Study Guide Pg 12-23 Flashcards
A department representative shall close wagering for each contest after which time no Pari- mutuel tickets shall be sold for that contest. AAC R-19-2-515(A) Closing of wagering in a contest
Dept rep’s close wagering at post time (or if cancelled) and no further betting is allowed once closed.
Horse officials - The permittee shall retain the balance of the total amounts deducted pursuant to subsection C of this section. Of the amount retained by the permitee, MINUS the amount payable to the permittee for capital improvements pursuant to section 5-111.02 - breakage distributed to the permittee pursuant to section 5-111.01 and other applicable state, country and city tranaction privelage or other taxes, unless otherwise agreed by written contract. 50 % shall be used for purses.
ARS 5-111(D)
50% of the net amount left over after taxes, improvments, breakage etc shall be put aside for purses
The permittee may at the permittees descretion, pay additional amounts to augment purses from the amounts received by the permittee under this subsections
ARS 5-111(B)
TGP can pay more towards the purse than required if they want to
The Racetrack permittee shall ensure that amounts wagered, in total for the other pools and on each betting interest or wager combination are displayed to the wagering public at intervals and in a manner approved by the dept. AAC R-19-2-509(B) Display of betting info
Amounts wagered in a pool need to be displayed to the public as well.
Monies from charity racing days are exempt from the state percentage of the pari-mutuel pool prescribed in this section.
ARS 5-111(F)
Wagering percentage
Charity races don’t hav eto pay tax
Define profit per dollar
Total profit divided by total net bet on winner
PP / winnig dollars = Unbroken price
Define Net pool
Gross pool minus take out
Gross pool - Commission = Net pool
Horse officials - The breakage deducted by a horse racing or harness racing permittee shall be distributed as follows:
- 50% shall be retained by permitee
- 25% shall be set aside by permittee to put into purse trust
- 25% shall be set aside to supplement purses in races in which AZ bred horses are winners.
ARS 5-111.01(B)
he breakage deducted by a horse racing or harness racing permittee shall be distributed as follows:
- 50% shall be retained by permitee
- 25% shall be set aside by permittee to put into purse trust
- 25% shall be set aside to supplement purses in races in which AZ bred horses are winners.
A racetrack permittee shall ensure that odds or will-pay amounts for win pool betting are posted on display devices w/in view of the wagering public and updated at intervals of not more than 90 seconds. AAC R-19-2-509(A) Display of betting info
Odds must be displayed where the public can see and updated at least every 90 seconds
Unless the dept otherwise provides, at the time the pools are opened for wagering, the racetrack permitee:
AAC R-19-2-513(A)
Pools dependent upon betting interests
Betting interest = Animal (dog/horse)
Permittee shall offer:
- Win wagering on all contests w/3 or more betting interests and may offer it w/2 or more betting interests
- Place wagering on all cotests w/4 or more betting interests and may offer it w/3 or more
- Show wagering on all contests w/5 or more betting interests but can offer it w4 or more
Permittee MAY offer:
- Quinella/ Quinella double/ Twin quinella wagering on all contestes w/3 or more betting interests
- Exacta wagering on all contestests w/2 or more betting interests
- Trifecta wagering on all contests w/3 or more betting interests
- Superfecta wagering on all contests w/4 or more betting interests
- Pick-N wagering on any consecutive contests that allow win wagering
- Place Pick-N wagering on any consecutive contests that allow place wagering
Permitee shall NOT offer:
- 1st or 2nd leg Twin Tri-superfecta wagering onany contests w/6 or fewer betting interests in either leg of the wager
Permittee may PROHIBIT
- Wagering on any particular contestant in stakes races if such exclusions are clearly indicated in the program.
What circumstance would cause a profit split pool to become a single price pool
If there was not money bet in one of the pools it would become a single price pool.
Before each racing meet, the racetrack permittee shall establish and submit to the department the pools to be offereed with each number of betting interests
AAC R-19-2-513(B)
Before the race starts, TGP (permittee) would provide the dept w/ how many animals will be running each race
Define Gross pool
Sum of wagers on all betting interests munus refunds
Bets - refunds = Gross pool
Dog officials: In all counties having a populations of 1,500,000 or more 4.75% of the gross amount of monies handled in a pari-mutuel pool shall be deducted from the pari-mutuel pool and shall be deposted daily into a trust account for payment of purse amounts.
ARS 5-111(B)
4.75% of the pool needs to go into a trust account so we have enough to pay out purses as needed.
A permittee that desires to offer new forms of wagering must apply in writing to the department and receive written approval prior to implementing the new betting pool. AAC R-19-2-514(A)
TGP (permittee) has to submit in writting to the dept in advance if they want to offer new types of bettng and get written approval back prior to allowing the new betting types to be offered.
Notwithstanding any other provision of this subsection, the percentage paid by a permittee to the state does not apply to monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races.
ARS 5-111(B)
Wagering percentage
If somone in AZ bets on a race in NJ- TGP does not have to pay tax to AZ - the racetrack in NJ would include those amounts in THEIR amount that is taxable to the state.
The mutuel manager shall provide upon request, complete and detailed reports of each race day; including the handle of each race, the total handle and attendance, the payoffs on each race, breakage and commission, opening and closing lines, and seller’s shortages and overages
AAC r-19-2-519(C)
Mutuel Manager
If the department asks mutual manager must provide the handle (net) of each race and the total handle for the day, as well as attendance, payroffs, breakages, commission, opening and closing lines, seller’s shorts and overs.
Horse officials - Unless otherwise agreed by written contract, 50% of the revenues received by the permittee from simulcasting races as provided in section 5-112, net of costs of advertising, shall be utilized as a supplement to the general purse structure.
ARS 5-111(D)
50% of simulcast revenues (minus cost of advertising) shall be set aside for Purses.
What circumstance would cause a single-price pool to become a profit split pool and why
A dead-heat (tie) would cause the profits to be split between the winning dogs
Dog officials: To encourage the improvement of racing facilities for the benefit of the public and dog owners, and ot increase the revenue to this state from the increase in pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee to the state purusuant to section 5-111(B) in connection with all racing meetings conducted by such permittee shall be reduced by 1% of the total amount wagered in connection with all racing meetings conduced in counties having a population of 500,000 persons or more according to the most recent US census and by 2% of the total amount wagered in connection with all racing meetings conducted in all other counties for those permittess who qualify for such reduction as provided in this section, and such amount shall be retained by those permittees.
ARS 5-111.03
Capital improvements at dog tracks
You get a tax break when you do renovations.
In addition 25% of any reduction in pari-mutuel taxes each year resulting from the application of the hardship tax reduction credit determined pursuant to subsection I of this section shall be deposited in the trust account for supplementing purse amounts in an equitable manner over the racing meeting as determined by the commission.
ARS 5-111(B)
If you get the hardship tax credit- 25% of what you are SAVING needs to go into the trust to pay out purses.
Define breakage
ARS 5-111.01
Breakages definition tax disposition
The odd cents by which the amount payable on each dollar wagered in a pari-mutuel pool exceeds a multiple of ten cents, except that in the case of minus pools breakage means the odd cents by which the amount payable exceeds multiple of 5 cents. A person liscensed under this chapter to conduct a racing meeting shall deduct the breakage from the pari-mutuel pool and such amounts shall be distributed as provided by law.
When does TGP Cancel the pool?
AAC R-19-2-511 (A)(2)
Superfecta - 4 or fewer runners in race
Trifecta - 2 or fewer runners in race
Exacta - 1 or fewer runners in race
Quinella - 2 or fewer runners in race
Twin Trifecta - 2 or fewer runners in race
Trifecta-Super - 2 or fewer runners in race
Twin Quinella - 3 or fewer runners in the race
Pick - N - 1 or fewer runners in the race
Show pool - 3 or fewer runners in the race
Place pool - 2 or fewer runners in the race
Cancels ALL if there are 1 or fewer runners in the race.
In counties having a population of less than 1,500,000 persons - 4% of the gross amount of monies handled in a pari-mutuel pool shall be deducted and placed daily in a trust for payment of purses
ARS 5-111(B)
4% of the pool needs to go into a trust account so we have enough to pay out purses as needed.
The permittee’s pari-mutuel tax due as otherwise determined under subsection B and D of this section shall be reduced for the current period and any future periods by an amount equal to the amount of the harship tax credit determined pursuant to this subsection. The hardship tax credit is in addition to any other tax exemptions, rebates and credits.
ARS 5-111(I)(3)
Wagering percentage
You pay less tax if you qualify for the hardship tax credit.
What is TGP’s Backup mechanism and procedure if the steward’s lock fails .
AAC R-19-2-515(B)
The tote room will lock the totes, if stewards lock continues to fail or the tote room lock also fails - racing would be cancelled for the night so repairs can be made.
Horse Officials: The amounts if deducted shall be distributed as prescribed in subsection D of this section and section 5-111.02 for horse or harness racing permittees
ARS 5-111C
Wagering percentage
Amounts deducted should be distributed as outlied in 5-111D
The mutuel manager shall be responsible for the correctness of all payoff prices posted on the odds board, subject to the limitations of nonfraudulent human and mechanical errors. In the event that a payoff is both incorrectly posted and paid, the mutuel manager shall file with the dept. a complete report explaining the circumastances prior to the next racing day.
AAC R-19-2-519(A)
We are in charge of making sure all payoffs are correct, barring human and mech error- if it is not correct we need to file a report to the dept by the next day.
Dog officials: For dog racing permittees, unless otherwise agreed by written contract, the permitteee shall allocate to purses from amounts that are deducted pusuant to the subsection in excess of 20% of the total amount handled in the regular pari-mutuel pools, 21% of the total amount handled in the exacta, daily double, quinella and other wagering pools involving 2 dogs - or 25% of the total amount handled in the trifecta or other waging pools involving more than 2 dogs in one or more races
ARS 5-111(C)
Wagering percentage
TGP takes out 21.85% in commission so 1.85% would be the “excess”
TGP gets 20.925% and the purse = .925% (half of 1.85)
this is based on all races conducted that night.
Unbroken price
Profit per dollar whole number to 1st decimal
(0. 0)0000000 = unbroken price
(0. 0)= broken price
_._00000000 = breakage
Unless otherwise agreed by written contract - if the commission reasonably determines that live racing will not be conducted w/in one calendar year at a racetrack enclosure - the permittee shall deduct from monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races and deposit daily in a trust account to supplement purses of any dog track where live racing is conducted w/in a 100 mile radius.
ARS 5-111(B)
Unless otherwise agreed- If track A knows they won’t run races in the next yet- but track B is w/in 100 mile radius- and track A is simulcasting- a portion of the monies paid into the pool at track A will have to go into the trust for Track B to pay out their purses.
Define commission
The AZ racing commission
All permittess and liscensees subject to the financial audit as prescribed by this secion shall afford resonable and needed facilities and make returns and exhibits to the department or audit firm in the form and at the time prescribed by the department. The auditor representing the department shall have access to all info, records, pari-mutuel betting devices and equipment necessary to conduct electronic data processing and other audits and reviews. The computer software and other proprietary info and records obtained by the auditor are not subject to disclosure and are exempt from title 39 chapter 1
ARS 5-104.01
Audits and special investigations
TGP can get a financial audit at any time- auditor can access all information/facilities and don’t have to tell TGP what they will be looking at or why.
Define pool adjustment
An adjustment made to numbers that can be proven
In the event of an emergency in connection with the pari-mutuel dept not covered in these rules, the mutuel manager representing the permittee shall report the problem to the stewards and the permitee, and the stewards shall render a full report to the dept w/in 48 hours.
AAC R-19-2-519(A)
If there is an emergancy not listed / w/o specific instructions in the AAC - then the mutual dept will work with the stewards and the permitee to put together a full report and submit it to the dept w/in 48 hours.
Define settlement
Amounts coming in/out to pay winning tickets
The permittee may suspend previously approved forms of wagering with the prior approval of the department. Any carryover shall be held until the suspended form of wagering is reinstated. A permittee may request approval of a form of wagering or separate wagering pool for specific performances.
AAC R-19-2-514(B) Prior approval required for betting pools
A permitee (TGP) can stop offering forms of wagering even if approved by the dept previously. Any carryover shall be held until the stopped form of wagering is reestablished.
TGP can also request approval of a form of wagering or seperate wagering pool for specific perfomances.
Horse officials- During the period of a permit for horse or harness racing - the state shall recieve 2% of the gross amount of the first 1 million dollars sof the daily pari-mutuel pools and 5% of the gross amount exceeding 1 million dollars of the daily pari-mutuel pools
ARS 5-111(D)
On the first 1 million dollars state gets 2% in taxes (20,000)
Anything above that = 5% to the state
The permittee shall allocate the funds in the trust account and pay purse amounts at least biweekly
ARS 5-111(B)
Purse amounts should be paid out at least bi-weeky from the trust account.
What is TGP’s commission percentage for live wagering pools?
Win, Place, Show - 21.85% (0.2185)
Daily double, Quinella, Exacta, Perfecta - 22.85% (0.2285)
Trifecta, superfecta, pick-N, Twin-Tri, Tri-super, Big Q(twin quinella) - 25.85% (0.2585)
Define return to public
Amount of money returned to public after breakage of whole pool (amount given to winners).
What is a single pool price?
Pools where prices don’t have to be split amoung other pools
Win pool
Daily double
Notwithstanding other provisions of these rules, refunds of the entire pool shall be made on: 1. Win pools, Exacta pools, and first-half double pools, offered in contests in which the number of betting interests has been reduced to fewer than 2.
- Place pools, Quinella pools, Trifecta Pools, First-half Quinella Double pools, first-half Twin Quinella pools, first- half Trifecta pools, and first-half tri-superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 3
- Show pools, superfecta pools, and first-half twin superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 4 AAC R-19-2-511 (A)(1-3)
Refunds on entire pool are made when:
Win pools, Exacta pools, and first-half double pools, offered in contests in which the number of betting interests has been reduced to fewer than 2.
Place pools, Quinella pools, Trifecta Pools, First-half Quinella Double pools, first-half Twin Quinella pools, first- half Trifecta pools, and first-half tri-superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 3
or
Show pools, superfecta pools, and first-half twin superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 4 AAC R-19-2-511 (A)(1-3)
Dog officials: if three or more greyhounds are withdrawn or scratched in any one race the stewards may cancel said race. AAC R-19-2-317(E)(d) Rules of the race
If three or more dogs don’t run (withdrawn/scratched) then stewards may decide to cancel the race
Explain what is meant by a profit-split pool
Profits split between 2 or more pools
Place pool
Show pool
Official results and payoffs must be displayed upon each contest being declared official. AAC R-19-2-509(C)
Results of races - once made official - need to be displayed to the public as soon as it is declared official.
During the period of a permit for horse, harness or dog racing, the permittee which conducts such meeting may deduct up to and including 25% of the total amount handled in the regular pari-mutuel pools and may, at the permittee’s option, deduct up to and including 30% of the total amount handled in the exacta, daily double, quinella and other wagering pools involving 2 horses or dogs, and up to and including 35% of the total amount handled in the trifecta or other wagering pools involving more than 2 horses or dog in one or more races
ARS 5-111(C)
Wagering percentage
Commission rates can be up to 25% -30 % for exacta daily double or quinella and other pools w/ 2 horses or dogs
35% for trifecta or other pools involving 2 or more horses and dogs
Dog officials: During the period of any permit for dog racing in any county, the state shall receive 5.5% of all monies handled in the pari-mutuel pool operated by the permittee, to be paid daily during the racing meeting.
ARS 5-111(B)
Wagering percentage
5.5% of all pools go to the state in tax and need to be paid daily.
Define Handle
Total amount of money contributed to all pari-mutuel pools by bettors.
During a week in which a permittee conducts live racing at the permittee’s raetrack enclosure, the permittee shall deduct from monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races and deposit daily in a trust account for the payment of purse amounts the same percentage of the pari-mutuel pool as is deducted for purses for live races unless otherwise agreed by written contract.
ARS 5-111(B)
If TGP deducts 5% for the purse trust on their live races, they need to also deduct 5% for the purse trust on their simulcast race bets.
Horse officials: All amounts which are deducted from the pari-mutuel pool for purses pursuant to this section and sections 5-111.01 and 5-114 and revenues which are received from sumulcasting and which are to be used as a supplement to the general purse structure pursuant to this subsection shall be deposited daily into a trust account for the payment of purse amounts.
ARS 5-111(D)
All amounts held aside for purses should be put into a trust account daily for that purpose.
The breakage deducted by a dog racing permittee shall be retained by the dog racing permitee
ARS 5-111.01
Breakage
We keep breakage amounts
Horse Officials: All county fair racing meetings, whether conducted by county fair racing associations under the provision of this subsection or by an indivudal, corporation or association other than a county fair racing association, are exempt from the payment to the state of the percentage of the pari-mutuel pool presciebed by subsection D of this section and are also exempt from the provisions of section 5-111.01
ARS 5-111(E)
County Fair races don’t have to pay the 2% tax on pools
Dog Officials: For dog racing permittees the percentages perscribed in subsection B of this section shall be distributed to the state and to the trust account for payment of purse amounts and the permittee shall receive the balance. If the dog racing permittee has made capital improvements, the distribution to the state shall be adjusted as provided in section 5-111.03. monies deposited in the trust account for payment of purses pursuant to thes subsection shall be in addition to amounts deposited pursuant to subsection B of this section
ARS 5-111(C)
Wagering percentage
ddd
Define profit pool
Net pool Minus totel net bet on winner
Net pool - winning dollars = profit pool
Horse officials: To encourage the improvement of racing facilities for the benefit of the public, breeders, and horse owners, and to increase the revenue to the state from the increase in pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee to the state as provided in section 5-111 (D) shall be reduced by 1% of th etotal amount wagerd in connection with all racing meetings conducted in counties have a poplulation of 500,000 persons or more, according to the most recent USA decennial census, and by 2% of the total amount wagered in connection with all racing meetings conducted in all other counties for those permittees who make capital improvements to racetracks and such amount shall be retained by the permittees making such capital improvements.
ARS 5-111.02
Capital imporvements at horse tracks
You get a tax break if you are upgrading/improving your race track.
