CHAPTER 112 - DELAWARE RACING COMMISSION

AN ACT TO AMEND AN ACT ENTITLED "AN ACT TO. PROVIDE FOR THE REGULATION, CONTROL AND LICENSING OF HORSE RACING IN THE STATE OF DELAWARE, TO CREATE A DELAWARE RACING COMMISSION, AND TO PRESCRIBE ITS POWERS AND DUTIES AND PROVIDING FOR SALARIES AND EXPENSES THEREFOR, AND TO PROVIDE FOR THE FEES TO BE CHARGED AND TAXES TO BE COLLECTED FOR THE CONDUCT OF HORSE RACING WITHIN THE STATE OF DELAWARE AND THE DISPOSITION THEREOF", BEING CHAPTER 62 OF VOLUME 38, LAWS OF DELAWARE.

WHEREAS, Section 17 of Article II of the Constitution of the State of Delaware relating to the sale of lottery tickets, pool selling and other forms of gambling has been amended; and

WHEREAS, it is the purpose and intent of this Act to make effective this amendment, without uncertainty or delay.

Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. That an Act entitled "An Act To Provide For The Regulation, Control And Licensing Of Horse Racing In The State Of Delaware, To Create A Delaware Racing Commission, And To Prescribe Its Powers And Duties And Providing For Salaries And Expenses Therefor, And To Provide For The Fees To Be Charged And Taxes To Be Collected For The Conduct Of Horse Racing Within The State Of Delaware And The Disposition Thereof", being Chapter 62 of Volume 38, Laws of Delaware, be and the same is hereby amended by striking out and repealing Sections 3, 5, 6, 13 and 16 thereof, and by inserting in lieu thereof respectively the following new Sections to be known as Sections 3, 5, 6, 13 and 16:

Section 3. Before entering upon the discharge of the duties of his office, each member of the Commission shall take oath that he will well and faithfully execute all and singular the duties appertaining to his office according to the laws of the State and the rules and regulations adopted in accordance 'therewith, and, until wagering or betting on horse races shall be licensed under this Act by the Commission, shall give bond to the State of Delaware with personal or corporate security or securities approved by the Governor in the penalty of One Thousand Dollars ($1,000.00), and upon the licensing of wagering or betting on horse races at any race track, shall give bond to the State of Delaware with personal or corporate security or securities approved by the Governor in the penalty of One Hundred Thousand Dollars ($100,000.00), with the condition that he will well and faithfully execute and perform all and singular the duties appertaining to his office according to the laws of this State and the rules and regulations adopted in accordance therewith. Every such bond, when duly executed and approved, shall be filed in the office of the Secretary of State of the State of Delaware, and certified copies under the seal of the said Secretary of State may be used as evidence in any Court of this State. It shall be the duty of the Governor at all times when, in his opinion, the security or securities of any member of said Commission shall become or are likely to become invalid or insufficient, to demand and require such member of said Commission forthwith to renew his bond to the State of Delaware with security or securities to be approved by the Governor, in the penalty and according to the form prescribed in this section. Any member of said Coin-mission who shall fail to take oath and give bond with security or securities as aforesaid, within thirty days of the date of his appointment, or who shall fail to renew his bond with security or securities as aforesaid, within thirty days after the same shall have been demanded and required by the Governor, shall be deemed to be guilty of neglect of duty and shall be removable as hereinbefore provided.

Section 5. The salary of the Commission shall be One Dollar ($1.00) per annum until the Commission shall have issued a license for the making, conducting and selling of a pool or pools by the use of pari mutuel machines or totalizators under the provisions of this Act, and thereafter the salary of the members of the Commission shall be Five Hundred Dollars ($500.00) per annum. The salaries of clerks and other employees, and the rental of offices, and other expenses of the Commission shall not exceed the sum of Three Thousand Dollars ($3,000.00) per annum.

Any person or persons, association or corporation who shall be granted a license by the Commission to conduct a race meeting within the State of Delaware for any calendar year shall, at the time such license is granted, pay to the said Commission a fee of Five Thousand Dollars ($5,000.00).

Any person or persons, association or corporation, upon applying to the Commission for the granting of specified days during which racing may be conducted under this Act during any calendar year, shall, at the time of such application pay to the said Commission a fee of Three Thousand Dollars ($3,000.00).

Section 6. No person or persons, association or corporation shall thereafter hold or conduct any meeting within the State of Delaware whereat horse racing shall be permitted for any stake, purse or reward, except such person, association or corporation as shall be licensed by the Commission as hereinafter provided.

Section 13. Before the thirtieth days of June and December in each year, the Commission shall prepare and file with the State Treasurer a full and complete statement of its receipts and disbursements from all sources and shall pay over to the Treasurer of the State all monies in their hands, less the salaries and expenses of the Commission, less any other remittances herein provided; provided that the Commission may reserve and use any amount paid to it under the provisions of Section 5 of this Act for defraying the expenses of the Commission as defined in said Section until there shall have been paid to the Commission a further fee or fees under said Section 5, at which time the Commission shall pay over to the Treasurer of the State of Delaware any balance remaining in its hands from a fee or fees theretofore paid to it under said Section.

Section 16. Within the enclosure of any horse race meeting licensed and conducted under this Act, but not elsewhere, the wagering or betting on horse races by the use of pari mutuel machines or totalizators is hereby authorized and permitted.

The Delaware Racing Commission shall have power in its discretion, to grant a license or licenses to any person, firm or corporation, to make, conduct and sell pools by the use of pari mutuef machines or totalizators, for the purpose of receiving wagers or bets on horse races within the enclosure of any race meeting licensed and conducted under this Act, but not otherwise, under such regulations as the Commission shall prescribe.

The Commission shall have power to prescribe regulations governing the granting of applications for licenses, the granting of licenses, and the conditions under which any licensee may conduct, sell or make any such pool.

The qualification of any licensee shall be such as to afford a reasonable belief that the licensee will be financially responsible and will conduct the business of operating said pools in a proper and orderly manner. A licensee to make, conduct and sell pools by the use of pari mutuel machines or totalizators, may or may not be a person, association or corporation licensed to conduct a race meeting under this Act.

The Delaware Racing Commission shall have power to require the keeping of books and records by a licensee of a pari mutuel or totalizator pool in such form, or in such manner, as the Commission shall prescribe. The Commission shall also have the power to regulate the duties of any employee of any such licensee, and to visit, investigate, and to place expert accountants and such other persons as it may deem necessary in the office or place of business of any person, corporation or association licensed to operate a pari mutuel or totalizator pool for the purpose of satisfying itself that the Commission's rules and regulations are strictly complied with. The Commission shall also have power to issue, under the hand of its Chairman and the seal of The Commission, subpoenas for the attendance of witnesses and the production of books, papers and documents of a licensee, before the Commission, and to administer oath or affirmation to such witnesses whenever in the judgment of the said Commission it may be necessary for the effectual discharge of its duty. If any person shall refuse to obey any such subpoena, or to testify, or to produce any books, papers or documents, then any member of the Commission may apply to the Superior Court of the county in which he or the Commission may be sitting, and, thereupon, the said court shall issue its subpoena requiring said person to appear and testify, or to produce such books, papers and documents. Any person failing to obey or refusing to obey a subpoena of the said court shall be deemed guilty of contempt of court and shall be punished accordingly. False swearing on the part of any witness shall be deemed perjury and shall be punished as such.

All licenses for the operation of pari mutuel or totalizator pools shall be revocable at any time, without hearing, in the absolute discretion of the Delaware Racing Commission.

Every person, association or corporation engaged in the business of conducting a race meeting under this Act shall pay to the Delaware Racing Commission, for the use of the State of Delaware, a sum equal to three per cent (3%) of the total contributions to all pari mutuel and totalizator pools conducted or made on any and every race track licensed under this Act, and on every race at such track.

The Delaware Racing Commission may authorize commissions on pari mutuel or totalizator pools to the person, firm, or corporation operating the race meet, provided, however, that in no event and at no track licensed under this Act shall said commissions when added to the amount payable to the Delaware Racing Commission from such pools, for the use of the State of Delaware, exceed six percent (6%) of the total contributions to all pari mutuel or totalizator pools conducted or made upon any track, plus the odd cents of all redistributions to be made on all pari mutuel or totalizator pool contributions exceeding a sum equal to the next lowest multiple of five.

Whoever shall bet or wager, or receive any bet or wager of any money or valuable thing on the result of any race authorized by this Act, except within the enclosure of any race meeting licensed and conducted under this Act and by or through the means of a pari mutuel or totalizator pool, the conduct of which is duly licensed by the Delaware Racing Commission under this Act, shall be fined in a sum not exceeding One Thousand Dollars ($1,000.00) or imprisoned for a period not exceeding two years, or both, in the discretion of the court.

Section 2. All acts or parts of acts inconsistent herewith are hereby repealed so far as such inconsistency exists.

Approved February 6, 1935.