CHAPTER 163

FORMERLY

HOUSE BILL NO. 497

AS AMENDED BY

HOUSE AMENDMENT NO. 1

AN ACT TO AMEND CHAPTER 3, TITLE 28, DELAWARE CODE, RELATING TO TAX ON ADMISSIONS, AND THE TAXES AND COMMISSIONS ON PARI-MUTUEL AND TOTALIZATOR POOLS AT HORSE RACING TRACKS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Chapter 3, Title 28, Delaware Code, by striking and deleting Section 330 in its entirety.

Section 2. Amend §365, Chapter 3, Title 28, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new §365 to read as follows:

§365. Tax on pari-mutuel and totalizator pools

(a) Every person engaged in the business of conducting a racing meet under this Chapter shall pay as a tax to this State the sum of ten thousand dollars ($10,000) for each day of racing conducted during such person's racing meet. Said tax shall be paid by certified check on a weekly basis. Each such check shall be transmitted by the licensee to the Secretary of Finance no later than Wednesday following the week for which the tax is due.

(b) Not later than ten (10) working days following the end of a racing meet conducted under this Chapter the licensee shall certify to the Commission the average daily pari-mutuel income received by the licensee during the meet. The 'average daily pari-mutuel income' for a racing meet shall be computed by dividing the sum of all commissions received by the licensee from each and every pari-mutuel and totalizator pool conducted during the meet by the total number of racing days conducted during the meet.

In the event that the average daily pari-mutuel income is greater than $145,000 but less than $160,000 the licensee shall pay to the State as an additional tax a sum equal to 20% of the average daily pari-mutuel income for each day of the meet in excess of $145,000 and less than $160,000.

In the event that the average daily pari-mutuel income is greater than $160,000 but less than $175,000, the licensee shall pay to the State as an additional tax a sum equal to 50% of the average daily pari-mutuel income for each day of the meet in excess of $160,000 and less than $175,000.

In the event that the daily pari-mutuel income is greater than $175,000 the licensee shall pay to the State as an additional tax a sum equal to 90% of the average daily pari-mutuel income for each day of the meet in excess of $175,000.

The additional taxes imposed by this subsection (b) shall be paid to the Secretary of Finance by certified check within fifteen (I5) wofrking days following the end of each racing meet conducted under this Chapter."

Section 3. Amend §366, Chapter 3, Title 28, Delaware Code, by striking said section in its entirety and substituting in lieu thereof a new §366 to read as follows:

"§366. Licensee's commissions on pari-mutuel and totalizator pools

(a) The commission shall authorize as gross commissions on pari-mutuel and totalizator pools to the licensee operating a racing meet under this Chapter 17% of the total contributions to all pari-mutuel and totalizator pools conducted or made at the racing meet and at every race or meeting, plus all of the odd cents of all redistributions to be made on all pari-mutuel and totalizator pool contributions exceeding the sum equal to the next lowest multiple of 10, such odd cents to be calculated on the basis of each dollar wagered. If a minus pool is created, the licensee may break to the lowest multiple of 5.

(b) In addition to the other commissions allowed by this section, every person engaged in the business of conducting a racing meet under this Chapter shall receive as a gross commission 2% of the total contributions to all dual pari-mutuel and totalizator pools conducted on each racing day on any and every race track licensed under this Chapter. Dual pari-mutuel and totalizator pool means a separate wagering pool in which an interest is represented by a single wager on two entries, and shall include, but not be limited to, daily doubles, exactas, quinellas, and perfectas.

(a) In addition to the other commissions allowed by this section, every person engaged in the business of conducting a racing meet under this Chapter shall receive as a gross commission 8% of the total contributions to all special pari-mutuel and totalizator pools conducted on each racing day on any and every race track licensed under this Chapter. Special pari-mutuel and totalizator pools means a separate wagering pool in which an interest is represented by a single wager on more than two entires, and shall include, but not be limited to, tri-perfectas, trifectas, twin doubles, and big exactas.

(a) From the gross commissions allowed by this section, the licensee may retain as its net commissions only those sums which remain after payment of the taxes imposed by §365 of this Chapter."

Approved July 15, 1977.