810 KAR 1:011. Pari-mutuel wagering.
RELATES TO: KRS 230.210-230.375, 230.990
STATUTORY AUTHORITY: KRS 260.361
NECESSITY, FUNCTION, AND CONFORMITY: KRS 230.361(1) requires the authority to promulgate administrative regulations governing mutuel wagering on horse races under the pari-mutuel system of wagering. This administrative regulation establishes the requirements for the operation of pari-mutuel wagering.
Section 1. Pari-mutuel System of Wagering Required. Permitted wagering shall be under the pari-mutuel system, employing an electric totalizator or other mechanical equipment approved by the authority pursuant to KRS 230.361(1). All systems of wagering other than pari-mutuel, including but not limited to bookmaking and auction-pool selling, shall be prohibited. Any person participating or attempting to participate in prohibited wagering shall be excluded from association grounds.
Section 2. Totalizator Required. Each association shall install and operate during its race meeting an electric totalizator or other mechanical equipment approved by the authority pursuant to KRS 230.361(1). The totalizator or other mechanical equipment shall be tested daily under the supervision of the authority to insure its proper working order.
Section 3. Records to be Maintained. The pari-mutuel manager shall maintain complete records of all wagering so the authority may upon review ascertain for any race: the opening line and subsequent odds fluctuations, and the amount, and at which window, wagers were placed on any betting interest. A copy of the wagering records shall be retained by each association and safeguarded for a period not less than two (2) years and shall not be destroyed without permission of the authority.
Section 4. Calculation and Distribution of Pools. The only pari-mutuel wagering pools permitted in this state shall be for win, place, show, daily double, exacta, and quinella, and other exotic wagering approved by the authority as provided by Section 9 of this administrative regulation; each shall have separate and independent calculation and distribution. From each pool there shall be deducted by each association the commission as provided by KRS 230.3615, with the remainder being the net pool for distribution as payoffs to ticket holders. Each association shall present the specific procedures to be used for each type of wagering in their application for dates. Any further changes or additions shall be submitted in writing to the authority for approval.
(1) Refunds. For each type of wagering, the association shall provide the procedures for refunds in writing to the authority at the time the request for the pool is made and the authority shall approve the procedures before implementation.
(2) Race cancelled. For each type of wagering involving more than one (1) race, the association shall submit for authority approval the procedures to be used if a race is cancelled.
(3) Totalizator breakdown. If there is an irreparable breakdown of the totalizator or mechanical equipment during the wagering on a race, the wagering on that race shall be declared closed and the payoff shall be computed on the sums wagered in each pool up to the time of the breakdown.
Section 5. Minimum Wager and Payoff. The minimum wager to be accepted by any licensed association shall be one (1) dollar. The minimum payoff on a two (2) dollar wager shall be two (2) dollars and twenty (20) cents unless a minus pool occurs. If a minus pool occurs, the minimum payoff for a two (2) dollar wager shall be two (2) dollars and ten (10) cents.
Section 6. Minors Prohibited from Wagering. A minor shall not be permitted by any licensed association to purchase or cash a pari-mutuel ticket.
Section 7. Odds or Payoffs Posted. Approximate odds, based on win pool betting for finishing first for each betting interest, shall be posted on one (1) or more boards or television screens within view of the wagering public, at intervals of not more than ninety (90) seconds. If daily double wagering is conducted, before off-time of the second daily double race, the possible payoff for each two (2) dollar daily double wager combining the winner of the first daily double race with every horse or betting interest in the second daily double race shall be posted; except that if a dead heat for first in the first daily double race occurs, or a scheduled starter in the second daily double race is excused so as to cause a consolation daily double pool, then posting of all possible payoffs shall not be mandatory, but the association shall make every effort to compute such daily double prices and advise the public by posting or public-address announcement as soon as possible and prior to the running of the second daily double race.
Section 8. Betting Explanation. Each association shall publish in the daily race program a general explanation of pari-mutuel betting and an explanation of each type of betting pool offered. The explanation also shall be posted in conspicuous places about the association grounds to adequately inform the public and shall be submitted to the authority prior to publication for approval.
Section 9. Prior Approval Required for Betting Pools. Each association desiring to conduct more than nine (9) betting races on a single day, or desiring to offer exotic wagering, shall first apply in writing to the authority and obtain specific approval of the number of betting races and type of wagering to be offered on a single day.
Section 10. Pools Dependent Upon Entries. (1) On each type of wagering not already described in subsections (2) and (3) of this section, the association shall request in writing the procedures for each pool as a function of entries and the authority shall make the final determination.
(2) If horses representing five (5) or fewer betting interests qualify to start in a race, the association may prohibit show wagering on that race. If horses representing four (4) or fewer betting interests qualify to start in a race, the association may prohibit both place and show wagering on that race.
(3) If a horse is excused by the stewards after wagering has commenced or a horse is prevented from racing because of failure of a starting-gate door to open properly, and the number of actual starters representing different betting interests is:
(a) Reduced to five (5), the association may cancel show wagering on that race and the entire show pool shall be refunded upon presentation and surrender of show tickets; or
(b) Reduced to four (4) or fewer, the association may cancel both place and show wagering on that race and the entire place and show pool shall be refunded upon presentation and surrender of place and show tickets.
Section 11. Pari-mutuel Ticket Sales. (1) Pari-mutuel tickets shall not be sold except by a licensed association. Pari-mutuel tickets shall be sold only at regular windows properly designated by signs showing the type and denomination of tickets to be sold at the windows. A pari-mutuel ticket shall not be sold after the totalizator has been locked and an association shall not be responsible for ticket sales entered into but not completed by issuance of a ticket before the totalizator has been locked.
(2) Any claim by a person that he has been issued a ticket other than that which he requested, shall be made before he leaves the window and before the totalizator is locked.
(3) After purchasing a ticket and after leaving the ticket window, a person shall not be entitled to enter for the issuance of an incorrect ticket, or to claim a refund or payment for tickets discarded, or lost, or destroyed, or mutilated beyond identification.
(4) Payment on valid pari-mutuel tickets shall be made only if presented and surrendered to the association where the wager was made within one (1) year following the running of the race on which the wager was made. Failure to present any such ticket within one (1) year shall constitute a waiver of the right to receive payment thereon.
(5) Payment of valid pari-mutuel tickets shall be made on the basis of the order of finish as posted on the infield results board and declared "official" by the stewards. A subsequent change in the order of finish or award of purse money that may result from a subsequent ruling by the steward or authority, shall not affect the pari-mutuel payoff.
(6) The association shall be responsible for the correctness of all payoff prices posted as "official" on the infield results board. If an error is made in posting the payoff figures on the public board, and ascertained before any tickets are cashed thereon, the posting error shall be corrected, accompanied by a public address announcement, and only the correct amounts shall be used in the payoff, irrespective of the initial error on the public board.
(7) Prior to posting payoffs, the pari-mutuel manager shall require each of the computer printout sheets or calculating sheets of the race to be proven by the computer or calculator and the winners verified. Such proof shall show the amounts for authority, breakage, and payoffs, which added together shall equal the total pool. All pay slips shall be checked with computer printout sheets or calculating sheets as to winners and prices before being issued to cashiers, and all board prices shall be rechecked with the computer printout sheet or calculator before released to the public.
(8) If the recapitulation of the sales registered by each ticket issuing machine subsequently proves that the actual amount in the pool, or pools, is less than the amount used in calculating the payoff, the deficiency shall be deposited in the pool or pools by the association. If the recapitulation of sales prove that the actual amount in the pool or pools, is greater than the amount used in calculating the payoff due to a mechanical error of the totalizator, the error resulting in underpayment to the public, then the aggregate of the underpayments shall be paid into the corresponding pool of the next race or races, in an amount as may be determined by the state steward and the pari-mutuel manager. If an error should occur in computing the daily double pool, the underpayment shall be added to the daily double pool of the following day. Overpayments and underpayments subsequently discovered upon recapitulation after the close of a meeting may be adjusted, and any underpayment resulting from the final adjustment shall be paid to the Department of Revenue.
Section 12. Betting Interests Involving more than One (1) Horse. If two (2) or more horses entered for the same race are determined by the authority to have common ties through ownership and are joined by the authority as a "mutuel entry," the mutuel entry shall become a single betting interest and a wager on one (1) horse in a mutuel entry shall be a wager on all horses in the same mutuel entry. If the number of horses competing in a race exceeds the numbering capacity of the totalizator, the racing secretary shall assign the highest pari-mutuel numbers to horses so that the highest numbered horse within the numbering capacity of the totalizator, together with horses of higher numbers, shall be grouped in the "mutuel field" as a single betting interest, and a wager on one (1) horse in the mutuel field shall be a wager on all horses in the same mutuel field.
Section 13. Emergency Situation. If any emergency arises in connection with the operation of the pari-mutuel department not provided for by this administrative regulation, the pari-mutuel manager shall make an immediate decision and shall by the quickest means possible notify the state steward and render a full report to the authority. (KSRC Ch. 11, 11.01 to.13; 1 Ky.R. 904; eff. 5-14-75; Am. 5 Ky.R. 625; eff. 3-7-79; 10 Ky.R. 671; eff. 12-2-83; 14 Ky.R. 620; eff. 11-6-87; 15 Ky.R. 2171; 16 Ky.R. 165; eff. 7-14-89; 18 Ky.R. 2003; eff. 3-3-92; 28 Ky.R. 476; 874; eff. 10-12-2001; TAm eff. 8-9-2007.)