SENATE BILL REPORT

SHB 984

BYHouse Committee on Commerce & Labor (originally sponsored by Representatives Baugher, Lewis, Appelwick, Patrick, Fisch, Rayburn, Vekich, C. Smith, Fisher, Sayan, Madsen, R. King and Doty)

Authorizing satellite extensions of licensed facilities for parimutuel wagering.

House Committe on Commerce & Labor

Senate Committee on Commerce & Labor

Senate Hearing Date(s):March 26, 1987

Majority Report:     Do pass.

     Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Lee, Sellar, Vognild, West, Williams.

Senate Staff:Patrick Woods (786-7430)

                March 26, 1987

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR, MARCH 26, 1987

BACKGROUND:

Currently, persons holding licenses to conduct horse race meets may seek approval from the Horse Racing Commission to conduct the sale of parimutuel pools on in-state or out-of-state televised or simulcast races of national or regional interest.  Only sales within the enclosure of the licensee's race course and during the conduct of a race meet are authorized.

Parimutuel monies from horse racing are allocated by statute.  Percentages of the daily gross receipts are designated for the state, the licensed race meets, and trade and agricultural fair funds.  The amounts not specifically designated by statute go to the bettors at the race meets.  The state's share is .5 percent on daily gross receipts of $200,000 or less, 1.0 percent on receipts from $200,001 to $400,000 and 4.0 percent on receipts over $400,000.  For exotic races, which are those involving multiple wagers, the state receives an additional 2.5 percent on races with two selections and 3.5 percent on races with three or more selections.

The licensee's share is 14.5 percent on daily gross receipts of $200,000 or less, 14.0 percent on receipts from $200,000 to $400,000, and 11.0 percent on receipts over $400,000.  For exotic races, the licensee receives an additional 3.0 percent on races with two selections and 6.0 percent on races with three or more selections.

SUMMARY:

A racing association conducting a licensed race meet may seek approval from the Horse Racing Commission to conduct parimutuel wagering on its program at satellite locations within the state.  Satellite sales are only authorized during the licensee's race meet and simultaneous to all wagering activity conducted at the licensee's facility.

Several restrictions are placed on the location of satellite facilities:  1) the commission may approve only one satellite in each county, but more than one licensee may use the facility; 2) a licensee may not conduct satellite wagering within 50 air miles of its racing facility; 3) a licensee conducting satellite wagering within 50 air miles of another racing facility which conducts meets of 30 days or more must use the facility of the other licensee for its satellite and may not conduct satellite wagering while the other facility is operating; and 4) a licensee may not conduct satellite wagering while another licensee which conducts meets of less than 30 days within 50 air miles is operating.  Also, the commission's authority to approve satellite wagering locations is subject to local zoning and other land use ordinances.

The state's share of the daily gross receipts from satellite wagers is .5 percent on a daily handle of $400,000 or less and 3.0 percent on a daily handle over $400,000.  On exotic races, the state receives an additional 1.0 percent on the satellite wagers.

The licensee's share of the daily gross receipts from satellite wagers is 14.5 percent on a daily handle of $400,000 or less and 12.0 percent on a daily handle over $400,000.  On exotic races, the licensee receives an additional 4.5 percent on races with two selections and 3.5 percent on races with three or more selections.

Fiscal Note:    requested

Senate Committee - Testified:   Representative Doug Sayan; Representative Forrest Baugher; Martin Durkan, Washington Horsemen's PAC