Oregon Racing Commission Penalties Cap at $25,000

• The Oregon Racing Commission plans to adopt new civil-penalty rules covering unauthorized animal-racing wagers Nov. 19, after comments close Nov. 18.
• The revised draft strikes the original $1,000-$5,000, $5,001-$15,000 and $15,001-$25,000 tiers, leaving only a $25,000 ceiling per violation.
• Each day a violation continues may count as a separate violation, so the $25,000 ceiling could apply daily.
• A penalty left unpaid 90 days past its due date goes to collections and can be recorded as a county lien.

GRESHAM, Ore. – Oregon illegal wagering civil penalties would top out at $25,000 per violation under rules the Oregon Racing Commission plans to adopt Nov. 19. The commission’s revised draft strikes the three fine tiers from its original proposal. Public comment, extended from Oct. 15, closes Nov. 18 at 5 p.m., according to the commission’s Division 135 rulemaking.

The Revised Draft Removes Three Fine Tiers

The commission’s notice of proposed rulemaking, filed Aug. 26 with the Oregon Secretary of State’s Archives Division, set three ranges in OAR 462-135-0020. Minor violations carried $1,000 to $5,000, moderate violations $5,001 to $15,000 and major violations $15,001 to $25,000, with room to go outside a range when aggravating or mitigating facts warranted it.

The revised draft, which the commission posted with corrections highlighted in yellow, strikes those ranges. In their place it says the commission determines each penalty after weighing the factors in OAR 462-135-0050. The text now states a $25,000 ceiling and no minimum for any violation, where the original ranges started minor violations at $1,000.

The factors track Senate Bill 854, now ORS 462.995, the 2025 law that authorized the penalties and set the $25,000 maximum. The Senate passed the bill March 31, 2025, and the House passed it May 12, 2025, according to the enrolled bill.

Both the law and the rule list four factors. They cover whether the person has tried to fix past violations, any earlier violations, the person’s finances, and how immediate and broad the threat to the public good is. The revised draft says the commission considers those at a minimum and may also weigh intent, scope and cooperation.

With the tiers gone, the $25,000 ceiling and that factor list are the only limits on a penalty’s amount stated in the rule.

Each Day Can Count As A Separate Violation

OAR 462-135-0020(3), which the revision leaves unchanged, says “each day a violation continues may constitute a separate violation.” By that arithmetic, 30 days at the $25,000 ceiling would total $750,000, and the draft states no overall limit on a continuing violation.

The enrolled bill sets the $25,000 maximum without addressing days. The daily-violation language appears in the commission’s draft.

Rules Cover Accepting Or Facilitating Race Wagers

The revised scope clause applies the rules to three groups: anyone who violates ORS 462.020(1), the bar on holding a race meet without a commission license, anyone who accepts or facilitates animal-racing wagers without authorization under ORS Chapter 462, and anyone who owes appeal-related costs. The original clause covered anyone who engages in unauthorized wagering activity.

A definition in OAR 462-135-0010 still describes that activity as “accepting, facilitating, promoting, or conducting” a wager on animal racing outside a commission license or other authorization. The revised scope clause uses only the statute’s two verbs, accepts and facilitates. Wagers taken under a license or other authorization fall outside the definition and remain within Oregon’s legal gambling framework.

A Penalty Starts With Written Notice And A Hearing Right

Before imposing a penalty, OAR 462-135-0030 requires the commission to send written notice first. That notice names the violation alleged, states the amount proposed, tells the person a hearing can be requested and gives the deadlines. A requested hearing proceeds as a contested case under ORS Chapter 183. After a hearing or a default, the commission issues a final order setting out its findings, its conclusions and the penalty.

The revision rewrote the hearing sentence to say a contested case will be conducted under that chapter and the rules adopted under it.

A person seeking a lower penalty, or none, files a written request under OAR 462-135-0040 that explains what happened, documents it and describes any fix already made. In deciding, the commission may give weight to whether the person cooperated, corrected the problem, reported it voluntarily or faces financial hardship.

Failed Appeals Can Add Up To $25,000 In Costs

OAR 462-135-0070 lets the commission assess up to $25,000 in costs and attorney fees incurred because of an appeal. The draft names three situations: an appellant who withdraws in the final 21 days before the hearing date, one who skips the hearing without good cause, and an appeal that an administrative law judge finds had no “objectively reasonable basis,” in the rule’s words.

If the costs go unpaid, OAR 462-135-0080 lets the commission turn to the state attorney general, who can sue to recover the award and the legal fees of doing so.

Collections, Liens And The Commission Account

Under OAR 462-135-0090, an account the commission is owed, whether a penalty, costs or attorney fees, turns delinquent once 90 days pass after its due date without payment or an approved payment plan. The commission would then hand the account to the state Department of Revenue or a private collection agency under state contract. Collection fees, interest at up to the ORS 82.101 statutory maximum and any lien-filing costs can be added to the balance.

OAR 462-135-0100 lets the commission file an unpaid penalty, cost award or other debt with the clerk of any Oregon county, where it becomes an enforceable lien under ORS 205.125 and 205.126. Collected penalties go to the General Fund, credited to the Oregon Racing Commission Account under ORS 462.260.

Comments Close Nov. 18, Vote Set For Nov. 19

The notice set a hearing and the original comment deadline for Oct. 15, when the commission’s meeting agenda also listed possible adoption of Division 135. The rulemaking page now says the commission extended the comment period to 5 p.m. Nov. 18 because of several comments on the division, and that it intends to adopt the rules at its regular meeting Nov. 19, which begins at 1:30 p.m.

The corrected language will appear in the final adopted rule filing, which the commission will complete after it approves adoption, according to the rulemaking page.