CHAPTER 7. CONDUCT OF GAMBLING GAMES AT RACETRACKS
IC 4-35-7
Chapter 7. Conduct of Gambling Games at Racetracks
IC 4-35-7-1
Gambling games authorized at racetracks
Sec. 1. Gambling games authorized under this article may not beconducted anywhere other than a slot machine facility located at aracetrack.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-2
Age restrictions
Sec. 2. (a) A person who is less than twenty-one (21) years of agemay not wager on a slot machine.
(b) Except as provided in subsection (c), a person who is less thantwenty-one (21) years of age may not be present in the area of aracetrack where gambling games are conducted.
(c) A person who is at least eighteen (18) years of age and who isan employee of the racetrack may be present in the area of theracetrack where gambling games are conducted. However, anemployee who is less than twenty-one (21) years of age may notperform any function involving gambling by the patrons of thelicensee's slot machine facility.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-3
Minimum and maximum wagers
Sec. 3. Minimum and maximum wagers on gambling games shallbe determined by the licensee.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-4
Inspections
Sec. 4. The following may inspect a licensee's slot machinefacility at any time to determine if this article is being violated:
(1) Employees of the commission.
(2) Officers of the state police department.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-5
Presence of commission employees
Sec. 5. Employees of the commission have the right to be presentin a licensee's slot machine facility.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-6
Purchase or lease of slot machines
Sec. 6. A slot machine may be purchased or leased only from asupplier licensed under this article.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-7
Permitted forms of wagering
Sec. 7. Except as provided in section 14 of this chapter, slotmachine wagering is the only form of wagering permitted in alicensee's slot machine facility.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-8
Presence required for wagering
Sec. 8. Wagers may be received only from a person present in alicensee's slot machine facility. A person present in a licensee's slotmachine facility may not place or attempt to place a wager on behalfof a person who is not present in the licensee's slot machine facility.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-9
Permitted means of wagering
Sec. 9. (a) A patron may make a slot machine wager at a racetrackonly by means of:
(1) a token or an electronic card purchased from a licensee atthe licensee's racetrack; or
(2) money or other negotiable currency.
(b) A token or an electronic card may be purchased by means ofan agreement under which a licensee extends credit to the patron.
(c) All winnings and payoffs from a slot machine at a racetrack:
(1) shall be made in tokens, electronic cards, paper tickets, orother evidence of winnings and payoffs approved by thecommission; and
(2) may not be made in money or other negotiable currency.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-10
Use of tokens and electronic cards
Sec. 10. A token or an electronic card described in section 9 ofthis chapter may be used by a patron while the patron is present atthe racetrack only to make a wager on a slot machine authorizedunder this article.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-11
Commission approval required to exceed 2,000 slot machines
Sec. 11. A licensee may not install more than two thousand(2,000) slot machines on the premises of the licensee's racetrackwithout the approval of the commission.
As added by P.L.233-2007, SEC.21.
IC 4-35-7-12
Part of adjusted gross receipts that must be devoted to purses,horsemen's associations, and the gaming integrity fund
Sec. 12. (a) The Indiana horse racing commission shall enforce
the requirements of this section.
(b) Except as provided in subsections (j) and (k), a licensee shallbefore the fifteenth day of each month devote to the gaming integrityfund, horse racing purses, and to horsemen's associations an amountequal to fifteen percent (15%) of the adjusted gross receipts of theslot machine wagering from the previous month at the licensee'sracetrack. The Indiana horse racing commission may not use any ofthis money for any administrative purpose or other purpose of theIndiana horse racing commission, and the entire amount of themoney shall be distributed as provided in this section. A licenseeshall pay the first two hundred fifty thousand dollars ($250,000)distributed under this section in a state fiscal year to the Indianahorse racing commission for deposit in the gaming integrity fundestablished by IC 4-35-8.7-3. After this money has been distributedto the Indiana horse racing commission, a licensee shall distribute theremaining money devoted to horse racing purses and to horsemen'sassociations under this subsection as follows:
(1) Five-tenths percent (0.5%) shall be transferred to horsemen'sassociations for equine promotion or welfare according to theratios specified in subsection (e).
(2) Two and five-tenths percent (2.5%) shall be transferred tohorsemen's associations for backside benevolence according tothe ratios specified in subsection (e).
(3) Ninety-seven percent (97%) shall be distributed to promotehorses and horse racing as provided in subsection (d).
(c) A horsemen's association shall expend the amounts distributedto the horsemen's association under subsection (b)(1) through (b)(2)for a purpose promoting the equine industry or equine welfare or fora benevolent purpose that the horsemen's association determines isin the best interests of horse racing in Indiana for the breedrepresented by the horsemen's association. Expenditures under thissubsection are subject to the regulatory requirements of subsection(f).
(d) A licensee shall distribute the amounts described in subsection(b)(3) as follows:
(1) Forty-six percent (46%) for thoroughbred purposes asfollows:
(A) Sixty percent (60%) for the following purposes:
(i) Ninety-seven percent (97%) for thoroughbred purses.
(ii) Two and four-tenths percent (2.4%) to the horsemen'sassociation representing thoroughbred owners and trainers.
(iii) Six-tenths percent (0.6%) to the horsemen'sassociation representing thoroughbred owners andbreeders.
(B) Forty percent (40%) to the breed development fundestablished for thoroughbreds under IC 4-31-11-10.
(2) Forty-six percent (46%) for standardbred purposes asfollows:
(A) Fifty percent (50%) for the following purposes:
(i) Ninety-six and five-tenths percent (96.5%) for
standardbred purses.
(ii) Three and five-tenths percent (3.5%) to the horsemen'sassociation representing standardbred owners and trainers.
(B) Fifty percent (50%) to the breed development fundestablished for standardbreds under IC 4-31-11-10.
(3) Eight percent (8%) for quarter horse purposes as follows:
(A) Seventy percent (70%) for the following purposes:
(i) Ninety-five percent (95%) for quarter horse purses.
(ii) Five percent (5%) to the horsemen's associationrepresenting quarter horse owners and trainers.
(B) Thirty percent (30%) to the breed development fundestablished for quarter horses under IC 4-31-11-10.
Expenditures under this subsection are subject to the regulatoryrequirements of subsection (f).
(e) Money distributed under subsection (b)(1) and (b)(2) shall beallocated as follows:
(1) Forty-six percent (46%) to the horsemen's associationrepresenting thoroughbred owners and trainers.
(2) Forty-six percent (46%) to the horsemen's associationrepresenting standardbred owners and trainers.
(3) Eight percent (8%) to the horsemen's associationrepresenting quarter horse owners and trainers.
(f) Money distributed under this section may not be expendedunless the expenditure is for a purpose authorized in this section andis either for a purpose promoting the equine industry or equinewelfare or is for a benevolent purpose that is in the best interests ofhorse racing in Indiana or the necessary expenditures for theoperations of the horsemen's association required to implement andfulfill the purposes of this section. The Indiana horse racingcommission may review any expenditure of money distributed underthis section to ensure that the requirements of this section aresatisfied. The Indiana horse racing commission shall adopt rulesconcerning the review and oversight of money distributed under thissection and shall adopt rules concerning the enforcement of thissection. The following apply to a horsemen's association receiving adistribution of money under this section:
(1) The horsemen's association must annually file a report withthe Indiana horse racing commission concerning the use of themoney by the horsemen's association. The report must includeinformation as required by the commission.
(2) The horsemen's association must register with the Indianahorse racing commission.
(g) The commission shall provide the Indiana horse racingcommission with the information necessary to enforce this section.
(h) The Indiana horse racing commission shall investigate anycomplaint that a licensee has failed to comply with the horse racingpurse requirements set forth in this section. If, after notice and ahearing, the Indiana horse racing commission finds that a licenseehas failed to comply with the purse requirements set forth in thissection, the Indiana horse racing commission may: (1) issue a warning to the licensee;
(2) impose a civil penalty that may not exceed one milliondollars ($1,000,000); or
(3) suspend a meeting permit issued under IC 4-31-5 to conducta pari-mutuel wagering horse racing meeting in Indiana.
(i) A civil penalty collected under this section must be depositedin the state general fund.
(j) For a state fiscal year beginning after June 30, 2008, andending before July 1, 2009, the amount of money dedicated to thepurposes described in subsection (b) for a particular state fiscal yearis equal to the lesser of:
(1) fifteen percent (15%) of the licensee's adjusted grossreceipts for the state fiscal year; or
(2) eighty-five million dollars ($85,000,000).
If fifteen percent (15%) of a licensee's adjusted gross receipts for thestate fiscal year exceeds the amount specified in subdivision (2), thelicensee shall transfer the amount of the excess to the commission fordeposit in the state general fund. The licensee shall adjust thetransfers required under this section in the final month of the statefiscal year to comply with the requirements of this subsection.
(k) For a state fiscal year beginning after June 30, 2009, theamount of money dedicated to the purposes described in subsection(b) for a particular state fiscal year is equal to the lesser of:
(1) fifteen percent (15%) of the licensee's adjusted grossreceipts for the state fiscal year; or
(2) the amount dedicated to the purposes described insubsection (b) in the previous state fiscal year increased by apercentage that does not exceed the percent of increase in theUnited States Department of Labor Consumer Price Indexduring the year preceding the year in which an increase isestablished.
If fifteen percent (15%) of a licensee's adjusted gross receipts for thestate fiscal year exceeds the amount specified in subdivision (2), thelicensee shall transfer the amount of the excess to the commission fordeposit in the state general fund. The licensee shall adjust thetransfers required under this section in the final month of the statefiscal year to comply with the requirements of this subsection.
As added by P.L.233-2007, SEC.21. Amended by P.L.146-2008,SEC.21; P.L.142-2009, SEC.25.
IC 4-35-7-13
Restrictions on money distributed to horsemen's associations
Sec. 13. (a) The definitions in IC 3-5-2 apply to this section to theextent they do not conflict with the definitions in this article.
(b) As used in this section, "candidate" refers to any of thefollowing:
(1) A candidate for a state office.
(2) A candidate for a legislative office.
(3) A candidate for a local office.
(c) As used in this section, "committee" refers to any of the
following:
(1) A candidate's committee.
(2) A regular party committee.
(3) A committee organized by a legislative caucus of the houseof the general assembly.
(4) A committee organized by a legislative caucus of the senateof the general assembly.
(d) Money distributed to a horsemen's association under section12 of this chapter may not be used for any of the following purposes:
(1) To make a contribution to a candidate or a committee.
(2) For lobbying (as defined in IC 2-7-1-9).
As added by P.L.233-2007, SEC.21. Amended by P.L.95-2008,SEC.12.
IC 4-35-7-14
Pari-mutuel wagering on horse racing permitted in slot machinefacilities
Sec. 14. The commission may not prohibit a licensee fromallowing pari-mutuel wagering (as defined in IC 4-31-2-12) at thefacility at which gambling games are conducted under this article.
As added by P.L.233-2007, SEC.21.