Source: https://www.gambling-law-us.com/federal-gambling-laws/horse-racing-act/
Timestamp: 2020-01-19 02:56:33
Document Index: 568938530

Matched Legal Cases: ['§ 3001', '§ 3003', '§ 3004', '§ 3005', '§ 3006', '§ 3007', '§ 629', '§ 3002']

Amendment to the Interstate Horse Racing Act | Gambling Law US
Amendment to the Interstate Horse Racing Act
In December 2000, Congress, in spite of the Justice Department’s strong opposition, amended the Interstate Horseracing Act of 1978 [232] and specifically expanded the definition of “interstate off-track wager” to include pari-mutuel wagers transmitted between states by way of telephone or other electronic media, as follows:
[T]he term–. . . ‘interstate off-track wager’ means a legal wager placed or accepted in one State with respect to the outcome of a horserace taking place in another State and includes pari-mutuel wagers, where lawful in each State involved, placed or transmitted by an individual in one State via telephone or other electronic media and accepted by an off-track betting system in the same or another State, as well as the combination of any pari-mutuel wagering pools; [233]
The plain language of the revised statute would appear to permit interstate pari-mutuel wagering over the telephone or other modes of electronic communication, including the Internet, so long as such wagering is legal in both states. The legislative history of the amendment seems to support this conclusion.
Specifically, Congressman Frank R. Wolf (R-VA) expressed the following concern:
Mr. Speaker, . . ., this conference report contains a provision that deeply troubles me. I want Members of this body to be aware that section 629 . . . would legalize interstate pari-mutuel gambling over the Internet. Under the current interpretation of the Interstate Horse Racing Act in 1978, this type of gambling is illegal, although the Justice Department has not taken steps to enforce it. This provision would codify legality of placing wagers over the telephone or other electronic media like the Internet. [234]
In his statement that accompanied the signing of H. R. 4942, former President Clinton acknowledged the Justice Department’s objection to the amendment as follows:
[S]ection 629 of the Act amends the Interstate Horseracing Act of 1978 to include within the definition of the term ‘interstate off-track wager,’ parimutuel wagers on horseraces that are placed or transmitted from individuals in one State via the telephone or other electronic media and accepted by an off-track betting system in the same or another State. The Department of Justice, however, does not view this provision as codifying the legality of common pool wagering and interstate account wagering even where such wagering is legal in the various States involved for horseracing, nor does the Department view the provision as repealing or amending existing criminal statutes that may be applicable to such activity, in particular, sections 1084, 1952 and 1955 of Title 18, United States Code. [235].
Here is the text of the Interstate Horse Racing Act:
15 U.S.C. 3001, et seq.
Last visited Jan. 26, 2005
§ 3001. Congressional findings and policy
(1) “person ” means any individual, association, partnership, joint venture, corporation, State or political subdivision thereof, department, agency, or instrumentality of a State or political subdivision thereof, or any other organization or entity;
(2) “State ” means each State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and any territory or possession of the United States;
(3) “interstate off-track wager ” means a legal wager placed or accepted in one State with respect to the outcome of a horserace taking place in another State and includes pari-mutuel wagers, where lawful in each State involved, placed or transmitted by an individual in one State via telephone or other electronic media and accepted by an off-track betting system in the same or another State, as well as the combination of any pari-mutuel wagering pools;
(4) “on-track wager ” means a wager with respect to the outcome of a horserace which is placed at the racetrack at which such horse- race takes place;
(5) “host State ” means the State in which the horserace subject to the interstate wager takes place;
(6) “off-track State ” means the State in which an interstate off-track wager is accepted;
(7) “off-track betting system ” means any group which is in the business of accepting wagers on horseraces at locations other than the place where the horserace is run, which business is conducted by the State or licensed or otherwise permitted by State law;
(8) “off-track betting office ” means any location within an off-track State at which off-track wagers are accepted;
(9) “host racing association ” means any person who, pursuant to a license or other permission granted by the host State, conducts the horserace subject to the interstate wager;
(10) “host racing commission ” means that person designated by State statute or, in the absence of statute, by regulation, with jurisdiction to regulate the conduct of racing within the host State;
(11) “off-track racing commission ” means that person designated by State statute or, in the absence of statute, by regulation, with jurisdiction to regulate off-track betting in that State;
(12) “horsemen’s group ” means, with reference to the applicable host racing association, the group which represents the majority of owners and trainers racing there, for the races subject to the interstate off-track wager on any racing day;
(13) “parimutuel ” means any system whereby wagers with respect to the outcome of a horserace are placed with, or in, a wagering pool conducted by a person licensed or otherwise permitted to do so under State law, and in which the participants are wagering with each other and not against the operator;
(14) “currently operating tracks ” means racing associations conducting parimutuel horseracing at the same time of day (afternoon against afternoon; nighttime against nighttime) as the racing association conducting the horseracing which is the subject of the interstate off-track wager;
(15) “race meeting ” means those scheduled days during the year a racing association is granted permission by the appropriate State racing commission to conduct horseracing;
(16) “racing day ” means a full program of races at a specified racing association on a specified day;
(17) “special event ” means the specific individual horserace which is deemed by the off-track betting system to be of sufficient national significance and interest to warrant interstate off-track wagering on that event or events;
(18) “dark days ” means those days when racing of the same type does not occur in an off-track State within 60 miles of an off-track betting office during a race meeting, including, but not limited to, a dark weekday when such racing association or associations run on Sunday, and days when a racing program is scheduled but does not take place, or cannot be completed due to weather, strikes and other factors not within the control of the off-track betting system;
(19) “year ” means calendar year;
(20) “takeout ” means that portion of a wager which is deducted from or not included in the parimutuel pool, and which is distributed to persons other than those placing wagers;
(21) “regular contractual process ” means those negotiations by which the applicable horsemen’s group and host racing association reach agreements on issues regarding the conduct of horseracing by the horsemen’s group at that racing association;
(22) “terms and conditions ” includes, but is not limited to, the percentage which is paid by the off-track betting system to the host racing association, the percentage which is paid by the host racing association to the horsemen’s group, as well as any arrangements as to the exclusivity between the host racing association and the off-track betting system.
§ 3003. Acceptance of interstate off-track wager
§ 3004. Regulation of interstate off-track wagering
(A) as a condition precedent to such consent, said racing association (except a not-for-profit racing association in a State where the distribution of off-track betting revenues in that State is set forth by law) must have a written agreement with the horsemen’s group, under which said racing association may give such consent, setting forth the terms and conditions relating thereto; provided,
(B) that where the host racing association has a contract with a horsemen’s group at the time of enactment of this chapter which contains no provisions referring to interstate off-track betting, the terms and conditions of said then-existing contract shall be deemed to apply to the interstate off-track wagers and no additional written agreement need be entered into unless the parties to such then-existing contract agree otherwise. Where such provisions exist in such existing contract, such contract shall govern. Where written consents exist at the time of enactment of this chapter between an off-track betting system and the host racing association providing for interstate off-track wagers, or such written consents are executed by these parties prior to the expiration of such then-existing contract, upon the expiration of such then-existing contract the written agreement of such horsemen’s group shall thereafter be required as such condition precedent and as a part of the regular contractual process, and may not be withdrawn or varied except in the regular contractual process. Where no such written consent exists, and where such written agreement occurs at a racing association which has a regular contractual process with such horsemen’s group, said agreement by the horsemen’s group may not be withdrawn or varied except in the regular contractual process;
(3) the off-track racing commission
§ 3005. Liability and damages
Any person accepting any interstate off-track wager in violation of this chapter shall be civilly liable for damages to the host State, the host racing association and the horsemen’s group. Damages for each violation shall be based on the total of off-track wagers as follows:
(1) If the interstate off-track wager was of a type accepted at the host racing association, damages shall be in an amount equal to that portion of the takeout which would have been distributed to the host State, host racing association and the horsemen’s group, as if each such interstate off-track wager had been placed at the host racing association.
§ 3006. Civil action
In any civil action under this section, the host State, the host racing association and horsemen’s group, if not a party, shall be permitted to intervene as a matter of right.
§ 3007. Jurisdiction and venue
[232] See DC Appropriations, Pub. L. No. 106-553, § 629, 114 Stat. 2762A-108 (2000).
[233] 15 U.S.C. § 3002(3).
[234] 146 Cong. Rec. H 11230, 11232, 106th Cong. 2nd Sess. (2000).
[235] 5 U.S. Code & Cong. News., 106th Cong. 2nd Sess., 2457-2458 (2000).