BILL ANALYSIS �
AB 707
Page 1
Date of Hearing: May 11, 2011
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 707 (Garrick) - As Amended: March 31, 2011
SUBJECT : Horse racing: thoroughbred races.
SUMMARY : Increases from 32 to 60, 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) 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 has been keyed non-fiscal by
Legislative Counsel.
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
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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 707 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 60. 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
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
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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.
In opposition : In opposition to this bill, Los Alamitos Race
Course writes, "this measure will have a detrimental impact on
Los Alamitos. Those who enjoy the sport of wagering on horse
racing will now have the opportunity to wager on seventy-eight
different racing events each day before they see their very
first race from Los Alamitos. This places us at a disadvantage
because many racing patrons might become tired of handicapping
races, and/or possibly have exhausted their bankroll before the
first live race from our racetrack is run."
Prior legislation : AB 2790 (Committee on Governmental
Organization), Chapter 141, Statutes of 2010. Added 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.
SB 899 (Denham), Chapter 279, Statutes of 2010. Deleted 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.
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),
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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
Del Mar Thoroughbred Club
Fairplex Racing Association
LA County Fair Association
Oak Tree Racing Association
Opposition
Los Alamitos Race Course
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531