Government of Canada
Symbol of the Government of Canada


Vol. 144, No. 35 — August 28, 2010

Regulations Amending the Pari-Mutuel Betting Supervision Regulations

Statutory authority

Criminal Code

Sponsoring department

Department of Agriculture and Agri-Food

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issue: Pari-mutuel betting on horse racing is the oldest form of regulated and supervised gambling in Canada. And while the sport of horse racing has remained relatively unchanged over the years, the landscape in which the industry operates has undergone considerable transformation.

Today, Canadians have access to a wide range of provincially operated gambling options, including lotteries, casinos, slot machines and bingo. This broadening of the gaming industry has created more opportunities for Canadians to gamble and has helped develop more informed expectations regarding the manner by which pari-mutuel betting is regulated.

The expansion of all forms of legal gambling in Canada has outpaced the evolution of the framework relied upon to direct the conduct of pari-mutuel betting on horse racing. Certain regulatory requirements now seem to fall outside the strict federal mandate to protect the interests of the betting public, and they include market regulation initiatives more closely aligned with the responsibilities of other levels of government. Other regulations have become stale and impose the use of particular technologies that, in some cases, are no longer well-suited for their intended purpose. Still other regulations have fallen short of clearly articulating the responsibilities of race-course operators (associations) conducting certain pari-mutuel activities, and would benefit from a review and restatement of the requirements.

Finally, the Standing Joint Committee for the Scrutiny of Regulations (the SJCSR) has undertaken a review of the Pari-Mutuel Betting Supervision Regulations (the Regulations), and has made recommendations concerning administrative amendments of a number of sections.

These proposed amendments to the Regulations are intended to address all these issues, and to ensure the ongoing delivery of a modern, efficient and effective regulatory framework for ensuring the integrity of pari-mutuel betting systems.

Description: The Canadian Pari-Mutuel Agency (CPMA) is a Special Operating Agency that reports to the Minister of Agriculture and Agri-Food Canada. The CPMA is responsible for supervising licensed pari-mutuel betting systems to ensure they are operated in a manner consistent with the Regulations.

In 2006, the CPMA began consultations with industry stakeholders to address a number of issues regarding the current regulatory framework relied upon for supervising the conduct of pari-mutuel betting at Canadian race-courses. These proposed amendments to the Regulations are the product of these consultations and have been developed for the purpose of advancing three main goals:

  • to better focus on CPMA’s core mandate;
  • to allow operators the flexibility to introduce newer technologies and a wider range of pari-mutuel betting products; and
  • to ensure integrity through the promotion of a more transparent model.

Focussing on the core mandate

Past and existing regulations were established to deal with issues related to market regulation, which is not clearly aligned with the federal responsibility of protecting the betting public. Such regulations would be removed or else amended where appropriate so as to more clearly support the objective of ensuring the integrity of pari-mutuel betting systems.

Flexibility to introduce newer technologies and a wider range of products

Regulatory changes that would allow race-course operators to use a wider range of approaches for presenting betting information to the public would be introduced. These changes would address the required use of dated technologies such as infield boards and public-address systems, and would allow the use of more modern technologies such as video monitors. Other amendments include increasing the maximum percentage that racing associations can retain from each dollar bet and streamlining the process for approving new types of pari-mutuel bets, which would allow race-course operators to offer a wider range of pari-mutuel products to the betting public.

Process transparency

A number of amendments would introduce new responsibilities related to the provision of timely and relevant betting information, and ensure the public remains well-informed of all amounts retained from pari-mutuel betting pools. Other amendments would clarify the applicable rules when betting on horse races that are run outside of Canada. They would also introduce new requirements for racing associations to provide CPMA contact information to the betting public.

Cost-benefit statement: These amendments would not introduce a requirement for additional funding for the CPMA to continue supervising and regulating pari-mutuel betting in Canada. Similarly, they would not impose any significant costs to race-course operators in order for them to comply with the regulatory requirements. There are no direct costs imposed upon the betting public.

The proposed amendments would provide some benefits to both the CPMA and to race-course operators by eliminating redundant administrative requirements related to the processing of annual betting applications. This may result in some limited savings for the CPMA and race-courses alike, but more importantly, it would reduce the administrative burden of maintaining multiple copies of documents relied upon to support various approvals to conduct different types of pari-mutuel betting.

The remaining proposed amendments are housekeeping in nature and would provide greater legal certainty regarding the responsibilities of pari-mutuel operators.

Business and consumer impacts: The horse-racing industry would benefit from a more user-friendly, fair and flexible regulatory structure. Canadian associations would be able to offer a wider range of racing products, and the betting public would benefit from greater choices when betting on horse races.

Domestic and international coordination and cooperation: The proposed regulatory amendments have been developed through ongoing and regular consultation with the provincial horse racing officials (i.e. commissions) to ensure that any transitional considerations attached to these changes are identified and addressed in advance of the amendments coming into force. There are no implications with respect to international coordination and cooperation.

Issue

The Canadian horse racing industry has undergone considerable change over the last number of years, largely in response to pressures stemming from the globalization of the industry, rapid advancements in communications technologies, and greater competition that accompanied the expansion of other forms of gambling.

As a result, industry stakeholders have requested that the federal government undertake a comprehensive review of the regulatory model that directs the lawful conduct of pari-mutuel betting. Specifically, racing associations have sought regulatory changes that would allow them to compete more effectively in the broader gaming market place, while at all times respecting the Government of Canada’s legislated responsibility to protect the interests of Canadians when they are betting on horse racing.

Parallel to the regulatory framework review being undertaken by the CPMA, the Standing Joint Committee for the Scrutiny of Regulations (SJCSR — a parliamentary committee established under the Rules of the Senate and the Standing Orders of the House of Commons) conducted a review of the Regulations, and identified a number of administrative inconsistencies in the regulations. This includes the power of the CPMA to amend the terms and conditions of a betting permit, the requirement for employees to pay for shortages in their money boxes, and general inconsistencies between the English and French versions of the Regulations.

Objective

The objective of these amendments, consistent with the Cabinet Directive on Streamlining Regulation, is to ensure a regulatory model that governs the conduct of pari-mutuel betting on horse racing in a modern, effective and efficient manner, thereby protecting the interests of the Canadian betting public.

Description

Under the authority of the Criminal Code, the proposed amendments to the Regulations would

1. Remove regulations that no longer support the federal objective of ensuring the integrity of pari-mutuel betting systems, including

  • requirements to provide food, beverages and washroom services at all off-track betting locations (i.e. betting theatres);
  • the responsibility for tellers to reimburse associations for shortages incurred when selling and cashing pari-mutuel tickets; and
  • the federal government’s responsibility to assign home market areas, which are geographic regions within which racing associations may conduct theatre and telephone account betting.

2. Provide greater process flexibility to pari-mutuel operators by

  • broadening the range of permissible systems that could be used by associations for presenting timely and relevant betting information to the public;
  • creating a more expedient means by which associations would receive approval to operate new types of pari-mutuel bets; and
  • increasing the maximum percentage that associations may retain from each amount bet into a pari-mutuel pool.

3. Ensure integrity through promotion of a more transparent model by

  • resolving inconsistencies regarding the application of these Regulations and the rules of foreign jurisdictions that may be applicable when associations offer betting on horse racing conducted outside of Canada;
  • improving the visibility and accessibility of the CPMA; and
  • introducing new requirements for associations to provide information regarding the duration for which winning tickets remain valid and the amounts outstanding for unclaimed winning tickets.

There are also a number of housekeeping provisions that would simplify the administration of the Regulations, including the removal of those provisions that establish different requirements for pari-mutuel systems, based on whether they are “computerized,” “electro-mechanical” or “manual” in their design. The amendments would ensure that every pari-mutuel betting system would be required to meet the same criteria in order to be approved.

There are also a number of changes proposed in response to recommendations made by the SJCSR. This includes

— clarifying the circumstances under which the Executive Director of the CPMA would amend the terms and conditions of a betting permit, or otherwise suspend or cancel a betting approval;

— removing a provision requiring an employee to reimburse the racing association where there is a shortage in the moneybox of the employee; and

— resolution of inconsistencies between the French and English versions of the Regulations.

Regulatory and non-regulatory options considered

These Regulations describe the requirements for the lawful operation of a pari-mutuel system of betting on horse racing. Section 204 of the Criminal Code designates the Minister of the Department of Agriculture and Agri-Food as the individual responsible for making regulations governing the conduct of lawful pari-mutuel betting in Canada on horse-racing. Only by amending these Regulations could the requirements describing the lawful conduct of a pari-mutuel betting on horse racing be altered. The CPMA has also reviewed and revised certain administrative policies and procedures to support the reform of this regulatory framework, and has developed new administrative procedures for reviewing applications to conduct various types of pari-mutuel betting.

Benefits and costs

The proposed amendments would affect the following sectors.

Public

Betting patrons would have the opportunity to bet on more racing events than have currently available, and would have greater certainty regarding the specific rules applicable when betting on horse racing conducted outside of Canada. It is also possible that the relaxing of certain requirements associated with operating a betting theatre would allow associations to establish facilities at a wider range of locations. These changes would not impose any direct increase in costs to the public. They would, however, increase the maximum percentage that may be retained by a racing association from each dollar bet. This is not expected to affect the majority of pari-mutuel pools as associations currently tend to retain less than the maximum allowable for most pari-mutuel pools. Further, this increase in allowable take-out rate is necessary in order for Canadians to participate in some popular international betting products.

Industry

Racing associations would benefit from the removal of those regulations that unnecessarily restrict their activity and provide no greater certainty concerning the integrity of the pari-mutuel system. This would include the removal of regulations that disqualify the use of television monitors for presenting certain race and betting information to the public. It is not expected that any of these changes would significantly impact either the costs associated with conducting pari-mutuel betting, or the revenue derived from these operations.

Provincial regulatory bodies

These amendments would help achieve complementary rather than competing or overlapping regulatory oversight of the horse-racing industry. Removal of some federal regulations such as those requiring the provision of food and beverage services and washroom facilities at betting theatres, would allow provincial authorities to consider approving the installation of betting theatres at a wider range of outlets, including stand-alone facilities and lottery kiosks. Removal of the federal authority to assign home market areas for the conduct of telephone account and theatre betting would clarify provincial authority for addressing these market regulation issues, and would not represent a significant change from the current responsibility for provincial commissions to recommend these assignments to the CPMA.

Federal government

The CPMA would rely upon existing programs and procedures for licensing and supervising the conduct of pari-mutuel betting activity, and would not expect any significant costs, savings or environmental impacts associated with the implementation of these proposed regulatory amendments.

Consultation

In order to ensure a comprehensive and balanced package of reforms, the CPMA encouraged the active participation of all interested parties throughout the regulatory review process. This included meetings held with provincial horse racing officials, Canadian race-course operators, CPMA regional staff, and representatives of horsemen’s groups, which includes horse owners, trainers and breeders. The CPMA also actively solicited the views of the Canadian betting public through various publications.

Consultation on the review was initiated through a series of regionally scheduled information sessions held across Canada during the spring of 2006. At this time, a discussion document, describing the scope and scale of the review was distributed to industry stakeholders. The document outlined the Government’s commitment to review all aspects of how pari-mutuel betting is licensed and supervised, and included a list of current concerns and considerations pre-identified by the CPMA. Stakeholders were encouraged to share their views on these and all other related issues.

Announcements concerning the review were also published in various horse racing-related media to introduce the review to a broader audience. The CPMA also met at this time with their regional staff through a series of teleconferences, and with groups of identified horse-racing enthusiasts. August 15, 2006, was eventually settled upon for submissions from interested parties. The CPMA received written responses from a wide range of stakeholders.

From November 2006 to April 2007, the CPMA held bilateral meetings with Racetracks of Canada, an affiliation of those Canadian race-course operators licensed by the CPMA, and with officials from provincial horse racing commissions, seeking clarity on issues raised in submissions made earlier that summer.

CPMA also conducted interviews with select U.S. authorities with similar regulatory responsibilities, to inform themselves on alternative regulatory approaches to key issues raised during consultations with Canadian industry representatives. Specifically, meetings were held with representatives of the New York State Racing and Wagering Board, the New Jersey Racing Commission, the Pennsylvania State Horse Racing Commission and the Division of Parimutuel Wagering for the state of Florida.

In September 2007, further bilateral meetings were held with provincial horse racing officials, Racetracks of Canada, and key horsemen’s groups in order to address considerations relating to recommended changes that would directly affect these specific organizations.

In October 2007, a comprehensive package describing the intended regulatory changes was introduced to all industry stakeholders through regional meetings held in Toronto, Montréal, Moncton and Calgary. Teleconferences with CPMA regional staff were likewise held in conjunction with each regional meeting. A “Leave Behind” document describing the proposed changes and the policy objectives supporting them was distributed, and a submission due date of November 15, 2007, identified. Again, the CPMA received submissions from the full range of industry stakeholders.

A number of the proposed reforms required co-ordination with provincial horse racing officials, and so a series of bilateral meetings and teleconferences were held with provincial regulators from December 2007 to April 2008. The main objective of these meetings was to identify and address any transitional considerations attached to the recommended regulatory changes.

In May 2008, the CPMA announced on their Web site that the Minister of Agriculture and Agri-Food Canada had instructed the CPMA to continue with the development of the regulatory amendments, thereby supporting the overwhelming majority of the recommended changes. Meetings and teleconferences with provincial horse racing officials and Racetracks of Canada Inc. representatives ensured an ongoing avenue for addressing any outstanding transitional considerations attached to the proposed changes.

Throughout the consultative process, the CPMA consistently sought to ensure the active participation of all interested parties through a combination of targeted engagements with known industry stakeholders, as well as through more broad-based efforts directed at less easily identified groups, including the Canadian betting public. The CPMA Web site was regularly updated at each juncture in the regulatory review.

Implementation, enforcement and service standards

The CPMA has existing mechanisms, including on-site inspections by Agency officers and the continued use of an independent, automated auditing system, to ensure the regulatory compliance of pari-mutuel betting conducted by Canadian racing associations. The CPMA would rely upon these same mechanisms for ongoing assurance that licensed race-course operators continue to operate consistently with these new requirements. While these amendments can be expected to provide racing associations greater latitude for determining how and where pari-mutuel betting may be made available to Canadians, they have not been developed for the purpose of enhancing the profitability of the Canadian horse racing industry. Rather, they are intended to remove those requirements that unnecessarily inhibit race-course operators’ ability to compete in the broader gaming market, without compromising the integrity of pari-mutuel betting systems and the safety of Canadians that enjoy betting on the outcome of horse races.

Unless otherwise noted, the amendments would take effect on the first day upon the day they are registered.

Contact

Randall Sawchuk
Director
Policy and Planning
Canadian Pari-Mutuel Agency
1130 Morrison Drive, Suite 100
Ottawa, Ontario
K2H 9N6
Telephone: 613-949-0722
Fax: 613-949-0750
Email: rande.sawchuk@agr.gc.ca

PROPOSED REGULATORY TEXT

Notice is hereby given that the Minister of Agriculture and Agri-Food, pursuant to subsections 204(8) (see footnote a) and (9) (see footnote b) of the Criminal Code (see footnote c), proposes to make the annexed Regulations Amending the Pari-Mutuel Betting Supervision Regulations.

Interested persons may make representations concerning the proposed Regulations within 45 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Randall Sawchuk, Director, Policy and Planning, Canadian Pari-Mutuel Agency, Agriculture and Agri-Food Canada, P.O. Box 5904, LCD Merivale, Ottawa, Ontario K2C 3X7 (tel.: 613-949-0722; fax: 613-949-0750; e-mail: rande.sawchuk@agr.gc.ca).

Ottawa, August 3, 2010

GERRY RITZ
Minister of Agriculture
and Agri-Food

REGULATIONS AMENDING THE PARI-MUTUEL BETTING SUPERVISION REGULATIONS

AMENDMENTS

1. (1) The definitions “cashier”, “drug control surveillance program”, “exchange system”, “feature pool”, “home market area”, “infield board”, “official veterinarian”, “seller”, and “telephone” in section 2 of the Pari-Mutuel Betting Supervision Regulations (see footnote 1) are repealed.

(2) The definition “horseman” in section 2 of the English version of the Regulations is repealed.

(3) The definitions “betting theatre”, “daily double”, “EIPH list”, “foreign race inter-track betting”, “inter-track betting”, “on-track account betting”, “pari-mutuel system”, and “theatre licence” in section 2 of the Regulations are replaced by the following:

“betting theatre” means a structure that is used for theatre betting at a location specified in the theatre licence. (salle de paris)

“daily double” means a type of bet on two races to select the winning horse in the official result in each race. (pari double)

“EIPH list” means a list, established and maintained by the Commission under subsection 170.1(1), of horses that display symptoms of exercise-induced pulmonary hemorrhage. (liste IHPE)

“foreign race inter-track betting” means pari-mutuel betting at one or more satellite tracks on a foreign race, where the money bet on each pool at each satellite track is combined with the money bet on the corresponding pool that is operated by a foreign pool host to form one pool from which the pay-out price is calculated and distributed. (pari inter-hippodromes sur course à l’étranger)

“inter-track betting” means pari-mutuel betting at one or more satellite tracks or in one or more places in one or more foreign countries, with the money bet on each pool at each satellite track or place being combined with the money bet on the corresponding pool that is operated by the pool host to form one pool from which the pay-out price is calculated and distributed. (pari inter-hippodromes)

“on-track account betting” means pari-mutuel betting conducted at a race-course or in a betting theatre of an association otherwise than by buying a ticket. (pari sur hippodrome)

“pari-mutuel system” means the equipment and all software, including the totalizator, the telephone account betting system, the on-track account betting system and the inter-track betting equipment, that are used to record bets and to transmit betting data. (système de pari mutuel)

“theatre licence” means a licence that is issued under subsection 85(3) by the Executive Director to an association to authorize it to conduct theatre betting. (permis de pari en salle)

(4) The definition “directeur exécutif” in section 2 of the French version of the Regulations is replaced by the following:

« directeur exécutif » Le fonctionnaire désigné qui est le directeur exécutif de l’Agence canadienne du pari mutuel. (Executive Director)

(5) The definition “host track” in section 2 of the English version of the Regulations is replaced by the following:

“host track” means a race-course at which a race is held, with any inter-track or separate pool betting on that race being conducted at a satellite track. (hippodrome hôte)

(6) The definition “professionnel du cheval” in section 2 of the French version of the Regulations is replaced by the following:

« professionnel du cheval » Toute personne ou tout groupement ou organisme qui a un intérêt dans le partage des bourses provenant de la retenue de l’association et l’établissement du calendrier des courses de l’association. La présente définition ne comprend pas le fonctionnaire désigné et les employés de l’association. (horseperson)

(7) The portion of the definition “consolation double” before paragraph (a) in section 2 of the Regulations is replaced by the following:

“consolation double” means the pay-out price of a daily double ticket that combines a horse, entry or mutuel field that is declared the winner in the official result of the first race of the daily double with a horse, entry or mutuel field in the second race of the daily double where, after the first race is closed to betting,

(8) Paragraph (e) of the definition “scratched” in section 2 of the Regulations is replaced by the following:

(e) a horse in relation to which an officer has ordered that betting be stopped under subsection 52(4); (retiré)

(9) Section 2 of the Regulations is amended by adding the following in alphabetical order:

“charter” means the person designated by an association to record and report the information referred to in subparagraphs 27(a) (ix), (xi), (xii), (xiv) and (xx). (registraire)

“equine drug control program” means all of the activities relating to equine drug control undertaken by the test inspectors, official chemists and veterinarians designated by the appropriate Commissions at official laboratories and other facilities dedicated to that control. (programme de contrôle des drogues équines)

“pool host” means the organization that is responsible for combining the money for each type of bet from any location to form one pool from which the pay-out prices are calculated and distributed. (hôte de la poule)

“telephone” means any telecommunication device that can be used to record and verify a bet made by an account holder. (téléphone)

(10) Section 2 of the English version of the Regulations is amended by adding the following in alphabetical order:

“horseperson” means any person, group or organization that has an interest in the sharing of purses drawn from an association’s percentage and the scheduling of races by the association but does not include an officer or employee of an association. (professionnel du cheval)

2. Paragraphs 3(1)(a) and (b) of the Regulations are replaced by the following:

(a) the association has been issued a permit;

(b) the pari-mutuel system and the facilities for its supervision and operation have been approved in accordance with section 15; and

(c) the association, if it conducts 10 or more days of racing per year, has provided

(i) a racing licence issued by the appropriate Commission,

(ii) the race dates approved by the appropriate Commission, and

(iii) evidence of an executed agreement for the period of the proposed pari-mutuel betting, between the association and the horsepersons who have been approved by the appropriate Commission, addressing the sharing of revenues between the association and those horsepersons.

3. Sections 4 and 5 of the Regulations are replaced by the following:

4. An association shall submit an application for a permit to the Executive Director at least 30 days before the first proposed day of betting.

5. An association shall, in making an application for a permit,

(a) provide evidence that the association is a corporation in good standing under the laws of the jurisdiction in which it was incorporated;

(b) name the owners and directors of the association and any person who holds or exercises control over 10 per cent or more of any voting shares issued by the association;

(c) provide evidence that the association

(i) owns the race-course on which the races are to be run, or

(ii) holds a lease on the race-course on which the races are to be run, for the duration of the permit;

(d) provide the association’s percentage;

(e) describe the types of bets that the association proposes to operate as the pool host and the method of calculation that the association proposes to use for each type of bet, in accordance with Part IV and section 142.1;

(f) provide the dates and times at which the association proposes to operate as the pool host for pari-mutuel betting on horse-racing conducted at its race-course;

(g) describe the methods by which the association will present the information required under sections 25 to 27 to the public;

(h) if an association permits the cancellation of bets, provide a statement that describes the association’s policy on how a bet may be cancelled under section 57;

(i) describe the manner in which the association will add to pari-mutuel pools, the amounts generated from overages and underpayments in accordance with sections 65 and 113;

(j) if the association has contracted the operation of the pari-mutuel system to another person,

(i) provide a copy of the contract, and

(ii) name the person who manages and operates the pari-mutuel system at the association’s race-course; and

(k) provide any other information respecting the ownership and financial circumstances of the association that may be required by the Executive Director to determine whether the association is able to conduct pari-mutuel betting in accordance with the Act and these Regulations.

4. (1) Subsection 6(1) of the Regulations is replaced by the following:

6. (1) The Executive Director shall issue a permit to an association if

(a) the information provided in accordance with section 5 demonstrates that the association is able to conduct pari-mutuel betting in accordance with the Act and these Regulations; and

(b) the methods described in accordance with paragraph 5(g) demonstrate that the association is capable of presenting the information referred to in that paragraph in a manner that is easily accessible to the public.

(2) Paragraph 6(2)(a) of the Regulations is repealed.

5. Section 7 of the Regulations is replaced by the following:

7. (1) An association that has applied for a permit under section 4 may also apply for a theatre licence under section 85 or an authorization under sections 76 or 84.1 or subsections 90(1), 90(1.1) or 94(1), as the case may be.

(2) An association may apply to the Executive Director to amend its permit or theatre licence or its authorization obtained under sections 76, 84.1, 90 or 95, as the case may be.

(3) An association shall immediately inform the Executive Director in writing of any changes in circumstances regarding the information required in its application under section 5 or subsections 76(1), 84.1(1), 85(1), 90(1), 90(1.1) or 94(1), or any other change in circumstances relevant to the permit, theatre licence or authorization referred to in any of those provisions, including the commencement of proceedings under the Companies’ Creditors Arrangement Act or the Bankruptcy and Insolvency Act, the acquisition of a court order directed against the association or any change that affects whether the association will be able to continue to conduct horse races on its race-course in the ordinary course of its business.

7.1. If an association contravenes any provision of the Act or these Regulations or fails to comply with any term or condition of its permit or theatre licence or its authorization obtained under sections 76, 84.1, 90 or 95, as the case may be, or if there has been a change in circumstances under subsection 7(3), the Executive Director may, by written notice to an association,

(a) issue a direction informing the association what actions it must take within a time specified by the Executive Director for the association to comply;

(b) in the case where a permit has been issued and an application has been made for a theatre licence or authorization, refuse to issue the licence or authorization;

(c) amend the terms and conditions of the permit, theatre licence or authorization to the extent necessary to remedy any contravention or non-compliance or address the change in circumstances;

(d) if the remedies described in paragraphs (a) to (c) fail to address the situation, suspend the permit, theatre licence or authorization for a specified period of time during which the association must remedy the contravention or non-compliance or address the change of circumstances to the satisfaction of the Executive Director; or

(e) cancel the permit, theatre licence or authorization if it is apparent that the association will be unable to remedy the contravention or non-compliance or address the change of circumstances within a reasonable period of time or if the change in circumstances results in the permit, theatre licence or authorization becoming inapplicable.

6. Section 9 of the Regulations is repealed.

7. Section 12 of the Regulations is replaced by the following:

12. (1) An association shall permit an officer to test the pari-mutuel system and to examine the facilities for its supervision and operation to ensure that they meet the requirements of this Part and are in good working condition.

(2) If an association proposes a change in its pari-mutuel system, including the persons who operate it, the association shall notify an officer and permit the officer to conduct any applicable test before implementing the change.

8. (1) The portion of subsection 13(1) of the Regulations before paragraph (a) is replaced by the following:

13. (1) For the proper supervision and operation of a pari-mutuel system, an association shall, at its race-course,

(2) Paragraphs 13(1)(b) and (c) of the Regulations are replaced by the following:

(b) provide a suitable location for providing the public with information and for receiving complaints from the public;

(c) ensure that each betting terminal is identifiable by means of a distinct name or number that is visible to any person who makes or cashes a bet;

(3) Subparagraph 13(1)(d)(i) of the Regulations is replaced by the following:

(i) connections that are capable of supporting telephone and Internet services,

(4) Paragraph 13(1)(e) of the Regulations is replaced by the following:

(e) provide a device at the race-course located in the immediate vicinity of the totalizator and at any location authorized by an officer to close betting on a race.

9. Section 14 of the Regulations is replaced by the following:

14. An association shall maintain a daily written record of the pari-mutuel system’s operations and maintenance and shall retain those records for a period of one year from the day on which they were created.

10. The heading before section 15 of the Regulations is replaced by the following:

REQUIREMENTS FOR PARI-MUTUEL SYSTEMS

11. (1) The portion of section 15 of the Regulations before paragraph (a) is replaced by the following:

15. A pari-mutuel system shall not be approved unless

(2) The portion of paragraph 15(d) of the Regulations before subparagraph (i) is replaced by the following:

(d) the association provides an officer, on request, with

(3) Subparagraph 15(d)(viii) of the Regulations is replaced by the following:

(viii) a catalogue of all the pari-mutuel system computer records that are used at the association’s race-course, and

12. (1) The portion of section 16 of the Regulations before paragraph (a) is replaced by the following:

16. An association shall ensure that every ticket sets out

(2) Paragraph 16(e) of the Regulations is replaced by the following:

(e) the location, number and date of the race;

13. The portion of section 17 of the Regulations before paragraph (a) is replaced by the following:

17. Whenever a device referred to in paragraph 13(1)(e) to close betting in a pari-mutuel system has been activated, the association shall record on its pari-mutuel system log file

14. The heading before section 18 and sections 18 and 19 of the Regulations are repealed.

15. The heading before section 20 of the Regulations is replaced by the following:

TESTING AND BREAKDOWN OF PARI-MUTUEL SYSTEMS

16. Section 20 of the Regulations is amended by adding “and” at the end of paragraph (a), by striking out “and” at the end of paragraph (b) and by repealing paragraph (c).

17. Sections 21 to 24 of the Regulations are replaced by the following:

21. An association shall without delay notify an officer in writing if any error or faulty operation of the pari-mutuel system or its related equipment is discovered.

18. The heading before section 25 and sections 25 to 27 of the Regulations are replaced by the following:

RACE INFORMATION

General

25. (1) An association shall provide the public, free of charge and in an easily accessible manner, with the following information:

(a) the name of the association conducting the pari-mutuel betting;

(b) a statement that the pari-mutuel betting is supervised by the Minister and a statement that all pools are calculated and distributed in accordance with these Regulations;

(c) Canadian Pari-Mutuel Agency contact information;

(d) the terms and conditions of a bet, including the information that a winning ticket is valid indefinitely;

(e) a description of how bets are cashed and cancelled, including any limits to the conditions, in accordance with subsection 57(6) and section 117;

(f) a statement that bets may be refunded under certain circumstances and a description of how the public will be informed of any refunds;

(g) with respect to odds,

(i) a description of the ratios that are used by an association to display odds,

(ii) the statement that approximate odds represent only the probable pay-out price of the win pool at the time they are posted and have no bearing on the pay-out price for any other pool,

(iii) a statement that if approximate odds for any horse are posted as “1:9”, the pay-out price based on a $2 bet on the win pool may be as low as $2.10, and

(iv) a statement that if approximate odds for any horse are posted as “99:1”, the pay-out price based on a $2 bet on the win pool may be greater than $200; and

(h) for associations that conduct 10 or more days of pari-mutuel betting, the value of outstanding tickets for each three-month period ending March 31, June 30, September 30 and December 31, as calculated three months after the end of the period, or for an association that does not conduct inter-track betting or separate pool betting, as the case may be, for each annual period ending December 31, as calculated three months after the end of the period.

(2) An association shall, on request, provide an officer in writing with any information set out in sections 25 to 27.

Information on Each Race

26. (1) An association shall, in respect of each race, provide the public in an easily accessible manner, by purchase or otherwise, with the following information:

(a) the date, number and scheduled post time of the race;

(b) the distance of the race;

(c) the number worn by each horse in the race and, if that number is different from the post position of a horse, the post position of the horse;

(d) the name, sex and age of each horse in the race;

(e) the name of the trainer, owner and jockey or driver of each horse in the race;

(f) the weight assigned to each horse in a running horse race;

(g) the eligibility conditions that have to be met by each horse in the race;

(h) the amount of purse money or prizes offered for the race;

(i) in the case of a race-course that has more than one type of track, the type of track on which the race will be run;

(j) the types of bets offered on the race and the rules by which the pay-out price is calculated and distributed;

(k) with respect to odds,

(i) the approximate odds and final odds on each horse, entry or mutuel field in the race,

(ii) during the five minutes before the close of betting, the approximate odds referred to in subparagraph (i), at intervals not exceeding two minutes,

(iii) if the odds are 1 to 10 or less and the association displays the odds in terms of a ratio but is incapable of displaying odds of 1 to 10 or less, those odds displayed as “1:9”, the lower odds not needing to be otherwise displayed,

(iv) if the odds are higher than 99 to 1, the higher odds, and if the association displays them in terms of

(A) a ratio, those odds displayed as “99:1”, the higher odds not needing to be otherwise displayed, or

(B) a pay-out price, those odds displayed as “$99.90”, the higher odds not needing to be otherwise displayed;

(l) the legal percentages and breakage rules applicable to each pool;

(m) the horses that are on the EIPH list;

(n) the official result and the winning combination of horses and pay-out prices for every pool, including refunds;

(o) the running time of the race;

(p) any entries and mutuel fields, late scratches, unfair starts, declarations of horses as non-contestants and dead heats; and

(q) the numbers of any scratched horses and any refunds made in accordance with these Regulations.

(2) An association that hosts a pool shall, on request, make available the following information:

(a) the amount of money bet on each horse and on each winning combination of horses;

(b) the total amount of money bet on each pool; and

(c) any additional amounts added to the pool, including any overages and underpayments in accordance with sections 65 and 113.

Information on Horse’s Past Performance

27. An association that conducts 10 or more days of pari-mutuel betting during a year shall in respect of every race held at its race-course provide the public at that race-course in an easily accessible manner, by purchase or otherwise, with the following information no later than one hour before post time of the first race:

(a) for each horse in a race, the chart lines of the last five races of that horse, listing the most recent race first and including, for each race,

(i) the date,

(ii) the name of the race-course,

(iii) the size and type of track,

(iv) the track condition,

(v) the type of race,

(vi) the weight assigned to the horse, if applicable,

(vii) the information that the horse competed as a free-legged pacer or a trotter wearing hopples, if applicable,

(viii) the distance,

(ix) the time of the leading horse as reported by the charter at each measured fraction of the track, including the time of the winning horse,

(x) the post position of the horse,

(xi) the position of the horse, as reported by the charter, at each measured fraction of the track,

(xii) the position of the horse, as reported by the charter, in the home stretch and the number of lengths, if any, behind the leading horse,

(xiii) the position of the horse in the official result,

(xiv) the number of lengths behind the winning horse at the finish of the race as reported by the charter, if applicable,

(xv) the time for the horse to complete the race,

(xvi) the final odds on the horse, expressed in dollars,

(xvii) the name of the jockey or the driver of the horse and, if the surname and initials of two or more of those persons are identical, their full given names,

(xviii) the names of the horses that came in first, second and third in the official result,

(xix) the reason that the horse was scratched, if applicable,

(xx) each instance in which the charter reported that the horse broke gait, was parked-out, caused a recall or was suffering from exercise-induced pulmonary hemorrhage, and

(xxi) the information that the horse was on the EIPH list, if applicable;

(b) for each horse in a race, a summary for the current year and the preceding year of the horse’s

(i) starts in purse races, including the number of times the horse finished first, second and third in the official result, and

(ii) amount of earnings from purse races;

(c) for each horse in a race, the type of licence issued by the appropriate Commission to the jockey or driver of the horse;

(d) an explanatory note regarding the information referred to in paragraphs (a) to (c);

(e) if chart lines are required under paragraph (a) and a horse has not raced five times,

(i) the chart lines of as many past races as the horse has raced, and

(ii) the horse’s running time in its last official work-out or qualifying race, as the case may be; and

(f) if chart lines are required under paragraph (a) and the horse has raced in a foreign jurisdiction, the chart lines presented in a manner that is in accordance with the applicable rules of the jurisdiction in which the race was held.

19. Sections 28 to 42 of the Regulations are repealed.

20. Section 43 of the Regulations is replaced by the following:

43. An association shall provide, at every race-course, a telephone or a similar device for an officer to communicate with

(a) the judges’ stand;

(b) the pari-mutuel department; and

(c) if applicable, the facilities of the photo finish surveillance program, the video patrol surveillance program and the equine drug control program.

21. Subsections 47(1) and (2) of the Regulations are replaced by the following:

47. (1) If an association has a photo finish surveillance program, the association shall display a photo finish picture, in a manner readily visible to the public and immediately after the judges have decided the official result, whenever the distance between horses involved in a pari-mutuel pay-out is less than a neck at the finish line.

(2) An association that has a photo finish surveillance program shall ensure that each horse is equipped with a number on its saddle pad that corresponds to the number of the horse in the race information and that will be clearly identifiable in a photo finish picture.

22. Section 49 of the Regulations and the heading before it are repealed.

23. (1) Subsection 52(3) of the Regulations is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) removed from the pari-mutuel system for any period of time during which the betting has been opened for that race.

(2) Subsection 52(4) of the Regulations is replaced by the following:

(4) No association shall conduct pari-mutuel betting on a race or on a horse, entry or mutuel field in a race if an officer has ordered that betting be stopped.

24. Subsection 53(1) of the Regulations is replaced by the following:

53. (1) Except as provided in sections 76 to 98, no association shall accept bets or instructions to bet on a race from any person by telephone or by any other means of communication that originates from outside the race-course at which the race is taking place.

25. (1) Subsection 54(1) of the Regulations is replaced by the following:

54. (1) Subject to subsections (3), 81(2) and 84.6(2), a bet is made when a ticket is issued.

(2) Section 54 of the Regulations is amended by adding the following after subsection (2):

(3) A bet made at a self-service terminal is made when the pari-mutuel system creates an electronic record of the bet.

26. Subsection 55(1) of the Regulations is replaced by the following:

55. (1) If betting has begun on a race and a type of bet cannot be issued because of a defective totalizator, an association shall close betting on that type of bet and shall not resume offering that type of bet unless, prior to the race, the defect in the totalizator is rectified.

27. Section 59 of the Regulations is repealed.

28. Sections 61 and 62 of the Regulations are replaced by the following:

62. An association shall maintain a current list of the names of all personnel with access to the pari-mutuel department and shall provide the list to an officer on request.

29. (1) The portion of subsection 63(1) of the Regulations before paragraph (a) is replaced by the following:

63. (1) Subject to subsection (2), no person on the list referred to in section 62 shall, while having access to the pari-mutuel department,

(2) Paragraph 63(1)(b) of the Regulations is replaced by the following:

(b) sell a ticket to or cash a ticket from a person who is not on the public side of the betting window.

(3) Section 63 of the Regulations is amended by adding the following after subsection (2):

(3) No association shall open an account for a person who works in the association’s pari-mutuel department.

30. (1) Subsection 64(1) of the Regulations is replaced by the following:

64. (1) An association shall determine shortages and overages by comparing the actual amount of money turned in by each teller or terminal, as the case may be, with receipts in respect of cash draws and returns and records of the value of all bets made, cancelled, cashed and refunded and vouchers sold and cashed.

(2) Subsection 64(3) of the Regulations is repealed.

31. (1) Subsection 65(1) of the Regulations is replaced by the following:

65. (1) At the end of each racing day, an association shall add together any overages occurring in any races of that racing day and the resulting sum shall then be added to a future pool, in the manner described in the permit.

(2) Section 65 of the Regulations is amended by adding the following after subsection (2):

(3) An association shall add all money resulting from an overage to a pari-mutuel pool, not later than one year after the day on which the overage was incurred.

32. Sections 66 and 67 of the Regulations are replaced by the following:

66. Before the start of each racing card or within 24 hours after the completion of any race-meeting, whichever occurs first, an association shall prepare and provide an officer with a report that shows

(a) for each teller or terminal, the value of bets made, cash draws and returns and records of the value of all bets made, cancelled, cashed and refunded and vouchers sold and cashed;

(b) each teller’s name or identification number and the number of each terminal; and

(c) the amount of any shortages or overages as determined under subsection 64(1).

33. Section 68 of the Regulations is replaced by the following:

68. Where the applicable rules of racing provide for the combining of two or more horses as an entry, an association shall consider any entry created under those rules to be an entry for the purposes of pari-mutuel betting.

34. Section 70 of the Regulations is replaced by the following:

70. No association shall host a type of bet that combines horses from the same entry or mutuel field.

35. Section 71 of the Regulations and the heading before it are repealed.

36. Subsection 73(2) of the Regulations is replaced by the following:

(2) If an association does not record betting on a race directly into the appropriate pool, the association shall ensure that betting closes at such a time before post time that is required to record all bets and calculate and display the final odds.

37. (1) Subsection 76(1) of the Regulations is replaced by the following:

76. (1) An association that proposes to conduct telephone account betting shall apply in writing to the Executive Director.

(2) Paragraph 76(3)(c) of the Regulations is replaced by the following:

(c) the association has been authorized in writing by the Executive Director to conduct telephone account betting.

38. (1) Subsection 77(2) of the Regulations before paragraph (d) is replaced by the following:

(2) An association that is authorized under paragraph 76(3)(c) may open a telephone betting account for any person who resides

(a) in the province in which the association operates a race-course;

(b) in another province, if the association has been issued an authorization by the appropriate Commission;

(c) in any of the Canadian Territories; or

(2) Section 77 of the Regulations is amended by adding the following after subsection (2):

(2.1) If a Commission has established intra-provincial boundaries for the purposes of limiting telephone account betting, an association wishing to conduct telephone account betting within those boundaries shall

(a) obtain an authorization from the appropriate Commission for that purpose; and

(b) provide the Executive Director with evidence of the Commission’s authorization.

(3) Subsections 77(3) and (4) of the Regulations are repealed.

39. Paragraph 79(2)(a) of the Regulations is replaced by the following:

(a) the account holder provides the telephone account betting system with the correct account number and identification code; and

40. (1) Subsection 80(4) of the Regulations is replaced by the following:

(4) If an account holder, or the account holder’s legal representative, requests a withdrawal from the holder’s account, the association shall give effect to the request within 48 hours.

(2) Paragraph 80(7)(b) of the Regulations is replaced by the following:

(b) identify the interest separately on the statement referred to in paragraph (5)(b).

41. (1) Subsection 81(1) of the Regulations is replaced by the following:

81. (1) On the request of the account holder, a telephone account betting system shall provide the account holder with the balance in the account.

(2) Paragraphs 81(2)(b) and (c) of the Regulations are replaced by the following:

(b) been recorded in its entirety; and

(c) when requested by the account holder, been verified to that person by the telephone account betting system.

(3) Subsection 81(5) of the Regulations is repealed.

42. Section 84 of the Regulations is replaced by the following:

84. An officer may audit an account at any time.

43. (1) Subsection 84.1(1) of the Regulations is replaced by the following:

84.1 (1) An association that proposes to conduct on-track account betting shall apply in writing to the Executive Director.

(2) Subsection 84.1(2) of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b):

(c) the association has been authorized in writing by the Executive Director to conduct on-track account betting.

44. Section 84.2 of the Regulations is repealed.

45. Subsection 84.4(2) of the Regulations is replaced by the following:

(2) No association shall accept an on-track account bet unless there is sufficient money in the account to cover the bet.

46. (1) Subsection 84.6(1) of the Regulations is replaced by the following:

84.6 (1) On the request of the account holder, an association shall ensure that the on-track account betting system is capable of providing a visual display of the balance in the account,

(2) Paragraphs 84.6(2)(b) and (c) of the Regulations are replaced by the following:

(b) recorded in the account of the account holder by means that allow verification at any time; and

(c) confirmed to the account holder.

(3) Subsection 84.6(3) of the Regulations is replaced by the following:

(3) An association shall ensure that the on-track account betting system is designed to provide for the automatic turning off of any visual display.

(4) Subsection 84.6(6) of the Regulations is repealed.

47. Section 84.9 of the Regulations is replaced by the following:

84.9 An officer may audit an account at any time.

48. Section 85 of the Regulations is replaced by the following:

85. (1) An association that proposes to conduct theatre betting shall apply in writing to the Executive Director each year for a theatre licence for each betting theatre that the association proposes to operate.

(2) An association making an application for a theatre licence shall

(a) be the holder of a permit;

(b) be the holder of a licence issued by the Lieutenant Governor in Council of the province in which the betting theatre is located, or any other person or authority in the province that may be specified by the Lieutenant Governor in Council, in accordance with paragraph 204(8)(e) of the Act;

(c) provide evidence that it owns the betting theatre in respect of which the application is being made or holds a lease on that betting theatre for the time period of the proposed betting;

(d) submit a description of

(i) the methods by which the association will present the information required under sections 25 and 26 to the public,

(ii) how the association will transmit pari-mutuel data from the betting theatre to the organization conducting the pari-mutuel betting, including an explanation of how the security of the transmission will be ensured, and

(iii) the facilities and equipment to be used to conduct the theatre betting.

(3) If an association has complied with subsections (1) and (2), the Executive Director shall issue a theatre licence to that association for the time period of the proposed betting if that period is less than the duration of the permit.

49. Paragraphs 86(a) to (c) of the Regulations are replaced by the following:

(a) the association has been issued a permit;

(b) an officer has reviewed the facilities and equipment referred to in subparagraph 85(2)(d)(iii) and authorized them as being suitable for the purpose intended;

(c) the association has been issued a theatre licence in respect of that betting theatre;

(d) the association posts the theatre licence in the betting theatre;

(e) the association displays the Canadian Pari-Mutuel Agency contact information; and

(f) the association informs customers on the procedure for submitting complaints.

50. Sections 87 to 89 of the Regulations are repealed.

51. Subsections 90(1) and (2) of the Regulations are replaced by the following:

90. (1) Subject to subsection (1.1), an association that proposes to conduct inter-track betting or separate pool betting at its race-course, whether as a pool host or a satellite track, shall

(a) be in possession of an approval issued by the appropriate Commission to conduct 10 or more days of racing for the year;

(b) apply each year in writing to the Executive Director for authorization to conduct the inter-track or separate pool betting;

(c) provide evidence of an agreement between the association and another association for the conduct of inter-track betting or separate pool betting, as the case may be, between the race-courses of the two associations, whether as a pool host or a satellite track, and include

(i) the types of bets that are proposed to be offered,

(ii) the legal percentages to be deducted from each pool that each association proposes to offer, and

(iii) the method of calculation that the associations propose to use for each pool that is combined.

(1.1) An association that proposes to conduct inter-track betting or separate pool betting at its race-course as a pool host or a satellite track by combining the money bet on pools in a foreign country with the money bet on the corresponding pools at its race-course shall

(a) be in possession of an approval issued by the appropriate Commission to conduct 10 or more days of racing for the year;

(b) apply each year in writing to the Executive Director for authorization to conduct the inter-track betting and include the name and address of

(i) the organization conducting the foreign betting, and

(ii) the governing body that regulates the foreign betting; and

(c) provide evidence of an agreement between the association and the organization conducting the foreign betting, and include

(i) the types of bets that are proposed to be offered,

(ii) the legal percentages to be deducted from each pool that the association proposes to offer and the percentage to be deducted from each pool that the foreign organization proposes to offer, and

(iii) the method of calculation that the association and the foreign organization propose to use for each pool that is combined.

(1.2) If the association already has an authorization for the previous year to conduct the inter-track betting or separate pool betting as a pool host or a satellite track, pursuant to subsection (1) or (1.1), the association may provide the Executive Director with a statement, in writing, confirming that the information submitted in its previous year’s application in respect of that authorization remains unchanged.

(2) No association shall conduct inter-track or separate pool betting unless

(a) the association has been issued a permit;

(b) the association has been authorized in writing by the Executive Director to conduct inter-track or separate pool betting;

(c) an officer has reviewed the facilities and equipment for conducting inter-track or separate pool betting and authorized them as being suitable for the purpose intended; and

(d) the association has informed the Executive Director of the dates that the races will be held.

52. Sections 92 and 93 of the Regulations are replaced by the following:

92. An association that operates a race-course as a satellite track shall conduct inter-track or separate pool betting only during the period in which betting may be conducted by the pool host.

93. No association that conducts inter-track betting or separate pool betting shall accept bets on a race after the start of the race.

53. Section 94 of the Regulations is replaced by the following:

94. (1) Subject to subsection (1.1), an association that proposes to conduct foreign race inter-track betting or foreign race separate pool betting shall

(a) be in possession of an approval issued by the appropriate Commission to conduct 10 or more days of racing for the year;

(b) apply each year in writing to the Executive Director for authorization to conduct the foreign inter-track betting or foreign race separate pool betting and include in the application the name and address of

(i) the race-course at which the foreign racing is scheduled to be held,

(ii) the organization holding the foreign racing and, in the case of foreign race inter-track betting, the organization conducting the foreign betting, and

(iii) the governing body that regulates the foreign racing and, in the case of foreign race inter-track betting, the governing body that regulates the foreign betting; and

(c) provide the Executive Director with evidence of an executed agreement between the association and the organization conducting the pari-mutuel betting on foreign racing for the conduct of foreign race inter-track betting or foreign race separate pool betting, as the case may be, and include

(i) the types of bets proposed to be offered,

(ii) the legal percentages to be deducted from each pool that the association proposes to offer and the percentage to be deducted from each pool that the organization holding the foreign-hosted betting pools proposes to offer, and

(iii) in the case of foreign race-track betting, the description of how the betting pools are operated as combined pools and the applicable rules for each type of bet that the association proposes to offer; and

(d) provide the Executive Director with details of the communication system that will be used by the association to ensure the accurate and timely exchange of race information between the association and the organization holding the foreign racing and the organization conducting the betting.

(1.1) An association that proposes to conduct foreign race inter-track betting or foreign race separate pool betting at its race-course as a pool host or a satellite track by combining the money bet on pools in a foreign country with the money bet on the corresponding pools at its race-course shall

(a) be in possession of an approval issued by the appropriate Commission to conduct 10 or more days of racing for the year;

(b) apply each year in writing to the Executive Director for authorization to conduct the inter-track betting and include the name and address of

(i) the organization conducting the foreign betting, and

(ii) the governing body that regulates the foreign betting; and

(c) provide evidence of an agreement between the association and the organization conducting the foreign betting, and include

(i) the types of bets that are proposed to be offered,

(ii) the legal percentages to be deducted from each pool that the association proposes to offer and the percentage to be deducted from each pool that the foreign organization proposes to offer, and

(iii) the method of calculation that the association and the foreign organization propose to use for each pool that is combined.

(2) If the association already has an authorization for the previous year to conduct the foreign race inter-track betting or foreign race separate pool betting as a pool host or a satellite track pursuant to subsection (1) or (1.1), the association may provide the Executive Director with a statement, in writing, confirming that the information submitted in its previous year’s application in respect of that authorization remains unchanged.

54. Paragraphs 95(1)(a) and (b) of the Regulations are replaced by the following:

(a) the association has been issued a permit;

(b) the association has been authorized in writing by the Executive Director to conduct the foreign race inter-track betting or foreign race separate pool betting;

(c) an officer has reviewed the facilities and equipment for conducting the foreign race inter-track betting or foreign race separate pool betting and authorized them as being suitable for the purpose intended; and

(d) the association has informed the Executive Director of the dates that the races will be held.

55. The Regulations are amended by adding the following after section 97:

97.1 (1) If there is an inconsistency between the foreign pool host rules relating to the conduct of foreign race inter-track betting and these Regulations, the rules prevail.

(2) In the absence of applicable foreign pool host rules relating to the conduct of foreign race inter-track betting, these Regulations apply.

56. Sections 98 and 99 of the Regulations are replaced by the following:

98. No association that conducts foreign race inter-track betting or foreign race separate pool betting shall accept bets on a race after the start of the race.

57. (1) Subsection 102(1) of the Regulations is replaced by the following:

102. (1) For the purposes of subsection 204(6) of the Act, the maximum percentage that an association may deduct and retain in respect of any pool is 35 per cent of the total amount of money bet through the agency of its pari-mutuel system in respect of that pool.

(2) Subsections 102(2.1) to (4) of the Regulations are replaced by the following:

(2.1) No association shall deduct and retain any percentage from any pool that exceeds the association’s percentage for the pool that is set out in its permit or authorization under section 90 or 94, as the case may be.

(3) If an association proposes to change its percentage, it shall send a written notification of the proposed change to the Executive Director.

(4) No association shall deduct and retain its revised percentage referred to in subsection (3) until five days after the notification referred to in that subsection has been received by the Executive Director.

58. (1) The portion of subsection 103(1) of the Regulations before paragraph (a) is replaced by the following:

103. (1) An association shall, for each pool offered on each race, make available the following information to an officer, on request:

(2) Paragraph 103(1)(j) of the Regulations is replaced by the following:

(j) the amount of any cents retained by the association; and

(3) Subsections 103(2) and (3) of the Regulations are replaced by the following:

(2) No association shall permit any change to be made to the amounts referred to in paragraphs (1)(a) to (k) unless the change is authorized in writing by an officer.

59. Sections 104 and 105 of the Regulations are replaced by the following:

104. An association shall maintain an up-to-date record of all outstanding tickets.

105. An association shall retain any ticket that was cashed after the end of the racing day during which it was issued until its destruction is authorized by an officer.

60. The portion of section 107 of the Regulations before paragraph (a) is replaced by the following:

107. Subject to section 135 and subsection 142.1(2), an association shall make available for refund

61. Section 109 of the Regulations is replaced by the following:

109. If the first race of a daily double is cancelled or if the second race of a daily double is cancelled before betting is closed on the first race, an association shall make available for refund the daily double bets.

62. Subsection 110(1) of the Regulations is replaced by the following:

110. (1) Subject to subsection (2), if a horse is scratched from the first race of a daily double or from the second race of a daily double before betting is closed on the first race, an association shall make available for refund the bets made on that horse.

63. Section 111 of the Regulations is replaced by the following:

111. If the second race of a daily double is cancelled after betting has been closed, an association shall pay out a consolation double, calculated in accordance with section 136, to the holder of a daily double ticket who selected the winning horse in the first race of that daily double.

64. Subsection 112(1) of the Regulations is replaced by the following:

112. (1) Subject to subsection (2), if a horse is scratched from the second race of a daily double after betting has been closed, an association shall pay out a consolation double, calculated in accordance with subsection 136(1) or 137(4), as the case may be, to the holder of a daily double ticket who selected the winning horse in the first race combined with the horse that is scratched in the second race.

65. Subsection 113(4) of the Regulations is replaced by the following:

(4) An association shall add all money resulting from an underpayment to a pari-mutuel pool, not later than one year after the day on which the underpayment was incurred.

66. Subsection 114(2) of the Regulations is repealed.

67. Sections 115 and 116 of the Regulations are replaced by the following:

115. (1) If a pay-out price is less than $1.05, an association shall, at its expense, pay not less than $1.05 per dollar bet to each holder of a winning bet.

(2) Subsection (1) does not apply if the winning bet results from a refund in accordance with sections 106 to 110.

68. Section 117 of the Regulations is replaced by the following:

117. An association shall immediately pay the pay-out price to the holder of a winning ticket at a location identified by the association.

69. Paragraph 118(b) of the Regulations is replaced by the following:

(b) inform the public of the change in the posted pay-out price; and

70. Subsection 119(3) of the English version of the Regulations is replaced by the following:

(3) Subject to subsections (5) and (6), for the calculation of the pay-out price of any pool, an association using the gross pricing method shall make the applicable calculations set out in sections 120 to 147.

70. The Regulations are amended by adding the following after section 142:

OTHER PARI-MUTUEL POOLS

142.1 (1) If an association proposes to offer a type of bet that is not described in this Part, the bet may be offered if

(a) the bet is a pari-mutuel bet approved by the Association of Racing Commissioners International;

(b) subject to subsection (2), the bet is in compliance with the Act and any other Act of Parliament or legislature and any regulation made under it;

(c) the association provides to the Executive Director a description of the proposed type of bet and evidence of its approval by the Association of Racing Commissioners International;

(d) before operating the bet, the type of bet that the association may offer and the method of calculation that the association may use for each type of bet have been included in the association’s permit; and

(e) the association’s operation of the bet conforms to the description of the bet in the permit.

(2) A bet described in paragraph (1)(a) is not required to comply with the requirements of section 107.

71. The heading of Part V of the Regulations is replaced by the following:

EQUINE DRUG CONTROL PROGRAM

72. Section 150 of the Regulations is replaced by the following:

150. (1) An association that has an equine drug control program shall provide a retention area on its premises for the activities relating to the program.

(2) While a retention area is being used by persons who are undertaking activities relating to an equine drug control program, an association shall

(a) limit entry to the area to

(i) those persons,

(ii) officers, and officials of a Commission or the association, in the performance of their duties,

(iii) the owner or trainer of a horse chosen to undergo a test pursuant to subsection 161(1),

(iv) persons that are authorized by a test inspector, and

(v) horses selected for testing; and

(b) ensure that only equipment used on the racing strip or for controlling the horse is brought into the retention area.

73. Section 156 of the Regulations and the heading before it are repealed.

74. The portion of subsection 161(1) of the Regulations before paragraph (a) is replaced by the following:

161. (1) A steward or judge, as the case may be, a veterinarian designated by the appropriate Commission or an officer may choose any horse that is entered in a race to undergo a test

75. Section 170 of the Regulations is replaced by the following:

170. With respect to a drug set out in section 3 of the schedule and administered to a horse entered in a race at a race-course, the owner or trainer of the horse shall provide a test inspector

(a) at the race-course, not later than one half hour before the post time of the race in which the horse is entered, with a statement signed by the horse’s veterinarian or trainer that identifies the horse, including its sex, and the race in which it is entered and indicates the brand name, generic name, route of administration, dosage and time of the last administration of the drug to the horse; and

(b) immediately after the race, if the horse has been chosen to undergo a test, with an official sample collected in accordance with section 162.

76. (1) The portion of paragraph 170.1(1)(d) of the Regulations before subparagraph (i) is replaced by the following:

(d) prohibits any horse on the EIPH list from racing after a recurrence of bleeding during or after a race that is confirmed by a veterinarian designated by the appropriate Commission, for a minimum period of

(2) Subsection 170.1(2) of the Regulations is replaced by the following:

(2) For the purposes of paragraph (1)(a), the Commission shall add a horse to the list if the following conditions are met:

(a) the owner or trainer of the horse and the consulting veterin-arian licensed by the appropriate Commission have determined that it would be in the horse’s best interest to be placed on the list, and

(b) the veterinarian designated by the appropriate Commission has endorsed that determination.

(3) Where a horse on an EIPH list is chosen to undergo a test pursuant to subsection 161(1), the owner or trainer of the horse shall provide a test inspector, immediately after the race, with an official sample of blood collected in accordance with section 162.

77. Section 170.2 of the Regulations is repealed.

78. Paragraph 171(c) of the Regulations is replaced by the following:

(c) unless otherwise permitted by a test inspector or a veterinarian designated by the appropriate Commission, administer, after a race, anything except drinking water to a horse that has been chosen to undergo a test under subsection 161(1), until the horse is discharged;

79. (1) The portion of section 1 of the French version of the schedule to the Regulations before paragraph (d) is replaced by the following:

1. Toute substance ou tout métabolite, préparation, dérivé, isomère ou sel de cette substance qui :

a) soit est étiqueté pour usage vétérinaire en application du Règlement sur les aliments et drogues durant une période de 240 jours suivant la date d’attribution de l’identification numérique aux termes de ce règlement;

b) soit est non étiqueté pour usage vétérinaire en application du Règlement sur les aliments et drogues;

c) soit entrave l’analyse d’une drogue visée dans la présente annexe;

(2) The portion of paragraph 1(d) of the French version of the schedule to the Regulations before “Acépromazine (Acepromazine)” is replaced by the following:

(d) soit figure dans la liste suivante :

80. The Regulations are amended by replacing “drug control surveillance program” with “equine drug control program” in the following provisions:

(a) subparagraph 6(2)(b)(ii);

(b) section 149; and

(c) paragraph 171(d).

TRANSITIONAL PROVISIONS

81. Despite section 82, every permit or theatre licence issued or authorization obtained pursuant to the Pari-Mutuel Betting Supervision Regulations shall continue to be valid until its expiry date.

COMING INTO FORCE

82. These Regulations come into force on the day on which they are registered.

[35-1-o]

Footnote a
S.C. 1994, c. 38, par. 25(1)(g)

Footnote b
S.C. 1994, c. 38, par. 25(1)(g)

Footnote c
R.S., c. C-46

Footnote 1
SOR/91-365


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