senate Bill S6758

Amended

Authorizes racetracks and off-track betting corporations to offer rebates on pari-mutuel wagers made by bettors and to horse racing patrons

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

  • 19 / Mar / 2012
    • REFERRED TO RACING, GAMING AND WAGERING
  • 08 / May / 2012
    • REPORTED AND COMMITTED TO FINANCE
  • 23 / May / 2012
    • AMEND AND RECOMMIT TO FINANCE
  • 23 / May / 2012
    • PRINT NUMBER 6758A

Summary

Authorizes racetracks and off-track betting corporations to offer rebates on pari-mutuel wagers made by bettors to reward horse racing patrons for their participation at race meetings.

do you support this bill?

Bill Details

Versions:
S6758
S6758A
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add ยง109-a, RWB L

Votes

7
0
7
Aye
0
Nay
3
aye with reservations
0
absent
0
excused
0
abstained
show Racing, Gaming and Wagering committee vote details

Sponsor Memo

BILL NUMBER:S6758

TITLE OF BILL:

An act
to amend the racing, pari-mutuel wagering and breeding law, in relation
to authorizing the payment of rebates on pari-mutuel wagers

PURPOSE:

The purpose of this bill is to clearly authorize in law the ability of
host racetracks, simulcast racetracks, and regional off-track betting
corporations (OTBS) to offer rebate benefits to those racing fans who
attend race meets, preferred customers and to volume bettors. Under
current law, there are no standards for establishing such rebate
programs.

This bill establishes a statutory framework to create such rebate
programs and guidelines for approval of such rebate programs by the
Racing & wagering Board (Board). Adopting this bill should provide
applicants with parameters in which to draft applications to the
Board for approval to establish systemic long range rebate programs
to encourage attendance at race tracks or other gaming facilities.

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 who attend host race
track meets or bet on such events. 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 Board must annually approve of the rebate programs. This bill
gives reasonable latitude to the Board to define the term "rebate"
and approve of rebate programs so that rebate program applications
and approval of such programs can quickly change to reflect the
betting practices within the racing industry.

There are several conditions that the applicant must abide by when
administering any rebate programs to protect consumer interests. 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.

EXISTING LAW:

There is currently no statutory framework to assist a
racetrack or OTB to develop and implement long term rebate programs
that can be approved by the Board.

JUSTIFICATION:

Many off-shore betting houses are offering rebate programs to
encourage patronage of their racing events. Off shore betting houses
have the freedom to establish long term betting rebate programs to
secure and retain a loyal customer base. New York Producers are not
able to establish year long betting rebate programs that can help
them secure and retain a loyal customer base. These out-of-state
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. Further,
while the Board has authorized some rebate programs, they tend to be
single event programs and not the long term programs that are needed
to maintain a strong fan base.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

The January next succeeding the date it shall have become law.

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

                                  6758

                            I N  S E N A T E

                             March 19, 2012
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
  relation to authorizing the payment of rebates on pari-mutuel wagers

  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, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE CONDUCT-
ING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES RUN  AT  A  RACETRACK
OPERATED  BY  SUCH  ASSOCIATION,  CORPORATION OR FRANCHISED CORPORATION,
WHICH IS PAID TO HOLDERS  OF  PARI-MUTUEL  WAGERING  TICKETS  AND  WHICH
REDUCES  THE  AMOUNT OTHERWISE PAYABLE TO SUCH ASSOCIATION, CORPORATION,
FRANCHISED CORPORATION OR RACING FRANCHISEE. SUCH TERM MAY INCLUDE,  BUT
NOT BE LIMITED TO, REFUNDS TO HOLDERS OF PARI-MUTUEL WAGERING TICKETS OF
ANY PORTION OR PERCENTAGE OF THE FULL FACE VALUE OF A PARI-MUTUEL WAGER,
INCREASING  THE PAYOFF OF, PAYING A BONUS ON A WINNING PARI-MUTUEL TICK-
ET, AWARDS OF MERCHANDISE, SERVICES SUCH AS MEALS,  PARKING,  ADMISSION,
SEATING  AND PROGRAMS, FREE OR REDUCED COST PARI-MUTUEL WAGERS AND MONE-
TARY AWARDS, OR ANY OTHER BENEFIT THAT THE  STATE  RACING  AND  WAGERING
BOARD DEEMS APPROPRIATE TO REWARD HORSE RACING PATRONS FOR THEIR PARTIC-
IPATION  AT  RACE MEETINGS. SUCH TERM MAY BE FURTHER DELINEATED IN RULES
PROMULGATED BY THE STATE RACING AND WAGERING BOARD.
  2. THE STATE RACING AND WAGERING BOARD, UPON APPLICATION OF AN ASSOCI-
ATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE CONDUCT-
ING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES RUN  AT  A  RACETRACK
OPERATED BY SUCH ASSOCIATION, CORPORATION OR FRANCHISED CORPORATION, MAY
ANNUALLY  APPROVE  THE  PAYMENT  OF  REBATES BY SUCH ASSOCIATION, CORPO-
RATION, FRANCHISED CORPORATION OR  RACING  FRANCHISEE,  SUBJECT  TO  THE
FOLLOWING REQUIREMENTS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14792-01-2

S. 6758                             2

  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
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) ATTENDANCE AT ONE OR  MORE  RACE  MEETINGS,
(II)  THE  AMOUNT  WAGERED BY A BETTOR, OR (III) HOW FREQUENTLY A BETTOR
WAGERS;
  C. THE ASSOCIATION,  CORPORATION,  FRANCHISED  CORPORATION  OR  RACING
FRANCHISEE  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,  CORPORATION,  FRANCHISED  CORPO-
RATION  OR  RACING  FRANCHISEE  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, CORPORATION, FRANCHISED CORPO-
RATION OR RACING FRANCHISEE CONDUCTING PARI-MUTUEL  BETTING  AT  A  RACE
MEETING ON RACES RUN AT A RACETRACK OPERATED BY SUCH ASSOCIATION, CORPO-
RATION,  FRANCHISED  CORPORATION  OR  RACING  FRANCHISEE, ANOTHER RACING
ASSOCIATION, CORPORATION, FRANCHISED CORPORATION  OR  RACING  FRANCHISEE
MAY PROVIDE BETTORS WITH REBATES ON WAGERS ON RACES RUN AT THE RACETRACK
OPERATED BY SUCH APPROVING ASSOCIATION, CORPORATION AT A RACETRACK OPER-
ATED  BY SUCH ASSOCIATION, CORPORATION, FRANCHISED CORPORATION OR RACING
FRANCHISEE. ALL SUCH REBATES SHALL  BE  SUBJECT  TO  THE  PROVISIONS  OF
SUBDIVISIONS ONE AND TWO OF THIS SECTION.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law, provided  that  effec-
tive  immediately  any  rules, regulations and applications necessary to
implement the provisions of this act on its effective date  are  author-
ized to be completed on or before such date.

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.