23.0500.01000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1331
of North Dakota
Introduced by
Representatives Cory, Dockter, Headland
Senator Kreun
1 A BILL for an Act to amend and reenact sections 53-06.2-01, 53-06.2-10.1, and 53-06.2-11 of
2 the North Dakota Century Code, relating to the racing commission, account deposit wagering,
3 and bet payoff formulas.
4 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
5 SECTION 1. AMENDMENT. Section 53-06.2-01 of the North Dakota Century Code is
6 amended and reenacted as follows:
7 53-06.2-01. Definitions.
8 As used in this chapter:
9 1. "Account deposit wagering" means a form of gambling in which the bettor shall fund
10 the bettor's account before being allowed to place bets.
11 2. "Breeders' fund" means a fund, administered by the commission, established to
12 financially reward breeders or owners of North Dakota-bred horses to be paid in
13 accordance with rules as approved by the commission.
14 2.3. "Certificate system" means the system of betting described in section 53-06.2-10.
15 3.4. "Charitable organization" means a nonprofit organization operated for the relief of
16 poverty, distress, or other conditions of public concern in this state and has been so
17 engaged in this state for at least two years.
18 4.5. "Civic and service club" means a branch, lodge, or chapter of a nonprofit national or
19 state organization that is authorized by its written constitution, charter, articles of
20 incorporation, or bylaws to engage in a civic or service purpose in this state and has
21 so existed in this state for at least two years. The term includes a similar local
22 nonprofit organization, not affiliated with a state or national organization, which is so
23 recognized by a resolution adopted by the governing body of the local jurisdiction in
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1 which the organization conducts its principal activities, and which has existed in this
2 state for at least two years.
3 5.6. "Commission" means the North Dakota racing commission.
4 6.7. "Executive director" means the executive director of the commission.
5 7.8. "Fraternal organization" means a nonprofit organization in this state, which is a
6 branch, lodge, or chapter of a national or state organization and exists for the common
7 business, brotherhood, or other interests of its members, and has so existed in this
8 state for two years. The term does not include a college or high school fraternity.
9 8.9. "Local jurisdiction" means, with respect to a site inside the city limits of a city, that city,
10 and with respect to a site not inside the city limits of a city, the county in which the site
11 is located.
12 9.10. "Other public-spirited organization" means a nonprofit organization recognized by the
13 governing body of the appropriate local jurisdiction by resolution as public-spirited and
14 eligible under this chapter.
15 10.11. "Purse fund" means a fund, administered by the commission, established to
16 supplement and improve purses offered at racetracks within the state.
17 11.12. "Racing" means live or simulcast horse racing under the certificate system or
18 simulcast dog racing under the certificate systemracing in accordance with this
19 chapter.
20 12.13. "Racing promotion fund" means a fund administered by the commission established to
21 assist in improving and upgrading racetracks in the state, promoting horse racing in
22 the state, and developing new racetracks in the state as necessary and approved by
23 the commission.
24 13.14. "Religious organization" means a nonprofit organization, church, body of
25 communicants, or group gathered in common membership for mutual support and
26 edification in piety, worship, and religious observances, and which has been so
27 gathered or united in this state for at least two years.
28 14.15. "Veterans' organization" means a congressionally chartered organization in this state,
29 or a branch, lodge, or chapter of a nonprofit national or state organization in this state,
30 the membership of which consists of individuals who were members of the armed
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1 services or forces of the United States, and which has so been in existence in this
2 state for at least two years.
3 SECTION 2. AMENDMENT. Section 53-06.2-10.1 of the North Dakota Century Code is
4 amended and reenacted as follows:
5 53-06.2-10.1. Simulcast wagering.
6 In addition to racing under the certificate system, as authorized by this chapter, and
7 conducted upon the premises of a racetrack, simulcast pari-mutuel and account deposit
8 wagering may be conducted in accordance with this chapter or rules adopted by the
9 commission under this chapter in accordance with chapter 28-32. AnyAn organization qualified
10 under section 53-06.2-06 to conduct racing may make written applicationapply to the
11 commission for the conduct of simulcast pari-mutuel and account deposit wagering on races
12 held at licensed racetracks inside the state or racetracks outside the state, or both. Licensure of
13 service providers, totalizator companies, site operators, or organizations applying to conduct or
14 conducting simulcast or account deposit wagering must be approved by the attorney general.
15 The attorney general may not grant a license denied by the commission. Notwithstanding any
16 other provision of this chapter, the commission may authorize any licensee to participate in
17 interstate or international combined wagering pools with one or more other racing jurisdictions.
18 Anytime that a licensee participates in an interstate or international combined pool, the licensee,
19 as prescribed by the commission, may adopt the take-out of the host jurisdiction or facility. The
20 commission may permit a licensee to use one or more of its races or simulcast programs for an
21 interstate or international combined wagering pool at locations outside its jurisdiction and may
22 allow pari-mutuel pools in other states to be combined with pari-mutuel pools in its jurisdiction
23 for the purpose of establishing an interstate or international combined wagering pool. The
24 participation by a licensee in a combined interstate or international wagering pool does not
25 cause that licensee to be considered to be doing business in any jurisdiction other than the
26 jurisdiction in which the licensee is physically located. Pari-mutuel taxes or commissions may
27 not be imposed on any amounts wagered in an interstate or international combined wagering
28 pool other than amounts wagered within this jurisdiction. The certificate system also permits
29 pari-mutuel wagering to be conducted through account deposit wagering. As used in this
30 section, "account wagering" means a form of pari-mutuel wagering in which an individual
31 deposits money in an account and uses the account balance to pay for pari-mutuel wagers. An
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1 account deposit wager made on an account established in this state may only be made only
2 through the licensed simulcast service provider approved by the attorney general and
3 authorized by the commission to operate the simulcast pari-mutuel wagering system under the
4 certificate system. The attorney general may not grant a license denied by the commission. An
5 account deposit wager may be made in person, by direct telephone communication, or through
6 other electronic communication in accordance with rules adopted by the commission. Breakage
7 for interstate or international combined wagering pools must be calculated in accordance with
8 the statutes or rules of the host jurisdiction and must be distributed among the participating
9 jurisdictions in a manner agreed to among the jurisdictions.
10 SECTION 3. AMENDMENT. Section 53-06.2-11 of the North Dakota Century Code is
11 amended and reenacted as follows:
12 53-06.2-11. Bet payoff formulas - Uses by licensee of funds in excess of expenses -
13 Payment to general fund.
14 1. For wagering on live horse racing:
15 a. In win, place, and show pari-mutuel pools, the licensee may deduct no more than
16 twenty percent of the amount wagered. Of the amount wagered, the licensee
17 shall pay:
18 (1) One-half of one percent to the state treasurer to be deposited in the general
19 fund.
20 (2) One-half of one percent to the commission to be deposited in the breeders'
21 fund.
22 (3) One-half of one percent to the commission to be deposited in the purse
23 fund.
24 (4) One-half of one percent to the commission to be deposited in the racing
25 promotion fund.
26 b. In daily double, quinella, exacta, trifecta, or other combination pari-mutuel pools,
27 the licensee may deduct no more than twenty-five percent of the amount
28 wagered. Of the amount wagered, the licensee shall pay:
29 (1) One-half of one percent to the state treasurer to be deposited in the general
30 fund.
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1 (2) One-half of one percent to the commission to be deposited in the breeders'
2 fund.
3 (3) One-half of one percent to the commission to be deposited in the purse
4 fund.
5 (4) One-half of one percent to the commission to be deposited in the racing
6 promotion fund.
7 2. For simulcast and account deposit wagering:
8 a. In win, place, and show pari-mutuel pools, the licensee may deduct no more than
9 twenty percent of the amount wagered. Except as limited in subdivision c, of the
10 amount wagered by simulcast and account deposit wagering in win, place, and
11 show pari-mutuel pools, the licensee shall pay:
12 (1) One-sixteenth of one percent to the state treasurer to be deposited in the
13 general fund.
14 (2) One-sixteenth of one percent to the commission to be deposited in the
15 breeders' fund.
16 (3) One-sixteenth of one percent to the commission to be deposited in the
17 purse fund.
18 (4) One-sixteenthOne-eighth of one percent to the commission to be deposited
19 in the racing promotion fund.
20 b. Except as limited in subdivision c, of the amount wagered by simulcast and
21 account deposit wagering in daily double, quinella, exacta, trifecta, or other
22 combination pari-mutuel pools, the licensee shall pay:
23 (1) One-sixteenth of one percent to the state treasurer to be deposited in the
24 general fund.
25 (2) One-sixteenth of one percent to the commission to be deposited in the
26 breeders' fund.
27 (3) One-sixteenth of one percent to the commission to be deposited in the
28 purse fund.
29 (4) One-sixteenthOne-eighth of one percent to the commission to be deposited
30 in the racing promotion fund.
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1 c. For the fiscal year commencing July 1, 20132023, the licensee may not pay more
2 than fourfive hundred thousand dollars. For the fiscal year commencing July 1,
3 20142024, and thereafter, the licensee may not pay more than fourfive hundred
4 twenty thousand dollars.
5 3. For all pari-mutuel wagering the licensee shall pay to the commission the amount due
6 for all unclaimed tickets and all breakage on the first twenty million dollars wagered in
7 each fiscal year with each service provider. The amount received must be deposited in
8 the racing promotion fund.
9 4. The licensee conducting wagering on live racing, simulcast wagering, or account
10 deposit wagering shall retain all other money in the pari-mutuel pool and pay it to
11 bettors holding winning tickets as provided by rules adopted by the commission.
12 5. A licensee may not use any of the portion deducted for expenses under subsections 1
13 and 2 for expenses not directly incurred by the licensee in conducting pari-mutuel
14 racing under the certificate system. After paying qualifying expenses, the licensee
15 shall use the remainder of the amount so withheld only for eligible uses allowed to
16 charitable gambling organizations under section 53-06.1-11.1.
17 6. The commission shall deposit the moneys received pursuant to subsections 1, 2, and
18 3 and from the North Dakota horse racing foundation pursuant to subsection 5 of
19 section 53-06.2-05 in the breeders' fund, the purse fund, and the racing promotion
20 fund. Moneys, and any earnings on the moneys, in the breeders' fund, purse fund, and
21 racing promotion fund are appropriated to the commission on a continuing basis to
22 carry out the purposes of those funds under this chapter and must be administered
23 and disbursed in accordance with rules adopted by the commission. The commission
24 may not transfer money among the funds. The commission shall distribute in-state
25 awards and payment supplements from the breeders' fund in the same calendar year
26 the money was earned by the recipient. The commission shall distribute out-of-state
27 awards and payment supplements from the breeders' fund, if made available by the
28 commission, within two months of the end of the calendar year the money was earned
29 by the recipient. The commission shall distribute payments awarded to qualified
30 owners and breeders from the breeders' fund without requiring owners and breeders
31 to apply for the payments. The commission may receive twenty-five thousand dollars
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1 per year or twenty-fivethirty-five percent per year, whichever is greater, from the racing
2 promotion fund for the payment of the commission's operating expenses.
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Statutes affected: INTRODUCED: 53-06.2-01, 53-06.2-10.1, 53-06.2-11