NCLGS LEGISLATORS SAY YES TO INNOVATIVE PARI-MUTUEL INTEGRITY SYSTEM, ADOPT RESOLUTION IN SUPPORT

Duck Key, Florida, January 23, 2007—After intensive discussion and debate, legislators at a National Council of Legislators from Gaming States (NCLGS) Winter Meeting voted unanimously on January 13 by resolution to support a groundbreaking Association of Racing Commissioners International (RCI) integrity system. The NCLGS Executive Committee vote to support the multi-jurisdictional independent pari-mutuel wagering monitoring system took place at the NCLGS Meeting in Duck Key, Florida, held on January 12 through 14, 2007.

Recognizing that electronic wagering on horse and greyhound racing is the only form of legalized electronic gambling currently in the U.S. that is not independently monitored, the resolution supports the efforts of state racing regulators to ensure that U.S. pari-mutuel wagering maintains a safe simulcast wagering system. Florida Senator Steven Geller (D-FL), President of NCLGS, said:

The resolution responds to a need for a more secure pari-mutuel wagering system that would ultimately benefit the general public, racing fans, and the industry as well. The RCI integrity system will bring pari-mutuel wagering on par with other legalized electronic gaming enterprises in the states—such as state lotteries, video lottery terminal programs and slot machines—which are all required by sound state public policy to be independently monitored.”

Ed Martin, RCI Commissioner, in presenting the recently developed integrity system, said:

Tremendous vulnerability exists in this arena and it took the Breeder’s Cup Pick Six fiasco to alert everyone to the fact that while much time and effort has been spent on medication and backstretch issues, little focus has been given to the wagering system. As the pari-mutuel simulcast process has become more and more complex and technology has advanced, different types of wagers are being offered and computer crimes are emerging—spurring pari-mutuel regulators to react.

Industry representatives at the NCLGS meeting remained silent on the resolution and the newly created integrity system, though it was noted at the NCLGS Committee on Pari-Mutuels on January 12 that industry concerns previously had been voiced regarding the need for an independent system and prospective costs that the industry might entail.

The resolution strongly encourages racing commissions in the states to promote voluntary participation of wagering system operators in the monitoring process, and take steps to require an orderly transition to such monitoring for wagering and auditing purposes within existing statutory authority.

The NCLGS resolution was first presented to the Committee on Pari-Mutuels at the NCLGS Summer Meeting in June 2006, and deferred by the Committee until the Winter Meeting in order for legislators to obtain additional information from local industry and regulators. The resolution was subsequently adopted by the Committee on Pari-Mutuels on January 12, 2007, and referred to the NCLGS Executive Committee for a vote.

NCLGS is neither pro- nor anti-gaming. NCLGS is a proactive participant in the development of public policy related to state authorized gaming. NCLGS exists to educate state legislators and other policymakers on issues dealing with gaming; seeks appropriate regulation of gaming; and works to preserve the traditional rights of the states to regulate and tax gaming within their borders.

For more information, please call the NCLGS National Office at (518) 687-0615 or access the NCLGS website at www.nclgs.org.

For More Information contact:
Susan Nolan
Nicholas Brozean
NCLGS National Office
(518) 687 0615

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