Part 8.
TEXAS RACING COMMISSION
Chapter 321.
PARI-MUTUEL WAGERING
Subchapter A. MUTUEL OPERATIONS
The Texas Racing Commission proposes amendments to §§321.1,
321.3, 321.13, 321.21, 321.33, and 321.35, relating to mutuel operations at
pari-mutuel racetracks. The amendments are proposed in conjunction with the
Commission's review of Chapter 321, conducted pursuant to Government Code, §2001.039.
The Commission has determined preliminarily that the reason for adopting the
above-referenced sections continues to exist, with the proposed amendments.
The sections proposed for amendment relate to definitions, the conduct
of wagering, the pari-mutuel track report, prohibited wagers, and claims for
payment. The proposals add a definition for ticketless electronic wagering,
eliminate out-of-date language, clarify requirements regarding reports to
the Commission, clarify the prohibition of accepting wagers via the internet,
and conform the rules to current agency practice.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five year period the amendments are in effect
there will be no fiscal implications for state or local government as a result
of enforcing the amendments.
Ms. Flowerday has also determined that for each of the first five years
the amendments are in effect the anticipated public benefit will be that the
Commission's rules will be consistent with agency practice, be more easily
understood by the persons required to follow the rules, and address advances
in technology with respect to wagering while maintaining the integrity of
wagering and enforcing applicable law. There are no costs to small businesses.
There is no anticipated economic cost to an individual required to comply
with the amendments as proposed. The amendments will have no effect on the
state's agricultural, horse breeding, horse training, greyhound training,
and greyhound breeding industries.
Comments on the proposal may be submitted on or before August 8, 2005,
to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing
Commission, P.O. Box 12080, Austin, Texas 78711-2080.
1.
GENERAL PROVISIONS
16 TAC §§321.1, 321.3, 321.13, 321.21
The amendments are proposed under the Texas Civil Statutes,
Article 179e, §3.02 which authorizes the Commission to make rules relating
exclusively to horse and greyhound racing; §6.06, which authorizes the
Commission to adopt rules on all matters relating to the planning, construction,
and operation of racetracks; §11.01, which authorizes the Commission
to adopt rules to regulate pari-mutuel wagering on horse and greyhound races;
and §11.04, which authorizes the Commission to adopt rules regarding
the location of wagers and the use of telephones to wager.
The amendments implement Texas Civil Statutes, Article 179e.
§321.1.Definitions and General Provisions.
(a)
The following words and terms, when used in this chapter,
shall have the following meanings, unless the context clearly indicates otherwise:
(1) - (15)
(No change.)
(16)
Ticketless Electronic Wagering (E-wagering)--a
form of pari-mutuel wagering in which wagers are placed and cashed through
an electronic ticketless account system operated through a licensed totalisator
vendor in accordance with §11.04 of this Act. Wagers are automatically
debited and credited to the account holder.
(17)
[
(18)
[
(19)
[
(20)
[
(21)
[
(22)
[
(b) - (c)
(No change.)
§321.3.Conduct of Wagering.
(a)
(No change.)
(b)
In conducting pari-mutuel wagering, an association shall
use a totalisator system that:
(1)
(No change.)
(2)
is approved by the Commission [
(c) - (d)
(No change.)
§321.13.Pari-Mutuel Track Report.
(a)
Daily Pari-Mutuel Summary Report.
(1) - (3)
(No change.)
(4)
The report must contain, by each live and simulcast performance,
the following:
(A) - (D)
(No change.)
(E)
all purses earned, broken out by
source, such as live,
simulcast, cross species, and export
[
(F) - (H)
(No change.)
(b)
(No change.)
§321.21.Certain Wagers Prohibited.
(a)
An association may not accept a wager made by mail
,
[
(b)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on June 23, 2005.
TRD-200502593
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
16 TAC §321.33, §321.35
The amendments are proposed under the Texas Civil Statutes,
Article 179e, §3.02 which authorizes the Commission to make rules relating
exclusively to horse and greyhound racing; §6.06, which authorizes the
Commission to adopt rules on all matters relating to the planning, construction,
and operation of racetracks; §11.01, which authorizes the Commission
to adopt rules to regulate pari-mutuel wagering on horse and greyhound races;
and §11.04, which authorizes the Commission to adopt rules regarding
the location of wagers and the use of telephones to wager.
The amendments implement Texas Civil Statutes, Article 179e.
§321.33.Expiration Date.
(a) - (c)
(No change.)
[(d)
Transition. For 2003 and 2004 only, mutuel
tickets purchased on or after January 1, 2003 but before August 1, 2004, expire
on September 29, 2004.]
§321.35.Claim for Payment.
(a)
An association shall accept a claim for payment if the
association has withheld payment or has refused to cash a pari-mutuel ticket
or a voucher presented for payment. The claim must be made on a form prescribed
by the association
and signed by the claimant
. The original of
the claim shall be promptly forwarded to the Commission.
(b) - (e)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on June 23, 2005.
TRD-200502594
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
The Texas Racing Commission proposes amendments to §§321.103,
321.105, 321.121, 321.123, 321.139, and 321.143, relating to totalisator requirements
and operating environment at pari-mutuel racetracks. The amendments are proposed
in conjunction with the Commission's review of Chapter 321, conducted pursuant
to Government Code, §2001.039. The Commission has determined preliminarily
that the reason for adopting the above-referenced sections continues to exist,
with the proposed amendments.
The sections proposed for amendment relate to facility requirements, hardware
requirements, general management requirements, personnel requirements, ad
hoc reports, and logs. The proposals clarify the Commission's requirements
relating to offsite totalisator equipment, add restrictions relating to ticketless
electronic wagering, add a requirement that tote companies submit a business
contingency plan, correct a typographical error, clarify that the executive
secretary may determine which tote company employees must obtain a Commission
license, clarify the deadline for filing an incident report, and incorporate
provisions relating to e-wagering accounts in ad hoc reports and tote logs.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five year period the amendments are in effect
there will be no fiscal implications for state or local government as a result
of enforcing the amendments.
Ms. Flowerday has also determined that for each of the first five years
the amendments are in effect the anticipated public benefit will be that the
Commission's rules will be consistent with agency practice, be more easily
understood by the persons required to follow the rules, and address advances
in technology with respect to wagering while maintaining the integrity of
wagering and enforcing applicable law. There may be a cost to totalisator
companies required to prepare a business contingency plan. Due to the various
organizational structures and management philosophies of the totalisator companies
doing business at Texas racetracks, the cost of preparing a business contingency
plan will vary widely and therefore, the Commission cannot estimate the cost.
There is no anticipated economic cost to an individual required to comply
with the amendments as proposed. The amendments will have no effect on the
state's agricultural, horse breeding, horse training, greyhound training,
and greyhound breeding industries.
Comments on the proposal may be submitted on or before August 8, 2005,
to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing
Commission, P.O. Box 12080, Austin, Texas 78711-2080.
1.
FACILITIES AND EQUIPMENT
16 TAC §321.103, §321.105
The amendments are proposed under the Texas Civil Statutes,
Article 179e, §3.02 which authorizes the Commission to make rules relating
exclusively to horse and greyhound racing; §6.06, which authorizes the
Commission to adopt rules on all matters relating to the planning, construction,
and operation of racetracks; §11.01, which authorizes the Commission
to adopt rules to regulate pari-mutuel wagering on horse and greyhound races;
and §11.04, which authorizes the Commission to adopt rules regarding
the location of wagers and the use of telephones to wager.
The amendments implement Texas Civil Statutes, Article 179e.
§321.103.Facility Requirements.
(a)
Totalisator Room. An association shall provide a totalisator
room to house the main computing and communications equipment
or
[
(1) - (6)
(No change.)
(b)
(No change.)
(c)
Totalisator Room Security.
(1)
The totalisator room housing the CPU
or operator's
terminal
that processes wagers made at an association's facility must
be secured at all times. Annually on a date established by the executive secretary,
the association shall submit to the executive secretary for approval a security
plan for the totalisator room housing the CPU
or operator's terminal
that processes wagers made at the association's facility. The security
plan must include:
(A) - (B)
(No change.)
(2)
If the totalisator room housing the CPU
or operator's
terminal
processing wagers made at the association's facility is located
on property owned or controlled by the association, the association shall
limit entry to the totalisator room to totalisator, association, and Commission
personnel approved by the executive secretary. The association shall submit
a list of the individuals to be approved for totalisator room access at least
two weeks before the first day of each live race meeting and each time a personnel
change necessitates a change to the list.
(3)
If the totalisator room housing the CPU
or operator's
terminal
processing wagers made at the association's facility is not
located on property owned or controlled by the association, the totalisator
company shall limit entry to the totalisator room in accordance with the totalisator
company's policy. The association shall provide a copy of the totalisator
company's policy regarding totalisator room access to the executive secretary.
§321.105.Hardware Requirements.
(a) - (f)
(No change.).
(g)
Ticket Issuing Machines.
(1) - (3)
(No change.)
(4)
A TIM may not access
, alter, change, or manipulate
the wagering database except to conduct the wagering or cashing functions
necessary [
(h)
Ticketless Electronic Wagering
(E-wagering). An association may not use E-wagering devices unless approved
by the executive secretary as required by Subchapter E of this Chapter.
(i)
[
(j)
[
(1)
An association shall use a totalisator system that operates
in either a Tote-to-Tote network or a TIM-to-Tote network. The totalisator
system must, without regard to the location of the CPU:
(A)
meet the requirements of this chapter;
(B)
comply with the Rules;
(C)
use the current version of Inter-Tote Systems Protocol
recognized by the ARCI Tote Standards Committee; and
(D)
uses the current version of Standardized Track codes recognized
by the ARCI Tote Standards Committee.
(2)
An association may common pool if all equipment used is
of an approved type and in an approved location.
(3)
The host racetrack for which a common pool is created must
also provide a totalisator system that:
(A)
directs each totalisator system involved with the common
pool regarding the pools offered, live and scratched race animals, common
pool totals, network odds and probable payout, start and stop wagering commands,
official orders of finish, deduction and payout calculations; and
(B)
produces reports showing the amount wagered on each race
animal and pool from each site, in accordance with the current Inter-Tote
Systems Protocol.
(4)
A totalisator company must have a disaster recovery plan
to allow an association to continue to conduct pari-mutuel wagering in the
event of a disaster at the CPU's location.
(k)
[
(1)
The totalisator system must be supported by an uninterruptible
power supply (UPS) as described in subsection (f) of this section.
(2)
A totalisator company must have emergency procedures to
address a totalisator system failure. The procedures will apply whether the
system is operating as a stand-alone wagering site for separate pool wagering
or as a satellite in a common pool network.
(3)
In a Tote-to-Tote network, if system failure occurs at
either the remote site or the host, the pari-mutuel auditor and the network's
mutuel and system managers shall establish the pools for the unaffected sites.
The failure site shall cease wagering. The pari-mutuel auditor shall then
determine when the failed pari-mutuel system may resume operation.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on June 23, 2005.
TRD-200502595
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
16 TAC §321.121, §321.123
The amendments are proposed under the Texas Civil Statutes,
Article 179e, §3.02 which authorizes the Commission to make rules relating
exclusively to horse and greyhound racing; §6.06, which authorizes the
Commission to adopt rules on all matters relating to the planning, construction,
and operation of racetracks; §11.01, which authorizes the Commission
to adopt rules to regulate pari-mutuel wagering on horse and greyhound races;
and §11.04, which authorizes the Commission to adopt rules regarding
the location of wagers and the use of telephones to wager.
The amendments implement Texas Civil Statutes, Article 179e.
§321.121.General Management Requirements.
(a) - (c)
(No change.)
(d)
Business Contingency Plan.
A totalisator company must submit and obtain executive secretary approval
for a business contingency plan that addresses the company's ability to continue
or resume operations if a catastrophic event disrupts normal business operations.
The plan must be submitted annually on a date established by the executive
secretary. The executive secretary may specify the types of occurrences that
the plan must address.
(e)
A totalisator company is subject
to licensing, inspection, and regulation by the Commission to ensure the integrity
of the information obtained by use of its software and equipment and employees.
§321.123.Personnel Requirements.
(a)
General Requirements.
(1)
(No change.)
(2)
The totalisator company must have job descriptions containing
the experience, education, and organization training requirements for each
of the following totalisator positions:
(A) - (C)
(No change.)
(D)
totalisator operator;
and
(E)
technicians
.
[
(3) - (4)
(No change.)
(5)
The executive secretary may
determine which totalisator employees must be licensed.
(6)
[
(7)
[
(8)
[
(b)
(No change.)
(c)
Totalisator operator. A totalisator operator shall:
(1) - (7)
(No change.)
(8)
provide to the pari-mutuel auditor an incident report
, no later than 48 hours after the time of the incident, addressing
[
(9) - (10)
(No change.)
(d)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on June 23, 2005.
TRD-200502596
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
16 TAC §321.139, §321.143
The amendments are proposed under the Texas Civil Statutes,
Article 179e, §3.02 which authorizes the Commission to make rules relating
exclusively to horse and greyhound racing; §6.06, which authorizes the
Commission to adopt rules on all matters relating to the planning, construction,
and operation of racetracks; §11.01, which authorizes the Commission
to adopt rules to regulate pari-mutuel wagering on horse and greyhound races;
and §11.04, which authorizes the Commission to adopt rules regarding
the location of wagers and the use of telephones to wager.
The amendments implement Texas Civil Statutes, Article 179e.
§321.139.Ad Hoc Reports.
When requested by the pari-mutuel auditor or executive secretary, the
totalisator operator shall produce the following reports:
(1) - (6)
(No change.)
(7)
a Canceled Tickets Report, for a performance or race, showing
each ticket canceled that day in the form of the Ticket History Report, the
identity of the TIM that cashed the ticket, and an indication as to whether
the ticket was cashed using a manual keyboard entry or an automatic machine
read; [
(8)
a Network Balance Report summarizing the activity and liabilities
for each site within a Tote-to-Tote network
; and
(9)
an Account Activity Report
showing the following information for each E-wagering account:
(A)
the unique account number;
(B)
the date and time of each transaction;
(C)
the location of each wager;
(D)
the amount of each transaction;
(E)
the type of pool, animal number, and amount
of each wager;
(F)
the account balance; and
(G)
the account holders name.
§321.143.Logs.
(a)
On-Line Logs. The totalisator system must produce various
daily on-line logs. The totalisator operator shall provide a printed copy
of a daily log to the pari-mutuel auditor on request. The totalisator system
must produce the following logs:
(1) - (2)
(No change.)
(3)
a User Terminal Log showing the time of day of each entry
for:
(A)
(No change.)
(B)
each TIM operated during a performance:
(i)
(No change.)
(ii)
each instance of loss/restoration of communication and
the TIM; [
(4)
a System Error Log showing the date and time of each error
; and
[
(5)
an Account Activity Log showing
the following information for each E-wagering account:
(A)
the unique account number;
(B)
the date and time of each transaction;
(C)
the location of each wager;
(D)
the amount of each transaction;
(E)
the type of pool, animal number, and amount
of each wager;
(F)
the account balance; and
(G)
the account holders name.
(b)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on June 23, 2005.
TRD-200502597
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
2.
DISTRIBUTION OF PARI-MUTUEL POOLS
16 TAC §§321.312, 321.313, 321.315
The Texas Racing Commission proposes amendments to §§321.312,
321.313, and 321.315, relating to the regulation of wagering on races conducted
live in Texas. The amendments are proposed in conjunction with the Commission's
review of Chapter 321, conducted pursuant to Government Code, §2001.039.
The Commission has determined preliminarily that the reason for adopting the
above-referenced sections continues to exist, with the proposed amendments.
The sections proposed for amendment relate to the pick (n) pool, the select
three, four, or five pool, and the tri-superfecta pool. The proposals correct
a typographical error, provide a protocol for determining which animals will
be substituted for a scratched animal, and rearrange the order of subsections
relating to the distribution of the tri-superfecta pool on a mandatory payout
day.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five year period the amendments are in effect
there will be no fiscal implications for state or local government as a result
of enforcing the amendments.
Ms. Flowerday has also determined that for each of the first five years
the amendments are in effect the anticipated public benefit will be that the
Commission's rules will be consistent with agency practice, be more easily
understood by the persons required to follow the rules, and address advances
in technology with respect to wagering while maintaining the integrity of
wagering and enforcing applicable law. There is no cost to a small business
required to comply with the amendments. There is no anticipated economic cost
to an individual required to comply with the amendments as proposed. The amendments
will have no effect on the state's agricultural, horse breeding, horse training,
greyhound training, and greyhound breeding industries.
Comments on the proposal may be submitted on or before August 8, 2005,
to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing
Commission, P.O. Box 12080, Austin, Texas 78711-2080.
The amendments are proposed under the Texas Civil Statutes, Article
179e, §3.02 which authorizes the Commission to make rules relating exclusively
to horse and greyhound racing; §6.06, which authorizes the Commission
to adopt rules on all matters relating to the planning, construction, and
operation of racetracks; §11.01, which authorizes the Commission to adopt
rules to regulate pari-mutuel wagering on horse and greyhound races; and §11.04,
which authorizes the Commission to adopt rules regarding the location of wagers
and the use of telephones to wager.
The amendments implement Texas Civil Statutes, Article 179e.
§321.312.Pick (N).
(a) - (j)
(No change.)
(k)
If a pick (n) ticket designates a selection and the selection
is scratched or otherwise prevented from racing, the favorite, as determined
by the largest amount wagered in the win pool at the start of the race, will
be substituted for the nonstarting selection for all purposes, including mutuel
pool calculations and payoffs to the public. If there are two or more [
(l) - (q)
(No change.)
§321.313.Select Three, Four, or Five.
(a) - (h)
(No change.)
(i)
If a selection on a select three, four, or five ticket
in one or more of the races is scratched or determined by the stewards or
racing judges to be a nonstarter in the race, the actual favorite, as shown
by the largest amount wagered in the win pool at the time of the start of
the race, will be substituted for the non starting selection for all purposes,
including pool calculations and payoffs.
If there are two or more favorites
in the win pool, both favorites will be substituted for the non-starting selection.
(j) - (k)
(No change.)
§321.315.Tri-Superfecta.
(a) - (c)
(No change.)
(d)
In the first tri-superfecta
race
[
(1) - (8)
(No change.)
(e) - (q)
(No change.)
(r)
Distribution on Mandatory Payout.
(1)
Notwithstanding subsections (e) and (t) of this
section, on the last performance of a race meet or a designated mandatory
payout performance, exchange tickets will be issued for those combinations
selecting the greatest number of betting interests in the first tri-superfecta
race in the following order:
(A)
As a single price pool to those whose combination
finished in correct sequence as the first three betting interests; but if
there are no such wagers, then
(B)
As a single price pool to those whose combination
included, in correct sequence, the first two betting interests; but if there
are no such wagers, then
(C)
As a single price pool to those whose combination
included, in correct sequence, the first and third betting interests; but
if there are no such wagers, then
(D)
As a single price pool to those whose combination
correctly selected the first-place betting interest; but if there are no such
wagers, then
(E)
As a single price pool to those whose combination
included, in correct sequence, the second and third betting interests; but
if there are no such wagers, then
(F)
As a single price pool to those whose combination
correctly selected the second-place betting interest; but if there are no
such wagers, then
(G)
As a single price pool to those whose combination
correctly selected the third-place betting interest.
(2)
Notwithstanding subsections (e) and (t) of this
section, on the last performance of a race meeting or a designated mandatory
payout performance, if there are no wagers selecting the finishers in the
order described in paragraph (1) of this subsection and there is a carryover,
all first-half tickets are considered winners and the tri-superfecta pool
for that performance and the tri-superfecta carryover shall be distributed
equally among them.
(3)
Notwithstanding subsections (e) and (t) of this
section, on the last performance of a race meeting or a designated mandatory
payout performance, if there are no wagers selecting the finishers in the
order described in paragraph (1) of this subsection and there is no carryover,
the tri-superfecta shall be canceled and the entire tri-superfecta pool shall
be refunded.
(s)
[
(1)
As a single price pool to those whose combination finished
in correct sequence as the first four betting interests; but if there are
no such wagers, then
(2)
As a single price pool to those whose combination included,
in correct sequence, the first three betting interests; but if there are no
such wagers, then
(3)
As a single price pool to those whose combination included,
in correct sequence, the first two betting interests; but if there are no
such wagers, then
(4)
As a single price pool to those whose combination correctly
selected the first-place betting interest; but if there are no such wagers,
then
(5)
As a single price pool to those whose combination included,
in correct sequence, the second-place betting interests; but if there are
no such wagers, then
(6)
As a single price pool to those whose combination correctly
selected the third-place betting interest; but if there are no such wagers,
then
(7)
As a single price pool to those whose combination correctly
selected the fourth-place betting interest; but if there are no such wagers,
then
(8)
As a single price pool to holders of valid exchange tickets;
but if there are no such persons, then
(9)
As a single price pool to holders of outstanding first-half
winning tickets.
[
[
[
[
[
[
[
[
[
[
[
(t) - (w)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the
Office of the Secretary of State on June 23, 2005.
TRD-200502598
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
The Texas Racing Commission proposes new §§321.601, 321.603,
321.605, 321.607, 321.609, 321.621, 321.623, 321.625, and 321.627, relating
to wagering on horse and greyhound races at Texas racetracks via an electronic
wagering system. The new sections are proposed in conjunction with the Commission's
review of Chapter 321, conducted pursuant to Government Code, §2001.039.
The Commission has determined preliminarily that the reason for adopting Chapter
321 continues to exist, with the proposed new sections.
The new sections provide procedures and restrictions on the conduct of
ticketless electronic wagering at Texas racetracks. The new sections provide
for an e-wagering plan to be submitted and approved by the agency, restrictions
on e-wagering to ensure strict compliance with application wagering laws,
the cancellation of e-wagers, and the suspension or termination of e-wagering.
Paula C. Flowerday, Executive Secretary for the Texas Racing Commission,
has determined that for the first five year period the new sections are in
effect there will be no fiscal implications for state or local government
as a result of enforcing the sections.
Ms. Flowerday has also determined that for each of the first five years
the new sections are in effect the anticipated public benefit will be that
the Commission's rules will address advances in technology with respect to
wagering while maintaining the integrity of wagering and enforcing applicable
law. There may be a minimal cost to a pari-mutuel racetrack associated with
preparing and submitting the electronic wagering plan. Due to the various
organizational structures and management philosophies of the racetracks, the
cost of preparing an e-wagering plan will vary widely and therefore, the Commission
cannot estimate the cost. There is no anticipated economic cost to an individual
required to comply with the sections as proposed. The sections will have no
effect on the state's agricultural, horse breeding, horse training, greyhound
training, and greyhound breeding industries.
Comments on the proposal may be submitted on or before August 8, 2005,
to Gloria Giberson, Assistant to the Executive Secretary for the Texas Racing
Commission, P.O. Box 12080, Austin, Texas 78711-2080.
1.
CONDUCT OF E-WAGERING
16 TAC §§321.601, 321.603, 321.605, 321.607, 321.609
The new sections are proposed under the Texas Civil Statutes,
Article 179e, §3.02 which authorizes the Commission to make rules relating
exclusively to horse and greyhound racing; §6.06, which authorizes the
Commission to adopt rules on all matters relating to the planning, construction,
and operation of racetracks; §11.01, which authorizes the Commission
to adopt rules to regulate pari-mutuel wagering on horse and greyhound races;
and §11.04, which authorizes the Commission to adopt rules regarding
the location of wagers and the use of telephones to wager.
The new sections implement Texas Civil Statutes, Article 179e.
§321.601.Purpose.
(a)
The Commission recognizes that the technology for placing
wagers is ever changing. The Commission adopts these rules as guidelines to
conduct E-wagering that maintains the integrity of pari-mutuel wagering.
(b)
E-wagering may be conducted only within the enclosure of
an association.
(c)
Only persons meeting the age restriction in §321.17
of this title (relating to Activities by Minors Restricted) may participate
in E-wagering. E-wagers must be made in person.
§321.603.Authorization for E-Wagering.
An association may not conduct E-wagering unless approved by the executive
secretary.
§321.605.E-Wagering Plan.
(a)
To be approved to conduct E-wagering, an association must
submit a plan to the executive secretary. The plan must include:
(1)
the procedures for opening an account;
(2)
the procedures for establishing identity of account holder;
(3)
the procedures for making deposits to the account;
(4)
the procedures for making withdrawals from the account;
(5)
the procedures for closing an account; and
(6)
a description of the totalisator system and E-wagering
access system.
(b)
The executive secretary may approve a plan to conduct E-wagering
if the executive secretary determines that the association's plan meets the
requirements of this section and does not conflict with the Rules or the Act.
§321.607.E-Wagering Account Restrictions.
(a)
The mutuel manager of an association shall establish and
manage E-wagering within an association's enclosure.
(b)
The making and acceptance of wagers over the communications
facility known as the "Internet" or "telephone" is prohibited.
(c)
An association may accept deposits to an account only in
the form of cash, cashier's check, money order, or other method determined
by the executive secretary to be a cash equivalent.
(d)
The association may not accept wagers in an amount that
exceeds the account balance.
(e)
An account holder must be at least 21 years of age.
(f)
An account holder is responsible for all activity associated
with his or her account.
(g)
An association may use E-wagering devices only if the devices
are connected to the totalisator system.
§321.609.Testing E-Wagering.
An association's E-wagering system is subject to testing and inspection
by the Commission. All forms of access to an account, including hardware used
directly by the account holder for E-wagering are subject to testing and inspection
by the Commission.
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on June 23, 2005.
TRD-200502599
Paula C. Flowerday
Executive Secretary
Texas Racing Commission
Earliest possible date of adoption: August 7, 2005
For further information, please call: (512) 833-6699
(16)
] TIM--ticket-issuing machine.
(17)
] TIM-to-Tote network--a wagering
network consisting of a single central processing unit and the
TIMs
[
TIM's
] at any number of remote sites.
(18)
] Totalisator system--a computer
system that registers and computes the wagering and payoffs in pari-mutuel
wagering.
(19)
] Totalisator operator--the
individual assigned to operate the totalisator system at a racetrack facility.
(20)
] Tote-to-tote network--a
wagering network in which each wagering location has a central processing
unit.
(21)
] User--a totalisator company
employee authorized to use the totalisator system in the normal course of
business.
and the Comptroller
].
type
];
or
] by telephone
, or by internet
. A data communications
link for common pooling purposes is not considered a wager for purposes of
this section.
3.
MUTUEL TICKETS AND VOUCHERS
Subchapter B. TOTALISATOR REQUIREMENTS AND OPERATING ENVIRONMENT
and
] the operator's terminal at the association's facility
, whichever
is applicable
. The room must include:
for a teller
] to serve the public.
(h)
] Maintenance. A totalisator
company shall provide sufficient preventative maintenance to a totalisator
system to ensure the system hardware will provide a high degree of reliability.
Maintenance must include testing the UPS for battery life and power stability.
(i)
] Common Pooling.
(j)
] Emergency Procedures.
2.
OPERATIONAL REQUIREMENTS
; and
]
(5)
] With each license application,
a totalisator company must include a list of all certified totalisator personnel
assigned to work in Texas. The list must indicate the position for which each
person is qualified. If a new employee is assigned to work in Texas, the totalisator
company must update the list of certified personnel and provide it to the
executive secretary.
(6)
] A totalisator company employee
may not hold a position of programmer and totalisator operator simultaneously
unless approved by the executive secretary.
(7)
] A totalisator company employee
is prohibited from wagering in Texas while on duty.
detailing
] each unusual occurrence during totalisator system operations
including a description of the probable cause of the occurrence and the corrective
action taken;
3.
REPORTING AND LOG REQUIREMENTS
and
]
and
]
.
]
Subchapter C. REGULATION OF LIVE WAGERING
identical
] favorites in the win pool, both favorites will be substituted
for the nonstarting selection.
ace
]
only, the first-half tri-superfecta pool shall be distributed according to
the following precedence, based upon the official order of finish for the
first tri-superfecta race:
(r)
] Notwithstanding subsections
(f) and (t) of this section, on the last performance of a race meeting or
on a designated mandatory payout performance, the following precedence will
be followed in determining winning tickets for the second-half of the tri-superfecta:
(s)
Distribution on Mandatory
Payout.]
(1)
Notwithstanding subsections (e) and (t) of
this section, on the last performance of a race meet or a designated mandatory
payout performance, exchange tickets will be issued for those combinations
selecting the greatest number of betting interests in the first tri-superfecta
race in the following order:]
(A)
As a single price pool to those whose combination
finished in correct sequence as the first three betting interests; but if
there are no such wagers, then]
(B)
As a single price pool to those whose combination
included, in correct sequence, the first two betting interests; but if there
are no such wagers, then]
(C)
As a single price pool to those whose combination
included, in correct sequence, the first and third betting interests; but
if there are no such wagers, then]
(D)
As a single price pool to those whose combination
correctly selected the first-place betting interest; but if there are no such
wagers, then]
(E)
As a single price pool to those whose combination
included, in correct sequence, the second and third betting interests; but
if there are no such wagers, then]
(F)
As a single price pool to those whose combination
correctly selected the second-place betting interest; but if there are no
such wagers, then]
(G)
As a single price pool to those whose combination
correctly selected the third-place betting interest.]
(2)
Notwithstanding subsections (e) and (t) of
this section, on the last performance of a race meeting or a designated mandatory
payout performance, if there are no wagers selecting the finishers in the
order described in Paragraph (1) of this subsection and there is a carryover,
all first-half tickets are considered winners and the tri-superfecta pool
for that performance and the tri-superfecta carryover shall be distributed
equally among them.]
(3)
Notwithstanding subsections (e) and (t) of
this section, on the last performance of a race meeting or a designated mandatory
payout performance, if there are no wagers selecting the finishers in the
order described in Paragraph (1) of this subsection and there is no carryover,
the tri-superfecta shall be canceled and the entire tri-superfecta pool shall
be refunded.]
Subchapter E. TICKETLESS ELECTRONIC WAGERING
2.
OPERATIONAL REQUIREMENTS