BILL ANALYSIS
AB 605
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Date of Hearing: April 30, 2009
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Curren Price, Chairman
AB 605 (Portantino) - As Introduced February 25, 2009
SUBJECT : Horse racing: proposition pari-mutuel pool wagers.
SUMMARY : Allows thoroughbred horse racing results to be
included in proposition pari-mutuel pool wagers.
EXISTING LAW :
1)Provides that CHRB regulate the various forms of horse racing
authorized in this state.
2)Requires various deductions and distributions to be made from
pari-mutuel pools as specified.
3)Defines "Conventional pari-mutuel pool" as the total wagers on
any horse or horses in a particular race to win, place, or
show.
4)Defines "Exotic pari-mutuel pool" as the total wagers on the
finishing position of two or more horses in a particular race,
such as a quinella or exacta wager, or on horses to win two or
more races, such as a daily double, pick six wagers, or on
other wagers approved by CHRB.
5)Defines a "Proposition pari-mutuel pool" as the total wagers
under the pari-mutuel system on propositions approved by the
board that are based on the results of a live quarter horse or
harness horse race or races.
6)Permits CHRB, upon the request of the association or fair
accepting the wager, and the organization of participating
horsemen, to set the percentage deducted from the pari-mutuel
pool for any new wager introduced after January 1,
2004, as specified.
FISCAL EFFECT : Unknown
COMMENTS :
According to the author, this bill will also allow an
AB 605
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association, which conducts thoroughbred racing to offer,
"Propositional wagering" on a thoroughbred race. For instance,
this simplified form of betting would allow an individual to
choose between odd or even bets, "will" or "will not" wagers, or
head to head horse wagers. Currently, quarter horse and harness
racing associations can offer this type of wagering while
operating a live race meet in California on the respective
breeds.
AB 605 will allow all segments of the industry to take advantage
of this new type of wager, and in the process, create the
potential for new revenue for California's horse racing industry
as well as new fans for the sport.
Supporters indicate that propositional wagers are useful as a
marketing tool to increase public awareness of special events,
such as the Kentucky Derby, the Preakness Stakes, the Belmont
Stakes and the Breeders' Cup.
Incidentally, to date, CHRB has not approved any propositional
wagering for quarter horse or harness races since the law was
instituted in 1996 and amended in 2005. Supporters note that
this will change because thoroughbred interests believe this
type of wager can be used to stimulate attendance and
participation in horse racing at the live track and satellite
facilities.
This bill is somewhat identical to AB 315 (Wright) and AB 2753
(Strickland), which were both vetoed by the Governor during the
1999-2000 Legislative Session.
Prior legislation .
AB 834 (Jones), Chapter 119, Statutes of 2005, contained a
provision, which allowed harness racing results to be included
in proposition pari-mutuel pool wagers.
SB 1439 (Ayala), Chapter 551, Statutes of 1996. Created a new
category of wager available at quarter horse races called the
"propositional" wager.
REGISTERED SUPPORT / OPPOSITION :
Support
AB 605
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Golden Gate Fields
Santa Anita Park
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531