BILL ANALYSIS
Bill No: AB
2790
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2009-2010 Regular Session
Staff Analysis
AB 2790 Author: Committee on Governmental Organization
As Introduced: March 17, 2010
Hearing Date: June 29, 2010
Consultant: Art Terzakis
SUBJECT
Horse racing: out-of-state thoroughbred races: the
Arlington Million
DESCRIPTION
AB 2790 adds the "Arlington Million" to the group of
specific stake races which are exempt from the 32-race per
day limit on imported races.
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
imported that are part of the race card of certain
prominent races, including the Kentucky Derby, the Kentucky
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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
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 circles 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.
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
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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
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
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 1857 (Cook) 2009-10 Session. Would increase 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.
(Held in this Committee at author's request)
AB 3074 (Governmental Organization) Chapter 508, Statutes
of 2008. Authorized the CHRB to allow harness racing
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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 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: None on file as of June 25, 2010.
OPPOSE: None on file as of June 25, 2010.
FISCAL COMMITTEE: No
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