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.

House Committee on Commerce & Labor
Senate Committee on Labor, Commerce, Research & Development

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. 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 that contracts with a class 1 racing association. ADW 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.

Entities conducting ADW:

• may not accept a wager that exceeds the individual's funds on deposit;
• may not allow individuals under the age of 21 to participate; and
• must verify the identity, age, and residence of the account holder.

By rule, the entity 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, bonuses, and the nonprofit race meets.

The provisions authorizing ADW expire on October 1, 2007.

Summary:

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.

Votes on Final Passage:

House   91   4
Senate   42   3

Effective: July 22, 2007