Definition of advance deposit wagering modified, and advance deposit wagering proceeds provided.

A bill for an act

relating to pari-mutuel horse racing; modifying the definition of advance deposit

wagering; providing for certain advance deposit wagering proceeds; amending

Minnesota Statutes 2024, sections 240.01, subdivision 1b; 240.131, subdivision

6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 240.01, subdivision 1b, is amended to read:

Subd. 1b.

Advance deposit wager.

"Advance deposit wager" means a wager placed

through an advance deposit wagering provider on a horse race
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that is conducted outside of

the state
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.

Sec. 2.

Minnesota Statutes 2024, section 240.131, subdivision 6, is amended to read:

Subd. 6.

Source market fees; payment; distribution.

(a) It is the intent of the legislature

that the proceeds of advance deposit wagering authorized by this chapter be used to support

and improve the horse racing industry in Minnesota by improving purses, supporting

breeding, and ensuring that the industry is adequately regulated for the protection of all

participants.

(b) Source market fees shall be established by contract and are in addition to other

contractual fees such as host fees.

(c) Except as provided in paragraph
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(e)
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(f)
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, a class A or class B licensee shall pay all

source market fees it receives from an ADW provider as follows:

(1) 28 percent to a licensed racetrack that primarily conducts standardbred horse racing;

and

(2) 72 percent to a licensed racetrack that primarily conducts Thoroughbred and Quarter

Horse racing.

(d) Of the total source market fees received by a licensed racetrack under paragraph (c)
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for races conducted outside the state
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, at least 50 percent must be set aside for breeders

awards and purses. Of the amount set aside: (1) at least 33 percent shall be paid by the

racetrack to the state for deposit to the breeders fund and must be expended solely for

breeders awards in accordance with section
240.18, subdivisions 2
, paragraph (d), clause

(2), and 3, paragraph (b), clause (2); and (2) the remainder shall be paid by the racetrack to

purse accounts for races held at the racetrack pursuant to agreements between the racetrack

and the horsepersons' associations that represent a majority of the type of breed that races

at the track.

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(e) Of the total source market fees received by a licensed racetrack under paragraph (c)

for races conducted within the state, at least 50 percent must be set aside for purses and paid

by the racetrack to purse accounts for races held at the racetrack pursuant to agreements

between the racetrack and the horsepersons' associations that represent a majority of the

type of breed that races at the track.

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(e)
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(f)
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No source market fees shall be paid by a class A or class B licensee to a licensed

racetrack whose license has been revoked or not renewed under this chapter. In the event

that a racetrack's license has been revoked or not renewed, source market fees otherwise

payable to that racetrack by a class A or class B licensee under this section shall be paid to

the other licensed racetrack.