BILL ANALYSIS
Bill No: AB
1857
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 1857 Author: Cook
As Introduced: February 12, 2010
Hearing Date: June 22, 2010
Consultant: Art Terzakis
SUBJECT
Horse racing: out-of-state thoroughbred races
DESCRIPTION
AB 1857 increases from 32 to 36 the total number of
thoroughbred horse races that may be imported statewide for
satellite simulcast and wagering, not including numerous
specified exceptions to this cap.
EXISTING LAW
Existing law 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.
Existing law 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.
Existing law 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.
Existing law exempts from that 32-race per day limit races
AB 1857 (Cook) continued
Page 2
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.
BACKGROUND
AB 1857 would increase 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 is also intended to provide 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.
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
pari-mutuel wagering is permitted. Simulcasting provides
racetracks with the opportunity to increase revenues by
AB 1857 (Cook) continued
Page 3
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: 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 2790 (Governmental Organization) 2009-10 Session. Would
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 this
Committee)
SB 899 (Denham) 2009-10 Session. Would delete 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. (Pending in Assembly policy
committee)
AB 3074 (Governmental Organization) Chapter 508, Statutes
of 2008. Authorized the CHRB to allow harness racing
tracks to accept wagers during the Kentucky Futurity and
increased from 23 to 32 the total number of thoroughbred
races that may be imported statewide for satellite wagering
by associations or fairs.
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.
AB 1857 (Cook) continued
Page 4
AB 241 (Price) Chapter 594, Statutes of 2007. Among other
things, authorized all fairs to operate a satellite
wagering facility off of the fair grounds. In addition,
authorized the establishment of up to 45 "mini-satellite"
wagering sites to be operated by private industry
throughout the state.
AB 1736 (Governmental Organization) Chapter 444, Statutes
of 2007. Added the "Travers Stakes" to a specified day of
races that would be exempted from the 23-race day limit on
imported races for satellite wagering.
AB 509 (Jerome Horton) Chapter 235, Statutes of 2004.
Allowed a thoroughbred racing association or fair to import
the audiovisual signal, and accept wagers on, the results
of out-of-country thoroughbred races.
SB 27 (Maddy) Chapter 335, Statutes of 1998. Among other
things, authorized wagering on the results of out-of-state
thoroughbred races provided that the total number accepted
statewide in any given year does not exceed the total
number of thoroughbred races on which wagers were accepted
in 1998. Also, capped the total number of thoroughbred
races imported at 23 per day.
SUPPORT: California Authority of Racing Fairs
OPPOSE: None on file as of June 22, 2010.
FISCAL COMMITTEE: No.
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