BILL ANALYSIS Ó
AB 2287
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Date of Hearing: April 20, 2016
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
AB 2287
(Wilk) - As Amended March 17, 2016
SUBJECT: Horse racing: satellite wagering: out-of-country
thoroughbred races
SUMMARY: On the first Saturday in November, would allow a
thoroughbred racing association or fair to accept wagers on
out-of-country races, until 6:30 p.m., without the consent of
the harness or quarter horse racing association that is then
conducting a live racing meeting in the state.
EXISTING LAW:
1)Provides that California Horse Racing Board (CHRB) shall
regulate the various forms of horse racing authorized in this
state.
2)Provides that CHRB shall have all powers necessary to carry
out the purposes of the Horse Racing Law, such as adopting
rules and regulations to protect the public, allocating dates
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for and controlling horse racing and pari-mutuel wagering, and
enforcing all rules and regulations.
3)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.
4)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 Breeders' Cup, the Dubai Cup, or the
Haskell Invitational.
5)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.
6)Authorizes a thoroughbred racing association or fair to
distribute the audiovisual signal and accept wagers on the
results of out-of-country thoroughbred races during the
calendar period the association or fair is conducting a race
meeting, without the consent of the participating horsemen's
and horsewomen's organization. These imported races are
subject to specified conditions, including the condition that
a thoroughbred racing association or fair may not accept
wagers on out-of-country races commencing after 5:30 p.m.,
Pacific Standard Time, without the consent of the harness or
quarter horse racing association that is then conducting a
live racing meeting.
FISCAL EFFECT: Unknown
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COMMENTS:
Purpose of the bill : According to the author's office, this
bill is intended to help increase the wagering handle on
out-of-country races on a specific day if/when the Breeders Cup
is hosted by a California racetrack and the live race card may
extend beyond 5:30 p.m. AB 2287 would be a limited exemption
with the goal of increasing the overall day's total wagering
handle to generate more revenue for purses, breeder's awards and
racetrack commissions. Purses provide revenue directly to
horsemen (owners and trainers) through winnings of their horses;
purses also indirectly provide revenue to breeders. Statistical
data has shown that as purses increase the expected price of a
buying a horse increases leading to an increase in the supply of
foals, yearlings and associated bloodstock (mares and
stallions).
Background: Current law limits the number of races that may be
imported from the United States by a thoroughbred association or
fair 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. In addition, a thoroughbred racing
association or fair is authorized to distribute the audiovisual
signal and accept wagers on the results of out-of-country
thoroughbred races during the calendar period the association or
fair is conducting a race meeting, without the consent of the
participating horsemen's and horsewomen's organization. These
imported races are subject to specified conditions.
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
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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 pari-mutuel 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 20 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 legislation : 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
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the 50-race per day limit on imported races.
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
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.
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.
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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.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by:Eric Johnson / G.O. / (916) 319-2531
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