15 USC CHAPTER 57 - INTERSTATE HORSERACING

LEGAL

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

                    CHAPTER 57 - INTERSTATE HORSERACING               

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    Sec.                                                    

    3001.       Congressional findings and policy.                   

    3002.       Definitions.                                         

    3003.       Acceptance of interstate off-track wager.            

    3004.       Regulation of interstate off-track wagering.         

    3005.       Liability and damages.                               

    3006.       Civil action.                                        

    3007.       Jurisdiction and venue.                              

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    15 USC Sec. 3001                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

    Sec. 3001. Congressional findings and policy

-STATUTE-

      (a) The Congress finds that -

        (1) the States should have the primary responsibility for

      determining what forms of gambling may legally take place within

      their borders;

        (2) the Federal Government should prevent interference by one

      State with the gambling policies of another, and should act to

      protect identifiable national interests; and

        (3) in the limited area of interstate off-track wagering on

      horseraces, there is a need for Federal action to ensure States

      will continue to cooperate with one another in the acceptance of

      legal interstate wagers.

      (b) It is the policy of the Congress in this chapter to regulate

    interstate commerce with respect to wagering on horseracing, in

    order to further the horseracing and legal off-track betting

    industries in the United States.

-SOURCE-

    (Pub. L. 95-515, Sec. 2, Oct. 25, 1978, 92 Stat. 1811.)

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                              EFFECTIVE DATE                         

      Section 9 of Pub. L. 95-515 provided that:

      "(a) The provisions of this Act [this chapter] shall take effect

    on the date of enactment of this Act [Oct. 25, 1978], and, except

    as provided in subsection (b) of this section, shall apply to any

    interstate off-track wager accepted on or after such date of

    enactment.

      "(b)(1) The provisions of this Act [this chapter] shall not apply

    to any interstate off-track wager which is accepted pursuant to a

    contract existing on May 1, 1978.

      "(2) The provisions of this Act shall not apply to any form of

    legal non-parimutuel off-track betting existing in a State on May

    1, 1978.

      "(3) The provisions of subsection (b) of section 5 of this Act

    [section 3004(b) of this title] shall not apply to any parimutuel

    off-track betting system existing on May 1, 1978, in a State which

    does not conduct parimutuel horseracing on the date of enactment of

    this Act [Oct. 25, 1978]."

                                SHORT TITLE                           

      Section 1 of Pub. L. 95-515 provided that: "This Act [enacting

    this chapter] may be cited as the 'Interstate Horseracing Act of

    1978'."

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    15 USC Sec. 3002                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

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    Sec. 3002. Definitions

-STATUTE-

      For the purposes of this chapter the term -

        (1) "person" means any individual, association, partnership,

      joint venture, corporation, State or political subdivision

      thereof, department, agency, or instrumentality of a State or

      political subdivision thereof, or any other organization or

      entity;

        (2) "State" means each State of the United States, the District

      of Columbia, the Commonwealth of Puerto Rico, and any territory

      or possession of the United States;

        (3) "interstate off-track wager" means a legal wager placed or

      accepted in one State with respect to the outcome of a horserace

      taking place in another State and includes pari-mutuel wagers,

      where lawful in each State involved, placed or transmitted by an

      individual in one State via telephone or other electronic media

      and accepted by an off-track betting system in the same or

      another State, as well as the combination of any pari-mutuel

      wagering pools;

        (4) "on-track wager" means a wager with respect to the outcome

      of a horserace which is placed at the racetrack at which such

      horse- race takes place;

        (5) "host State" means the State in which the horserace subject

      to the interstate wager takes place;

        (6) "off-track State" means the State in which an interstate

      off-track wager is accepted;

        (7) "off-track betting system" means any group which is in the

      business of accepting wagers on horseraces at locations other

      than the place where the horserace is run, which business is

      conducted by the State or licensed or otherwise permitted by

      State law;

        (8) "off-track betting office" means any location within an off-

      track State at which off-track wagers are accepted;

        (9) "host racing association" means any person who, pursuant to

      a license or other permission granted by the host State, conducts

      the horserace subject to the interstate wager;

        (10) "host racing commission" means that person designated by

      State statute or, in the absence of statute, by regulation, with

      jurisdiction to regulate the conduct of racing within the host

      State;

        (11) "off-track racing commission" means that person designated

      by State statute or, in the absence of statute, by regulation,

      with jurisdiction to regulate off-track betting in that State;

        (12) "horsemen's group" means, with reference to the applicable

      host racing association, the group which represents the majority

      of owners and trainers racing there, for the races subject to the

      interstate off-track wager on any racing day;

        (13) "parimutuel" means any system whereby wagers with respect

      to the outcome of a horserace are placed with, or in, a wagering

      pool conducted by a person licensed or otherwise permitted to do

      so under State law, and in which the participants are wagering

      with each other and not against the operator;

        (14) "currently operating tracks" means racing associations

      conducting parimutuel horseracing at the same time of day

      (afternoon against afternoon; nighttime against nighttime) as the

      racing association conducting the horseracing which is the

      subject of the interstate off-track wager;

        (15) "race meeting" means those scheduled days during the year

      a racing association is granted permission by the appropriate

      State racing commission to conduct horseracing;

        (16) "racing day" means a full program of races at a specified

      racing association on a specified day;

        (17) "special event" means the specific individual horserace

      which is deemed by the off-track betting system to be of

      sufficient national significance and interest to warrant

      interstate off-track wagering on that event or events;

        (18) "dark days" means those days when racing of the same type

      does not occur in an off-track State within 60 miles of an off-

      track betting office during a race meeting, including, but not

      limited to, a dark weekday when such racing association or

      associations run on Sunday, and days when a racing program is

      scheduled but does not take place, or cannot be completed due to

      weather, strikes and other factors not within the control of the

      off-track betting system;

        (19) "year" means calendar year;

        (20) "takeout" means that portion of a wager which is deducted

      from or not included in the parimutuel pool, and which is

      distributed to persons other than those placing wagers;

        (21) "regular contractual process" means those negotiations by

      which the applicable horsemen's group and host racing association

      reach agreements on issues regarding the conduct of horseracing

      by the horsemen's group at that racing association;

        (22) "terms and conditions" includes, but is not limited to,

      the percentage which is paid by the off-track betting system to

      the host racing association, the percentage which is paid by the

      host racing association to the horsemen's group, as well as any

      arrangements as to the exclusivity between the host racing

      association and the off-track betting system.

-SOURCE-

    (Pub. L. 95-515, Sec. 3, Oct. 25, 1978, 92 Stat. 1811; Pub. L. 106-

    553, Sec. 1(a)(2) [title VI, Sec. 629], Dec. 21, 2000, 114 Stat.

    2762, 2762A-108.)

-MISC1-

                                AMENDMENTS                           

      2000 - Par. (3). Pub. L. 106-553 inserted "and includes pari-

    mutuel wagers, where lawful in each State involved, placed or

    transmitted by an individual in one State via telephone or other

    electronic media and accepted by an off-track betting system in the

    same or another State, as well as the combination of any pari-

    mutuel wagering pools" after "another State".

-End-

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    15 USC Sec. 3003                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

    Sec. 3003. Acceptance of interstate off-track wager

-STATUTE-

      No person may accept an interstate off-track wager except as

    provided in this chapter.

-SOURCE-

    (Pub. L. 95-515, Sec. 4, Oct. 25, 1978, 92 Stat. 1813.)

-End-

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    15 USC Sec. 3004                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

    Sec. 3004. Regulation of interstate off-track wagering

-STATUTE-

    (a) Consent of host racing association, host racing commission, and

      off-track racing commission as prerequisite to acceptance of

      wager

      An interstate off-track wager may be accepted by an off-track

    betting system only if consent is obtained from -

        (1) the host racing association, except that -

          (A) as a condition precedent to such consent, said racing

        association (except a not-for-profit racing association in a

        State where the distribution of off-track betting revenues in

        that State is set forth by law) must have a written agreement

        with the horsemen's group, under which said racing association

        may give such consent, setting forth the terms and conditions

        relating thereto; provided,

          (B) that where the host racing association has a contract

        with a horsemen's group at the time of enactment of this

        chapter which contains no provisions referring to interstate

        off-track betting, the terms and conditions of said then-

        existing contract shall be deemed to apply to the interstate

        off-track wagers and no additional written agreement need be

        entered into unless the parties to such then-existing contract

        agree otherwise. Where such provisions exist in such existing

        contract, such contract shall govern. Where written consents

        exist at the time of enactment of this chapter between an off-

        track betting system and the host racing association providing

        for interstate off-track wagers, or such written consents are

        executed by these parties prior to the expiration of such then-

        existing contract, upon the expiration of such then-existing

        contract the written agreement of such horsemen's group shall

        thereafter be required as such condition precedent and as a

        part of the regular contractual process, and may not be

        withdrawn or varied except in the regular contractual process.

        Where no such written consent exists, and where such written

        agreement occurs at a racing association which has a regular

        contractual process with such horsemen's group, said agreement

        by the horsemen's group may not be withdrawn or varied except

        in the regular contractual process;

        (2) the host racing commission;

        (3) the off-track racing commission.

    (b) Approval of tracks as prerequisite to acceptance of wager;

      exceptions

      (1) In addition to the requirement of subsection (a) of this

    section, any off-track betting office shall obtain the approval of -

            (A) all currently operating tracks within 60 miles of such off-

      track betting office; and

        (B) if there are no currently operating tracks within 60 miles

      then the closest currently operating track in an adjoining State.

      (2) Notwithstanding the provisions of paragraph (1) of this

    subsection, any off-track betting office in a State with at least

    250 days of on-track parimutuel horseracing a year, may accept

    interstate off-track wagers for a total of 60 racing days and 25

    special events a year without the approval required by paragraph

    (1), if with respect to such 60 racing days, there is no racing of

    the same type at the same time of day being conducted within the

    off-track betting State within 60 miles of the off-track betting

    office accepting the wager, or such racing program cannot be

    completed. Excluded from such 60 days and from the consent required

    by subsection (b)(1) of this section may be dark days which occur

    during a regularly scheduled race meeting in said off-track betting

    State. In order to accept any interstate off-track wager under the

    terms of the preceding sentence the off-track betting office shall

    make identical offers to any racing association described in

    subparagraph (A) of subsection (b)(1) of this section. Nothing in

    this subparagraph shall be construed to reduce or eliminate the

    necessity of obtaining all the approvals required by subsection (a)

    of this section.

    (c) Takeout amount

      No parimutuel off-track betting system may employ a takeout for

    an interstate wager which is greater than the takeout for

    corresponding wagering pools of off-track wagers on races run

    within the off-track State except where such greater takeout is

    authorized by State law in the off-track State.

-SOURCE-

    (Pub. L. 95-515, Sec. 5, Oct. 25, 1978, 92 Stat. 1813.)

-End-

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    15 USC Sec. 3005                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

    Sec. 3005. Liability and damages

-STATUTE-

      Any person accepting any interstate off-track wager in violation

    of this chapter shall be civilly liable for damages to the host

    State, the host racing association and the horsemen's group.

    Damages for each violation shall be based on the total of off-track

    wagers as follows:

        (1) If the interstate off-track wager was of a type accepted at

      the host racing association, damages shall be in an amount equal

      to that portion of the takeout which would have been distributed

      to the host State, host racing association and the horsemen's

      group, as if each such interstate off-track wager had been placed

      at the host racing association.

        (2) If such interstate off-track wager was of a type not

      accepted at the host racing association, the amount of damages

      shall be determined at the rate of takeout prevailing at the off-

      track betting system for that type of wager and shall be

      distributed according to the same formulas as in paragraph (1)

      above.

-SOURCE-

    (Pub. L. 95-515, Sec. 6, Oct. 25, 1978, 92 Stat. 1814.)

-End-

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    15 USC Sec. 3006                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

    Sec. 3006. Civil action

-STATUTE-

    (a) Parties; remedies

      The host State, the host racing association, or the horsemen's

    group may commence a civil action against any person alleged to be

    in violation of this chapter, for injunctive relief to restrain

    violations and for damages in accordance with section 3005 of this

    title.

    (b) Intervention

      In any civil action under this section, the host State, the host

    racing association and horsemen's group, if not a party, shall be

    permitted to intervene as a matter of right.

    (c) Limitations

      A civil action may not be commenced pursuant to this section more

    than 3 years after the discovery of the alleged violation upon

    which such civil action is based.

    (d) State as defendant

      Nothing in this chapter shall be construed to permit a State to

    be sued under this section other than in accordance with its

    applicable laws.

-SOURCE-

    (Pub. L. 95-515, Sec. 7, Oct. 25, 1978, 92 Stat. 1814.)

-End-

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    15 USC Sec. 3007                                            01/03/2007

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    TITLE 15 - COMMERCE AND TRADE

    CHAPTER 57 - INTERSTATE HORSERACING

-HEAD-

    Sec. 3007. Jurisdiction and venue

-STATUTE-

    (a) District court jurisdiction

      Notwithstanding any other provision of law, the district courts

    of the United States shall have jurisdiction over any civil action

    under this chapter, without regard to the citizenship of the

    parties or the amount in controversy.

    (b) Venue; service of process

      A civil action under this chapter may be brought in any district

    court of the United States for a district located in the host State

    or the off-track State, and all process in any such civil action

    may be served in any judicial district of the United States.

    (c) Concurrent State court jurisdiction

      The jurisdiction of the district courts of the United States

    pursuant to this section shall be concurrent with that of any State

    court of competent jurisdiction located in the host State or the

    off-track State.

-SOURCE-

    (Pub. L. 95-515, Sec. 8, Oct. 25, 1978, 92 Stat. 1814.)

-End-