(a) The select three, four, or five wager is not a parlay and has no connection with or relation to the win, place, and show pools shown on the tote board.
(b) A select three, four, or five ticket is evidence of a binding contract between the holder of the ticket and the association and the ticket constitutes an acceptance of this section. The association may select a distinctive name for the select three, four, or five, with the prior approval of the executive secretary.
(c) The select three, four, or five pari-mutuel pool consists of amounts contributed for a selection to win only on each of three, four, or five races designated by the association with the approval of the executive secretary. Each person purchasing a select three, four, or five ticket shall designate the winning animal in each of the races comprising the select three, four, or five.
(d) A coupled entry or mutuel field in a race that is part of the select three, four, or five shall race as a single betting interest for the purpose of the select three, four, or five pari-mutuel pool calculations and payoffs to the public. If any part of a coupled entry or mutuel field is a starter in a race, the entry or field selection remains as the designated selection to win in that race for the select three, four, or five calculation, and the selection may not be deemed a scratch.
(e) The select three, four, or five pari-mutuel pool may be a carryover pool or a non-carryover pool. The association, with prior approval of the executive secretary, will decide if the select three, four, or five pari-mutuel pool will be offered as a carryover pool or a non-carryover pool.
(f) A non-carryover select three, four, or five pari-mutuel pool shall be distributed in accordance with this subsection. One hundred percent of the net amount in the pari-mutuel pool subject to distribution among winning ticket holders shall be distributed among the holders of pari-mutuel tickets which:
  (1) Correctly designate the official winner in each of the races comprising the select three, four, or five.
  (2) If no pari-mutuel ticket is sold combining the winners of all of the races comprising the select three, four, or five, 100% of the net amount in the pari-mutuel pool shall be distributed among the holders of pari-mutuel tickets which include the winners of the next highest number of winners of the races in the select three, four, or five.
  (3) If no pari-mutuel ticket is sold that would require distribution of the select three, four, or five pool under paragraphs (1) or (2) of this subsection, the association shall carry over all money wagered in the select three, four, or five pool to the next consecutive select three, four, or five pool.
  (4) If the final day of a race meeting is canceled or the select three, four, or five pool has not been distributed, the pool shall be escrowed by the association, and the pool plus all accrued interest shall be carried over and added to the select three, four, or five pari-mutuel pool in the following race meeting on a date and performance designated by the executive secretary.
  (5) If one or two of the races comprising a select three is canceled, two or three of the races comprising a select four are canceled, or three or four of the races comprising a select five are canceled, the net amount of the pari-mutuel pool shall be distributed as provided in paragraph (2) of this subsection.
(g) A carryover select three, four, or five pari-mutuel pool shall be distributed in accordance with this subsection. The net pool in the select three, four, or five pool is divided into a major pool and a minor pool. The association shall designate the major pool to consist of 75% of the net amount wagered on the select three, four, or five pool. The remaining 25% constitutes the minor pool.
  (1) The major pool shall be distributed among holders of select three, four, or five tickets, which correctly designate the winner in each of the races comprising the select three, four, or five.
  (2) Except as otherwise provided by this section, the minor pool shall be distributed to those ticket holders who failed to correctly designate the winner in each of the races comprising the select three, four, or five, but who correctly selected the winners in the most, but not all of, the races comprising the select three, four, or five. If there are no such tickets, then the minor pool would be added to the major pool and:
    (A) Paid out to holders of tickets who correctly designated the winner in each of the races comprising the select three, four, or five, but if there are no such tickets,
    (B) Carried forward to the next select three, four or five pool offered.
  (3) If no ticket is sold that designates the winner in each of the races comprising the select three, four, or five, the major pool shall be carried forward to the next select three, four or five pool offered to be paid in the major pool.
  (4) Except as otherwise provided by this section, the major pool shall be supplemented each performance by the amount added to the pool from all previous performances' major pools that have not been won in accordance with paragraph (1) of this subsection.
  (5) If on the last performance of the race meeting or on a designated mandatory payout performance the major pool is not distributable under paragraph (1) of this subsection, the major pool and all money carried forward into that pool from previous performances shall be combined with the minor pool and distributed to the holders of tickets correctly designating the most, but not all, of the races comprising the select three, four, or five.
  (6) Except as otherwise provided by this subsection, if one or more of the races comprising a select three, four, or five is canceled or declared a "no race", the amount contributed to the major pool for that select three, four, or five shall be added to the minor pool for that same select three, four, or five and distributed as an extra amount in the minor pool to the holders of the tickets that designate the most winners in the remaining races. All contributions to the major pool from prior select three, four, or five pools shall remain in the major pool, to be carried forward to the next select three, four, or five pool to be paid in the major pool later on the race card or on the next performance.
(h) If all of the races comprising the select three, four, or five are canceled, the association shall refund the pari-mutuel tickets sold on the select three, four, or five on that day. The association shall carry over the remaining amount in the select three, four, or five pari-mutuel pool to the next consecutive select three, four, or five pari-mutuel pool.
(i) If a selection on a select three, four, or five ticket in one or more of the races is scratched or determined by the stewards or racing judges to be a nonstarter in the race, the actual favorite, as shown by the largest amount wagered in the win pool at the time of the start of the race, will be substituted for the non starting selection for all purposes, including pool calculations and payoffs. If there are two or more favorites in the win pool, both favorites will be substituted for the non-starting selection.
(j) When the condition of the turf course warrants a change of racing surface in any of the races open to a select three, four, or five, and such change has not been made known to the betting public prior to the close of wagering for the first select three, four, or five race, the stewards shall declare each changed race a "no contest" for select three, four, or five purposes and the pool shall be distributed in accordance with subsection (i) of this section. Following the designation of a race as a "no contest," no tickets shall be sold selecting a horse in such "no contest" race.
(k) In the event of a dead heat for win between two or more animals:
  (1) in a select three, all the animals in the dead heat for win shall be considered as winning animals in the race for the purpose of calculating the major or minor pools and the affected pool is calculated:
    (A) As a profit split to those whose selections finished first in each of the three contests; but if there are no such wagers, then
    (B) As a single price pool to those who selected the first place finisher in any two of the three contests; but if there are no such wagers, then
    (C) As a single price pool to those who selected the first place finisher in any one of the three contests; but if there were no such wagers, then in accordance with subsection (f) of this section.
  (2) in a select four or five race, all the animals in the dead heat for win shall be considered as winning animals in the race for the purpose of calculating the major or minor pools and the affected pool is calculated as a win pool.
(l) A pari-mutuel ticket for the select three, four, or five pool may not be sold, exchanged, or canceled after the time wagering closes in the first of the races comprising the select three, four, or five, except for refunds on select three, four, or five tickets as required by subsection (h) of this section. A person may not disclose the number of tickets sold in the select three, four, or five pool or the number or amount of tickets selecting winners of select three, four, or five races until the stewards or racing judges have determined the last race comprising the select three, four, or five to be official.

Source Note: The provisions of this §321.313 adopted to be effective November 6, 2002, 27 TexReg 10379; amended to be effective October 3, 2005, 30 TexReg 6264; amended to be effective July 16, 2007, 32 TexReg 4387; amended to be effective November 20, 2019, 44 TexReg 7047