(a)

1. (1) Summary. Instant Double is a method of pari-mutuel wagering which requires selection of one (1) or more of the first three (3) finishers for each of two (2) races selected from a historical library of previously run races that are replayed from a central video server according to the following procedures:

   1. (A) (The first race from the historical library is selected at random before the player enters any selection;
   2. (B) The player may examine one (1) or more charts including past performance information showing the relative merits of the horses as they actually were on the day of the first race;
   3. (C) After the player’s selections are registered, the identity of the first race is revealed, a video segment of the race finish is shown, and the actual official results are displayed;
   4. (D)

(i) A player qualifies to play the bonus game by matching some or all of the first three (3) finishers of the first race in one (1) of several different ways.

1. (ii) See ways to qualify for bonus game;

   1. (E)

      1. (i) In the bonus game, the player’s selections are matched with a second race, the bonus race, selected from the historical library.
      2. (ii) Any winnings may be collected instantly; and
   2. (F) The results of the bonus game are displayed as a pattern of symbols for easy identification.

2. (2) Wager amounts.

   1. (A) Acceptable wagering units shall be no lower than “5¢ Per Play” ($0.05) and no higher than “$20 Per Play” ($20.00).
   2. (B) The franchise holder shall designate a maximum number of unit bets per wager, no higher than ten (10).
   3. (C) For players who purchase the maximum number of unit bets in one (1) wager, the highest value pool shall be augmented by the maximum bet jackpot pool, if available.

3. (3) Pool split. After the applicable takeout as approved by the Arkansas Racing Commission has been deducted from the wager, the remaining amount shall be apportioned among several separate pools which have been carried over from previous races played by all players:

   1. (A) The remaining amount after takeout of the bet amount shall be apportioned among a pool for each of several ways to win, the maximum bet jackpot pool if available, and to the seed pool, depending on its current amount;
   2. (B) The takeout rate and allocation to each pool may be different for each of the bet amounts from one to the maximum number of bet units.

4. (4) Ways to qualify for bonus game. Some or all of the following ways to qualify for the bonus game may be included, or other similar ways may be declared with approval of the commission:

   1. (A) 3 Exact Order. The player’s selections correctly match the first three (3) finishers of the first race in exact order;
   2. (B) 3 Any Order. The player’s selections correctly match the first three (3) finishers of the first race in any order;
   3. (C) Top 2 Exact Order. The player’s top two (2) selections correctly match the first two (2) finishers of the first race in exact order;
   4. (D) Top Pick Wins Race. The player’s top selection correctly matches the first (winning) finisher of the first race;
   5. (E) Any 2 of 3. The player’s selections correctly match any two (2) of the first three (3) finishers of the first race in any order; and
   6. (F) In the Money. Any one (1) of the player’s three (3) selections correctly matches the first, second, or third finisher of the first race.

5. (5) Ways to win the bonus game. A wager may qualify to win the bonus game using the following procedure:

   1. (A) The bonus race shall be selected using various designated permutations of the player’s selections in a manner set by the franchise holder and reported to the commission;

   2. (B) The franchise holder may elect to associate each of the several separate pools with a group of two (2) or more of these ways to win so that either:

      1. (i) Each such way to win shall be an equivalent way to win that pool; or
      2. (ii) One (1) such way to win shall be paid a designated multiple of the payment calculated for another way to win;
   3. (C) One (1) or more of the ways to win may be designated to participate in the maximum bet jackpot pool, only for those players who purchase the maximum number of unit bets in one (1) wager; and

   4. (D) Some or all of the following ways to win may be included, or other similar ways may be declared with approval of the commission:

      1. (i) 3 Exact Order. The player’s selections correctly match the first three (3) finishers of the bonus race in exact order;
      2. (ii) 3 Any Order. The player’s selections correctly match the first three (3) finishers of the bonus race in any order;
      3. (iii) Third-Second-First. The player’s selections match the first three (3) finishers of the bonus race in reverse order;
      4. (iv) Top 2 Exact Order. The player’s top two (2) selections correctly match the first two (2) finishers of the bonus race in exact order, and the player’s third selection is ignored;
      5. (v) Top Pick Wins Race. The player’s top selection correctly matches the first (winning) finisher of the bonus race, and the player’s second and third selections are ignored;
      6. (vi) Top 2 Exact Order Only. The player’s top two (2) selections correctly match the first two (2) finishers of the bonus race in exact order, but the player’s third selection matches nothing;
      7. (vii) Top Pick Wins Race Only. The player’s top selection correctly matches the first (winning) finisher of the bonus race, but the player’s second and third selections match nothing; and
      8. (viii) 3 Any Order Consolation. The player’s selections fail to match any other way to win in the bonus race, but do correctly match the first three (3) finishers of the first race in any order.

6. (6) Payment calculation.

   1. (A) The winning price for a pool shall be calculated as follows:

      1. (i) The entire amount in the pool after takeout shall be divided by the maximum number of unit bets, then;
      2. (ii) If there are other ways to win this pool that specify a multiple, the result shall be further divided by the largest multiple, then;
      3. (iii) The result shall be rounded down if necessary for price round-off (breakage), then;
      4. (iv) The result shall be raised if necessary to the minimum payoff amount, then;
      5. (v) The result shall be multiplied by the actual number of unit bets wagered, then;
      6. (vi) If the way to win this pool specifies a multiple, the result shall be further increased by that multiple; and
      7. (vii) Only for players who purchase the maximum number of unit bets in one (1) wager, if this way to win has been designated to be paid the maximum bet jackpot pool, then that amount shall be added to the winning price, rounded down if necessary for price round-off (breakage).
   2. (B) When a wager qualifies for more than one (1) way to win, only the largest single amount qualified for shall be paid.
   3. (C) Each way to win has a minimum payoff amount for winning wagers, which shall be posted.
   4. (D) In the case of a minus pool, the minimum payoff amount shall not be less than the amount of one (1) unit bet wagered.
   5. (E) If two (2) players qualify to win the same pool within a short time, the first winner shall be paid an amount calculated from the current pool and the second shall be paid an amount calculated from the new pool, which may begin with the minimum payoff amount.
7. (7) Dead heat. A race that has a dead heat for first, second, or third shall not be used for Instant Double wagering.

8. (8) Coupled entries, mutuel fields.

   1. (A) A race involving coupled entries or mutuel fields shall not be used for Instant Double wagering if there are two (2) or more betting interests live for a single horse number.

   2. (B)

      1. (i) The one (1) remaining live betting interest of a coupled entry or mutuel field shall be represented by its horse number without a letter.
      2. (ii) For example, horse number “1” represents either horse “1” or “1A”.

9. (9) Seed pool.

   1. (A) To cover the cases when one (1) of the minimum payoff amounts is paid, the seed pool is accumulated from a designated percent of wagers.
   2. (B) Each time the application of the minimum payoff results in a payoff amount in excess of the actual amount available in the pool, the shortfall shall be deducted from the seed pool.
   3. (C) After a pool is paid, the actual amount of the pool may be seeded from the seed pool to a specified initial amount.
   4. (D) While the seed pool is below a designated threshold amount, the allotments to the other pools are each decreased and the difference shall increase the allotment to the seed pool.

10. (10) Commission approval.

    1. (A) The takeout rate may not exceed seventeen percent (17%).
    2. (B) The method of apportioning wagers to each of the pools shall be set by the franchise holder and reported to the commission.
    3. (C) The method of seeding pools shall be set by the franchise holder and reported to the commission.
    4. (D) The number of pools and specific ways to win, and specific ways to qualify for the bonus game, declared from time to time by the franchise holder from the list set forth above or other similar ways approved by the commission, shall be set by the franchise holder and reported to the commission.
    5. (E) The bonus race selection method shall be approved by the commission.
    6. (F) Should the Instant Double pools be designated for termination or mandatory distribution on a specific date, a method approved by the commission shall be used.
    7. (G) The percents for apportioning the wager among takeout and the various pools will be posted.

(b)

1. (1)

   1. (A) Only wagers that are pari-mutuel and processed through a recognized pari-mutuel totalisator system may be accepted.
   2. (B) Wagers placed in accordance with the Instant Double rules adopted by the commission contemporaneously herewith are pari-mutuel.

2. (2)

   1. (A) Races shall be randomly selected from a historical library of actual races that have previously been run.
   2. (B) Only races that were run at licensed racetracks may be used.
   3. (C) It shall not be necessary that each patron be wagering on the same race.

3. (3)

   1. (A) All wagers, less the applicable takeout, will be placed in pari-mutuel pools as approved by the commission.
   2. (B) The takeout may not exceed seventeen percent (17%).

4. (4)

   1. (A) Minimum payout on winning wagers will be ten cents ($0.10) on the dollar, unless that results in a minus pool, in which event, the minimum payout on winning wagers may be as low as the amount of the wager itself.
   2. (B) The effective breakage will be ten cents ($0.10) on the dollar, except when minimum payouts are less than ten cents ($0.10) on the dollar.
5. (5) The total amount in each pari-mutuel pool shall be posted at all times.
6. (6) Minimum payouts shall be posted at all times.
7. (7) The tax rate will be the same as for simulcasting.

8. (8)

   1. (A) Except as provided in Arkansas Code § 23-110-405(b)(3)(B), no purse and construction fund amounts will be withheld from the wager or included as part of the takeout.
   2. (B) Except as provided in Arkansas Code § 23-110-405(b)(3)(B), no portion of the takeout shall be allocated to the purse and construction fund.

9. (9)

   1. (A) Oaklawn will receive this simulcast product on replayed races from RaceTech, LLC, pursuant to agreements with the racetracks where the races were actually run, and shall relay the product to Southland and ultimately later on to other racetracks.
   2. (B) Southland, and eventually other racetracks, will wager through Oaklawn's pools.
10. (10) Reports and tax payments to the state will be made on a monthly basis.