senate Bill S3563A

Relates to rebates and free passes, cards, or badges to racetracks

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 25 / Feb / 2011
    • REFERRED TO RACING, GAMING AND WAGERING
  • 04 / Jan / 2012
    • REFERRED TO RACING, GAMING AND WAGERING
  • 18 / Jan / 2012
    • AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
  • 18 / Jan / 2012
    • PRINT NUMBER 3563A

Summary

Relates to rebates on pari-mutuel wagers at racetracks.

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Bill Details

Versions:
S3563
S3563A
Legislative Cycle:
2011-2012
Current Committee:
Senate Racing, Gaming And Wagering
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add ยง113, RWB L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S3286A
2007-2008: S577A

Sponsor Memo

BILL NUMBER:S3563A

TITLE OF BILL:
An act
to amend the racing, pari-mutuel wagering and breeding law, in relation
to rebates and free passes

PURPOSE:
The purpose of this bill is to stimulate attendance and handle at
racing facilities and off track betting facilities throughout New
York and clearly authorize in the law the ability of host racetracks,
simulcast racetracks, and regional off-track betting corporations
(OTBs) to offer rebate benefits to preferred customers and to volume
bettors. Under current law. there are no standards for establishing
such rebate programs. This bill creates a statutory framework in
which to establish such rebate programs while simultaneously
expanding the number of persons that are qualified to obtain a free
pass, card or badge to enter a race track to include the general
public so that race tracks can implement promotional campaigns to
increase attendance at race tracks.

SUMMARY OF PROVISIONS:
Section 1: Adds Racing & Wagering Law section 113 to clearly establish
in the law the ability of host racetracks and OTBs to establish
rebate programs for new or preferred customers. The definition of a
rebate is a reduction in the takeout percentage, adding a bonus on
winnings obtained, or awards of merchandise or services for certain
previously designated customers. The Racing & Wagering Board must
annually approve of the rebate programs.

There are conditions to approving rebate programs. The conditions are
that: a disclosure of benefits of past rebate programs is required,
rebates are granted solely on the amount wagered or the frequency of
betting, accurate record keeping is maintained on rebate program
disbursements, and the rebate programs are in the best interests of
racing.

Section 2: Effective date.

EXISTING LAW:
There is currently no statutory framework to assist a racetrack or OTB
to develop and implement a rebate program. Furthermore, under current
law, only a select group of public officers and employees engaged in
the regulation of racing events and employees of the racing industry
that are conducting race meets are allowed to be awarded free passes,
cards or badges to enter a horse race track.

JUSTIFICATION:
Certain off-shore and out of state betting houses are offering rebate
programs for their racing events. These rebate programs may be One
reason why increases in New York State betting handle has been
depressed. This bill merely authorizes New York racetrack operators
and OTBs to offer their patrons the same types of rebate programs
that are being offered elsewhere.


Restriction of free passes is an outdated law in need of revision.
Under current law, horse owners may obtain free passes, however
members of the horse owner's family are precluded from receiving such
passes. In addition, attendance at horse racing events has generally
been in decline for the past thirty years. This measure will allow
horse race track operators to issue more free passes to promote
attendance of individuals at live horse racing events. Allowing the
issuance of more free passes will not only increase attendance and
the excitement of those horse racing events, it may encourage an
increase in betting handle at such racing facilities and the
patronage of restaurants located at such tracks.

LEGISLATIVE HISTORY:
S.3286A of 2009/2010 Held in Senate Finance Committee
S.6925 of 2005/2006

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3563--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 25, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing  -- recommitted to the Committee on Racing, Gaming and Wagering in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
  relation to rebates and free passes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The  racing,  pari-mutuel  wagering  and  breeding  law  is
amended by adding a new section 113 to read as follows:
  S  113.  REBATES.  1. FOR THE PURPOSES OF THIS SECTION, "REBATE" SHALL
MEAN A PORTION OF PARI-MUTUEL WAGERS, OTHERWISE PAYABLE  TO  AN  ASSOCI-
ATION OR CORPORATION CONDUCTING PARI-MUTUEL BETTING AT A RACE MEETING ON
RACES  RUN  THEREAT,  WHICH  IS  PAID TO HOLDERS OF PARI-MUTUEL WAGERING
TICKETS AND WHICH REDUCES THE AMOUNT OTHERWISE PAYABLE TO  SUCH  ASSOCI-
ATION  OR  CORPORATION.  REBATES  SHALL  INCLUDE, BUT NOT BE LIMITED TO,
REFUNDS TO HOLDERS OF PARI-MUTUEL WAGERING TICKETS  ON  ANY  PORTION  OR
PERCENTAGE OF THE FULL FACE VALUE OF A PARI-MUTUEL WAGER, INCREASING THE
PAYOFF  OF  OR PAYING A BONUS ON A WINNING PARI-MUTUEL TICKET, AWARDS OF
MERCHANDISE, SERVICES SUCH AS MEALS,  PARKING,  ADMISSION,  SEATING  AND
PROGRAMS, FREE OR REDUCED COST PARI-MUTUEL WAGERS, AND MONETARY AWARDS.
  2.  THE  RACING AND WAGERING BOARD, UPON APPLICATION OF AN ASSOCIATION
OR CORPORATION CONDUCTING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES
RUN THEREAT, MAY ANNUALLY APPROVE THE PAYMENT OF REBATES BY SUCH ASSOCI-
ATION OR CORPORATION, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  A. THE APPLICANT FULLY DISCLOSES THE EXTENT  OF  THE  REBATE  PROGRAM.
FULL  DISCLOSURE  SHALL  INCLUDE THE DISCLOSURE OF THE MONETARY VALUE OF
ALL REBATES PAID TO BETTORS DURING THE PREVIOUS CALENDAR YEAR,  AND  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05802-03-1

S. 3563--A                          2

TERMS  AND  CONDITIONS GOVERNING THE AWARD OF REBATES TO BETTORS FOR THE
CALENDAR YEAR TO WHICH THE APPLICATION APPLIES;
  B.  THE  APPLICANT  PROVIDES ASSURANCES THAT THE VALUES OF THE REBATES
ARE DETERMINED SOLELY BY (I) THE AMOUNT WAGERED BY A  BETTOR,  (II)  THE
AMOUNT  PAYABLE  TO  THE  ASSOCIATION  OR CORPORATION ON EACH WAGER, AND
(III) HOW FREQUENTLY A BETTOR WAGERS;
  C. THE ASSOCIATION OR CORPORATION  MAINTAINS  RECORDS  OF  ALL  WAGERS
SUBJECT TO A REBATE, FOR A PERIOD OF NOT LESS THAN THREE YEARS; AND
  D. THE APPLICANT DEMONSTRATES THAT SUCH REBATES ARE IN THE BEST INTER-
ESTS OF HORSE RACING.
  3. REGIONAL OFF-TRACK BETTING CORPORATIONS MAY OFFER REBATES ON WAGERS
MADE ON RACES RUN BY ANY ASSOCIATION OR CORPORATION WHICH OFFERS REBATES
PURSUANT  TO  THIS  SECTION.  SUCH  REBATES  SHALL  BE  SUBJECT  TO  THE
PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION.
  4. UPON THE APPROVAL  OF  AN  ASSOCIATION  OR  CORPORATION  CONDUCTING
PARI-MUTUEL  BETTING  AT  A  RACE  MEETING ON RACES RUN THEREAT, ANOTHER
RACING ASSOCIATION OR CORPORATION MAY PROVIDE BETTORS  WITH  REBATES  ON
WAGERS  ON RACES RUN AT THE RACETRACK OPERATED BY SUCH APPROVING ASSOCI-
ATION  OR  CORPORATION.  ALL  SUCH  REBATES  SHALL  BE  SUBJECT  TO  THE
PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION.
  S 2. This act shall take effect immediately.

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