BILL ANALYSIS �
AB 2693
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Date of Hearing: April 18, 2012
ASSEMBLY COMMITTEE ON GOVERNMENTAL ORGANIZATION
Isadore Hall, Chair
AB 2693 (Governmental Organization Committee) - As Introduced:
March 15, 2012
SUBJECT : Horse racing: Arkansas Derby.
SUMMARY : Adds the Arkansas Derby to the group of stake races
in Horse Racing Law which are exempt from the 50-race per day
limit on imported races, as defined.
EXISTING LAW :
1) Grants the California Horse Racing Board (CHRB) the
authority to 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 50 races per day on days
when live Thoroughbred or fair racing is being conducted in this
state, with specified exceptions.
3) Exempts from that 50 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 : Unknown.
COMMENTS :
Purpose of the bill : The author's office notes that this bill
will help increase the wagering handle on this specific day
(Arkansas Derby) which will lead to increased purses, racetrack
revenue, and breeders' awards in California. Purses are
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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.
The author's office states "California's racing industry has
found that it's much easier to make a big day bigger relative to
their marketing efforts rather than trying to increase
attendance on a typical Wednesday or Thursday." The author's
office believes that this bill also provides 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 Arkansas
Derby horse race.
Background :
Arkansas Derby : The Arkansas Derby is a Grade 1 stakes race for
three-year-old thoroughbreds, which is held annually at Oaklawn
Park in Hot Springs, Arkansas. Each April, this prestigious
race acts as a major prep for three-year-old horses with two
winners having gone on to victory in the Kentucky Derby. The
race is shown each year on ESPN.
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 believes that making the product easier to access not
only exposes and markets horse racing to potential customers,
but also makes 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 otherwise
would not have been able to place wagers on the live racing
event.
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Racetrack Attendance : Over the past 20 years 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 (Assembly Governmental
Organization Committee), 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 3074 (Assembly Governmental Organization Committee), Chapter
510, Statutes of 2008, among other things, 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 Governmental Organization Committee), 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.
SB 379 (Denham), Chapter 443, Statutes of 2007, adds the Dubai
World Cup race to a specified list of races exempt from the
23-race per day limit on imported races for satellite wagering
in California.
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.
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
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live racing days.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file
Opposition
None on file
Analysis Prepared by : Eric Johnson / G. O. / (916) 319-2531