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F I S C A L I M P A C T R E P O R T

SPONSOR Luján, B.

DATE TYPED 2/25/05

HB 719/aHBIC

SHORT TITLE Create Offense of Account Wagering

SB

ANALYST Medina

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Companion to HB 648

SOURCES OF INFORMATION

LFC Files

Responses Received From

Gaming Control Board (GCB)

Attorney General (AG)

Administrative Office of the Courts (AOC)

SUMMARY

Synopsis of HBIC Amendment

The House Business and Industry Committee amendment provides that nothing in the bill pro-

hibits any activity authorized by Sections 60-1-25 and 60-1-25.1 NMSA 1978. These sections

permit the simulcasting of races being run at licensed New Mexico racetracks and allow a li-

censed New Mexico racetrack to participate in interstate common pools, respectively.

Synopsis of Original Bill

House Bill 719 amends statute to prohibit account wagering in any form. The bill makes it

unlawful to receive, transmit, or forward information of anything of value to place a bet or to as-

sist in the placing of a bet through the use of a system of account wagering, whether or not the

account wagering system is located in New Mexico. The bill sets a fourth degree felony offense

for violation of the prohibition on account wagering.

House Bill 719/aHBIC -- Page 2

Significant Issues

Due to technological advancements, account wagering is becoming a growing phenomenon na-

tionwide. Violation of the prohibition on account wagering is a fourth degree felony. According

to the Gaming Control Board, law enforcement or gaming regulatory agencies with law en-

forcement power will need to train individuals in the area of computer forensics.

According to the Attorney General, there may jurisdictional issues in those cases where the indi-

viduals setting up a wagering account in another state are allowed to do so by that state’s laws,

but would be violating New Mexico law.

ADMINISTRATIVE IMPLICATIONS

Investigative personnel of GCB would need to be trained to conduct investigations on account

wagering, specifically in computer forensics.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

There would continue to be prohibition of account wagering. Law enforcement would have no

effective means to stop individuals from betting within New Mexico using an account balance by

means of telephone, internet, wire, or cable to venues outside of the state.

DXM/yr