BILL ANALYSIS
AB 2790
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Date of Hearing: May 5, 2010
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Joe Coto, Chair
AB 2790 (Committee on Governmental Organization) - As
Introduced: March 17, 2010
SUBJECT : Horse racing: out-of-state thoroughbred races: the
Arlington Million.
SUMMARY : Adds the "Arlington Million" to the group of specific
stake races which are exempt from the 32-race per day limit on
imported races, as specified. Specifically, this bill :
1)Authorizes a thoroughbred horse racing association or fair to
distribute the audiovisual signal and accept wagers on the
results of the Arlington Million while providing that these
races are exempt from the 32 race per day limit on imported
races, as defined.
EXISTING LAW :
1)Provides that California Horse Racing Board (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
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
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live racing being conducted by the association or fair.
FISCAL EFFECT : Unknown.
COMMENTS :
The Arlington Million is a prestigious Grade 1 horse race in the
United States for thoroughbred horses aged three years and
upward. It is raced over a distance of 1 miles on the turf at
Arlington Park, Arlington Heights, Illinois (a suburb of
Chicago) in August each year.
The Arlington Million, as its name implies was the first
thoroughbred race to offer a purse of $1,000,000 in August 1981.
It is part of the Breeders' Cup Challenge series, the winner of
the Arlington Million automatically qualifies for the Breeders'
Cup Turf. The "Million" is considered by many in American
racing circle to be the most prestigious turf race in the
country behind only the Breeders' Cup.
This measure provides that all races imported by a Thoroughbred
association or fair that are part of the race card of the
overall Arlington Million day would be exempted from the 32-race
per day limit as defined in current law. Over the years, this
law has been amended to allow specific notable races to be
imported outside of this cap for promotional and financial
reasons.
The author notes this bill will help to increase the wagering
handle on this specific day which will lead to increased purses,
racetrack revenue, and breeders' awards in California. Purses
are important to California's racing industry because they
provide revenue to horse owners for their racing operations and
to breeders through an increase in the value of their breeding
stock. California's racing industry has found that it's much
easier to make a big day bigger relating to their marketing
efforts rather than trying to increase attendance on a typical
Wednesday or Thursday. The bill will also give the racing
industry a marketing tool to increase on-track and off-track
attendance on this designated day because racing fans will want
to wager on all the races from the host track of the prestigious
Arlington Million horse race.
Background:
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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 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 :
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)
AB 1857 of 2010, 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 CHRB. (Pending in
Assembly G.O. Committee)
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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 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.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson/ G. O. / (916) 319-2531
AB 2790
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