File No. 563

House of Representatives, April 19, 2006

The Committee on Finance, Revenue and Bonding reported through REP. STAPLES of the 96th Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT CONCERNING SIMULCASTING FACILITIES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Section 12-571a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(a) The Division of Special Revenue and the Gaming Policy Board shall not operate or authorize the operation of more than eighteen off-track betting branch facilities, except that the division and the board may operate or authorize the operation of any off-track betting facility approved prior to December 31, 1986, by the legislative body of a municipality in accordance with subsection (a) of section 12-572. Any facility approved prior to December 31, 1986, shall be included within the eighteen branch facilities authorized by this subsection.

(b) The eighteen off-track betting branch facilities authorized by subsection (a) of this section may [include eight facilities which] have screens for the simulcasting of off-track betting race programs or jai alai games and other amenities including, but not limited to, restaurants and concessions, provided, [on and after June 19, 1992,] four of such facilities shall be located in the town and city of New Haven, the town of Windsor Locks, [within the dog race track in] the town of Plainfield at the location where the dog race track operates or previously operated and within the fronton or dog race track in the town and city of Bridgeport. Authority to simulcast does not include any branch facility located within a zone of protection negotiated between the operator of the off-track betting system and any other pari-mutuel betting facility. Each such facility located within a fronton or a dog race track shall be operated by the licensee authorized to operate the off-track betting system in conjunction with the licensee, owner or operator of such fronton or dog race track and all such facilities within a fronton or a dog race track shall be operated in substantially the same manner. Notwithstanding any provision of the general statutes or any regulation, the fronton or dog race track in the town and city of Bridgeport and the simulcast facility in the town of Plainfield shall not be required to operate any racing days as a condition of their license or operation. The location of each such facility shall be approved by the executive director with the consent of the Gaming Policy Board and shall be subject to the prior approval of the legislative body of the town in which such facility is proposed to be located. The division shall report annually to the joint standing committee of the General Assembly having cognizance of matters relating to legalized gambling on the status of the establishment or improvement of the off-track betting branch facility pursuant to this subsection.

(c) If an operator of an off-track betting facility equipped with screens for simulcasting intends to simulcast at such facility dog racing events or jai alai games, such operator (1) shall simulcast dog racing events or jai alai games conducted by any association licensee which offers such racing events or games for simulcasting provided such operator obtains the written consent of such licensee and any other licensee authorized to conduct the same activity located within forty miles of such facility, and (2) may simulcast out-of-state dog racing events or jai alai games when no such association licensee is conducting such racing events or games provided such operator has complied with the provisions of subdivision (1) of this subsection.

[(d) The division and board or a licensee authorized to operate the off-track betting system may operate any off-track betting branch office facilities not operated in the manner of the facilities operated under subsection (b) of this section as facilities which have monitors for off-track betting information, bench seating and adequate public rest room facilities for patrons.]

Sec. 2. Subsection (a) of section 12-574 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2006):

(a) No person or business organization may conduct a meeting at which racing or the exhibition of jai alai is permitted for any stake, purse or reward or operate the off-track betting system unless such person or business organization is licensed as an association licensee by the board. Notwithstanding any provision of the general statutes, or any regulation, no association licensee shall be required to operate any racing dates as a condition of holding such license. Any such licensee authorized to conduct a meeting or operate the off-track betting system shall indemnify and save harmless the state of Connecticut against any and all actions, claims, and demands of whatever kind or nature which the state may sustain or incur by reason or in consequence of issuing such license.

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:

OFA Fiscal Note

State Impact:

Note: GF=General Fund

Municipal Impact:

Explanation

The bill is anticipated to result in a revenue gain of approximately $94,000 in FY 07 (partial year) and $125,000 per subsequent year to the state and a revenue gain of $75,000 in FY 07 (partial year) and $100,000 per year and subsequent years to certain municipalities that have off-track betting facilities.

The licensee of the off-track betting system is required to pay to the state 3.5% of the total money wagered of which the state retains 1.9% and shares 1.6% to the host municipalities.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.



OLR Bill Analysis

sHB 5545

AN ACT CONCERNING SIMULCASTING FACILITIES.

SUMMARY:

This bill allows all 18, instead of eight, of the off-track betting (OTB) facilities authorized under existing law to provide live audio and television coverage of OTB racing programs and jai alai games (i.e., simulcast the events) and provide other amenities such as restaurants and concessions. To reflect the upgrade of the added facilities, the bill eliminates a provision allowing Division of Special Revenue (DSR) to authorize limited amenities, such as bench seating and public restrooms, in OTB facilities not authorized to simulcast events. The bill allows one of the authorized facilities to be located where the Plainfield dog track operates or operated, instead of within the dog track, to reflect the fact that the Plainfield facility is no longer conducting live dog racing.

Under current law, an OTB licensee must operate any OTB facility located in a fronton or dog track in conjunction with the fronton or dog track licensee. The bill allows the OTB licensee to operate the facility in conjunction with the fronton or jai alai owner, operator, or licensee. It is unclear whether this means that such an owner or operator would not have to be licensed by DSR.

The bill exempts the Bridgeport dog track or fronton and the Plainfield simulcasting theater (the correct reference should be Plainfield dog track) from any law or regulation that may require that a facility operate racing days as a condition of operating or retaining its license. It contains a similar exemption for racing, jai alai, and OTB association licensees. This means that the licensees and facilities would not have to operate live events in order to keep their license. (An association licensee is a person or business licensed by DSR to conduct racing or jai alai, or to operate the OTB system.)

EFFECTIVE DATE: October 1, 2006

BACKGROUND

The Law and OTB Facilities

The law authorizes 18 OTB facilities, including eight (commonly called simulcasting theaters) that have amenities such as restaurants, concessions, and other amenities and television screens to broadcast live OTB racing and jai alai games. The other facilities have limited amenities and cannot simulcast events.

By law, one of the eight simulcasting theaters must be located in New Haven, one in Windsor Locks, one at the Plainfield dog track, and one in the Bridgeport fronton or dog track.

Location of Current Facilities

OTB facilities not authorized to simulcast currently operate in Bridgeport, East Haven, Milford, Norwalk, and Waterbury.

Simulcasting theaters operate in Bristol, Bridgeport (Shoreline Star dog track), Hartford, New Britain, New Haven (at Sports Haven), Plainfield (at the closed dog track), Torrington, and Windsor Locks (Bradley Teletheater).

COMMITTEE ACTION

Public Safety and Security Committee

Joint Favorable Substitute Change of Reference

Finance, Revenue and Bonding Committee

Joint Favorable