Oregon Audits Division finds state gambling laws are too vague
(The Center Square) - An audit of the Oregon Racing Commission released by the state's Audits Division found that ambiguity in state gambling laws has led to different interpretations of what the state allows.
The Audits Division said the ambiguity hurts the economic interests and sovereign Tribal nations.
"As technology changes, laws and rules need to be updated to minimize conflicts between existing statutes authorizing gambling on horse races with Oregon’s constitutional prohibition of casinos and limitation of lotteries," the Audits Division said in a news release.
The Oregon Racing Commission manages pari-mutuel wagering across the state, including live, simulcast, and historical horse races.
ORC collected $7.8 million, and over $1.4 million of it went to the state’s General Fund during the 2019-21 biennium.
ORC has had delays in filling and replacing its commissioners, and limited documentation of reviews of its historical horse racing machines, according to the Audits Division. The audit also found ways to increase oversight and transparency of money allocated to supporting the horse racing industry.
The audit made several recommendations to improve the horse racing industry in Oregon.
The Audits Division said ORC should do the following:
- Add requirement(s) either in policy or rule to evaluate, new changes to, game and wagering operations to ensure there is no conflict with the Oregon Constitution and state statutes.
- Enhance rules and develop policies and procedures for allocating and reviewing the use of ADW hub funds.
- Ensure commission meeting minutes provide clear and transparent communication approval detail, including attachments received by the commission to inform action approval.
- Ensure documentation of its licensee reviews are maintained and safeguarded.
Additionally, the Audits Division recommended the state legislature take action related to state gambling and pari-mutuel wagering.
Here is what the Audits Division recommended the legislature do:
- With stakeholder and Tribal input, providing additional clarity around the definition of a casino in state statutes.
- To manage technological advances, setting specific statutory limitations on elements of user interfaces and player experiences, for online and physical gambling products. This could include modifying related sections of ORS Chapters 167 and 462. Ensure limitations apply to those licensed by ORC.
