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ENGROSSED SUBSTITUTE HOUSE BILL 1571

 

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State of Washington      57th Legislature     2001 Regular Session

 

  By House Committee on Commerce & Labor (originally sponsored by Representatives Wood, Clements and Conway)

 

READ FIRST TIME 02/23/01. 

_1      AN ACT Relating to changing provisions relating to the import

_2  of simulcast horse races from out-of-state racing facilities to

_3  class 1 racing associations' live racing facilities; and amending

_4  RCW 67.16.200.

     

_5  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     

_6      Sec. 1.  RCW 67.16.200 and 2000 c 223 s 1 are each amended to read

_7  as follows:

_8      (1) A racing association licensed by the commission to conduct

_9  a race meet may seek approval from the commission to conduct

10  parimutuel wagering on its program at a satellite location or

11  locations within the state of Washington.  The sale of parimutuel

12  pools at satellite locations shall be conducted only during the

13  licensee's race meet and simultaneous to all parimutuel wagering

14  activity conducted at the licensee's live racing facility in the

15  state of Washington.  The commission's authority to approve

16  satellite wagering at a particular location is subject to the

17  following limitations:

18      (a) The commission may approve only one satellite location in

                               p. 1                     ESHB 1571

_1  each county in the state; however, the commission may grant

_2  approval for more than one licensee to conduct wagering at each

_3  satellite location.  A satellite location shall not be operated

_4  within twenty driving miles of any class 1 racing facility.  For the

_5  purposes of this section, "driving miles" means miles measured by

_6  the most direct route as determined by the commission; and

_7      (b) A licensee shall not conduct satellite wagering at any

_8  satellite location within sixty driving miles of any other racing

_9  facility conducting a live race meet.

10      (2) Subject to local zoning and other land use ordinances, the

11  commission shall be the sole judge of whether approval to conduct

12  wagering at a satellite location shall be granted.

13      (3) The licensee shall combine the parimutuel pools of the

14  satellite location with those of the racing facility for the

15  purpose of determining odds and computing payoffs.  The amount

16  wagered at the satellite location shall be combined with the

17  amount wagered at the racing facility for the application of take

18  out formulas and distribution as provided in RCW 67.16.102,

19  67.16.105, 67.16.170, and 67.16.175.  A satellite extension of the

20  licensee's racing facility shall be subject to the same

21  application of the rules of racing as the licensee's racing

22  facility.

23      (4) Upon written application to the commission, a class 1

24  racing association may be authorized to transmit simulcasts of

25  live horse races conducted at its racetrack to locations outside

26  of the state of Washington approved by the commission and in

27  accordance with the interstate horse racing act of 1978 (15 U.S.C.

28  Sec. 3001 to 3007) or any other applicable laws.  The commission may

29  permit parimutuel pools on the simulcast races to be combined in a

30  common pool.  A racing association that transmits simulcasts of its

31  races to locations outside this state shall pay at least fifty

32  percent of the fee that it receives for sale of the simulcast

33  signal to the horsemen's purse account for its live races after

34  first deducting the actual cost of sending the signal out of

35  state.

36      (5) Upon written application to the commission, a class 1

37  racing association may be authorized to transmit simulcasts of

38  live horse races conducted at its racetrack to licensed racing

ESHB 1571                      p. 2

_1  associations located within the state of Washington and approved

_2  by the commission for the receipt of the simulcasts.  The commission

_3  shall permit parimutuel pools on the simulcast races to be

_4  combined in a common pool.  The fee for in-state, track-to-track

_5  simulcasts shall be five and one-half percent of the gross

_6  parimutuel receipts generated at the receiving location and

_7  payable to the sending racing association.  A racing association

_8  that transmits simulcasts of its races to other licensed racing

_9  associations shall pay at least fifty percent of the fee that it

10  receives for the simulcast signal to the horsemen's purse account

11  for its live race meet after first deducting the actual cost of

12  sending the simulcast signal.  A racing association that receives

13  races simulcast from class 1 racing associations within the state

14  shall pay at least fifty percent of its share of the parimutuel

15  receipts to the horsemen's purse account for its live race meet

16  after first deducting the purchase price and the actual direct

17  costs of importing the race.

18      (6) A class 1 racing association may be allowed to import

19  simulcasts of horse races from out-of-state racing facilities.

20  With the prior approval of the commission, the class 1 racing

21  association may participate in an interstate common pool and may

22  change its commission and breakage rates to achieve a common rate

23  with other participants in the common pool.

24      (a) The class 1 racing association shall make written

25  application with the commission for permission to import simulcast

26  horse races for the purpose of parimutuel wagering.  Subject to the

27  terms of this section, the commission is the sole authority in

28  determining whether to grant approval for an imported simulcast

29  race.

30      (b) ((During the conduct of its race meeting, a class 1 racing

31  association may be allowed to import no more than one simulcast

32  race card program during each live race day.))  A licensed racing

33  association may also be approved to import one simulcast race of

34  regional or national interest on each live race day.  ((A class 1

35  racing association may be permitted to import two simulcast

36  programs on two nonlive race days per each week during its live

37  meet.  A licensee shall not operate parimutuel wagering on more than

38  five days per week.  Parimutuel wagering on imported simulcast

                               p. 3                     ESHB 1571

_1  programs shall only be conducted at the live racing facility of a

_2  class 1 racing association.))

_3      (c) The commission may allow simulcast races of regional or

_4  national interest to be sent to satellite locations.  The simulcasts

_5  shall be limited to one per day except for Breeder's Cup special

_6  events day.

_7      (d) When open for parimutuel wagering, a class 1 racing

_8  association which imports simulcast races shall also conduct

_9  simulcast parimutuel wagering within its licensed racing enclosure

10  on all races simulcast from other class 1 racing associations

11  within the state of Washington.

12      (e) ((When not conducting a live race meeting, a class 1 racing

13  association may be approved to conduct simulcast parimutuel

14  wagering on imported simulcast races.)) The conduct of

15  ((simulcast)) parimutuel wagering on ((the)) imported simulcast

16  races shall be for not more than fourteen hours during any twenty-

17  four hour period, for not more than five days per week and only at

18  ((its)) the live racing facility of a class 1 racing association.

19      (f) On any imported simulcast race, the class 1 racing

20  association shall pay fifty percent of its share of the parimutuel

21  receipts to the horsemen's purse account for its live race meet

22  after first deducting the purchase price of the imported race and

23  the actual costs of importing the race.

24      (7) For purposes of this section, a class 1 racing association

25  is defined as a licensee approved by the commission to conduct

26  during each twelve-month period at least forty days of live

27  racing.  If a live race day is canceled due to reasons directly

28  attributable to acts of God, labor disruptions affecting live race

29  days but not directly involving the licensee or its employees, or

30  other circumstances that the commission decides are beyond the

31  control of the class 1 racing association, then the canceled day

32  counts toward the forty-day requirement.  The commission may by rule

33  increase the number of live racing days required to maintain class

34  1 racing association status or make other rules necessary to

35  implement this section.

36      (8) This section does not establish a new form of gaming in

37  Washington or allow expanded gaming within the state beyond what

38  has been previously authorized.  Simulcast wagering has been allowed

ESHB 1571                      p. 4

_1  in Washington before April 19, 1997.  Therefore, this section does

_2  not allow gaming of any nature or scope that was prohibited before

_3  April 19, 1997.  This section is necessary to protect the Washington

_4  equine breeding and racing industries, and in particular those

_5  sectors of these industries that are dependent upon live horse

_6  racing.  The purpose of this section is to protect these industries

_7  from adverse economic impacts and to promote fan attendance at

_8  class 1 racing facilities.  Therefore, imported simulcast race card

_9  programs shall not be disseminated to any location outside the

10  live racing facility of the class 1 racing association and a class

11  1 racing association is strictly prohibited from simulcasting

12  imported race card programs to any location outside its live

13  racing facility.

14      (9) A licensee shall include the following statement in any

15  advertising or promotion of a simulcast race conducted by the

16  licensee:

   

17  "CAUTION:  Participation in gambling activity may result in

18  pathological gambling behavior causing emotional and financial

19  harm.  For help, call 1-800-547-6133."

   

20      For purposes of this subsection, advertising includes print

21  media, point-of-sale advertising, electronic media, billboards,

22  and radio advertising.

 

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                               p. 5                     ESHB 1571