OFFICE OF THE SECRETARY OF STATE TOBIAS READ

SECRETARY OF STATE


MICHAEL KAPLAN DEPUTY SECRETARY OF STATE


NOTICE OF PROPOSED RULEMAKING

INCLUDING STATEMENT OF NEED & FISCAL IMPACT

CHAPTER 462

OREGON RACING COMMISSION

ARCHIVES DIVISION STEPHANIE CLARK DIRECTOR

800 SUMMER STREET NE SALEM, OR 97310

503-373-0701


FILED

11/21/2025 2:55 PM ARCHIVES DIVISION SECRETARY OF STATE


FILING CAPTION: Amends 462-220-0040 Corrects language from Gross to Net

LAST DAY AND TIME TO OFFER COMMENT TO AGENCY: 01/10/2026 8:00 AM

The Agency requests public comment on whether other options should be considered for achieving the rule's substantive goals while reducing negative economic impact of the rule on business.

CONTACT: Karen Parkman 503-853-5927

karen.parkman@orc.oregon.gov

PO Box 366

Gresham ,OR 97030

Filed By:

Karen Parkman Rules Coordinator


HEARING(S)

Auxiliary aids for persons with disabilities are available upon advance request. Notify the contact listed above.

DATE: 12/18/2025

TIME: 9:30 AM - 10:00 AM

OFFICER: Quinn Berry


REMOTE HEARING DETAILS

MEETING URL: Click here to join the meeting

PHONE NUMBER: 503-853-5927

CONFERENCE ID: 241427036 SPECIAL INSTRUCTIONS:

Meeting ID: 293 859 721 320 27

Passcode: Da3ac9La


NEED FOR THE RULE(S)

Removes unnecessary language that requires constant updating and clarifies non-merged pool requirements.


DOCUMENTS RELIED UPON, AND WHERE THEY ARE AVAILABLE

ORC rules and statute -provides language for non-merged pools and removes unnecessary language.


STATEMENT IDENTIFYING HOW ADOPTION OF RULE(S) WILL AFFECT RACIAL EQUITY IN THIS STATE

Does not affect racial equity in the state


FISCAL AND ECONOMIC IMPACT:

None


COST OF COMPLIANCE:

  1. Identify any state agencies, units of local government, and members of the public likely to be economically affected by the rule(s). (2) Effect on Small Businesses: (a) Estimate the number and type of small businesses subject to the rule(s); (b) Describe the expected reporting, recordkeeping and administrative activities and cost required to comply with the rule(s); (c) Estimate the cost of professional services, equipment supplies, labor and increased administration required to comply with the rule(s).

No cost to comply


DESCRIBE HOW SMALL BUSINESSES WERE INVOLVED IN THE DEVELOPMENT OF THESE RULE(S):

Small businesses were not involved and are not affected.


WAS AN ADMINISTRATIVE RULE ADVISORY COMMITTEE CONSULTED? YES


AMEND: 462-220-0040

RULE SUMMARY: Amends 462-220-0040 corrects language from gross to net. CHANGES TO RULE:

462-220-0040

State of Oregon Share of the Pari-Mutuel Handle ¶

In addition to the licensing fee set forth in OAR 462-220-0030(6), the hub operator shall pay to the Oregon Racing Commission the payments authorized by ORS 462.725(4)(b) on all grossnet mutuel wagering receipts recorded by the hub's totalizator system during the license period. The payments shall be made as follows:¶

  1. Payments shall be made each month based on the grossnet mutuel wagering receipts for that month.¶

  2. Payments shall be made in a timely manner as prescribed by the executive director of the commission.¶

  3. Payments shall be calculated according to one of the following formulas as elected by the hub operator in the manner specified in section (65):¶

    1. Payment of 0.125% of the first 60 million dollars in grossnet mutuel wagering receipts during the license period and 0.25% of the grossnet mutuel wagering receipts in excess of 60 million dollars during that period; or¶

    2. Payment of 0.25% of grossnet mutuel wagering receipts, except that, if the hub operator conducts business in a state where hubs are specifically authorized and the tax rate is less than 0.25%, the tax rate for wagers by the residents of such state would be that of the state in which they reside. This exception is limited to a single state designated by the hub operator in the manner specified in section (7).¶

  4. Advanced deposit wagering handle from past live racing products will be calculated separately from all other gross mutual wagering receipts recorded by the hub's totalizator system. These product wagering receipts will, however, follow the same payment structure as all other gross wagering receipts including the maximum payment set out in section (6).¶

  5. Each affiliate of aEach affiliate of a licensed multi-jurisdictional hub will follow the same payment structure as the licensed multi-jurisdictional hub will follow the same payment structure as the licensed multi-jurisdictional hub includingincluding the calculations set out in section 3 and the maximum payment set out in section 65. The additional payments, as outlined in (3), will occur after the affiliate's first $20,000,000.00 in handle or after the licensee has reached their maximum payment, whichever occurs last. The first $20,000,000.00 of the affiliate's handle and any additional handle if the licensee has not yet reached their maximum payment is exempt from separate fee payments. The first $20,000,000.00 will nevertheless apply toward the licensee's maximum payment.¶

  6. Notwithstanding OAR 462-220-0040 (5), If an affiliate is operating non-merged pools, and exceeds the maximum payment set out in section (6) will increase 2.5% on an annual basis for each fiscal year through 2029-2030 unless the commission chanas defined in (5), they shall pay .125% on all additional non-merged pool wagers placed through the licensee. There will be no maximum payment assessed on wagers that limit before the beginning of a fiscal year. Mplaced on non-merged pools.¶

(5) The maximum payments throug for each fiscal year 2029-2030 are calculated below.¶

Fwill be published in advance and will increase by 2.5% each fiscal Yyear - Fee Payment Schedule:¶ 2025-26 - $838,027.88¶

2026-27 - $858,978.58¶

2027-28 - $880,453.04¶

2028-29 - $902,464.37¶

2029-2030 - $925,025.97. The commission may change that limit prior to the start of each fiscal year.

(76) The hub operator shall state in its license application its election to pay tax calculated pursuant to section (3), subsections (a) or (b), for grossnet mutuel wagering handle minus cancels and refunds, and shall also designate a state that is subject to the exception in section (3), subsection (b), if that formula is elected. The hub operator statement shall be made in its license application or at such other time as is specified by the Commission. Neither the payment formula nor the state subject to the exception may be changed during a license period without the prior approval of the Commission.

Statutory/Other Authority: ORS 462.270(3), 462.725 Statutes/Other Implemented: ORS 462.725