Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
230.300,
230.361,
230.3615,
230.370,
230.398,
230.750
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
230.215(2) authorizes the
Kentucky Horse Racing Commission to regulate conditions under which horse
racing and pari-mutuel wagering thereon shall be conducted in Kentucky.
KRS
230.361(1) requires the
commission to promulgate administrative regulations governing and regulating
pari-mutuel wagering on horse races under the pari-mutuel system of wagering.
This administrative regulation establishes the procedures and regulations
governing exotic wagering under KRS Chapter 230 and KAR Title 810.
Section 1. All Pari-mutuel Wagers on a
Historical Horse Race or Races Shall be Exotic Wagers. All pari-mutuel wagers
other than win, place, or show wagers on a live horse race shall be exotic
wagers.
Section 2. Exotic Wagers
Shall be Approved by Commission.
(1) An
association shall not offer an exotic wager on any live or historical horse
race or races without the prior written approval of the commission.
(2) An association making a request to offer
an exotic wager on a live or historical horse race may make an oral
presentation to the commission regarding the wager prior to the commission
deciding on the request.
(a) The presentation
shall be made by the association during a meeting of the commission.
(b) The presentation shall be limited to the
information contained in the written request and any supplemental information
relevant to the commission's determination of the suitability of the
wager.
(c) The commission may
require an association to clarify or otherwise respond to questions concerning
the written request as a condition of approval for the exotic wager.
(3) The commission may request
additional information from an association regarding the exotic wager if the
additional information would assist the commission in deciding whether or not
to approve it.
(4) In reviewing a
written request for an exotic wager, the commission may consider any
information, data, reports, findings, or other factors available that the
commission considers important or relevant to its determination regarding wager
approval.
(5) The commission or its
designee shall review and test the exotic wager and shall give its approval if
it is satisfied that the wager:
(a) Will not
adversely affect the safety or integrity of horse racing or pari-mutuel
wagering in the Commonwealth; and
(b) Complies with KRS Chapter 230 and KAR
Title 810.
(6) The
commission shall notify the association if the commission determines that the
criteria established in subsection (5) of this section are no longer being met
and the commission intends to withdraw approval of a particular exotic
wager.
(7) An association shall not
implement any change or modification to the practices, procedures, or
representations upon which the approval of the exotic wager was based without
the prior written approval of the commission.
Section 3. Exotic Wagers on a Live Horse Race
or Races.
(1) Except as established in
subsection (2) of this section, an association shall submit a written request
to the commission for permission to offer any exotic wager on a live horse race
or races, which shall include a detailed description of the rules that apply to
the pari-mutuel wager and the method of calculating payouts.
(2) If the rules have not been modified since
the wager was approved by the commission, an association shall not be required
to seek the commission's approval to offer the following previously approved
exotic wagers on live horse races: Exacta, Perfecta, Quinella, Trifecta,
Super-fecta, Double Perfecta, Big Q, Twin Trifecta, Daily Double, Super High 5,
Pick-3, Pick-4, and Pick-6.
Section
4. Exotic Wagers on a Historical Horse Race or Races.
(1) An association shall submit a written
request to the commission for permission to offer any exotic wager on a
historical horse race or races, which shall include:
(a) The types, number, and denominations of
pari-mutuel wagers to be offered;
(b) A detailed description of the rules that
apply to the pari-mutuel wager, the trust account, if applicable, and the
player-funded pool or pools, if applicable, as well as the method of
calculating payouts;
(c) The days
and hours of operation during which wagering on historical horse races will be
offered;
(d) A detailed description
of the proposed designated area and the terminal or terminals on which the
pari-mutuel wagers will be made, including:
1.
An architect's rendering of the proposed designated area which describes the
size, construction, layout, capacity, number of terminals, and location of
surveillance and other security equipment; and
2. At least one (1) photograph of the
designated area once construction is completed;
(e) The practices and procedures that will
ensure the security, safety, and comfort of patrons in the designated
area;
(f) The manufacturer, make,
and model of the terminal, including a copy of all literature supplied by the
manufacturer of the terminal;
(g)
The maintenance and repair procedures that will ensure the integrity of the
terminals;
(h) A complete list of
individuals who are authorized to examine and repair the terminals for any
reason; and
(i) A memorandum
stating the terms of the agreement established in Section 6(2) of this
administrative regulation between the association and one (1) of the following
horsemen's organizations, as applicable:
1.
For thoroughbred associations operating historical horse racing, the Kentucky
Horsemen's Benevolent and Protective Association, the Kentucky Thoroughbred
Association/Kentucky Thoroughbred Owners and Breeders, or their
successors;
2. For standardbred
associations operating historical horse racing, the Kentucky Harness Horsemen's
Association, the Kentucky Harness Association, or their successors;
3. For quarterhorse associations operating
historical horse racing, the Kentucky Quarter Horse Racing Association or its
successor;
4. For Arabian
associations operating historical horse racing, the Arabian Jockey Club, or its
successor; and
5. For appaloosa
associations operating historical horse racing, a horsemen's organization
representing appaloosa racing.
(2)
(a)
Except as established in paragraph (b) of this subsection, each association
that is approved by the commission to offer exotic wagering on historical horse
racing shall request, in any application submitted for a license, to conduct
live horse racing pursuant to
KRS
230.300 and
810 KAR
3:010:
1. No less
than 100 percent of the number of racing days initially requested by the
association in its application, incorporated by reference in
810 KAR
3:010, to conduct racing for the 2010 racing year;
and
2. No less than 100 percent of
the number of races initially requested by the association in its application,
incorporated by reference in
810 KAR
3:010, to conduct racing for the 2010 racing
year.
(b) An association
may apply for less than 100 percent of the number of racing days initially
applied for by the association in its application to conduct racing for 2010,
or the number of races initially applied for by the association in its
application to conduct racing for 2010, if written approval is obtained from
the commission, and from one (1) of the following horsemen's organizations, as
applicable:
1. For thoroughbred associations
operating historical horse racing, the Kentucky Horsemen's Benevolent and
Protective Association, the Kentucky Thoroughbred Association/Kentucky
Thoroughbred Owners and Breeders, or their successors;
2. For standardbred associations operating
historical horse racing, the Kentucky Harness Horsemen's Association, the
Kentucky Harness Association, or their successors;
3. For quarterhorse associations operating
historical horse racing, the Kentucky Quarter Horse Racing Association or its
successor;
4. For Arabian
associations operating historical horse racing, the Arabian Jockey Club, or its
successor; and
5. For appaloosa
associations operating historical horse racing, a horsemen's organization
representing appaloosa racing.
Section 5. Terminals Used for Wagering on a
Historical Horse Race or Races.
(1) Wagering
on historical horse races shall be conducted only on terminals approved by the
commission as established in Section 2(5) of this administrative regulation and
subsection (2) of this section. The commission shall not require any particular
make of terminal.
(2)
(a) The commission shall require testing of
each terminal used for wagering on historical horse races by an independent
testing laboratory to ensure the terminal's integrity and proper working
order.
(b) The independent testing
laboratory shall be chosen by the commission, based on promoting the best
interests of racing, and the expense of the testing shall be paid by the
association offering the wagering on historical horse races.
(3) Each terminal for wagering on
historical horse races shall display odds or pool amounts that the patron will
receive for a winning wager on each pari-mutuel wagering pool.
Section 6. Takeout.
(1) Each association conducting exotic
wagering on historical horse races shall deduct a takeout, which shall not
exceed the percentages established in
KRS
230.3615 or
KRS
230.750, as applicable.
(2)
(a)
Each association shall enter into an agreement with one (1) of the following
horsemen's organizations, as applicable, to establish the allocation of the
takeout on all exotic wagers on historical horse races offered by the
association:
1. For thoroughbred associations
operating historical horse racing, the Kentucky Horsemen's Benevolent and
Protective Association, the Kentucky Thoroughbred Association/Kentucky
Thoroughbred Owners and Breeders, or their successors;
2. For standardbred associations operating
historical horse racing, the Kentucky Harness Horsemen's Association, the
Kentucky Harness Association, or their successors;
3. For quarterhorse associations operating
historical horse racing, the Kentucky Quarter Horse Racing Association or its
successor;
4. For Arabian
associations operating historical horse racing, the Arabian Jockey Club, or its
successor; and
5. For appaloosa
associations operating historical horse racing, a horsemen's organization
representing appaloosa racing.
(b) The agreement shall apply to all exotic
wagers on historical horse races offered, or to be offered, by the association
during the term of the agreement.
(c) The agreement shall include provisions
allocating a percentage of the takeout to purses on live races run by the
association.
(d) Each association
shall provide a memorandum outlining the terms of the agreement to the
commission.
Section
7. Severability. In the event that any provision or administrative
regulation of this chapter is found to be invalid, the remaining provisions of
this chapter shall not be affected nor diminished thereby.
STATUTORY AUTHORITY:
KRS
230.210,
230.215,
230.361,
230.370