BILL ANALYSIS
Bill No: AB
605
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 605 Author: Portantino
As Introduced: February 25, 2009
Hearing Date: July 8, 2009
Consultant: Chris Lindstrom
SUBJECT
Horse racing: proposition parimutuel pool wagers.
DESCRIPTION
AB 605 allows thoroughbred horse racing results to be
included in proposition parimutuel pool wagers.
EXISTING LAW
Existing law provides that the California Horse Racing
Board (CHRB) regulate the various forms of horse racing
authorized in this state.
Existing law requires various deductions and distributions
to be made from parimutuel pools, as specified.
Existing law defines "conventional parimutuel pool" as the
total wagers on any horse or horses in a particular race to
win, place, or show.
Existing law 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.
Existing law defines a "proposition parimutuel pool" as the
total wagers under the parimutuel system on propositions
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approved by CHRB that are based on the results of a live
quarter horse or harness horse race or races.
Existing law 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 parimutuel pool for any new
wager introduced after January 1, 2004, as specified.
BACKGROUND
Purpose of the bill. According to the author, this bill
will allow an association which conducts thoroughbred
racing to offer "propositional wagering" on thoroughbred
races. For instance, this simplified form of betting would
allow an individual to choose between odd or even bets,
"will" or "will not" wagers, head-to-head horse or "match"
wagers, on any conventional, exotic or other wager.
Currently, the law authorizes quarter horse and harness
racing associations to offer this type of wagering while
operating a live race meet in California on the respective
breeds, subject to CHRB approval.
AB 605 will allow all segments of the industry to take
advantage of this 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.
Background. 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 similar to AB 315 (Wright) and AB 2753
(Strickland) of the 1999-2000 Legislative Session. Both
bills were vetoed by Governor Davis.
PRIOR/RELATED LEGISLATION
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AB 834 (Jones), Chapter 119, Statutes of 2005 . Adds a
harness race or races to the definition of a "proposition
parimutuel pool" which may be approved by CHRB to accept
wagers on a designated race or races. Allows CHRB to set
the total percentage deducted from the parimutuel pool for
proposition wagers and any new type of wager introduced
after January 1, 2004, in an amount of at least 10% and not
more than 30% of the amount handled in the parimutuel pool
for the wager.
AB 2753 (Strickland), 1999-2000 Legislative Session . Would
have broadened the definition of "propositional wagering"
to include wagers on propositions approved by CHRB that are
based on the results of all live horse races, instead of
just quarter horse races. Would have deleted the
requirement that a wager must be placed within seven days
of the transmission of a race, and would have established
state license fee rates for this type of wager. (Vetoed by
Governor Davis)
September 27, 2000
To Members of the Assembly:
I am returning Assembly Bill 2753 without my signature.
This bill promotes an unacceptable expansion of gambling
in
California by permitting proposition wagering on any live
horse race,
instead of just quarter horse races as permitted under
current law.
Moreover, it deletes the requirement that a wager be
placed within
seven days of the transmission of a race. I think that
this is a
reasonable limitation and see no reason to change it.
I do not favor gambling and will not support this
expansion.
AB 315 (Wright), 1999-2000 Legislative Session . Would have
broadened the definition of "propositional wagering" to
include wagers on propositions approved by CHRB that are
based on the results of all live horse races, instead of
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just quarter horse races. (Vetoed by Governor Davis)
October 10, 1999
To Members of the California Assembly:
I am returning Assembly Bill No. 315 without my
signature.
This bill would expand gambling by allowing wagering on
all
horseracing rather than just quarter horse racing in
specified
circumstances.
I made clear last year that I do not personally favor
gambling, and I
certainly do not encourage others to gamble. Therefore,
I am not
generally inclined to support measures that allow more
than a modest
expansion of gaming.
This measure is also premature in that Proposition 1A
will be on the
March 2000 ballot, which will give voters the opportunity
to vote on
gaming on Indian tribal lands in California. It is
appropriate to
let the voters speak before addressing any further gaming
issues.
SB 1439 (Ayala), Chapter 551, Statutes of 1996 . Creates a
new category of wager available at quarter horse races
called the "propositional" wager. Provides that the
propositional wager must be approved by CHRB.
SUPPORT : As of July 6, 2009:
Magna Entertainment Corporation
Santa Anita Park
Golden Gate Fields
OPPOSE : None on file as of July 6, 2009.
FISCAL COMMITTEE : Senate Appropriations Committee
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