BILL ANALYSIS Ó
SB 187
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Date of Hearing: July 8, 2015
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Adam Gray, Chair
SB
187 (Hall) - As Amended April 21, 2015
SENATE VOTE: 35-0
SUBJECT: Horse racing: out-of-state thoroughbred races: Wood
Memorial.
SUMMARY: Adds the "Wood Memorial" to the group of stake races
in Horse Racing Law which are exempt from the 50-race per day
limit on imported races.
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,
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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.
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.
FISCAL EFFECT: Unknown
COMMENTS:
Purpose of the bill . This bill provides that all races imported
by a thoroughbred association or fair that are part of the race
card of the overall Wood Memorial day would be exempted from the
50-race per day limit, as defined in current law. Over the
years, this provision of 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
wagering handle on this specific race day and will lead to
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increased purses, racetrack revenue, and breeders' awards in
this state.
Wood Memorial Stakes . The Wood Memorial is a Thoroughbred horse
race for three-year-olds held annually in April at Aqueduct
Racetrack in Queens, New York. It is a Grade I race run over a
distance of nine furlongs (1-1/8 miles) on dirt. The Wood
Memorial is one of five races run as preps for the U.S. Triple
Crown. Eleven winners of the Wood Memorial have won the
Kentucky Derby. Four of them also won the Triple Crown.
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
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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 . AB 650 (Perea), 2015-2016
Legislative Session. Adds the "Blue Grass Stakes" to the group
of stake races in Horse Racing Law which are exempt from the
50-race per day limit on imported races. (Senate Inactive File)
AB 1295 (Gray), 2015-2016 Legislative Session. Would provide
that the limitation of 50 imported 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 Senate G.O.
Committee)
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AB 2655 (Hall), Chapter 149, Statutes of 2014. Added the "Apple
Blossom Handicap" to the group of stake races in Horse Racing
Law which are exempt from the 50-race per day limit on imported
races.
AB 2693 (Governmental Organization Committee), Chapter 350,
Statutes of 2012. Among other things, added the "Arkansas
Derby" to the group of stake races in Horse Racing Law which are
exempt from 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 Committee), 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 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.
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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.
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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