A. Each organization licensee described in paragraph 2 of
subsection C of Section 262 of this title shall distribute from the
first Ten Million Dollars ($10,000,000.00) of adjusted gross
revenues generated by any gaming conducted pursuant to this act as
follows:
1. Ten percent (10%) shall be remitted to the Oklahoma Tax
Commission on the fifteenth day following the end of the month in
which it was retained. Prior to July 1, 2008, twelve percent (12%)
of the revenue derived pursuant to this paragraph shall be
apportioned monthly to the Oklahoma Higher Learning Access Trust
Fund and eighty-eight percent (88%) of such revenue shall be
apportioned to the Education Reform Revolving Fund. On or after
July 1, 2008, twelve percent (12%) of the revenue derived pursuant
to this paragraph shall be apportioned monthly to the General
Revenue Fund and eighty-eight percent (88%) of such revenue shall be
apportioned to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Twenty-five percent (25%) less the adjusted gross revenue
derived from one-half (1/2) of the Operational Expenses Revolving
Fund Retention Percentage shall be retained by the organization
licensee to be distributed according to subsection H of this
section; and
4. Sixty-five percent (65%) less the adjusted gross revenue
derived from one-half (1/2) of the Operational Expenses Revolving
Fund Retention Percentage shall be retained by the organization
licensee.
B. The organization licensee described in paragraph 1 of
subsection C of Section 262 of this title shall distribute from the
first Ten Million Dollars ($10,000,000.00) of adjusted gross
revenues generated by any gaming conducted pursuant to this act as
follows:
1. Ten percent (10%) shall be remitted to the Tax Commission on
the fifteenth day following the end of the month in which it was
retained. Prior to July 1, 2008, twelve percent (12%) of the
revenue derived pursuant to this paragraph shall be apportioned
monthly to the Oklahoma Higher Learning Access Trust Fund and
eighty-eight percent (88%) of such revenue shall be apportioned to
the Education Reform Revolving Fund. On or after July 1, 2008,
twelve percent (12%) of the revenue derived pursuant to this
paragraph shall be apportioned monthly to the General Revenue Fund
and eighty-eight percent (88%) of such revenue shall be apportioned
to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Thirty percent (30%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee
to be distributed according to subsection H of this section; and
4. Sixty percent (60%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee.
C. Each organization licensee shall distribute from retained
adjusted gross revenues in excess of Ten Million Dollars
($10,000,000.00) per calendar year but not to exceed Thirty Million
Dollars ($30,000,000.00) per calendar year generated from any gaming
conducted pursuant to this act as follows:
1. Ten percent (10%) shall be remitted to the Tax Commission on
the fifteenth day following the end of the month in which it was
retained. Prior to July 1, 2008, twelve percent (12%) of the
revenue derived pursuant to this paragraph shall be apportioned
monthly to the Oklahoma Higher Learning Access Trust Fund and
eighty-eight percent (88%) of such revenue shall be apportioned to
the Education Reform Revolving Fund. On or after July 1, 2008,
twelve percent (12%) of the revenue derived pursuant to this
paragraph shall be apportioned monthly to the General Revenue Fund
and eighty-eight percent (88%) of such revenue shall be apportioned
to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Thirty percent (30%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee
to be distributed according to subsection H of this section; and
4. Sixty percent (60%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee.
D. Each organization licensee shall distribute from retained
adjusted gross revenues in excess of Thirty Million Dollars
($30,000,000.00) per calendar year but not to exceed Forty Million
Dollars ($40,000,000.00) per calendar year generated by any gaming
conducted pursuant to this act as follows:
1. Fifteen percent (15%) shall be remitted to the Tax
Commission on the fifteenth day following the end of the month in
which it was retained. Prior to July 1, 2008, twelve percent (12%)
of the revenue derived pursuant to this paragraph shall be
apportioned monthly to the Oklahoma Higher Learning Access Trust
Fund and eighty-eight percent (88%) of such revenue shall be
apportioned to the Education Reform Revolving Fund. On or after
July 1, 2008, twelve percent (12%) of the revenue derived pursuant
to this paragraph shall be apportioned monthly to the General
Revenue Fund and eighty-eight percent (88%) of such revenue shall be
apportioned to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Thirty percent (30%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee
to be distributed according to subsection H of this section; and
4. Fifty-five percent (55%) less the adjusted gross revenue
derived from one-half (1/2) of the Operational Expenses Revolving
Fund Retention Percentage shall be retained by the organization
licensee.
E. Each organization licensee shall distribute from retained
adjusted gross revenues in excess of Forty Million Dollars
($40,000,000.00) per calendar year but not to exceed Fifty Million
Dollars ($50,000,000.00) per calendar year generated from any gaming
conducted pursuant to this act as follows:
1. Twenty percent (20%) shall be remitted to the Tax Commission
on the fifteenth day following the end of the month in which it was
retained. Prior to July 1, 2008, twelve percent (12%) of the
revenue derived pursuant to this paragraph shall be apportioned
monthly to the Oklahoma Higher Learning Access Trust Fund and
eighty-eight percent (88%) of such revenue shall be apportioned to
the Education Reform Revolving Fund. On or after July 1, 2008,
twelve percent (12%) of the revenue derived pursuant to this
paragraph shall be apportioned monthly to the General Revenue Fund
and eighty-eight percent (88%) of such revenue shall be apportioned
to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Twenty-five percent (25%) less the adjusted gross revenue
derived from one-half (1/2) of the Operational Expenses Revolving
Fund Retention Percentage shall be retained by the organization
licensee to be distributed according to subsection H of this
section; and
4. Fifty-five percent (55%) less the adjusted gross revenue
derived from one-half (1/2) of the Operational Expenses Revolving
Fund Retention Percentage shall be retained by the organization
licensee.
F. Each organization licensee shall distribute from retained
adjusted gross revenues in excess of Fifty Million Dollars
($50,000,000.00) per calendar year but not to exceed Seventy Million
Dollars ($70,000,000.00) per calendar year generated from any gaming
conducted pursuant to this act as follows:
1. Twenty-five percent (25%) shall be remitted to the Tax
Commission on the fifteenth day following the end of the month in
which it was retained. Prior to July 1, 2008, twelve percent (12%)
of the revenue derived pursuant to this paragraph shall be
apportioned monthly to the Oklahoma Higher Learning Access Trust
Fund and eighty-eight percent (88%) of such revenue shall be
apportioned to the Education Reform Revolving Fund. On or after
July 1, 2008, twelve percent (12%) of the revenue derived pursuant
to this paragraph shall be apportioned monthly to the General
Revenue Fund and eighty-eight percent (88%) of such revenue shall be
apportioned to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Twenty-two and one-half percent (22 1/2%) less the adjusted
gross revenue derived from one-half (1/2) of the Operational
Expenses Revolving Fund Retention Percentage shall be retained by
the organization licensee to be distributed according to subsection
H of this section; and
4. Fifty-two and one-half percent (52 1/2%) less the adjusted
gross revenue derived from one-half (1/2) of the Operational
Expenses Revolving Fund Retention Percentage shall be retained by
the organization licensee.
G. Each organization licensee shall distribute from retained
adjusted gross revenues in excess of Seventy Million Dollars
($70,000,000.00) per calendar year generated from any gaming
conducted pursuant to this act as follows:
1. Thirty percent (30%) shall be remitted to the Tax Commission
on the fifteenth day following the end of the month in which it was
retained. Prior to July 1, 2008, twelve percent (12%) of the
revenue derived pursuant to this paragraph shall be apportioned
monthly to the Oklahoma Higher Learning Access Trust Fund and
eighty-eight percent (88%) of such revenue shall be apportioned to
the Education Reform Revolving Fund. On or after July 1, 2008,
twelve percent (12%) of the revenue derived pursuant to this
paragraph shall be apportioned monthly to the General Revenue Fund
and eighty-eight percent (88%) of such revenue shall be apportioned
to the Education Reform Revolving Fund;
2. No less than one-half of one percent (0.5%) and no more than
three percent (3%) shall be apportioned, according to the
requirements of Section 2 of this act, to the Oklahoma Horse Racing
Commission Operational Expenses Revolving Fund on the fifteenth day
following the end of the month in which the revenue was collected;
3. Twenty percent (20%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee
to be distributed according to subsection H of this section; and
4. Fifty percent (50%) less the adjusted gross revenue derived
from one-half (1/2) of the Operational Expenses Revolving Fund
Retention Percentage shall be retained by the organization licensee.
H. Each organization licensee shall remit, on the fifteenth day
following the end of the month in which they were retained, an
amount equal to nine percent (9%) of the funds generated pursuant to
paragraph 3 of subsections A through G of this section to the
Oklahoma Horse Racing Commission for deposit in the Oklahoma
Breeding Development Fund Special Account pursuant to Section 208.3
of this title, to be distributed to the participating breeds as
provided in paragraphs 1 and 2 of this subsection.
Each organization licensee shall remit to the official
horsemen's organization representing participating horsemen during
the live race meets, on the fifteenth day following the end of the
month in which they were retained, an amount equal to one and five-
tenths percent (1.5%) of the funds generated pursuant to paragraph 3
of subsections A through G of this section on a pro rata basis based
on the distribution of purse funds available to the breeds of horses
participating in the live race meetings with one percent (1%) to be
used for administrative expenses and five-tenths of one percent
(0.5%) to provide funding for a benevolence program at each
racetrack to benefit participating horsemen and their employees.
Such benevolence program shall provide medical benefits or services
to persons associated with the horse racing industry who are in
financial need.
Each organization licensee shall remit to the breed
organizations designated by the official horsemen's representative,
on the fifteenth day following the end of the month in which they
were retained, an amount equal to one percent (1%) of the funds
generated pursuant to paragraph 3 of subsections A through G of this
section on a pro rata basis based on the distribution of purse funds
available to the breeds of horses participating in the live race
meetings for funding to support the breed organizations dedicated to
the promotion of breeding and racing horses in Oklahoma.
Subject to the provisions of subsection I of this section, the
remainder of the funds generated pursuant to paragraph 3 of
subsections A through G of this section shall be distributed by the
organization licensee as purses for participating horses as follows:
1. For organization licensees that conduct one or more race
meetings dedicated to Thoroughbred racing and one or more race
meetings dedicated to Quarter Horse, Paint and Appaloosa horse
racing, fifty percent (50%) to purses for Thoroughbred races, forty-
five percent (45%) to purses for Quarter Horse races, and five
percent (5%) to purses for Paint and Appaloosa races; and
2. For all other organization licensees, forty-five percent
(45%) to purses for Thoroughbred races, forty-five percent (45%) to
purses for Quarter Horse races and ten percent (10%) to purses for
Paint and Appaloosa horse races.
I. The percentage of purse money generated by an organization
licensee that is designated for deposit to the Oklahoma Breeding
Development Fund Special Account pursuant to subsection H of this
section may be increased by an additional percentage that shall not
exceed thirty-three percent (33%) of the total funds for
participating horsemen upon the written application of the official
horsemen's representative for each of the breeds of horses
participating in a race meeting at the track.
All Oklahoma Breeding Development Fund Special Account monies
generated pursuant to this section shall not be subject to a
reduction pursuant to paragraph 7 of subsection B of Section 208.3
of this title.
J. An organization licensee's annual application for race dates
shall include any existing agreement between the organization
licensee and the official horsemen's representative for each breed
participating in the live racing meeting at that track which sets
forth the thresholds whereby the minimum number of races will
increase or decrease during that calendar year.
K. For purposes of this act a "recipient licensee" means an
organization licensee operating a racetrack location at which an
organization licensee is licensed to conduct a race meeting pursuant
to the provisions of Section 208.2 of this title located in a county
with a population exceeding five hundred thousand (500,000) persons,
according to the most recent Federal Decennial Census, and a
"participating tribe" means a tribe which operates a gaming facility
within a radius of twenty (20) miles from the enclosure of a
recipient licensee pursuant to a compact set forth in Section 281 of
this title. Such compact shall require that a participating tribe
contribute a percentage of its "monthly average take" from
electronic amusement games, electronic bonanza-style bingo games and
electronic instant bingo games (hereinafter referred to collectively
as "electronic covered games") as defined in that tribe's Gaming
Compact as long as the prohibition against fair associations or
organizations licensed pursuant to Section 208.2 of this title
conducting authorized gaming under this act as set forth in
subsection A of Section 262 of this title remains in effect.
Participating tribes shall make contributions in accordance with the
following requirements:
1. Each participating tribe shall calculate its monthly average
take for electronic covered games for each calendar month of
operation of electronic covered games. For purposes of this
paragraph, the "monthly average take" shall mean all adjusted gross
revenue from electronic covered games at the tribal gaming
facilities that are located within a radius of twenty (20) miles
from the enclosure of a recipient licensee during the applicable
calendar month, divided by the number of electronic covered games
operated by the tribe at the gaming facility during the applicable
calendar month;
2. Each participating tribe shall calculate its pro rata share
of the payments required by this subsection, based on the number of
electronic covered games in the tribal gaming facilities within the
twenty-mile radius described in paragraph 1 of this subsection,
during the applicable calendar month ("tribal share"). As an
example only, if three (3) tribes participate in this subsection
during a calendar month, and have the respective number of games in
the amount of 500, 1,000, and 1,000, then the payments called for in
paragraph 3 of this subsection would be multiplied by twenty percent
(20%), forty percent (40%) and forty percent (40%) to determine each
tribe's pro rata share; and
3. Each participating tribe shall make the following payments
no later than the fifteenth day following the end of the applicable
calendar month, with the first payment to be due no later than the
fifteenth day following the end of the first month in which a
participating tribe commences gaming operations pursuant to the
compact set out in Section 281 of this title:
a. the tribe shall pay its pro rata share of the product
of 450 multiplied by .05 multiplied by the greater of
Seven Thousand Four Hundred Eight Dollars ($7,408.00)
or the tribe's monthly average take for the applicable
month to the recipient licensee, and
b. the tribe shall pay its pro rata share of the product
of 450 multiplied by .25 multiplied by the tribe's
monthly average take for the applicable month to the
Oklahoma Horse Racing Commission to be used as
directed by purse committees for the following
purposes:
(1) distributed to organization licensees for purses
for participating horses,
(2) paid to the Oklahoma Breeding Development Fund
Special Account. The amount designated for
deposit into the Oklahoma Breeding Development
Fund Special Account shall never be less than
nine percent (9%) of the funds generated nor more
than thirty-three percent (33%) of the total
designated funds for horsemen participating in
any race meeting, and
(3) paid to the official horsemen's representatives
and to the breeding organizations designated by
the official horsemen's representatives and to
the breeding organizations designated by the
official horsemen's representatives to be used to
pay their administrative expenses and to fund
their benevolence programs. In no event shall
the amount designated for such administrative
expenses exceed one percent (1%) of the funds
generated nor shall the monies designated for
benevolence programs exceed five-tenths of one
percent (0.5%) of the funds generated.
L. The "purse committees" shall be comprised of the official
elected horsemen representatives for each breed as designated in
Section 267 of this title. The total contribution of the
participating tribes made pursuant to subparagraph b of paragraph 3
of subsection K of this section shall be distributed as directed by
the purse committees based on the following formula, to wit: fifty
percent (50%) by the purse committee representing Thoroughbred
horses; forty percent (40%) by the purse committee representing
Quarter Horses; and ten percent (10%) by the purse committee
representing Paint and Appaloosa horses.
The purse committees shall meet at least sixty (60) days prior
to the beginning of a calendar year to provide directions for
placement of the purse funds described in subparagraph b of
paragraph 3 of subsection K of this section with one or more
organization licensees for the succeeding calendar year. In
providing such directions the purse committees shall consider and
attempt to achieve the following preferences in the order set forth
below:
FIRST. Through the use of no more than fifty percent (50%) of
the purse funds available for distribution under this section,
maintaining the purse structures of any organization licensee
operating a racetrack location located in a county with a population
exceeding six hundred thousand (600,000) persons, according to the
most recent federal decennial census, at a level that is competitive
with the purse structures of similarly situated racetracks,
including those in surrounding states, and that will encourage the
participation by horsemen in that organization licensee's race meet
or meets; and
SECOND. Maintaining the purse structures of the organization
licensee closest in geographic proximity to the location where the
purse funds described in subparagraph b of paragraph 3 of subsection
K of this section were generated at a level that is competitive with
the purse structures of similarly situated racetracks, including
those in surrounding states, and that will encourage the
participation by horsemen in that organization licensee's race meet
or meets; and
THIRD. Maintaining the purse structures of the remaining
organization licensees in the state at a level that will encourage
the participation by horsemen in those organization licensees' race
meet or meets.
M. Organization licensees shall keep accurate books and records
of all revenue generated by any gaming conducted pursuant to the
State-Tribal Gaming Act and of the taxes paid pursuant to the
provisions of this section. The Oklahoma Tax Commission or an
authorized representative shall have access at all reasonable times
to such records for the purpose of examining and checking the
records and ascertaining whether the proper amount of taxes is being
paid. The Oklahoma Tax Commission shall require verified reports
and a statement of the total of all revenue generated by any gaming
conducted by an organization licensee pursuant to the provisions of
the State-Tribal Gaming Act.
N. The Oklahoma Horse Racing Commission is hereby authorized to
provide repayment of amounts collected pursuant to paragraph 2 of
subsections A through G of this section on a pro rata basis to be
paid from the Oklahoma Horse Racing Commission Operational Expenses
Revolving Fund.
Added by Laws 2004, c. 316, § 4, State Question No. 712, Legislative
Referendum No. 335, adopted at election held on Nov. 2, 2004.
Amended by Laws 2007, c. 355, § 1, emerg. eff. June 4, 2007; Laws
2008, c. 31, § 1, emerg. eff. April 11, 2008; Laws 2017, c. 116, §
6, eff. July 1, 2017.‹ Prev All Oklahoma sections Next ›
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