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SB 328

RACETRACK & GAMING OPERATOR LICENSING

2025 Regular Session Introduced by Moe Maestas

SB 328 overhauls racing licenses by extending renewals to 3 years, consolidating license classes, and adding confidentiality with a court-backed process for releasing materials.

action postponed indefinitely
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Bill Summary · SB 328

SB 328 — Racetrack & Gaming Operator Licensing (summary)

Status: Action postponed indefinitely (06/03/2025)
Introduced: Feb 11, 2025
Primary subject: Gaming / Horseracing regulation

Purpose / intent

SB 328 revises New Mexico racing and gaming statutes to (1) change how racetrack licenses and racing dates are approved, (2) consolidate license classes and extend license/permit renewal cycles, (3) add confidentiality protections and a judicial petition process for applicant materials, and (4) adjust certain revenue/allocations tied to pari‑mutuel and simulcast receipts. The sponsor frames the changes as modernizing licensure, protecting confidential applicant information, and streamlining regulatory approvals.

Key provisions

  • Racing Commission powers: replaces the Commission’s authority to “assign” race dates with authority to “approve” the dates that racetracks themselves assign (amends § 60‑1A‑4(B)(1)).
  • License classification: removes prior class A / class B racetrack license distinction; all racetrack licenses are regulated under the prior “class A” rules.
  • Confidentiality (new § 60‑1A‑7.1): makes applicant/licensee communications and documents confidential; disclosure limited to written consent or court order; Commission must secure confidential materials and may adopt protective rules.
  • Judicial petition process (new § 60‑1A‑7.2): authorizes the Racing Commission to petition a district court to release confidential material; requires notice to AG and affected parties and a hearing within 10–20 days after petition presentation.
  • Term length / renewals: extends racetrack and certain Gaming Control Board (GCB) licenses, certifications, and work permits from 1 year to 3 years (amendments to §§ 60‑1A‑8(C), 60‑2E‑14, etc.).
  • Racing activity thresholds: clarifies the standards for a “viable race week,” including a minimum of three live race days with ten races each.
  • Gaming operator scope: a racetrack licensed by the Racing Commission may obtain a gaming operator license to operate gaming machines only at the licensed racetrack premises; allows live racing at another licensed premise with SRC authorization.
  • Financial reallocations: removes some previous mandated allocations to the New Mexico Horsemen’s Association and redirects certain portions (e.g., 0.5% of gross simulcast wagers for medical benefits) to the Racing Commission or its designee; eliminates a 33.33% allocation of unclaimed pari‑mutuel tickets previously earmarked for the Horsemen’s Association.
  • Other statutory cleanups: updates related capital‑outlay tax and distribution provisions to remove references to eliminated license classes.

Who is affected

  • Racetrack operators and license applicants (change in licensing class, longer renewal cycles, confidentiality protections).
  • Gaming Control Board (changes to licensing term and potential loss of annual renewal fee revenue).
  • State Racing Commission (rulemaking, petitioning courts, new confidentiality duties).
  • Horsemen’s Association, Horse Breeders’ Association and other industry stakeholders (changes to distributions/retainers).
  • New Mexico Attorney General (possible increased role in court petitions).
  • State budget (see fiscal impacts).

Fiscal and administrative impacts

  • Gaming Control Board fee revenue: GCB estimated reduced license renewal revenues of roughly $142.8K in FY26 and again in FY27 (projected because one‑year renewals become three‑year renewals), producing a temporary multi‑year reduction in recurring revenue while renewal cycles reset.
  • Agencies flagged potential administrative impacts: Racing Commission concerns about reduced authority over race scheduling and operational effects of multi‑year race calendars; NMAG noted possible workload increases depending on role in petition hearings.
  • No large capital appropriation indicated in the fiscal analysis.

Procedural / timeline notes

  • The bill did not specify an alternative effective date in the analysis; absent one it would generally take effect 90 days after adjournment (as noted in the fiscal report).
  • Latest procedural status provided here: “action postponed indefinitely” (06/03/2025), meaning it was not advanced at that time.

Significant issues / tradeoffs

  • Supporters may argue the bill stabilizes licensing, protects sensitive applicant information, and reduces administrative frequency for licensees.
  • Critics (including the Racing Commission in analyses) raised concerns about reduced Commission control over race‑date scheduling, operational uncertainty from three‑year race calendars, possible negative effects on racing oversight, and changes to long‑standing financial allocations to industry groups.

If you want, I can:
- Extract the exact statutory language changes and list the specific code sections amended; or
- Produce a one‑page one‑paragraph brief for stakeholders (e.g., racetrack owners, equine associations, regulators).

Compiled from official sources — confirm details with the bill’s official record.

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