WashingtonHB 13272025-2026 Regular SessionHouseWALLET

Concerning horse racing.

Sponsored By: Joe Schmick (Republican)

Became Law

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Bill Overview

Analyzed Economic Effects

10 provisions identified: 4 benefits, 1 costs, 5 mixed.

Daily taxes and fees for tracks

Race meet operators must pay $500 for each live race day, paid daily in advance. Tracks also must withhold and pay a daily parimutuel tax: 1.30% of gross receipts if last year’s in‑state parimutuel gross receipts were over $20,000,000, or 1.8% if $20,000,000 or less. Nonprofit meets of ten days or less are exempt from this tax withholding.

New limits for satellite betting

A class 1 track that has run one full live season may apply to run satellite wagering. To stay eligible, it must hold a live meet at least once every 12 months. Satellites are limited to one per county (two in counties over 1,000,000 people), and cannot be within 20 driving miles of any class 1 facility. No satellite may be used within 60 driving miles of another class 1 facility that is running a live meet. Satellite pools must be combined with the main track for odds and payoffs, follow the same rules, comply with local zoning, and post problem‑gambling signs with the state toll‑free number and form.

Simulcast racing rules and payouts

If a track sells a simulcast out of state, at least 50% of the fee it keeps after sending costs must go to horsemen’s purses. For in‑state track‑to‑track simulcasts, the receiving site pays 5.5% of gross parimutuel receipts to the sending track. After deducting purchase price and direct costs, at least 50% of an association’s share of receipts must go to horsemen’s purses. The commission may approve imported simulcasts and common pools, and nonprofit tracks may import one race of regional or national interest per live race day.

Track race-day and class rules

Race meet licenses must state how many races run each day. Tracks must run at least six live races per race day, and there is no upper cap. Each race day must include at least one race only for Washington‑bred horses. A class 1 track must run at least 40 live racing days every 12 months. Canceled days count if due to acts of God, certain labor issues, or other causes the commission finds beyond control.

What tracks keep from wagers

A licensee may keep up to 15% of daily gross parimutuel receipts each authorized wagering day. Nonprofit meets of ten days or less also keep 15%. Tracks may also keep an extra 6% of daily exotic‑wager receipts, but one‑sixth of that extra amount must go to the commission for Washington‑bred owner bonuses and breeder awards.

Funds for WA‑bred owners and purses

Tracks must withhold 1% of daily parimutuel gross receipts and pay it to the commission. After each meet, that money goes to licensed owners of Washington‑bred horses that finish first through fourth, by formula. Nonprofit meets of ten days or less with an average daily handle under $120,000 are exempt. Tracks also must forward 0.1% of daily parimutuel gross receipts for nonprofit race‑meet purses. The commission may pay up to $30,000 per nonprofit race day; if no nonprofit dates are approved and the fund is over $180,000 at year end, the extra goes to the commission’s operating account.

Handicapping contests now allowed

Class 1 tracks and licensed advance‑deposit wagering companies may run horse race handicapping contests. The racing commission sets approval rules for contests that use results of multiple races.

How the commission uses its money

The commission keeps the fees it collects to pay salaries and operating costs. A dedicated operating account holds these receipts and gifts. When funds allow, the commission may spend up to $500,000 each fiscal year to develop the equine industry, upgrade racing facilities, and support equine health research, with first consideration to nonprofit meets and health research. At the end of a two‑year budget period, leftover money not needed for operations goes out as grants to registered equestrian nonprofits or youth groups, or to the state fair fund. The commission may keep some working capital with approval from the Office of Financial Management.

Key racing terms clarified

The law updates definitions in Washington’s horse racing law. It clarifies who the commission is, who counts as a person, what a race meet is, and that parimutuel machines include track and satellite machines. These terms guide licensees, satellite sites, and the commission.

Racing commission ethics and leadership

The commission has three members, chosen by the governor and confirmed by the senate, serving six‑year terms. The law removes the old rule that one member must be a racehorse breeder. Commission employees may not also work for a racetrack where they serve as commission staff. Commissioners cannot bet on live races in Washington, but may bet on approved out‑of‑state simulcasts.

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Sponsors & Cosponsors

Sponsor

  • Joe Schmick

    Republican • House

Cosponsors

  • Chris Stearns

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 136 • No: 9

Senate vote 4/9/2025

3rd Reading & Final Passage

Yes: 45 • No: 4

House vote 3/8/2025

3rd Reading & Final Passage

Yes: 91 • No: 5 • Other: 2

Actions Timeline

  1. Effective date 7/27/2025.

    4/21/2025House
  2. Chapter 89, 2025 Laws.

    4/21/2025House
  3. Governor signed.

    4/21/2025legislature
  4. Delivered to Governor.

    4/15/2025legislature
  5. President signed.

    4/14/2025legislature
  6. Speaker signed.

    4/11/2025legislature
  7. Third reading, passed; yeas, 45; nays, 4; absent, 0; excused, 0.

    4/9/2025House
  8. Rules suspended. Placed on Third Reading.

    4/9/2025House
  9. Placed on second reading by Rules Committee.

    4/7/2025House
  10. On motion, referred to Rules Committee for second reading.

    3/27/2025House
  11. And refer to Ways & Means.

    3/26/2025House
  12. Minority; without recommendation.

    3/26/2025House
  13. BFT - Majority; do pass.

    3/26/2025House
  14. First reading, referred to Business, Financial Services & Trade.

    3/11/2025House
  15. Third reading, passed; yeas, 91; nays, 5; absent, 0; excused, 2.

    3/8/2025House
  16. Rules suspended. Placed on Third Reading.

    3/8/2025House
  17. Rules Committee relieved of further consideration. Placed on second reading.

    3/4/2025House
  18. APP - Executive action taken by committee.

    2/28/2025House
  19. Minority; without recommendation.

    2/28/2025House
  20. APP - Majority; do pass.

    2/28/2025House
  21. Referred to Rules 2 Review.

    2/28/2025House
  22. Referred to Appropriations.

    2/4/2025House
  23. SGOV - Executive action taken by committee.

    1/31/2025House
  24. SGOV - Majority; do pass.

    1/31/2025House
  25. First reading, referred to State Government & Tribal Relations.

    1/16/2025House

Bill Text

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