<p> Advance Deposit Wagering</p><p>Advance-deposit wagering (ADW) is a form of gambling on the outcome of horse races in which bettors must fund their account before being allowed to place bets. </p><p>ADW is legal under federal law through the Interstate Horse Racing Act and specifically exempt from the Unlawful Internet Gambling Enforcement Act of 2006 (along with fantasy wagering). </p><p>ADW is often conducted online or by phone. In contrast to ADW, credit shops allow wagers without advance funding; accounts are settled at month-end. Racetrack owners, horse interests and state governments sometimes receive a share of ADW revenues.</p><p>Over 30 states specifically authorize and capture ADW revenues for their horse industries. </p><p>West Virginia is a “grey” state where ADW is not specifically authorized nor prohibited. Therefore, horsemen, racetracks and the state of West Virginia do not receive any revenue from ADW wagers made by West Virginia residents and/or non-residents physically located in West Virginia. An estimated $10-20 million wagered annually by these sources. </p><p>HB 3197 (2012) was the first bill in West Virginia to attempt to capture this revenue. </p><p>SB 562 and SB 568 (2016) were introduced last year (SB 568 is essentially the same as HB 3197 (2012)).</p><p>SB 577 / HB 2913 were introduced this year to authorize licensing of advance deposit wagering. Charles Town Races management and CTHBPA representatives worked collaboratively on this version, which was approved by the Racing Commission. </p><p>HB 2955 was also introduced this year but not formally supported by any thoroughbred stakeholders.</p><p>Mountaineer Park management wants a 50-50 split of all ADW revenues between CT and Mountaineer.</p>