Okla. Stat. tit. 3A, § 3A-263

A. Each organization licensee described in paragraph 2 of

subsection C of Section 262 of this title shall distribute from the

first Ten Million Dollars ($10,000,000.00) of adjusted gross

revenues generated by any gaming conducted pursuant to this act as

follows:

1. Ten percent (10%) shall be remitted to the Oklahoma Tax

Commission on the fifteenth day following the end of the month in

which it was retained. Prior to July 1, 2008, twelve percent (12%)

of the revenue derived pursuant to this paragraph shall be

apportioned monthly to the Oklahoma Higher Learning Access Trust

Fund and eighty-eight percent (88%) of such revenue shall be

apportioned to the Education Reform Revolving Fund. On or after

July 1, 2008, twelve percent (12%) of the revenue derived pursuant

to this paragraph shall be apportioned monthly to the General

Revenue Fund and eighty-eight percent (88%) of such revenue shall be

apportioned to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Twenty-five percent (25%) less the adjusted gross revenue

derived from one-half (1/2) of the Operational Expenses Revolving

Fund Retention Percentage shall be retained by the organization

licensee to be distributed according to subsection H of this

section; and

4. Sixty-five percent (65%) less the adjusted gross revenue

derived from one-half (1/2) of the Operational Expenses Revolving

Fund Retention Percentage shall be retained by the organization

licensee.

B. The organization licensee described in paragraph 1 of

subsection C of Section 262 of this title shall distribute from the

first Ten Million Dollars ($10,000,000.00) of adjusted gross

revenues generated by any gaming conducted pursuant to this act as

follows:

1. Ten percent (10%) shall be remitted to the Tax Commission on

the fifteenth day following the end of the month in which it was

retained. Prior to July 1, 2008, twelve percent (12%) of the

revenue derived pursuant to this paragraph shall be apportioned

monthly to the Oklahoma Higher Learning Access Trust Fund and

eighty-eight percent (88%) of such revenue shall be apportioned to

the Education Reform Revolving Fund. On or after July 1, 2008,

twelve percent (12%) of the revenue derived pursuant to this

paragraph shall be apportioned monthly to the General Revenue Fund

Oklahoma Statutes - Title 3A. Amusements and Sports Page 65

and eighty-eight percent (88%) of such revenue shall be apportioned

to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Thirty percent (30%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee

to be distributed according to subsection H of this section; and

4. Sixty percent (60%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee.

C. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Ten Million Dollars

($10,000,000.00) per calendar year but not to exceed Thirty Million

Dollars ($30,000,000.00) per calendar year generated from any gaming

conducted pursuant to this act as follows:

1. Ten percent (10%) shall be remitted to the Tax Commission on
ed by the organization licensee.

C. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Ten Million Dollars

($10,000,000.00) per calendar year but not to exceed Thirty Million

Dollars ($30,000,000.00) per calendar year generated from any gaming

conducted pursuant to this act as follows:

1. Ten percent (10%) shall be remitted to the Tax Commission on

the fifteenth day following the end of the month in which it was

retained. Prior to July 1, 2008, twelve percent (12%) of the

revenue derived pursuant to this paragraph shall be apportioned

monthly to the Oklahoma Higher Learning Access Trust Fund and

eighty-eight percent (88%) of such revenue shall be apportioned to

the Education Reform Revolving Fund. On or after July 1, 2008,

twelve percent (12%) of the revenue derived pursuant to this

paragraph shall be apportioned monthly to the General Revenue Fund

and eighty-eight percent (88%) of such revenue shall be apportioned

to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Thirty percent (30%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee

to be distributed according to subsection H of this section; and

4. Sixty percent (60%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee.

D. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Thirty Million Dollars

($30,000,000.00) per calendar year but not to exceed Forty Million

Dollars ($40,000,000.00) per calendar year generated by any gaming

conducted pursuant to this act as follows:

Oklahoma Statutes - Title 3A. Amusements and Sports Page 66

1. Fifteen percent (15%) shall be remitted to the Tax

Commission on the fifteenth day following the end of the month in

which it was retained. Prior to July 1, 2008, twelve percent (12%)

of the revenue derived pursuant to this paragraph shall be

apportioned monthly to the Oklahoma Higher Learning Access Trust

Fund and eighty-eight percent (88%) of such revenue shall be

apportioned to the Education Reform Revolving Fund. On or after

July 1, 2008, twelve percent (12%) of the revenue derived pursuant

to this paragraph shall be apportioned monthly to the General

Revenue Fund and eighty-eight percent (88%) of such revenue shall be

apportioned to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Thirty percent (30%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee

to be distributed according to subsection H of this section; and

4. Fifty-five percent (55%) less the adjusted gross revenue

derived from one-half (1/2) of the Operational Expenses Revolving

Fund Retention Percentage shall be retained by the organization

licensee.

E. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Forty Million Dollars

($40,000,000.00) per calendar year but not to exceed Fifty Million

Dollars ($50,000,000.00) per calendar year generated from any gaming

conducted pursuant to this act as follows:
l Expenses Revolving

Fund Retention Percentage shall be retained by the organization

licensee.

E. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Forty Million Dollars

($40,000,000.00) per calendar year but not to exceed Fifty Million

Dollars ($50,000,000.00) per calendar year generated from any gaming

conducted pursuant to this act as follows:

1. Twenty percent (20%) shall be remitted to the Tax Commission

on the fifteenth day following the end of the month in which it was

retained. Prior to July 1, 2008, twelve percent (12%) of the

revenue derived pursuant to this paragraph shall be apportioned

monthly to the Oklahoma Higher Learning Access Trust Fund and

eighty-eight percent (88%) of such revenue shall be apportioned to

the Education Reform Revolving Fund. On or after July 1, 2008,

twelve percent (12%) of the revenue derived pursuant to this

paragraph shall be apportioned monthly to the General Revenue Fund

and eighty-eight percent (88%) of such revenue shall be apportioned

to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Twenty-five percent (25%) less the adjusted gross revenue

derived from one-half (1/2) of the Operational Expenses Revolving

Oklahoma Statutes - Title 3A. Amusements and Sports Page 67

Fund Retention Percentage shall be retained by the organization

licensee to be distributed according to subsection H of this

section; and

4. Fifty-five percent (55%) less the adjusted gross revenue

derived from one-half (1/2) of the Operational Expenses Revolving

Fund Retention Percentage shall be retained by the organization

licensee.

F. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Fifty Million Dollars

($50,000,000.00) per calendar year but not to exceed Seventy Million

Dollars ($70,000,000.00) per calendar year generated from any gaming

conducted pursuant to this act as follows:

1. Twenty-five percent (25%) shall be remitted to the Tax

Commission on the fifteenth day following the end of the month in

which it was retained. Prior to July 1, 2008, twelve percent (12%)

of the revenue derived pursuant to this paragraph shall be

apportioned monthly to the Oklahoma Higher Learning Access Trust

Fund and eighty-eight percent (88%) of such revenue shall be

apportioned to the Education Reform Revolving Fund. On or after

July 1, 2008, twelve percent (12%) of the revenue derived pursuant

to this paragraph shall be apportioned monthly to the General

Revenue Fund and eighty-eight percent (88%) of such revenue shall be

apportioned to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Twenty-two and one-half percent (22 1/2%) less the adjusted

gross revenue derived from one-half (1/2) of the Operational

Expenses Revolving Fund Retention Percentage shall be retained by

the organization licensee to be distributed according to subsection

H of this section; and

4. Fifty-two and one-half percent (52 1/2%) less the adjusted

gross revenue derived from one-half (1/2) of the Operational

Expenses Revolving Fund Retention Percentage shall be retained by

the organization licensee.

G. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Seventy Million Dollars

($70,000,000.00) per calendar year generated from any gaming
ifty-two and one-half percent (52 1/2%) less the adjusted

gross revenue derived from one-half (1/2) of the Operational

Expenses Revolving Fund Retention Percentage shall be retained by

the organization licensee.

G. Each organization licensee shall distribute from retained

adjusted gross revenues in excess of Seventy Million Dollars

($70,000,000.00) per calendar year generated from any gaming

conducted pursuant to this act as follows:

1. Thirty percent (30%) shall be remitted to the Tax Commission

on the fifteenth day following the end of the month in which it was

retained. Prior to July 1, 2008, twelve percent (12%) of the

revenue derived pursuant to this paragraph shall be apportioned

monthly to the Oklahoma Higher Learning Access Trust Fund and

eighty-eight percent (88%) of such revenue shall be apportioned to

Oklahoma Statutes - Title 3A. Amusements and Sports Page 68

the Education Reform Revolving Fund. On or after July 1, 2008,

twelve percent (12%) of the revenue derived pursuant to this

paragraph shall be apportioned monthly to the General Revenue Fund

and eighty-eight percent (88%) of such revenue shall be apportioned

to the Education Reform Revolving Fund;

2. No less than one-half of one percent (0.5%) and no more than

three percent (3%) shall be apportioned, according to the

requirements of Section 2 of this act, to the Oklahoma Horse Racing

Commission Operational Expenses Revolving Fund on the fifteenth day

following the end of the month in which the revenue was collected;

3. Twenty percent (20%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee

to be distributed according to subsection H of this section; and

4. Fifty percent (50%) less the adjusted gross revenue derived

from one-half (1/2) of the Operational Expenses Revolving Fund

Retention Percentage shall be retained by the organization licensee.

H. Each organization licensee shall remit, on the fifteenth day

following the end of the month in which they were retained, an

amount equal to nine percent (9%) of the funds generated pursuant to

paragraph 3 of subsections A through G of this section to the

Oklahoma Horse Racing Commission for deposit in the Oklahoma

Breeding Development Fund Special Account pursuant to Section 208.3

of this title, to be distributed to the participating breeds as

provided in paragraphs 1 and 2 of this subsection.

Each organization licensee shall remit to the official

horsemen's organization representing participating horsemen during

the live race meets, on the fifteenth day following the end of the

month in which they were retained, an amount equal to one and five-

tenths percent (1.5%) of the funds generated pursuant to paragraph 3

of subsections A through G of this section on a pro rata basis based

on the distribution of purse funds available to the breeds of horses

participating in the live race meetings with one percent (1%) to be

used for administrative expenses and five-tenths of one percent

(0.5%) to provide funding for a benevolence program at each

racetrack to benefit participating horsemen and their employees.

Such benevolence program shall provide medical benefits or services

to persons associated with the horse racing industry who are in

financial need.

Each organization licensee shall remit to the breed

organizations designated by the official horsemen's representative,

on the fifteenth day following the end of the month in which they

were retained, an amount equal to one percent (1%) of the funds

generated pursuant to paragraph 3 of subsections A through G of this

section on a pro rata basis based on the distribution of purse funds

available to the breeds of horses participating in the live race

Oklahoma Statutes - Title 3A. Amusements and Sports Page 69

meetings for funding to support the breed organizations dedicated to
were retained, an amount equal to one percent (1%) of the funds

generated pursuant to paragraph 3 of subsections A through G of this

section on a pro rata basis based on the distribution of purse funds

available to the breeds of horses participating in the live race

Oklahoma Statutes - Title 3A. Amusements and Sports Page 69

meetings for funding to support the breed organizations dedicated to

the promotion of breeding and racing horses in Oklahoma.

Subject to the provisions of subsection I of this section, the

remainder of the funds generated pursuant to paragraph 3 of

subsections A through G of this section shall be distributed by the

organization licensee as purses for participating horses as follows:

1. For organization licensees that conduct one or more race

meetings dedicated to Thoroughbred racing and one or more race

meetings dedicated to Quarter Horse, Paint and Appaloosa horse

racing, fifty percent (50%) to purses for Thoroughbred races, forty-

five percent (45%) to purses for Quarter Horse races, and five

percent (5%) to purses for Paint and Appaloosa races; and

2. For all other organization licensees, forty-five percent

(45%) to purses for Thoroughbred races, forty-five percent (45%) to

purses for Quarter Horse races and ten percent (10%) to purses for

Paint and Appaloosa horse races.

I. The percentage of purse money generated by an organization

licensee that is designated for deposit to the Oklahoma Breeding

Development Fund Special Account pursuant to subsection H of this

section may be increased by an additional percentage that shall not

exceed thirty-three percent (33%) of the total funds for

participating horsemen upon the written application of the official

horsemen's representative for each of the breeds of horses

participating in a race meeting at the track.

All Oklahoma Breeding Development Fund Special Account monies

generated pursuant to this section shall not be subject to a

reduction pursuant to paragraph 7 of subsection B of Section 208.3

of this title.

J. An organization licensee's annual application for race dates

shall include any existing agreement between the organization

licensee and the official horsemen's representative for each breed

participating in the live racing meeting at that track which sets

forth the thresholds whereby the minimum number of races will

increase or decrease during that calendar year.

K. For purposes of this act a "recipient licensee" means an

organization licensee operating a racetrack location at which an

organization licensee is licensed to conduct a race meeting pursuant

to the provisions of Section 208.2 of this title located in a county

with a population exceeding five hundred thousand (500,000) persons,

according to the most recent Federal Decennial Census, and a

"participating tribe" means a tribe which operates a gaming facility

within a radius of twenty (20) miles from the enclosure of a

recipient licensee pursuant to a compact set forth in Section 281 of

this title. Such compact shall require that a participating tribe

contribute a percentage of its "monthly average take" from

electronic amusement games, electronic bonanza-style bingo games and

electronic instant bingo games (hereinafter referred to collectively

Oklahoma Statutes - Title 3A. Amusements and Sports Page 70

as "electronic covered games") as defined in that tribe's Gaming

Compact as long as the prohibition against fair associations or

organizations licensed pursuant to Section 208.2 of this title

conducting authorized gaming under this act as set forth in

subsection A of Section 262 of this title remains in effect.

Participating tribes shall make contributions in accordance with the

following requirements:

1. Each participating tribe shall calculate its monthly average

take for electronic covered games for each calendar month of

operation of electronic covered games. For purposes of this
ucting authorized gaming under this act as set forth in

subsection A of Section 262 of this title remains in effect.

Participating tribes shall make contributions in accordance with the

following requirements:

1. Each participating tribe shall calculate its monthly average

take for electronic covered games for each calendar month of

operation of electronic covered games. For purposes of this

paragraph, the "monthly average take" shall mean all adjusted gross

revenue from electronic covered games at the tribal gaming

facilities that are located within a radius of twenty (20) miles

from the enclosure of a recipient licensee during the applicable

calendar month, divided by the number of electronic covered games

operated by the tribe at the gaming facility during the applicable

calendar month;

2. Each participating tribe shall calculate its pro rata share

of the payments required by this subsection, based on the number of

electronic covered games in the tribal gaming facilities within the

twenty-mile radius described in paragraph 1 of this subsection,

during the applicable calendar month ("tribal share"). As an

example only, if three (3) tribes participate in this subsection

during a calendar month, and have the respective number of games in

the amount of 500, 1,000, and 1,000, then the payments called for in

paragraph 3 of this subsection would be multiplied by twenty percent

(20%), forty percent (40%) and forty percent (40%) to determine each

tribe's pro rata share; and

3. Each participating tribe shall make the following payments

no later than the fifteenth day following the end of the applicable

calendar month, with the first payment to be due no later than the

fifteenth day following the end of the first month in which a

participating tribe commences gaming operations pursuant to the

compact set out in Section 281 of this title:

a. the tribe shall pay its pro rata share of the product

of 450 multiplied by .05 multiplied by the greater of

Seven Thousand Four Hundred Eight Dollars ($7,408.00)

or the tribe's monthly average take for the applicable

month to the recipient licensee, and

b. the tribe shall pay its pro rata share of the product

of 450 multiplied by .25 multiplied by the tribe's

monthly average take for the applicable month to the

Oklahoma Horse Racing Commission to be used as

directed by purse committees for the following

purposes:

(1) distributed to organization licensees for purses

for participating horses,

Oklahoma Statutes - Title 3A. Amusements and Sports Page 71

(2) paid to the Oklahoma Breeding Development Fund

Special Account. The amount designated for

deposit into the Oklahoma Breeding Development

Fund Special Account shall never be less than

nine percent (9%) of the funds generated nor more

than thirty-three percent (33%) of the total

designated funds for horsemen participating in

any race meeting, and
- Title 3A. Amusements and Sports Page 71

(2) paid to the Oklahoma Breeding Development Fund

Special Account. The amount designated for

deposit into the Oklahoma Breeding Development

Fund Special Account shall never be less than

nine percent (9%) of the funds generated nor more

than thirty-three percent (33%) of the total

designated funds for horsemen participating in

any race meeting, and

(3) paid to the official horsemen's representatives

and to the breeding organizations designated by

the official horsemen's representatives and to

the breeding organizations designated by the

official horsemen's representatives to be used to

pay their administrative expenses and to fund

their benevolence programs. In no event shall

the amount designated for such administrative

expenses exceed one percent (1%) of the funds

generated nor shall the monies designated for

benevolence programs exceed five-tenths of one

percent (0.5%) of the funds generated.

L. The "purse committees" shall be comprised of the official

elected horsemen representatives for each breed as designated in

Section 267 of this title. The total contribution of the

participating tribes made pursuant to subparagraph b of paragraph 3

of subsection K of this section shall be distributed as directed by

the purse committees based on the following formula, to wit: fifty

percent (50%) by the purse committee representing Thoroughbred

horses; forty percent (40%) by the purse committee representing

Quarter Horses; and ten percent (10%) by the purse committee

representing Paint and Appaloosa horses.

The purse committees shall meet at least sixty (60) days prior

to the beginning of a calendar year to provide directions for

placement of the purse funds described in subparagraph b of

paragraph 3 of subsection K of this section with one or more

organization licensees for the succeeding calendar year. In

providing such directions the purse committees shall consider and

attempt to achieve the following preferences in the order set forth

below:

FIRST. Through the use of no more than fifty percent (50%) of

the purse funds available for distribution under this section,

maintaining the purse structures of any organization licensee

operating a racetrack location located in a county with a population

exceeding six hundred thousand (600,000) persons, according to the

most recent federal decennial census, at a level that is competitive

with the purse structures of similarly situated racetracks,

including those in surrounding states, and that will encourage the

Oklahoma Statutes - Title 3A. Amusements and Sports Page 72

participation by horsemen in that organization licensee's race meet

or meets; and

SECOND. Maintaining the purse structures of the organization

licensee closest in geographic proximity to the location where the

purse funds described in subparagraph b of paragraph 3 of subsection

K of this section were generated at a level that is competitive with

the purse structures of similarly situated racetracks, including

those in surrounding states, and that will encourage the

participation by horsemen in that organization licensee's race meet

or meets; and

THIRD. Maintaining the purse structures of the remaining

organization licensees in the state at a level that will encourage

the participation by horsemen in those organization licensees' race

meet or meets.

M. Organization licensees shall keep accurate books and records

of all revenue generated by any gaming conducted pursuant to the

State-Tribal Gaming Act and of the taxes paid pursuant to the

provisions of this section. The Oklahoma Tax Commission or an

authorized representative shall have access at all reasonable times

to such records for the purpose of examining and checking the

records and ascertaining whether the proper amount of taxes is being

paid. The Oklahoma Tax Commission shall require verified reports
to the

State-Tribal Gaming Act and of the taxes paid pursuant to the

provisions of this section. The Oklahoma Tax Commission or an

authorized representative shall have access at all reasonable times

to such records for the purpose of examining and checking the

records and ascertaining whether the proper amount of taxes is being

paid. The Oklahoma Tax Commission shall require verified reports

and a statement of the total of all revenue generated by any gaming

conducted by an organization licensee pursuant to the provisions of

the State-Tribal Gaming Act.

N. The Oklahoma Horse Racing Commission is hereby authorized to

provide repayment of amounts collected pursuant to paragraph 2 of

subsections A through G of this section on a pro rata basis to be

paid from the Oklahoma Horse Racing Commission Operational Expenses

Revolving Fund.