Indiana § 4-31-7-10 - Approval of limited mobile gaming systems

§ 4-31-7-10. Approval of limited mobile gaming systems

Sec. 10. (a) A permit holder may request approval from the commission to use a limited mobile gaming system in the pari-mutuel wagering conducted at the following facilities operated by the permit holder:

(1) A satellite facility.

(2) A simulcast facility located at the permit holder's racetrack.

(b) The commission may approve the use of a limited mobile gaming system to allow a patron to wager on pari-mutuel horse racing while present in a facility described in subsection (a). A patron may not transmit a wager using a mobile gaming device while present in any other location.

As added by P.L.229-2013, SEC.6.

IC 4-31-7.5Chapter 7.5. Advance Deposit Wagering

4-31-7.5-1Intent 4-31-7.5-2"Account holder" 4-31-7.5-3"Advance deposit wagering" 4-31-7.5-4"Advance deposit wagering account" 4-31-7.5-5"Communication by other electronic means" 4-31-7.5-6"Licensed SPMO" 4-31-7.5-7"Secondary pari-mutuel organization" 4-31-7.5-8"Source market fee" 4-31-7.5-9Advance deposit wagering permitted 4-31-7.5-10Licensed SPMO acceptance of advance deposit wagers 4-31-7.5-11Commission rules 4-31-7.5-12Licensed SPMO compliance with federal laws 4-31-7.5-13Secondary pari-mutuel organization license application 4-31-7.5-14Extra costs incurred by the commission 4-31-7.5-15Secondary pari-mutuel organization licenses 4-31-7.5-16Non-licensed secondary pari-mutuel organization prohibited from accepting Indiana wagers 4-31-7.5-17Age prohibition 4-31-7.5-18"Net source market fee"; fee payments; horse racing promotion 4-31-7.5-19Right of action against a secondary pari-mutuel organization

IC 4-31-7.5-1Intent Sec. 1. In enacting this chapter, it is the intent of the general assembly to recognize changes in technology for pari-mutuel wagering and to retain for the Indiana horse racing industry a part of revenues generated by Indiana residents on wagers placed with secondary pari-mutuel organizations.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-2"Account holder" Sec. 2. As used in this chapter, "account holder" means an Indiana resident who has established an advance deposit wagering account.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-3"Advance deposit wagering" Sec. 3. As used in this chapter, "advance deposit wagering" means a system of pari-mutuel wagering in which wagers of an account holder are debited and payouts are credited to an account established by the account holder, regardless of whether the wagers are made in person, by telephone, or through communication by other electronic means.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-4"Advance deposit wagering account" Sec. 4. As used in this chapter, "advance deposit wagering account" means an account for advance deposit wagering held by a licensed SPMO.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-5"Communication by other electronic means" Sec. 5. As used in this chapter, "communication by other electronic means" means communication by any electronic communication device, including any of the following:

(1) A personal computer or other device enabling communication through the Internet.

(2) A private network.

(3) An interactive television.

(4) A wireless communication technology.

(5) An interactive computer service (as defined in IC 35-45-5-1).

(6) Any other technology approved by the commission.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-6"Licensed SPMO" Sec. 6. As used in this chapter, "licensed SPMO" means a secondary pari-mutuel organization licensed under this chapter.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-7"Secondary pari-mutuel organization" Sec. 7. As used in this chapter, "secondary pari-mutuel organization" means an entity that offers advance deposit wagering.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-8"Source market fee" Sec. 8. As used in this chapter, "source market fee" refers to the amount of an advance deposit wager made on any race:

(1) through a licensed SPMO; and

(2) by an individual whose principal residence is within Indiana at the time the wager is made;

that a permit holder is entitled to receive from the licensed SPMO under the terms of the contract required by section 10 of this chapter between the licensed SPMO and each permit holder.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-9Advance deposit wagering permitted Sec. 9. Advance deposit wagering is permitted in Indiana, subject to this chapter and to rules adopted by the commission.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-10Licensed SPMO acceptance of advance deposit wagers Sec. 10. (a) A licensed SPMO may accept advance deposit wagers for races conducted within or outside Indiana. Advance deposit wagers made under this chapter are considered to have been made in Indiana.

(b) A licensed SPMO must have a single written contract signed by each permit holder. The contract must be approved by the commission. The contract must:

(1) specify the manner in which the amount of the source market fee is determined for each permit holder;

(2) govern all other aspects of the business relationship between the licensed SPMO and each permit holder; and

(3) contain a provision reserving all rights of horsemen's associations under the federal Interstate Horse Racing Act (15 U.S.C. 3001 et seq.).

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-11Commission rules Sec. 11. The commission shall adopt rules under IC 4-22-2 to implement this chapter. Rules adopted under this section may include rules that prescribe:

(1) procedures for verifying the age of an individual opening an advance deposit wagering account or placing a wager with a licensed SPMO;

(2) requirements for opening and administering advance deposit wagering accounts;

(3) a guarantee or acceptable surety that the full value of balances in an advance deposit wagering account will be paid;

(4) record keeping requirements;

(5) licensure procedures, including investigation of applicants, forms for licensure, and procedures for renewal; and

(6) civil penalties for violations of this chapter or the rules adopted by the commission.

As added by P.L.268-2017, SEC.12. Amended by P.L.93-2024, SEC.28.

IC 4-31-7.5-12Licensed SPMO compliance with federal laws Sec. 12. A licensed SPMO shall comply with all applicable federal laws.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-13Secondary pari-mutuel organization license application Sec. 13. A secondary pari-mutuel organization applying for a license under this chapter must provide the following to the commission:

(1) Written evidence of the approval to conduct advance deposit wagering that the organization has received from the appropriate regulatory authority in each state where the secondary pari-mutuel organization is licensed.

(2) A copy of a proposed contract executed by the applicant and each permit holder to satisfy the requirements of section 10 of this chapter.

(3) A nonrefundable application fee of five thousand dollars ($5,000).

(4) A complete application on a form prescribed by the commission.

(5) Any other information required by the commission.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-14Extra costs incurred by the commission Sec. 14. The commission may require an applicant to pay any costs incurred by the commission for background checks, investigation, and review of the license application that exceed five thousand dollars ($5,000).

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-15Secondary pari-mutuel organization licenses Sec. 15. (a) The commission may issue to a secondary pari-mutuel organization a license to offer advance deposit wagering to Indiana residents if the commission:

(1) finds that the applicant satisfies the requirements of this chapter and the rules adopted by the commission under section 11 of this chapter; and

(2) approves the contract submitted under section 13 of this chapter.

(b) The term of a license issued under this chapter is one (1) year.

(c) The annual license renewal fee is one thousand dollars ($1,000).

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-16Non-licensed secondary pari-mutuel organization prohibited from accepting Indiana wagers Sec. 16. A secondary pari-mutuel organization that is not licensed under this chapter may not accept a wager from an individual whose physical location is within Indiana at the time the wager is made.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-17Age prohibition Sec. 17. An individual less than twenty-one (21) years of age may not open, own, or have access to an advance deposit wagering account.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-18"Net source market fee"; fee payments; horse racing promotion Sec. 18. (a) As used in this section, "net source market fee" means the difference between:

(1) the amount of the source market fee received by a permit holder from a licensed SPMO; minus

(2) the amount of expenses incurred by the permit holder under this chapter.

(b) Each permit holder shall not later than the end of each month pay to the commission as an advance deposit wagering fee an amount equal to sixty percent (60%) of the net source market fee received from a licensed SPMO during the preceding month.

(c) The commission shall use twenty-five percent (25%) of the revenue received from advance deposit wagering fees under subsection (b) to promote horse racing at the state fair and county fairs.

(d) The commission shall use seventy-five percent (75%) of the revenue received to promote and encourage Indiana horse owner and horse trainer participation at a permit holder's horse racing facility as follows:

(1) Eight percent (8%) of the revenue described shall be distributed to the horsemen's association representing quarter horses.

(2) Forty-six percent (46%) of the revenue shall be distributed to the horsemen's association representing standardbred owners and trainers.

(3) Thirty-six and eight-tenths percent (36.8%) of the revenue shall be distributed to the horsemen's association representing thoroughbred owners and trainers.

(4) Nine and two-tenths percent (9.2%) of the revenue shall be distributed to the horsemen's association representing thoroughbred owners and breeders.

As added by P.L.268-2017, SEC.12.

IC 4-31-7.5-19Right of action against a secondary pari-mutuel organization Sec. 19. (a) A permit holder has a right of action against a secondary pari-mutuel organization that accepts a wager in violation of section 16 of this chapter.

(b) If the permit holder prevails in an action filed under this section, the permit holder is entitled to the following:

(1) An injunction to enjoin future violations of this chapter.

(2) Compensatory damages equal to any actual damage proven by the permit holder. If the permit holder does not prove actual damage, the permit holder is entitled to presumptive damages of five hundred dollars ($500) for each wager placed in violation of this chapter.

(3) The permit holder's reasonable attorney's fees and other litigation costs reasonably incurred in connection with the action.

(c) A secondary pari-mutuel organization that accepts a wager in violation of section 16 of this chapter submits to the jurisdiction of Indiana courts for purposes of this chapter.

As added by P.L.268-2017, SEC.12.

IC 4-31-8Chapter 8. Miscellaneous Operating Procedures

4-31-8-1Rules governing horse racing 4-31-8-2Camera to photograph each finish 4-31-8-3Identification of horse; burden of proof 4-31-8-4Alcohol breath test; qualifications for administration; procedure; sanctions 4-31-8-5Inspection of racetrack premises; certification 4-31-8-6"Horsemen's association" defined