ARTICLE 23. HORSE AND
DOG RACING.
§19-23-12e. Licensing
of advance deposit wagering.
(a) As used in this
section:
(1) “Account” means an
advance deposit wagering account or ADW account owned by an account holder and
managed by an ADW licensee that the Racing Commission has determined will
maintain a specific identifiable record of account deposits, wagers, credits,
debits and withdrawals and protect the account holder's confidential
information.
(2) “Account holder”
means an individual, at least 18 years of age who applies for, and successfully
opens an account with an ADW licensee, including all resident account holders.
(3) “Advance deposit
account wagering,” or “ADW,” means a method of pari-mutuel wagering that is
permissible under the Interstate Horseracing Act, 15 U.S.C. §3001, et seq.,
in which an individual may establish an account with a person or entity,
licensed by the Racing Commission, to place pari-mutuel wagers on horse racing
with the ADW licensee via electronic media or by telephone, but not including
account wagering conducted through a licensee under subsection (a), section
nine of this article, and the Racing Commission's rules thereunder with respect
to wagering conducted pursuant to Racing Commission Rule §178-5-5.
(4) “Advance deposit
wagering licensee” or “ADW licensee” means an entity licensed by the Racing
Commission to conduct advance deposit account wagering that accepts deposits
and wagers, issues a receipt or other confirmation to the account holder
evidencing the deposits and wagers and transfers credits and debits to and from
an account.
(5) “Confidential
information” means: (A) The amount of money credited to, debited from,
withdrawn from, or present in an account; (B) the amount of money wagered by an
account holder on any race or series or races, or the identities of racing
associations on which the account holder is wagering or has wagered; (C) the account
number and secure personal identification information of an account holder; and
(D) unless authorized by the account holder, the name, address, or other
information that would identify the account holder to any person or entity
other than the Racing Commission or the ADW licensee that manages the account.
(6) “Electronic media”
means any electronic communication device or combination of devices including,
but not limited to, personal computers, the Internet, private networks,
interactive televisions and wireless communication technologies or other
technologies approved by the Racing Commission.
(7) “Licensee” means any
horse racing association holding a license as defined by §19-23-3 of this code;
(8) “Located” means, in
regard to a resident account holder, where his or her principal residence is
located.
(9) “Principal residence”
means the street address identified by a resident account holder as that
individual’s residential address, as the address may be verified by the ADW
licensee to the satisfaction of the Racing Commission.
(10) “Resident” is an
individual who: (A) Is domiciled in West Virginia; (B) maintains a place of
abode and spends at least 183 days within a calendar year in West Virginia; or
(C) lists an address in West Virginia as his or her principal residence when
opening an account.
(11) “Source market fee”
means a fee that must be paid by the ADW licensee, which shall be six percent
of total ADW handle, excluding refunds and cancellations wagered by ADW
licensee under this section, payable on a monthly basis to the West Virginia
Racing Commission and distributed as follows:
(A) All source market
fees derived from wagers of account holders not located in a zip code within 50
miles of any licensee, shall be prorated by dividing each racing licensee's
total handle by the total handle of all West Virginia licensees in the prior
calendar year, and distributed as follows:
(i) Ten percent of each
licensee’s prorated amount to the West Virginia Thoroughbred Development Fund;
(ii) Forty-five percent
to the Purse Fund of each prorated licensee; and
(iii) Forty-five percent
to each prorated licensee.
(B) Unless otherwise
agreed between a racing association licensee and an organization of owners and
trainers of permit holders pursuant to the terms of the Interstate Horseracing
Act of 1978, 15 U.S.C. §3004(a)(1), all source market fees derived from wagers
of account holders located in a zip code within 50 miles of a particular
licensee, that is licensed to conduct live racing, shall be distributed as
follows:
(i) Ten percent to the
West Virginia Thoroughbred Development Fund established in §19-23-13b of this
code;
(ii) Forty-five percent
to the Purse Fund of the licensee; and
(iii) Forty-five percent
to the licensee.
(C) Unless otherwise
agreed between a racing association licensee and an organization of owners and
trainers of permit holders pursuant to the terms of the Interstate Horseracing
Act of 1978, 15 U.S.C. §3004(a)(1), all source market fees derived from wagers
of account holders who were, when wagering, located in an overlapping area
located within a zip code within 50 miles of two or more licensees, that are
licensed to conduct live racing, shall be prorated between the licensees by
dividing each licensee’s total handle by the total handle of all licensees
within a 50 mile radius of the area where the wagering account holder was
located, and once prorated, distributed in accordance with subparagraphs (ii)
and (iii), paragraph (B) of this subdivision, with 10 percent of each
licensee's prorated amount distributed to the West Virginia Thoroughbred
Development Fund
(D) The Racing
Commission shall determine, and shall make available to all licensed ADW
licensees, a list of all zip codes applicable in paragraphs (B) and (C) of this
subdivision. If a portion of a zip code is within the 50 mile radius pursuant
to this section, the entire zip code shall be considered for all calculations and
payments under this section. The Racing Commission shall prescribe the manner of
reporting by ADW licensees to comply with paragraphs (A), (B) and (C) of this
subdivision.
(12) “Total handle”
means the total annual dollar sales amount of all pari-mutuel wagering on horse
races conducted at, or generated from imports or exports of simulcast horse
races to or from, a licensee, including all moneys from wagering conducted
under §19-23-9 §19-23-12a, §19-23-12b, and §19-23-12c of this code, but
excluding refunds and cancellations, as reported to the Racing Commission,
excluding advance deposit wagering under this section.
(b) The advance deposit
account wagers placed by account holders with an ADW licensee licensed by the
Racing Commission in accordance with this section are authorized and the
provisions of §61-10-1 of this code relating to gaming do not apply to advance
deposit account wagering conducted in accordance with this section.
(c) The Racing
Commission is vested with jurisdiction over any person or entity that solicits
account holders or offers advance deposit wagering in West Virginia. Any person
or entity under the jurisdiction of the Racing Commission shall be licensed and
the Racing Commission may impose a nonrefundable initial and annual renewal
licensing application fee not to exceed $5,000. Further, the Racing Commission
may require any applicant for an initial or renewal ADW license to bear the
costs involved in conducting background checks and reviews, unless the
applicant is an entity affiliated with a licensee.
(d) No person or entity
may conduct advance deposit wagering in West Virginia unless the person or
entity has applied for and been granted an ADW license by the Racing
Commission. The commission shall also ensure that, except for advance deposit
wagering authorized in this section, all pari-mutuel wagering on racing is
conducted within the confines of a licensee's racetrack or licensed contiguous
hotel, as permitted under §19-23-9(a) and §19-23-12a(1) of this code and
implementing rules thereunder, including Racing Commission Rule §178-5-5, or
within an authorized gaming facility in a historic resort hotel, as permitted
under §19-23-12d of this code and implementing rules thereunder.
Any person who accepts
an advance deposit wager who is not licensed as an advance deposit wagering
licensee by the Racing Commission is guilty of a felony and, upon conviction
thereof, shall be fined not more than $50,000 or imprisoned in a state
correctional facility not more than five years, or both fined and imprisoned.
Further, the court shall order any convicted person to pay restitution to
recover all amounts that would have been payable to the Racing Commission under
this section.
The Racing Commission
may seek injunctive relief against any person who accepts or attempts to accept
an advance deposit wager without a license issued by the commission. The Racing
Commission may also seek recovery of all amounts that would have been payable
to the Racing Commission under this section, damages equal to three times the
amount of recovery, and reasonable costs and attorney fees. Damages recovered
by the Racing Commission shall be distributed as source market fees under this
section.
(e) In addition to §19-23-11(a)
of this code, there is assessed a regulatory fee of one percent of total ADW
handle, excluding refunds and cancellations wagered by ADW licensee under this
section, payable monthly to the Racing Commission’s general administrative
account.
(f) Advance deposit
wagers placed by residents are considered to be wagering conducted in this
state and subject to the laws of this state and the rules of the Racing
Commission. The Racing Commission shall promulgate rules establishing standards
for ADW licensees.
(g) The Racing
Commission may propose rules for legislative approval, pursuant to §29A-3-1 et
seq. of this code to implement this section and may propose emergency rules
to provide conditions for the licensing of advance deposit wagering. Those
rules are to include, but are not limited to: (1) Standards, qualifications and
procedures for the issuance of an advance deposit wagering license in West
Virginia; (2) rules establishing initial and renewal license fees and payment
of same to the Racing Commission to cover the costs of licensing ADW licensees;
(3) provisions regarding access to books and records and submission to
investigations and audits by the Racing Commission; (4) provisions regarding
the collection and distribution of those fees; (5) standards and procedures for
opening, maintaining, operating and securing ADW accounts, as well as
protecting confidential information therein; and (6) any other conditions to
ensure an orderly process of accepting ADW wagers in acting in the best
interests of the West Virginia racing industry.
NOTE: The purpose of this bill is
to provide a mechanism to allow licensing of advance deposit wagering.
Strike-throughs indicate language
that would be stricken from a heading or the present law and underscoring
indicates new language that would be added.
WEST virginia legislature