Bill Text: NH SB112 | 2024 | Regular Session | Introduced
Bill Title: Relative to pari-mutuel pools and historic horse racing.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2024-05-30 - Sen. Lang Moved Nonconcur with the House Amendment, Motion Adopted, Voice Vote; 05/30/2024; Senate Journal 16 [SB112 Detail]
Download: New_Hampshire-2024-SB112-Introduced.html
SB 112-FN - AS INTRODUCED
2023 SESSION
23-0827
02/10
SENATE BILL 112-FN
AN ACT relative to pari-mutuel pools and historic horse racing.
SPONSORS: Sen. Ricciardi, Dist 9; Sen. Soucy, Dist 18; Sen. Bradley, Dist 3; Rep. O'Brien, Hills. 10; Rep. Doucette, Rock. 25
COMMITTEE: Ways and Means
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ANALYSIS
This bill changes the redistribution of pari-mutuel wagers, extends historic horse race and simulcast license geographic restrictions, removes some restrictions related to running historic horse racing or simulcast events, eliminates employee state residency restrictions, and eliminates annual financial statement requirements.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
23-0827
02/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Three
AN ACT relative to pari-mutuel pools and historic horse racing.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Horse and Dog Racing; Licenses and Supervision; License Restricted. Amend RSA 284:16-c to read as follows:
284:16-c License Restricted. Notwithstanding any other provision of law, the lottery commission shall not issue a license pursuant to RSA [284:16-a] 284 to any applicant if the place where the simulcast [dog] races, or historic horse races are to be presented is within a radius of 40 miles of Belmont, Berlin, Concord, Conway, Hampton, Keene, Lebanon, Manchester, Nashua, Rochester, Rollinsford, Salem, or Seabrook, New Hampshire, provided that the facilities at which simulcast [dog] racing was licensed by the lottery commission or licensees who were licensed under RSA 287-D as of May 1, 2020 are exempt from this restriction.
2 Pari-Mutuel Pools. Amend RSA 284:22 to read as follows:
284:22 Pari-Mutuel Pools. [During the calendar years of 1941-2029, a] A licensee under this chapter may sell pari-mutuel pools in accordance with this chapter and rules adopted by the lottery commission. Pari-mutuel pools shall be sold within the enclosure of the racetrack where a licensed race or race meet is held or as provided in RSA 284:22-a, and not elsewhere.
I. The commission on all win, place, and show pari-mutuel pools at tracks or race meets at which running horse races are conducted for public exhibition shall be uniform throughout the state at the rate of 19 percent of each dollar wagered in such pools, and the commission on all other pari-mutuel pools at such tracks or race meets shall be at the rate of not less than 26 percent of each dollar wagered in such pools and not more than 27 percent of each dollar wagered in such pools as determined from time to time by the licensee which conducts live running horse races after written notice to the lottery commission and, in the absence of written notice, at the rate of 26 percent of each dollar wagered in such pools. Except as provided in RSA 284:22-a, the amount of the purse at such tracks or race meets at which running horse races are conducted shall be 8 1/4 percent of each dollar wagered in all pari-mutuel pools, said 8 1/4 percent to be paid by the licensee out of the lottery commission on such pools. [In addition to the above commission, 1/2] One hundred percent of the odd cents of all redistribution of each wager [based on each dollar wagered] exceeding a sum equal to the next lowest multiple of 10, known as "breakage," [shall be retained by the licensee, 1/4 paid to the state treasury for the use of the state in accordance with the provisions of RSA 284:2 and 1/4] shall be paid to the lottery commission and used as payment for problem gaming. [The lottery commission shall distribute such breakage to the licensee which paid such breakage to supplement purses of live races conducted by the licensee at the location from which such breakage was paid.] Each licensee shall pay the tax provided for in RSA 284:23.
II. The commission on all win, place, and show pari-mutuel pools at tracks or race meets at which harness horse races are conducted for public exhibition, including those conducted by agricultural fairs, shall be uniform throughout the state at the rate of 19 percent of each dollar wagered in such pools, and the commission on all other pari-mutuel pools at such tracks or race meets shall be at the rate of not less than 25 percent of each dollar wagered in such pools and not more than 26 percent of each dollar wagered in such pools as determined from time to time by the licensee which conducts live harness horse racing after written notice to the lottery commission and, in the absence of such written notice, at the rate of 25 percent of each dollar wagered in such pools. [In addition to the above commission, 1/2] One hundred percent of the odd cents of all redistribution [based on each dollar wagered] of each wager exceeding a sum equal to the next lowest multiple of 10, known as "breakage," [shall be retained by the licensee, 1/4 paid to the state treasury for the use of the state in accordance with the provisions of RSA 284:2 and 1/4] shall be paid to the lottery commission and used as payment for problem gambling services. [The lottery commission shall distribute such breakage to the licensee which paid such breakage.] Each licensee shall pay the tax provided for in RSA 284:23.
III. For the purposes set forth in this section, an "agricultural fair" means an association which provides for and pays premiums of $5,000 or more, annually, as is determined by the commissioner of agriculture, markets, and food, in accordance with RSA 284:25.
IV. Subject to the provisions of RSA 284:22-a, V, the commission on all win, place, and show pari-mutuel pools at tracks or race meets at which simulcast dog races are conducted for public exhibition shall be uniform throughout the state at the rate of 19 percent of each dollar wagered in such pools; and the commission on all other pari-mutuel pools at such tracks or race meets shall be at the rate of 27 percent of each dollar wagered in such pools. [In addition to the above commission, 1/2] One hundred percent of the odd cents of all redistribution [based on each dollar wagered] of each wager exceeding a sum equal to the next lowest multiple of 10, known as "breakage," [shall be retained by the licensee, 1/4 paid to the state treasury for the use of the state and 1/4] shall be paid to the lottery commission and used as payment for problem gambling services. Each licensee shall pay the tax provided for in RSA 284:23.
3 Pari-Mutuel Pools on Simulcast Racing. Amend RSA 284:22-a to read as follows:
284:22-a Pari-Mutuel Pools on Simulcast Racing.
I. In this section:
(a) "State" means each state of the United States, the District of Columbia, the Commonwealth of Puerto Rico and any territory or possession of the United States.
(b) "Simulcast" means a licensee's receipt of the transmission of races conducted at a racetrack other than the licensee's racetrack and which races are exhibited simultaneously at the licensee's racetrack by television or other means of electronic reproduction with the conduct of such races at the point of origin and on which races the licensee sells pari-mutuel pools.
(c) "Licensee" means
(1) Any individual, association, partnership, joint venture, corporation, or other organization or other entity which holds a license under RSA 284 to conduct a live running or harness horse race meet, or if the election is made pursuant to RSA 284:22-a, II(c), licensee means the individual, association, partnership, joint venture, corporation, or other organization or entity which applies for a license under RSA 284 to conduct simulcasting at a facility at which live running or harness horse racing was conducted in 2008, or at which historic horse racing is authorized; or
(2) The individual, association, partnership, joint venture, corporation, or other organization or other entity which applies for a license pursuant to RSA 284:15-a to conduct simulcasting at a facility at which live dog racing was conducted in 2008 and at which facility a license was issued to an applicant for 2010 to simulcast running and harness horse racing and dog racing.
II.(a) [During the calendar years 1941-2029, a] A licensee may sell pari-mutuel pools on races held at racetracks other than at the facility of the licensee, if any, provided:
(1) Such sales are within the enclosure of the facility at which the licensee holds a license; and
(2) Wagers are made on races which are exhibited by television or other electronic reproduction at licensee's facility simultaneously with the conduct of each such race at its point of origin with the agreement or approval of the racetrack which provides the transmission of the races to be simulcast and the racetrack which conducts the races to be simulcast[;].
[(3) Unless the licensee makes the election pursuant to RSA 284:22-a, II(c), the licensee which holds a license to conduct live harness or running horse racing has scheduled at least 50 calendar days of live harness and/or running horse racing in the calendar year such licensee simulcasts; and
(4) The licensee obtains the consents and approvals set forth in RSA 284:22-a, III.
(b) [Repealed.]
(c) Notwithstanding subparagraph II(a), an individual, association, partnership, joint venture, corporation, or other organization or entity may be issued a license to conduct simulcasting without conducting live racing provided such person or entity makes such election with the approval of the commission and such person or entity either held a license on January 1, 2009 under this chapter to conduct a race meet or seeks to conduct simulcasting without conducting live racing at a facility at which live racing was authorized to be conducted in 2009.
(d) Notwithstanding subparagraph II(a), an individual, association, partnership, joint venture, corporation, or other organization or entity may be issued a license to conduct simulcasting without conducting live horse racing at a location in Cheshire county, provided such person or entity applies for, and is issued, a license to conduct live horse racing at such location in Cheshire county, complies with other provisions of this chapter with regard to application and issuance of such license, makes such election with the approval of the commission, and such person or entity has submitted an economic development plan to the commission to conduct a live horse racing meet in Cheshire county within 48 months of the granting of a license. If no live horse racing is conducted within the 48-month period the license to receive simulcast wagers shall be revoked. The commission shall adopt regulations regarding the criteria of the proposed economic development plan prior to issuance of any approval.
III. A licensee may sell pari-mutuel pools on races held at other appropriately licensed racetracks, whether such racetracks are in the state of New Hampshire or outside the state of New Hampshire with the agreement or approval of the racetrack which provides the transmission of the races to be simulcast and the racetrack which conducts the races to be simulcast. A licensee may sell pari-mutuel pools under RSA 284:22-a on the same types of races that it conducts live at its racetrack with the approval of the commission. A licensee may sell pari-mutuel pools under RSA 284:22-a on types of races different from the types of races conducted live at the licensee's racetrack, or if such licensee holds a license pursuant to RSA 284:15-a and RSA 284:16-a, or the licensee makes the election pursuant to RSA 284:22-a, II(c) with respect to live running or harness horse racing, provided such licensee obtains the approval from the commission and the municipality in which the licensee operates its facility had approved the issuance of a license to conduct harness or running horse racing and/or dog racing, whether live or simulcast, in such municipality either prior to enactment of RSA 284:22-a or subsequent to enactment of RSA 284:22-a.
IV. A licensee which has scheduled less than 50 calendar days of live racing in a calendar year may simulcast on a day on which live racing is scheduled at the licensee's race track, without conducting live racing, provided that the live racing program is canceled due to weather or other conditions which produce unsafe conditions at the racetrack of the licensee. The determination to cancel a live program based upon weather or the condition of the racetrack shall be made by the licensee, and notice shall be provided to the commission. Notwithstanding the foregoing, a licensee which has scheduled less than 50 calendar days of live racing shall be limited to no more than 10 such cancellations in a calendar year.
V.] III.(a) A licensee may sell pari-mutuel pools for simulcast races for races held at racetracks within or outside the state of New Hampshire in accordance with RSA 284:22-a, II, within the enclosure of said licensee's racetrack or a licensee, with the written agreement with the licensee which conducts or transmits the race which is to be simulcast, may sell a common pari-mutuel pool in conjunction with the licensee which conducts or transmits the race which is to be simulcast. In the event of common pools, the licensee which conducts or transmits the race shall pay the tax required under RSA 284:23 for the portion of the common pool actually contributed at said licensee's racetrack and the licensee which simulcasts shall pay the tax due under RSA 284:23 for the portion of the common pool actually contributed at said licensee's racetrack.
(b) A licensee may sell pari-mutuel pools for simulcast races for races held at racetracks outside the state of New Hampshire in accordance with RSA 284:22-a, II, within the enclosure of said licensee's racetrack or said licensee, with the written agreement with the entity which conducts the race which is to be simulcast, may sell a common pari-mutuel pool in conjunction with the entity which conducts the race which is to be simulcast. In the event of such common pools, the commission shall be in the amount established by the law of the state in which the race to be simulcast is actually conducted, provided, however, the licensee shall pay the tax as provided under RSA 284:23.
[VI.] IV. Racing officials, as defined in the rules adopted by the commission, any employee or owner of the entity which provides the totalizator system to the licensee, and any person responsible for the operation of the electronic reproduction equipment which receives the simulcast shall be prohibited from participating in wagering, directly or indirectly, on simulcast races shown at the licensee's racetrack.
[VII.] V. The provisions of RSA 284:15-c, RSA 284:16-a, RSA 284:16-c, RSA 284:17, RSA 284:17-a, and RSA 284:17-c shall not apply to simulcast and pari-mutuel pools under RSA 284:22-a, except as specifically provided in RSA 284:22-a.
[VIII.] VI. RSA 284:22, I, II, III, and IV shall apply according to the type of race on which the simulcast wagers are made, excepting, however, interstate common pools as provided in RSA 284:22-a, V(b) and that the provisions made for purses made in RSA 284:22, I shall not apply to simulcast races. The commission on simulcast race pools shall be available to the simulcasting licensee to satisfy obligations to the racing association originating or transmitting such simulcast races or to the horsemen's group of such association.
4 Pari-Mutuel Pools on Historic Horse Races. Amend RSA 284:22-b, V to read as follows:
V. The licensee commission on all historic horse race pari-mutuel pools shall be at a rate of not greater than 12 percent. In addition to the above commission, 100 percent of the odd cents of all redistribution [based on each dollar wagered] of each wager exceeding a sum equal to the next lowest multiple of 10, known as breakage, shall be paid to the lottery commission and used as payment for problem gaming services.
5 Rights of Licensee. Amend RSA 284:39, I to read as follows:
I. Any licensee under this chapter may refuse admission to, or eject from, the grounds or the enclosure of the racetrack or facility where a licensed live race or race meet or is being held or where licensed simulcasting or historic horse racing is held, any person or persons whose presence or conduct, in the sole judgment of the licensee, is inconsistent with the orderly and proper conduct of the historic horse racing, live or simulcast race meet, or is detrimental to the sport of racing, whether or not such presence or offensive conduct is associated with gambling.
6 Repeal. The following are repealed:
I. RSA 284:3, relatives to employee residency.
II. RSA 284:32-a, relative to annual financial statements.
7 Effective Date. This act shall take effect July 1, 2023.
23-0827
Revised 1/23/23
SB 112-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to pari-mutuel pools and historic horse racing.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2023 | FY 2024 | FY 2025 | FY 2026 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | ($70,000) GF Decrease
$212,912 Lottery Increase | ($70,000) GF Decrease
$355,727 Lottery Increase | ($70,000) GF Decrease
$373,008 Lottery Increase |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ X ] Other - Lottery Fund | |||
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METHODOLOGY:
The Lottery Commission states this bill:
- Expands simulcast to gaming facilities “at which historic horse racing is authorized” (it is assumed this refers to game rooms that have been issued a historical horse racing (HHR) license and does not include those rooms eligible but not currently licensed to offer HHR.
- Prohibits new simulcast or HHR facilities from being located within 40-miles of 13 cities and towns (simulcast facilities and game operator employers (GOE) licensed as of May 1, 2020, are exempt) In effect, this will limit the locations eligible to offer simulcast and/or HHR to the existing 15 games of chance facilities (those game rooms holding a GOE licensed as of May 1, 2020).
- Requires all breakage to be used by the agency “as payment for problem gaming”. Currently, breakage from simulcast wagers is split between the racetrack, the State Treasury, and the Lottery Commission.
- Removes the residency requirement for employees of the gaming facility (repeal of RSA 284:3).
- Removes the requirement that the facility submit an annual financial statement (repeal of RSA 284:32-a). This requirement applies to individuals and entities “conducting a race or race meet” and is not specific to simulcast racing.
The Lottery Commission makes the following assumptions relative to this bill:
- Only one facility (The Brook, a former dog track in Seabrook) currently offers simulcast wagering. The only other facility currently eligible for a simulcast license is Lakes Region Casino, a former dog track located in Belmont.
- No more than six (6) eligible game rooms are expected to add simulcast to their offerings.
- Market saturation is expected to limit the increase in state revenue.
- This bill would take effect on or after July 1, 2023, and as a result, there would be no impact on state revenue for FY 2023, given that it will take time for facilities to become operational (the anticipated revenue for FY 2024 is expected to be about 25% of current revenue and 50% of current revenue in FY 2025 and each year thereafter.
- The State receives simulcast revenue through taxes, breakage, and unclaimed tickets.
- The tax for simulcast horse and dog races is equal to 1.25% and 1.5% of total contributions respectively. This money is paid to the State Treasury (in calendar year 2022, the state received $431,068 in revenue from simulcast racing).
- Under current law, breakage from simulcast and live racing wagers are split with 50% being retained by the facility, 25% going to the State Treasury and 25% going to the Lottery Commission. Total breakage in calendar year 2022 was $140,193, of which the Lottery Commission and the State Treasury each received approximately $35,048.
- Unclaimed ticket money is retained by the State Treasury on January 31st of the calendar year (24 months after the year of the unclaimed voucher). Therefore, revenue from unclaimed tickets purchased July 1 through December 31 of 2023 will not be retained by the State Treasury until January 31, 2026 (FY 2026). In FY 2018, the State received $172,813 in unclaimed ticket revenue. Revenue for FY 2026 is expected to be nominal (10% of FY 2022). This is due to the time-period representing only the first six months of operation (July 1 thru December 31, 2023), and the expected lag time between the effective date of the law and facilities becoming operational. Revenue for subsequent fiscal years is expected to be about 50% higher than current figures.
Considering all the information and assumptions stated above, the Lottery Commission estimates this bill will increase Lottery revenue by $212,912 in FY 2024, $355,727 in FY 2025, and $373,008 in FY 2026, and decrease general fund revenue (Treasury Department) by $70,000 in each fiscal year, beginning in FY 2024. Lottery revenue is credited to the lottery fund, with net revenues after expenditures being credited to the state education trust fund.
AGENCIES CONTACTED:
Lottery Commission
