Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO:
KRS
230.300,
230.361,
230.3615,
230.370,
230.380,
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
wagering on horse races under the pari-mutuel system of wagering. This
administrative regulation establishes the requirements for the operation of
pari-mutuel wagering under KRS Chapter 230 and KAR Title 810, Chapter 6.
Section 1. Pari-Mutuel System of Wagering
Required.
(1) The only wagering permitted on
live or historical horse races shall be under the pari-mutuel system of
wagering. All systems of wagering other than pari-mutuel shall be prohibited.
Any person participating or attempting to participate in prohibited wagering
shall be ejected and excluded from association grounds.
(2) Wagering conducted in conformity with KRS
Chapter 230 and KAR Title 810 is pari-mutuel.
Section 2. Totalizator or Other Approved
Equipment Required.
(1) Pari-mutuel wagering
on live and historical horse races shall only be conducted through the use of a
totalizator or other similar mechanical equipment approved by the commission
pursuant to
KRS
230.361.
(2) The totalizator or other mechanical
equipment shall be available for testing under the supervision of the
commission upon request by the commission to ensure proper working
order.
Section 3.
Wagering on Historical Horse Races Authorized.
(1) Wagering on historical horse races may be
conducted and, if conducted, shall be in accordance with KRS Chapter 230 and
KAR Title 810.
(2) Wagering on
historical horse races shall only be conducted by:
(a) An association licensed to conduct a live
horse race meet; or
(b) Two (2) or
more associations licensed to conduct a live horse race meet:
1. Who form a joint venture; or
2. Pursuant to an agreement between
them.
(3)
Wagering on historical horse races shall only be permitted in a designated area
on the licensed premises of an association licensed to conduct a live horse
race meeting. Wagering on historical horse races shall not be offered in any
other location.
(4) An association
may conduct wagering on historical horse races of any horse breed regardless of
the type of breed that primarily races in live meets conducted by the
association. An association may conduct wagering on historical horse races on
any days and hours approved by the commission, and shall not be limited to
times during which the association is conducting a live horse race
meeting.
(5) Any wager placed on a
historical horse race or races shall be an exotic wager.
(6) Before offering wagering on historical
horse races, an association shall first obtain the commission's written
approval of all wagers offered as established in KAR Title 810.
(7) All wagering on historical horse races
shall incorporate the elements established in paragraphs (a) through (f) of
this subsection.
(a) A patron may only wager
on historical horse races on a terminal approved by the commission pursuant to
this subsection and Section 5 of this administrative regulation.
(b) An association shall at all times
maintain at least two (2) terminals offering each type of exotic wager on
historical horse races.
(c) Once a
patron deposits an amount in the terminal offering wagering on historical horse
races, one (1) or more historical horse races shall be made available for
wagering.
(d) Prior to the patron
making his or her wager selections, the terminal shall not display any
information that would allow the patron to identify the historical horse race
or races on which he or she is wagering, including the location of the race or
races, the date on which the race or races was run, the names of the horses in
the race or races, or the names of the jockeys or drivers that rode the horses
in the race or races.
(e) The
terminal shall make available true and accurate past performance information on
the historical horse race to the patron prior to making his or her wager
selections. The information shall be current as of the day the historical horse
race was actually run. The information provided to the patron shall be
displayed on the terminal in data or graphical form.
(f) After a patron finalizes his or her wager
selections, the terminal shall display the patron's selections, the official
results of each race, and a replay of the race or races, or a portion thereof,
whether by digital or animated depiction or by way of a video recording. The
identity of each race shall be revealed to the patron after the patron has
placed his or her wager.
Section 4. Payouts through Pari-Mutuel Pools
Authorized.
(1)
(a) A wager on a historical horse race or
races, less deductions permitted by KRS Chapter 230 or KAR Title 810, shall be
placed in pari-mutuel pools approved by the commission based on promoting the
best interests of racing.
(b) A
payout to a winning patron shall be paid from money wagered by patrons and
shall not constitute a wager against the association.
(c) An association conducting wagering on
historical horse races shall not conduct wagering in a manner that results in
patrons wagering against the association, or in a manner so that the amount
retained by the association as a commission is dependent upon the outcome of
any particular race or the success of any particular wager.
(2) An association offering
wagering on historical horse races shall operate a pari-mutuel pool or pools in
a manner and method approved by the commission. An association offering
wagering on historical horse races may operate a player-funded pool or pools in
a manner and method approved by the commission for the purpose of ensuring that
sufficient funds are at all times available to pay any winning wagers in
situations where a pari-mutuel pool becomes a "minus" pool as defined by 810
KAR 6:001. For each wager made, an association may assign a percentage of the
wager to a player-funded pool or pools.
(3) If an association chooses to make a
deposit into a trust account for the purpose of ensuring that sufficient funds
are at all times available to pay any winning wagers in situations in which a
pari-mutuel pool becomes a minus pool, then that trust account shall be
approved by the commission.
Section
5. Location of Terminals Used for Wagering on Historical Horse
Races.
(1) Terminals offering wagering on
historical horse races shall be located within designated areas that have the
prior written approval of the commission. Designated areas shall be established
so as to control access by the general public and prevent entry by any patron
who is under eighteen (18) years of age or is otherwise not permitted to place
wagers.
(2) Each association shall
monitor persons entering and leaving the designated areas and shall prevent
access to any patron who is under eighteen (18) years of age or is otherwise
not permitted to place wagers on historical horse races.
(3) Each association shall provide terminals
that are accessible to handicapped patrons.
Section 6. Records to be Maintained.
(1) Each association and each simulcast
facility authorized under
KRS
230.380 shall maintain complete records of
all pari-mutuel wagering transactions on live and historical horse races,
including the amounts wagered at each betting window, self-service totalizator,
mobile pari-mu-tuel teller, and terminal.
(2) A copy of the wagering records shall be
retained and safeguarded for a period of not less than two (2) years and shall
not be destroyed after the two (2) year-period without the prior written
permission of the commission.
Section
7. Equipment.
(1) The
association and the totalizator provider shall install a primary and secondary
device, which activate the stop betting function of the totalizator system. The
chief state steward, presiding judge, or his or her designee, shall use the
primary device to stop wagering at the start of a live horse race. If wagering
is not stopped by the primary device at the start of the race, the totalizator
operator shall stop wagering using the secondary device. The secondary device
shall be installed in the totalizator room and shall only be used by the
totalizator operator.
(2) If there
is a complete breakdown of the totalizator or mechanical equipment during the
wagering on a live horse race, the wagering on that race shall be declared
closed. If the totalizator remains capable of computing payouts, the payouts
for that race shall be computed based on the amounts wagered prior to the
breakdown. If the totalizator is incapable of computing payouts, then refunds
shall be issued for all amounts wagered on that race.
(3) If there is a complete breakdown of a
terminal offering wagering on historical horse, the association offering the
wager shall make a full refund of the patron's balance on the terminal at the
time of the breakdown.
Section
8. Entries in a Live Horse Race.
(1) The chief state steward or presiding
judge shall timely advise an association's pari-mutuel manager, prior to the
beginning of wagering on each live horse race, of the horses that will compete
in the race.
(2) If two (2) or more
horses entered for the same live horse race are determined by the commission to
have common ties through ownership or training, they may be joined by the
commission as a mutuel entry. The mutuel entry shall become a single betting
interest and a wager on one (1) horse in a mutuel entry shall be a wager on all
horses in the same mutuel entry. If the number of horses competing in a live
horse race exceeds the numbering capacity of the totalizator, the racing
secretary shall assign the highest pari-mutuel numbers to horses so that the
highest numbered horse within the numbering capacity of the totalizator,
together with horses of higher numbers, shall be grouped in the mutuel field as
a single betting interest, and a wager on one (1) horse in the mutuel field
shall be a wager on all horses in the same mutuel field.
(3) A refund at cost value shall be made to
all holders of a purchased ticket bearing the number of a horse in any race
that has been scratched or withdrawn before the horse has become a starter,
unless the horse is part of a mutuel entry, and one (1) or more of the entry
starts.
Section 9. Sale
of Pari-Mutuel Tickets on Live Horse Races.
(1) The following types of pari-mutuel
wagering shall be permitted on a live horse race at all licensed associations
and simulcast facilities:
(a) Normal win,
place, and show wagers on each race;
(b) Any exotic wager previously approved by
the commission pursuant to 810 KAR 6:010; and
(c) Any new exotic wager approved in writing
by the commission pursuant to KAR Title 810.
(2) Pari-mutuel tickets on live horse races
shall not be sold except by a licensed association or a simulcast facility
authorized by
KRS
230.380.
(3) Pari-mutuel tickets on a live horse race
shall only be sold at regular ticket windows, self-service totalizator
machines, by mobile pari-mutuel tellers with hand-held totalizator devices, or
by any other method approved in writing by the commission prior to being
offered to the public. At least one (1) regular ticket window shall be made
accessible to handicapped patrons.
(4)
(a)
Pari-mutuel stored value cards or cash vouchers may be offered by an
association. The dollar amount on the stored value card or cash voucher may be
redeemed at any time at any regular ticket window, or used to fund additional
wagers.
(b) Cash vouchers shall be
valid for one (1) year after the date of issuance. Failure to present any cash
voucher for redemption within one (1) year of issuance shall constitute a
waiver of the right to receive payment on the voucher.
(5) A pari-mutuel wager shall not be made on
a race after the totalizator has been locked for that race.
(6) Any claim by a patron that he or she has
been issued a pari-mutuel ticket other than that requested shall be made before
the patron has left the ticket window or before the mobile teller has initiated
a transaction with another patron. A claim for an incorrect ticket shall not be
honored after the totalizator has been locked.
Section 10. Payment on Pari-Mutuel Tickets on
Live Horse Races.
(1) At the end of each live
horse race, the placing judges shall advise the manager of the pari-mutuel
department by the use of the totalizator equipment or by telephone of the
official placement of the horses, and payouts shall not be made until the
receipt of the notice.
(2) Payment
of valid pari-mutuel tickets shall be made on the basis of the order of finish
as declared "official" by the stewards or judges. A subsequent change in the
order of finish or award of purse money that could result from a subsequent
ruling by the stewards, judges, or commission shall not affect the pari-mutuel
payout.
(3) Each association shall
deduct from each pari-mutuel pool a commission, not exceeding the commission
established by
KRS
230.3615 or
KRS
230.750. The remainder of the pari-mu-tuel
pool after the deduction of the commission shall be the net pool for
distribution as payouts to ticket holders.
(4) Payment on valid pari-mutuel tickets
shall be made only if presented and surrendered within one (1) year following
the running of the live horse race on which the wager was made. Failure to
present a ticket within one (1) year shall constitute a waiver of the right to
receive payment on the ticket.
(5)
The association shall be responsible for the correctness of all payout prices
posted as "official." If an error is made in posting the payout figures, and
ascertained before any tickets are cashed, the posting error shall be
corrected, accompanied by a public address announcement, and only the correct
amounts shall be used in the payout, irrespective of the initial
error.
(6) A mutilated pari-mutuel
ticket that is not easily identifiable as being a valid ticket shall not be
accepted for payment.
(7) An
association shall establish a written procedure for granting patrons an
opportunity to file a claim on a lost pari-mutuel ticket and provide a copy to
the commission.
(8) Prior to
posting payouts, the association's pari-mutuel manager shall require the
verification of the winning runners and prices prior to posting official
results.
(9)
(a) If an error is made in calculating the
payout on a winning wager, resulting in overpayment, the association shall be
responsible for the amount between the correct payout and the amount
paid.
(b) If the error in
calculation results in a payout being too low, the amount between the correct
payout and the amount paid shall be added to the net pool of the same position
in the following race on the same day or, if it is the last race of the day,
then it shall be added to the net pool of the same position in the same race on
the following day. If an error occurs in computing the daily double pool, the
underpayment shall be added to the daily double pool of the following
day.
(c) If an error occurs causing
underpayment on the last race of the entire racing meeting, the amount of the
underpayment shall be paid to the Kentucky Revenue Cabinet.
Section 11. Minimum
Wagers and Payouts.
(1) The minimum wager to
be accepted by any licensed association on a live horse race shall be ten (10)
cents. The minimum payout on a one (1) dollar wager on a live horse race shall
be one (1) dollars and ten (10) cents, unless a minus pool occurs. If a minus
pool occurs, the minimum payout for a one (1) dollar wager shall be one (1)
dollar and five (5) cents.
(2) The
minimum wager to be accepted by an association on an exotic wager based on the
outcome of a historical horse race or races shall be ten (10) cents. The
minimum payout on any wager shall not be less than the amount
wagered.
Section 12.
Minors Prohibited from Wagering. A minor shall not be permitted by any licensed
association or simulcast facility to purchase or cash a pari-mutuel
ticket.
Section 13. Odds and
payouts posted.
(1) Approximate odds for live
horse races, based on win pool betting for finishing first for each betting
interest, shall be posted on one (1) or more boards or television screens
within view of the wagering public at intervals of not more than ninety (90)
seconds.
(2) If daily double
wagering is conducted on a live horse race, before off-time of the second daily
double race, the probable payout for each two (2) dollar daily double wager
combining the winner of the first daily double race with every horse or betting
interest in the second daily double race shall be posted; except that if a dead
heat for first in the first daily double race occurs, or a scheduled starter in
the second daily double race is excused so as to cause a consolation daily
double pool, then posting of all possible payouts shall not be mandatory, but
the association shall make every effort to compute these daily double prices
and advise the public by posting or public address announcement as soon as
possible and prior to the running of the second daily double race.
(3) For wagering on historical horse races,
approximate odds or payouts for each pari-mutuel pool shall be posted or made
available on each terminal for viewing by patrons.
Section 14. Betting Explanation.
(1) Each association shall publish in the
daily race program, for each day of live horse racing, a general explanation of
pari-mutuel wagering offered on live horse races and an explanation of each
type of pari-mutuel pool offered. The explanation also shall be posted in
conspicuous places about the association grounds to adequately inform the
public and shall be submitted to the commission prior to publication for
approval.
(2) Each association
shall post, in conspicuous places in the designated area, a general explanation
of pari-mutuel wagering offered on historical horse races and an explanation of
each pari-mutuel pool offered. The explanation shall be submitted to the
commission for approval prior to its posting.
Section 15. Prior Approval Required for
Number of Live Horse Races. Each association desiring to conduct more than nine
(9) live horse races on a single day shall first apply in writing to the
commission and obtain specific approval, based on promoting the best interests
of racing, of the number of live horse races to be offered on a single
day.
Section 16. Pari-mutuel Pools
Dependent upon Entries for Live Horse Races.
(1) If horses representing five (5) or fewer
betting interests qualify to start in a live horse race, the association may
prohibit show wagering on that race. If horses representing four (4) or fewer
betting interests qualify to start in a live horse race, the association may
prohibit both place and show wagering on that race.
(2) If a horse is scratched by the stewards
or judges after wagering has commenced, or if a horse is prevented from running
in a live horse race because of failure of a starting-gate door to open
properly, and the number of actual starters representing different betting
interests is:
(a) Reduced to five (5), the
association may cancel show wagering on that race and the entire show pool
shall be refunded upon presentation and surrender of show tickets; or
(b) Reduced to four (4) or fewer, the
association may cancel both place and show wagering on that race and the entire
place and show pool shall be refunded upon presentation and surrender of place
and show tickets.
Section
17. Emergency Situation. If any emergency arises in connection
with the operation of the pari-mutuel department not provided for by this
administrative regulation, the pari-mutuel manager shall take immediate
corrective action and shall by the quickest means possible notify the chief
state steward or presiding judge and render a full report to the
commission.
Section 18.
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