senate Bill S3564A

Provides for payments to licensed harness tracks by regional off-track betting corporations

download pdf

Sponsor

Bill Status


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

actions

  • 25 / Feb / 2011
    • REFERRED TO RACING, GAMING AND WAGERING
  • 04 / Jan / 2012
    • REFERRED TO RACING, GAMING AND WAGERING
  • 19 / Jan / 2012
    • AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
  • 19 / Jan / 2012
    • PRINT NUMBER 3564A

Summary

Provides for payments to licensed harness tracks by regional off-track betting corporations.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A3647A
Versions:
S3564
S3564A
Legislative Cycle:
2011-2012
Current Committee:
Senate Racing, Gaming And Wagering
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Amd ยงยง1016 & 1017, RWB L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S2595, A6916
2007-2008: A3830

Sponsor Memo

BILL NUMBER:S3564A

TITLE OF BILL:
An act
to amend the racing, pari-mutuel wagering and breeding law, in relation
to payments by off-track betting corporations to regional licensed
harness tracks

PURPOSE OR GENERAL IDEA OF BILL:
This bill revises the hold harmless provisions that OTBs provide to
harness tracks for the privilege of broadcasting additional nighttime
thoroughbred events at OTB parlors. This is being done because most
harness tracks now have video Lottery facilities which are earning
harness tracks substantial profits. Additional money retained by OTBs
by this measure is to be transferred to local governments to support
their operations.

SUMMARY OF SPECIFIC PROVISIONS:
Sections 1 and 2: Amend the Racing & Wagering Law section 1016 to
reduce the "dark day" (the day when NYRA is not conducting a race
meet) payment obligations applicable to off-track betting
corporations (OTBs) from 1 1/2 percent of total daily pools on
out-of-state thoroughbred races to 3/4 of 1 percent of such pools.
In addition, it eliminates the requirement that a regional licensed
harness track itself not display simulcasts of, or accept wagering
upon, such out-of-state thoroughbred races in order to be eligible to
receive, or share in the receipt of such payments from its regional
OTB. The amended payment obligations would only apply during the
first 120 days in each calendar year.

Section 3: Amends Racing & Wagering Law section 1017 to clarify that
maintenance of effort payments by regional OTBs to the licensed
harness tracks in their regions for calendar year 2009 are to be
adjusted for any reduction in the number of racing programs conducted
by any such track in that calendar year below the number of racing
programs conducted by that track during the base year 2002. This
section would also terminate such maintenance of effort obligations
for calendar years subsequent to 2010. It also reduces the additional
payment obligations of regional OTBs with respect to aggregate annual
statewide handle on nighttime thoroughbred simulcast races during a
phase-out period prior to full elimination thereof at the conclusion
of the phase-out period.

JUSTIFICATION:
Chapter 62 of the Laws of 2003 amended the Racing & wagering Law on
the acceptance of wagering upon and the display of simulcasts of
races run at out-of-state thoroughbred tracks. A maintenance of
effort obligation
was imposed on OTBs, measured by the level of commissions received by
regional harness tracks in 2002 as derived from OTB wagering on
out-of-state harness races conducted after 6 PM. The 2003 amendments
also required OTBs to make supplemental payments to the harness
industry to the extent that aggregate statewide handle on nighttime
thoroughbred races exceeded $100 million.


Since the maintenance of effort and additional payment obligations
were imposed 3 years ago, the net effect has been to reduce the
revenue retained by OTBs which could have then been transferred to
local governments. Despite the expanded wagering and simulcasting
authorizations enacted in 2003, the incremental revenue increases
from elimination of the nighttime thoroughbred simulcasting wagering
restrictions have proven to be insufficient to replace the revenue
transferred to the harness racing industry to hold them harmless for
the OTB authorization to broadcast nighttime thoroughbred racing.

Since, nearly all harness tracks are operating video lottery games,
this has helped to increase revenue for the harness tracks and purses.

However, requiring OTBs to continue the maintenance of effort and
other payments are placing inequitable burdens on the regional OTB
system.
This bill would address the unintended inequities instituted in the
2003 law and enable OTBs to retain revenue which can be transferred
to local governments.

LEGISLATIVE HISTORY:
2010: A.6916/S.2595 - Held in Racing, Gaming, and Wagering.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediate.

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

                                 3564--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  payments  by  off-track betting corporations to regional
  licensed harness tracks

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

  Section  1. Clause (E) of subparagraph 5 of paragraph b of subdivision
1 of section 1016 of the racing, pari-mutuel wagering and breeding  law,
as  amended  by  chapter  18  of the laws of 2008, is amended to read as
follows:
  (E) [On] DURING THE FIRST ONE HUNDRED TWENTY days IN ANY CALENDAR YEAR
when a franchised corporation is not conducting a race meeting [and when
a licensed harness track is neither accepting wagers nor displaying  the
signal  from  an  in-state thoroughbred corporation or association or an
out-of-state thoroughbred track]:
  (i) [Such] A licensed regional harness track shall receive in lieu  of
any  other  payments  on  wagers  placed at off-track betting facilities
outside the special betting district on races conducted by  an  in-state
thoroughbred racing corporation, two and eight-tenths percent on regular
and  multiple  bets  during  a  regional meeting and one and nine-tenths
percent of such bets if there is no regional meeting and four and eight-
tenths percent on exotic bets on days on which there is a regional meet-
ing and three and four-tenths percent  of  such  bets  if  there  is  no
regional meeting.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05796-02-1

S. 3564--A                          2

  (ii)  [Such]  A licensed regional harness track shall receive [one and
one-half] THREE-QUARTERS OF ONE per centum on total regional  handle  on
races conducted at out-of-state or out-of-country thoroughbred tracks.
  (iii)  In  those  regions  in  which  there  is more than one licensed
regional harness track, [if no track is accepting wagers  or  displaying
the  live  simulcast  signal from the out-of-state track,] the total sum
shall be divided among the tracks in proportion to the ratio the  wagers
placed on races conducted by each track bears to the corporation's total
in-region harness handle. [If one or more tracks are accepting wagers or
displaying  the live simulcast signal, the total amount shall be divided
among those tracks not accepting  wagers  or  displaying  the  simulcast
signal for an out-of-state track or in-state thoroughbred corporation or
association.]
  S  2.  Clause (F) of subparagraph 6 of paragraph b of subdivision 1 of
section 1016 of the racing, pari-mutuel wagering and  breeding  law,  as
amended  by  chapter  18  of  the  laws  of  2008, is amended to read as
follows:
  (F) [On] DURING THE FIRST ONE HUNDRED TWENTY days IN ANY CALENDAR YEAR
when a franchised corporation is not conducting a race meeting [and when
a licensed harness track is neither accepting wagers nor displaying  the
signal  from  an  in-state thoroughbred corporation or association or an
out-of-state thoroughbred track]:
  (i) [Such] A licensed regional harness track shall receive in lieu  of
any  other  payments  on  wagers  placed at off-track betting facilities
outside the special betting district on races conducted by  an  in-state
thoroughbred racing corporation, two and eight-tenths percent on regular
and  multiple  bets  during  a  regional meeting and one and nine-tenths
percent of such bets if there is no regional meeting and four and eight-
tenths percent on exotic bets on days on which there is a regional meet-
ing and three and four-tenths percent  of  such  bets  if  there  is  no
regional meeting.
  (ii)  [Such]  A licensed regional harness track shall receive [one and
one-half] THREE-QUARTERS OF ONE per centum on total regional  handle  on
races conducted at out-of-state or out-of-country thoroughbred tracks.
  (iii)  In  those  regions  in  which  there  is more than one licensed
regional harness track, [if no track is accepting wagers  or  displaying
the  live  simulcast  signal from the out-of-state track,] the total sum
shall be divided among the tracks in proportion to the ratio the  wagers
placed on races conducted by each track bears to the corporation's total
in-region harness handle. [If one or more tracks are accepting wagers or
displaying  the live simulcast signal, the total amount shall be divided
among those tracks not accepting  wagers  or  displaying  the  simulcast
signal for an out-of-state track or in-state thoroughbred corporation.]
  S 3. Subdivision 2 of section 1017 of the racing, pari-mutuel wagering
and  breeding  law,  as  amended  by  chapter 18 of the laws of 2008, is
amended to read as follows:
  2. a. Maintenance of effort. Any off-track betting  corporation  which
engages in accepting wagers on the simulcasts of thoroughbred races from
out-of-state  or  out-of-country  as  permitted under subdivision one of
this section shall submit to the board, for its approval, a schedule  of
payments  to be made in any year or portion thereof, that such off-track
corporation engages in nighttime thoroughbred simulcasting. In order  to
be approved by the board, the payment schedule shall be identical to the
actual  payments and distributions of such payments to tracks and purses
made by such off-track corporation pursuant to the provisions of section
one thousand fifteen of this article during the year two  thousand  two,

S. 3564--A                          3

as  derived from out-of-state harness races displayed after 6:00 P.M. If
approved by the board, such scheduled payments shall be made from reven-
ues derived from any simulcasting conducted pursuant to this section and
section  one  thousand  fifteen  of  this article.   NOTWITHSTANDING ANY
INCONSISTENT PROVISION OF THIS PARAGRAPH: (I) FOR PURPOSES OF  CALCULAT-
ING THE PAYMENTS TO BE MADE PURSUANT TO THIS PARAGRAPH FOR CALENDAR YEAR
TWO  THOUSAND  TWELVE,  THE  AMOUNT  OTHERWISE  PAYABLE,  IF  ANY, BY AN
OFF-TRACK BETTING CORPORATION TO  A  REGIONAL  HARNESS  TRACK  SHALL  BE
REDUCED  IN PROPORTION TO THE REDUCTION, IF ANY, IN THE NUMBER OF RACING
PROGRAMS CONDUCTED BY THE REGIONAL HARNESS  TRACK  DURING  TWO  THOUSAND
TWELVE  COMPARED  WITH  THE  NUMBER OF RACING PROGRAMS CONDUCTED BY SUCH
TRACK DURING THE TWO THOUSAND FOUR BASE CALENDAR YEAR; AND (II) NO  OFF-
TRACK  BETTING  CORPORATION  SHALL  HAVE  ANY FURTHER PAYMENT OBLIGATION
PURSUANT TO THIS PARAGRAPH WITH RESPECT TO CALENDAR YEARS COMMENCING  ON
OR AFTER JANUARY FIRST, TWO THOUSAND THIRTEEN.
  b.  Additional payments. During each calendar year, to the extent, and
at such time in the event,  that  aggregate  statewide  wagering  handle
after  7Labor P.M. on out-of-state and out-of-country thoroughbred races
exceeds one hundred million dollars, each off-track betting  corporation
conducting  such simulcasting shall pay to its regional harness track or
tracks, an amount equal to [two percent] THE FOLLOWING PERCENTAGE of its
proportionate share of such excess handle: FOR  CALENDAR  YEARS  THROUGH
TWO  THOUSAND  TWELVE, TWO PERCENT; FOR CALENDAR YEAR TWO THOUSAND THIR-
TEEN, ONE AND ONE-HALF PERCENT; FOR CALENDAR YEAR TWO THOUSAND FOURTEEN,
ONE PERCENT; AND FOR CALENDAR YEAR TWO THOUSAND FIFTEEN, ONE-HALF OF ONE
PERCENT. THERE SHALL BE NO FURTHER ADDITIONAL PAYMENT OBLIGATION  PURSU-
ANT  TO THIS PARAGRAPH FOR CALENDAR YEARS COMMENCING ON OR AFTER JANUARY
FIRST, TWO THOUSAND FIFTEEN.  In any region where there are two or  more
regional  harness  tracks,  such  [two  percent] PAYMENT AMOUNT shall be
divided between or among the tracks in a proportion equal to the propor-
tion of handle on live harness races conducted at such tracks during the
preceding calendar year. Fifty percent of the sum received by each track
pursuant to this paragraph shall  be  used  exclusively  for  increasing
purses, stakes and prizes at that regional harness track.
  S 4. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.