senate Bill S2433

Amended

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

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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

  • 17 / Jan / 2013
    • REFERRED TO RACING, GAMING AND WAGERING
  • 23 / Apr / 2013
    • REPORTED AND COMMITTED TO FINANCE
  • 02 / May / 2013
    • AMEND AND RECOMMIT TO FINANCE
  • 02 / May / 2013
    • PRINT NUMBER 2433A
  • 18 / Jun / 2013
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 18 / Jun / 2013
    • ORDERED TO THIRD READING CAL.1428
  • 18 / Jun / 2013
    • SUBSTITUTED BY A2329A

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.

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Bill Details

Versions:
S2433
S2433A
Legislative Cycle:
2013-2014
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add ยง109-a, RWB L
Versions Introduced in 2011-2012 Legislative Cycle:
S6758A

Votes

10
0
10
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Racing, Gaming and Wagering committee vote details

Sponsor Memo

BILL NUMBER:S2433

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 long term rebate and fan appreciation
benefits to those racing fans who attend race meets, preferred
customers and to volume bettors. Under current law, while the State
Gaming Commission can authorize event based or other very short term
rebate or fan appreciation programs, there are no standards for
establishing successful long term rebate programs that can
effectively bring more race fans to the track. Bringing more fans to
the race tracks can help to make the sport of racing a more exciting
time for all participants.

This bill establishes a statutory framework to create such rebate
programs and guidelines for approval of such rebate programs by the
State Gaming Commission (Commission). Adopting this bill should
provide applicants with parameters in which to draft applications to
the Commission for approval to establish systemic long range rebate
programs to encourage attendance at race tracks or other gaming
facilities. These types of long term rebate or fan appreciation
programs are authorized and conducted by many out-of-state racing
forums, but axe not authorized in New York.

SUMMARY OF PROVISIONS:

Section 1: Adds Racing & Wagering Law section 109-a to clearly
establish in the law the ability of host racetracks and OTBs to
establish long term rebate or fan appreciation programs that can last
for an entire racing season or calendar year 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 Commission must annually approve of the rebate programs. This bill
gives reasonable latitude to the Commission to establish 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 raping industry.

There are several conditions that the applicant must abide by when
administering any rebate or fan appreciation 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 Commission.

JUSTIFICATION:
Many off-shore betting houses are offering rebate or fan appreciation
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 entire race season or annual
betting rebate programs to 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 Commission 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:
This bill is similar to S.577A of 2007. While this bill was vetoed by
Governor Spitzer, this current bill was revised to address the
concerns that were raised by that veto message. Further, this bill
was amended to conform to the new statutory frame work established
when forming the new State Gaming Commission.
2012 - S. 6758 - Reported to Senate Finance Committee

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: 180 days after it shall have become
law.

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

                                  2433

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

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 109-a to read as follows:
  S 109-A. 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 GAMING COMMISSION DEEMS
APPROPRIATE TO REWARD HORSE RACING PATRONS FOR  THEIR  PARTICIPATION  AT
RACE MEETINGS.
  2.  THE  STATE  GAMING COMMISSION, UPON APPLICATION OF AN ASSOCIATION,
CORPORATION, FRANCHISED  CORPORATION  OR  RACING  FRANCHISEE  CONDUCTING
PARI-MUTUEL  BETTING AT A RACE MEETING ON RACES RUN AT A RACETRACK OPER-
ATED BY SUCH ASSOCIATION, CORPORATION  OR  FRANCHISED  CORPORATION,  MAY
ANNUALLY  APPROVE  THE  PAYMENT  OF  REBATES BY SUCH ASSOCIATION, CORPO-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06752-01-3

S. 2433                             2

RATION, FRANCHISED CORPORATION OR  RACING  FRANCHISEE,  SUBJECT  TO  THE
FOLLOWING REQUIREMENTS:
  A.  THE  APPLICANT  DISCLOSES  THE EXTENT OF THE REBATE PROGRAM.  SUCH
DISCLOSURE SHALL INCLUDE A LISTING 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 one hundred eightieth day after
it shall have become a law or on the same date and in the same manner as
part  A  of chapter 60 of the laws of 2012 takes effect, whichever shall
occur later; provided that effective immediately any rules,  regulations
and  applications  necessary  to implement the provisions of this act on
its effective date are authorized to be  completed  on  or  before  such
date.

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