§3004 Regulation of Interstate Off-track Wagering

Summary

Off-track betting systems may accept wagers on races in other states only if they get permission from three parties: the host racing association, the host racing commission, and the off-track racing commission. Before the host racing association can give permission, it must have a written agreement with the horsemen’s group that lets it give that permission and sets the terms, except for a not-for-profit host association in a state where off-track betting revenue shares are fixed by law. If a host already had a contract with the horsemen’s group when this law began and that contract did not mention interstate wagers, the old contract’s terms apply to interstate wagers and no new agreement is needed unless the parties agree. If written consents for interstate wagers already exist, when the current contract ends the horsemen’s written agreement will then be required and can only be changed through the normal contract process. An off-track betting office also must get approval from every currently operating track within 60 miles, or if none are within 60 miles, from the closest operating track in a neighboring State. A State that runs at least 250 days of on-track parimutuel racing a year may accept interstate wagers without those local approvals for up to 60 racing days and 25 special events each year, if no same-type racing is happening at the same time within 60 miles or the program cannot be completed; dark days during a regular meeting are excluded. When using that exception, the off-track office must make the same offer to any nearby track, and it still must get the approvals required above. Finally, the takeout (house cut) on an interstate wager cannot be higher than the takeout for the same kind of wager run inside the off-track State unless that State’s law allows a higher takeout.