BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 364 Hearing Date: 7/14/2015
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|Author: |Gipson |
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|Version: |4/30/2015 Amended |
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|Urgency: |No |Fiscal: |No |
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|Consultant:|Arthur Terzakis |
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SUBJECT: Horse racing: out-of-state thoroughbred races:
Belmont Derby Invitational
DIGEST: This bill adds the "Belmont Derby Invitational" to
the group of races in Horse Racing Law which are exempt from the
50-race per day limit on imported races.
ANALYSIS:
Existing law:
1)Provides that the California Horse Racing Board (CHRB) shall
regulate the various forms of horse racing authorized in this
state.
2)Limits the number of races that may be imported by
associations and fairs to no more than 50 races per day on
days when live thoroughbred or fair racing is being conducted
in this state, with specified exceptions.
3)Exempts from that 50-race per day limit races imported that
are part of the race card of certain prominent races,
including the Kentucky Derby, the Kentucky Oaks, the Preakness
Stakes, the Belmont Stakes, the Jockey Club Gold Cup, the
Travers Stakes, the Arlington Million, the Breeders' Cup, the
Dubai Cup, the Arkansas Derby, the Apple Blossom Handicap or
the Haskell Invitational.
AB 364 (Gipson) Page 2 of ?
4)Authorizes thoroughbred racing associations or fairs to
distribute the audiovisual signal and accept wagers on the
results of out-of-state and international thoroughbred races
during the calendar period the association or fair is
conducting live racing, including days on which there is no
live racing being conducted by the association or fair.
This bill adds the "Belmont Derby Invitational" to the group of
races in Horse Racing Law which are exempt from the 50-race per
day limit on imported races.
Background
Belmont Derby Invitational. The $1.25 million Belmont Derby
Invitational (formerly known as the Jamaica Handicap) is an
American thoroughbred horse race held annually in July at
Belmont Park in New York. The grade I race attracts and
showcases a strong international field for the 1 mile turf
race. Notable past entries include Piet (a three time race
winner) and millionaire thoroughbreds Ruhlmann (1988 winner),
Subordination (1997 winner), and Artie Schiller (2004 winner).
The race is part of the internationally themed Stars & Stripes
Racing Festival, also highlighted by the grade I $1 million
Belmont Oaks Invitational for three year-old fillies, the grade
II $500,000 Suburban Handicap, the grade III $500,000 Dwyer for
three year-olds, the grade III $400,000 Belmont Sprint
Championship, and the grade III $150,000 Victory Ride for three
year-old filly sprinters.
Purpose of AB 364. This bill provides that all races imported
by a thoroughbred association or fair that are part of the race
card of the overall Belmont Derby Invitational will be exempted
from the 50-race per day limit, as defined in current law. Over
the years, this law has been amended to allow specific notable
races to be imported outside of this cap for promotional and
financial reasons.
The author's office notes that this bill is intended to help
increase public interest and participation at California
racetracks and satellite wagering facilities. The satellite
importation of this historic and prestigious race will allow
California racetracks to remain competitive, increase the
AB 364 (Gipson) Page 3 of ?
wagering handle on this specific race day and will lead to
increased purses, racetrack revenue, and breeders' awards in
this state.
Satellite Wagering. Satellite wagering via an off-track
facility has been legal in California since 1985. It was
authorized at a time when California racetracks were beginning
to experience declining attendance and handle figures. The
industry believed that making the product easier to access not
only would expose and market horse racing to potential
customers, but also would make it more convenient for the
existing patrons to wager more often.
Simulcasting. Simulcasting is the process of transmitting the
audio and video signal of a live racing performance from one
facility to a satellite for re-transmission to other locations
or venues where parimutuel wagering is permitted. Simulcasting
provides racetracks with the opportunity to increase revenues by
exporting their live racing content to as many wagering
locations as possible, such as other racetracks, fair satellite
facilities and Indian casinos. Revenues are increased because
simulcasting provides racetracks that export their live content
with additional customers in multiple locations who would not
have otherwise been able to place wagers on the live racing
event.
Racetrack Attendance. Over the past 25 years the industry has
witnessed a general decline in the number of people attending
and wagering at live horse racetracks in California due to a
number of factors, including increased competition from other
forms of gaming, unwillingness of customers to travel a
significant distance to racetracks and the availability of
off-track wagering. The declining attendance at live horse
racing events has prompted racetracks to rely on revenues from
in-state and out-of-state satellite wagering and account
wagering.
Prior/Related Legislation
SB 187 (Hall, 2015) adds the "Wood Memorial" to the group of
stakes races in Horse Racing Law which are exempt from the
50-race per day limit on imported races. (Pending in Assembly
policy committee)
AB 1295 (Gray, 2015) provides that the limitation of 50 imported
AB 364 (Gipson) Page 4 of ?
races per day does not apply to races imported into the combined
central and southern zones when there is live thoroughbred or
fair racing being conducted in those zones but no live
thoroughbred or fair racing is being conducted in the northern
zone. (Pending in this committee)
AB 650 (Perea, 2015) adds the full card of races originating
from Keeneland Racecourse in Lexington, Kentucky, on "Blue Grass
Stakes" day, to the group of stakes races in Horse Racing Law
which are exempt from the 50-race per day limit on imported
races. (Senate Inactive File)
AB 2655 (Hall, Chapter 149, Statutes of 2014) added the "Apple
Blossom Handicap" to the group of stakes races in Horse Racing
Law which are exempt from the 50-race per day limit on imported
races.
AB 2693 (Governmental Organization, Chapter 350, Statutes of
2012), among other things, added the "Arkansas Derby" to the
group of stakes races in Horse Racing Law which are exempt from
the 50-race per day limit on imported races.
AB 2520 (Hall, Chapter 347, Statutes of 2012) increased the
number of races quarter or harness racing associations are
allowed to import for simulcast wagering purposes from eight to
ten per day on live racing days.
AB 707 (Garrick, Chapter 84, Statutes of 2011) increased from 32
to 50, the limitation on the total number of out-of-state
thoroughbred races that may be imported per day by a
thoroughbred association or fair that is conducting a live race
meet with approval by the CHRB.
AB 2790 (Governmental Organization, Chapter 141, Statutes of
2010) added the "Arlington Million" to the list of imported
races not subject to the limitation of 32 races per day.
SB 899 (Denham, Chapter 279, Statutes of 2010) deleted the
statewide cap on the number of out-of-country thoroughbred races
that a thoroughbred racing association or fair may import,
simulcast, and on which wagers may be accepted statewide in any
given year.
AB 136 (Silva, Chapter 221, Statutes of 2009) deleted the
limitation on the total number of out-of-state or out-of-country
AB 364 (Gipson) Page 5 of ?
harness or quarter horse races that may be imported in a
calendar year by a harness or quarter horse racing association.
AB 763 (Chesbro, Chapter 122, Statutes of 2009) authorized the
Humboldt County Fair to offer satellite wagering on eight
out-of-state races during the August days when the fair is
offering live racing, if specified conditions are met.
AB 2048 (Silva, Chapter 439, Statutes of 2008), among other
things, increased by two (from six to eight) the number of races
that a harness and quarter horse racing association could import
on live racing days from out-of-state and out-of-country
locations.
AB 3074 (Governmental Organization, Chapter 508, Statutes of
2008) authorized the CHRB to allow harness racing tracks to
accept wagers during the Kentucky Futurity and increased from 23
to 32 the total number of thoroughbred races that may be
imported statewide for satellite wagering by associations or
fairs.
SB 379 (Denham, Chapter 443, Statutes of 2007) added the "Dubai
World Cup" to a specified day of races that would be exempted
from the 23-race day limit on imported races for satellite
wagering.
AB 241 (Price, Chapter 594, Statutes of 2007), among other
things, authorized all fairs to operate a satellite wagering
facility off of the fair grounds. In addition, authorized the
establishment of up to 45 "mini-satellite" wagering sites to be
operated by private industry throughout the state.
AB 765 (Evans, Chapter 613, Statutes of 2007) among other
things, reauthorized horse racing's Advance Deposit Wagering
law, which was due to "sunset" on January 1, 2008.
AB 1736 (Governmental Organization, Chapter 444, Statutes of
2007) added the "Travers Stakes" to a specified day of races
that would be exempted from the 23-race day limit on imported
races for satellite wagering.
SB 1183 (Margett, Chapter 232, Statutes of 2004) authorized a
harness racing association that is conducting a live race
meeting to accept wagers on the full card of races conducted by
AB 364 (Gipson) Page 6 of ?
another racing association on the day the other racing
association conducts the Breeders Crown Stakes, the Meadowlands
Pace, the Hambletonian or the North American Cup.
AB 509 (Jerome Horton, Chapter 235, Statutes of 2004) allowed a
thoroughbred racing association or fair to import the
audiovisual signal, and accept wagers on, the results of
out-of-country thoroughbred races.
AB 471 (Hertzberg, Chapter 198, Statutes of 2001), among other
things, allowed a California resident to wager on races
(including most out-of-state racetracks) using the phone,
Internet or other electronic media.
SB 27 (Maddy, Chapter 335, Statutes of 1998), among other
things, authorized wagering on the results of out-of-state
thoroughbred races provided that the total number accepted
statewide in any given year does not exceed the total number of
thoroughbred races on which wagers were accepted in 1998. Also,
capped the total number of thoroughbred races imported at 23 per
day.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: No Local: No
SUPPORT:
None received
OPPOSITION:
None received