Study Guide Pg 12-23

Question 1

A department representative shall close wagering for each contest after which time no Pari- mutuel tickets shall be sold for that contest. AAC R-19-2-515(A) Closing of wagering in a contest

Answer 1

Dept rep’s close wagering at post time (or if cancelled) and no further betting is allowed once closed.

Question 2

Horse officials - The permittee shall retain the balance of the total amounts deducted pursuant to subsection C of this section. Of the amount retained by the permitee, MINUS the amount payable to the permittee for capital improvements pursuant to section 5-111.02 - breakage distributed to the permittee pursuant to section 5-111.01 and other applicable state, country and city tranaction privelage or other taxes, unless otherwise agreed by written contract. 50 % shall be used for purses.

ARS 5-111(D)

Answer 2

50% of the net amount left over after taxes, improvments, breakage etc shall be put aside for purses

Question 3

The permittee may at the permittees descretion, pay additional amounts to augment purses from the amounts received by the permittee under this subsections

ARS 5-111(B)

Answer 3

TGP can pay more towards the purse than required if they want to

Question 4

The Racetrack permittee shall ensure that amounts wagered, in total for the other pools and on each betting interest or wager combination are displayed to the wagering public at intervals and in a manner approved by the dept. AAC R-19-2-509(B) Display of betting info

Answer 4

Amounts wagered in a pool need to be displayed to the public as well.

Question 5

Monies from charity racing days are exempt from the state percentage of the pari-mutuel pool prescribed in this section.

ARS 5-111(F)

Wagering percentage

Answer 5

Charity races don’t hav eto pay tax

Question 6

Define profit per dollar

Answer 6

Total profit divided by total net bet on winner

PP / winnig dollars = Unbroken price

Question 7

Define Net pool

Answer 7

Gross pool minus take out

Gross pool - Commission = Net pool

Question 8

Horse officials - The breakage deducted by a horse racing or harness racing permittee shall be distributed as follows:

1. 50% shall be retained by permitee
2. 25% shall be set aside by permittee to put into purse trust
3. 25% shall be set aside to supplement purses in races in which AZ bred horses are winners.

ARS 5-111.01(B)

Answer 8

he breakage deducted by a horse racing or harness racing permittee shall be distributed as follows:

1. 50% shall be retained by permitee
2. 25% shall be set aside by permittee to put into purse trust
3. 25% shall be set aside to supplement purses in races in which AZ bred horses are winners.

Question 9

A racetrack permittee shall ensure that odds or will-pay amounts for win pool betting are posted on display devices w/in view of the wagering public and updated at intervals of not more than 90 seconds. AAC R-19-2-509(A) Display of betting info

Answer 9

Odds must be displayed where the public can see and updated at least every 90 seconds

Question 10

Unless the dept otherwise provides, at the time the pools are opened for wagering, the racetrack permitee:

AAC R-19-2-513(A)

Pools dependent upon betting interests

Answer 10

Betting interest = Animal (dog/horse)

Permittee shall offer:

• Win wagering on all contests w/3 or more betting interests and may offer it w/2 or more betting interests
• Place wagering on all cotests w/4 or more betting interests and may offer it w/3 or more
• Show wagering on all contests w/5 or more betting interests but can offer it w4 or more

Permittee MAY offer:

• Quinella/ Quinella double/ Twin quinella wagering on all contestes w/3 or more betting interests
• Exacta wagering on all contestests w/2 or more betting interests
• Trifecta wagering on all contests w/3 or more betting interests
• Superfecta wagering on all contests w/4 or more betting interests
• Pick-N wagering on any consecutive contests that allow win wagering
• Place Pick-N wagering on any consecutive contests that allow place wagering

Permitee shall NOT offer:

• 1st or 2nd leg Twin Tri-superfecta wagering onany contests w/6 or fewer betting interests in either leg of the wager

Permittee may PROHIBIT

• Wagering on any particular contestant in stakes races if such exclusions are clearly indicated in the program.

Question 11

What circumstance would cause a profit split pool to become a single price pool

Answer 11

If there was not money bet in one of the pools it would become a single price pool.

Question 12

Before each racing meet, the racetrack permittee shall establish and submit to the department the pools to be offereed with each number of betting interests

AAC R-19-2-513(B)

Answer 12

Before the race starts, TGP (permittee) would provide the dept w/ how many animals will be running each race

Question 13

Define Gross pool

Answer 13

Sum of wagers on all betting interests munus refunds

Bets - refunds = Gross pool

Question 14

Dog officials: In all counties having a populations of 1,500,000 or more 4.75% of the gross amount of monies handled in a pari-mutuel pool shall be deducted from the pari-mutuel pool and shall be deposted daily into a trust account for payment of purse amounts.

ARS 5-111(B)

Answer 14

4.75% of the pool needs to go into a trust account so we have enough to pay out purses as needed.

Question 15

A permittee that desires to offer new forms of wagering must apply in writing to the department and receive written approval prior to implementing the new betting pool. AAC R-19-2-514(A)

Answer 15

TGP (permittee) has to submit in writting to the dept in advance if they want to offer new types of bettng and get written approval back prior to allowing the new betting types to be offered.

Question 16

Notwithstanding any other provision of this subsection, the percentage paid by a permittee to the state does not apply to monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races.

ARS 5-111(B)

Wagering percentage

Answer 16

If somone in AZ bets on a race in NJ- TGP does not have to pay tax to AZ - the racetrack in NJ would include those amounts in THEIR amount that is taxable to the state.

Question 17

The mutuel manager shall provide upon request, complete and detailed reports of each race day; including the handle of each race, the total handle and attendance, the payoffs on each race, breakage and commission, opening and closing lines, and seller’s shortages and overages

AAC r-19-2-519(C)

Mutuel Manager

Answer 17

If the department asks mutual manager must provide the handle (net) of each race and the total handle for the day, as well as attendance, payroffs, breakages, commission, opening and closing lines, seller’s shorts and overs.

Question 18

Horse officials - Unless otherwise agreed by written contract, 50% of the revenues received by the permittee from simulcasting races as provided in section 5-112, net of costs of advertising, shall be utilized as a supplement to the general purse structure.

ARS 5-111(D)

Answer 18

50% of simulcast revenues (minus cost of advertising) shall be set aside for Purses.

Question 19

What circumstance would cause a single-price pool to become a profit split pool and why

Answer 19

A dead-heat (tie) would cause the profits to be split between the winning dogs

Question 20

Dog officials: To encourage the improvement of racing facilities for the benefit of the public and dog owners, and ot increase the revenue to this state from the increase in pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee to the state purusuant to section 5-111(B) in connection with all racing meetings conducted by such permittee shall be reduced by 1% of the total amount wagered in connection with all racing meetings conduced in counties having a population of 500,000 persons or more according to the most recent US census and by 2% of the total amount wagered in connection with all racing meetings conducted in all other counties for those permittess who qualify for such reduction as provided in this section, and such amount shall be retained by those permittees.

ARS 5-111.03

Capital improvements at dog tracks

Answer 20

You get a tax break when you do renovations.

Question 21

In addition 25% of any reduction in pari-mutuel taxes each year resulting from the application of the hardship tax reduction credit determined pursuant to subsection I of this section shall be deposited in the trust account for supplementing purse amounts in an equitable manner over the racing meeting as determined by the commission.

ARS 5-111(B)

Answer 21

If you get the hardship tax credit- 25% of what you are SAVING needs to go into the trust to pay out purses.

Question 22

Define breakage

ARS 5-111.01

Breakages definition tax disposition

Answer 22

The odd cents by which the amount payable on each dollar wagered in a pari-mutuel pool exceeds a multiple of ten cents, except that in the case of minus pools breakage means the odd cents by which the amount payable exceeds multiple of 5 cents. A person liscensed under this chapter to conduct a racing meeting shall deduct the breakage from the pari-mutuel pool and such amounts shall be distributed as provided by law.

Question 23

When does TGP Cancel the pool?

AAC R-19-2-511 (A)(2)

Answer 23

Superfecta - 4 or fewer runners in race

Trifecta - 2 or fewer runners in race

Exacta - 1 or fewer runners in race

Quinella - 2 or fewer runners in race

Twin Trifecta - 2 or fewer runners in race

Trifecta-Super - 2 or fewer runners in race

Twin Quinella - 3 or fewer runners in the race

Pick - N - 1 or fewer runners in the race

Show pool - 3 or fewer runners in the race

Place pool - 2 or fewer runners in the race

Cancels ALL if there are 1 or fewer runners in the race.

Question 24

In counties having a population of less than 1,500,000 persons - 4% of the gross amount of monies handled in a pari-mutuel pool shall be deducted and placed daily in a trust for payment of purses

ARS 5-111(B)

Answer 24

4% of the pool needs to go into a trust account so we have enough to pay out purses as needed.

Question 25

The permittee's pari-mutuel tax due as otherwise determined under subsection B and D of this section shall be reduced for the current period and any future periods by an amount equal to the amount of the harship tax credit determined pursuant to this subsection. The hardship tax credit is in addition to any other tax exemptions, rebates and credits. ARS 5-111(I)(3) Wagering percentage

Answer 25

You pay less tax if you qualify for the hardship tax credit.

Question 26

What is TGP's Backup mechanism and procedure if the steward's lock fails . AAC R-19-2-515(B)

Answer 26

The tote room will lock the totes, if stewards lock continues to fail or the tote room lock also fails - racing would be cancelled for the night so repairs can be made.

Question 27

Horse Officials: The amounts if deducted shall be distributed as prescribed in subsection D of this section and section 5-111.02 for horse or harness racing permittees ARS 5-111C Wagering percentage

Answer 27

Amounts deducted should be distributed as outlied in 5-111D

Question 28

The mutuel manager shall be responsible for the correctness of all payoff prices posted on the odds board, subject to the limitations of nonfraudulent human and mechanical errors. In the event that a payoff is both incorrectly posted and paid, the mutuel manager shall file with the dept. a complete report explaining the circumastances prior to the next racing day. AAC R-19-2-519(A)

Answer 28

We are in charge of making sure all payoffs are correct, barring human and mech error- if it is not correct we need to file a report to the dept by the next day.

Question 29

Dog officials: For dog racing permittees, unless otherwise agreed by written contract, the permitteee shall allocate to purses from amounts that are deducted pusuant to the subsection in excess of 20% of the total amount handled in the regular pari-mutuel pools, 21% of the total amount handled in the exacta, daily double, quinella and other wagering pools involving 2 dogs - or 25% of the total amount handled in the trifecta or other waging pools involving more than 2 dogs in one or more races ARS 5-111(C) Wagering percentage

Answer 29

TGP takes out 21.85% in commission so 1.85% would be the "excess" TGP gets 20.925% and the purse = .925% (half of 1.85) this is based on all races conducted that night.

Question 30

Unbroken price

Answer 30

Profit per dollar whole number to 1st decimal (0. 0)0000000 = unbroken price (0. 0)= broken price \_.\_00000000 = breakage

Question 31

Unless otherwise agreed by written contract - if the commission reasonably determines that live racing will not be conducted w/in one calendar year at a racetrack enclosure - the permittee shall deduct from monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races and deposit daily in a trust account to supplement purses of any dog track where live racing is conducted w/in a 100 mile radius. ARS 5-111(B)

Answer 31

Unless otherwise agreed- If track A knows they won't run races in the next yet- but track B is w/in 100 mile radius- and track A is simulcasting- a portion of the monies paid into the pool at track A will have to go into the trust for Track B to pay out their purses.

Question 32

Define commission

Answer 32

The AZ racing commission

Question 33

All permittess and liscensees subject to the financial audit as prescribed by this secion shall afford resonable and needed facilities and make returns and exhibits to the department or audit firm in the form and at the time prescribed by the department. The auditor representing the department shall have access to all info, records, pari-mutuel betting devices and equipment necessary to conduct electronic data processing and other audits and reviews. The computer software and other proprietary info and records obtained by the auditor are not subject to disclosure and are exempt from title 39 chapter 1 ARS 5-104.01 Audits and special investigations

Answer 33

TGP can get a financial audit at any time- auditor can access all information/facilities and don't have to tell TGP what they will be looking at or why.

Question 34

Define pool adjustment

Answer 34

An adjustment made to numbers that can be proven

Question 35

In the event of an emergency in connection with the pari-mutuel dept not covered in these rules, the mutuel manager representing the permittee shall report the problem to the stewards and the permitee, and the stewards shall render a full report to the dept w/in 48 hours. AAC R-19-2-519(A)

Answer 35

If there is an emergancy not listed / w/o specific instructions in the AAC - then the mutual dept will work with the stewards and the permitee to put together a full report and submit it to the dept w/in 48 hours.

Question 36

Define settlement

Answer 36

Amounts coming in/out to pay winning tickets

Question 37

The permittee may suspend previously approved forms of wagering with the prior approval of the department. Any carryover shall be held until the suspended form of wagering is reinstated. A permittee may request approval of a form of wagering or separate wagering pool for specific performances. AAC R-19-2-514(B) Prior approval required for betting pools

Answer 37

A permitee (TGP) can stop offering forms of wagering even if approved by the dept previously. Any carryover shall be held until the stopped form of wagering is reestablished. TGP can also request approval of a form of wagering or seperate wagering pool for specific perfomances.

Question 38

Horse officials- During the period of a permit for horse or harness racing - the state shall recieve 2% of the gross amount of the first 1 million dollars sof the daily pari-mutuel pools and 5% of the gross amount exceeding 1 million dollars of the daily pari-mutuel pools ARS 5-111(D)

Answer 38

On the first 1 million dollars state gets 2% in taxes (20,000) Anything above that = 5% to the state

Question 39

The permittee shall allocate the funds in the trust account and pay purse amounts at least biweekly ARS 5-111(B)

Answer 39

Purse amounts should be paid out at least bi-weeky from the trust account.

Question 40

What is TGP's commission percentage for live wagering pools?

Answer 40

Win, Place, Show - 21.85% (0.2185) Daily double, Quinella, Exacta, Perfecta - 22.85% (0.2285) Trifecta, superfecta, pick-N, Twin-Tri, Tri-super, Big Q(twin quinella) - 25.85% (0.2585)

Question 41

Define return to public

Answer 41

Amount of money returned to public after breakage of whole pool (amount given to winners).

Question 42

What is a single pool price?

Answer 42

Pools where prices don't have to be split amoung other pools Win pool Daily double

Question 43

Notwithstanding other provisions of these rules, refunds of the entire pool shall be made on: 1. Win pools, Exacta pools, and first-half double pools, offered in contests in which the number of betting interests has been reduced to fewer than 2. 2. Place pools, Quinella pools, Trifecta Pools, First-half Quinella Double pools, first-half Twin Quinella pools, first- half Trifecta pools, and first-half tri-superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 3 3. Show pools, superfecta pools, and first-half twin superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 4 AAC R-19-2-511 (A)(1-3)

Answer 43

Refunds on entire pool are made when: Win pools, Exacta pools, and first-half double pools, offered in contests in which the number of betting interests has been reduced to fewer than 2. Place pools, Quinella pools, Trifecta Pools, First-half Quinella Double pools, first-half Twin Quinella pools, first- half Trifecta pools, and first-half tri-superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 3 or Show pools, superfecta pools, and first-half twin superfecta pools offered in contests in which the number of betting interests has been reduced to fewer than 4 AAC R-19-2-511 (A)(1-3)

Question 44

Dog officials: if three or more greyhounds are withdrawn or scratched in any one race the stewards may cancel said race. AAC R-19-2-317(E)(d) Rules of the race

Answer 44

If three or more dogs don't run (withdrawn/scratched) then stewards may decide to cancel the race

Question 45

Explain what is meant by a profit-split pool

Answer 45

Profits split between 2 or more pools Place pool Show pool

Question 46

Official results and payoffs must be displayed upon each contest being declared official. AAC R-19-2-509(C)

Answer 46

Results of races - once made official - need to be displayed to the public as soon as it is declared official.

Question 47

During the period of a permit for horse, harness or dog racing, the permittee which conducts such meeting may deduct up to and including 25% of the total amount handled in the regular pari-mutuel pools and may, at the permittee's option, deduct up to and including 30% of the total amount handled in the exacta, daily double, quinella and other wagering pools involving 2 horses or dogs, and up to and including 35% of the total amount handled in the trifecta or other wagering pools involving more than 2 horses or dog in one or more races ARS 5-111(C) Wagering percentage

Answer 47

Commission rates can be up to 25% -30 % for exacta daily double or quinella and other pools w/ 2 horses or dogs 35% for trifecta or other pools involving 2 or more horses and dogs

Question 48

Dog officials: During the period of any permit for dog racing in any county, the state shall receive 5.5% of all monies handled in the pari-mutuel pool operated by the permittee, to be paid daily during the racing meeting. ARS 5-111(B) Wagering percentage

Answer 48

5.5% of all pools go to the state in tax and need to be paid daily.

Question 49

Define Handle

Answer 49

Total amount of money contributed to all pari-mutuel pools by bettors.

Question 50

During a week in which a permittee conducts live racing at the permittee's raetrack enclosure, the permittee shall deduct from monies handled in a pari-mutuel pool for wagering on simulcasts of out-of-state races and deposit daily in a trust account for the payment of purse amounts the same percentage of the pari-mutuel pool as is deducted for purses for live races unless otherwise agreed by written contract. ARS 5-111(B)

Answer 50

If TGP deducts 5% for the purse trust on their live races, they need to also deduct 5% for the purse trust on their simulcast race bets.

Question 51

Horse officials: All amounts which are deducted from the pari-mutuel pool for purses pursuant to this section and sections 5-111.01 and 5-114 and revenues which are received from sumulcasting and which are to be used as a supplement to the general purse structure pursuant to this subsection shall be deposited daily into a trust account for the payment of purse amounts. ARS 5-111(D)

Answer 51

All amounts held aside for purses should be put into a trust account daily for that purpose.

Question 52

The breakage deducted by a dog racing permittee shall be retained by the dog racing permitee ARS 5-111.01 Breakage

Answer 52

We keep breakage amounts

Question 53

Horse Officials: All county fair racing meetings, whether conducted by county fair racing associations under the provision of this subsection or by an indivudal, corporation or association other than a county fair racing association, are exempt from the payment to the state of the percentage of the pari-mutuel pool presciebed by subsection D of this section and are also exempt from the provisions of section 5-111.01 ARS 5-111(E)

Answer 53

County Fair races don't have to pay the 2% tax on pools

Question 54

Dog Officials: For dog racing permittees the percentages perscribed in subsection B of this section shall be distributed to the state and to the trust account for payment of purse amounts and the permittee shall receive the balance. If the dog racing permittee has made capital improvements, the distribution to the state shall be adjusted as provided in section 5-111.03. monies deposited in the trust account for payment of purses pursuant to thes subsection shall be in addition to amounts deposited pursuant to subsection B of this section ARS 5-111(C) Wagering percentage

Answer 54

ddd

Question 55

Define profit pool

Answer 55

Net pool Minus totel net bet on winner Net pool - winning dollars = profit pool

Question 56

Horse officials: To encourage the improvement of racing facilities for the benefit of the public, breeders, and horse owners, and to increase the revenue to the state from the increase in pari-mutuel wagering resulting from such improvements, the percentage paid by a permittee to the state as provided in section 5-111 (D) shall be reduced by 1% of th etotal amount wagerd in connection with all racing meetings conducted in counties have a poplulation of 500,000 persons or more, according to the most recent USA decennial census, and by 2% of the total amount wagered in connection with all racing meetings conducted in all other counties for those permittees who make capital improvements to racetracks and such amount shall be retained by the permittees making such capital improvements. ARS 5-111.02 Capital imporvements at horse tracks

Answer 56

You get a tax break if you are upgrading/improving your race track.