The subcommittee reported House Bill 2166, a bill that lowers the statutory definition of “breakage” for live and simulcast pari-mutuel wagering from 10 cents on the dollar to 1 cent on the dollar, by an 8-0 vote.

Delegate Kreesick, sponsor of the bill, said the change — referred to in the discussion as “penny breakage” — would increase the amount returned to winning bettors compared with the current 10-cent breakage and redirect the small residual to industry funds. Under the substitute described in committee, breakage produced by live and simulcast wagering would be distributed 70 percent for capital improvements and 30 percent to the racing benevolence fund, administered jointly by racing stakeholders and dispersed with commission approval for gambling addiction and substance-abuse counseling, recreational education or related programs. Historical horse racing machines would remain subject to a 10-cent breakage; HHR breakage would be divided 70 percent to the problem gambling treatment and support fund and 30 percent to the racing benevolence fund.

No opposing testimony was recorded before the committee acted. The subcommittee voted to report the bill by voice/roll and recorded an 8-0 tally.

The bill’s changes affect how pari-mutuel winnings are rounded and how the residual “breakage” revenue is used; the committee recorded the measure without further amendment and sent it forward per committee procedure.