KRS 230.380: Simulcast facilities -- Restrictions and prohibitions -- Tax implications --

Percentage of wagers to local economic development -- Commissions -- Report

on money expended.

(1) Any track licensed by the corporation to conduct horse racing and desiring to

establish a simulcast facility shall apply for and may receive approval from the

corporation for each simulcast facility. Prior to considering an application for

approval of a simulcast facility, the corporation shall notify by regular mail, ea ch

state senator, state representative, county judge/executive, and mayor in the

jurisdiction in which the proposed simulcast facility is located, at least ten (10) days

in advance of the corporation meeting at which the application is to be considered

or voted upon. Consideration of an application shall be based on criteria contained

in administrative regulations promulgated under KRS 230.300. Approval, if

granted, shall be granted for a term of one (1) calendar year.

(2) A track or tracks may proceed with the establishment of a simulcast facility unless,

within sixty (60) days of the date on which the corporation approved the facility,

the governing body of the local government jurisdiction in which the facility is to

be located votes, by simple majority o f those voting, to disapprove the

establishment of the simulcast facility. For the purposes of this section, "governing

body" means, in an incorporated area, the board of aldermen, city council or board

of commissioners; in a county, the fiscal court; in a n urban-county government, the

urban-county council, or in a charter county, the legislative body created in

accordance with KRS 67.825 to 67.875.

(3) The corporation shall not approve the establishment of any simulcast facility within

a radius of fifty (5 0) miles of a licensed track. The corporation may approve the

establishment of one (1) simulcast facility within a radius of greater than fifty (50)

miles but less than seventy -five (75) miles of a licensed track, but the facility shall

not be approved to operate without the prior written consent of the licensed track

within whose seventy-five (75) mile radius the facility is located.

(4) The corporation may promulgate administrative regulations as it deems appropriate

to protect the integrity of pari-mutuel wagering at any simulcast facility.

(5) Licensed tracks conducting horse racing may enter into joint agreements to

establish or operate one (1) or more simulcast facilities, on terms and conditions as

the participating tracks may determine. Any agreement s respecting these

arrangements shall be filed with the corporation, and applications for simulcast

facilities shall be filed by and licenses may be issued to, these licensed tracks by the

corporation.

(6) A simulcast facility may be established and operat ed on property that is owned or

leased and which is not used solely for the operation of a simulcast facility;

provided however, that a simulcast facility may not be established on the premises

of a lottery vendor.

(7) A simulcast facility shall not be subject to and shall not pay any excise tax imposed

pursuant to KRS 138.510, or any license tax imposed under KRS 137.170.

(8) One percent (1%) of all moneys wagered at a simulcast facility shall be dedicated

for local economic development and shall be allocated as follows:

(a) If a simulcast facility is located in an incorporated area, seventy -five percent

(75%) shall be allocated to the governing body of the city in which the facility

is located, and twenty-five percent (25%) to the governing body of the cou nty

in which the facility is located.

(b) If a simulcast facility is located in an unincorporated area, all moneys shall be

allocated to the governing body of the county or charter county in which the

facility is located.

(9) (a) After the deduction of moneys under subsection (8) of this section, simulcast

facility shall deduct a commission allowed under KRS 230.3615 with respect

to all wagers made at the simulcast facility. The commission, less moneys

allocated in subsection (8) of this section, shall be split as follows:

1. Thirty percent (30%) shall be allocated to the host track;

2. Forty-six and one-half percent (46.5%) to the purse program at the host

track;

3. Thirteen and one -half percent (13.5%) to be retained by the track or

tracks owning the simulcast facility for the purpose of application to

expenses incurred in connection therewith;

4. Six percent (6%) to be allocated to the Kentucky Thoroughbred Owners

and Breeders, Inc., to be expended as follows:

a. Up to three perce nt (3%) for capital improvements and promotion

of off-track betting; and

b. The remainder for marketing and promoting the Kentucky

Thoroughbred industry; and

5. Four percent (4%) to be allocated to the corporation to be used for

purses at county fairs in K entucky licensed and approved by the

corporation, and for the standardbred sires stakes program established

under KRS 230.770.

(b) The commission of a simulcast facility derived from interstate wagering shall

be reduced by any amounts required to be paid b y contract to the host track or

track conducting the live race before it is divided as set forth in this section.

No simulcast facility may receive any interstate simulcast except with the

approval of the live Kentucky host track.

(c) The Kentucky Thoroughbred Owners and Breeders, Inc., shall annually report

to the corporation on all money expended in accordance with subsection

(9)(a)4. of this section. The report shall be in the form required, and provide

all information required by the corporation.

(10) Subsections (1) and (2) of this section shall also apply to the establishment by a

track of a noncontiguous facility in a county in which pari -mutuel racing and

wagering is not being conducted. Subsection (8) of this section shall also apply to a

noncontiguous race track facility referenced in this subsection, unless there is a

written agreement to the contrary between the track establishing the facility and the

governing body of the local government jurisdiction in which the facility is to be

established.