Are You Ready for State-Sponsored Pari-Mutuel Gambling?
Radio Commentary, 90.7, 91.7 New Life FM, January 25, 2013 – By Sue Ella Deadwyler
Good morning, Jim. Representative Harry Geisinger pre-filed H.R. 1 and H.B. 4 on November 15th. H.R. 1 is a proposed constitutional amendment to authorize pari-mutuel betting, which is the system of betting at horse tracks. Those betting on the winning horse share the total stakes, but the management keeps a percentage of the take.
As a proposed constitutional amendment, H.R. 1 requires two-thirds vote in both House and Senate and, if passed, would be a referendum for voters to decide on the 2014 ballot. If the constitutional amendment is adopted by a majority of voters, H.B. 4 would be enacted to govern and regulate horse racing pari-mutuel betting in Georgia. So, this is what would happen.
Mr. Geisinger’s H.B. 4 would authorize the governor to appoint a seven-member racing commission that must be confirmed by the House and Senate. Initial terms of commissioners would be staggered, with future terms set at five years and possible unlimited reappointment. Senators and representatives would NOT be eligible, while serving in the General Assembly.
Each commissioner would get $173 per diem, plus $.555 per mile travel expense, meaning each of those unlimited meeting days would cost at least $1,211 plus travel, plus meeting space, plus staff. Then, the appointed commissioners could do some appointing themselves. They could appoint stewards, chemists, veterinarians, inspectors, accountants, guards and “other necessary employees” and set salaries and benefits that must be paid whether or not a dollar is ever made from horse racing.
The Bureau of Labor Statistics reports salaries for those positions as follows: Experienced chemists, up to $66,954, others earn from $45,147 to $50,992, typically beginning at $45,000, depending on the location; for veterinarians, $47,422 to $104,844; accountants from $30,432 to $63,286. A major flaw in the bill is the absence of a ceiling on salaries to be paid or the number of individuals that may be hired in each category.
The Commission would establish and maintain a business office, hire a full-time executive secretary and any number of employees. They would issue business licenses, write their own rules, regulations and policies, as well as govern audio/video simulcasts of horse races. Holders of unlimited licenses must schedule at least 60 live racing days per year and, as a nod to compulsive gambling, the Commission would post a Gamblers Anonymous contact number.
Advance deposit account wagering would be authorized and a ten percent tax on bets would be divided between licensees and horsemen groups. The Georgia Breeders Funds get another one-percent and the Commission decides how much state and federal income tax is withheld from winnings. This system of wagering includes online facilities that accept bets on horse races once the gambler’s account has been funded, hence the need for experienced accountants.
This is only the beginning of this debate. Since these bills have not been officially introduced yet and there’s no committee assignment, please express your opposition to Speaker Ralston at 404 656-5020 and Representative Geisinger at 404 656-0254 or fax him at 404 651-8086. For Georgia Insight I’m Sue Ella Deadwyler, your Capitol correspondent.