OAR 462-200-0390
Surcharges
(1)
The method of charging surcharges will be set forth in the race meet licensee’s application for off track sites. The percentage of the surcharge will be in an amount agreed on by the race meet licensee and the off track site, set forth in the contract between the race meet licensee and the off track site and approved by the commission. No surcharge may be in an amount over 5% of the wager or the winnings depending on the surcharge method chosen.(2)
The distribution of the surcharge will be set forth in the contract between the race meet licensee and the off-track site. Payment of the surcharge to the parties or account(s) entitled to a portion of the surcharge will be made at least every two weeks and not later than five (5) days after the last day of racing of the two week period. Surcharge amounts will be deposited into a separate account containing only surcharges from off-track sites on a weekly basis. All surcharge monies will remain in that account until such time as they are distributed to the parties or account(s) entitled to a portion of the monies.(3)
If a portion of the surcharge is to be used for advertising or promotion per the contract between the race meet licensee and the off-track site, the party holding the funds will maintain a ledger showing the amount of money deposited in the “advertising/promotion” account for each off-track site, the amount of money spent for advertising/promotion of each off-track site, and the amount of money available for expenditure for each off-track site.(a)
The race meet licensee and the off-track site shall prepare a written agreement prior to the opening of the site regarding an advertising/promotion program which includes what types of expenditures will fall into the “advertising/promotion” category, and whether the payment of the funds will be made on a reimbursement or a direct payment basis. (If the payment from the advertising fund is a reimbursement, payment shall be made not later than ten (10) days after the receipt of the appropriate documentation and invoice by the holder of the funds. If the payment is directly to the vendor of the service, payment shall be made by the holder of the funds within the time-line set forth on the invoice, given that proper documentation has been received.) A copy of the plan shall be available for inspection by a representative of the commission at either the race meet licensee’s track or the off-track site.(b)
In cases of a dispute between the race meet licensee and the off-track site as to payment of invoices, the amount of money available for an off-track site, or other issue regarding the advertising/promotion account, the holder of the funds will make all records available to the commission or its representative.(c)
Disbursement of portions of the surcharge dedicated to advertising and promotion not used during a race meet shall be set forth in the contract between the race meet licensee and the off track-site.(4)
Surcharges may be charged using one of two methods: A surcharge on the amount wagered; or, A surcharge on the amount of the winnings at the time the winnings are paid.(a)
Surcharge on the Amount Wagered. A surcharge on the amount wagered may be an amount up to 5% which will be collected, at the time of the wager, in addition to the amount actually wagered. The surcharge will not be considered as part of the mutuel pool and will be accounted for separately from the mutuel pool. In cases of a refund, the surcharge amount will also be refunded.(b)
Surcharge on the Amount of Winnings. “Winnings” is defined as the unbroken on-track price of the winning payout.(A)
After the $1 Unbroken On-Track Price is Calculated:(i)
Surcharge Liability = $1 Unbroken On-Track Price x Surcharge %;(ii)
$1 Unbroken Off-Track Price = $1 Unbroken On-Track Price — Surcharge Amount;(iii)
$1 Broken Off-Track Profit = $1 Unbroken Off-Track Price Rounded Down to the Break Point;(iv)
Posted Off-Track Price = $1 Broken Off-Track Price x $2;(v)
Total Off-Track Payout = $1 Broken Off-Track Price x Gross Amount Bet on Winner at Off-Track Sites;(vi)
Total Off-Track Breakage = $1 Breakage x Gross Amount Bet on Winner at Off-Track Sites and Cashed;(vii)
Total Surcharge = $1 Surcharge Amount x Gross Amount Bet on Winner at Off-Track Sites and Cashed.(B)
Winnings shall not be surcharged when it would cause the profit on one dollar wagered to be reduced below five cents.(C)
The surcharge on winnings will be paid when the wagerer cashes the winning ticket. The totalizator system shall provide a daily report showing the surcharges paid from cashed tickets from previous day’s wagering, surcharges paid from today’s tickets and surcharge payables to date. This report shall also show the debits and credits between off-track sites.(D)
Surcharges received from surcharges on winnings shall be credited to the site at which the wager was placed.(E)
Surcharges on the winnings shall not be deducted from the unclaimed winnings reverting to the State of Oregon.
Source:
Rule 462-200-0390 — Surcharges, https://secure.sos.state.or.us/oard/view.action?ruleNumber=462-200-0390
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