SENATE BILL 564

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO HORSE RACING; DEFINING "ADVANCE DEPOSIT WAGERING"; AUTHORIZING ADVANCE DEPOSIT WAGERING; ESTABLISHING REQUIREMENTS FOR RULES REGULATING ADVANCE DEPOSIT WAGERING; ELIMINATING CERTAIN RESTRICTIONS ON WHEN AND WHERE PARI-MUTUEL WAGERING MAY OCCUR.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 60-1A-2 NMSA 1978 (being Laws 2007, Chapter 39, Section 2) is amended to read:

     "60-1A-2. DEFINITIONS.--As used in the Horse Racing Act:

          A. "advance deposit wagering" means a form of pari-mutuel wagering on horse races in which patrons, prior to betting, place funds on account and against which wagers are debited and winnings are credited;

          [A.] B. "board" means the gaming control board;

          [B.] C. "breakage" means the odd cents by which the amount payable on each dollar wagered exceeds a multiple of ten;

          [C.] D. "commission" means the state racing commission;

          [D.] E. "exotic wagering" means all wagering other than on win, place or show, through pari-mutuel wagering;

          [E.] F. "export" means to send a live audiovisual broadcast of a horse race in the process of being run at a horse racetrack from the originating horse racetrack to another location;

          [F.] G. "guest state" means a jurisdiction, other than the jurisdiction in which a horse race is run, in which a horse racetrack, off-track wagering facility or other facility that is a member of and subject to an interstate common pool is located;

          [G.] H. "guest track" means a horse racetrack, off-track wagering facility or other licensed facility in a location other than the state in which a horse race is run that is a member of and subject to an interstate common pool;

          [H.] I. "handle" means the total of all pari-mutuel wagering sales, excluding refunds and cancellations;

          [I.] J. "horse race" means a competition among racehorses on a predetermined course in which the horse completing the course in the least amount of time generally wins;

          [J.] K. "host state" means the jurisdiction within which a sending track is located, also known as a "sending state";

          [K.] L. "host track" means the horse racetrack from which a horse race subject to an interstate common pool is transmitted to members of that interstate common pool, also known as a "sending track";

          [L.] M. "import" means to receive a live audiovisual broadcast of a horse race;

          [M.] N. "interstate common pool" means a pari-mutuel pool that combines comparable pari-mutuel pools from one or more locations that accept wagers on a horse race run at a sending track for purposes of establishing payoff prices at the pool members' locations, including pools in which pool members from more than one state simultaneously combine pari-mutuel pools to form an interstate common pool;

          [N.] O. "jockey club" means an organization that administers thoroughbred registration records and registers thoroughbreds;

          [O.] P. "licensed premises" means land, together with all buildings, other improvements and personal property located on the land, that is under the direct control of a racetrack licensee, including the restricted areas, grandstand and public parking areas;

          [P.] Q. "licensee" means a person licensed by the commission and includes a holder of an occupational, secondary or racetrack license;

          [Q.] R. "occupational license" means a license issued by the commission to a vendor or to a person having access to a restricted area on the licensed premises, including a horse owner, trainer, jockey, agent, apprentice, groom, exercise person, veterinarian, valet, farrier, starter, clocker, racing secretary, pari-mutuel clerk and other personnel designated by the commission whose work, in whole or in part, is conducted around racehorses or pari-mutuel betting windows;

          [R.] S. "pari-mutuel wagering" means a system of wagering in which bets on a live or simulcast horse race are pooled and held by the racetrack licensee for distribution of the total amount, less the deductions authorized by law, to holders of winning tickets; "pari-mutuel wagering" does not include bookmaking or pool selling;

          [S.] T. "pari-mutuel wagering pool" means the money wagered on a specific horse race through pari-mutuel wagering;

          [T.] U. "practical breeder" means a person who has practical experience in breeding horses, although the person may not be actively involved in breeding horses;

          [U.] V. "primary residence" means the domicile where a person resides for most of the year, and, if the person is temporarily out of state, the address where a person will return when the person returns to New Mexico or the address that a person uses for purposes of a driver's license, passport or voting;

          [V.] W. "quarter horse" means a racehorse that is registered with the American quarter horse association or any successor association;

          [W.] X. "race meet" means a period of time within dates specified by the commission in which a racetrack licensee is authorized to conduct live racing on the racing grounds;

          [X.] Y. "racehorse" means a quarter horse or thoroughbred that is bred and trained to compete in horse races;

          [Y.] Z. "racetrack license" means a license to conduct horse races issued by the commission;

          [Z.] AA. "racetrack licensee" means a person who has been issued a racetrack license;

          [AA.] BB. "racing grounds" means the area of the restricted area of licensed premises used for the purpose of conducting horse races and all activities ancillary to the conduct of horse races, including the track, stable area, jockey's quarters and horse training areas;

          [BB.] CC. "retainage" means money that is retained from wagers on win, place and show and on exotic wagers by a racetrack licensee pursuant to the Horse Racing Act;

          [CC.] DD. "restricted areas" means the stable area, the area behind the pari-mutuel betting windows and anywhere on the racing grounds;

          [DD.] EE. "secondary licensee" means all officers, directors, shareholders, lenders or holders of evidence of indebtedness of a corporation or legal entity owning a horse racetrack, and all persons holding a direct or indirect interest of any nature whatsoever in the horse racetrack, including interests or positions that deal with the funds of the racetrack or that are administrative, policymaking or supervisory;

          [EE.] FF. "simulcast" means a transmission of a live audiovisual broadcast of a horse race being run at a horse racetrack other than the horse racetrack or other licensed facility at which the broadcast is being received for viewing pursuant to a simulcasting contract;

          [FF.] GG. "stakes race" means a horse race in which nominations or entry or starting fees contribute to the purse; an overnight race is not a stakes race;

          [GG.] HH. "steward" means an employee of the commission who supervises horse races and oversees a race meet while in progress, including holding hearings regarding licensees and enforcing the rules of the commission and the horse racetrack;

          [HH.] II. "takeout" means amounts authorized by statute to be deducted from the pari-mutuel wagers;

          [II.] JJ. "thoroughbred" means a racehorse that is registered with the jockey club;

          [JJ.] KK. "track" means the surfaced oval area on which horse races are conducted; and

          [KK.] LL. "vendor" means a person who provides goods or services to or in the racing grounds or restricted area of the licensed premises of a horse racetrack."

     SECTION 2. A new section of the Horse Racing Act is enacted to read:

     "[NEW MATERIAL] ADVANCE DEPOSIT WAGERING.--

          A. Advance deposit wagering is authorized if conducted in compliance with the Horse Racing Act and the federal Interstate Horseracing Act of 1978, 15 U.S.C. Section 3001, et seq.

          B. The commission shall establish by rule the oversight of advance deposit wagering in the state. The rules shall address, among other matters the commission deems necessary:

                (1) the conditions under which racetrack licensees shall exclusively be authorized to offer advance deposit wagering to residents of the state;

                (2) the parameters of the business relationship between racetracks and third-party advance deposit wagering providers;

                (3) the allowable methods used to create patrons' accounts;

                (4) provisions for the disposition of accounts when a racetrack or a provider ceases operation or is no longer licensed in the state;

                (5) financial responsibility requirements for licensees who want to conduct advance deposit wagering that call for a form of financial guarantee issued in favor of the state and that specifically authorize recovery by the commission for the payment of all fees and taxes required by this section, as well as payments due to advance deposit wagering account holders;

                (6) a plan of operation for each third-party advanced deposit wagering provider that shall include:

                      (a) a dispute resolution process;

                     (b) provisions for the security of account holders' information;

                     (c) a means of identifying account holders and verifying the age of account holders;

                     (d) the means of ensuring that an account has sufficient funds to cover a wager so that credit is not extended to the patron;

                     (e) the procedure for keeping accurate records of account wagers, payouts, deposits and withdrawals; and

                     (f) a plan for annual audits; and

                (7) a fee schedule and the distribution of proceeds thereof on the gross daily handle attributable to advance deposit wagering accounts. The fees imposed by this paragraph shall be accounted for and distributed in the same manner as the relevant fees and taxes are accounted for and distributed pursuant to the Horse Racing Act.

          C. A patron with an advance deposit wagering account may place a wager from any location telephonically or by using a device that connects to the internet and that is used in accordance with rules promulgated by the commission."

     SECTION 3. Section 60-1A-15 NMSA 1978 (being Laws 2007, Chapter 39, Section 15) is amended to read:

     "60-1A-15. PARI-MUTUEL WAGERING AUTHORIZED--GAMBLING STATUTES DO NOT APPLY.--

          A. A racetrack licensee may conduct pari-mutuel wagering on live horse races or on simulcasted horse races.

          B. Pari-mutuel wagering may be conducted only on the licensed premises [where a live horse race is conducted or where a simulcast horse race is televised or projected on the racing grounds of the licensed premises] of a racetrack licensee or through an advance deposit wagering account pursuant to the provisions of this section.

          C. The sale of pari-mutuel tickets or certificates to patrons present on the licensed premises of a racetrack licensee [of pari-mutuel tickets or certificates] or through an advance deposit wagering account is not gambling as defined in Section 30-19-2 or 30-19-3 NMSA 1978.

          D. Placing a wager while on the licensed premises of a racetrack licensee or through an advance deposit wager account is not placing a bet pursuant to Section 30-19-1 NMSA 1978.

          E. The licensed premises of a horse racetrack is not a gambling place as defined in Section 30-19-1 NMSA 1978."

     SECTION 4. Section 60-1A-16 NMSA 1978 (being Laws 2007, Chapter 39, Section 16) is amended to read:

     "60-1A-16. SIMULCASTING.--

          A. All simulcasting of horse races shall have prior approval of the commission, and the commission shall adopt rules concerning the simulcasting of horse races as provided in this section.

          B. A racetrack licensee shall not be allowed to simulcast horse races unless that racetrack licensee offers at least seventeen days per year of pari-mutuel wagering on live horse races run on the premises of the racetrack licensee.

          C. The commission may permit exporting of a horse race being run by a racetrack licensee to another racetrack licensee within New Mexico or exporting of a horse race from a racetrack licensee to another location holding a pari-mutuel or gaming license that allows simulcasting of a horse race from outside of the state or jurisdiction that licenses that out-of-state facility.

          D. The commission may permit importing by a racetrack licensee of horse races that are being run at racetracks outside of the state licensed by a host state.

          E. Pari-mutuel wagering on simulcast horse races shall be prohibited except on the licensed premises of a racetrack licensee during the licensee's race meet at the horse racetrack or when the racetrack licensee is importing a race meet from another New Mexico-licensed horse racetrack or through the use of an advance deposit wagering account.

          F. A New Mexico-licensed horse racetrack that is within a radius of eighty miles of any other New Mexico- licensed horse racetrack with a race meet in progress may only conduct pari-mutuel wagering on imported horse races if there is a written agreement between the two racetrack licensees allowing pari-mutuel wagering on imported horse races during the period of time that the live horse races are taking place."

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