Pari-Mutuel Betting Supervision Regulations (SOR/91-365)

PART IPermits

• 3 (1) No association shall conduct pari-mutuel betting unless

  • (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 a signed 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.

• (2) and (3) [Repealed, SOR/2017-8, s. 2]

4 An association shall submit an application for a permit to the Executive Director.

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 143;

• (f) provide the dates on 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) 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;

• (i) 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

• (j) 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.

• 6 (1) The Executive Director shall issue a permit, for a period of not greater than three years, 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) A permit that is issued to an association shall

  • (a) specify the period during which the association may conduct pari-mutuel betting; and

  • (b) set out the terms and conditions of the permit, including

    • (i) the type of bets that the association may offer and the method of calculation that the association may use for each type of bet,

    • (ii) the facilities and equipment that require improvements to be made, including those associated with the undertaking of the equine drug control program activities, before the association may conduct pari-mutuel betting at its race-course, and

    • (iii) any limitations or restrictions on pari-mutuel betting that arise from the type of pari-mutuel system used at the association’s race-course.

• 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) or (2) or 94(1) or (2), 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 under section 5 or subsections 76(1), 84.1(1), 85(1), 90(1) or (2) or 94(1) or (2), 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 requirement of its theatre licence or 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, the requirements of the 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.

8 [Repealed, SOR/2003-218, s. 4]

9 [Repealed, SOR/2011-169, s. 6]

10 An association shall display its permit prominently in a public place at its race-course.

11 [Repealed, SOR/2003-218, s. 5]

PART IIPari-mutuel Systems and Related Facilities

Requirements Generally

• 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.

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

  • (a) provide rooms and areas that are lighted, ventilated and equipped with plumbing and electricity to meet the requirements of the operations carried out therein;

  • (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;

  • (d) provide, for the use of an officer, an office in the immediate vicinity of the totalizator that is equipped with

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

    • (ii) a storage cabinet and a filing cabinet that can be locked, and

    • (iii) such additional furnishings as are necessary to permit the officer to perform the officer’s duties; and

  • (e) provide, at the race-course, one or more devices used to close betting on a race, with one being in the immediate vicinity of the totalizator and any others being at locations authorized by an officer.

• (2) Paragraph (1)(d) does not apply in respect of a race-course that conducts races on fewer than 10 days in a year.

14 An association shall maintain a daily written record of the pari-mutuel system’s operations and maintenance and shall retain each record for a period of at least one year from the day on which it was created.

Requirements for Pari-mutuel Systems

15 A pari-mutuel system shall not be approved unless

• (a) it is capable of accurately recording bets;

• (b) it is capable of accurately calculating the pay-out prices;

• (c) the tickets printed by the system contain the information set out in section 16; and

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

  • (i) a description of the pari-mutuel system, including a diagram of the configuration of the totalizator,

  • (ii) a description of the method for sending and receiving pari-mutuel information between host and satellite tracks,

  • (iii) a description of the interface capabilities of the pari-mutuel system,

  • (iv) a description of the security system for the pari-mutuel system,

  • (v) a description of the controlled access to the pari-mutuel system,

  • (vi) a description of the security system that protects all records pertaining to the pari-mutuel system, including records of outstanding tickets and all approved types of pari-mutuel betting,

  • (vii) a description of procedures to implement modifications and testing of the pari-mutuel system,

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

  • (ix) a glossary of terms, procedural-log explanations and any other information required to enable an officer to audit the pari-mutuel system.

15.1 An approval of a pari-mutuel system shall be given for a period of not greater than three years.