85R13010 GCB-F
By: Kuempel H.B. No. 3925
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of wagering through telephone, the
Internet, or other approved electronic means on horse races and
greyhound races under the pari-mutuel system of wagering; requiring
a license to operate account wagering; requiring a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1.03, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Subdivisions
(82) and (83) to read as follows:
(82) "Account wagering" means a form of pari-mutuel
wagering that allows an individual to deposit money in an account
with an association or an account wagering operator for the
individual's use in pari-mutuel wagering offered by the association
on live or simulcast horse races or greyhound races.
(83) "Account wagering operator" means an entity
licensed by the commission to provide an account for account
wagering by persons in this state.
SECTION 2. Article 7, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by adding Section 7.11
to read as follows:
Sec. 7.11. ACCOUNT WAGERING LICENSE. (a) A person may not
offer account wagering, operate as an account wagering operator, or
act as an employee of a person offering account wagering or
operating as an account wagering operator unless the person or
employee, as applicable, holds a license issued by the commission
under this section.
(b) The commission shall adopt rules and procedures for
applying for or issuing, denying, or revoking a license under this
section in a manner consistent with other licensing provisions of
this Act.
(c) The commission shall establish fees for initial and
annual renewal licensing of account wagering operators and of
employees of account wagering operators.
SECTION 3. Section 11.01, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subsection
(a) and adding Subsection (c) to read as follows:
(a) The commission shall adopt rules to regulate wagering on
greyhound races and horse races under the system known as
pari-mutuel wagering. Wagering may be conducted only by an
association within its enclosure or by an account wagering
operator. Except as provided by Subsection (c), a [A] person may
not accept, in person, by telephone, or over the Internet, a wager
for a horse race or greyhound race conducted inside or outside this
state from a person in this state unless the wager is authorized
under this Act.
(c) An association or an account wagering operator may
accept account wagering in person or by direct telephone call or
through other electronic means by the holder of the account. An
account wagering operator that is not an association shall, if the
operator or any of the operator's affiliates conducts live racing,
contract with an association for interstate simulcast wagering. An
account wagering operator shall contract with an association to
offer wagering on live races on the account wagering operator's
system, if authorized by law.
SECTION 4. Section 11.04, Texas Racing Act (Article 179e,
Vernon's Texas Civil Statutes), is amended by amending Subsection
(b) and adding Subsections (b-1) and (b-2) to read as follows:
(b) The commission may [shall] adopt rules to authorize
account wagering by [prohibiting] an association or an account
wagering operator under conditions the commission determines
appropriate to protect the public health and safety [from accepting
wagers by telephone]. For purposes of this Act, account wagering by
a person in this state through an association or an account wagering
operator is considered wagering by a person in the enclosure of the
association or of the association that has contracted with the
account wagering operator.
(b-1) The commission shall adopt rules setting the amount,
less refunds, that may be deducted from the gross pari-mutuel
handle of the association or account wagering operator conducting
account wagering, provided that amount is not less than six percent
of the gross pari-mutuel handle.
(b-2) The amount of all fees paid to the commission from
account wagering may not exceed one percent of the total gross
account wagering receipts, as determined by the computational
equipment approved by the commission for calculating wagering as
required under Section 11.02, from wagers placed by persons in this
state with each association or account wagering operator offering
account wagering.
SECTION 5. As soon as practicable after the effective date
of this Act, the Texas Racing Commission shall adopt the rules
necessary to implement the change in law made by this Act.
SECTION 6. This Act takes effect September 1, 2017.