HB1646 (2020) Detail

Relative to historic racing.


HB 1646-FN - AS INTRODUCED

 

 

2020 SESSION

20-2164

08/10

 

HOUSE BILL 1646-FN

 

AN ACT relative to historic racing.

 

SPONSORS: Rep. Abrami, Rock. 19; Rep. Doucette, Rock. 8; Sen. French, Dist 7; Sen. Birdsell, Dist 19

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

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

 

This bill also corrects references to a monetary commission.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2164

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to historic racing.

 

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

 

1  Limitation; Horse and Dog Racing; Historic Racing Included.  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; Lottery Commission; 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 paragraph VI, the lottery commission shall authorize wagers on historic horse racing, whether on an electronic gaming device or otherwise, so long as such wagers meet the requirements of this chapter.  Historic racing machines shall be programmed and operated for pari-mutuel wagering only.

3  Rulemaking; Historic 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  License Required; 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; Requirement for Conducting Historic Horse Race Wagering.  Amend RSA 284 by inserting after section 15-d the following new section:

284:15-e  Requirement for Conducting Historic Horse Race Wagering.  Any person or entity 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  Pari-Mutuel Pools.  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.

7  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)  A method of wagering in which patrons are wagering among themselves; and

(2)  A totalizor or similar mechanical equipment calculates pari-mutuel pools and payouts associated with each winning wager.

II.  A licensee 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 all historic horse races.

(c)  The terminal makes available true and accurate past performance information on each historic horse race prior to the patron make his or her selection.

(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 gaming laboratory to ensure integrity and proper working order.

(g)  Each terminal displays pari-mutuel wagering pool amount that the patron may receive for a winning wager.

(h)  A terminal shall not accept a wager in excess of $10.

(i)  Each licensee shall submit a responsible gaming plan to the lottery commission for review and approval prior to activating any historic horse racing terminals, and every year thereafter.  Such plan shall include identification of postings and materials related to problem gaming to be made available to patrons expressing concerns about problem gaming, house imposed player limits, and self-exclusion plans.

IV.  Racing officials, employees of the game operator employer, any employee or owner of the entity that provides the totalizator system to the game operator employer, 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 game operator employer'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 and used a payment for problem gaming services.

VI.  Each game operator employer shall collect the amount provided for in RSA 284:23, I(d).  Each game operator employer 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 whom the game operator contract 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 under RSA 284:21-j.

VII.  The lottery commission shall adopt rules under RSA 541-A governing historic racing machines.

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

8  Authorization of Historic Racing Machines.  Amend RSA 284:21-h, VI to read as follows:

VI.  The commission shall not authorize the use of any electronic gaming device in any game, lottery, or other offering which was not in use by the commission on or before 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 device used for the purpose of gaming and shall include video slot machines and other gambling devices which function or are designed to emulate a video slot machine or other gambling machine, and computer technology to reveal instant ticket winners.  This section shall not be interpreted to prohibit the commission from replacing offerings, games, or equipment which were in service prior to January 1, 2011 with new offerings, games, or equipment which are the functional equivalent of those offerings, games, or equipment which are being replaced.

9  New Subparagraph; Tax Pari-mutuel.  Amend RSA 284:23, I by inserting after subparagraph (c) the following new subparagraph:

(d)  Each person, association, or corporation licensed to conduct historic horse race wagery 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 moneys to the charitable organizations and lottery commission as set forth in RSA 284:22-b.

10  Effective Date.  This act shall take effect upon its passage.

 

LBAO

20-2164

12/11/19

 

HB 1646-FN- FISCAL NOTE

AS INTRODUCED

 

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

$12,900,000

$12,900,000

$12,900,000

   Expenditures

$0

$24,000

$24,000

$24,000

Funding Source:

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

 

METHODOLOGY:

This bill allows for charitable games of chance operators to offer historic horse racing wagering at their licensed facilities.  The Lottery Commission, based on the stated assumptions, estimates historic horse racing could generate approximately $12.9 million per year in education trust fund revenue:

 

Assumptions

  • Sixteen (16) game operators licensed under RSA 287-D will offer historic horse racing.
  • There would be 1,000 terminals in operation with an estimated daily handle of $1,500 per terminal.
  • Game operators will collect 12% of the handle as commission, of which 75% will remain with the operator and the remaining 25% split between the charitable organization (35%) and the Lottery Commission (65%).
  • All terminals will be installed and operating by July 1, 2020 and growth will remain steady though FY 2023.

 

FY 2021 and Each Year Thereafter

Number of Locations

16

Total Number of Terminals

$1,000

Expected Daily Handle Per Terminal

$1,500

Total Expected Handle

$547,500,000

Total Commission (12% of Total Handle)

$65,700,000

Total Game Operator Revenue (75% of Commission)

$49,275,000

Total Remaining Revenue (25% of Commission)

$16,425,000

 

 

Portion of Remaining Revenue - Charitable Organization (35%)

$5,748,750

 

 

Portion of Remaining Revenue - Lottery Commission (65%)

$10,676,250

Estimated Unclaimed Tickets and Breakage (0.4% of Handle)

$2,190,000

Total Lottery Revenue*

$12,866,250

*Lottery Commission revenue is credited to the lottery fund, with net revenues after expenditures being credited to the state education trust fund.  This bill is not expected to increase state expenditures.

 

The Lottery Commission estimates annual costs relative to auditing services to increase by $24,000 per year, relative to historical horse racing.

 

AGENCIES CONTACTED:

Lottery Commission

 

Links

HB1646 at GenCourtMobile
HB1646 Discussion

Action Dates

Date Body Type
Jan. 28, 2020 House Hearing
March 3, 2020 House Exec Session
House Floor Vote
March 11, 2020 House Floor Vote
March 12, 2020 House Floor Vote

Bill Text Revisions

HB1646 Revision: 7292 Date: Dec. 12, 2019, 11:36 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Ways and Means HJ 1 P. 30
Jan. 28, 2020 ==TIME CHANGE== Public Hearing: 01/28/2020 11:00 am LOB 202
Feb. 5, 2020 Full Committee Work Session: 02/05/2020 02:00 pm LOB 210-211
Feb. 13, 2020 Full Committee Work Session: 02/13/2020 10:00 am LOB 202
Feb. 18, 2020 Full Committee Work Session: 02/18/2020 10:00 am LOB 202
Feb. 18, 2020 Full Committee Work Session: 02/18/2020 01:00 pm LOB 202
March 3, 2020 Executive Session: 03/03/2020 01:00 pm LOB 202
Majority Committee Report: Ought to Pass with Amendment # 2020-1053h (Vote 14-6; RC)
March 11, 2020 Majority Committee Report: Ought to Pass with Amendment # 2020-1053h for 03/11/2020 (Vote 14-6; RC) HC 10 P. 78
Minority Committee Report: Inexpedient to Legislate
March 12, 2020 Special Order (Rep. Abrami): MF DV 136-169 03/12/2020 HJ 8 P. 31
March 12, 2020 Lay on Table (Rep. Stringham): MA RC 155-121 03/12/2020 HJ 8 P. 212
Died on Table