BILL ANALYSIS �
AB 562
Page 1
Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 562 (Hall) - As Introduced: February 16, 2011
SUBJECT : Horse racing: Wood Memorial.
SUMMARY : Adds the Wood Memorial to the group of specific stake
races which 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.
3) 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.
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 live racing
being conducted by the association or fair.
FISCAL EFFECT : This bill is keyed non-fiscal by the
Legislative Counsel.
COMMENTS :
The Wood Memorial Stakes is a Grade 1 stakes race for
three-year-old thoroughbreds, located at
the Aqueduct Racetrack in Queens, New York. Each April, this
prestigious race acts as a major
prep for three-year-old horses with eleven winners having gone
AB 562
Page 2
on to capture victory in the
Kentucky Derby, four of whom captured the Triple Crown. The
race is shown each year on
ESPN.
This measure provides that all races imported by a Thoroughbred
association or fair that are part of the race card of the
overall Wood Memorial 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
Wood Memorial 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 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
AB 562
Page 3
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.
Prior legislation : AB 2790 (Assembly Committee on Governmental
Organization), Chapter 141, Statutes of 2010. Adds the
Arlington Million to the group of specific stake races which are
exempt from the 32-race per day limit on imported races.
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
AB 562
Page 4
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531