(a) Nonprimary locations.--The following shall apply:

(1) Notwithstanding any other provision of this chapter, the commission may approve a licensed racing entity to continue to operate a nonprimary location where it has conducted pari-mutuel wagering on horse races conducted by the licensed racing entity. The licensed racing entity may continue to conduct pari-mutuel wagering at the location on horse races conducted by another licensed racing entity, which horse races may be televised to the location or on horse races simulcast to the location under section 9329 (relating to interstate simulcasting), provided that:

(i) A licensed racing entity has not established a nonprimary location within the primary market area of any racetrack other than a racetrack where the licensed racing entity conducts horse race meetings. Establishment of a nonprimary location by a licensed racing entity within the primary market area of a racetrack where the licensed racing entity conducts horse race meetings shall require approval of the commission.

(ii) A licensed racing entity has not established a nonprimary location within the secondary market area of a racetrack if the nonprimary location is approved by the commission.

(iii) A licensed racing entity has not established a nonprimary location in an area outside the primary and secondary market areas of any racetrack if the location is approved by the commission.

(2) Except as provided under paragraph (1), no additional licenses shall be permitted.

(3) The commission shall annually conduct inspections of the primary facility.

(4) The regulatory authority of the commission shall apply to nonprimary locations and any employees or racing vendors of the licensed racing entity establishing the nonprimary location.

(b) Taxation and records.--Money wagered at all primary and nonprimary locations under this chapter shall be included in common pari-mutuel pools. Money wagered by patrons on the races shall be computed by the amount of money wagered each racing day for purposes of taxation under section 9334 (relating to State Racing Fund and tax rate). The licensed racing entity conducting the horse race meeting and maintaining the pari-mutuel pools shall maintain accurate records of the amount wagered in each pool from every primary and nonprimary location.

(c) Retention.--Money retained under section 9334 shall be calculated for each location where pari-mutuel wagering is being conducted. If wagering has taken place at a nonprimary location where the wagering is conducted by a licensed racing entity other than the licensed racing entity conducting the horse race meeting, the licensed racing entity conducting the horse race meeting shall retain any money to which it is entitled by agreement. The licensed racing entity conducting the horse race meeting shall pay over the balance of the retained money to the licensed racing entity conducting the wagering at the nonprimary location.

(d) Payment of purses.--A licensed racing entity conducting a horse race meeting where pari-mutuel wagering is conducted at one or more nonprimary locations shall distribute money to the horsemen's organization, or, in accordance with the practice of the parties, to be used for payment of purses at that racetrack, as follows:

(1) Except as provided for in paragraphs (2), (3), (4) and (5), an amount equal to but not less than 6% of the daily gross wagering handle on the races at a nonprimary location.

(2) When the gross wagering handle on the races at a nonprimary location on a given day is less than $30,000, the percentage may not be less than 3%.

(3) When the gross wagering handle on the races at a nonprimary location on a given day is between $30,000 and $75,000, the percentage may not be less than 4.75%.

(4) Whenever a nonprimary location is within the primary market area of a licensed racing entity other than the licensed racing entity conducting the races, the applicable percentage shall be distributed one-half to the horsemen's organization at the racetrack or in accordance with the practice of the parties.

(5) Where the horse race meeting is being conducted to be used for the payment of purses at the racetrack and one-half to the horsemen's organization, or in accordance with the practice of the parties, at the racetrack within the primary market area to be used for the payment of purses at the racetrack.

Nothing in this subsection shall be construed to prevent a licensed racing entity from agreeing to distribute amounts greater than the percentages set forth in this subsection. However, if no alternative agreement has been reached, the total percentage for purses under this subsection shall be paid in accordance with the minimum percentages set forth in this subsection.

(e) Other payments.--Notwithstanding any other provision of this chapter, a nonprimary location may be established within the primary market area of a racetrack by agreement between the licensed racing entity and the horsemen's organization at the racetrack specifying the total percentage of handle wagered at the nonprimary location to be distributed to the horsemen's organization, or, in accordance with the practice of the parties, to be used for the payment of purses at that racetrack. If no agreement is reached covering the locations, the total percentage to be paid for purses shall be the same as that applied to on-track wagering at the racetrack located within the primary market area.

Cross References. Section 9331 is referred to in section 9356 of this title.