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. It is projected that the lottery commission will receive an additional approximately $12.5 million annually from historic horse racing revenues, as the previous allocation to charitable organizations (which was 8.75% of total revenue) will now be redirected to the lottery commission. This change is anticipated to enhance funding for the lottery fund and the state education trust fund, while game operators will maintain their share of 75 percent of the revenue.

Statutes affected:
Introduced: 284:23