Bill Text - SB41 (2019)

Relative to historical racing.


Revision: June 7, 2019, 3:12 p.m.

SB 41-FN - AS AMENDED BY THE HOUSE

 

03/07/2019   0628s

6Jun2019... 2342h

2019 SESSION

19-0845

08/10

 

SENATE BILL 41-FN

 

AN ACT relative to historical racing.

 

SPONSORS: Sen. French, Dist 7; Sen. Birdsell, Dist 19

 

COMMITTEE: Ways and Means

 

-----------------------------------------------------------------

 

AMENDED ANALYSIS

 

This bill defines and regulates pari-mutuel pools on historic horse racing.

 

This bill also corrects references to a monetary commission.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/07/2019   0628s

6Jun2019... 2342h 19-0845

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to historical racing.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Limitation; Application of Chapter to Historic Racing.  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, or simulcast dog racing.

2  Racing and Charitable Gaming; Historic Racing.  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, or historic 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.

VII.  Notwithstanding the provisions of RSA 284:6-a, VI, the lottery commission shall authorize wagers on historic horse races, whether on an electronic gaming device or otherwise, so long as such wagers meet the requirements of this chapter.  The historic racing machines shall be programmed and operated for pari-mutuel wagering only.

3  Rulemaking; Historic horse Racing.  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  Investigation Fees.  Amend RSA 284:12-a, I to read as follows:

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.

5  New Section; Requirements for Conducting Historic Horse Race Wagering.  Amend RSA 284 by inserting after section 15-d the following new section:

284:15-e  Requirements for Conducting Historic Horse Race Wagering.  Any person who holds a game operator employer license and operates games of chance under RSA 287-D at a facility pursuant to RSA 284:22-b, II may accept wagers on historic horse races.  

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.  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;

(2)  Concluded with official results; and

(3)  Concluded without scratches, disqualifications, or dead-heat finishes.

(b)  "Licensee'' means any individual, association, partnership, joint venture, corporation, or other organization or other entity which holds a game operator employer license under RSA 287-D.

(c)  "Pari-mutuel method of wagering" means:

(1)  For each race or group of up to 10 races, the players shall bet against each other; and

(2)  A totalizator shall be used which displays and bases prizes on the variable pari-mutuel payout odds associated with each horse in the historic race.

II.  A game operator employer licensed under RSA 287-D may sell pari-mutuel pools on historic horse races provided such sales are within the enclosure of the facility at which the licensee holds its licensed activities under RSA 287-D, provided that such facility was licensed as a facility where games of chance are held as of May 1, 2019.

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 outcome of each wager is based solely on the outcome of the historic horse race or races; no random elements may determine the outcome of the patron's wager;

(f)  The terminals have been tested by an independent testing laboratory to ensure integrity and proper working order; and

(g)  Each terminal displays pool amounts that the patron will receive for a winning wager on each pari-mutuel wagering pool.

IV.  Racing officials, any employee or owner of the entity that 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 12 percent.  In addition to the above commission, 100 percent of the odd cents of all redistribution based on each dollar wagered 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.

VI.  Each licensee shall collect the amount provided for in RSA 284:23, I(d).  Each game operator employer as defined in RSA 287-D who is licensed to conduct wagering on historic horse racing under this chapter shall distribute 35 percent of the amount collected to charitable organizations with who the game operator contracts on each licensed game date.  The remainder of the total amount collected by the game operator employer under this paragraph shall be paid to the lottery commission for use according to the special fund established by RSA 284:21-j.

VII.  The lottery commission shall adopt rules governing historic racing machines.

VIII.  No historic racing machine shall be operated except within the location of a licensee during the facility's hours of play of charitable games.

7  Pari-Mutuel Pools; Monetary Commission; References Corrected.  Amend RSA 284:22 to read as follows:

284:22  Pari-Mutuel Pools.  During the calendar years of 1941-2029, a licensee under this chapter may sell pari-mutuel pools in accordance with this chapter and rules adopted by the lottery commission.  Pari-mutuel pools shall be sold within the enclosure of the racetrack where a licensed race or race meet is held or as provided in RSA 284:22-a, and not elsewhere.

I.  The [lottery] commission on all win, place, and show pari-mutuel pools at tracks or race meets at which running horse races are conducted for public exhibition shall be uniform throughout the state at the rate of 19 percent of each dollar wagered in such pools, and the [lottery] commission on all other pari-mutuel pools at such tracks or race meets shall be at the rate of not less than 26 percent of each dollar wagered in such pools and not more than 27 percent of each dollar wagered in such pools as determined from time to time by the licensee which conducts live running horse races after written notice to the lottery commission and, in the absence of written notice, at the rate of 26 percent of each dollar wagered in such pools.  Except as provided in RSA 284:22-a, the amount of the purse at such tracks or race meets at which running horse races are conducted shall be 81/4 percent of each dollar wagered in all pari-mutuel pools, said 81/4 percent to be paid by the licensee out of the [lottery] commission on such pools.  In addition to the above [lottery] commission, 1/2 of the odd cents of all redistribution based on each dollar wagered exceeding a sum equal to the next lowest multiple of 10, known as "breakage", shall be retained by the licensee, 1/4 paid to the state treasury for the use of the state in accordance with the provisions of RSA 284:2 and 1/4 shall be paid to the lottery commission.  The lottery commission shall distribute such breakage to the licensee which paid such breakage to supplement purses of live races conducted by the licensee at the location from which such breakage was paid.  Each licensee shall pay the tax provided for in RSA 284:23.

II.  The[ lottery] commission on all win, place, and show pari-mutuel pools at tracks or race meets at which harness horse races are conducted for public exhibition, including those conducted by agricultural fairs, shall be uniform throughout the state at the rate of 19 percent of each dollar wagered in such pools, and the [lottery] commission on all other pari-mutuel pools at such tracks or race meets shall be at the rate of not less than 25 percent of each dollar wagered in such pools and not more than 26 percent of each dollar wagered in such pools as determined from time to time by the licensee which conducts live harness horse racing after written notice to the lottery commission and, in the absence of such written notice, at the rate of 25 percent of each dollar wagered in such pools.  In addition to the above [lottery] commission, 1/2 of the odd cents of all redistribution based on each dollar wagered exceeding a sum equal to the next lowest multiple of 10, known as "breakage", shall be retained by the licensee, 1/4 paid to the state treasury for the use of the state in accordance with the provisions of RSA 284:2 and 1/4 shall be paid to the lottery commission.  The lottery commission shall distribute such breakage to the licensee which paid such breakage.  Each licensee shall pay the tax provided for in RSA 284:23.

III.  For the purposes set forth in this section, an "agricultural fair" means an association which provides for and pays premiums of $5,000 or more, annually, as is determined by the commissioner of agriculture, markets, and food, in accordance with RSA 284:25.

IV.  Subject to the provisions of RSA 284:22-a, V, the [lottery] commission on all win, place, and show pari-mutuel pools at tracks or race meets at which simulcast dog races are conducted for public exhibition shall be uniform throughout the state at the rate of 19 percent of each dollar wagered in such pools; and the [lottery] commission on all other pari-mutuel pools at such tracks or race meets shall be at the rate of 27 percent of each dollar wagered in such pools.  In addition to the above [lottery] commission, 1/2 of the odd cents of all redistribution based on each dollar wagered exceeding a sum equal to the next lowest multiple of 10, known as "breakage," shall be retained by the licensee, 1/4 paid to the state treasury for the use of the state and 1/4 shall be paid to the lottery commission.  Each licensee shall pay the tax provided for in RSA 284:23.

8  New Paragraph; Historic Racing; Breakage Payments.  Amend RSA 284:23, I by inserting after paragraph (c) the following new paragraph:

(d)  Each person, association, or corporation licensed to conduct historic horse race wagering under this chapter shall collect a sum equal to 25 percent of revenues generated from historic horse race pari-mutuel pools after breakage and payment of winnings to patrons.  The licensee shall pay these monies to the charitable organizations and lottery commission as set forth in RSA 284:22-b.

9  Unclaimed Ticket Money.  Amend RSA 284:31 to read as follows:

284:31  Unclaimed Ticket Money.  On or before January 31 of each year every person, association, or corporation conducting a race or race meet, whether live racing, [or] simulcast racing, or historic horse racing, hereunder shall pay to the state treasurer all moneys collected during the previous year of pari-mutuel pool tickets and vouchers which have not been redeemed.  The books or records of said person, association, or corporation, which clearly show the tickets entitled to reimbursement in any given race, live, [or] simulcast, or historic, shall be forwarded to the lottery commission.  Such moneys shall become a part of the special fund established in RSA 284:21-j.  The state treasurer shall pay the amount due on any ticket or voucher to the holder thereof from funds not otherwise appropriated upon an order from the lottery commission.  Pari-mutuel tickets and vouchers which remain unclaimed after 11 months shall not be paid.  Vouchers shall be remitted to the state treasurer on January 31 of the calendar year, 24 months after the year of the unclaimed voucher.

10  Licensed Facilities; Eligible in 2022.  RSA 284:22-b, II is repealed and reenacted to read as follows:

II.  A game operator employer licensed under RSA 287-D may sell pari-mutuel pools on historic horse races provided such sales are within the enclosure of the facility at which the licensee holds its licensed activities under RSA 287-D.

11  Effective Date.  

I.  Section 10 of this act shall take effect July 1, 2022.

II.  The remainder of this act shall take effect upon its passage.

 

LBAO

19-0845

Amended 3/14/19

 

SB 41-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2019-0628s)

 

AN ACT relative to historical racing.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$152,534

$152,534

$152,534

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [    ] General            [    ] Education            [    ] Highway           [ X ] Other - Lottery Fund

 

 

 

 

 

METHODOLOGY:

This bill allows for the installation of historic horse racing terminals at licensed racetracks and games of chance facilities in New Hampshire.  Based on the assumptions below, this bill is estimated to generate an additional $152,534 in lottery fund revenue for the facilities with eligible locations in FY 2021 and each fiscal year thereafter (pursuant to RSA 284:21-j, I, lottery fund balance, or net profit, shall be deposited in the education trust fund at the end of the fiscal year):

 

Assumptions

  • Currently 14 eligible locations will offer historic horse racing.  This includes 13 licensed game operator employers and 1 dual license in Seabrook that holds both game operator employer and racetrack licenses.
  • No changes in the number of eligible locations will change moving forward.
  • Each of the 14 eligible locations will maintain the minimum two terminals required by this bill.
  • Each location will generate average gross sales of $1,200 per terminal per day.
  • The Lottery Commission assumes this bill will be in effect July 1, 2019 with all devices being installed and operational by July 1, 2020.

 

 

 

FY 2021 and Each Year Thereafter

Racetracks

Total Historic Horse Racing Machines (1 Location X 2 Machines)

2

Total Annual Handle ($1,200 Per Machine X 2 Machines X 365 Days)

$876,000

Net State Revenue (1.25% of Total Handle)

$10,950

Games of Chance

Total Historic Horse Racing Machines (13 Locations X 2 Machines)

26

Total Annual Handle ($1,200 Per Machine X 26 Machines X 365 Days)

$11,388,000

State Revenue (1.25% of Total Handle)

$142,350

Less: 35% to Charity

($49,823)

Net State Revenue from Games Of Chance

$92,528

Total State Revenue

Total State Revenue from Terminals (see above)

$103,478

Estimated Unclaimed Tickets (0.25% of Handle)

$30,660

Estimated Breakage (0.15% of Handle)

$18,396

Total Estimated State Revenue

$152,534

 

The Lottery Commission states this bill will impact state expenditures by an indeterminable amount to regulate the historical racing terminals.  However, the Commission believes any increased expenditures would likely be minimal.  

 

AGENCIES CONTACTED:

Lottery Commission