Revision: Jan. 31, 2017, 9:48 a.m.
SB 206-FN - AS INTRODUCED
2017 SESSION
17-0870
08/04
SENATE BILL 206-FN
AN ACT relative to wagering on historic horse racing.
SPONSORS: Sen. French, Dist 7; Sen. Innis, Dist 24
COMMITTEE: Ways and Means
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This bill allows wagering on historic horse racing.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0870
08/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT relative to wagering on historic horse racing.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Limitation. Amend RSA 284:1 to read as follows:
284:1 Limitation. This chapter shall be construed to apply only to running or harness horse racing, whether live, [or] simulcast, or historic, and [or] simulcast dog racing.
2 Lottery Commission. Amend RSA 284:6-a, VI to read as follows:
VI. The lottery commission shall not authorize the use of any electronic gaming device in connection with the acceptance of wagers on running or harness horse racing, whether live, [or] simulcast, or historic, or simulcast dog racing, the type of which was not in use prior to January 1, 2011, unless specific authorization for such electronic gaming device is enacted by the general court. Electronic gaming devices shall mean and include all electro-mechanical instruments and devices used for the purposes of gaming, other than wagering on live, [or] simulcast, or historic horse racing or simulcast dog racing, whether in physical presence or through the Internet, and such shall include, but not be limited to, video slot machines and other gambling devices which function or are designed to function to emulate a video slot machine [or historic racing machine]. This section shall not be interpreted to prohibit licensees under RSA 284 from replacing equipment used in the conduct of wagering on live or simulcast horse racing or simulcast dog racing, which type of equipment was in service prior to January 1, 2011, with updated or new equipment which are the functional equivalent of the machines which are being replaced, provided the equipment is not an electronic gaming device as described in the previous sentence. This section shall not be interpreted as prohibiting licensees from accepting account wagers in compliance with applicable rules and regulations.
3 Rulemaking. Amend RSA 284:12, IV to read as follows:
IV. The sale of pari-mutuel pools as authorized under RSA 284:22, [and] RSA 284:22-a, and RSA 284:22-b.
4 License Required. Amend RSA 284:12-a to read as follows:
284:12-a License Required; Investigation Fees.
I. No person, association, corporation, or any other type of entity shall hold any live running or harness race or meet, shall offer wagers on historic horse races, or shall conduct any simulcast running or harness horse or dog race or meet, at which pari-mutuel pools are sold without a license from the lottery commission.
II. Investigation fees shall be collected by the lottery commission and shall be continually appropriated to the lottery commission and used by the lottery commission to offset the costs of conducting background checks and monitoring of license applicants and licensees as required under this section, RSA 284:16, RSA 284:16-a, RSA 284:19, RSA 284:20, RSA 284:22, [and] RSA 284:22-a, and RSA 284:22-b. Funds received hereunder and not expended for such investigations shall lapse to the special fund established in RSA 284:21-j 2 years after receipt of such funds.
5 New Section; Requirements for License to Conduct Historic Horse Race Wagering. Amend RSA 284 by inserting after section 15-d the following new section:
284:15-e Requirements for License to Conduct Historic Horse Race Wagering
I. Any individual, association, partnership, joint venture, corporation, or other organization or other entity which holds a valid license under RSA 284 to accept pari-mutuel wagers may accept wagers on historic horse races.
II. Any individual, association, partnership, joint venture, corporation, or other organization or other entity which holds a license under RSA 287-D and meets the requirements of RSA 284:15 may accept wagers on historic horse races. Such licensee shall be subject to the provisions of RSA 284:15-b and RSA 284:18.
6 New Section; Pari-Mutuel Pools on Historic Horse Racing. Amend RSA 284 by inserting after section 22-a the following new section:
284:22-b Pari-Mutuel Pools on Historic Horse Racing
I. A licensee under this chapter may sell pari-mutuel pools on historic horse races provided such sales are within the enclosure of the facility at which the licensee holds a license.
II. In this section:
(a) "Historic horse race" means:
(1) Any horse race, whether running or harness, that was previously conducted at a licensed pari-mutuel facility; and
(2) Concluded with official results: and
(3) Concluded without scratches, disqualifications, or dead-heat finishes.
(b) "Licensee" means
(1) Any individual, association, partnership, joint venture, corporation, or other organization or other entity which, as of December 31, 2016, holds a valid license under RSA 284: or
(2) Any individual, association, partnership, joint venture, corporation, or other organization or other entity which, as of December 31, 2016, holds a valid license under RSA 287-D and meets the requirements of RSA 284:15. Such licensee shall be subject to the provisions of RSA 284:15-b and RSA 284:18.
III. In accordance with the provisions of RSA 284:6-a, wagering on historic horse races may take place on electronic gaming devices provided that:
(a) All wagers use the pari-mutuel method of wagering;
(b) A licensee at all times maintains at least 2 terminals offering the same type of wager on historic horse races;
(c) The terminal makes available true and accurate past performance information on each historic horse race prior to the patron making his or her selections;
(d) The terminal shall display a replay of each race, or a portion thereof, whether digital or by way of a video recording, and the official results of each race. The identity of each race shall be revealed to the patron after the patron has placed his or her wager;
(e) The terminals have been tested by an independent testing laboratory to ensure integrity and proper working order; and
(f) Each terminal displays pool amounts that the patron will receive for a winning wager on each pari-mutuel wagering pool.
IV. Racing officials as defined in the rules adopted by the commission, any employer or owner of the entity which provides the totalizator system to the licensee, and any person responsible for the operation of the electronic reproduction equipment which operates the historic horse racing and wagering shall be prohibited from participating in wagering, directly or indirectly, on historic horse races offered at the licensee's facility.
V. The licensee commission on all historic horse race pari-mutuel pools shall be at a rate of not greater than 19 percent. In addition to the above commission, 100 percent of the odd cents of all redistribution based on each dollar watered exceeding a sum equal to the next lowest multiple of 10, known as "breakage", shall be paid to the lottery commission. Each licensee shall pay the tax provided for in RSA 284:23.
7 Tax. Amend the introductory paragraph of RSA 284:23, IV to read as follows:
IV. Each person, association, or corporation licensed to conduct a race or race meet under this chapter shall also pay to the city or town treasurer in which the [racing plant] facility offering pari-mutuel wagering is located for each day of racing, whether such day includes live racing only, simulcast racing only, wagering on historic racing or a combination thereof, the fees assessed in subparagraphs (a) and (b) below, based upon the aggregate pari-mutuel pools conducted, made, or sold by such person, association, or corporation on each such day. This rate is provided if said person, association, or corporation has a license to conduct races or race meets for more than 10 days during the year for which the license is issued. If said person, association, or corporation has a license to conduct races or race meets for 10 days or less, the per diem fee shall be determined by the lottery commission.
8 New Paragraphs; Taxes. Amend RSA 284:23 by inserting after paragraph VII the following new paragraphs:
VIII. Each person, association, or corporation licensed to conduct wagering on historic horse racing under this chapter shall collect a sum of 1.5 percent of the total contributions to all pari-mutuel pools conducted, made, or sold by any such person, association, or corporation, and remit such sum to the lottery commission for deposit in the special fund established in RSA 284:21-j.
IX. Each game operator employer as defined in 287-D licensed to conduct wagering on historic horse racing under this chapter and RSA 287-D shall collect a sum of 1.5 percent of the total contributions to all pari-mutuel pools conducted, made, or sold by the game operator employer, of which 35 percent shall be distributed to charitable organizations with whom the game operator employer contracts on each licensed game date. The remainder of the total amount collected under this paragraph shall be remitted to the lottery commission for deposit in the special fund established in RSA 284:21-j.
9 Effective Date. This act shall take effect January 1, 2018.
17-0870
1/27/17
SB 206-FN- FISCAL NOTE
As Introduced
AN ACT relative to wagering on historic horse racing.
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| |||
| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $195,697 | $635,538 | $635,538 | $635,538 |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Lottery Fund | |||
LOCAL: |
|
|
|
|
Revenue | $682,800 | $1,376,400 | $1,376,400 | $1,376,400 |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill adds historic horse racing to RSA 284 and provides provisions related to licensing, wagering, operation, and taxes specific to historic horse racing. The Lottery Commission states there are 12 locations, two simulcast wagering and ten games of chance facilities, in New Hampshire. Each machine at each location generates an average daily gross of $1,200 in sales. The Commission also provides the following assumptions: historic horse racing machines would be installed upon passage of the bill in FY 2018; the term "race or race meets" includes historic horse racing machines in which facilities are issued a license to conduct a race or race meet for more than ten days during the year; only game operators licensed under RSA 284-D are eligible for a license; and there is no additional license fee charged to the existing licensees. Based on these assumptions, the Commission estimates the following increases to State and local revenues in FY 2018 and for each fiscal year thereafter:
State Impact | FY 2018 (Six Months) | Fiscal Years Thereafter |
Simulcast Facilities | ||
Race Track Locations | 2 | 2 |
Total Historic Horse Racing Machines | 4 | 4 |
Total Daily Handle ($1,200 per machine per day) | $4,800 | $4,800 |
Total Annual Handle | $868,800 | $1,752,000 |
Simulcast State Revenue (1.5% of Total Contributions) | $13,032 | $26,280 |
Game Operators | ||
Game Operator Locations | 10 | 10 |
Total Historic Horse Racing Machines | 60 | 100 |
Total Daily Handle ($1,200 per machine per day) | $72,000 | $120,000 |
Total Annual Handle | $13,032,000 | $43,800,000 |
State Revenue (1.5% of Total Contributions) | $195,480 | $657,000 |
Less 35% of Revenue to Charity | $(68,418) | $(229,950) |
Net Game Operator State Revenue | $127,062 | $427,050 |
Simulcast and Game Operators | ||
State Revenue (simulcast facilities + game operators) | $140,094 | $453,330 |
Estimated Unclaimed Tickets: .25% of Annual Handle Total | $34,752 | $113,880 |
Estimated Breakage: .15% of Annual Handle Total | $20,851 | $68,328 |
Total Estimated State Revenue | $195,697 | $635,538 |
Local Impact {per RSA 284:23, IV (a) and (b)} | FY 2018 (Six Months) | Fiscal Years Thereafter |
Simulcast Facilities | ||
Weekday Per Diem Including Saturdays: (313 X $300 X 2 Facilities) | $93,000 | $187,800 |
Sunday Per Diem: (52 X $400 X 2 Facilities) | $20,800 | $41,600 |
Game Operators | ||
Weekday Per Diem Including Saturdays: (313 X $300 X 10 Facilities) | $465,000 | $939,000 |
Sunday Per Diem: (52 X $400 X 10 Facilities) | $104,000 | $208,000 |
Total Estimated Local Revenue | $682,800 | $1,376,400 |
Pursuant to RSA 284:21-j, I, lottery fund balance (net profit) shall be deposited in the education trust fund at the end of the fiscal year.
AGENCIES CONTACTED:
Lottery Commission