December 13, 1996 The Honorable David Sibley Chair Economic Development Committee Texas State Senate P.O. Box 12068 Austin, Texas 78711 Letter Opinion No. 96-137 Re: Whether the Texas Racing Commission may approve an applica- tion for wagering on simulcast races by a facility that is as yet incapable of hosting live racing events and related question (ID# 36913) Dear Senator Sibley: You request our opinion regarding a situation that apparently has arisen at the Lone Star Jockey Club (the “club”) in Grand Prairie. You indicate that the club facilities are still under construction. The Texas Racing Commission (the “commission”), you state, has awarded the club eleven live racing days in December 1996. You further state that the club has announced a plan to apply to the commission for administra- tive approval to simulcast races from the club beginning in March 1996. You ask whether the commission may approve an application for wa- gering on simulcast races from a licensed racing association whose facilities will be, at the time it begins simulcasting, under construc- tion, incomplete, or otherwise incapable of accommodating a live race event. You also ask whether the Texas Racing Act (the “act”), V.T.C.S. article 179e, requires that a racetrack conduct a live race prior to be- ing able to offer simulcast racing. Before we consider your questions, we will discuss the relevant provisions of the act. Each entity that desires to operate a racetrack must apply to the commission for a license. See V.T.C.S. art. 179e, § 6.03. The appli- cant must inform the commission of the kind of racing to be conducted and the dates on which the applicant desires to conduct racing. Id. § 6.03(a)(9). The act refers to simulcasting [footnote 1] as a kind of racing. See id. § 6.02(e), (f) (referring to live races as well as “simulcast races”). Section 6.02(f) of the act authorizes a racetrack to present si- mulcast races on dates other than those on which the racetrack is approved to conduct live races. See also House Research Organization, Bill Analysis, H.B. 2263, 72d Leg., R.S. (1991) (stating that, with com- mission approval, racetracks may show simulcast races on dates when they have no live racing). Significantly, however, the act expressly does not “allow wagering . . . on simulcast races at any location other than a racetrack licensed under [the act] that has been granted live race dates by the commission.” V.T.C.S. art. 179e, § 11.011(f) (emphasis added). Section 11.011(f) thus does not premise wagering on simulcast races at a particular racetrack on whether live races have been con- ducted at that location. Rather, the section premises wagering on simulcast races on whether the commission has granted the licensed race- track live race dates. In answer to your first question, we conclude that the statute does not prohibit the commission from approving the ap- plication of a licensed racetrack for wagering on simulcast races so long as the commission has granted the racetrack live race dates. Thus, whether to permit wagering on simulcast races at an unfinished facility that has been granted live race dates lies within the commission’s dis- cretion and broad rulemaking authority. See V.T.C.S. art. 179e, § 11.011(a). In answer to your second question, we find no requirement in the act that a licensed racetrack must conduct a live race event at the fa- cility before it may offer simulcast racing. To the contrary, the only statutory prerequisite is that the commission has granted live race dates to the licensed racetrack. See id. S U M M A R Y Section 11.011(f) of the Texas Racing Act, V.T.C.S. article 179e, authorizes the Texas Racing Commission to approve the application of a licensed racetrack for wa- gering on simulcast races so long as the commission has granted the racetrack live race dates. Under the stat- ute, the fact that the racetrack facilities are under construction, incomplete, or otherwise incapable of ac- commodating a live race event at the time the racetrack begins accepting wagers on simulcast races is inconse- quential. Similarly, nothing in the act requires a licensed racetrack to conduct a live race event at the facility before it may offer simulcast racing. To the contrary, the only statutory prerequisite is that the commission has granted live race dates to the licensed racetrack. Yours very truly, Kymberly K. Oltrogge Assistant Attorney General Opinion Committee ------------------------------------------------------------ FOOTNOTES [1] To simulcast is to telecast or otherwise transmit “live audio and visual signals of a race, . . . from a sending track to a receiving location, for the purpose of wagering conducted on the race at the receiving location.” V.T.C.S. art. 179e, § 1.03(61). A sending track is “any licensed track for racing in this state or out-of-state from which a race is transmitted.” Id. § 1.03(66). A receiving location is “a licensed racetrack association in this state that has been allocated live and simulcast race dates or a facility not located in this state that is authorized to conduct wagering under the law of the jurisdiction in which it is located.” Id. § 1.03(64).