This bill amends the current law regarding the distribution of revenues generated from historic horse racing pari-mutuel pools. Specifically, it requires entities licensed to conduct historic horse race wagering to collect a sum equal to 25 percent of revenues generated after breakage and payment of winnings to patrons, which must then be paid to the lottery commission. The previous requirement for licensees to distribute 35 percent of the collected amount to charitable organizations has been removed, as indicated by the deletion of the relevant language.

The fiscal impact of this bill is significant, as it is projected to increase the revenue allocated to the Lottery Commission by approximately $12.5 million annually, starting in FY 2026. Under the current law, charitable organizations receive 8.75% of total revenue from historic horse racing, which amounted to over $12.5 million in FY 2024. With the proposed changes, this revenue will be redirected entirely to the Lottery Commission, thereby eliminating the funding for charitable organizations from this source. The bill is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 284:23