OAR 462-220-0055: Handicapping Contests

An advanced deposit wagering hub licensee may offer handicapping contests to its patrons subject to the requirements of this division and 31 U.S.C. 5361 et seq: (1) Participants in the handicapping contests are subject to the same residency and age verification as any other multi-jurisdictional account. (2) Handicapping contest accounts are subject to the same oversight as any other multi-jurisdictional account including, but not limited to audits, reporting and technology reviews. (3) The contest wager is a separate pari-mutuel pool entry established by the licensee on a designated number of races. The gross pool consists of the total amount of entry fees generated by each contest. Prizes are distributed based upon scoring rules and prize parameters for each contest. (4) A valid contest entry is evidence of a binding contract between the holder of the entry and the advance deposit wagering hub licensee and constitutes an acceptance of entry provisions and rules contained in this chapter. (5) An entry may not be retracted within two hours of post time unless otherwise approved by the commission except in accordance with previously published rules. A contest entry may be canceled only with the approval of the licensee. (6) A licensee may establish a minimum and maximum number of entries per contest. If the minimum number of entries are not received, the licensee may cancel and refund all entries in that contest. (7) A licensee may limit the number of entries per wagerer. The maximum entries per wagerer for each contest must be published in advance of the opening of the contest. (8) Contest wagers must be conducted as follows: (a) Win/place and win/place/show contest: (A) Wagerers select one or more primary betting interests for each designated contest race in accordance with published contest rules. (B) Wagerers may select an alternate betting interest in accordance with published contest rules. If there is a scratch of the wagerer's primary selection, the alternate will be substituted. If there is also a scratch of the wagerer's alternate selection, or if no alternate selection has been made, the selection will default to the remaining betting interest with the best post time odds as determined by win pool odds. (C) Wagerers accrue earnings based on the actual pari-mutuel win, place, or show payouts for any correct selections, determined from tote payouts, based on a Win/place or win/place/show wager of a dollar value established by the licensee in advance of the contest. The licensee may establish maximum earnings in advance of the opening of the contest. As an example, for a two-dollar win/place/show contest, the maximum payout may be forty-two dollars for a successful win selection, twenty-two dollars for a successful place selection, and twelve dollars for a successful show selection. (D) Tie breaker rules shall be approved by the Oregon Racing Commission and shall be displayed on the handicapping contest site. (b) Survivor contest: (A) Wagerers select one primary betting interest for each designated contest race. Wagerers remain in the contest if the wagerer's betting interest finishes in a win, place, or show position. A wagerer may remain in a contest if the wagerer's betting interest finishes in either second or third position where place and/or show wagering has been canceled by the track if provided by published contest rules. Wagerers whose betting interest does not finish win, place, or show must be eliminated from the contest. If no wagerers select a betting interest finishing win, place or show in a designated contest race, the licensee may continue the contest to the next race with all then remaining wagerers if provided by published contest rules. (B) Wagerers may select an alternate betting interest. If there is a scratch of the wagerer's primary selection, the alternate will be substituted. If there is also a scratch of the wagerer's alternate selection, or if no alternate selection has been made, the selection will default to the remaining betting interest with the best post time odds as determined by win pool odds. (C) Wagerers earn one point per correct selection of a betting interest finishing in a win, place, or show position as determined by existence of a pari-mutuel payout for that position. (D) If the size of the field or other circumstances produce only win/place or only win payouts, only those horses will be considered correct selections for the purposes of scoring, unless specified by published contest rules. (E) In the discretion of the licensee, tiebreakers may be applied in survivor contests pursuant to the terms published in advance of the opening of the contest. (F) Pari-mutuel distributions are made at the conclusion of the contests that are based on the pari-mutuel distribution schedule published by the licensee in advance of the opening of the contest. (c) Exacta box contest: (A) Wagerers select three primary betting interests for each designated contest race. (B) Wagerers may select an alternate betting interest for each of their three primary selections. If there is a scratch of the wagerer's primary selection, the alternate will be substituted. If there is also a scratch of the wagerer's alternate selection, or if no alternate selection has been made, the selection will default to the remaining betting interest with the best post time odds as determined by win pool odds. (C) Wagerers accrue earnings based on the actual pari-mutuel exacta payout for any correct selections regardless of order, determined from tote payouts, based on an exacta wager of a dollar value established by the licensee in advance of the contest. The licensee may establish maximum contest earnings in advance of the opening of the contest. (D) In the discretion of the licensee, tiebreakers may be applied in exacta box contests pursuant to the terms published in advance of the opening of the contest. (E) Pari-mutuel distributions are made at the conclusion of the contests that are based on the pari-mutuel distribution schedule published by the licensee in advance of the opening of the contest. (9) A wager on a coupled entry or field is considered a wager on the remaining part of the coupled entry or field as determined by the rules of the live corresponding race. (10) Earnings or points for dead heats will be determined by the payouts of the live corresponding race. (11) The maximum takeout for the contest entry shall not be greater than 22%. Exceptions must be approved by the ORC. (12) The entire pool must be refunded if less than sixty percent of the contest's designated races remain. (13) After wagering closes on the first race comprising the contest wager, the contest is deemed closed and no entry ticket may be sold, exchanged, or canceled. No person shall be determined to hold a winning contest wager ticket until the last designated race has been declared official. (14) The licensee shall distribute the net pool to the holders of valid entries that correctly selected the combination of finishers that generated the highest earnings or points totals through the designated races/rounds comprising the contest entry. Approved payout schedules must be published in advance of the opening of the contest to which they apply. (15) Should circumstances occur which are not addressed by these rules, questions arising thereby must be resolved in accordance with general pari-mutuel practice. Decisions regarding distribution of the contest prize pool made by the commission are final. (16) Additional formats to be approved by the racing commission (17) Format scratches procedures shall be included in the contest rules. (18) Approval process for handicapping contest: (a) Live money handicapping contests that do not charge a commission (A) Terms, conditions and contest rules must be approved in advance of the contest by the commission. (b) All other handicapping contest must pass an ORC audit, which shall include but not be limited to financial operations, security and information technology. (19) The Oregon Racing Commission shall collect a fee each August 1st based on the annual commission earned by the licensee on handicapping contest conducted during the previous fiscal year (July 1- June 30). Under $5,000 – no annual fee $5000 - $50,000 – Tier 1 = $100.00 $50,000 - $500,000 – Tier 2 = $3,000.00 $500,000 - $3,000,000 – Tier 3 = $5,000.00 $3,000,000 - $6,000,000 – Tier 4 = 7,500.00 $6,000,000 plus Tier 5 = $10,000