The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Account.” An account for account wagering with a specific identifiable record of deposits, wagers and withdrawals established by an account holder and managed by the licensed racing entity or secondary pari-mutuel organization.

“Account holder.” An individual who successfully completed an application and for whom the licensed racing entity or secondary pari-mutuel organization has opened an account.

“Advance deposit account wagering system.” A system by which wagers are debited and payouts are credited to an advance deposit account held by a licensed racing entity or secondary pari-mutuel organization on behalf of a person.

“Applicant.” A person who, on his own behalf or on behalf of another, is applying for permission to engage in an act or activity which is regulated under the provisions of this chapter. If the applicant is a person other than an individual, the commission shall determine the associated persons whose qualifications are necessary as a precondition to the licensing of the applicant.

“Backside area.” An area of the racetrack enclosure that is not generally accessible to the public and which includes, but is not limited to, a facility commonly referred to as a barn, paddock enclosure, track kitchen, recreation hall, backside employee quarters and training track and roadways providing access to the area. The term does not include an area of the racetrack enclosure which is generally accessible to the public, including the various buildings commonly referred to as the grandstand or the racing surface and walking ring.

“Breakage.” The odd cents of redistributions to be made on contributions to pari-mutuel pools exceeding a sum equal to the next lowest multiple of 10.

“Clean letter of credit.” A letter of credit which is available to the beneficiary against presentation of only a draft or receipt.

“Commission.” The State Horse Racing Commission.

“Commissioner.” An individual appointed to and sworn in as a member of the commission in accordance with section 9311(b) (relating to State Horse Racing Commission).

“Conviction.” A finding of guilt or a plea of guilty or nolo contendere, whether or not a judgment of sentence has been imposed as determined by the law of the jurisdiction in which the prosecution was held. The term does not include a conviction that has been expunged or overturned or for which an individual has been pardoned or an order of accelerated rehabilitative disposition.

“Electronic wagering.” A method of placing or transmitting a legal wager by an individual in this Commonwealth through telephone, electromechanical, computerized system or any other form of electronic media approved by the commission and accepted by a secondary pari-mutuel organization or a licensed racing entity or the licensed racing entity's approved off-track betting system located in this Commonwealth.

“Evergreen clause.” A term in a letter of credit providing for automatic renewal of the letter of credit.

“Ex parte communication.” An off-the-record communication engaged in or received by a commissioner of the commission regarding the merits of, or any fact in issue relating to, a pending matter before the commission or which may reasonably be expected to come before the commission in a contested on-the-record proceeding. The term shall not include:

“Felony.” An offense under the laws of this Commonwealth or the laws of another jurisdiction, punishable by imprisonment for more than five years.

“Financial interest.” An ownership, property, leasehold or other beneficial interest in an entity. The term shall not include an interest which is held or deemed to be held in any of the following:

“Horse race meeting.” A specified period and dates each year during which a licensed racing entity is authorized to conduct live racing or pari-mutuel wagering as approved by the commission.

“Horse racing.” Standardbred horse racing and thoroughbred horse racing.

“Horsemen's organization.” A trade association which represents the majority of owners and trainers who own and race horses at a racetrack.

“Immediate family.” A spouse, parent, brother, sister or child.

“Irrevocable clean letter of credit.” A clean letter of credit which cannot be canceled or amended unless there is an agreement to cancel or amend among all parties to the letter of credit.

“Land mile.” A unit of distance equal to 1,609.3 meters or 5,280 feet, as measured in a straight line.

“Licensed racing entity.” Any person that has obtained a license to conduct live thoroughbred or harness horse race meetings respectively with pari-mutuel wagering from the commission.

“Licensee.” The holder of a license issued under this chapter.

“Nominal change in ownership.” The sale, pledge, encumbrance, execution of an option agreement or other transfer of less than 5% of the equity securities or other ownership interest of a person whose percentage ownership does not affect the decisions of the licensed racing entity.

“Nonprimary location.” Any facility in which pari-mutuel wagering is conducted by a licensed racing entity under this chapter other than the racetrack where live racing is conducted.

“Ownership interest.” Owning or holding, or being deemed to hold, debt or equity securities or other ownership interest or profit interest.

“Pari-mutuel wagering.” A form of wagering, including manual, electronic, computerized and other forms as approved by the commission, on the outcome of a horse racing event in which all wagers are pooled and held by a licensed racing entity or secondary pari-mutuel organization for distribution of the total amount, less the deductions authorized by law, to holders of winning tickets.

“Person.” Any natural person, corporation, foundation, organization, business trust, estate, limited liability company, license corporation, trust, partnership, limited liability partnership, association or any other form of legal business entity.

“Primary market area of a racetrack.” The land area included in a circle drawn with the racetrack as the center and a radius of 35 land miles.

“Principal.” Any of the following individuals associated with a partnership, trust association, limited liability company or corporation:

“Racetrack.” The physical facility where a licensed racing entity conducts thoroughbred or standardbred horse race meetings respectively with pari-mutuel wagering.

“Racetrack enclosure.” For purposes of this chapter, the term “racetrack enclosure,” with respect to each licensed racing entity, shall be deemed to include at least one primary racetrack location at which horse race meetings authorized to be held by the licensed racing entities are conducted, including the grandstand, frontside and backside facilities and all primary, nonprimary, contiguous and noncontiguous locations of the licensed racing entity which are specifically approved by the commission for conducting the pari-mutuel system of wagering on the results of horse racing held at such meetings or race meetings conducted by another licensed racing entity or transmitted to such locations by simulcasting.

“Racing vendor.” A person who provides goods or services to a licensed racing entity directly related to racing or the racing product, as determined by the commission.

“Secondary market area of a racetrack.” The land area included in a circle drawn with the racetrack as the center and a radius of 50 land miles, not including the primary market area of the racetrack.

“Secondary pari-mutuel organization.” A licensed entity, other than a licensed racing entity, that offers and accepts pari-mutuel wagers. A person or entity that provides to a licensed racing entity hardware, software, equipment, content or services used to manage, conduct, operate or record pari-mutuel wagering activity by or from residents of this Commonwealth shall not be deemed to be a secondary pari-mutuel organization solely by virtue of the provision of the assets or services.

“Simulcast.” Live video and audio transmission of a race and pari-mutuel information for the purpose of pari-mutuel wagering at locations other than the racetrack where the race is run.

“Standardbred horse racing” or “harness racing.” A form of horse racing in which the horses participating are attached “in harness” to a sulky or other similar vehicle, at a specific gait, either a trot or pace.

“Substantial change in ownership.” The sale, pledge, encumbrance, execution of an option agreement or another transfer of 5% or more of the equity securities or other ownership interest of a person whose percentage ownership affects the decisions of the licensed racing entity.

“Thoroughbred horse racing.” The form of horse racing in which each participating horse is mounted by a jockey, is duly registered with The Jockey Club of New York and engages in horse racing on the flat, which may include a steeplechase or hurdle race.

“Totalisator.” A computer system used to pool wagers, record sales, calculate payoffs and display wagering data on a display device that is located at a pari-mutuel facility or nonprimary location.