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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of wagering through telephone, the |
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Internet, or other approved electronic means on horse races and |
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greyhound races under the pari-mutuel system of wagering; requiring |
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a license to operate account wagering; requiring a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2021.003, Occupations Code, is amended |
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by amending Subdivision (1) and adding Subdivisions (1-a) and (1-b) |
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to read as follows: |
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(1) "Account wagering" means a form of pari-mutuel |
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wagering that allows an individual to deposit money in an account |
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with a racetrack association or an account wagering operator for |
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the individual's use in pari-mutuel wagering offered by the |
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racetrack association on live or simulcast horse races or greyhound |
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races. |
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(1-a) "Account wagering operator" means an entity |
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licensed by the commission to provide an account for account |
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wagering by persons in this state. |
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(1-b) "Accredited Texas-bred horse" means a |
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Texas-bred horse that meets the accreditation requirements of the |
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state horse breed registry for that breed of horse. |
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SECTION 2. Subchapter F, Chapter 2025, Occupations Code, is |
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amended by adding Section 2025.2511 to read as follows: |
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Sec. 2025.2511. ACCOUNT WAGERING LICENSE. (a) A person may |
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not offer account wagering, operate as an account wagering |
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operator, or act as an employee of a person offering account |
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wagering or operating as an account wagering operator unless the |
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person or employee, as applicable, holds a license issued by the |
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commission under this section. |
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(b) The commission shall adopt rules and procedures for |
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applying for or issuing, denying, or revoking a license under this |
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section in a manner consistent with other licensing provisions of |
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this chapter. |
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SECTION 3. Section 2027.001(b), Occupations Code, is |
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amended to read as follows: |
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(b) Rules adopted under this subtitle must include rules to: |
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(1) regulate wagering by a person licensed under this |
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subtitle; |
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(2) prohibit wagering by a commission employee; |
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(3) authorize account wagering by [prohibit] a |
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racetrack association or an account wagering operator under |
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conditions the commission determines appropriate to protect the |
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public health and safety [from accepting a wager made by |
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telephone]; and |
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(4) prohibit a racetrack association from accepting a |
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wager made on credit. |
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SECTION 4. Section 2027.002, Occupations Code, is amended |
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by amending Subsections (a) and (b) and adding Subsections (b-1) |
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and (c-1) to read as follows: |
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(a) Wagering may be conducted only by: |
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(1) a racetrack association within the racetrack |
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association's enclosure; or |
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(2) an account wagering operator. |
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(b) Except as provided by Subsection (b-1), a [A] person may |
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not accept, in person, by telephone, or over the Internet, a wager |
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for a horse or greyhound race conducted inside or outside this state |
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from a person in this state unless the wager is authorized under |
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this subtitle. |
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(b-1) A racetrack association or an account wagering |
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operator may accept account wagering in person or by direct |
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telephone call or through other electronic means by the account |
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holder. An account wagering operator that is not a racetrack |
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association and that conducts, or any of the operator's affiliates |
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conducts, live racing shall contract with a racetrack association |
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for interstate simulcast wagering. An account wagering operator |
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may contract with a racetrack association to offer wagering on live |
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races on the account wagering operator's system only as authorized |
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under this subtitle. |
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(c-1) For purposes of this subtitle, account wagering by a |
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person in this state through a racetrack association or an account |
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wagering operator is considered wagering by a person in the |
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enclosure of the racetrack association or of the racetrack |
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association that has contracted with the account wagering operator. |
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SECTION 5. Chapter 2028, Occupations Code, is amended by |
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adding Subchapter B-1 to read as follows: |
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SUBCHAPTER B-1. GENERAL DEDUCTIONS FROM ACCOUNT WAGERING |
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Sec. 2028.071. DEDUCTIONS FROM ACCOUNT WAGERING. (a) The |
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commission shall adopt rules setting the amount, less refunds, that |
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may be deducted from the gross pari-mutuel handle of the racetrack |
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association or account wagering operator conducting account |
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wagering, provided that amount is not less than six percent of the |
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handle. |
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(b) The amount of all fees paid to the commission from |
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account wagering may not exceed one percent of the total gross |
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account wagering receipts, as determined by the computational |
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equipment approved by the commission for calculating wagering as |
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required under Section 2027.003, from wagers placed by persons in |
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this state with each racetrack association or account wagering |
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operator offering account wagering. |
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SECTION 6. As soon as practicable after the effective date |
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of this Act, the Texas Racing Commission shall adopt the rules |
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necessary to implement the change in law made by this Act. |
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SECTION 7. This Act takes effect September 1, 2023. |