BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1303
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                 AB 1303 (Hall) - As Introduced:  February 22, 2013 

          Policy Committee:                              Governmental  
          Organization Vote:                            16 - 0 

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              No

           SUMMARY  

          This bill requires each racing association or fair to inform  
          patrons, through the official program, of the takeout being  
          applied to the handle for a racing meeting.  

           FISCAL EFFECT  

          There are no significant costs associated with this legislation.

           COMMENTS  

           1)Rationale  . This bill requires the publication of the takeout  
            for every race and every type of bet. Each racing day,  
            racetracks sell copies of their official racing program,  
            detailing relevant information about each race (e.g., ages of  
            horses, names of jockeys, trainers). Racing fans use the  
            program when placing their bets so they can be sure that they  
            are wagering on a specific horse in a designated race either  
            in California or other racings jurisdictions.  This  
            information does not include the various takeouts for  
            different races and different type of wagers. 

            At one time, takeout rates were included in past performances  
            but that is not necessarily the case anymore with the influx  
            of intra-state and out-of-state simulcasting added to the  
            daily wagering menu. The author asserts that takeout rates  
            should once again be available on the website of every  
            racetrack and in the programs sold at racetracks and satellite  
            wagering facilities.

           2)Horseracing Takeout  . The horse racing takeout amount is a  








                                                                  AB 1303
                                                                  Page  2

            percentage deducted from all of the wagers before the winnings  
            are paid out to bettors.  These takeout rates vary among  
            states.  California's current rate is 15.95% for conventional  
            thoroughbred wagers (win, place, and show wagers) and 22.68%  
            to 23.68% for exotic thoroughbred wagers (Exacta, Trifecta,  
            and Pick-6). The money from the takeout is used for such  
            things as owner purses, racing association commissions, and  
            breeding incentive programs. In addition, various funds  
            receive money from the takeout to meet specific needs of the  
            industry.  For example, funds have been set up for offsite  
            stabling and transporting horses on race day, to offset the  
            costs of workers compensation, to establish pension plans and  
            provide a welfare fund for backstretch personnel, and to fund  
            the California Marketing Committee, which promotes  
            horseracing.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081