BILL ANALYSIS
AB 763
Page 1
Date of Hearing: April 22, 2009
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Kevin De Leon, Chair
AB 763 (Chesbro) - As Introduced: February 26, 2009
Policy Committee: Governmental
Organization Vote: 19 - 0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill authorizes the Humboldt County Fair (HCF) to import
and accept wagers on up to eight out-of-state races during a
racing meeting when live races are being run. In addition, this
bill authorizes a thoroughbred racing association in the
southern zone to import and accept wagers on an additional eight
races from out-of-state locations when HCF is conducting its
live race meet.
FISCAL EFFECT
Potential increase in revenue available to fund the California
Horse Racing Board and the Kenneth L. Maddy Equine Analytical
Laboratory at the University of California, Davis due to
increased wagering opportunities.
COMMENTS
1)Purpose . Under current law, a thoroughbred racing association
or fair is allowed to distribute the audiovisual signal and
accept wagers on the results of out-of-state (up to 32 per
day) and international thoroughbred races (unlimited) 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 would increase the number for the HCF during its
live meet in an attempt to increase revenues generated by
AB 763
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horse racing at the HCF each summer. In 2007 the fair's
handle exceeded $4.2 million. However, by 2008 that amount
was down almost 15 percent to $3.6 million. The sponsors, the
HCF, hope that importing eight additional out-of-state races
per day during their meet would generate additional wagering
revenue for their racing association.
Additionally, this bill authorizes the Del Mar Racing
Association to import an additional eight races a day in order
for Del Mar to handle the contracting, accounting and
administration of the imported races on HCF's behalf.
2)Background . In the late 1990's, California racetracks began
importing additional races from out-of-state and
out-of-country locations to provide California's horse racing
patrons with the opportunity to wager on quality races offered
by racetracks throughout the country. Since the introduction
of this practice, wagering on these out-of-state races has
been well received by the betting public, even though overall
wagering in California is in decline. In general, allowing
wagering on races from out-of-state locations has helped the
industry offset a continued reduction in on-track wagering
activity and a diminishing horse population.
Analysis Prepared by : Julie Salley-Gray / APPR. / (916)
319-2081