This bill amends the current law regarding the distribution of revenues generated from historic horse race wagering. 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 they must then pay 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 remaining 75 percent of the revenue will continue to be allocated to game operators.

The bill is set to take effect on July 1, 2025, and is expected to significantly impact state revenue. Under the current law, charitable organizations receive 8.75 percent of total revenue from historic horse racing, which amounted to approximately $12.5 million in FY 2024. With the proposed changes, this revenue will instead be directed to the Lottery Commission, effectively increasing its share of historic horse racing revenue to 25 percent. This change is projected to generate an additional $12.5 million annually for the Lottery Fund and the Education Trust Fund.

Statutes affected:
Introduced: 284:23