88R13342 PRL-F
By: Kuempel H.B. No. 4100
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 2021.003, Occupations Code, is amended
by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b)
to read as follows:
(1) "Account wagering" means a form of pari-mutuel
wagering that allows an individual to deposit money in an account
with a racetrack association or an account wagering operator for
the individual's use in pari-mutuel wagering offered by the
racetrack association on live or simulcast horse races or greyhound
races.
(1-a) "Account wagering operator" means an entity
licensed by the commission to provide an account for account
wagering by persons in this state.
(1-b) "Accredited Texas-bred horse" means a
Texas-bred horse that meets the accreditation requirements of the
state horse breed registry for that breed of horse.
SECTION 2. Subchapter F, Chapter 2025, Occupations Code, is
amended by adding Section 2025.2511 to read as follows:
Sec. 2025.2511. 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 chapter.
SECTION 3. Section 2027.001(b), Occupations Code, is
amended to read as follows:
(b) Rules adopted under this subtitle must include rules to:
(1) regulate wagering by a person licensed under this
subtitle;
(2) prohibit wagering by a commission employee;
(3) authorize account wagering by [prohibit] a
racetrack association or an account wagering operator under
conditions the commission determines appropriate to protect the
public health and safety [from accepting a wager made by
telephone]; and
(4) prohibit a racetrack association from accepting a
wager made on credit.
SECTION 4. Section 2027.002, Occupations Code, is amended
by amending Subsections (a) and (b) and adding Subsections (b-1)
and (c-1) to read as follows:
(a) Wagering may be conducted only by:
(1) a racetrack association within the racetrack
association's enclosure; or
(2) an account wagering operator.
(b) Except as provided by Subsection (b-1), a [A] person may
not accept, in person, by telephone, or over the Internet, a wager
for a horse or greyhound race conducted inside or outside this state
from a person in this state unless the wager is authorized under
this subtitle.
(b-1) A racetrack association or an account wagering
operator may accept account wagering in person or by direct
telephone call or through other electronic means by the account
holder. An account wagering operator that is not a racetrack
association and that conducts, or any of the operator's affiliates
conducts, live racing shall contract with a racetrack association
for interstate simulcast wagering. An account wagering operator
may contract with a racetrack association to offer wagering on live
races on the account wagering operator's system only as authorized
under this subtitle.
(c-1) For purposes of this subtitle, account wagering by a
person in this state through a racetrack association or an account
wagering operator is considered wagering by a person in the
enclosure of the racetrack association or of the racetrack
association that has contracted with the account wagering operator.
SECTION 5. Chapter 2028, Occupations Code, is amended by
adding Subchapter B-1 to read as follows:
SUBCHAPTER B-1. GENERAL DEDUCTIONS FROM ACCOUNT WAGERING
Sec. 2028.071. DEDUCTIONS FROM ACCOUNT WAGERING. (a) The
commission shall adopt rules setting the amount, less refunds, that
may be deducted from the gross pari-mutuel handle of the racetrack
association or account wagering operator conducting account
wagering, provided that amount is not less than six percent of the
handle.
(b) 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 2027.003, from wagers placed by persons in
this state with each racetrack association or account wagering
operator offering account wagering.
SECTION 6. 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 7. This Act takes effect September 1, 2023.