First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0250.01 Richard Sweetman x4333 HOUSE BILL 23-1041 House Committees Senate Committees Business Affairs & Labor A BILL FOR AN ACT C ONCERNING A PROHIBITION AG AINST WAGERING ON RACES OF101 GREYHOUNDS THAT ARE SIMULCAST FROM OUT -OF-STATE102 TRACKS AT WHICH THE RACES ARE CONDUCTED .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Current law prohibits racing of greyhounds in Colorado; however, it is legal to wager on greyhound races that are conducted at out-of-state race tracks and simulcast for viewing in off-track betting venues in Colorado. The bill makes it unlawful in Colorado to wager on any race of greyhounds that is conducted at, and simulcast from, a track that is HOUSE SPONSORSHIP Duran and Lynch, SENATE SPONSORSHIP Ginal and Simpson, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. outside of Colorado. The bill also makes conforming amendments. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 44-32-102, amend2 (15), (18), and (22); and repeal (5) as follows:3 44-32-102. Definitions - rules. As used in this article 32, unless4 the context otherwise requires:5 (5) "Cross simulcasting" means the receipt of a simulcast race of6 greyhounds at an out-of-state host track by a simulcast facility that is7 located on the premises of a track that is licensed to race horses.8 (15) "Out-of-state host track" means a track, located within a state9 other than Colorado, that is licensed or otherwise properly authorized10 under the laws of the state to conduct live races of horses or greyhounds11 and to broadcast the races as simulcast races and that broadcasts the12 simulcast races to an in-state simulcast facility.13 (18) "Pari-mutuel wagering" means a form of wagering on the14 outcome of horse and greyhound races in which those who wager15 purchase tickets of various denominations on one or more horses or16 greyhounds from one or more pools and all like wagers from each race17 are pooled and the winning ticket holders are paid prizes from the pool in18 amounts proportional to the total receipts in the pool minus deductions19 authorized by statute.20 (22) "Simulcast race" means a live, audio-visual broadcast THAT21 IS:22 (a) Transmitted simultaneously with either:23 (I) The performance of a live race of horses or greyhounds by an24 out-of-state host track; or25 HB23-1041-2- (II) The performance of a live race of horses by an in-state host1 track; AND2 (b) that is Received by a simulcast facility.3 SECTION 2. In Colorado Revised Statutes, 44-32-202, amend4 (4)(a)(I) as follows:5 44-32-202. Director - qualifications - powers and duties - rules.6 (4) If so directed by the commission, the director may, on behalf of this7 state:8 (a) Negotiate, enter into, and participate in one or more interstate9 compacts that enable party states to act jointly and cooperatively to create10 more uniform, effective, and efficient practices, programs, and rules11 relating to:12 (I) Live horse and greyhound racing; and13 SECTION 3. In Colorado Revised Statutes, amend 44-32-514 as14 follows:15 44-32-514. Payments of winnings - intercept. Before making a16 payment of cash winnings from pari-mutuel wagering on horse or17 greyhound racing for which the licensee is required to file form W-2G,18 or a substantially equivalent form, with the United States internal revenue19 service, the licensee shall comply with the requirements of article 33 of20 this title 44.21 SECTION 4. In Colorado Revised Statutes, 44-32-602, amend22 (1) and (5); and repeal (2) and (4)(a) as follows:23 44-32-602. Simulcast facilities and simulcast races - unlawful24 act - repeal. (1) It is unlawful for any person to accept or place wagers25 on any simulcast race within the state of Colorado except under the26 provisions of this article 32. It is lawful to conduct pari-mutuel wagering27 HB23-1041 -3- on simulcast races of horses or greyhounds that are received by an in-state1 simulcast facility authorized and operated pursuant to this article 32.2 (2) Cross simulcasting between an in-state host track or an3 out-of-state host track and an in-state simulcast facility, or between an4 in-state host track and an out-of-state simulcast facility, is permissible.5 (4) (a) (I) An in-state simulcast facility may, subject to the6 commission's approval, receive the broadcast signal of greyhounds from7 an out-of-state host track and conduct pari-mutuel wagering on the signal8 through an in-state simulcast facility located on the premises of a class B9 track that has conducted, or is scheduled to conduct during the next10 twelve months, a live race meet of horses of at least the duration required11 for a class B track.12 (II) The specified portions of the gross receipts from pari-mutuel13 wagers placed at an in-state simulcast facility on simulcast greyhound14 races being held on out-of-state host tracks from signals received through15 a class B track shall be distributed in accordance with section 44-32-70116 (2).17 (5) An in-state simulcast facility having a written simulcast racing18 agreement with an in-state or out-of-state host track pursuant to section19 44-32-503 (2) may receive simulcast races, as specified in subsections (2)20 to (4) SUBSECTION (4)(b) of this section, on any day, including a day not21 within the race meet of the in-state simulcast facility that is also a track22 and a day on which no live race is conducted within the race meet of the23 in-state simulcast facility that is also a track.24 SECTION 5. In Colorado Revised Statutes, amend 44-32-604 as25 follows:26 44-32-604. Greyhound racing prohibited. (1) No live27 HB23-1041 -4- greyhound racing involving the betting or wagering on the speed or1 ability of the greyhounds racing shall be conducted in Colorado. The2 commission shall not accept or approve an application or request for race3 dates for live greyhound racing in Colorado.4 (2) N OTWITHSTANDING THE PROVISIONS OF THIS ARTICLE 32 OR5 ANY OTHER GENERAL OR SPECIFIC LAW TO THE CONTRARY , IT IS UNLAWFUL6 IN COLORADO TO WAGER ON ANY RACE OF GREYHOUNDS THAT IS7 CONDUCTED AT, AND SIMULCAST FROM, A TRACK THAT IS OUTSIDE OF8 C OLORADO.9 SECTION 6. In Colorado Revised Statutes, 44-32-701, amend10 (2)(a), (2)(b), and (2)(c)(I); and repeal (1) as follows:11 44-32-701. License fees and Colorado-bred horse race12 requirement - rules - repeal. (1) Subject to section 44-32-702 (1), for 13 the privilege of conducting racing under a license issued under and of14 operating an in-state simulcast facility pursuant to this article 32, a15 licensee for the racing of greyhounds and an operator of an in-state16 simulcast facility that receives simulcast races of greyhounds shall pay to17 the department through the division four and one-half percent of the gross18 receipts derived from pari-mutuel wagering during any such race meet or19 placed on the simulcast races that are received through a live greyhound20 track.21 (2) (a) (I) For the privilege of conducting racing under a license22 issued under, and of operating an in-state simulcast facility pursuant to,23 this article 32, a licensee for the racing of horses and an operator of an24 in-state simulcast facility that receives simulcast races of horses or25 greyhounds pursuant to section 44-32-602 (4)(a)(I) 44-32-602 (4)(b) shall26 pay to the department through the division three-fourths of one percent27 HB23-1041 -5- of the gross receipts of the pari-mutuel wagering at any race meet or1 placed on the simulcast races; except that a licensee for the racing of2 horses at a class B track race meet shall pay to the department through the3 division three-fourths of one percent of the gross receipts of the4 pari-mutuel wagering at any such race meet.5 (I.5) (A) O F THE MONEY THAT IS PAID TO THE DEPARTMENT BY6 LICENSEES PURSUANT TO SUBSECTION (2)(a)(I) OF THIS SECTION, THE7 DEPARTMENT SHALL ANNUALLY DEPOSIT FIFTY THOUSAND DOLLARS INTO8 A TRUST ACCOUNT FOR DISTRIBUTION TO GREYHOUND WELFARE AND9 ADOPTION ORGANIZATIONS IN ACCORDANCE WITH RULES PROMULGATED10 BY THE COMMISSION . THE DEPARTMENT MAY NOT CONDITION11 DISTRIBUTIONS ON WHETHER A GREYHOUND WELFARE AND ADOPTION12 ORGANIZATION SUPPORTS OR OPPOSES GREYHOUND RACING .13 (B) T HIS SUBSECTION (2)(a)(I.5) IS REPEALED, EFFECTIVE AUGUST14 1, 2026.15 (II) (A) Except as otherwise provided in subsection (2)(a)(II)(B) 16 of this section, In addition to the amount paid to the department through17 the division in subsection (2)(a)(I) of this section, a licensee for the racing18 of horses and an operator of an in-state simulcast facility that receives19 simulcast races of horses or greyhounds pursuant to section 44-32-60220 (4)(a)(I) 44-32-602 (4)(b) shall pay to Colorado state university for21 allocation to its school of veterinary medicine one-fourth of one percent22 of the gross receipts of all pari-mutuel wagering, except on win, place, or23 show, at the horse race meet or placed on the simulcast races, to be used24 for racing-related equine research. To receive research funding under this25 subsection (2)(a)(II), an institution or individual must describe and report26 to the commission on all projects upon completion.27 HB23-1041 -6- (B) In the case of pari-mutuel wagers on greyhound simulcast1 signals received by a class B track, in lieu of the amounts otherwise2 payable to Colorado state university pursuant to subsection (2)(a)(II)(A)3 of this section, the licensee shall instead pay an equivalent amount into a4 trust account for distribution in accordance with rules of the commission5 under section 44-32-702 (1)(e)(I).6 (b) In addition to any money to be paid pursuant to subsection7 (2)(a) of this section, a licensee for the racing of horses and an operator8 of an in-state simulcast facility that receives simulcast races of horses or9 greyhounds pursuant to section 44-32-602 (4)(a)(I) 44-32-602 (4)(b) shall10 pay to a trust account one-half of one percent of the gross receipts of11 pari-mutuel wagering on win, place, and show and one and one-half12 percent of the gross receipts from all other pari-mutuel wagering at any13 such race meet or placed on the simulcast races for the horse breeders'14 and owners' awards and supplemental purse fund established in section15 44-32-705.16 (c) (I) The operator of a simulcast facility that receives simulcast17 races of horses or greyhounds pursuant to section 44-32-602 (4)(a)(I)18 44-32-602 (4)(b) shall retain five percent of the gross receipts of19 pari-mutuel wagering placed on the simulcast races at that facility, to be20 used to cover the particular expenses incurred in operating a simulcast21 facility.22 SECTION 7. In Colorado Revised Statutes, 44-32-702, amend23 (1)(b)(I), (1)(e)(I), (1)(h)(III), and (4) introductory portion; and repeal24 (1)(h)(II) and (1)(i) as follows:25 44-32-702. Unlawful to wager - exception - excess - taxes -26 special provisions for simulcast races - rules. (1) (b) (I) Except as27 HB23-1041 -7- otherwise provided in subsection (4) of this section, it is unlawful for a1 racing or simulcast facility licensee for the racing of greyhounds or horses2 to take more than the percentage of the gross receipts authorized by the3 commission pursuant to subsection (1)(b)(II) of this section of any4 pari-mutuel wagering on the races or simulcast races.5 (e) (I) Each operator of an in-state simulcast facility that receives6 simulcast races of horses from either an in-state host track or an7 out-of-state host track or of greyhounds from an out-of-state host track,8 shall pay to purse funds for the racing of horses and to the in-state or9 out-of-state tracks and simulcast facilities described in the simulcast10 agreement filed with the commission, the percentages of the gross11 pari-mutuel wagering on the simulcast races, after deduction of a signal12 fee required by an out-of-state host track or an in-state host track, paid13 during the current year or a previous year, and the applicable amounts14 specified in subsection (2)(b) of this section and in sections 44-32-701 (1)15 and (2) 44-32-701 (2) and 44-32-705 (2), as specified in the simulcast16 agreement. In the case of pari-mutuel wagers on greyhound simulcast17 signals received by a class B track from an out-of-state host track, the18 operator shall deposit the amounts payable pursuant to section 44-32-70119 (2)(a)(II)(B) into a trust account for distribution, in accordance with rules20 of the commission, to greyhound welfare and adoption organizations.21 (h) (II) The breakage at any greyhound race meet shall be retained22 by the licensee under whose license the greyhound race meet was held.23 (III) Except as otherwise provided in subsection (1)(h)(IV) or (4)24 of this section, the breakage on any simulcast race of horses or25 greyhounds received by an in-state simulcast facility shall be retained by26 the operator of the in-state simulcast facility.27 HB23-1041 -8- (i) An operator of an in-state simulcast facility shall retain the1 proceeds derived from all unclaimed pari-mutuel tickets for each2 simulcast race of greyhounds received for a race held at an out-of-state3 host track and, after a period of one year following the simulcast race, the4 proceeds revert and belong to the operator.5 (4) Pursuant to a valid simulcasting agreement, an operator of an6 in-state simulcast facility that receives simulcast signals of horse or7 greyhound races held in another state may:8 SECTION 8. In Colorado Revised Statutes, 44-32-704, amend9 (1) and (2)(a) as follows:10 44-32-704. Limitations on pari-mutuel wagering. (1) Wagers11 on pari-mutuel horse or greyhound races conducted in or out of this state12 may only be placed ONLY upon the premises of a racetrack or an in-state13 simulcast facility licensed by the commission or the out-of-state racetrack14 or simulcast facility as authorized by the commission. No wagering or15 betting on the results of any of the races licensed under this article 3216 shall be conducted outside a licensed or approved racetrack or simulcast17 facility.18 (2) (a) No person or agent or employee of any person shall place,19 receive, offer, or agree to place or receive a wager on a pari-mutuel horse20 or greyhound race, conducted in or broadcast in this state, by messenger,21 telephone, telegraph, facsimile machine, or other electronic device;22 except that this subsection (2) shall not apply to associations or simulcast23 facilities licensed by the commission. Nothing in this section shall be24 construed to prohibit gambling as provided in section 18-10-102 (2)(d).25 SECTION 9. In Colorado Revised Statutes, 26-13-118.7, amend26 as it will become effective July 1, 2023, (2) as follows:27 HB23-1041 -9- 26-13-118.7. Gambling winnings - interception - rules.1 (2) Upon receipt from the registry operator of a payment and2 accompanying information pursuant to section 44-33-105 (2)(b), the state3 department, through the casino, sports betting operator, internet sports4 betting operator, racetrack, or off-track betting facility, shall notify the5 obligated parent in writing that the state intends to offset the parent's child6 support debt, child support arrearages, or child support costs against the7 parent's winnings from limited gaming, from sports betting, or from8 pari-mutuel wagering on horse or greyhound racing. The notice must9 include information concerning the parent's right to object to the offset10 and to request an administrative review pursuant to the rules of the state11 board.12 SECTION 10. In Colorado Revised Statutes, 44-33-103, amend13 as it will become effective July 1, 2023, (3) as follows:14 44-33-103. Definitions. As used in this article 33, unless the15 context otherwise requires:16 (3) "Payment" means cash winnings from limited gaming, from17 sports betting, or from pari-mutuel wagering on horse or greyhound18 racing payable by a licensee for which the licensee is required to file form19 W-2G, or a substantially equivalent form, with the United States internal20 revenue service.21 SECTION 11. Act subject to petition - effective date -22 applicability. (1) This act takes effect at 12:01 a.m. on the day following23 the expiration of the ninety-day period after final adjournment of the24 general assembly; except that, if a referendum petition is filed pursuant25 to section 1 (3) of article V of the state constitution against this act or an26 item, section, or part of this act within such period, then the act, item,27 HB23-1041 -10- section, or part will not take effect unless approved by the people at the1 general election to be held in November 2024 and, in such case, will take2 effect on the date of the official declaration of the vote thereon by the3 governor.4 (2) This act applies to conduct occurring on or after the applicable5 effective date of this act.6 HB23-1041 -11-