Analysis

Synopsis:

 House Bill 199 (HB 199) amends the Horse Racing Act to provide for advance deposit wagering.

Analysis:

 House Bill 199 (HB 199) amends the Horse Racing Act to provide for advance deposit wagering.

SECTION 1. Amends Business Licenses Horse Racing Act Section 60-1A-2 NMSA 1978 (being Laws 2007, Chapter 39, Section 2) DEFINITIONS as used in the Horse Racing Act (Act). 

Subsection A inserts a definition of advance deposit wagering as follows and then reletters the section:
A. ”advance deposit wagering" means a form of pari-mutuel wagering in which an individual may deposit money in an account with an authorized licensee and use the account balance to pay for pari-mutuel wagers made by communication with the licensed wagering provider through electronic means. Placing an advance deposit wager is not gambling as defined in Section 30-19-2 or 30-19-3 NMSA 1978; 

Subsection S inserts that in a pari-mutuel wagering system the racetrack licensee may be represented by “its designee”  possibility of a racetrack licensee or its designee for distribution.  

Subsection T inserts text in the definition as follows:
[S.] T. "pari-mutuel wagering pool" means the total of all money wagered pursuant to a specific wagering and payout condition permitted by the Horse Racing Act on a specific horse race through pari-mutuel wagering systems; 

SECTION 2. Amends Section 60-1A-15 NMSA 1978 (being Laws 2007, Chapter 39, Section 15) PARI-MUTUEL WAGERING AUTHORIZED--ADVANCE DEPOSIT WAGERING--GAMBLING STATUTES DO NOT APPLY.

A. Inserts the provision that the commission shall promulgate rules to conduct wagering on horse races that include the use of third-party information and technology service providers. 

B. Adds that pari-mutuel wagering may be conducted via advance deposit wagering accounts pursuant to this section.

C.  Adds that authorization of advance deposit wagering is pari-mutuel wagering on horse races if conducted in compliance with this section and the federal Interstate Horseracing Act of 1978. 

D. Adds that advance deposit wagering shall only be conducted by a racetrack licensee per commission approval, which the commission shall approve in conjunction with the racetrack license either through the use of an approved wagering hub or through an agreement with an advance deposit wagering service provider. 

E. Adds the specifics required for a request to the commission to conduct advance deposit wagering.

F. Adds that a racetrack licensee or advance deposit wagering service provider conducting business in the state shall retain an amount of not more than five percent from wagers on races in New Mexico. The remainder of the retainage and allowable deductions from an account wagering handle pursuant to this section shall be apportioned in the same proportions described in Sections 60-1A-18 and 60-1A-19 NMSA 1978. 

G. Adds that a racetrack licensee or advance deposit wagering service provider conducting business in the state pursuant to the Horse Racing Act shall pay a source market fee of five percent of the total of all wagers accepted from a New Mexico resident on horse races conducted outside the state of New Mexico. Funds collected pursuant to this subsection shall be deposited to a trust account held by the New Mexico Horsemen's Association and allocated to the following entities quarterly as follows: (1) 45 percent to the racetrack licensees based on a number of live racing days allocated in the current fiscal year basis to be used as purses at those tracks; (2) 45 percent to the racetrack licensees based on a number of live racing days allocated in the current calendar year basis as revenue; (3) five percent to the breeder award fund; and (4) five percent to the commission to be added to the Racehorse Testing Fund.

SECTION 3. Amends Subsection E of  Section 60-1A-16 NMSA 1978 (being Laws 2007, Chapter 39, Section 16) SIMULCASTING  to add “via advance deposit wagering” to the list of exceptions to the prohibition on pari-mutuel racing.

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