BILL ANALYSIS
AB 1857
Page 1
ASSEMBLY THIRD READING
AB 1857 (Cook)
As Introduced February 12, 2010
Majority vote
GOVERNMENTAL ORGANIZATION 19-0
-----------------------------------------------------------------
|Ayes:|Coto, Gilmore, Blakeslee, | | |
| |Chesbro, Cook, De Leon, | | |
| |Evans, Galgiani, Hall, | | |
| |Hernandez, Jeffries, | | |
| |Lieu, Ma, Mendoza, | | |
| |Nestande, Portantino, | | |
| |Silva, Torres, Tran | | |
| | | | |
-----------------------------------------------------------------
SUMMARY : Increases, from 32 to 36, 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 California Horse Racing
Board (CHRB).
EXISTING LAW :
1)Provides that CHRB 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 32 races per day on
days when live Thoroughbred or fair racing is being conducted
in this state, with specified exceptions. Exempts from that
32-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.
3)Provides that wagering on these races may occur without the
consent of the horsemen/women participating in the meet, and
without regard to the amount of purses involved with the
races.
4)Authorizes Thoroughbred racing associations or fairs to
AB 1857
Page 2
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 : This bill is keyed non-fiscal.
COMMENTS : The scale and scope of horse racing is governed by
statute. Any attempt to expand its market requires legislative
action. The California Legislature has attempted to address the
racing industry's long-term viability through a number of
legislative efforts to expand the exposure of horse racing to
the general public and enhance horse racing's marketability.
AB 1857 increases the number of out-of-state races on which
Thoroughbred and fair racing associations may simulcast and
accept wagers on each day from 32 to 36. The author states by
allowing Thoroughbred and fair racing associations to import
more out-of-state races, it will give the horse racing industry
a marketing tool and leverage with racetracks outside of this
state. Presently, due to specific importation restrictions,
Thoroughbred and fair racing associations are sending their
signal to out-of-state locations, but are not able to receive
the maximum rate for their live racing product. However, if
these racing associations were able to accept more out-of-state
races under some type of reciprocity agreement, a majority of
the money wagered between the two markets would stay in this
state for track commissions, purses, and breeders' awards.
This measure will also give the industry a marketing tool to
increase on-track and off-track attendance because more quality
races from out-of-state locations would be offered to their
wagering patrons on a daily basis.
Background:
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
AB 1857
Page 3
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 retransmission 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 : There has been 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.
Related legislation : AB 2790 (Committee on Governmental
Organization) of 2010, add races that are part of the race card
of the Arlington Million to the list of imported races not
subject to the limitation of 32 races per day. (Pending in
Assembly G.O. Committee)
SB 899 (Denham) of 2010, deletes 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. (Senate Floor)
Prior legislation : AB 3074 (Governmental Organization
Committee), Chapter 510, Statutes of 2008. Allows a harness
racing association in California to import all of the races
conducted on Kentucky Futurity day, irrespective of the six-race
day limit in law and increases, from 23 to 32, 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.
AB 1857
Page 4
AB 1736 (Assembly Committee on Governmental Organization),
Chapter 444, Statutes of 2007. Adds the "Travers Stakes" to the
group of specific stake races which are exempt from the 23-race
per day limit on imported races, as specified.
SB 379 (Denham), Chapter 443, Statutes of 2007. Adds the Dubai
World Cup race to a specified list of races that would be
exempted from the 23-race per day limit on imported races for
satellite wagering in California.
SB 590 (Perata), Chapter 936, Statutes of 2001. Authorizes
Thoroughbred racing associations and fairs in the northern
racing zone to increase the number of imported racing simulcasts
available to be wagered upon if the CHRB reduces the number of
live racing days.
AB 509 (Jerome Horton), Chapter 235, Statutes of 2004. Allows a
Thoroughbred or fair association 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 under specified conditions.
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531
FN: 0004239