests, if half or more of the contests are canceled or declared no contest, then the head-to-head pool for those contests ((shall)) will be refunded.

     (6) If any contestant is scratched or declared a nonstarter in any head-to-head contest, then that contest ((shall)) will be canceled.

     (7) If all contestants fail to finish in a head-to-head contest, then that contest ((shall)) will be canceled.

[Statutory Authority: RCW 67.16.020. 03-11-017, § 260-48-940, filed 5/12/03, effective 6/12/03.]

     (1) A handicapping contest is defined as a competitive event, where participants, using individual skill to evaluate a variety of factors including the past performance of horses to determine the relative qualities and abilities of horses in a race, attempt to outperform other participants in selecting the finish of horses. Participants who are most successful in selecting horses become eligible to win prizes as prescribed in the official rules of the contest. Prizes and format are predefined and at the discretion of the class 1 racing association.

     (2) A class 1 racing association desiring to offer a paid-entry handicapping contest must first apply for and receive approval from the commission to conduct a handicapping contest ((in Washington)). The class 1 racing association must apply to the commission for approval of each and every contest. The class 1 racing association must include with its application the proposed rules for conducting the handicapping contest and the determination of prizes. The class 1 racing association ((shall)) will obtain written approval to operate the handicapping contest prior to the acceptance of any entry fees regarding said contest.

     (3) The class 1 racing association approved to operate a handicapping contest ((shall)) will distribute at least ninety-five percent of the entry fees as prizes to the winners. Nothing in this section ((shall)) will preclude an operator from providing additional prizes or promotions.

     (4) The entry fee to enter a handicapping contest ((shall)) will be set by the class 1 racing association. The entry fee and a description of all goods and services to be awarded as part of the handicapping contest must be fully disclosed to each participant prior to paying the entry fee. In addition, all prizes, including amenities such as airfare, meals and lodging, ((shall)) will also be fully disclosed to each participant prior to paying the entry fee.

     (5) Races that are the subject of a handicapping contest must be races on which the class 1 racing association is authorized to conduct parimutuel wagering.

     (6) The officers and employees of the class 1 racing association operating a handicapping contest, and their immediate families are prohibited from participating in any handicapping contest. Commissioners and employees of the commission are also prohibited from participating in any handicapping contest in Washington.

     (7) The class 1 racing association ((shall)) will provide the commission a report on every handicapping contest including a record of all entry fees collected, the number of participants for each contest, the amount the class 1 racing association paid in prizes, and the name and address of each winning participant.

     (8) Any violation of this section ((shall)) will be referred to the ((commission)) executive secretary. The ((commission shall)) executive secretary will have sole authority to ensure compliance with this rule, conduct hearings on violations, and determine penalties. Any decision of the executive secretary may be challenged as provided in WAC 260-08-675.

[Statutory Authority: RCW 67.16.020 and 67.16.040. 05-19-016, § 260-48-960, filed 9/9/05, effective 10/10/05.]

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