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O. T. B. - Off-Track Parimutuel Wagering

In 1990, the state Legislature approved the operation of teletracking facilities in Arizona. Teletracking is defined in state Law as follows:

"Teletracking" means the telecast of live audio and visual signals of running, harness, thoroughbred, quarter horse or greyhound racing conducted at an authorized enclosure within Arizona to an authorized additional wagering facility within Arizona for the purpose of parimutuel wagering.

Race tracks with state-authorized parimutuel wagering may operate teletracking facilities off site by obtaining a State Teletracking Permit for each location. These state permits are renewable annually. For each location to obtain a state permit, the law requires that the off-track site be approved by the governing body of the city or town where the facility will be located or by the County Board of Supervisors if the facility is not located in an incorporated area.

Teletracking facilities are operated by race track employees and generally occupy rental space in sports bars and restaurants. The race track operator benefits by an increased parimutuel wagering base and the sports bar or restaurant benefits from increased sales of food and liquor. The city licenses and taxes both activities under the Privilege (Sales) Tax Ordinance. The tax rate is 1.4 percent of gross income.

For a race track operator to obtain a Teletracking Permit from the State Racing Commission for a Phoenix facility, they first must obtain permission from the Phoenix City Council.

These applications for teletracking sites are placed before the City Council as Formal Actions in a manner similar to that of Liquor license applications. Because State Teletracking Permits are only valid for one year, annual City Council approval also is required.

APPLICATIONS FOR A NEW OTB LOCATION

• Submit applications to License Services at 200 W. Washington St., 10th Floor.

• License Services contacts the State Racing Department to verify the validity of the application.

• License Services contacts the owner/manager of the business facility where OTB is to be located to confirm that space is under contract.

• License Services immediately posts public notice of the teletracking site.

• License Services mails out postcard notices to residents within an 1/8 mile radius, registered neighborhood organizations, village planning committee, and mayor and council offices.

• Applications are distributed to key city departments for their approval/disapproval recommendation, which needs to be received within 20 days.

• The applicant is advised of the Formal Council Agenda date and also of any recommendation for disapproval or citizen protest received during the processing period.

• Applicants are encouraged to be present for the City Council meeting should there be any questions relative to their application.

The City Council considers the following:

• Neighborhood population and liquor license ratios.

• Crime statistics of the proposed location.

• Oral public input at the Council Meeting.

• Recommendations for approval/disapproval by city departments.

The City Clerk notifies the applicant in writing of the council's recommendation. It then forwards the City Council's recommendation with supporting documentation to the State Racing Commission.

APPLICATIONS FOR ADDITIONAL RACING AT EXISTING OTB LOCATIONS AND RENEWAL APPLICATIONS

• Submit your applications to License Services at 200 W. Washington St., 10th Floor.

• Applications are distributed to key city departments for their approval/disapproval recommendation.

• Public Notice is posted at the proposed location for 20 days and postcard notices are mailed to residents within an 1/8 mile radius.

• The applicant is advised of the Formal Council Agenda date and also of any recommendation for disapproval or citizen protest received during the processing period.

• License Services prepares a Request for Council Action and states if there are additional OTB telecasts at the existing facility or if this is a renewal application.

• During the Formal Council Meeting, the City Council recommends approval/disapproval of teletracking applications by evaluating the information presented on the agenda map and data page.

The City Clerk Department notifies the applicant in writing of the Council's recommendation and it then forwards the City approval/disapproval with supporting recommendation documentation to the State Racing Commission.

The city's process should be completed and a recommendation made to the State Racing Commission within 60 calendar days of our receipt of the application.

It should be noted that while state law provides for a city's approval before a teletracking permit is issued, it does not provide guidelines for the city's formal action process. Thus, the City Council may recommend against issuance of a teletracking permit for any reason, and the state must reject the race track operator's application.

If you have any questions, call (602) 262-4638.

Provided as a service of the

CITY CLERK DEPARTMENT
GENERAL SERVICES DIVISION

(03/00)

This publication can be provided in an alternate format by contacting the City Clerk Department, (602) 256-5677/ V; (602) 534-2737/TTY; or (602) 495-5847/FAX.

License Services
200 W. Washington St., 10th Floor
Phoenix, AZ 85003-1611
(602) 262-4638