Or. Admin. Code § 462-220-0040

Current through Register Vol. 64, No. 1, January 1, 2025

Section 462-220-0040 - State of Oregon Share of the Pari-Mutuel Handle

In addition to the licensing fee set forth in OAR 462-220-0030(6), the hub operator shall pay to the Oregon Racing Commission the payments authorized by ORS 462.725(4)(b) on all gross mutuel wagering receipts recorded by the hub's totalizator system during the license period. The payments shall be made as follows:

(1) Payments shall be made each month based on the gross mutuel wagering receipts for that month.

(2) Payments shall be made in a timely manner as prescribed by the executive director of the commission.

(3) Payments shall be calculated according to one of the following formulas as elected by the hub operator in the manner specified in section (6):

(a) Payment of 0.125% of the first 60 million dollars in gross mutuel wagering receipts during the license period and 0.25% of the gross mutuel wagering receipts in excess of 60 million dollars during that period; or

(b) Payment of 0.25% of gross mutuel wagering receipts, except that, if the hub operator conducts business in a state where hubs are specifically authorized and the tax rate is less than 0.25%, the tax rate for wagers by the residents of such state would be that of the state in which they reside. This exception is limited to a single state designated by the hub operator in the manner specified in section (7).

(4) Advanced deposit wagering handle from past live racing products will be calculated separately from all other gross mutual wagering receipts recorded by the hub's totalizator system. These product wagering receipts will, however, follow the same payment structure as all other gross wagering receipts including the maximum payment set out in section (6).

(5) Each affiliate of a licensed multi-jurisdictional hub will follow the same payment structure as the licensed multi-jurisdictional hub including the maximum payment set out in section 6. The additional payments, as outlined in (3), will occur after the affiliate's first $20,000,000.00 in handle or after the licensee has reached their maximum payment, whichever occurs last. The first $20,000,000.00 of the affiliate's handle and any additional handle if the licensee has not yet reached their maximum payment is exempt from separate fee payments. The first $20,000,000.00 will nevertheless apply toward the licensee's maximum payment.

(6) The maximum payment for fiscal year 2023-2024 is $797,647.00. The maximum payment set out in section (6) will increase 2.5% on an annual basis for each fiscal year through 2029-2030 unless the commission changes that limit before the beginning of a fiscal year. Maximum payments through fiscal year 2029-2030 are calculated below.

Fiscal Year - Fee Payment Schedule:

2023-24 - $797,647.00

2024-25 - $817,588.18

2025-26 - $838,027.88

2026-27 - $858,978.58

2027-28 - $880,453.04

2028-29 - $902,464.37

2029-2030 - $925,025.97

(7) The hub operator shall state in its license application its election to pay tax calculated pursuant to section (3), subsections (a) or (b), for gross mutuel wagering, and shall also designate a state that is subject to the exception in section (3), subsection (b), if that formula is elected. The hub operator statement shall be made in its license application or at such other time as is specified by the Commission. Neither the payment formula nor the state subject to the exception may be changed during a license period without the prior approval of the Commission.

Or. Admin. Code § 462-220-0040

RC 3-2000, f. 3-27-00, cert. ef. 5-1-00; RC 1-2001, f. & cert. ef. 3-19-01; RC 4-2002, f. & cert. ef. 6-28-02; RC 3-2003, f. 6-13-03, cert. ef. 7-1-03; RC 4-2003, f. 6-20-03, cert. ef. 7-1-03; RC 3-2004, f. 6-23-04, cert. ef. 7-1-04; RC 1-2005, f. 5-23-05, cert. ef. 7-1-05; RC 2-2012, f. 5-29-12, cert. ef. 6-1-12; RC 3-2012, f. 10-9-12, cert. ef. 10-15-12; RC 2-2016, f. & cert. ef.5/9/2016; RC 8-2018, amend filed 12/10/2018, effective 12/10/2018; RC 2-2019, amend filed 10/10/2019, effective 10/10/2019; RC 2-2023, amend filed 03/02/2023, effective 3/2/2023; RC 5-2024, amend filed 02/23/2024, effective 2/23/2024

Statutory/Other Authority: ORS 462.270(3) & 462.725

Statutes/Other Implemented: ORS 462.725