WAC 260-48-960

A licensed class 1 racing association or a licensed advanced deposit wagering company may operate a handicapping contest at which the participants may be charged an entry fee. All paid-entry handicapping contests must be conducted in accordance with the provisions of this rule. The executive secretary may approve handicapping contests provided they meet the following criteria:

(1) A handicapping contest is defined as a competitive event, where participants, using individual skill to evaluate a variety of factors including the past performance of horses to determine the relative qualities and abilities of horses in a race, attempt to outperform other participants in selecting the finish of horses. Participants who are most successful in selecting horses become eligible to win prizes as prescribed in the official rules of the contest. Prizes and format are predefined and at the discretion of the class 1 racing association or licensed advanced deposit wagering company.

(2) A class 1 racing association or licensed advanced deposit wagering company desiring to offer a paid-entry handicapping contest must first apply for and receive approval from the commission to conduct handicapping contests. The class 1 racing association or licensed advanced deposit wagering company must apply annually to the commission for approval to conduct handicapping contests. The class 1 racing association or licensed advanced deposit wagering company must include with its application the proposed rules for conducting the handicapping contests and the determination of prizes. The class 1 racing association or licensed advanced deposit wagering company will obtain written approval to operate handicapping contests prior to the acceptance of any entry fees.

(3) The class 1 racing association or licensed advanced deposit wagering company approved to operate a handicapping contest will distribute at least 80 percent of the entry fees as prizes to the winners. Nothing in this section will preclude an operator from providing additional prizes or promotions.

(4) The entry fee to enter a handicapping contest will be set by the class 1 racing association or licensed advanced deposit wagering company. The entry fee and a description of all goods and services to be awarded as part of the handicapping contest must be fully disclosed to each participant prior to paying the entry fee. In addition, all prizes, including amenities such as airfare, meals and lodging, will also be fully disclosed to each participant prior to paying the entry fee.

(5) Races that are the subject of a handicapping contest must be races on which the class 1 racing association is authorized to conduct parimutuel wagering.

(6) Commissioners and employees of the commission are prohibited from participating in any handicapping contest in Washington.

(7) The class 1 racing association or licensed advanced deposit wagering company will provide the commission a report annually, no later than by January 15th, on activity from Washington residents, including a record of all entry fees collected, deposits made and withdrawals requested per individual Washington resident. Identification numbers may be substituted for real names for the purposes of identification included in this reporting.

(8) Any violation of this section will be referred to the executive secretary. The executive secretary will have sole authority to ensure compliance with this rule, conduct hearings on violations, and determine penalties. Any decision of the executive secretary may be challenged as provided in WAC 260-08-675.