Racing Commission, Chapter 462
Rule Caption: Rulemaking will edit OARs with detailed direction to licenses and updates rule terminology.
Adm. Order No.: RC 3-2012
Filed with Sec. of State: 10-9-2012
Certified to be Effective: 10-15-12
Notice Publication Date: 4-1-2012
Rules Amended: 462-210-0010, 462-220-0040
Subject: Amendment #1: 462-210-0010 (Definitions): Proposed amendments add definitions for “Advance Deposit Wagering Licensee or ADW”, “Business Day”, and “Person” and clarify existing definitions.
Amendment #2: 462-220-0040 (State of Oregon Share of the Pari-Mutual Handle): Proposed amendments to this rule updates some of the rule language and list an updated tax table.
Rules Coordinator: Nancy A. Artmann—(971) 673-0211
The following definitions and interpretations shall apply to these rules unless otherwise indicated or text otherwise requires.
(1) “Account”: An account for account wagering with a specific identifiable record of deposits, wagers, and withdrawals established by an account holder and managed by the advance deposit wagering licensee or race meet licensee.
(2) “Account Holder”: A person who successfully completed an application and for whom an account has been opened.
(3) “Account Wagering”: A form of pari-mutuel wagering in which a person may deposit money in an account with an advance deposit wagering licensee or race meet licensee and then use the current balance to pay for pari-mutuel wagering.
(4) “Account Wagering Center”: An actual location, equipment, and staff of an advance deposit wagering licensee or race meet licensee and/or agents involved in the management, servicing, and operation of account wagering.
(5) “Advance Deposit Wagering Licensee or ADW”: Any person or entity holding a currently valid license to engage in related activities as a multi-jurisdictional simulcasting and interactive wagering totalizator hub as defined in Oregon Administrative Rule 462-220-0010(1).
(6) “Agent”: Those persons or entities with the authority to accept deposits and wagers or issue a receipt or other confirmation to the account holder evidencing such deposits and wagers, and transfer credits and debits to and from accounts on behalf of the advance deposit wagering licensee or race meet licensee.
(7) “Applicant”: A person who has submitted an application to establish an account with an advance deposit wagering licensee or race meet licensee.
(8) “Application”: The form or forms and other required submissions received from an applicant with the intent of opening an account.
(9) “Business Day”: Monday through Friday with the exception of a federal or state observed holiday.
(10) “Commission”: The Oregon Racing Commission or any successor agency.
(11) “Confidential Information”:
(a) The amount of money credited to, debited from, withdrawn from, or present in any particular account holder’s account;
(b) The amount of money wagered by a particular account holder on any race or series of races;
(c) The account number and secure personal identification code of a particular account holder;
(d) The identities of particular entries on which the account holder is wagering or has wagered; and
(e) Unless otherwise authorized by the account holder, the name, address, and other information in the possession of the account wagering center and race meet licensee that would identify the account holder to anyone other than the commission, the account wagering center or the race meet licensee.
(12) “Credits”: All positive inflows of money to an account.
(13) “Debits”: All negative outflow of money from an account.
(14) “Deposit”: A payment of money by cash, check, money order, credit card, debit card, or electronic funds transfer made by an account holder to the account holder’s account.
(15) “Person”: Any natural person at least 18 years of age or a single member limited liability company where the single member is a natural person.
(16) “Principal Residence Address”: That place where the person submitting an application for an account resides at least fifty percent (50%) of the time during the calendar year.
(17) “Proper Identification”: A form of identification accepted in the normal course of business to establish that the person making a transaction is an account holder.
(18) “Race Course”: As defined in ORS 462.010(5).
(19) “Race Meet Licensee”: Any person or entity holding a currently valid license to engage in racing or related regulated activities.
(20) “Secure Personal Identification Code”: An alpha-numeric character code chosen by an account holder as a means by which the advance deposit wagering licensee or race meet licensee may verify a wager or account transaction as authorized by the account holder.
(21) “Withdrawal”: A payment of money from an account by the advance deposit wagering licensee or race meet licensee to the account holder when properly requested by the account holder.
(22) “Withdrawal Slip”: A form provided by the race meet licensee for use by an account holder in withdrawing funds from an account.
Stat. Auth.: ORS
462.270(3) & 462.700
Stats. Implemented: ORS 462.142
Hist.: RC 3-2000, f. 3-27-00, cert. ef. 5-1-00; RC 2-2012, f. 5-29-12, cert. ef. 6-1-12; RC 3-2012, f. 10-9-12, cert. ef. 10-15-12
State of Oregon Share of the Pari-Mutuel Handle
In addition to the licensing fee set forth in OAR 462-220-0030(5), the hub operator shall pay to the Oregon Racing Commission the tax authorized by ORS 462.725(3)(b) on all gross mutuel wagering receipts recorded by the hub’s totalizator system during the license period. The payments shall be made as follows:
(1) Payments shall be made each week based on the gross mutuel wagering receipts for that week.
(2) Payments shall be made in a timely manner as prescribed by the executive director of the commission.
(3) Payments shall be calculated according to one of the following formulas as elected by the hub operator in the manner specified in section (4):
(a) Payment of 0.125% of the first 60 million dollars in gross mutuel wagering receipts during the license period and 0.25% of the gross mutuel wagering receipts in excess of 60 million dollars during that period; or
(b) Payment of 0.25% of gross mutuel wagering receipts, except that, if the hub operator conducts business in a state where hubs are specifically authorized and the tax rate is less than 0.25%, the tax rate for wagers by the residents of such state would be that of the state in which they reside. This exception is limited to a single state designated by the hub operator in the manner specified in section (4).
(A) The base tax for fiscal year 2007-08 is $350,000.
(B) The maximum payment set out in section (3), subsection (a), paragraph (A), will increase 7.5% on an annual basis for each fiscal year unless the commission changes that limit before the beginning of a fiscal year.
Fiscal Year -- Tax Amount
2008–09 -- 376,250.00
2009–10 -- 404,469.00
2010–11 -- 434,804.00
2011–12 -- 467,414.00
2012–13 -- 502,470.00
2013–14 -- 540,156.00
2014–15 -- 580,667.00
2015–16 -- 624,217.00
2016–17 -- 671,034.00
2017–18 -- 721,361.00
(4) The hub operator shall state in its election to pay tax calculated pursuant to section (3), subsections (a) or (b) for gross mutuel wagering on merged pools and shall designate a state that is subject to the exception in section (3), subsection (b), if that formula is elected, in its license application for each year or at such other time as is specified by the commission. Neither the payment formula nor the state subject to the exception may be changed during a license period without the prior approval of the commission.
Stat. Auth.: ORS
462.270(3) & 462.725
Stats. Implemented: ORS 462.725
Hist.: RC 3-2000, f. 3-27-00, cert. ef. 5-1-00; RC 1-2001, f. & cert. ef. 3-19-01; RC 4-2002, f. & cert. ef. 6-28-02; RC 3-2003, f. 6-13-03, cert. ef. 7-1-03; RC 4-2003, f. 6-20-03, cert. ef. 7-1-03; RC 3-2004, f. 6-23-04, cert. ef. 7-1-04; RC 1-2005, f. 5-23-05, cert. ef. 7-1-05; RC 2-2012, f. 5-29-12, cert. ef. 6-1-12; RC 3-2012, f. 10-9-12, cert. ef. 10-15-12