BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 1003|
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CONSENT
Bill No: SB 1003
Author: Evans (D)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORGANIZATION COMM. : 9-0, 4/8/14
AYES: Correa, Berryhill, Cannella, De Le�n, Galgiani, Lieu,
Padilla, Torres, Vidak
NO VOTE RECORDED: Hernandez, Vacancy
SUBJECT : Horse racing: out-of-state thoroughbred races
SOURCE : Author
DIGEST : This bill increases, from 50 to 55, 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).
ANALYSIS :
Existing law:
1. Requires the CHRB 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
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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 Arlington Million, the Breeders'
Cup, the Dubai Cup, the Arkansas Derby 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.
This bill increases, from 50 to 55, 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 CHRB.
Background
Racetrack attendance . Over the past 25 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 legislation . AB 707 (Garrick, Chapter 84, Statutes of
2011) increased, from 32 to 50, the limitation on the total
number of out-of-state thoroughbred races that may be imported
per day by a thoroughbred association or fair.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local:
No
SUPPORT : (Verified 4/9/14)
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California Authority of Racing Fairs
Sonoma County Fair
ARGUMENTS IN SUPPORT : The author's office contends that 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.
The author's office also points out that racing fairs continue
to face growing competition in the "wagering" world and must
compete with various types of gambling options such as advanced
deposit wagering (ADW) which is a form of betting on horse races
conducted via the Internet or by telephone. The author's office
believes that this bill will enable satellite wagering
facilities to be more competitive with ADW providers which have
no caps on the number of races offered to patrons in California.
Furthermore, the author's office emphasizes that this bill will
provide the industry a marketing tool to increase on-track and
off-track attendance as a result of more quality races from
out-of-state locations being offered to their wagering patrons
on a daily basis.
MW:k 4/9/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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