Texas Racing Commission
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Texas Racing Commission

Structure of Agency

Pari-mutuel & Auditing Department

The mission of the Pari-mutuels Department is to protect the interest of the wagering public and to ensure the collection and distribution of funds as mandated by the Texas Racing Act.

To safeguard the interest of the wagering public and the State, this department tests the computer programs that calculate odds and payoffs on wagers, examines wagering patterns, and regulates mutuel operations at the racetracks, as well as collecting, calculating, and distributing funds for the Accredited Texas-Bred Incentive Program. The completion of these tasks assures the wagering public, the recognized breed organizations, and the State that the correct amount of money is distributed as required by the Texas Racing Act and the Texas Rules of Racing.

The department has pari-mutuel field auditors located at various pari-mutuel tracks throughout the state. The auditors maintain the pari-mutuel module in the Commission's comprehensive regulatory database, conduct compliance inspections, answer questions from the public concerning pari-mutuel wagers and payoffs, and perform numerous audits. The pari-mutuel field auditors are supervised by  the Director of Pari-Mutuels.

Among other things, the department's auditors:

  • Examine, collect, and distribute Accredited Texas Bred Incentive Program funds.
  • Conduct E.D.P. audits of totalisator software.
  • Conduct compliance audits of the commissions withheld from the pari-mutuel handle and the pool payoffs made to the public from the handle.
  • Conduct compliance inspections of racetrack pari-mutuel wagering operations.
  • Audit earned and paid purses by statute and by rule.
  • Audit depository reports filed by each Texas pari-mutuel racetrack.
  • Audit simulcast contracts and commission distributions.
  • Provide wagering data in response to open records requests.
Pari-mutuel Advisory Committee

The Director of Pari-Mutuels chairs the Texas Pari-Mutuel Advisory Committee, which was formed to review the Commission's Rules regarding pari-mutuel pool distribution, pari-mutuel department operations, and totalisator operations. The Committee reports to the Commission’s Rules Committee its recommended revisions to the Rules.

The Committee is also considered a pari-mutuel "think tank", where industry representatives may communicate concerns and frustrations, share experiences, and meet other participants within the pari-mutuel industry. Currently, the Texas Pari-Mutuel Advisory Committee includes the mutuel manager from each Texas pari-mutuel racetrack, the simulcast coordinators representing each simulcasting racetrack, a representative of the Texas Horsemen's Partnership, representatives from each of the recognized state breed organizations, a representative from each of the three totalisator companies operating in Texas, a representative from the Comptroller of Public Accounts, and the Commission's pari-mutuel auditors.

Page updated: 4/15/16