Sec. 12-575. Pari-mutuel betting. Tax. Uncashed tickets. Payments to municipalities.
Sec. 12-575. Pari-mutuel betting. Tax. Uncashed tickets. Payments to municipalities. (a) Pari-mutuel betting permitted. The board may permit at racing events,
exhibitions of the game of jai alai licensed under the provisions of this chapter or at off-track betting facilities, betting under a pari-mutuel system, so called, including standard
pari-mutuel, daily double, exacta, quinella, trifecta, superfecta, twin trifecta, pick four
and pick six betting, and such other forms of multiple betting as the board may determine.
(b) Operation of pari-mutuel system. The pari-mutuel system, so called, shall not
be used or permitted at any location other than the race track at which the racing event
is licensed to be conducted or the fronton at which the game of jai alai is licensed to be
played or at an off-track betting facility operated by the division or by a licensee authorized to operate the off-track betting system. A computerized electronic totalizator system, approved by the executive director, shall be used to conduct pari-mutuel wagering
at each racing or jai alai event. A computerized electronic totalizator system approved
by the executive director and, where authorized by subsection (b) of section 12-571a,
and approved by the executive director, a simulcast system shall be used to conduct
pari-mutuel wagering and simulcasting of off-track betting race programs at off-track
betting facilities. The executive director may require any licensee to submit information
concerning the daily operation of such totalizator or simulcast system which he deems
necessary for the effective administration of this chapter, including records of all wagering transactions, in such form and manner as he shall prescribe.
(c) Takeout. Purses, capital improvements and promotional marketing for dog
racing. (1) Except as provided in subdivision (2) of this subsection, each licensee conducting horse racing events under the pari-mutuel system shall distribute all sums deposited in any pari-mutuel program to the holders of winning tickets therein, less seventeen
per cent of the total deposits plus the breakage to the dime of the amount so retained;
each licensee conducting jai alai events shall distribute all sums deposited in any pari-mutuel program to the holders of winning tickets therein, less a maximum of eighteen
per cent of the deposits in the win, place or show pools and less a maximum of twenty-three per cent of the deposits in all other pools plus the breakage to the dime of the
amount so retained; each licensee conducting dog racing events shall distribute all sums
deposited in any pari-mutuel program to the holders of winning tickets therein, less a
maximum of nineteen per cent of the deposits in the win, place or show pools and less
a maximum of twenty-seven per cent of the deposits in all other pools plus the breakage
to the dime of the amount so retained, or, shall distribute all sums deposited in all of its
pari-mutuel programs conducted on any day to the holders of winning tickets therein
less twenty per cent of the total deposits plus the breakage to the dime of the amount
so retained, provided on and after July 1, 1992, each licensee conducting dog racing
events on July 5, 1991, shall allocate four per cent of all sums deposited in any pari-mutuel program to purses, one-quarter of one per cent to capital expenditures for alterations, additions, replacement changes, improvements or major repairs to or upon the
property owned or leased by any such licensee and used for such racing events, and
one-quarter of one per cent to promotional marketing, to reduce the costs of admission,
programs, parking and concessions and to offer entertainment and giveaways. Each
licensee conducting dog racing events shall, on an annual basis, submit to the division
certified financial statements verifying the use of such allocations for purses, capital
improvements and promotional marketing. (2) Each licensee conducting racing or jai
alai events may carry over all or a portion of the sums deposited in any pari-mutuel
program, less the amount retained as herein provided, in the twin trifecta, pick four or
pick six pari-mutuel pool to another pool, including a pool in a succeeding performance.
(d) Tax: Horse racing. Each licensee conducting horse racing events under the
pari-mutuel system shall pay to the state, and there is hereby imposed: (1) A tax on the
total money wagered in the pari-mutuel pool on each and every day the licensee conducts
racing events, pursuant to the following schedule:
Total WageredTax
0 to $100,001
3.25% on the entire pool
$100,001 to $200,0013.75% on the entire pool
$200,001 to $300,0014.25% on the entire pool
$300,001 to $400,0014.75% on the entire pool
$400,001 to $500,0015.25% on the entire pool
$500,001 to $600,0015.75% on the entire pool
$600,001 to $700,0016.25% on the entire pool
$700,001 to $800,0016.75% on the entire pool
$800,001 to $900,0017.25% on the entire pool
$900,001 to $1,000,0017.75% on the entire pool
$1,000,001 and over8.75% on the entire pool
and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.
The executive director, with the advice and consent of the board, shall by regulation
designate the percentage of the difference between the seventeen per cent specified in
subsection (c), and the tax specified in this subsection which shall be allocated as prize
or purse money for the horses racing at each facility.
(e) Tax: Dog racing. Each licensee conducting dog racing events under the pari-mutuel system shall pay to the state, and there is hereby imposed: (1) (A) A tax at the
rate of two per cent on the total money wagered in the pari-mutuel pool on each and
every day the licensee conducts racing events or (B) on or after July 1, 1993, in the case
of any licensee licensed prior to July 5, 1991, (i) a tax at the rate of two per cent on any
amount up to and including fifty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5,
1991, conducts racing events, (ii) a tax at the rate of three per cent on any amount in
excess of fifty million dollars and up to and including eighty million dollars of the total
money wagered in the pari-mutuel pool in any state fiscal year during which a licensee
licensed prior to July 5, 1991, conducts racing events and (iii) a tax at the rate of four
per cent on any amount in excess of eighty million dollars of the total money wagered
in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to
July 5, 1991, conducts racing events, and (2) a tax equal to one-half of the breakage to
the dime resulting from such wagering.
(f) Tax: Jai alai. Each licensee operating a fronton at which the game of jai alai is
licensed to be played under the pari-mutuel system shall pay to the state and there is
hereby imposed: (1) (A) A tax at the rate of two per cent on any amount up to and
including fifty million dollars of the total money wagered on such games, (B) a tax at
the rate of three per cent of any amount in excess of fifty million dollars and up to and
including eighty million dollars of the total money wagered on such games, and (C) a
tax at the rate of four per cent on any amount in excess of eighty million dollars of the
total money wagered on such games, and (2) a tax equal to one-half of the breakage to
the dime resulting from such wagering.
(g) Tax: Off-track betting. The licensee authorized to operate the system of off-track betting under the pari-mutuel system shall pay to the state and there is hereby
imposed: (1) A tax at the rate of three and one-half per cent on the total money wagered
in the pari-mutuel pool on each and every day the licensee broadcasts racing events and
(2) a tax equal to one-half of the breakage to the dime resulting from such wagering.
(h) Tax: Assessment and payment. The executive director shall assess and collect
the taxes imposed by this chapter under such regulations as, with the advice and consent
of the board, he may prescribe. All taxes hereby imposed shall be due and payable by
the close of the next banking day after each day's racing or jai alai exhibition. If any
such tax is not paid when due, the executive director shall impose a delinquency assessment upon the licensee in the amount of ten per cent of such tax or ten dollars, whichever
amount is greater, plus interest at the rate of one and one-half per cent of the unpaid
principal of such tax for each month or fraction of a month from the date such tax is
due to the date of payment. Subject to the provisions of section 12-3a, the executive
director may waive all or part of the penalties provided under this subsection when it
is proven to his satisfaction that the failure to pay such tax within the time required was
due to reasonable cause and was not intentional or due to neglect. Failure to pay any
such delinquent tax upon demand may be considered by the executive director as cause
for revocation of license.
(i) Accounting. The executive director shall devise a system of accounting and
shall supervise betting at such track, fronton or off-track betting facility in such manner
that the rights of the state are protected and shall collect all fees and licenses under such
regulations as, with the advice and consent of the board, he shall prescribe.
(j) Unclaimed moneys. The amount of unclaimed moneys, as determined by the
executive director, held by any licensee other than by licensees authorized to operate a
jai alai fronton, dog race track or the off-track betting system on account of outstanding
and uncashed winning tickets, shall be due and payable to the executive director, for
deposit in the General Fund of the state, at the expiration of one year after the close of
the meeting during which such tickets were issued. If any such unclaimed moneys are
not paid when due, the executive director shall impose a delinquency assessment upon
the licensee in the amount of ten per cent of such moneys or ten dollars, whichever
amount is greater, plus interest at the rate of one and one-half per cent of the unpaid
principal of such moneys for each month or fraction of a month from the date such
moneys are due to the date of payment. Subject to the provisions of section 12-3a, the
executive director may waive all or part of the penalties provided under this subsection
when it is proven to his satisfaction that the failure to pay such moneys to the state within
the time required was due to reasonable cause and was not intentional or due to neglect.
(k) Inspection. The executive director may authorize deputies and the Commissioner of Revenue Services or his agents are authorized to enter upon the premises at
any racing event, jai alai exhibition or off-track betting race event for the purpose of
inspecting books and records, supervising and examining cashiers, ticket sellers, pool
sellers and other persons handling money at said event and such other supervision as
may be necessary for the maintenance of order at such event.
(l) Statement of division receipts. The executive director shall, on or before the
tenth day of each month, prepare and file with the Treasurer a full and complete statement
of the division's receipts from all sources and shall turn over to the Treasurer all moneys
in the division's possession.
(m) Payments to municipalities. (1) The executive director shall pay each municipality in which a horse race track is located, one-quarter of one per cent of the total
money wagered on horse racing events at such race track, except the executive director
shall pay each such municipality having a population in excess of fifty thousand one
per cent of the total money wagered at such horse racing events in such municipality.
The executive director shall pay each municipality in which a jai alai fronton or dog
race track is located one-half of one per cent of the total money wagered on jai alai
games or dog racing events at such fronton or dog race track, except the executive
director shall pay each such municipality having a population in excess of fifty thousand
one per cent of the total money wagered on jai alai games or dog racing events at such
fronton or dog race track located in such municipality. The executive director shall pay
each municipality in which an off-track betting facility is located one and three-fifths
per cent of the total money wagered in such facility less amounts paid as refunds or for
cancellations. The executive director shall pay to both the city of New Haven and the
town of Windsor Locks an additional one-half of one per cent of the total money wagered
less any amount paid as a refund or a cancellation in any facility equipped with screens
for simulcasting after October 1, 1997, located within a fifteen mile radius of facilities
in New Haven and Windsor Locks. Payment shall be made not less than four times a
year and not more than twelve times a year as determined by the executive director, and
shall be made from the tax imposed pursuant to subsection (d) of this section for horse
racing, subsection (e) of this section for dog racing, subsection (f) of this section for jai
alai games and subsection (g) of this section for off-track betting. (2) If, for any calendar
year after the surrender of a license to conduct jai alai events by any person or business
organization pursuant to subsection (c) of section 12-574c and prior to the opening of
any dog race track by such person or business organization, any other person or business
organization licensed to conduct jai alai events is authorized to conduct a number of
performances greater than the number authorized for such licensee in the previous calendar year, the executive director shall pay the municipality in which the jai alai fronton
for which such license was surrendered was located, rather than the municipality in
which the jai alai fronton conducting the increased performances is located, one-half
of one per cent of the total money wagered on jai alai games for such increased performances at the fronton which conducted the additional performances, except the executive
director shall pay each such municipality having a population in excess of fifty thousand
one per cent of the total money wagered on jai alai games for such increased performances at such fronton. (3) During any state fiscal year ending on or after June 30, 1993,
the executive director shall pay each municipality in which a dog race track was operating
prior to July 5, 1991, one per cent of the total money wagered on dog racing events at such
dog race track. (4) During the state fiscal year ending June 30, 2001, each municipality in
which a dog race track was operating prior to July 5, 1991, shall pay the Northeast
Connecticut Economic Alliance, Inc. two-tenths of one per cent of the total money
wagered on dog racing events at any dog race track operating prior to July 5, 1991. (5)
In the event a licensee incurs a loss from the operation of a pari-mutuel facility, as
determined by the executive director, the legislative body of the city or town in which
such facility is located may direct the executive director to credit or rebate all or a part
of the revenue otherwise due to the municipality back to the facility. In no case shall
such credit and such reimbursement exceed the amount of the licensee's loss, and in no
fiscal year shall these provisions affect the total fees paid to the state by the authorized
operator of the off-track betting system on its off-track betting activities.
(1971, P.A. 865, S. 19; 1972, P.A. 187, S. 12; P.A. 73-401, S. 1, 2; P.A. 74-249, S. 2-6; P.A. 75-10, S. 1, 2; 75-567,
S. 15, 80; P.A. 77-365, S. 1-5; 77-614, S. 139, 610; P.A. 79-404, S. 27, 45; P.A. 80-60; P.A. 82-163, S. 2, 3, 6; 82-284,
S. 2-4; P.A. 83-227, S. 1-3; 83-301, S. 1-3; P.A. 85-471, S. 2, 4; P.A. 87-542, S. 1, 2; P.A. 89-324, S. 2, 4; P.A. 91-309,
S. 6-8, 10; May Sp. Sess. P.A. 92-17, S. 41, 59; P.A. 93-332, S. 35, 36, 42; P.A. 96-151, S. 2, 3; P.A. 97-277, S. 12, 13;
P.A. 00-229, S. 6, 7; June Sp. Sess. P.A. 01-9, S. 87, 131; P.A. 04-176, S. 2.)
History: 1972 act amended Subsec. (a) to include jai alai and dog racing, amended Subsec. (b) to include frontons and
off-track betting facilities, amended Subsec. (c) to include fronton licensees and to require distribution of all sums deposited
in pari-mutuel system to winners except for 17% plus breakage to the dime of amount retained, replacing previous provision
for 8.5% tax to state on total money wagered plus tax equal to one-half of the breakage to the dime, inserted new Subsecs.
(d) and (e) re payments to state by horse and dog racing licensees, relettering remaining Subsecs. accordingly, and included
references to jai alai in Subsecs. (f), (g) and (i), formerly (d), (e) and (g); P.A. 73-401 deleted reference to dog racing and
perfecta betting and included daily double, exacta, superfecta and other forms of multiple betting in Subsec. (a), substituted
"minor" for "any person under the age of eighteen" in Subsec. (b), replaced 8.5% tax and 5% tax on total wagered at horse
and dog racing events with graduated tables in Subsecs. (d) and (e), inserted new Subsec. (f) re tax on jai alai operators,
relettering remaining Subsecs. accordingly, and amended Subsec. (g), formerly Subsec. (f), to require that taxes be paid
at close of next banking day after event rather than at the close of the day of the event itself; P.A. 74-249 revised tables in
Subsecs. (d) and (e) and raised tax rate on jai alai licensees from 5% to 5.25% of total amount wagered; P.A. 75-10 made
minor change in wording of Subsec. (l); P.A. 75-567 revised table in Subsec. (e); P.A. 77-365 amended Subsec. (c) to
require retention of 17% of wagered amount for horse racing events and 18% for dog racing and jai alai events, deleted
table in Subsec. (e) and set tax at 8% of total wagered, amended Subsec. (f) to increase tax rate to 6.75% and amended
Subsec. (l) to set varying rates for payments to municipalities dependent upon population and type of event; P.A. 77-614
substituted commissioner of revenue services for tax commissioner, effective January 1, 1979; P.A. 79-404 substituted
"executive director" for "commission" and provided for gaming policy board to advise and oversee executive director's
activities; P.A. 80-60 amended Subsec. (b) to include provisions re totalizator systems and deleted provision forbidding
operators to admit minors to participation in pari-mutuel system; P.A. 82-163 amended Subsec. (g) so as to provide for
penalty and interest re late payment of taxes by the licensee in any pari-mutuel betting facility in amounts and under
conditions comparable to such provisions applicable with respect to other state taxes and amended Subsec. (i) so as to
provide for penalty and interest re late payment of unclaimed moneys by the licensee in any pari-mutuel betting facility
for deposit in the state general fund, in amounts and under conditions comparable to such provisions applicable with respect
to all state taxes; P.A. 82-284 amended Subsec. (c) by increasing the take out for dog racing and requiring that an additional
0.25% be allocated to purses and amended Subsec. (e) by increasing the tax on dog racing by 0.25%; P.A. 83-227 amended
Subsec. (a), permitting twin trifecta, pick four and pick six pari-mutuel wagers at racing and jai alai events and amended
Subsec. (c), permitting licensees to carry-over all or part of the moneys not won in twin trifecta, pick four or pick six forms
of multiple betting; P.A. 83-301 amended Subsec. (c), increasing for dog racing, the takeout rate deducted from total
amount wagered, from 18.5% to 19%, and the amount each licensee allocates to purses, from 0.25% to 0.5%, and amended
Subsec. (e), increasing for dog racing, the amount of state tax applicable to total money wagered and paid by licensees,
from 8.25% to 8.5%; P.A. 85-471 added Subsec. (m) re payments to the Microchemistry Laboratory Fund; P.A. 87-542
amended Subsec. (c) to provide that, after July 1, 1987, the amount allocated to purses shall be increased from 0.5% to
3.5%, 0.25% shall be allocated to capital expenditures and 0.25% shall be allocated to promotional marketing and amended
Subsec. (e) to reduce the state tax from 8.5% to 7.25%; P.A. 89-324 deleted former Subsec. (m) which had required
executive director to pay Microchemistry Laboratory Fund 0.25% of money wagered on dog racing events due to repeal
of said fund; P.A. 91-309 amended Subsec. (c)(1) to add a further proviso requiring Plainfield dog track, on and after July
1, 1992, to distribute all sums deposited in pari-mutuel program to winners except for 20% plus breakage to the dime of
amount retained and allocate 4% of all sums to purses, 0.25% to capital expenditures and 0.25% to promotional marketing,
divided Subsec. (e)(1) into Subparas. (A) and (B), inserting in Subpara. (B) new language providing for a sliding scale of
taxation for Plainfield dog track effective on or after July 1, 1992, and divided Subsec. (l) into Subdivs. (1), (2) and (3),
inserting in Subdiv. a requirement that executive director pay each municipality with a population over fifty thousand 1%
of total money wagered on dog racing events at dog track located in such municipality, in Subdiv. (2), new language
requiring executive director to make payments to Bridgeport if, for any calendar year after Bridgeport fronton surrenders
its license to conduct jai alai and before opening of its dog track, Milford or Hartford fronton is authorized to conduct more
performances than in previous calendar year, and in Subdiv. (3), new language requiring executive director to pay town
of Plainfield 0.8% of total money wagered on dog racing events at Plainfield dog track and the Northeast Connecticut
Economic Alliance, Inc. 0.2% of total money wagered on dog racing events at Plainfield dog track during any fiscal year
ending on or after June 30, 1993; May Sp. Sess. P.A. 92-17 amended Subsec. (c) to increase the takeout rate for jai alai
from 18% to a maximum of 20% until June 30, 1994, reestablishing such rate at 18% on and after July 1, 1994, and to
provide that the takeout rate for dog racing remain at 19% until June 30, 1994; P.A. 93-332 amended Subsec. (a) to
allow racing events or exhibitions of jai alai at off-track betting facilities, amended Subsec. (b) to authorize the use of a
computerized electronic totalizator system and a simulcast system to conduct pari-mutuel wagering and to make changes
re the operation of the off-track betting systems by an authorized licensee, added a new Subsec. (g) to impose a tax on the
licensee authorized to operate the off-track betting system and relettered the remaining Subsecs. accordingly and made
technical changes in Subsec. (i), (k) and (m) re allowing racing events or exhibitions of jai alai at off-track betting facilities
and in Subsec. (m) added provision re payment of percentage of receipts to municipalities where off-track betting facilities
are located, effective June 25, 1993, and also amended Subsec. (c) to increase amount of sums deposited in pari-mutuel
program to be kept by licensees conducting dog racing events from 19% to 20% and deleted provisions requiring a specific
percentage to be allocated to certain expenditures, amended Subsec. (e) decreasing the tax paid the state by licensees
conducting dog racing events, amended Subsec. (f) to change the tax imposed on licensees operating jai alai frontons from
6.75% on the total money wagered to 2% on any amount up to and including $50,000,000 of the total money wagered and
a tax of 3% of the total money wagered in excess of $50,000,000 and up to and including $80,000,000 and a tax of 4% on
the total money wagered in excess of $80,000,000 and amended Subsec. (j) to make technical changes re operation of the
off-track betting facilities by an authorized licensee, effective July 1, 1993; P.A. 96-151 amended Subsec. (c)(1) to require
financial statements annually rather than quarterly and amended Subsec. (j) to except licensees of jai alai frontons and dog
race tracks from requirements re unclaimed moneys ("outs"), effective July 1, 1996; P.A. 97-277 amended Subsec. (c)(1)
to change the takeout rate for licensees conducting jai alai events and licensees conducting dog racing events to a maximum
of 18% of the deposits in the win, place or show pools and a maximum of 23% of the deposits in all other pools and Subsec.
(m)(1) to increase from 1% to 1.6% of money wagered in an off-track betting facility the amount the executive director is
required to pay municipalities with such a facility and to add requirement that executive director pay both New Haven and
Windsor Locks additional 0.5% of total money wagered in any facility equipped for simulcasting after October 1, 1997,
located within 15-mile radius of facilities in such city and town, effective July 1, 1997; P.A. 00-229 amended Subsec.
(m)(3) to increase from 0.8% to 1% the amount paid to municipalities that contain a dog race track, to eliminate provisions
re payments to municipalities having a population in excess of 50,000 and re ongoing payments to the Northeast Connecticut
Economic Alliance, and to provide that during the fiscal year ending June 30, 2001, each such municipality will pay 0.2%
to the Northeast Connecticut Economic Alliance, effective July 1, 2000; June Sp. Sess. P.A. 01-9 added Subsec. (m)(5)
re ability of legislative body of municipality to direct executive director of pari-mutuel facility with operational loss to
credit or rebate to the facility all or part of revenues, effective July 1, 2001; P.A. 04-176 amended Subsec. (c)(1) to require
that licensees conducting dog racing events distribute sums deposited in pari-mutuel programs to holders of winning tickets,
less a maximum of 19%, in lieu of 18%, of deposits in win, place or show pools and less a maximum of 27%, in lieu of
23%, of deposits in all other pools, effective June 1, 2004.
See chapter 226b re disclosure statements with regard to pari-mutuel betting.
Cited. 33 CS 167. Cited. 44 CS 126.