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Vol. 137, No. 13 — June 18, 2003 Registration CRIMINAL CODE Regulations Amending the Pari-Mutuel Betting Supervision RegulationsThe Minister of Agriculture and Agri-Food, pursuant to section 204 (see footnote a) of the Criminal Code, hereby makes the annexed Regulations Amending the Pari-Mutuel Betting Supervision Regulations. Ottawa, June 2, 2003
Lyle Vanclief
REGULATIONS AMENDING THE PARI-MUTUEL BETTING SUPERVISION REGULATIONS AMENDMENTS 1. (1) The definition "Area Manager" in section 2 of the Pari-Mutuel Betting Supervision Regulations (see footnote 1) is repealed. (2) The definitions "Commission", "outstanding ticket", "telephone account betting" and "telephone account betting system" in section 2 of the Regulations are replaced by the following: "Commission" means
(b) in a province where an organization referred to in paragraph (a) has not been established, Standardbred Canada or the United States Trotting Association; (commission) "outstanding ticket" means a winning ticket that has not been cashed before the end of the racing day for which it was issued; (billet impayé) "telephone account betting" means pari mutuel betting conducted by an account holder by means of a telephone; (pari par téléphone) "telephone account betting system" means the recording devices and related equipment that are used to record and conduct telephone account betting; (système de pari par téléphone) (3) Section 2 of the Regulations is amended by adding the following in alphabetical order: "telephone" means any telecommunication device that can be used to record and verify a bet made by an account holder; (téléphone) 2. Subparagraph 6(2)(b)(ii) of the Regulations is replaced by the following:
3. Subsection 7(4) of the Regulations is replaced by the following: (4) An association shall, on request of the Executive Director, immediately provide him or her with notice of any change in the owners or directors of the association and of any change in the persons who hold or exercise control 10 per cent or more of any voting shares issued by the association. 4. Sections 8 and 9 of the Regulations are replaced by the following: 9. Where, in an application for a permit, an association proposes to conduct pari-mutuel betting at a new race-course located within 80 km of an existing race-course on the same day as at the existing race-course, the Executive Director shall, with respect to the fixing of dates on which an association may conduct pari-mutuel betting, give priority to the association that conducted pari-mutuel betting on that day in the previous year. 5. Section 11 of the Regulations is repealed. 6. Paragraph 13(1)(e) of the Regulations is replaced by the following:
7. Subparagraph 15(d)(vi) of the Regulations is replaced by the following:
8. (1) Paragraphs 19(1)(d) and (e) of the Regulations are replaced by the following:
(e) a unique reference code that identifies the transaction; (2) Subsection 19(2) of the Regulations is repealed. 9. Section 35 of the Regulations is replaced by the following: 35. The final odds on each horse, entry or mutuel field shall be displayed by an association on its infield board
(b) for at least 30 seconds after the pay-out prices for a race are posted. 10. Section 40 of the Regulations is replaced by the following: 40. (1) An association shall display, immediately after the end of each race, in a manner readily visible to the public, the following information:
(b) the pay-out prices for each pool; and (c) the numbers of any scratched horses. (2) An association that hosts a pool shall, on request, make available the following information:
(b) the total amount of money bet on each pool. (3) An association that hosts a pool shall, on request of an officer, make available any information related to the pool. 11. Subparagraph 43(a)(v) of the Regulations is replaced by the following:
12. Section 44 of the Regulations is replaced by the following: 44. An association shall provide a finish line on the track at its race course that has been established by a surveyor and that is located at right angles to the track, immediately in front of the judges' stand or, if the association has a photo finish surveillance program, immediately in front of the photo finish camera. 13. The heading before section 46 and sections 46 to 49 of the Regulations are replaced by the following: Photo Finish Surveillance Program 46. An association that has a photo finish surveillance program shall provide any facilities that are required for the proper operation of the program. 47. (1) Where an association has a photo finish surveillance program, the association shall display a photo finish picture immediately after the judges decide the official result, on a photo finish display board provided by the association at a location approved by an officer and stated in the race program, whenever
(b) at the finish line, the distance between horses involved in a pari-mutuel pay-out is less than a neck. (2) An association that has a photo finish surveillance program shall ensure that each horse is equipped with a number on its head and on its saddle pad that corresponds to the number of the horse in the race program and that will be clearly identifiable in a photo finish picture. (3) An association that runs trotting or pacing horse races and has a photo finish surveillance program shall ensure that the wheel discs of the sulkys in a race are of a colour and type that do not interfere with the identification of the horses in a photo finish picture. Video Patrol Surveillance Program 48. An association that has a video patrol surveillance program shall provide any facilities that are required for the proper operation of the program. Drug Control Surveillance Program 49. An association that has a drug control surveillance program shall provide a retention area on its premises for the activities relating to the program and shall provide access to persons concerned to undertake those activities. 14. Section 65 of the Regulations is replaced by the following: 65. (1) At the end of each racing day, an association shall add together any overages occurring in any races of that racing day and the resulting sum shall then be added, after betting has ended but before the pay out price is calculated, to the first pool that is conducted on the third day on which pari mutuel betting is held by that association after the day on which the overages occurred. (2) Where overages are to be added to a pool, they shall be added to the net pool. 15. Subsection 66(2) of the Regulations is repealed. 16. Sections 71 and 72 of the Regulations are replaced by the following: 71. No association shall permit betting to begin more than one hour before the scheduled post time of the first race of a racing card, unless it has first obtained the authorization of an officer. 17. Section 75 of the Regulations and the heading before it are repealed. 18. Subsections 76(1) and (2) of the Regulations are replaced by the following: 76. (1) An association that proposes to conduct telephone account betting shall apply in writing to the Executive Director each year for a home market area. The association shall include the recommendation of the appropriate Commission with its application. 19. (1) Paragraph 79(2)(a) of the Regulations is replaced by the following:
(2) Subsection 79(3) of the Regulations is replaced by the following: (3) Subject to section 118, no association shall permit any money to be withdrawn from an account other than by the account holder or the account holder's legal representative. 20. (1) Subsection 80(3) of the Regulations is replaced by the following: (3) Where an account holder has made a winning telephone account bet, the association shall credit the amount won to the holder's account immediately after the posting of the pay-out prices. (2) The portion of subsection 80(5) of the Regulations before paragraph (a) is replaced by the following: (5) Where an account holder provides the correct telephone betting account number and identification code to a telephone account betting system and requests to be informed of the current balance of the account, an association shall 21. (1) Subsections 81(1) and (2) of the Regulations are replaced by the following: 81. (1) A telephone account betting system shall confirm to the account holder the balance in the account before and on completion of each telephone account betting session. (2) A telephone account bet is made when the bet has
(b) been recorded in its entirety by automatically activated recording equipment; and (c) when requested by the account holder, been verified to that person by the telephone account betting system confirming the information referred to in paragraph 79(2)(a). (2) Subsection 81(4) of the Regulations is replaced by the following: (4) Where a disagreement arises with respect to the making of a telephone account bet, the account holder may request the recording referred to in paragraph (2)(b). (3) Section 81 of the Regulations is amended by adding the following after subsection (5): (6) When an account holder places a telephone account bet orally, it shall be voice-recorded. 22. Section 82 of the Regulations is replaced by the following: 82. An association shall retain all recordings and any written or computer-stored data referred to in subsection 81(2) for no fewer than 35 days and shall make those recordings and data available to an officer on request. [Note: The existing subsection 82(2) also contained the reference to "voice" recording. The above wording combines the existing 82(1) and (2) and thereby gets rid of "voice" in both.] 23. Subsection 83(2) of the Regulations is replaced by the following: (2) Where a claim is made under subsection (1), no association shall dispose of any recording or any written or computer-stored data related to that account until authorized to do so by an officer. 24. Subsection 84.4(3) of the Regulations is replaced by the following: (3) Subject to section 118, no association shall permit any money to be withdrawn from an account, other than on presentation by the person making the withdrawal of the correct account number and identification code. 25. Subsections 85(1) to (3) of the Regulations are replaced by the following: (1) An association that proposes to conduct theatre betting shall apply in writing to the Executive Director each year for a home market area and for a theatre licence for each betting theatre that the association proposes to operate. The association shall include the recommendation of the appropriate Commission with its application. (2) The Executive Director shall not assign a home market area to an association where the association's permit authorizes it to conduct fewer than 10 days of racing at its race-course. (3) The Executive Director shall not issue a theatre licence to an association that conducted fewer than 50 days of racing at its race-course during the year preceding its application for the licence, unless a reduced number of days was recommended by the appropriate Commission. 26. (1) Subsection 90(1) of the Regulations is amended by adding the word "and" at the end of paragraph (c), by striking out the word "and" at the end of paragraph (d) and by repealing paragraph (e). (2) Paragraph 90(1.1)(a) of the Regulations is replaced by the following:
(3) Paragraph 90(2)(a) of the Regulations is replaced by the following:
27. Section 91 of the Regulations is repealed. 28. Section 94 of the Regulations is amended by adding the word "and" at the end of paragraph (d) and by repealing paragraph (e). 29. Subsections 95(2) and (3) of the Regulations are repealed. 30. Section 96 of the Regulations is repealed. 31. Section 101 of the Regulations is replaced by the following: 101. An association shall make the payment to the Receiver General pursuant to subsection 204(4) of the Act within seven days after receipt of an invoice indicating the dates and racecards for which payment is due. 32. Section 106 of the Regulations is renumbered as subsection 106(1) and is amended by adding the following: (2) In the case of inter-track betting or separate pool betting, if any of the circumstances described in subsection (1) occur at a satellite track, and a bet has been made, the association shall make available for refund the value of all bets made in respect of the pool at the satellite track. (3) In the case of inter-track betting or separate pool betting, if, at a satellite track, an association is unable to transmit the betting information in respect of a pool, the association shall make available for refund the value of all bets made at the satellite track in respect of that pool. 33. Paragraphs 107(c) to (e) of the Regulations are replaced by the following:
(d) all place, quinella or triactor bets, where the total number of separate betting entities in a race is less than three; (e) any win or exactor bet, where the total number of separate betting entities in a race is less than two; and 34. Section 108 of the Regulations is repealed. 35. Subsection 113(4) of the Regulations is replaced by the following: (4) An association shall add all money accruing to it from an underpayment, after betting has ended but before the pay-out price is calculated, to the first pool that is conducted on the third day on which pari mutuel betting is held by that association after the day on which the underpayment occurred. (5) Where underpayments are added to a pool, they shall be added to the net pool. 36. Subsection 114(1) of the Regulations is repealed. 37. Section 118 of the Regulations is replaced by the following: 118. If an association posts an incorrect pay-out price, as soon as it becomes aware that an error has been made, it shall
(b) announce the correct pay-out price over its public-address system; and (c) pay the correct pay-out price, including correcting all account-based bets. 38. The Regulations are amended by replacing the words "the Area Manager" with the words "an officer" in the following provisions:
(b) section 56; (c) paragraph 90(1)(b); (d) paragraph 90(1.1)(b); and (e) section 99. COMING INTO FORCE 39. These Regulations come into force on the day on which they are registered. REGULATORY IMPACT ANALYSIS STATEMENT (This statement is not part of the Regulations.) Description The Pari-Mutuel Betting Supervision Regulations are designed to protect the integrity of pari-mutuel betting on horse races authorized under section 204 of the Criminal Code. The regulations address the supervision and operation of pari-mutuel systems related to race meetings. The regulations specify the Association's (i.e., racetrack's) obligations in conducting pari-mutuel betting on horse races. The amendment represents an omnibus set of amendments to these Regulations. It addresses changes resulting from proven technology advancements, desires of the betting public, deletion of outdated regulations, and administrative (i.e., housekeeping) issues. Developments in communications technology have allowed racetracks to provide a wider selection of horse racing options to their clients and increased the accessibility of their own race products to a wider audience. This has resulted in the expansion of wagering networks, allowing patrons at many different sites to wager into common pari-mutuel pools. Occasionally disruptions occur in these networks. These regulatory amendments introduce a more equitable and transparent approach to address the needs of the betting public when parts of these networks fail to accurately transmit their betting activity. Also, at the request of industry, the definition of "telephone" has been expanded to include other secure communication devices such as personal computers. Under the umbrella of the current Telephone Account Betting provisions, patrons will be provided with greater flexibility in the manner in which they place bets. At times, insufficient money is returned to the betting public. This can affect all bettors as in the case of a technical or manual error that produces an incorrect price, or, an individual bettor as in the case of a teller making an error during a cash transaction. An amendment clarifies how this unpaid money is to be returned to the betting public at large. It will ensure that any money that remains owing to the public will be returned in its entirety. On occasion, incorrect prices are reported and paid by a racetrack. This can be the result of an incorrect order of finish or miscalculation of the prices based on incorrect pool information. The regulatory amendment clarifies the Association's responsibility in these rare cases, mandating in all instances that correct prices are returned to the holders of winning tickets. The wording of the regulations relating to Photo Finish and Video Patrol has been amended to allow greater flexibility in terms of who is required to provide these programs. While the Canadian Pari-Mutuel Agency (CPMA) currently provides them, in the future, changing economic conditions may dictate that other bodies provide them. At the request of provincial racing commissions, regulatory requirements for racetracks applying to conduct Telephone Account and Theatre Betting are amended such that application to conduct these types of betting must first be approved by the appropriate provincial regulatory body before a permit or licence is issued by the CPMA. This clarifies the provincial body's role in managing the number and location of betting outlets in their jurisdiction. It also serves to clarify the limit on the CPMA's regulatory authority set out in 204(8)(e) of the Criminal Code relating to the condition precedent that a provincial license for theatre betting be issued before a concomitant licence is issued by the CPMA. Theatre betting is an extension of a racetrack's operations, typically to remote sites. Currently, a racetrack applying for a theatre licence must already have applied for, and been approved to conduct, a minimum of 50 live race dates at its racetrack. The intent of this requirement is to ensure that for the right to offer theatre betting, a racetrack would have the obligation of offering a minimum number of live race dates for their horsemen. However, the wording of the regulation allowed racetracks to seek and receive approval for 50 or more race dates and then, at a later date, cancel several race dates to a level below 50, and retain their theatre licences. This amendment ensures that the obligation to conduct 50 live race dates is fulfilled prior to issuing a theatre licence. An accommodation was included for racetracks located in provinces where the economic situation would make it difficult for racetracks to meet the 50 day requirement. A theatre licence will be issued to those racetracks who do not meet this requirement but who can provide a recommendation from the appropriate provincial regulatory body. Regulations recognizing "circuits" that allowed racetracks to operate exclusively at specified times or on specified dates have been removed. These are purely business arrangements and therefore do not fall under the CPMA's mandate. Technology enhancements have improved the delivery of winnings to patrons and allowed payment for winning Telephone Account Bets to be credited in a timeliness equivalent to that of patrons in possession of an actual winning ticket. The account crediting regulation has been amended to reflect this. Regulations restricting the hours of operation, the use of telephones, number and time of races per day, and reporting of attendance and purse disbursements are deleted as they no longer confer value to the betting public. Alternatives The status quo was considered in developing amendments to the Pari-Mutuel Betting Supervision Regulations. It was rejected because without these amendments, the regulations will not effectively address the current reality of how the racing industry conducts its business, both domestically and internationally. Benefits and Costs The impact of these amendments on the industry will be positive because the industry will be able to offer better service to its clients. The betting public, clients of the associations, will benefit from expanded service and clarified expectation, given disruptions in the pari-mutuel betting network. This will allow patrons the ability to make more informed decisions. At the same time, the amendments will maintain the same degree of protection that the betting public currently enjoys under the regulations. Costs: There is no significant cost or environmental impact associated with these amendments. There are no costs at all to the general public in that 100% of the cost is paid for by the betting public through a levy of 0.8% applied to every dollar wagered in Canada. Additional testing and supervision of activities will have only nominal costs because current staff will fulfill these obligations. Industry Benefits: The Amendments will clarify for the industry the regulatory requirements for pari-mutuel betting supervision and address new technology advances and industry needs. Betting Public Benefits: The betting public will continue to be protected to the same high degree against fraudulent practices. They will also receive greater variety from which to select their betting options. Consultation The Canadian Horse Racing Industry representatives were extensively consulted in respect to the regulatory amendments. The proposed amendments were discussed at the CPMA Industry workshops in April 2000, and again in November 2001. The workshops were well attended by all sectors of the horse-racing industry, including racetrack operators, racing commissions, horsemen's groups, totalisator (computer-supply) companies and other industry representatives including Racetracks of Canada, Inc. Provincial racing commissions were also independently consulted throughout 2000 on the proposed amendments. The Canadian Consultative Pari-Mutuel Working Group met in November 2000 to review the regulatory amendment package. This group has extensive representation from the CPMA, provincial racing commissions, racetrack operators and special interest groups. The Tote Standards Committee (with representatives from Autotote, United Tote and Amtote) was also consulted in November 2001. This committee provides technical expertise on pari-mutuel betting systems. The consensus from the consultation was to proceed with the amendment process and enact these amendments. Most recently, the CPMA delivered copies of the Canada Gazette, Part I, dated December 28, 2002, containing these amendments to all known parties of interest. Comments were again solicited from racing associations, horsemen's groups, Provincial commissions and tote operators. While the majority of respondents expressed support for the entire amendment package, limited opposition was expressed by horsemen's groups. Specifically, the Ontario Harness Horse Association, Saskatchewan Standardbred Horsemen's Association and the Horsemen's Benevolent and Protective Association of Alberta oppose amendments numbered 27 and 29 which delete regulations that attempted to establish a relationship between the amount of simulcast betting and the running of live horse races. These three horsemen's groups, as well as the British Columbia Standardbred Association and the Manitoba Harness Horsemen Inc., also oppose amendment number 25. Currently, associations wishing to provide theatre betting as an alternative to their patrons, must host a minimum of 50 live race-days in a year. This amendment will allow associations unable to meet this requirement to seek the approval of their Provincial commission (i.e., regulatory authority) to recommend the issuance of theatre licences. The commonly expressed belief amongst those in opposition to these amendments is that they will dilute the relationship between legal pari-mutuel betting and the conduct of live horse races. However, other regulations remain that require the agreement of horsemen's groups as a prerequisite for approval, and through negotiation of these agreements, horsemen's groups retain a significant measure of control over the scheduling of races for, and the sharing of revenue from, theatre and simulcast betting. Furthermore, section 204(8)(e) of the Criminal Code asserts that before the CPMA authorizes an application to conduct theatre betting, a licence must first be granted by the appropriate Provincial authority. The CPMA recognizes that it is the Provincial authority's best judgement that should decide whether or not to permit theatre betting in their jurisdiction. This amendment acknowledges the reasoning that the Provincial authority is an appropriate body to determine the extent of theatre betting permitted within their respective provinces. Furthermore, it is not within the CPMA's mandate to restrict different forms of horse race betting so long as the provisions of the Criminal Code and Pari-Mutuel Betting Supervision Regulations are being carried out in good faith. Compliance and Enforcement This regulatory initiative does not alter existing compliance and enforcement mechanisms under the provisions of section 204 of the Criminal Code and its related regulations. Contact
Policy and Operations Research Officer Canadian Pari-Mutuel Agency P.O. Box 5904, LCD Merivale Ottawa, Ontario K2C 3X7 Telephone: (613) 949-0722 FAX: (613) 949-0748 E-mail : SawchukR@agr.gc.ca S.C. 1994, c. 38, s. 14, and par. 25(1)(g) SOR/91-365 |
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