senate Bill S2433A

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

See Assembly Version of this Bill:
A2329A
Versions:
S2433
S2433A
Legislative Cycle:
2013-2014
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add ยง109-b, RWB L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S6758A, A3648, S6758A
2013-2014: S2433A
2009-2010: A6915
2007-2008: A2347A

Sponsor Memo

BILL NUMBER:S2433Addd

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 authorize the approval
of such long term rebate programs and establish guidelines for the
approval of such rebate programs by the State Gaming Commission
(Commission). Adopting this bill should help to provide New York race
track 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 are not clearly sanctioned in New York law.

SUMMARY OF PROVISIONS:

Section 1: Adds Racing & Wagering Law section 109-b 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 approve of the rebate programs and such programs
can last up to at least one year, but may be approved for longer
periods of time upon annual review by the Commission. 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 racing 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 and out of state 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. Under New York law, New York Producers are not clearly allowed
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 or short term programs and not the long term programs
that are needed to maintain a strong fan base.

LEGISLATIVE HISTORY:

This bill is somewhat similar to S. 577-A of 2007 which also attempted
to address the emerging issue of betting rebates. 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--A

                       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  --  reported  favorably  from said committee and committed to the
  Committee on Finance -- committee discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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-b to read as follows:
  S 109-B. 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.  SUCH TERM SHALL BE DEFINED IN  RULES  PROMULGATED
BY  THE  COMMISSION  AND  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 TICKET, AWARDS  OF  MERCHANDISE,
SERVICES  SUCH  AS MEALS, PARKING, ADMISSION, SEATING AND PROGRAMS, FREE
OR REDUCED COST PARI-MUTUEL WAGERS AND MONETARY  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  OR
CORPORATION  CONDUCTING  PARI-MUTUEL  BETTING AT A RACE MEETING ON RACES
RUN THEREAT, MAY APPROVE THE PAYMENT OF REBATES BY SUCH  ASSOCIATION  OR
CORPORATION FOR A REBATE PROGRAM FOR A PERIOD OF UP TO ONE YEAR, SUBJECT
TO THE FOLLOWING REQUIREMENTS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06752-04-3

S. 2433--A                          2

  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, (III) THE AMOUNT PAYABLE TO THE
ASSOCIATION OR CORPORATION ON EACH  WAGER,  OR  (IV)  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 on the one hundred eightieth day after
it shall have become a law;  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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