25.0647.02003
Title.03000
Adopted by the Judiciary Committee
Sixty-ninth
February 10, 2025
Legislative Assembly
of North Dakota
Introduced by
Senators Myrdal, Sorvaag, Thomas
A BILL for an Act to create and enact twothree new sections to chapter 53-06.2 of the North
Dakota Century Code, relating to historic horse race wagering and, pari-mutuel horse racing,
and the establishment of the racing commission fund; and to amend and reenact sections
53-06.2-01, 53-06.2-04, 53-06.2-05, 53-06.2-06, 53-06.2-07, 53-06.2-08, 53-06.2-10,
53-06.2-10.1, and 53-06.2-11 of the North Dakota Century Code, relating to the authorization of
historic horse race wagering and on August 1, 2027, the elimination of simulcast dog racing
under the certificate system; and to provide an effective date.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 53-06.2-01 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-01. Definitions.
As used in this chapter:
1."Association" means a person licensed by the racing commission conducting
pari - mutuel wagering.
2."Breeders' fund" means a fund, administered by the commission, established to
financially reward breeders or owners of North Dakota-bred horses to be paid in
accordance with rules as approved by the commission.
2.3."Certificate system" means the system of betting described in section 53-06.2-10.
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SENATE BILL NO. 2347
PROPOSED AMENDMENTS TO
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3.4."Charitable organization" means a nonprofit organization operated for the relief of
poverty, distress, or other conditions of public concern in this state and has been so
engaged in this state for at least two years.
4.5."Civic and service club" means a branch, lodge, or chapter of a nonprofit national or
state organization that is authorized by its written constitution, charter, articles of
incorporation, or bylaws to engage in a civic or service purpose in this state and has
so existed in this state for at least two years. The term includes a similar local
nonprofit organization, not affiliated with a state or national organization, which is so
recognized by a resolution adopted by the governing body of the local jurisdiction in
which the organization conducts its principal activities, and which has existed in this
state for at least two years.
5.6."Commission" means the North Dakota racing commission.
6.7."Equine racing facility" means a horse racing facility that conducts at least eight live
horse races in a calendar year and which has a minimum racing infrastructure
consisting of:
a.A six-furlong [1207.01 meters] five-furlong [1005.84 meters] dirt track for flat
racing;
b.Capacity for no fewer than five hundred individuals; and
c.Barns with no fewer than fifty permanent stalls.
8."Executive director" means the executive director of the commission.
7.9."Fraternal organization" means a nonprofit organization in this state, which is a
branch, lodge, or chapter of a national or state organization and exists for the common
business, brotherhood, or other interests of its members, and has so existed in this
state for two years. The term does not include a college or high school fraternity.
10."Historic horse race" means any horse race that was previously conducted by a
licensed pari-mutuel facility, concluded with official results, and concluded without
scratches, disqualifications, and dead-heat finishes.
8.11."Local jurisdiction" means, with respect to a site inside the city limits of a city, that city,
and with respect to a site not inside the city limits of a city, the county in which the site
is located.
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9.12."Other public-spirited organization" means a nonprofit organization recognized by the
governing body of the appropriate local jurisdiction by resolution as public-spirited and
eligible under this chapter.
10.13."Pari-mutuel wagering" means a method of wagering approved by the commission in
which one or more patrons wager on a horse race, whether live, simulcast, or historic
horse race.
14."Purse fund" means a fund, administered by the commission, established to
supplement and improve purses offered at racetracks within the state.
11.15."Racing" means live or simulcast horse racing under the certificate system or
simulcast dog racing under the certificate system.
12.16."Racing promotion fund" means a fund administered by the commission established to
assist in improving and upgrading racetracks in the state, promoting horse racing in
the state, and developing new racetracks in the state as necessary and approved by
the commission.
13.17."Religious organization" means a nonprofit organization, church, body of
communicants, or group gathered in common membership for mutual support and
edification in piety, worship, and religious observances, and which has been so
gathered or united in this state for at least two years.
14.18."Veterans' organization" means a congressionally chartered organization in this state,
or a branch, lodge, or chapter of a nonprofit national or state organization in this state,
the membership of which consists of individuals who were members of the armed
services or forces of the United States, and which has so been in existence in this
state for at least two years.
SECTION 2. AMENDMENT. Section 53-06.2-01 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-01. Definitions.
As used in this chapter:
1."Association" means a person licensed by the racing commission conducting
pari-mutuel wagering.
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2."Breeders' fund" means a fund, administered by the commission, established to
financially reward breeders or owners of North Dakota-bred horses to be paid in
accordance with rules as approved by the commission.
3."Certificate system" means the system of betting described in section 53-06.2-10.
4."Charitable organization" means a nonprofit organization operated for the relief of
poverty, distress, or other conditions of public concern in this state and has been so
engaged in this state for at least two years.
5."Civic and service club" means a branch, lodge, or chapter of a nonprofit national or
state organization that is authorized by its written constitution, charter, articles of
incorporation, or bylaws to engage in a civic or service purpose in this state and has
so existed in this state for at least two years. The term includes a similar local
nonprofit organization, not affiliated with a state or national organization, which is so
recognized by a resolution adopted by the governing body of the local jurisdiction in
which the organization conducts its principal activities, and which has existed in this
state for at least two years.
6."Commission" means the North Dakota racing commission.
7."Equine racing facility" means a horse racing facility that conducts at least eight live
horse races in a calendar year and which has a minimum racing infrastructure
consisting of:
a.A five-furlong [1005.84 meters] dirt track for flat racing;
b.Capacity for no fewer than five hundred individuals; and
c.Barns with no fewer than fifty permanent stalls.
8."Executive director" means the executive director of the commission.
9."Fraternal organization" means a nonprofit organization in this state, which is a
branch, lodge, or chapter of a national or state organization and exists for the common
business, brotherhood, or other interests of its members, and has so existed in this
state for two years. The term does not include a college or high school fraternity.
10."Historic horse race" means any horse race that was previously conducted by a
licensed pari-mutuel facility, concluded with official results, and concluded without
scratches, disqualifications, and dead-heat finishes.
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11."Local jurisdiction" means, with respect to a site inside the city limits of a city, that city,
and with respect to a site not inside the city limits of a city, the county in which the site
is located.
12."Other public-spirited organization" means a nonprofit organization recognized by the
governing body of the appropriate local jurisdiction by resolution as public-spirited and
eligible under this chapter.
13."Pari-mutuel wagering" means a method of wagering approved by the commission in
which one or more patrons wager on a horse race, whether live, simulcast, or historic
horse race.
14."Purse fund" means a fund, administered by the commission, established to
supplement and improve purses offered at racetracks within the state.
15."Racing" means live or simulcast horse racing under the certificate system or
simulcast dog racing under the certificate system.
16."Racing promotion fund" means a fund administered by the commission established to
assist in improving and upgrading racetracks in the state, promoting horse racing in
the state, and developing new racetracks in the state as necessary and approved by
the commission.
17."Religious organization" means a nonprofit organization, church, body of
communicants, or group gathered in common membership for mutual support and
edification in piety, worship, and religious observances, and which has been so
gathered or united in this state for at least two years.
18."Veterans' organization" means a congressionally chartered organization in this state,
or a branch, lodge, or chapter of a nonprofit national or state organization in this state,
the membership of which consists of individuals who were members of the armed
services or forces of the United States, and which has so been in existence in this
state for at least two years.
SECTION 3. AMENDMENT. Section 53-06.2-04 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-04. Duties of commission.
The commission shall:
1.Provide for racing and wagering under the certificate system.
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2.Set racing dates.
3.Adopt rules for effectively preventing the use of any substance, compound items, or
combinations of any medicine, narcotic, stimulant, depressant, or anesthetic which
could alter the normal performance of a racehorse, unless specifically authorized by
the commission.
4.Supervise and check the making of pari-mutuel pools, pari-mutuel machines, and
equipment at all races held for wagering under the certificate system.
5.Adopt rules governing, restricting, or regulating bids on licensees' concessions and
leases on equipment and governing historic horse racing.
6.Consider all proposed extensions, additions, or improvements to the buildings,
stables, or tracks on property owned or leased by a licensee.
7.Exclude from racetracks or simulcast pari-mutuel wagering facilities any
personindividual who violates any rule of the commission or any law.
8.Determine the cost of inspections performed under subsection 3 of section 53-06.2-05
and require the licensee to pay that cost.
9.Report biennially to the legislative council regarding the operation of the commission.
10.Provide notice to the North Dakota horsemen's council of meetings held by the
commission and permit the North Dakota horsemen's council to participate in the
meetings through placement of items on the agenda.
11.Complete, distribute, and post on the commission's website the minutes of each
commission meeting within thirty days of that meeting or before the next meeting of
the commission, whichever occurs first.
SECTION 4. AMENDMENT. Section 53-06.2-05 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-05. Powers of commission.
The commission may:
1.Compel the production of all documents showing the receipts and disbursements of
any licensee and determine the manner in which such financial records are to be kept.
2.Investigate the operations of any licensee and enter any vehicle or place of business,
residence, storage, or racing of any licensee on the grounds of a licensed association
to determine whether there has been compliance with the provisions of this chapter
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and rules adopted under this chapter, and to discover and seize any evidence of
noncompliance.
3.Request appropriate state officials to perform inspections necessary for the health and
safety of spectators, employees, participants, and horses that are lawfully on a
racetrack.
4.License all participants in the racing and, simulcast, advance deposit wagering, and
historic horse race pari-mutuel wagering industry and require and obtain information
the commission deems necessary from license applicants. Licensure of service
providers, totalizator companies, site operators, and organizationsentities applying to
conduct or conducting pari-mutuel wagering must be approved by the attorney
general. The attorney general may not grant a license denied by the commission. The
commission may obtain a statewide and nationwide criminal history record check from
the bureau of criminal investigation for the purpose of determining suitability or fitness
for a license. The nationwide check must be conducted in the manner provided in
section 12-60-24. All costs associated with obtaining a background check are the
responsibility of the applicant for a license.
5.Receive moneys from the North Dakota horse racing foundation for deposit in the
purse fund, breeders' fund, or racing promotion fund in accordance with subsection 6
of section 53-06.2-11.
6.Adopt additional rules for the administration, implementation, and regulation of
activities conducted pursuant to this chapter. The commission shall deposit any fees
collected under authority of this subsection in the racing commission operating fund.
Subject to legislative appropriation, the commission may spend the fees for operating
costs of the commission.
SECTION 5. AMENDMENT. Section 53-06.2-06 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-06. Organizations eligible to conduct racing and simulcastassist in
conducting pari-mutuel wagering.
Civic and service clubs; charitable, fraternal, religious, and veterans' organizations; and
other public-spirited
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1.Public-spirited organizations the primary purpose of which is for equine education,
community recreation, and economic development may be licensed to conduct racing
and simulcast assist in conducting pari-mutuel wagering as authorized by this chapter.
2.The following types of organizations may be licensed to conduct simulcast pari - mutuel
wagering under this chapter:
a.Civic and service clubs;
b.Charitable, fraternal, religious, and veterans' organizations; and
c.Other public-spirited organizations.
SECTION 6. AMENDMENT. Section 53-06.2-07 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-07. Issuance of racing licenses - Applications.
1.On compliance by an applicant with this chapter and the approval of the attorney
general, the commission may issue a license to conduct races. The attorney general
may not grant a license denied by the commission.
2.An application for a license to conduct a racing meet must be signed under oath and
filed with the commission. The application must contain at least the following:
a.The name and post-office address of the applicant.
b.The location of the racetrack and whether it is owned or leased. If the racetrack is
leased, a copy of the lease must be included.
c.A statement of the applicant's previous history and association sufficient to
establish that the applicant is an eligible organization.
d.The time, place, and number of days the racing meet is proposed to be
conducted.
e.The type of racing to be conducted.
f.Other information the commission requires.
3.At least thirty days before the commission issues or renews a license to conduct
races, the applicant shall deliver a complete copy of the application to the local
jurisdiction governing body. The application to the commission must include a
certificate verified by a representative of the applicant, indicating delivery of the
application copy to the governing body. If the governing body of the local jurisdiction
adopts a resolution disapproving the application for license or renewal and so informs
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the executive director within thirty days of receiving a copy of the application, the
license to conduct races may not be issued or renewed.
4. A licensee, including a totalizator provider or service provider, may not offer bets or
wagers on dog races.
SECTION 7. AMENDMENT. Section 53-06.2-07 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-07. Issuance of racing licenses - Applications.
1.On compliance by an applicant with this chapter and the approval of the attorney
general, the commission may issue a license to conduct races. The attorney general
may not grant a license denied by the commission.
2.An application for a license to conduct a racing meet must be signed under oath and
filed with the commission. The application must contain at least the following:
a.The name and post-office address of the applicant.
b.The location of the racetrack and whether it is owned or leased. If the racetrack is
leased, a copy of the lease must be included.
c.A statement of the applicant's previous history and association sufficient to
establish that the applicant is an eligible organization.
d.The time, place, and number of days the racing meet is proposed to be
conducted.
e.Other information the commission requires.
3.At least thirty days before the commission issues or renews a license to conduct
races, the applicant shall deliver a complete copy of the application to the local
jurisdiction governing body. The application to the commission must include a
certificate verified by a representative of the applicant, indicating delivery of the
application copy to the governing body. If the governing body of the local jurisdiction
adopts a resolution disapproving the application for license or renewal and so informs
the executive director within thirty days of receiving a copy of the application, the
license to conduct races may not be issued or renewed.
4. A licensee, including a totalizator provider or service provider, may not offer bets or
wagers on dog races.
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SECTION 8. AMENDMENT. Section 53-06.2-08 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-08. License authorization and fees.
1.Each license issued under the certificate system must describe the place, track, or
racecourse at which the licensee may hold races. Every license must specify the
number of days the licensed races may continue, the hours during which racing may
be conducted, and the number of races that may be held each day. Races authorized
under this chapter may be held during the hours approved by the commission and
within the hours permitted by state law.
2. Wagering on historic horse races may be conducted on :
a. At only one equine racing facility in the state.
b. On any day, regardless of whether live racing or simulcasting is taking place.
2.3.The commission may charge a license fee for racing commensurate with the size and
attendance of the race meet.
3.4.Each applicant for a license under this chapter shall give bond or a letter of credit
payable to this state with good security as approved by the commission. The bond or
letter of credit must be in the amount the commission determines will adequately
protect the amount normally due and owing to this state in a regular payment period
or, in the case of new or altered conditions, based on the projected revenues.
4.5.The commission may grant licenses to horse owners, jockeys, riders, agents, trainers,
grooms, stable foremen, exercise workers, veterinarians, valets, concessionaires,
service providers, employees of racing associations, and such other persons as
determined by the commission. Licensure of service providers, totalizator companies,
site operators, and organizations applying to conduct or conducting pari-mutuel
wagering must be approved by the attorney general. The attorney general may not
grant a license denied by the commission. License fees are as established by the
commission.
5.6.The commission may establish the period of timeterm for which licenses issued under
this chapter are valid.
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6.7.The commission shall deposit all fees collected under this section in the racing
commission operating fund. Subject to legislative appropriation, the commission may
spend the fees for operating costs of the commission.
SECTION 9. AMENDMENT. Section 53-06.2-10 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-10. Certificate system - Rules.
The certificate system allows a licensee to receive money from any person present aton a
live, simulcast, or historic horse or dog race, simulcast horse race, or simulcast dog race who
desires to bet on any entry in that race. A person betting on an entry to win acquires an interest
in the total money bet on all entries in the race, in proportion to the amount of money bet by that
person, under rules adopted by the commission. The licensee shall receive the bets and for
each bet on a live or simulcast horse race shall issue a certificate to the bettor on which is at
least shown the number of the race, the amount bet, and the number or name of the entry
selected by the bettor. A certificate may not be issued for a wager on a historic horse race . The
commission may adopt rules for place, show, quinella, combination, or other types of betting
usually connected with racingpari - mutuel wagering .
SECTION 10. AMENDMENT. Section 53-06.2-10 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-10. Certificate system - Rules.
The certificate system allows a licensee to receive money from any person on a live,
simulcast, or historic horse or dog race. A person betting on an entry to win acquires an interest
in the total money bet on all entries in the race, in proportion to the amount of money bet by that
person, under rules adopted by the commission. The licensee shall receive the bets and for
each bet on a live or simulcast horse race shall issue a certificate to the bettor on which is at
least shown the number of the race, the amount bet, and the number or name of the entry
selected by the bettor. A certificate may not be issued for a wager on a historic horse race. The
commission may adopt rules for place, show, quinella, combination, or other types of
pari-mutuel wagering.
SECTION 11. AMENDMENT. Section 53-06.2-10.1 of the North Dakota Century Code is
amended and reenacted as follows:
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53-06.2-10.1. Simulcast wagering.
1.As used in this section, "account wagering" means a form of pari - mutuel wagering in
which an individual deposits money in an account and uses the account balance to
pay for pari - mutuel wagers.
2.In addition to racing under the certificate system, as authorized by this chapter, and
conducted upon the premises of a racetrack, simulcast pari-mutuel and account
wagering may be conducted in accordance with this chapter or rules adopted by the
commission under this chapter in accordance with chapter 28-32.
3.Any organization qualified under section 53-06.2-06 to conduct racing may make
written applicationapply to the commission for the conduct of simulcast pari-mutuel
and account wagering on races held at licensed racetracks inside the state or
racetracks outside the state, or both.
4.Licensure of service providers, totalizator companies, site operators, or organizations
applying to conduct or conducting simulcast or account wagering must be approved by
the attorney general. The attorney general may not grant a license denied by the
commission.
5.Notwithstanding any other provision of this chapter, the commission may authorize any
licensee to participate in interstate or international combined wagering pools with one
or more other racing jurisdictions. Anytime that
a.If a licensee participates in an interstate or international combined pool, the
licensee, as prescribed by the commission, may adopt the take-out of the host
jurisdiction or facility.
b.The commission may permit a licensee to use one or more of its races or
simulcast programs for an interstate or international combined wagering pool at
locations outside its jurisdiction and may allow pari-mutuel pools in other states to
be combined with pari-mutuel pools in its jurisdiction for the purpose of
establishing an interstate or international combined wagering pool.
c.The participation by a licensee in a combined interstate or international wagering
pool does not cause that licensee to be considered to be doing business in any
jurisdiction other than the jurisdiction in which the licensee is physically located.
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d.Pari-mutuel taxes or commissions may not be imposed on any amounts wagered
in an interstate or international combined wagering pool other than amounts
wagered within this jurisdiction.
e.Breakage for interstate or international combined wagering pools must be
calculated in accordance with the statutes or rules of the host jurisdiction and
must be distributed among the participating jurisdictions in a manner agreed to
among the jurisdictions.
6.The certificate system also permits pari-mutuel wagering to be conducted through
account wagering. As used in this section, "account wagering" means a form of
pari-mutuel wagering in which an individual deposits money in an account and uses
the account balance to pay for pari-mutuel wagers. An account wager made on an
account established in this state may only be made only through the licensed
simulcast service provider approved by the attorney general and authorized by the
commission to operate the simulcast pari-mutuel wagering system under the certificate
system. The attorney general may not grant a license denied by the commission. An
account wager may be made in person, by direct telephone communication, or
through other electronic communication in accordance with rules adopted by the
commission. Breakage for interstate or international combined wagering pools must be
calculated in accordance with the statutes or rules of the host jurisdiction and must be
distributed among the participating jurisdictions in a manner agreed to among the
jurisdictions.
SECTION 12. A new section to chapter 53-06.2 of the North Dakota Century Code is
created and enacted as follows:
Historic horse race wagering.
1.In accordance with pari - mutuel wagering under the certificate system, and if
conducted at an equine racing facility, pari - mutuel wagering on historic horse races
may be conducted in accordance with this chapter or rules adopted by the
commission. Any equine racing facility under this chapter may offer wagering on
historic horse races on electronic devices if:
a.Wagering is conducted within an equine racing facility, using the pari - mutuel
method of wagering;
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b.A licensee maintains no fewer than two terminals offering the same type of wager
on historic horse races;
c.The terminal used for conducting a historic horse race:
(1)Provides true and accurate past performance information on each historic
horse race before a patron makes selections;
(2)Displays the official results of each race;
(3)Has been tested by an independent testing laboratory to ensure integrity
and proper working order; and
(4)Displays pool amounts that patron will receive for a winning wager; and
d.The identity of each race is revealed to the patron after the patron has placed a
wager.
2.The terminal used for conducting a historic horse race may display a photographic
recording or digital simulation or recreation of a portion of the race.
3.Notwithstanding any other provision of this chapter, in addition to any bond provided to
the attorney general as security for other licensed activity pursuant to section
53 - 06.2 - 08, each licensed service provider approved by the commission to offer
wagering on historic horse races shall post a bond of five hundred thousand dollars
payable to the state. A licensed service provider posting a bond under this section is
not required to post more than one bond in the amount of five hundred thousand
dollars, regardless of the number of simulcast facilities at which it offers wagers on
historic horse races.
SECTION 13. A new section to chapter 53-06.2 of the North Dakota Century Code is
created and enacted as follows:
Pari-mutuel horse wagering.
For pari-mutuel horse wagering:
1.Wagers must be placed in one or more wagering pools.
2.Wagers on different races or sets of races may be pooled together.
3.Patrons may establish odds or payouts.
4.Winning patrons share in amounts wagered, including carryover amounts plus
amounts provided by an association less any deductions required, as approved by the
commission.
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5.Pools may be paid out incrementally as approved by the commission.
SECTION 14. A new section to chapter 53-06.2 of the North Dakota Century Code is
created and enacted as follows:
Racing commission operating fund.
There is created in the state treasury the racing commission operating fund. The fund
consists of all racing taxes, monetary fines, and interest and penalties collected under this
chapter.
SECTION 15. AMENDMENT. Section 53-06.2-11 of the North Dakota Century Code is
amended and reenacted as follows:
53-06.2-11. Bet payoff formulas - Uses by licensee of funds in excess of expenses -
Payment to general fund.
1.For wagering on live horse racing:
a.In win, place, and show pari-mutuel pools, the licensee may deduct no more than
twenty percent of the amount wagered. Of the amount wagered, the licensee
shall pay:
(1)One-half of one percent to the state treasurer to be deposited in the
generalracing commission operating fund.
(2)One-half of one percent to the commission to be deposited in the breeders'
fund.
(3)One-half of one percent to the commission to be deposited in the purse
fund.
(4)One-half of one percent to the commission to be deposited in the racing
promotion fund.
b.In daily double, quinella, exacta, trifecta, or other combination pari-mutuel pools,
the licensee may deduct no more than twenty-five percent of the amount
wagered. Of the amount wagered, the licensee shall pay:
(1)One-half of one percent to the state treasurer to be deposited in the
generalracing commission operating fund.
(2)One-half of one percent to the commission to be deposited in the breeders'
fund.
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(3)One-half of one percent to the commission to be deposited in the purse
fund.
(4)One-half of one percent to the commission to be deposited in the racing
promotion fund.
2.For simulcast and account wagering:
a.In win, place, and show pari-mutuel pools, the licensee may deduct no more than
twenty percent of the amount wagered. Except as limited in subdivision c, of the
amount wagered by simulcast and account wagering in win, place, and show
pari-mutuel pools, the licensee shall pay:
(1)One-sixteenth of one percent to the state treasurer to be deposited in the
generalracing commission operating fund.
(2)One-sixteenth of one percent to the commission to be deposited in the
breeders' fund.
(3)One-sixteenth of one percent to the commission to be deposited in the
purse fund.
(4)One-sixteenth of one percent to the commission to be deposited in the
racing promotion fund.
b.Except as limited in subdivision c, of the amount wagered by simulcast and
account wagering in daily double, quinella, exacta, trifecta, or other combination
pari-mutuel pools, the licensee shall pay:
(1)One-sixteenth of one percent to the state treasurer to be deposited in the
general fund.
(2)One-sixteenth of one percent to the commission to be deposited in the
breeders' fund.
(3)One-sixteenth of one percent to the commission to be deposited in the
purse fund.
(4)One-sixteenth of one percent to the commission to be deposited in the
racing promotion fund.
c.For the fiscal year commencing July 1, 2013, the licensee may not pay more than
four hundred thousand dollars. For the fiscal year commencing July 1, 2014, and
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thereafter, theThe licensee may not pay more than four hundred twenty thousand
dollars.
3.For historic horse race wagering, the licensee may deduct no more than twenty - five
percent of the amount wagered. Of the amount wagered, the licensee shall pay:
a.One - fourth of one percent to the state treasurer to be deposited in the
general racing commission operating fund.
b.One - sixth of one percent to be deposited in the breeder's fund.
c.One - sixth of one percent to be deposited in the purse fund.
d.One - sixth of one percent to be deposited in the racing promotion fund.
e.One - fourth of one percent to be deposited in the treasury of the county in which
wagering on historic horse racing takes place gambling disorder prevention and
treatment fund .
f.One - fourth of one percent to be deposited in the treasury of the city in which
wagering on historic horse racing takes place.
4.All moneys in the racing commission operating fund, in excess of those appropriated
by the legislative assembly for administrative and operating costs associated with the
racing commission, must be transferred to the general fund.
5. For all pari-mutuel wagering the licensee shall pay to the commission the amount due
for all unclaimed tickets and all breakage on the first twenty million dollars wagered in
each fiscal year with each service provider. The amount received must be deposited in
the racing promotion fund.
4.5. 6. The licensee conducting wagering on live racing, simulcast horse racing wagering,
historic horse racing, or account wagering shall retain all other money in the
pari-mutuel pool and pay it to bettors holding winning tickets as provided by rules
adopted by the commission.
5.6. 7. A licensee may not use any of the portion deducted for expenses under subsections 1
and 2 for expenses not directly incurred by the licensee in conducting pari-mutuel
racingwagering under the certificate system. After paying qualifying expenses, the
licensee shall use the remainder of the amount so withheld only for eligible uses
allowed to charitable gambling organizations under section 53-06.1-11.1.
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6.7. 8. The commission shall deposit the moneys received pursuant to subsections 1, 2, and
3, and 4 5 and from the North Dakota horse racing foundation pursuant to subsection 5
of section 53-06.2-05 in the breeders' fund, the purse fund, and the racing promotion
fund. Moneys, and any earnings on the moneys, in the breeders' fund, purse fund, and
racing promotion fund are appropriated to the commission on a continuing basis to
carry out the purposes of those funds under this chapter and must be administered
and disbursed in accordance with rules adopted by the commission. The commission
may not transfer money among the funds. The commission shall distribute in-state
awards and payment supplements from the breeders' fund in the same calendar year
the money was earned by the recipient. The commission shall distribute out-of-state
awards and payment supplements from the breeders' fund, if made available by the
commission, within two months of the end of the calendar year the money was earned
by the recipient. The commission shall distribute payments awarded to qualified
owners and breeders from the breeders' fund without requiring owners and breeders
to apply for the payments. The commission may receive twenty-five thousand dollars
per year or twenty-five percent per year, whichever is greater, from the racing
promotion fund for the payment of the commission's operating expenses.
SECTION 16. EFFECTIVE DATE. Sections 2, 7, and 10 of this Act are effective on
August 1, 2027.
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