Interstate Horse Racing Act
PL 95-515 (S.1185), enacted 10/25/1978

PUBLIC LAW 95-515—OCT. 25, 1978 
92 STAT. 1811 
Public Law 95-515 
95th Congress 
An Act 
To regulate interstate commerce with respect to parimutuel wagering on horse- 
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racing, to maintain the stability of the horseracing industry, and for other 
[S. 1185] 
purposes. 
Be It enacted hy the Senate and House of Representatives of the 
United States of America in Congress assembled^ This Act may be Interstate 
cited as the "Interstate Horseracing Act of 1978". 
" 
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FINDINGS AND POLICY 
of 1978. 
15 u s e 3001 
note. 
SEC. 2. (a) The Congress finds that— 
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15 USC 3001. 
(1) the States should have the primary responsibility for deter-
mining what forms of gambling may legally take place within 
their borders; 
(2) the Federal Government should prevent interference by one 
State with the gambling policies of another, and should act to 
protect identifiable national interests; and 
(3) in the limited area of interstate off-track wagering on horse-
races, there is a need for Federal action to ensure States will 
continue to cooperate with one another in the acceptance of legal 
interstate wagers. 
(b) It is the policy of the Congress in this Act to regulate interstate 
commerce with respect to wagering on horseracing, in order to further 
tlic horseracing and legal off-track betting industries in the United 
States. 
DEFINITIONS 
SEC. 3. For the purposes of this Act the term— 
15 USC 3002. 
(1) "person" means any individual, association, partnership, 
joint venture, corporation, State or political subdivision thereof, 
department, agency, or instrumentality of a State or political sub-
division 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 terri-
tory 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; 
(4) "on-track wager" means a wager with respect to the out-
come of a horserace which is placed at the racetrack at which such 
horserace takes place; 
(5) "host State" means the State in which the horserace sub-
ject 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; 
92 STAT. 1812 
PUBLIC LAW 95-515—OCT. 25, 1978 
(9) "host racing association" means any person who, pursuant 
to a license or other permission jjranted 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 tlie conduct of racing within the host 
State; 
(11) "off-track racing commission" means that person desig-
nated 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 appli-
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cable host racing association, the group which represents the 
majority of owners and trainers racing there, for the races subject 
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to the interstate off-track wager on any racing day; 
(13) "parimutuel" means any system whereby wagers with 
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respect to tbe outcome of a horserace are placed with, or in, a 
wagering pool conducted by a person licensed or otherwise per-
mitted 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 (after-
noon against afternoon; nighttime against nighttime) as the rac-
ing 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 
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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 asso-
ciations 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 tlie 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 distrib-
uted 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. 
PUBLIC LAW 95-515—OCT. 25, 1978 
92 STAT. 1813 
PROHIBITION 
SEC. 4. No person may accept an interstate ott'-ti-ack wager except 15 U
S
C 3003. 
as provided in this Act. 
REOUI^ATION 
SEC. 5. (a) An interstate off-track wager may be accepted by an 15 USC 3004. 
off-track betting system only if consent is obtained from— 
(1) the host racing association, except that— 
(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 associa-
tion may give such consent, setting forth the terms and condi-
tions 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 Act 
., ^^ , _ 
which contains no provisions referring to interstate off-track 
betting, the terms and conditions of said then-existing con-
tract 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 con-
tract, such contract shall govern. Where written consents exist 
at the time of enactment of this Act between an oft'-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 proc-
ess. Where no such written consent exists, and where such 
written agreement occurs at a racing association which has a 
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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; 
(2) the host racing commission; 
(3) the off-track racing commission. 
(b) (1) In addition to the requirement of subsection (a), any off-
track betting office shall obtain the approval of— 
(A) all currently operating tracks within 60 miles of such off-
track betting office; and 
(B) if there are no currently operating tracks within 60 miles 
then the closest currently operating track in an adjoining State. 
(2) Notwithstanding the provisions of paragraph (1) of this sub-
section, any off-track betting office in a State with at least 250 days of 
on-track parimutuel horseracing a year, may accept interstate off'-track 
wagers for a total of 60 racing days and 25 special events a year with- 
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out the approval required by paragraph (1), if with respect to such 
60 racing days, there is no racing of the same type at the same time of 
day being conducted within the off-track betting State within 60 miles 
of the off-track betting office accepting the wager, or such racing pro-
92 STATi 1814 
PUBLIC LAW 95-515—OCT. 25, 1978 
gram cannot be completed. Excluded from such 60 days and from the 
< ii, 
consent required by subsection (b) (1) may be dark days which occur 
during a regularly scheduled race meeting in said on-track betting 
State. In order to accept any interstate off-track wager under the terms 
of the preceding sentence the off-track betting office shall make iden-
* '. 
tical offers to any racing association described in subparagraph (A) 
of subsection (b) (1). Nothing in this subparagraph shall be construed 
to reduce or eliminate the necessity of obtaining all the approvals 
required by subsection (a). 
(c) No parimutuel off-track betting system may employ a takeout 
for an interstate wager which is greater than the takeout for corre-
sponding wagering pools of off-track wagers on races run within the 
off-track State except where such greater takeout is authorized by 
State law in the off-track State. 
LIABILITY AND DAMAGES 
15 US€ 3005. 
SEC. 6. Any person accepting any interstate off-track wager in viola-
tion of this Act 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. 
(2) If such interstate off-track wager was of a type not accepted 
at the host racing association, the amount of damages shall be 
determined at tlie rate of takeout prevailing at the off-track betting 
system for that type of wager and shall be distributed according 
to the same formulas as in paragraph (1) above. 
CIVIL ACTION 
15 use 3006. 
SEC. 7. (a) The host State, the host racing association, or the horse-
men's group may commence a civil action against any person alleged 
to be in violation of this Act, for injunctive relief to restrain violations 
and for damages in accordance with section 6. 
(b) In any civil action under this section, the host State, the host 
racing association and horsemen's group, if not a party, shall be per-
mitted to intervene as a matter of right. 
(c) A civil action may not be commenced pursuant to this section 
more than 3 years after the discovery of the alleged violation upon 
Avhich such civil action is based. 
(d) Nothing in this Act shall be construed to permit a State to be 
sued under this section other than in accordance with its applicable 
laws. 
JURISDICTION AND VENUE 
15 use 3007. 
SEC. 8. (a) Notwithstanding any other provision of law, the district 
courts of the United States shall have jurisdiction over any civil action 
under this Act, without regard to the citizenship of the parties or the 
amount in controversy. 
PUBLIC LAW 95-515—OCT. 25, 1978 
92 STAT, 1815 
(b) A civil action under this Act may be brought in any district 
court of the United States for a district located in the host State or 
the off-track State, and all process in any such civil action may be 
served in any judicial district of the United States. 
(c) The jurisdiction of the district courts of the United States pur-
suant to this section shall be concurrent with that of any State court 
of competent jurisdiction located in the host State or the off-track 
State. 
EFFECTIVE DATE; 
APPLICABILITY 
SEC. 9. (a) The provisions of this Act shall take effect on the date of 15 USC 3001 
enactment of this Act, and, except as provided in subsection (b) of "ot«-
this section, shall apply to any interstate off-track wager accepted on 
or after such date of enactment. 
(b) (1) The provisions of this Act shall not apply to any interstate 
off-track wager which is accepted pursuant to a contract existing on 
May 1,1978. 
(2) The provisions of this Act shall not apply to any form of legal 
non-parimutuel off-track betting existing in a State on May 1, 1978. 
(3) The provisions of subsection (b) of section 5 of this Act shall not 
apply to any parimutuel off-track betting system existing on May 1, 
1978, in a State which does not conduct parimutuel horseracing on 
the date of enactment of this Act. 
Approved October 25, 1978. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 95-1733 (Comm. on Interstate and Foreign Commerce). 
SENATE REPORTS: No. 95-554 (Comm. on Commerce, Science, and Transportation) 
and No. 95-1117 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 124 (1978): 
Sept. 26, considered and passed Senate. 
Oct. 10, H.R. 14089 considered and passed House; passage vacated, and S. 1185 
passed in lieu.