HOUSE BILL REPORT
HB 1291
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Passed Legislature
Title: An act relating to advance deposit wagering.
Brief Description: Allowing advance deposit wagering to continue beyond October 1, 2007.
Sponsors: By Representatives Quall, Priest, Wood, Condotta, Moeller, Conway and Simpson; by request of Horse Racing Commission.
Brief History:
Commerce & Labor: 1/25/07, 1/26/07 [DP].
Floor Activity:
Passed House: 2/5/07, 91-4.
Passed Senate: 4/12/07, 42-3.
Passed Legislature.
Brief Summary of Bill |
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HOUSE COMMITTEE ON COMMERCE & LABOR
Majority Report: Do pass. Signed by 7 members: Representatives Conway, Chair; Wood, Vice Chair; Condotta, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Green, Moeller and Williams.
Staff: Joan Elgee (786-7106).
Background:
The Horse Racing Commission (HRC) regulates horse racing in Washington. The HRC
licenses facilities, as well as owners, trainers, jockeys, and others who participate in horse
racing. It also determines the time and duration of race meets and supervises the meets. A
class 1 racing association is one that owns and operates its own race facility with at least 40
days of racing a year. Currently, Emerald Downs is the only class 1 racing association in the
state.
Class 1 racing associations pay a parimutuel tax and license fees, which support the HRC.
Additional taxes are used for Washington-bred owner bonuses, Washington-bred breeder
awards, capital construction, and nonprofit race meets.
In 2004, the Legislature authorized advance deposit wagering (ADW) by a class 1 racing
association or by an operator of ADW who accepts wagers under an HRC-approved
agreement with a class 1 racing association. Advanced deposit wagering is a form of
parimutuel wagering in which an individual deposits money in an account to be used to pay
for wagers made in person, by telephone, or through communication by other electronic
means.
Advanced deposit wagering may be accepted for races conducted in Washington under a
class 1 license or for races conducted outside Washington on a schedule approved by the
class 1 licensee. Operators conducting ADW:
By rule, the operator conducting ADW pays a source market fee on all accounts held by
Washington residents. The fee is distributed to the class 1 racing association and the HRC.
The fee is further distributed to awards, owner bonuses, and the nonprofit race meets.
The provisions authorizing advance deposit wagering expire on October 1, 2007.
Summary of Bill:
The expiration date for horse racing advance deposit wagering is removed.
Rules Authority: The bill does not address the rule-making powers of an agency.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Staff Summary of Public Testimony:
(In support) Advance deposit wagering (ADW) has had a positive effect industry-wide and is
vital to the economic stability of the thoroughbred industry. Advanced deposit wagering has
worked the way it should and we have had no problems with it. Before ADW, money was
being wagered but the state was losing out.
(Opposed) None.
Persons Testifying: Carol Smith-Merkulov and Robert Leichner, Washington State Horse Racing Commission; Maryann O'Connell, Washington Horsemen's Benevolent & Protective Association; and Ron Crockett, Susie Sourwine, and Jim Halstrom, Northwest Racing Emerald Downs.