(1) "Common pool wagering." The inclusion of wagers placed at guest association locations and secondary parimutuel organizations (SPMO) into a common parimutuel pool for the purpose of display of wagering information and calculation of payoffs on winning wagers.

(2) "Guest association." An association approved to offer simulcast races and parimutuel wagering on races conducted at other racetracks.

(3) "Host association." An association where live racing and parimutuel wagering are conducted and on which parimutuel wagering is conducted by guest associations or satellite locations.

(4) "Parimutuel system." The hardware, software and communications equipment used to record wagers, calculate payouts for winning wagers, and transmit wagering transactions and parimutuel pool data for display to patrons and to communicate with other parimutuel systems linked to facilitate common pool wagering.

(5) "Parimutuel wagering." A form of wagering on the outcome of a horse race in which all wagers are pooled and held by a parimutuel pool host for distribution of the total amount, less the deductions authorized by law, to holders of tickets on the winning contestants.

(6) "Parimutuel voucher." A record of a parimutuel wager in either paper or electronic form.

(7) "Secondary parimutuel organization (SPMO)." An entity other than a licensed association that offers and accepts parimutuel wagers. This may include a satellite location (off-track wagering) or an advance deposit wagering service provider.

(8) "Self-service device." A computerized wagering device that allows the patron, only while on the grounds of a licensed Class 1 racing association, to wager by use of portable electronic device. The self-service device allows the patron to place wagers only. The patron must contact a mutuel clerk to cash in any winnings.

(9) "Self-service terminal." A computerized wagering device that allows the patron to wager by use of a touch activated screen using account cards, vouchers, winning tickets and cash.

(10) "Simulcast." Live video and audio transmission of a race and parimutuel information for the purpose of parimutuel wagering at locations other than a host association.

(11) "Stored value instrument." A self-service device or self-service terminal.

(1) Each association must conduct wagering in accordance with applicable laws and these rules. Such wagering must employ a parimutuel system approved by the commission. The parimutuel system must be tested prior to and during the meeting as required by the commission.

(2) Parimutuel wagering utilizes a parimutuel system to pool wagers. The parimutuel system may be located on property of the association or may, subject to compliance with applicable law and these rules, reside at another location.

(3) Wagering may be accepted by a separate parimutuel system in this or other jurisdictions, and combined via communication between parimutuel systems.

(4) The commission may enter into multijurisdictional agreements with other regulatory authorities to facilitate certification of compliance with requirements by, and licensing of, parimutuel companies (including their employees), entities providing services for simulcasting and common pool wagering, secondary parimutuel organizations, and advance deposit wagering systems. Such agreements must, at a minimum, ensure certification and licensing requirements comparable to this jurisdiction.

(1) The association is responsible for the maintenance of all wagering records so the commission may review these records for any race including the opening line, subsequent odds fluctuation, the amount and at which window wagers were placed on any betting interest and any other information that may be required. Wagering records must be retained by each association and/or parimutuel company and safeguarded for one year after the last day of the race meet or as specified by the commission.

(2) The association must provide at the request of the commission a list of the licensed individuals afforded access to parimutuel records and equipment at the wagering facility.

A parimutuel ticket is evidence of a wager into the parimutuel pool operated by the association and is evidence of the association's obligation to pay to the holder a portion of the distributable amount of the parimutuel pool that is represented by a valid parimutuel ticket. The association must cash all valid winning parimutuel tickets when they are presented for payment.

(1) To be deemed a valid parimutuel ticket, the ticket must have been issued by a parimutuel ticket machine, self-service terminal operated by the association, or self-service device and recorded as a ticket entitled to a share of the parimutuel pool. The parimutuel ticket must also contain the following:

(a) The name of the association operating the meeting;

(b) A unique identifying number or code;

(c) The terminal or device where the ticket was issued;

(d) The date that the wagering transaction was issued;

(e) The race number;

(f) The type or types of wager(s);

(g) The number or numbers representing the betting interests; and

(h) The amount or amounts of the wagers into the parimutuel pool or pools for which the ticket is evidence.

(2) No parimutuel ticket recorded or reported as paid, canceled, or nonexistent will be considered a valid parimutuel ticket.

(3) The association must maintain a record of all winning parimutuel tickets, not presented for payment. A record of these tickets when cashed must be retained for a period of twenty-four months from the date cashed. This record will be made available for inspection by the commission or its authorized representative when requested.

(1) Parimutuel tickets may not be sold by anyone other than an association licensed to conduct parimutuel wagering.

(2) No parimutuel ticket may be sold on a race for which wagering has already been closed and the association is not responsible for ticket sales entered into but not completed by issuance of a ticket before the parimutuel system is closed for wagering.

(3) Parimutuel tickets may be exchanged or cancelled prior to the running of a race based upon the written policies of the association. Such policies must be filed with the commission.

(4) Payment on winning parimutuel wagers will be made on the basis of the order of finish as posted and declared "official." Any subsequent change in the order of finish or award of purse money as may result from a subsequent ruling by the stewards or commission will in no way affect the parimutuel payoff. If an error in the posted order of finish or payoff figures is discovered, the official order of finish or payoff prices may be corrected and an announcement concerning the change will be made to the public.

(5) The association has no obligation to enter a wager into a betting pool if unable to do so due to equipment failure.

(6) No person under the age of eighteen may purchase or cash any parimutuel ticket. No employee of the association may knowingly sell to or cash for a person under the age of eighteen any parimutuel ticket. Unattended persons under the age of eighteen are not permitted in wagering areas.

(1) A request for payment from the parimutuel pool may be made by submitting a valid claim form to the association mutuel department under the following conditions:

(a) A verifiable parimutuel ticket is lost or damaged; or

(b) The association has withheld payment or refused to cash a parimutuel wager.

(2) The association mutuel department will investigate the claim and make a determination as to whether there is sufficient information to identify the parimutuel ticket as a winning ticket.

(3) If the claim is denied, the claimant will be informed of the denial and that they may challenge the decision to the executive secretary.

(4) If the executive secretary denies the claim, the claimant may request a hearing before the commission as provided in WAC 260-08-675.

If an error occurs in the payment amounts for parimutuel tickets that are cashed or entitled to be cashed and as a result of the error the parimutuel pool involved is not correctly distributed among winning ticket holders, the following will apply:

(1) In the event the error results in an overpayment to the ticket holders the association will be responsible for such payment.

(2) In the event the error results in an underpayment to tickets holders:

(a) The association will accept timely claims for such underpayment, investigate such claims and pay each claim, or a part thereof, that the association determines to be valid, and will notify the claimant if the claim is rejected as invalid.

(b) Any person whose claim is denied by the association may, within fifteen days from the date the denial notice was served, request the executive secretary to determine the validity of the claim. The failure to file such request with the executive secretary within the fifteen days will constitute a waiver of the claim.

(c) The executive secretary will investigate each claim denied, and determine the validity of the claim. Within seven days of service of the executive secretary's determination, the claimant or the association may challenge the executive secretary's determination by requesting a hearing before the commission as provided in WAC 260-08-675.

(d) If no valid claims are presented, or after all filed claims have been resolved, the amount of the underpayment or any part thereof, will be applied to the next available corresponding pool (i.e. exacta pools). If there is no similar pool the underpayment will be applied to the win pool of the first race. Such payment will be publicly announced prior to this day.

A summary explanation of parimutuel wagering and each type of betting pool offered will be published in the program for each race day. The rules of racing relative to each type of parimutuel pool offered must be prominently displayed on association grounds and available upon request.

(1) The association will display the approximate odds for win pool betting within view of the wagering public and update the odds when the total win pool has reached a minimum dollar amount established by the association. The association will continue to update the odds at intervals of not more than ninety seconds. In no event will the first change in odds occur later than twelve minutes to post.

(2) The association may display the probable payoff or amounts wagered, in total and on each betting interest, for other pools to the wagering public at intervals and in a manner approved by the commission.

(3) Official results and payoffs must be displayed immediately after each race is declared official.

If a race is cancelled or declared "no contest" refunds will be granted on valid wagers in accordance with these rules.

(1) Notwithstanding other provisions of these rules, refunds of the entire pool will be made on:

(a) Win pools, exacta pools, and first-half double pools, offered in races in which the number of betting interests has been reduced to fewer than two.

(b) Place pools and quinella pools, trifecta pools and first-half twin trifecta pools, offered in races in which the number of betting interests has been reduced to fewer than three.

(c) Show pools, superfecta pools offered in races in which the number of betting interests has been reduced to fewer than four.

(2) Authorized refunds will be paid when the parimutuel ticket is presented and surrendered.

(1) Horses coupled in wagering as a mutuel field will be considered part of a single betting interest for the purpose of price calculations and distribution of pools. Should any horse in a mutuel field be officially withdrawn or scratched, the remaining horses in that mutuel field will remain valid betting interests and no refunds will be granted. If all horses within a mutuel field are scratched, then tickets on such betting interests will be refunded, notwithstanding other provisions of these rules.

(2) For the purpose of price calculations only, mutuel fields will be calculated as a single finisher, using the finishing position of the leading horse in that mutuel field to determine order of placing. This rule will apply to all circumstances, including situations involving a dead heat, except as otherwise provided by these rules.

Unless the commission or its designee otherwise provides, at the time the pools are opened for wagering, the association:

(1) Must offer win wagering on all races with three or more betting interests. May offer win wagering on all races with two betting interests.

(2) May offer place wagering on all races with three or more betting interests.

(3) May offer show wagering on all races with four or more betting interests.

(4) May offer quinella wagering on all races with three or more betting interests.

(5) May offer exacta wagering on all races with two or more betting interests.

(6) May offer trifecta wagering on all races with three or more betting interests.

(7) May offer twin trifecta wagering on all races with six or less betting interests.

(8) May offer superfecta wagering on all races with four or more betting interests.

(9) May offer quinfecta wagering on all races with five or more betting interests.

(1) An association that desires to offer new forms of wagering must apply in writing to the commission and receive written approval prior to implementing the new betting pool. New forms of wagering may only be offered by a host association after they have been established in rule, except as provided in WAC 260-48-710.

(2) An association may suspend previously approved forms of wagering with the prior approval of the commission. Any carryover will be held until the suspended from of wagering is reinstated. An association may request approval of a form of wagering or separate wagering pool for a specific performance.

(3) The executive secretary may approve new type wagering pools subject to final approval by the commission at its next regular meeting.

(1) Upon the start of a live race, a commission representative will immediately close wagering for the race. Once wagering is closed, no parimutuel tickets will be sold for that race.

(2) Upon the start of any simulcast race, the association is responsible to ensure that wagering is closed for the race. Once wagering is closed, no parimutuel tickets will be sold for that race.

(3) The association must maintain an electrical or other system approved by the commission for accurately locking all parimutuel machines.

(1) When a patron makes an unresolved complaint regarding the parimutuel department to an association, the association will immediately issue a complaint report, including the following:

(a) The name of the complainant;

(b) The nature of the complaint;

(c) The name of the persons, if any, against whom the complaint was made;

(d) The date of the complaint;

(e) The action taken or proposed to be taken, if any, by the association.

(2) The association will submit every complaint report to the executive secretary within forty-eight hours of the complaint.

All licensees will report any known irregularities or wrong doings by any person involving parimutuel wagering immediately to the board of stewards or the executive secretary if the incident occurs during a nonlive racing period, and will fully cooperate in subsequent investigations.

Should any emergency arise in connection with the operation of the parimutuel department of the association, not covered by these rules, and an immediate decision is necessary, the mutuel manager may make the decision. The mutuel manager will immediately notify the board of stewards, or the executive secretary if the emergency arises during a nonlive racing period.

An association may limit payoffs at satellite locations to $2,500 in cash, with the balance delivered in the form of a check or by an electronic fund transfer by the end of the next business day.

(1) A parimutuel voucher is a record or card produced by a parimutuel system device on which a stored cash value is represented and the value is recorded in and redeemed through the parimutuel system. Parimutuel vouchers may be offered by an association that issues parimutuel tickets. The stored value on a voucher may be redeemed in the same manner as a value of a winning parimutuel ticket for wagers placed at a parimutuel window, a self-service device, or a self-service terminal, and may be redeemed for their cash value at any time.

(2) An association may, with the prior approval of the commission, issue special parimutuel cash vouchers as incentives or promotional prizes, and may restrict the use of those vouchers to the purchase of parimutuel wagers.

(3) The tote system transaction record for all parimutuel vouchers will include the following:

(a) The voucher identification number in subsequent parimutuel transactions;

(b) Any parimutuel wagers made from a voucher will identify the voucher by identification number.

(1) An association may not, without the prior approval of the commission, utilize any form of stored value instrument or system other than a parimutuel voucher for the purpose of making or cashing parimutuel wagers.

(2) Any request for approval of a stored value instrument or system will include a detailed description of the standards utilized:

(a) To identify the specific stored value instrument or account in the parimutuel system wagering transaction record;

(b) To verify the identity and business address of the person(s) obtaining, holding, and using the stored value instrument or system; and

(c) To record and maintain records of deposits, credits, debits, transaction numbers, and account balances involving the stored value instruments or accounts.

(3) A stored value instrument or system will prevent wagering transactions in the event such transactions would create a negative balance in an account, and will not automatically transfer funds into a stored value instrument or account without the direct authorization of the person holding the instrument or account.

(4) A stored value instrument while being used to place a wager may only send and receive the signal within the association's property.

(5) Any request for approval of a stored value instrument or system will include all records and reports relating to all transactions, account records, and customer identification and verification in hard copy or in an electronic format approved by the commission. All records will be retained for a period of not less than three years.

(1)(a) Except as otherwise authorized by the commission, a request for simulcasting must be filed on a form provided by the commission not later than seven business days before the first simulcast race covered by the request. The executive secretary may approve a request for simulcasting, subject to rescission of the approval by the commission at its next regular meeting.

(b) The application must include at a minimum:

(i) The simulcast agreement between the host and guest association;

(ii) The approval by the horsemen's association represented at the host and guest site;

(iii) The alternate jurisdiction approval;

(iv) When acting as the host site, approval also requires a list of all locations that will be receiving and/or wagering on the races under the guest site; and

(v) The executive secretary may require the association to submit additional information if the executive secretary determines the additional information is necessary to effectively evaluate the request.

(2) A class 1 racing association may not simulcast until the following are filed with the commission.

(a) A written agreement with the local horsemen's group.

(b) A description of how simulcast purse moneys are to be maintained.

(c) A description of how breeder awards are to be maintained.

(d) A monthly statement showing amounts contributed to and balance in the purse fund and the breeder's awards fund. This statement will be filed with the commission no later than fifteen days after the end of each month.

(3) The approval of any particular simulcasting or wagering on particular simulcast races or programs is not binding on the commission for other requests for approval of simulcasting or wagering on simulcast races or programs.

(4) In determining whether to approve a common pool which does not include the host track or which includes contests from more than one association, the commission will consider and may approve use of a bet type which is not utilized at the host track, application of a takeout rate not in effect at the host track, or other factors which are presented to the commission.

(5) No class 1 racing association will enter a contractual agreement that is in violation of, or may be construed as waiving any provision of chapter 67.16 RCW, Title 260 WAC and any federal, state or local law.

(6) The mutuel manager or the mutuel manager's designee must be present on association grounds at all times that the class 1 racing association is accepting wagers on simulcast races. He/she will be responsible for communicating all errors or omissions regarding simulcast wagering to the board of stewards or the executive secretary if errors or omissions occur during nonlive racing periods.

(7) There must be a facsimile machine located in each mutuel area or tote room and a direct, private telephone line to be located in the tote room. Phone access to the tote room will not require routing through the switchboard.

(8) When necessary prior to the commencement of transmission of the performance of parimutuel contests for each day or night, the guest association will initiate a test program of its transmitter, encryption and decoding, and data communication to assure proper operation of the system.

(9) Washington intra-track breakage and minus pools will be prorated based on amounts wagered.

(10) The commission may permit adjustment of the takeout from the parimutuel pool so that the takeout rate in this jurisdiction is identical to that at the host jurisdiction, or identical to that of other jurisdictions participating in a merged pool.

(11) Any surcharges or withholdings in addition to the takeout will only be applied in the jurisdiction otherwise imposing such surcharges or withholdings.

(12) Where takeout rates in the merged pool are not identical, the net price calculation may be the method by which the differing takeout rates are applied.

(13) Parimutuel pools may be combined for computing odds and calculating payouts but will be held separate for auditing and all other purposes.

(1) With the prior approval of the commission, parimutuel-wagering pools may be combined with corresponding wagering pools in the host jurisdiction, or with corresponding pools established by one or more other jurisdictions.

(2) Rules established in the jurisdiction of the host association designated for a parimutuel pool will apply.

(3) The guest association and all authorized receivers will conduct parimutuel wagering pursuant to the applicable jurisdiction rules.

(4) Class 1 racing associations which import simulcast races and propose to offer types of wagers other than those currently defined in chapter 260-48 WAC, will submit to the commission a copy of the host jurisdiction's rule governing the wager.

(5) If, after the close of wagering, a guest racetrack's wagers cannot be successfully merged in the common pool via data circuit or manual merge, the mutuel manager will:

(a) Refund the pools not successfully merged after announcing to the public that the pools were not merged successfully and the pools will be refunded; or

(b) Pay the winning wagers based on the prices established at the host racetrack.

The mutuel manager will report the failure to merge any common pool to the board of stewards or the executive secretary if the failure to merge any common pool occurs during nonlive racing. The report must be filed no later than the day after the date the common pool failed to merge.

In the event the host association has offered a wager not covered by chapter 260-48 WAC, the Association of Racing Commissioners International model rules regarding such wager will govern. Information regarding this emergency procedure will be posted throughout the class 1 racing association facility and published in its racing program.

(6) An authorized class 1 racing association when acting as a guest association will provide:

(a) Parimutuel terminals and odds displays, modems and equipment enabling parimutuel data transmissions, and data communications between the host and guest associations.

(b) Adequate transmitting and receiving equipment of acceptable broadcast quality, which will not interfere with the closed circuit TV system of the host association for providing any host facility patron information.

(1) A host association is responsible for content of the simulcast and will use all reasonable effort to present a simulcast that offers the viewers an exemplary depiction of each performance.

(2) Unless otherwise permitted by the commission, every simulcast will contain in its video content the date, a digital display of actual time of day, the host facility's name from where it emanates and the number of the contest being displayed.

(3) The host association will maintain such security controls including encryption over its uplink and communications systems as directed or approved by the commission.

(4) Any contract of common pools entered into by the association will contain a provision to the effect that if, for any reason, it becomes impossible to successfully merge the bets placed in another jurisdiction into the common pool formed by the class 1 racing association, or if, for any reason, the commission's or the association's representative determines that attempting to effect transfer of pool data from the guest association may endanger the association's wagering pool, the association will have no liability for any measures taken which may result in the guest's wagers not being accepted into the pool.

(5) If for any reason it becomes impossible to successfully merge pool data into the common pool of the class 1 racing association, or it is determined that attempting to effect transfer of pool data from the guest jurisdiction may endanger the class 1 racing associations wagering pool, or cause an unreasonable delay of the racing program, the class 1 racing association's mutuel manager or designee will determine under the circumstances whether to manually merge guests pools, exclude guests pools or delay the Washington pools.

(6) Scratched horses will be communicated via facsimile machine, telephone or other approved method by the host mutuel manager to all guest mutuel managers except when the operating parimutuel system protocol performs these functions automatically or when the information is disseminated to the wagering network via satellite or video display. The host mutuel manager will communicate program changes to all guest sites via facsimile machine, telephone or other approved method.

(1) All permitted parimutuel wagering pools will be separately and independently calculated and distributed. Takeout will be deducted from each gross pool as stipulated by law. The remainder of the moneys in the pool will constitute the net pool for distribution as payoff on winning wagers.

(2) Either standard price or net price calculation procedures will be used to calculate wagering pools. However net price calculation will be used any time international wagering is conducted.

(a) Standard price calculation procedure:

Profit is net pool less gross amount bet on all place finishers. Finishers split profit 1/2 and 1/2 (place profit), then divide by gross amount bet on each place finisher for two unique prices.

Profit is net pool less gross amount bet on all show finishers. Finishers split profit 1/3 and 1/3 and 1/3 (show profit), then divide by gross amount bet on each show finisher for three unique prices.

(b) Net price calculation procedure:

Total profit is the total net pool less the total net amount bet on all place finishers. Finishers split total profit 1/2 and 1/2 (place profit), then divide by total net amount bet on each place finisher for two unique unbroken base prices.

Total profit is the total net pool less the total net amount bet on all show finishers. Finishers split total profit 1/3 and 1/3 and 1/3 (show profit), then divide by total net amount bet on each show finisher for three unique unbroken base prices.

(3) If a profit split results in only one covered winning betting interest or combinations it will be calculated the same as a single price pool.

(4) The individual pools outlined in these rules may be given alternative names by each association, provided prior approval is obtained from the commission.

(5) In the event a minus pool occurs in any parimutuel pool, the expense of said minus pool will be borne by the association.

(6) The association will pay to the holder of any ticket or tickets entitling the holder to participate in the distribution of a parimutuel pool the amount wagered by such holder plus a minimum of five percent thereof. This requirement is unaffected by the existence of a parimutuel pool which does not contain sufficient money to distribute said five percent to all persons holding such tickets.

(7) No person or corporation will directly or indirectly purchase parimutuel tickets or participate in the purchase of any part of a parimutuel pool for another for hire or for any gratuity.

(1) The amount wagered on the betting interest which finishes first is deducted from the net pool, the balance remaining being the profit; the profit is divided by the amount wagered on the betting interest finishing first, such quotient being the profit per dollar wagered to win on that betting interest.

(2) The net win pool will be distributed as a single price pool to winning wagers in the following precedence, based upon the official order of finish:

(a) To those whose selection finished first; but if there are no such wagers, then

(b) To those whose selection finished second; but if there are no such wagers, then

(c) To those whose selection finished third; but if there are no such wagers, then

(d) The entire pool will be refunded on win wagers for that race.

(3) If there is a dead heat for first involving:

(a) Horses representing the same betting interest, the win pool will be distributed as if no dead heat occurred.

(b) Horses representing two or more betting interests, the win pool will be distributed as a profit split.

(1) The amounts wagered to place on the first two betting interests to finish are deducted from the net pool, the balance remaining being the profit; the profit is divided into two equal portions, one being assigned to each winning betting interest and divided by the amount wagered to place on that betting interest, the resulting quotient is the profit per dollar wagered to place on that betting interest.

(2) The net place pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) If horses of a mutuel field finished in the first two places, as a single price pool to those who selected the mutuel field; otherwise

(b) As a profit split to those whose selection is included within the first two finishers; but if there are no such wagers on one of those two finishers, then

(c) As a single price pool to those who selected the one covered betting interest included within the first two finishers; but if there are no such wagers, then

(d) As a single price pool to those who selected the third-place finisher; but if there are no such wagers, then

(e) The entire pool will be refunded on place wagers for that race.

(3) If there is a dead heat for first involving:

(a) Horses representing the same betting interest, the place pool will be distributed as a single price pool.

(b) Horses representing two or more betting interests, the place pool will be distributed as a profit split.

(4) If there is a dead heat for second involving:

(a) Horses representing the same betting interest, the place pool will be distributed as if no dead heat occurred.

(b) Horses representing two or more betting interests, the place pool is divided with one-half of the profit distributed to place wagers on the betting interest finishing first and the remainder is distributed equally amongst place wagers on those betting interests involved in the dead heat for second.

(1) The amounts wagered to show on the first three betting interests to finish are deducted from the net pool, the balance remaining being the profit; the profit is divided into three equal portions, one being assigned to each winning betting interest and divided by the amount wagered to show on that betting interest, the resulting quotient being the profit per dollar wagered to show on that betting interest. The net show pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) If horses of a mutuel field finished in the first three places, as a single price pool to those who selected the mutuel field; otherwise

(b) If horses of a mutuel field finished as two of the first three finishers, the profit is divided with two-thirds distributed to those who selected the mutuel field and one-third distributed to those who selected the other betting interest included within the first three finishers; otherwise

(c) As a profit split to those whose selection is included within the first three finishers; but if there are no such wagers on one of those three finishers, then

(d) As a profit split to those who selected one of the two covered betting interests included within the first three finishers; but if there are no such wagers on two of those three finishers, then

(e) As a single price pool to those who selected the one covered betting interest included within the first three finishers; but if there are no such wagers, then

(f) As a single price pool to those who selected the fourth-place finisher; but if there are no such wagers, then

(g) The entire pool will be refunded on show wagers for that race.

(2) If there is a dead heat for first involving:

(a) Two horses representing the same betting interest, the profit is divided with two-thirds distributed to those who selected the first-place finishers and one-third distributed to those who selected the betting interest finishing third.

(b) Three horses representing a single betting interest, the show pool will be distributed as a single price pool.

(c) Horses representing two or more betting interests, the show pool will be distributed as a profit split.

(3) If there is a dead heat for second involving:

(a) Horses representing the same betting interest, the profit is divided with one-third distributed to those who selected the betting interest finishing first and two-thirds distributed to those who selected the second-place finishers.

(b) Horses representing two betting interests, the show pool will be distributed as a profit split.

(c) Horses representing three betting interests, the show pool is divided with one-third of the profit distributed to show wagers on the betting interest finishing first and the remainder is distributed equally amongst show wagers on those betting interests involved in the dead heat for second.

(4) If there is a dead heat for third involving:

(a) Horses representing the same betting interest, the show pool will be distributed as if no dead heat occurred.

(b) Horses representing two or more betting interests, the show pool is divided with two-thirds of the profit distributed to show wagers on the betting interests finishing first and second and the remainder is distributed equally amongst show wagers on those betting interests involved in the dead heat for third.

(1) The double requires selection of the first-place finisher in each of two specified races.

(2) The net double pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) As a single price pool to those whose selection finished first in each of the two races; but if there are no such wagers, then

(b) As a profit split to those who selected the first-place finisher in either of the two races; but if there are no such wagers, then

(c) As a single price pool to those who selected the one covered first-place finisher in either race; but if there are no such wagers, then

(d) As a single price pool to those whose selection finished second in each of the two races; but if there are no such wagers, then

(e) The entire pool will be refunded on double wagers for those races.

(3) If there is a dead heat for first in either of the two races involving:

(a) Horses representing the same betting interest, the double pool will be distributed as if no dead heat occurred.

(b) Horses representing two or more betting interests, the double pool will be distributed as a profit split if there is more than one covered winning combination.

(4) Should a betting interest in the first-half of the double be scratched prior to the close of wagering for the first double race or a betting interest declared a nonstarter, all money wagered on combinations including the scratched betting interest will be deducted from the double pool and refunded.

(5) Should a betting interest in the second-half of the double be scratched prior to the close of wagering on the first double race, all money wagered on combinations including the scratched betting interest will be deducted from the double pool and refunded.

(6) Should a betting interest in the second-half of the double be scratched after the close of wagering on the first double race, or declared a nonstarter, all wagers combining the winner of the first race with the scratched betting interest in the second race will be allocated a consolation payoff. In calculating the consolation payoff the net double pool will be divided by the total amount wagered on the winner of the first race and an unbroken consolation price obtained. The broken consolation price is multiplied by the dollar value of wagers on the winner of the first race combined with the scratched betting interest to obtain the consolation payoff. Breakage is not declared in this calculation. The consolation payoff is deducted from the net double pool before calculation and distribution of the winning double payoff. Dead heats including separate betting interests in the first race will result in a consolation payoff calculated as a profit split.

(7) If either of the double races are cancelled prior to the first double race, or the first double race is declared "no contest," the entire double pool will be refunded on double wagers for those races.

(8) If the second double race is cancelled or declared "no contest" after the conclusion of the first double race, the net double pool will be distributed as a single price pool to wagers selecting the winner of the first double race. In the event of a dead heat involving separate betting interests, the net double pool will be distributed as a profit split.

(9) Before the running of the second double race the association will announce and/or post the payoff of each combination coupled with the winner of the first half of the double race.

(1) The pick three requires selection of the first-place finisher in each of three specified races.

(2) The net pick three pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) As a single price pool to those whose selection finished first in each of the three races; but if there are no such wagers, then

(b) As a single price pool to those who selected the first-place finisher in any two of the three races; but if there are no such wagers, then

(c) As a single price pool to those who selected the first-place finisher in any one of the three races; but if there are no such wagers, then

(d) The entire pool will be refunded on pick three wagers for those races.

(3) If there is a dead heat for first in any of the three races involving:

(a) Horses representing the same betting interest, the pick three pool will be distributed as if no dead heat occurred.

(b) Horses representing two or more betting interests, the pick three pool will be distributed as follows:

(i) As a profit split to those whose selection finished first in each of the three races, if there are no such wagers,

(ii) As a single price pool to those who selected the first place finisher in any two of the three races, if there are no such wagers,

(iii) As a single price pool to those who selected the first place finisher in any one of the three races, if there are no such wagers,

(iv) The entire pool will be refunded on pick three wagers for those races.

(4) Should a betting interest in any of the three pick three races be scratched, the actual favorite, as evidenced by total amounts wagered in the win pool at the close of wagering on that race, will be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the win pool total for two or more favorites is identical, the substitute selection will be the betting interest with the lowest program number. The parimutuel system will produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

(5) If all three pick three races are cancelled or declared "no contest," the entire pool will be refunded on pick three wagers for those races.

(6) If one or two of the pick three races are cancelled or declared "no contest," the pick three pool will remain valid and will be distributed in accordance with subsection 2 of this rule.

(7) Before the running of the third pick three race the association will announce and/or post the payoff of each combination coupled with the winners of the first and second races of the pick three.

(8) The pick three may be given a distinctive name to be selected by the association conducting such races, such as "triple," subject to the prior approval of the commission.

(1) The quinella requires selection of the first two finishers, regardless of order, for a single race.

(2) The net quinella pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) If horses of a mutuel field finish as the first two finishers, as a single price pool to those selecting the mutuel field combined with the next separate betting interest in the official order of finish; otherwise

(b) As a single price pool to those whose combination finished as the first two betting interests; but if there are no such wagers, then

(c) As a profit split to those whose combination included either the first- or second-place finisher; but if there are no such wagers on one of those two finishers, then

(d) As a single price pool to those whose combination included the one covered betting interest included within the first two finishers; but if there are no such wagers, then

(e) The entire pool will be refunded on quinella wagers for that race.

(3) If there is a dead heat for first involving:

(a) Horses representing the same betting interest, the quinella pool will be distributed to those selecting the mutuel field combined with the next separate betting interest in the official order of finish.

(b) Horses representing two betting interests, the quinella pool will be distributed as if no dead heat occurred.

(c) Horses representing three or more betting interests, the quinella pool will be distributed as a profit split.

(4) If there is a dead heat for second involving horses representing the same betting interest, the quinella pool will be distributed as if no dead heat occurred.

(5) If there is a dead heat for second involving horses representing two or more betting interests, the quinella pool will be distributed to wagers in the following precedence, based upon the official order of finish:

(a) As a profit split to those combining the winner with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

(b) As a single price pool to those combining the winner with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

(c) As a profit split to those combining the betting interests involved in the dead heat for second; but if there are no such wagers, then

(d) As a profit split to those whose combination included the winner and any other betting interest and wagers selecting any of the betting interests involved in the dead heat for second; but if there are no such wagers, then

(e) The entire pool will be refunded on quinella wagers for that race.

(1) The exacta requires selection of the first two finishers, in their exact order, for a single race.

(2) The net exacta pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) If horses of a mutuel field finish as the first two finishers, as a single price pool to those selecting the mutuel field combined with the next separate betting interest in the official order of finish; otherwise

(b) As a single price pool to those whose combination finished in correct sequence as the first two betting interests; but if there are no such wagers, then

(c) As a profit split to those whose combination included either the first-place betting interest to finish first or the second-place betting interest to finish second; but if there are no such wagers on one of those two finishers, then

(d) As a single price pool to those whose combination included the one covered betting interest to finish first or second in the correct sequence; but if there are no such wagers, then

(e) The entire pool will be refunded on exacta wagers for that race.

(3) If there is a dead heat for first involving:

(a) Horses representing the same betting interest, the exacta pool will be distributed as a single price pool to those selecting the mutuel field combined with the next separate betting interest in the official order of finish.

(b) Horses representing two or more betting interests, the exacta pool will be distributed as a profit split.

(4) If there is a dead heat for second involving horses representing the same betting interest, the exacta pool will be distributed as if no dead heat occurred.

(5) If there is a dead heat for second involving horses representing two or more betting interests, the exacta pool will be distributed to ticket holders in the following precedence, based upon the official order of finish:

(a) As a profit split to those combining the first-place betting interest with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

(b) As a single price pool to those combining the first-place betting interest with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

(c) As a profit split to those wagers correctly selecting the winner for first-place and those wagers selecting any of the dead-heated betting interests for second-place; but if there are no such wagers, then

(d) The entire pool will be refunded on exacta wagers for that race.

(1) The trifecta requires selection of the first three finishers, in their exact order, for a single race.

(2) The net trifecta pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

(b) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

(c) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

(d) The entire pool will be refunded on trifecta wagers for that race.

(3) If less than three betting interests finish and the race is declared official, payoffs will be made based upon the order of finish of those betting interests completing the race. The balance of any selection beyond the number of betting interests completing the race will be ignored.

(4) If there is a dead heat for first involving:

(a) Horses representing three or more betting interests, all of the wagering combinations selecting three betting interests which correspond with any of the betting interests involved in the dead heat will share in a profit split.

(b) Horses representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place betting interest will share in a profit split.

(5) If there is a dead heat for second, all of the combinations correctly selecting the winner combined with any of the betting interests involved in the dead heat for second will share in a profit split.

(6) If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any of the betting interests involved in the dead heat for third will share in a profit split.

(7) Trifecta wagering is prohibited on any race in which there is a mutuel field.

(1) The twin trifecta requires selection of the first three finishers, in their exact order, in each of two designated races. Each winning ticket for the first twin trifecta race must be exchanged for a free ticket on the second twin trifecta race in order to remain eligible for the second-half twin trifecta pool. Winning first-half wagers will receive both an exchange and a monetary payoff. Both of the designated twin trifecta races will be included in only one twin trifecta pool.

(2) Twin trifecta wagering may be conducted by Class A and B licensees at the discretion of the commission upon written application by an association.

(3) After wagering closes for the first-half of the twin trifecta and commissions have been deducted from the pool, the net pool will then be divided into two separate pools: The first-half twin trifecta pool and the second-half twin trifecta pool. The percentage allocated to each pool must be approved by the commission.

(4) In the first twin trifecta race only, winning wagers will be determined using the following precedence, based upon the official order of finish for the first twin trifecta race:

(a) As a single price pool to those whose combination finished in the correct sequence as the first three betting interest; but if there are no such wagers, then

(b) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

(c) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

(d) The entire twin trifecta pool for that day will be refunded on twin trifecta wagers for that race and the second-half will be canceled.

(5) If no first-half twin trifecta ticket selects the first three finishers of that race in exact order, winning ticket holders will not receive any exchange tickets for the second-half twin trifecta pool. In such case, the second-half twin trifecta pool will be retained and added to any existing twin trifecta carry-over pool.

(6) Winning tickets from the first-half of the twin trifecta will be exchanged for tickets selecting the first three finishers of the second-half of the twin trifecta. The second-half twin trifecta pool will be distributed to winning wagers in the following precedence, based upon the official order of finish for the second twin trifecta race:

(a) As a single price pool, including any existing carry-over moneys, to those whose combination finished in correct sequence as the first three betting interest; but if there are no such tickets, then

(b) The entire second-half twin trifecta pool for that race will be added to any existing carry-over moneys and retained for the corresponding second-half twin trifecta pool of the next consecutive race card.

(7) Subject to subsection (18)(e) of this section of the twin trifecta rules, if a winning first-half twin trifecta ticket is not presented for cashing and exchange prior to the second-half twin trifecta race, the ticket holder may still collect the monetary value associated with the first-half twin trifecta pool but forfeits all rights to any distribution of the second-half twin trifecta pool.

(8) Twin trifecta wagering is prohibited on any race in which there is a mutuel field, except with written permission of the executive secretary.

(9) Should a betting interest in the first-half of the twin trifecta be scratched, those twin trifecta wagers including the scratched betting interest will be refunded.

(10) Should a betting interest in the second-half of the twin trifecta be scratched, an announcement concerning the scratch will be made and a reasonable amount of time will be provided for exchange of tickets that include the scratched betting interest.

(11) If there is a dead heat or multiple dead heats in either the first- or second-half of the twin trifecta, all twin trifecta wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, will be a winner. In the case of dead heat occurring in:

(a) The first-half of the twin trifecta, the payoff will be calculated as a profit split

(b) The second-half of the twin trifecta, the payoff will be calculated as a single price pool.

(12) If either of the twin trifecta races are canceled prior to the first twin trifecta race, or the first twin trifecta race is declared "no contest," the entire twin trifecta pool for that day will be refunded on twin trifecta wagers for that race and the second-half will be canceled.

(13) If the second-half twin trifecta race is canceled or declared "no contest," all exchange tickets and outstanding first-half winning twin trifecta tickets will be entitled to the net twin trifecta pool for that race as a single price pool, but not the twin trifecta carry-over. If there are no such tickets, the net twin trifecta pool will be distributed as described in subsection (4) of this section of the twin trifecta rules.

(14) If, due to a late scratch, the number of betting interests in the second-half of the twin trifecta is reduced to fewer than 3, all exchange tickets and outstanding first-half winning tickets will be entitled to the second-half twin pool for that race as a single price pool, but not the twin trifecta carry-over.

(15) If it be determined by the stewards that a horse has been prevented from racing because of the failure of the stall door of the starting gate to open (nonstarter) in the second-half of the twin trifecta only, there will be no refund or consolation payoff. The official order of finish as posted will be used to determine payoffs. This will not affect other pools for this race.

(16) A written request for permission to distribute the twin trifecta carry-over on a specific race card may be submitted to the commission. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date of race card for the distribution.

(17) Contrary to subsection (5) of this section of the twin trifecta rules, during a race card designated to distribute the twin trifecta carry-over, exchange tickets will be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the twin trifecta. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets will be issued for combinations as described in subsection (4) of this section of the twin trifecta rules.

(18) Should the twin trifecta carry-over be designated for distribution on a specified date, the following precedence will be followed in determining winning tickets for the second-half of the twin trifecta after completion of the first-half of the twin trifecta:

(a) As a single price pool to those whose combination finished in correct sequence as the first three betting interests; but if there are no such wagers, then

(b) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

(c) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

(d) As a single price pool to holders of valid exchange tickets.

(e) As a single price pool to holders of outstanding first-half winning tickets.

(19) The twin trifecta carry-over will be designated for distribution on a specified date and race card only under the following circumstances:

(a) Upon written approval from the commission as provided in subsection (16) of this section of the twin trifecta rules.

(b) On the closing race card of the meet or split meet.

(20) If, for any reason, the twin trifecta carry-over must be held over to the corresponding twin trifecta pool of the association's subsequent meet, the carry-over will be deposited in an interest-bearing account approved by the commission. The twin trifecta carry-over plus accrued interest will then be added to the second-half twin trifecta pool of the association's following meet.

(21) If racing is canceled prior to the first-half of the twin trifecta on the closing race card of the meet or split meet, the carry-over will be held over in accordance with subsection (19) of this section of the twin trifecta rules.

(22) If racing is canceled after the running of the first-half but before the running of the second-half on the closing race card of the meet or split meet, the carry-over pool will be paid as a single price to holders of exchange tickets or outstanding winning tickets from the first-half.

(23) Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of valid exchange tickets is prohibited. This will not prohibit necessary communications between parimutuel system and parimutuel department employees for processing of pool data.

(24) The acceptance of a twin trifecta ticket by taking an issued ticket away from the window of the terminal from which it was issued will constitute an acknowledgment by the bettor that the ticket is correct. Exchange tickets may not be canceled and/or reissued except as provided by these rules. The association, parimutuel company, and state will not be liable to any person for a twin trifecta ticket which is not:

(a) A winning ticket in accordance with the provisions of this rule; or

(b) Delivered for any reason, including but not limited to mechanical malfunction, electrical failure, machine locking, phone line failure, or other cause.

(25) Twin trifecta tickets will be sold and exchanged only by the association through parimutuel machines.

(26) The twin trifecta carry-over may be capped at a designated level approved or set by the commission so that if, at the close of any race card, the amount in the twin trifecta carry-over equals or exceeds the designated cap, the twin trifecta carry-over will be frozen until it is won or distributed under other provisions of this rule. After the twin trifecta carry-over is frozen, 100 percent of the net twin trifecta pool for each individual race will be distributed to winners of the first-half of the twin trifecta pool.

(1) The superfecta requires selection of the first four finishers, in their exact order, for a single race.

(2) The net superfecta pool will be distributed to winning wagers in the following precedence, based upon the official order of finish:

(a) As a single price pool to those whose combination finished in correct sequence as the first four betting interests; but if there are no such wagers, then

(b) As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

(c) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

(d) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

(e) The entire pool will be refunded on superfecta wagers for that race.

(3) If less than four betting interests finish and the race is declared official, payoffs will be made based upon the order of finish of those betting interests completing the race. The balance of any selection beyond the number of betting interests completing the race will be ignored.

(4) If there is a dead heat for first involving:

(a) Horses representing four or more betting interests, all of the wagering combinations selecting four betting interests which correspond with any of the betting interests involved in the dead heat will share in a profit split.

(b) Horses representing three betting interests, all of the wagering combinations selecting the three dead-heated betting interests, irrespective of order, along with the fourth-place betting interest will share in a profit split.

(c) Horses representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place and fourth-place betting interests will share in a profit split.

(5) If there is a dead heat for second involving:

(a) Horses representing three or more betting interests, all of the wagering combinations correctly selecting the winner combined with any of the three betting interests involved in the dead heat for second will share in a profit split.

(b) Horses representing two betting interests, all of the wagering combinations correctly selecting the winner, the two dead-heated betting interests, irrespective of order, and the fourth-place betting interest will share in a profit split.

(6) If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, along with any two of the betting interests involved in the dead heat for third will share in a profit split.

(7) If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers, in correct sequence, along with any of the betting interests involved in the dead heat for fourth will share in a profit split.

(8) Superfecta wagering is prohibited on any race in which there is a mutuel field.

(1) The pentafecta requires selection of the first five finishers in their exact order, for a single race.

(2) The net pentafecta pool will be distributed as a single price pool to those who selected the first five finishers in exact order based on the official order of finish. If there are no such wagers, then the net pentafecta pool will be carried forward to the next pentafecta performance as a carryover or added to an existing carryover.

(3) If less than five betting interests finish the race and the race is declared official, the entire pentafecta pool for that performance will be refunded.

(4) If, due to a late scratch or a participant is declared a nonstarter, and this causes the number of betting interest in the pentafecta pool to be reduced to fewer than five, the entire pentafecta pool for that performance will be refunded.

(5) If the pentafecta contest is canceled or declared "no contest," the entire pentafecta pool for that performance will be refunded.

(6) If horses representing the same betting interest finish in the first five positions, the pentafecta pool will be distributed as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

(7) If there is a dead heat for first involving:

(a) Horses representing five or more betting interests, all of the wagering combinations selecting five betting interests which correspond with any of the betting interests involved in the dead heat will share in a profit split.

(b) Horses representing four betting interests, all of the wagering combinations selecting the four dead-heated betting interests, irrespective of order, along with the fifth-place betting interest will share in a profit split.

(c) Horses representing three betting interests, all of the wagering combinations selecting the three dead-heated betting interests, irrespective of order, along with the fourth-place and fifth-place betting interests will share in a profit split.

(d) Horses representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, irrespective of order, along with the third-place, fourth-place and fifth-place betting interests will share in a profit split.

(8) If there is a dead heat for second involving:

(a) Horses representing four or more betting interests, all of the wagering combinations correctly selecting the winner combined with any of the four or more betting interests involved in the dead heat for second will share in a profit split.

(b) Horses representing three betting interests, all of the wagering combinations correctly selecting the winner, the three dead-heated betting interests, irrespective of order, and the fifth-place betting interests will share in a profit split.

(c) Horses representing two betting interests, all of the wagering combinations correctly selecting the winner, the two dead-heated betting interests, irrespective of order, and the fourth-place and fifth-place betting interests will share in a profit split.

(9) If there is a dead heat for third involving:

(a) Horses representing three or more betting interests, all of the wagering combinations correctly selecting the winner, the second-place betting interest, and the three or more dead-heated betting interests will share in a profit split.

(b) Horses representing two betting interests, all the wagering combinations correctly selecting the winner, the second-place betting interest, the two dead-heated betting interests, irrespective of order and the fifth-place betting interest will share in a profit split.

(10) If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers, in correct sequence, along with any two of the betting interests involved in the dead heat for fourth will share in a profit split.

(11) If there is a dead heat for fifth, all wagering combinations correctly selecting the first four finishers, in correct sequence, along with any of the betting interests involved in the dead heat for fourth will share in a profit split.

(12) Pentafecta wagering is prohibited on any race in which there is more than one mutuel field, except with written permission of the board of stewards.

(13) Mandatory distribution of the carryover. The pentafecta carryover will be designated for a change in distribution on a specified date and performance under the following circumstances:

(a) Upon approval from the board of stewards. If the designated date of the race for the mandatory distribution is during the race meet and the carryover pool is not distributed, the pentafecta wager must be offered on a subsequent race until the carryover pool is distributed. A written request must contain the following information:

(i) The reason and justification for the change.

(ii) The date of the proposed distribution.

(b) On the closing performance of the meet.

(14) If the pentafecta pool and any carryover are approved for distribution, the net pentafecta pool and carryover, if any, will be distributed as a single price pool to winning wagers based upon the official order of finish.

(a) As a single price pool to those whose combination finished in correct sequence as the first five betting interests; but if there are no such wagers, then

(b) As a single price pool to those whose combination included, in correct sequence, the first four betting interests; but if there are no such wagers, then

(c) As a single price pool to those whose combination included, in correct sequence, the first three betting interests; but if there are no such wagers, then

(d) As a single price pool to those whose combination included, in correct sequence, the first two betting interests; but if there are no such wagers, then

(e) As a single price pool to those whose combination correctly selected the first-place betting interest only; but if there are no such wagers, then

(f) The entire net pool will be refunded on pentafecta wagers for that race and the carryover, if any, will be held over to a pentafecta pool of the subsequent meet.

(15) If, for any reason, the pentafecta carryover must be held over to the corresponding pentafecta pool of a subsequent meet, the carryover will be deposited in an interest-bearing account approved by the executive secretary. The pentafecta carryover plus accrued interest will then be added to the net pentafecta pool of the following meet on a date and performance approved by the board of stewards.

(1) The pick (n) requires selection of the first-place finisher in each of a designated number of races. The association must obtain written approval from the executive secretary concerning the scheduling of pick (n) races, the designation of one of the methods prescribed in part (2), and the amount of any cap to be set on the carryover. The number of races so designated must be more than three (3), but no greater than ten (10). Any changes to the approved pick (n) format require prior approval from the executive secretary.

(2) The pick (n) pool will be apportioned under one of the following methods:

(a) Method 1, pick (n) with carryover: The net pick (n) pool and carryover, if any, will be distributed as a single price pool to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races; and the remainder will be added to the carryover.

(b) Method 2, pick (n) with minor pool and carryover: The major share of the net pick (n) pool and the carryover, if any, will be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the minor share of the net pick (n) pool will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races; and the major share will be added to the carryover.

(c) Method 3, pick (n) with no minor pool and no carryover: The net pick (n) pool will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races, based upon the official order of finish. If there are no winning wagers, the pool is refunded.

(d) Method 4, pick (n) with minor pool and no carryover: The major share of the net pick (n) pool will be distributed to those who selected the first-place finisher in the greatest number of pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher in a second greatest number of pick (n) races, the minor share of the net pick (n) pool will be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races. If the greatest number of first-place finishers selected is one (1), the major and minor shares are combined for distribution as a single price pool. If there are no winning wagers, the pool is refunded.

(e) Method 5, pick (n) with minor pool and no carryover: The major share of net pick (n) pool will be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The minor share of the net pick (n) pool will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher in all pick (n) races, the entire net pick (n) pool will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races. If there are no wagers selecting the first-place finisher in a second greatest number of pick (n) races, the minor share of the net pick (n) pool will be combined with the major share for distribution as a single price pool to those who selected the first-place finisher in each of the pick (n) races. If there are no winning wagers, the pool is refunded.

(f) Method 6, pick (n) with minor pool, jackpot pool, major carryover and jackpot carryover: Predetermined percentages of the net pick (n) pool will be set aside as a major pool, minor pool and jackpot pool. The major share of the net pick (n) pool and the major carryover, if any, will be distributed to those who selected the first-place finisher of each of the pick (n) races, based upon the official order of finish. If there are no tickets selecting the first-place finisher in each of the pick (n) races, the major net pool will be added to the major carryover. If there is only one single ticket selecting the first-place finisher of each of the pick (n) races, based upon the official order of finish, the jackpot share of the net pick (n) pool and the jackpot carryover, if any, will be distributed to the holder of that single ticket, along with the major net pool and the major carryover, if any. If more than one ticket selects the first-place finisher of each of the pick (n) races the jackpot net pool will be added to the jackpot carryover. The minor share of the net pick (n) pool will be distributed to those who selected the first-place finisher of the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the minor net pool of the pick (n) pool will be distributed as a single price pool to those who selected the first-place finisher of the greatest number of pick (n) races.

(g) Method 7, with carryover and "Unique Winning Ticket" provision: The net pick (n) pool and carryover, if any, shall be distributed to the holder of a single, unique winning ticket that selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. If there is more than one ticket selecting the first-place finisher in each of the pick (n) races, the major share of the net pick (n) pool will be distributed as a single price pool to those ticket holders, and the minor share will be added to the carryover. If there are no tickets selecting the first-place finisher in each of the pick (n) races, the major share of the net pick (n) pool will be distributed to those who selected the first-place finisher in the greatest number of pick (n) races, and the minor share will be added to the carryover. If there are no tickets that selected at least one first-place finisher in any of the pick (n) races, the day's net pool is refunded and the previous carryover pool amount, if any, shall be carried over to the next scheduled corresponding pool.

(h) Method 8, pick (n) with the pool split into three shares, one share having a carryover: The share percentages are determined by the pool host and approved by the executive secretary. The first share of the net pick (n) pool and the carryover, if any, will be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The second share of the net pick (n) pool will be distributed to those who selected (n-1) of the pick (n) races, based upon the official order of finish and a third share of the pick (n) pool will be distributed to those who selected (n-2) of the pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the first share will be added to the carryover. If there are no wagers selecting (n-1) of the pick (n) races, the second share will be added to the carryover. If there are no wagers selecting (n-2) of the pick (n) races, the third share will be added to the carryover. Where there is no correct selection of the first-place finisher in at least one of the pick (n) races, based upon the official order of finish, the day's net pool will be refunded and the previous carryover pool amount, if any, will be carried over to the next scheduled corresponding pool.

(i) Method 9, pick (n) with pool split into three shares, with carryovers, and a "Unique Winning Ticket" provision: The share percentages are determined by the pool host and approved by the executive secretary. The first share of the net pick (n) pool and the first share carryover, if any, will be distributed to those who selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. The second share of the net pick (n) pool will be distributed to those who selected the first-place finisher in the second greatest number of pick (n) races, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (n) races, the second share of the net pick (n) pool will be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races, and the first share will be added to the first share carryover. The third share and the third share carryover, if any, will be distributed to the holder of a unique winning ticket that selected the first-place finisher in each of the pick (n) races, based upon the official order of finish. If there is no unique winning ticket selecting the first-place finisher in each of the pick (n) races, the third share shall be added to the third share carryover. For greater certainty, the holder of a unique winning ticket shall receive both the first share, and first share carryover, if any, as well as the third share, and the third share carryover, if any. Where there is no correct selection of the first-place finisher in at least one of the pick (n) races, based upon the official order of finish, the day's net pool will be refunded and the previous carryover pool(s) amount(s), if any, will be carried over to the next scheduled corresponding pool. In obtaining authorization for operating the pick (n) pool under this subsection, associations must clearly identify which definition under subsection (15) of this section will be relied upon for determining the existence of a unique winning ticket.

(3) If there is a dead heat for first in any of the pick (n) races involving:

(a) Horses representing the same betting interest, the pick (n) pool will be distributed as if no dead heat occurred.

(b) Horses representing two or more betting interests, the pick (n) pool will be distributed as a single price pool with each winning wager receiving an equal share of the profit.

(4) Should a betting interest in any of the pick (n) races be scratched:

(a) The racing association may allow patrons the option of selecting an alternate betting interest prior to the running of the first leg of the pick (n). The selected alternate betting interest will be substituted for the scratched betting interest, for all purposes, including pool calculations.

(b) If no alternate betting interest is selected or the selected alternate betting interest is also scratched, the actual favorite, as evidenced by total amounts wagered in the win pool at the close of wagering on that race, will be substituted for the scratched betting interest for all purposes, including pool calculations. In the event that the win pool total for two or more favorites is identical, the substitute selection will be the betting interest with the lowest program number. The parimutuel system will produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

(5) The pick (n) pool will be canceled and all pick (n) wagers for the individual race day will be refunded if:

(a) At least three races included as part of a pick 4, pick 5 or pick 6 are canceled or declared "no contest."

(b) At least four races included as part of a pick 7, pick 8 or pick 9 are canceled or declared "no contest."

(c) At least five races included as part of a pick 10 are canceled or declared "no contest."

(6) If at least one race included as part of a pick (n) is canceled or declared "no contest," but not more than the number specified in subsection 5 of this rule, the net pool will be distributed as a single price pool to those whose selection finished first in the greatest number of pick (n) races for that race day. Such distribution will include the portion ordinarily retained for the pick (n) carryover but not the carryover from previous race days.

(7) The pick (n) carryover may be capped at a designated level approved by the commission so that if, at the close of any race day, the amount in the pick (n) carryover equals or exceeds the designated cap, the pick (n) carryover will be frozen until it is won or distributed under other provisions of this rule. After the pick (n) carryover is frozen, 100 percent of the net pool, part of which ordinarily would be added to the pick (n) carryover, will be distributed to those whose selection finished first in the greatest number of pick (n) races for that race day.

(8) A written request for permission to distribute the pick (n) carryover on a specific race day may be submitted to the executive secretary. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and race day for the distribution.

(9) Should the pick (n) carryover be designated for distribution on a specified date and race day in which there are no wagers selecting the first-place finisher in each of the pick (n) races, the entire pool will be distributed as a single price pool to those whose selection finished first in the greatest number of pick (n) races. The pick (n) carryover will be designated for distribution on a specified date and race day only under the following circumstances:

(a) Upon written approval from the commission as provided in subsection (8) of this section.

(b) Upon written approval from the executive secretary when there is a change in the carryover cap, a change from one type of pick (n) wagering to another, or when the pick (n) is discontinued.

(c) On the closing race day of the meet or split meet.

(10) If, for any reason, the pick (n) carryover must be held over to the corresponding pick (n) pool of a subsequent meet, the carryover will be deposited in an interest-bearing account approved by the commission. The pick (n) carryover plus accrued interest will then be added to the net pick (n) pool of the following meet on a date and race day so designated by the commission.

(11) With the written approval of the executive secretary, the association may contribute to the pick (n) carryover a sum of money up to the amount of any designated cap.

(12) Providing information to any person that is not made available to the public regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of live tickets remaining is prohibited.

(13) The total amount of the net pool and information of probable payouts for each of the runners when the last race of the pick (n) wager is the only race remaining to be run may be displayed to the public.

This will not prohibit necessary communication between parimutuel system and parimutuel department employees for processing of pool data.

(14) The association may suspend previously approved pick (n) wagering with the prior approval of the executive secretary. Any carryover will be held until the suspended pick (n) wagering is reinstated. An association may request approval of a pick (n) wager or separate wagering pool for specific race day.

(15) As it relates to any distribution method in subsection (2) of this section which contains a unique winning ticket provision:

(a) A written request for permission to distribute the pick (n) unique winning carryover on a specific performance may be submitted to the executive secretary. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution. Should the pick (n) unique winning ticket net pool and any applicable carryover be designated for distribution on a specified date and performance in which there is no unique winning ticket, the entire pool shall be distributed as a single price pool to those who selected the first-place finisher in the greatest number of pick (n) races.

(b) Associations must use the following criteria for determining the existence of a unique winning ticket:

(i) There is one and only one winning ticket that correctly selected the first-place finisher in each of the pick (n) races, based upon the official order of finish, to be verified by the unique serial number assigned by the tote company that issued the winning ticket; and

(ii) The total amount wagered on the one and only one winning combination selecting the first-place finisher in each of the pick (n) races, based upon the official order of finish, is equal to the minimum allowable wager.

(1) The group bet is a form of parimutuel wagering and part of the win pool in every race in which it is offered. The group bet is a bet to win on every participant in the selected group.

(2) A racing association may not offer a group bet unless the format associated with the particular group bet wagering event is first approved by the executive secretary. The request must be made in writing at least three days prior to the commencement of public wagering on the proposed group bet and the licensee may not offer public wagering on the proposed group bet until written approval of the executive secretary is issued. In approving any request of a racing association related to a group bet, the executive secretary may impose such conditions as are consistent with the best interests of racing and the interests of the wagering public.

(3) In each race in which the group bet is offered, the association will designate one horse that will not be a member of either group (usually the morning line favorite) and designate the remaining horses as members of one of two groups, Group A and Group B. The horses comprising each group will number two or more horses and the number of horses in each group need not be the same, except as provided in subsection (8)(c) or (d) of this section. Each horse in a race where the group bet is offered must be a member of Group A, a member of Group B, or the sole nongroup horse.

(4) In each race in which the group bet is offered, there will be a win payoff for bettors selecting the winning participant in standard win betting and, in the event a member of one of the groups wins the race, a group-bet win payout for those bettors wagering on the winning group. If the nongroup horse wins the race, there will be no payout for the group bet.

(5) The identity of the nongroup horse and the members of Group A and Group B will be disseminated in the track program. This information may also be disseminated by the track announcer, on television monitors and, where applicable, by authorized advance deposit wagering service providers.

(6) The minimum bet for the group bet is the same as the minimum bet to win. The amount bet on Group A and Group B will be allocated among the members of the respective group in proportion to the amount bet on such member to win in standard win betting. Allocations may be made in fractional amounts less than the minimum permissible bet to win.

(7) The payout for a winning group bet will be the same regardless of which member of the group is the race winner. The probable and actual payoff for a winning group bet on Group A or Group B will be displayed in a similar manner as the probable and actual payout for a standard win bet.

(8) In the event of scratches in a race with a group bet, the following procedure will be followed:

(a) In the event that the nongroup horse is scratched or declared a nonstarter, group betting will cease and all wagers on both groups refunded.

(b) In the event of a scratch or a declaration of nonstarter of all of the members of a group, group betting will cease and all wagers on both groups will be refunded.

(c) In the event of a scratch or declaration of nonstarter of a member of a group, moneys previously allocated to the scratched runner or nonstarter will be reallocated amongst the remaining member or members of that group.

(d) In the event of a scratch or declaration of nonstarter of one or more horses in a group resulting in only one horse remaining in that group, the remaining horse in that group will remain a valid betting interest and no refund will be granted.

(9) In the event of a dead heat to win involving two or more members of the same group, the group bet payout will be calculated in the same manner as if there was one winner of the race and such winner was a member of such group. In the event of a dead heat to win involving the nongroup horse and one or more members of either group, or one or more members of different groups, the group bet payout will be determined in the same manner as the calculation of the win payoff, i.e., by dividing the net win wagering pool.

(10) If circumstances occur which are not addressed by these rules, they will be resolved by the board of stewards in a manner that is consistent with this rule and in accord with accepted parimutuel practices. Decisions regarding the group bet made by the board of stewards will be final.

(1) The future wager requires selection of the first-place finisher in a specified contest.

(2) The association will apply in writing to the commission for approval to offer the future wager on the specified contest and will not offer the wager until the commission approval has been granted. The written application will include the date and time for the pool to be opened and closed, a description of the system for compiling the pool and calculating odds and payout prices, and the time interval for displaying the odds.

(3) The association, or in the case of common pool wagering the host track, will name the contestants included in each betting interest on which future wagers may be made and will assign a program number to each betting interest.

(4) The amount wagered on the betting interest which finishes first in the specified race is deducted from the net pool, the balance remaining being the profit; the profit is divided by the amount wagered on the betting interest finishing first, such quotient being the profit per dollar wagered in the future pool on that betting interest.

(5) The net future pool will be distributed as a single price pool to winning wagers in the following precedence, based upon the official order of finish:

(a) To those whose selection finished first; but if there are no such wagers, then

(b) To those whose selection finished second; but if there are no such wagers, then

(c) To those whose selection finished third; but if there are no such wagers, then

(d) The entire pool will be refunded on future pool wagers for that contest.

(6) If there is a dead heat for first involving:

(a) Contestants representing the same betting interest, the future pool will be distributed as if no dead heat occurred.

(b) Contestants representing two or more betting interests, the future pool will be distributed as a profit split.

(7) No refund will be issued for future wager pool wagers on betting interests that do not start or finish the race. If the association becomes aware or is notified that a betting interest is ineligible or unable to start the race and the pool is still open, the association will immediately close betting on that betting interest.

(8) The entire future wager pool will be refunded if:

(a) The situation described at subsection 5(d) occurs; or

(b) The specified race is declared no contest by the judges/stewards having jurisdiction over the specified race; or

(c) The specified race does not occur; or

(d) For whatever reason, the future wager pool cannot be determined and the payout price cannot be calculated.

(1) The choose (n) is a form of parimutuel wagering, in which bettors attempt to select the winners of a specific number of races (n). The choose (n) pool will be held separately from all other pools and will in no way be part of a daily double, exacta, trifecta or any other wagering pool. The choose (n) is a pool wherein the bettor is required to select any (n) winning horses from that particular card and is not a parlay (a wager using the proceeds of a previous winning bet).

(2) The association must obtain approval from the executive secretary concerning the format and scheduling of choose (n) contests, the races in which choose (n) wagering will be permitted, and the amount of any cap to be set on the carryover. The choose (n) pool will close after each race but will reopen with respect to subsequent races that have not yet been run provided that there are at least as many races remaining as required to be selected on a winning choose (n) ticket. Once approved, any changes will require approval from the executive secretary.

(3) The number of races in a choose (n) pool is designated by the association, while the specific races wagered on are at the discretion of the bettor. The races need not be consecutive and the first race of a choose (n) ticket may begin at any time provided that there are an adequate number of races left on the program. The bettor may purchase a choose (n) ticket allowing the bettor to select any (n) races from the entire card, unless the association has designated a race not eligible for the choose (n) pool.

(4) The choose (n) pool will be apportioned under one of the following methods:

(a) Method one - Choose (n) no carryover: The choose (n) "net wagering pool" will be equally distributed to the holder or holders of choose (n) tickets which correctly select (n) first place winners from the eligible races comprising the choose (n). If no choose (n) ticket correctly selects (n) first place winners from choose (n) eligible races, the "net wagering pool" of a choose (n) with no carryover amount will be equally distributed to the ticket holder or holders selecting the greatest number of first place winners of the races comprising the choose (n). If there are no winning wagers, the pool is refunded.

(b) Method two - Choose (n) with carryover: The choose (n) "net wagering pool" and carryover, if any, will be distributed as a single price pool to holders of choose (n) tickets which have correctly selected the winner of (n) races of the races comprising the choose (n). However, if no choose (n) ticket correctly selects the first place winner in (n) races comprising the choose (n), twenty-five percent of the net wagering pool for that particular choose (n) will be equally distributed to the holder or holders of choose (n) tickets correctly selecting the greatest number of first place winners of the races comprising the choose (n) and the remaining seventy-five percent of the net wagering pool for that particular choose (n) will be added as the "carryover amount" portion of the wagering pool for designated subsequent choose (n) offerings by the association. In any choose (n) with a "carryover amount" feature, one hundred percent of the "net wagering pool" for the particular choose (n) plus any accumulated "carryover amount," will be equally distributed to the holder or holders of choose (n) tickets which correctly select the first place winners in (n) races comprising the choose (n).

(5) The association will determine the denominations of the choose (n) tickets. No less than two or more than six races will comprise any choose (n) ticket.

(6) The choose (n) tickets will be clearly and immediately distinguishable from other parimutuel tickets.

(7) Those horses constituting an entry or field, as defined by rule, will race in any choose (n) race as a single wagering interest for purposes of the choose (n) pool calculations. A scratch after wagering has begun of any part of the entry or field selection in a race will have no effect on the status of such entry or field as a wagering interest.

(8) At any time after wagering begins on the choose (n) contest, should a horse, entire betting entry or field be scratched or declared a nonstarter in any choose (n) race, no further tickets selecting such horses, entry or field will be issued, and wagers upon such horse, entry or field for purposes of the choose (n) will be deemed wagers upon the horse, entry or field on which the most money has been wagered in the win pool at the close of win betting for such race. In the event that two horses have the exact amount wagered on them, the horse, entry or field with the lowest program number will be designated.

(9) In the event of a dead heat for win between two or more horses in any of the choose (n) races, all such horses will be considered as the winning horse for the purpose of distributing the choose (n) pool.

(10) The choose (n) pool with a carryover will be calculated as follows:

(a) One hundred percent of the net amount in the choose (n) pool subject to distribution among winning ticket holders will be distributed among holders of choose (n) tickets which have correctly selected the winner of (n) races of the races comprising the choose (n).

(b) In the event there is no choose (n) ticket which correctly designates the winner of (n) races from the races that comprise the choose (n), twenty-five percent of that racing date's net amount available for distribution will be distributed among the holders of choose (n) tickets correctly designating the most winning selections of the races that comprise the choose (n), and the remaining seventy-five percent of said pool will be carried over and added to the pool on the next day that the wager is conducted.

(c) If, on the last day on which the choose (n) is conducted at a horse race meeting, no one selects the winning horse in (n) races, the total amount of the choose (n) pool which exists on that day will be paid to the bettor or bettors selecting the largest number of winning horses in those races. In no event will any part of the pool be carried over to the next year's race meeting, except for reasons beyond the control of the licensee and upon the approval of the executive secretary. If, for any reason, the choose (n) carryover must be held over to the corresponding choose (n) pool of a subsequent meet, the carryover will be deposited in an interest-bearing account approved by the executive secretary. The choose (n) carryover plus accrued interest will then be added to the net choose (n) pool of the following meet on a date and performance approved by the board of stewards.

(11) When the distance of the race is changed or the condition of the turf course warrants a change of racing surface in any of the races open to choose (n) wagering, and such change has not been made known to the betting public prior to the close of wagering for the first choose (n) race, the stewards will declare the changed races a "no contest" for choose (n) wagering purposes and the pool will be distributed in accordance with subsection (10) of this section. Following the designation of a race as a "no contest," no tickets will be sold selecting a horse in such "no contest" race. Any race that has been canceled or declared a "no contest" will not be considered a contested race for choose (n) purposes.

(12) If, for any reason, one or more races are canceled or declared a "no contest," the choose (n) pool will be paid using the following formula:

(a) Choose two: Any live ticket regardless of its starting point that has not completed at least two contested legs will be refunded. After two or more races have run, one hundred percent of the daily pool plus any carryover will be distributed in accordance with subsection (10) of this section.

(b) Choose three: Any ticket regardless of its starting point that has not completed at least three contested legs will be refunded. After three or more races have run, one hundred percent of the daily pool plus any carryover will be distributed in accordance with subsection (10) of this section.

(c) Choose four: Any ticket regardless of its starting point that has not completed at least four contested legs must be refunded. After four or more races have run, one hundred percent of the daily pool plus any carryover will be distributed in accordance with subsection (10) of this section.

(d) Choose five: Any ticket regardless of its starting point that has not completed at least four contested legs will be refunded.

(i) In the event that only four choose five races are contested: One hundred percent of that day's net pool (not including any carryover), after refunds, will be paid to tickets with four wins and no losses.

(ii) In the event that at least five races have been contested for the choose five, seventy-five percent of that day's net pool (after refunds) plus any carryover will be paid to tickets with five wins and twenty-five percent of the pool will be paid to tickets with four wins and no losses. In the event no ticket has five wins, seventy-five percent of the daily pool will be paid to tickets with four wins and a selection in the canceled race and twenty-five percent paid to tickets with three wins and a selection in two of the canceled races.

(e) Choose six: Any ticket regardless of its starting point that has not completed at least four contested legs will be refunded.

(i) In the event only four choose six races are contested, one hundred percent of the day's net pool (not including any carryover) after refunds, will be paid to tickets with four wins.

(ii) In the event that only five choose six races are contested, seventy-five percent of the daily pool (after refunds) will be paid to tickets with five wins and twenty-five percent to tickets with four wins and no losses and a selection in the noncontested race.

(iii) In the event that at least six races have been contested for the choose six and two or more races have not been contested, seventy-five percent of the daily pool plus any carryover will be paid to tickets with six wins, eighteen and three-quarter percent of the daily pool to tickets with five wins and a selection in a noncontested race, and six and one-quarter percent of the daily pool will be paid to tickets with four wins and selections in two of the noncontested races. If no ticket has six wins, fifty percent of the daily pool will be paid to tickets with five wins and a selection in a noncontested race, twenty-five percent of the daily pool to tickets with four wins and selections in two noncontested races, and twenty-five percent of the daily pool to tickets with five wins and one loss.

(iv) In the event that at least six races have been contested for the choose six and one race has not been contested, seventy-five percent of the daily pool plus any carryover must be paid to tickets with six wins and twenty-five percent of the daily pool to tickets with five wins and a selection in the noncontested race. If no ticket has six wins, seventy-five percent of the daily pool must be paid to tickets with five wins and a selection in the noncontested race and twenty-five percent of the daily pool to tickets with five wins and one loss.

(v) In the event that there is no payable ticket in a category within any of these subsections, that portion of the daily pool will be divided equally between the other categories within that subsection. In the event that there is no payable ticket within a subsection, the entire daily pool will be carried over and added to the choose (n) pool on the next day that the choose (n) wagering is conducted.

(13) When there is a cancellation of the race card or a race is declared a no contest and there are any changes in the calculation of the choose (n) other than provided for in subsection (12) of this section, the change must be approved by board of stewards.

(14) If, for any reason, the race card is canceled, wagering on the choose (n) pool must close immediately and the choose (n) pool must be distributed in accordance with subsection (12) of this section.

(15) The choose (n) carryover may be capped at a designated level if approved by the board of stewards so that if at the close of any performance, the amount in the choose (n) carryover equals or exceeds the designated cap, the choose (n) carryover will be frozen until it is won or distributed under other provisions of this rule. After the choose (n) carryover is frozen, one hundred percent of the net pool, part of which would ordinarily be added to the choose (n) carryover, must be equally distributed to the ticket holder or holders selecting the greatest number of first place winners of the races comprising the choose (n) for that performance.

(16) A written request for permission to distribute the choose (n) carryover on a specific performance may be submitted to the board of stewards. The request must contain justification for the distribution, an explanation of the benefit to be derived, and the intended date and performance for the distribution.

(17) Should the choose (n) carryover be designated for distribution on a specified date and performance in which there are no wagers with (n) wins, the entire pool must be distributed as a single price pool to those whose selection finished first in the greatest number of choose (n) contests. The choose (n) carryover will be designated for distribution on a specified date and performance only under the following circumstances:

(a) Upon approval from the board of stewards as provided in this section.

(b) Upon approval from the board of stewards when there is a change in the carryover cap, a change from one type of choose (n) wagering to another, or when the choose (n) is discontinued.

(c) On the closing performance of the meet or split meet.

(18) With the approval of the board of stewards, the association may contribute to the choose (n) carryover a sum of money up to the amount of any designated cap.

(19) All choose (n) rules and methods of calculations must be available and posted for the bettors by the association.

(20) It is a violation of these rules for any person to provide information to any individual regarding covered combinations or amounts wagered on specific combinations. This rule is not intended to prohibit necessary communication between parimutuel system and parimutuel department employees for processing of pool data. The association may be permitted to provide information regarding number of tickets sold and number of live tickets remaining to the wagering public.

(21) The association may suspend previously approved choose (n) wagering with the prior approval of the commission. Any carryover will be held until the suspended choose (n) wagering is reinstated. An association may request approval of a choose (n) wager or separate wagering pool for specific performances.

(22) Should circumstances occur which are not addressed by these rules, the stewards will resolve them in accordance with general parimutuel practice. Decisions regarding distribution of the choose (n) pool made by the stewards will be final.

(1) Head-to-head wagering requires the selection of the winning contestant in a designated contest or series of contests, in a competition between two or more equally matched betting interests, or based on the sportsmanship and/or skill of the jockeys and/or trainers, regardless of the official placing of the other betting interests in that contest or series of contests.

(2) The choice of which contestants from a contest will participate in the head-to-head contest will be made as follows:

(a) The association must obtain approval from the board of stewards for each head-to-head contest.

(b) The matching of contestants for the head-to-head contest will be limited to contestant versus contestant, jockey versus jockey, and/or trainer versus trainer.

(c) The contestants chosen for the head-to-head wager will be conspicuously identified in the official program.

(3) The net head-to-head pool will be distributed to winning wagers in the following precedence, based on the official order of finish:

(a) As a single price pool to those whose selection finished first in a single head-to-head contest, or first in the greatest number of a series of head-to-head contests; but if there are no such wagers, then

(b) The head-to-head pool will be refunded.

(4) If there is a dead heat in a contest involving two or more of the contestants in:

(a) A single-contest head-to-head pool, then the entire pool will be refunded.

(b) One or more contests of a series, then all the contestants involved in the dead heat will be considered winners and the net pool will be distributed as a signal price pool, provided that;

(c) In a series of contests, if there is a dead heat in half or more of the contests then the head-to-head pool for those contests will be refunded.

(5) If any head-to-head contest is canceled or declared no contest:

(a) In a single-contest head-to-head pool, the pool will be refunded.

(b) In a series of contests, if half or more of the contests are canceled or declared no contest, then the head-to-head pool for those contests will be refunded.

(6) If any contestant is scratched or declared a nonstarter in any head-to-head contest, then that contest will be canceled.

(7) If all contestants fail to finish in a head-to-head contest, then that contest will be canceled.

(1) The 123racing pick (n) wager is a separate multileg parimutuel pool wager established by the association on a designated number of races. The gross pool consists of the total amount wagered for the multiple race bet. Winning wagers are determined by the highest points totals earned after all legs of the wager have been completed, based on cumulative mythical win, place, and show wager (an across the board wager), on one betting interest per wagering race. It is not a parlay and has no connection with or relation to other pools conducted by the association other than the utilization of live race payouts as a means of calculating players' fantasy points.

(2) A valid 123racing pick (n) wager ticket shall be evidence of a binding contract between the holder of the ticket and the association, and shall constitute an acceptance of 123racing pick (n) wager provisions and rules contained in this section.

(3) A 123racing pick (n) wager may be given a distinctive name by the association conducting the meeting, subject to the commission or executive secretaries approval, and existing licenses, copyrights, and/or patents.

(4) 123racing pick (n) wagers shall be conducted as follows:

(a) One wager requires a predetermined unit stake to be wagered into the gross pool and the selection of one betting interest per wagering race.

(b) "n" represents the number of races that complete the wager and will vary as determined by the host racing association, but shall include no less than four races.

(c) Each leg of the 123racing pick (n) wager consists of a mythical win, place, and show wager on one betting interest per race of the same unit stake as wagered into the gross pool. For example if the unit stake for the 123racing pick (n) is $2, each leg of the 123racing pick (n) wager consists of a mythical $2 win, place, and show wager (a $2 across the board wager) on one betting interest per race. An individual may place any number of separate 123racing pick (n) wagers into a pool.

(d) If a ticket has multiple selections in the same race, only the selection with the highest total points will be accumulated towards the 123racing pick (n) wager.

(e) Official program numbers must be used for all wagers. All players are responsible for ensuring each wager is placed correctly.

(f) Live race payouts are used to calculate players' point totals.

(g) Each player's points will be reflected in their cumulative points total at the end of each race.

(h) Following a race being declared "official," the actual parimutuel pool payout for the mythical across the board wager will be translated to points and added to a player's cumulative points total.

(i) Of the bettors, the player(s) with the highest points total after the last leg is/are the "winner(s)."

(j) The net parimutuel pool is distributed to the bettors scoring the highest scores of all players in the pool by a predetermined method in accordance with subsection (12) of this section.

(5) A selection on a coupled entry or field is considered a selection on the remaining part of the coupled entry or field as determined by the rules of the live corresponding race.

(6) If a selection in any race designates a betting interest that was scratched, excused, or determined by the stewards to be a nonstarter in the race, the selection will be on the actual post-time favorite, as evidenced by total amounts wagered in the win pool at the host association for the contest at the close of wagering on that race. In the event that the win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number.

(7) Points for dead heats will be determined by the payouts of the live corresponding race.

(8) The takeout and its distribution for the 123racing pick (n) wager shall be set and approved by the host regulatory commission, but shall include the distribution of the negotiated proprietary fee.

(9) All tickets shall be refunded if all races comprising the 123racing pick (n) wager are canceled or declared as no contest. The entire pool shall be refunded if less than four races are completed and if four or more races are completed the net pool shall be distributed pursuant to subsection (11) of this section.

(10) After wagering closes on the first race comprising the 123racing pick (n) wager, the pool shall be deemed closed and no entry ticket shall be sold, exchanged, or canceled. No person shall be determined to hold a winning 123racing pick (n) wager ticket until the last designated race has been declared official.

(11) In accordance with the following provisions, the association shall distribute the net pool to the holders of valid tickets that correctly selected the combination of first, second, and/or third place finishers that generated the highest point totals through the designated races/rounds comprising the 123racing pick (n) wager as follows:

(a) 123racing pick (n) with second and third minor pools with predetermined percentages: The major share of the net amount in the 123racing pick (n) parimutuel pool subject to distribution among winning ticket holders shall be distributed to the holder of the parimutuel ticket with the wager that has the highest points total after all races have been completed. The second minor share of the 123racing pick (n) pool shall be distributed to the holder of the parimutuel ticket with the wager that has the second highest point total after all races have been completed, and the third minor share shall be distributed to the holder of the parimutuel ticket with the wager that has the third highest point total after all races have been completed.

(b) If there are two parimutuel wagers that equal the highest point total after all races have been completed, the major and second minor shares of the net amount in the parimutuel pool subject to distribution shall be distributed to those ticket holders. The third minor share of the net amount in the parimutuel pool subject to distribution among winning ticket holders shall be distributed to the holders of parimutuel tickets with wagers which have the third highest point total after all races have been completed.

(c) If there are three or more parimutuel wagers that equal the highest points total after all races have been completed, one hundred percent of the net amount in the parimutuel pool subject to distribution shall be distributed to those ticket holders.

(d) If one parimutuel ticket wager scores the highest points total, and two or more parimutuel ticket wagers equal the second highest point total after all races have been completed, the major share of the net amount in the parimutuel pool subject to distribution shall be distributed to the highest scoring ticket holder, and the second and third minor shares of the net amount in the parimutuel pool subject to distribution among winning ticket holders shall be distributed to the holders of parimutuel tickets which have the second highest points totals after all races have been completed.

(e) If one parimutuel ticket wager scores the highest points total, one parimutuel ticket wager scores the second highest points total, and two or more parimutuel ticket wagers score the third highest points total after all races have been completed, then the major share of the net amount in the parimutuel pool subject to distribution shall be distributed to the highest scoring ticket holder, the second minor share of the net amount in the parimutuel pool subject to distribution among winning ticket holders shall be distributed to the second highest scoring ticket holder, and the third minor share of the net amount in the parimutuel pool subject to distribution among winning ticket holders shall be distributed to the holders of parimutuel tickets which have the third highest points total.

Examples: The wagers with the highest total accumulated points after all 123racing pick (n) wager races are completed will share in the net pool eligible for distribution among winning ticket holders as follows:

(f) With the written approval of the commission, the association may contribute to the net amount of the 123racing pick (n) wager parimutuel pool subject to distribution.

(12) Should circumstances occur which are not addressed by these rules, questions arising thereby shall be resolved in accordance with general parimutuel practice. Decisions regarding distribution of the 123racing pick (n) pool made by the stewards shall be final.

(13) In the event that no points are awarded to any tickets, the net pool for that day will carry over to the next race day as part of the total net pool.

A licensed class 1 racing association 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.

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

(3) The class 1 racing association approved to operate a handicapping contest will distribute at least ninety-five 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. 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) The officers and employees of the class 1 racing association operating a handicapping contest, and their immediate families are prohibited from participating in any handicapping contest unless approved under this subsection. Commissioners and employees of the commission are also prohibited from participating in any handicapping contest in Washington. Employees of the class 1 racing association may participate in a handicapping contest, provided it is for promotional purposes only and are not eligible for any prizes awarded. Participation must be approved by the executive secretary.

(7) The class 1 racing association will provide the commission a report on every handicapping contest including a record of all entry fees collected, the number of participants for each contest, the amount the class 1 racing association paid in prizes, and the name and address of each winning participant.

(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.