Arizona Senate Votes To End Dog Racing

The Arizona Senate on Thursday voted to bring an end to dog racing. Rep. J.D. Mesnard’s bill would force the closure of Tucson Greyhound Park, in South Tucson.

The bill would prohibit live dog racing in Arizona after December 31, 2016.

The bill was backed by the owners of Tucson Greyhound Park and “allows them to continue to collect about $500,000 a year for two years from horse racing operators that operate off-track wagering at the track,” according to the Washington Times.

According to the legislative overview:

Commercial racetracks (permittees) licensed by the Racing Commission in Arizona can also operate additional wagering facilities, which are a permittee’s off-track locations where wagering on races occurs but no live racing is conducted (A.R.S. § 5-112). The practice of allowing patrons at a racetrack or its off-track facilities to watch and wager on races being conducted at other tracks is referred to as simultaneous broadcasting, or simulcasting. Authorized by the federal Interstate Horse Racing Act of 1978, simulcasting involves the transmission of live audio and visual signals of horse or dog races and related information between racetracks in the country for the purpose of wagering. Arizona racetracks may receive simulcasts from other racetracks and can also export their simulcast signal of races to other authorized locations.

Current statute authorizes eligibility of hardship tax credits for permittees conducting racing at permitted facilities. The tax credit is determined through the of the percentage decrease for the prior fiscal year and the highest annual pari-mutuel wagering for fiscal years 1990 through 1994. The hardship tax credit reduces the permittee’s tax obligation in addition to any other tax exemptions, rebates and credits (A.R.S. § 5-111).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Prohibits live dog racing in this state after December 31, 2016.

2. Authorizes current commercial live dog racing permits to continue through December 31, 2016.

3. Allows permittees that conducted live dog racing in 2016 to conduct advance deposit wagering, wagering at additional permittee-leased or -owned wagering facilities and wagering on simulcast races.

4. Requires the consent of all licensed permittees in the county in order for a permittee to conduct wagering at an additional owned or leased facility until January 1, 2019.

5. Continues required deposit amounts for dog racing pari-mutuel pool monies until January 1, 2017.

6. Requires an advance deposit wagering provider to pay source market fees on all advance deposit wagering by persons in this state on the same type of live racing that a commercial dog racing permittee conducted in 2016.

7. Stipulates the allocation for source market fees from advance deposit wagering.

8. Specifies that a permittee is not prevented from using hardship tax credits earned before January 1, 2017 after the effective date of this legislation.

9. Directs Legislative Council staff to prepare proposed legislation conforming Arizona Revised Statutes to the provisions of this legislation for consideration in the Fifty-third Legislature, First Regular Session.

10. Makes technical and conforming changes.

11. Becomes effective on the general effective date.

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