senate Bill S7615A

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities; repealer

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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

  • 16 / May / 2014
    • REFERRED TO RACING, GAMING AND WAGERING
  • 12 / Jun / 2014
    • AMEND AND RECOMMIT TO RACING, GAMING AND WAGERING
  • 12 / Jun / 2014
    • PRINT NUMBER 7615A
  • 17 / Jun / 2014
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 17 / Jun / 2014
    • ORDERED TO THIRD READING CAL.1452
  • 17 / Jun / 2014
    • PASSED SENATE
  • 17 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 17 / Jun / 2014
    • REFERRED TO RACING AND WAGERING

Summary

Relates to out-of-state races, VLT flex hours, and increased free play at VLT facilities.

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Bill Details

Versions:
S7615
S7615A
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Rpld §1016 sub 1 ¶b sub¶ 5 cls (E) & (F), sub¶ 6 cls (F) & (G), amd §§1017 & 1012, RWB L; amd §§1612 & 1617-a, Tax L

Sponsor Memo

BILL NUMBER:S7615A

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to out-of-state or out-of-country races; to
amend the tax law, in relation to video lottery terminal flex hours
and increasing free play at video lottery facilities; and to repeal
certain provisions of the racing, pari-mutuel wagering and breeding
law relating thereto

PURPOSE: To provide operational and financial relief to licensed New
York State Video Lottery Gaming Facilities and Regional Off Track
Betting Corporations. This bill will also increase aid to Education.

SUMMARY OF PROVISIONS:

Section 1 of the bill amends section 1016 of the racing, pari-mutuel
wagering and breeding law to eliminate dark day payments made from
regional off track betting corporations to licensed New York State
harness tracks.

Section 2 of the bill amends section 1017 of the racing, pari-mutuel
wagering and breeding law to eliminate maintenance of effort and hold
harmless payments made from regional off track betting corporations to
licensed New York State harness tracks.

Section 3 of the bill amends section 1012 of the racing, pari-mutuel
wagering and breeding law to make technical corrections pertaining to
regulation of multi jurisdictional account wagering providers.

Section 4 of the bill amends section 1612 of the tax law to provide a
video lottery gaming facility located in Sullivan County with a Vendor
Capital Award.

Section 5 of the bill amends section 1617-a of the tax law to provide
video lottery gaming facilities with more flexible hours of operation.

Section 6 of the bill amends section 1617-a of the tax law to increase
the annual value of free play allowance credits authorized for use by
a video lottery gaming facility from ten to fifteen percent of the
total amount wagered on video lottery games after payout of prizes.

Section 7 of the bill would provide an immediate effective date for
this legislation.

JUSTIFICATION: Currently, New York State Video Lottery Gaming
facilities are in competition with gaming entities in other
jurisdictions that have unlimited free play and more flexible hours of
operation. In addition, regional off track betting corporations are
experiencing financial difficulty resulting from increased out of
state competition and from antiquated and obsolete regulatory payment
requirements in statute. This bill would authorize various forms of
financial and operational relief to ensure New York State Video
Lottery Gaming facilities and Regional Off Track Betting Corporations
remain competitive with racing and gaming entities in other
jurisdictions. The relief provided will also increase aid to education
through the State Lottery Fund and help County governments with


increased revenues generated through the Regional Off Track Betting
Corporations.

LEGISLATIVE HISTORY: This is a new bill.

FISCAL IMPLICATIONS: This bill will generate an additional $110-$115
million in aid to education.

LOCAL FISCAL IMPLICATIONS: This bill will generate additional
revenues for County governments which have Regional Off Track Betting
Corporations.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                 7615--A

                            I N  S E N A T E

                              May 16, 2014
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing  --  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  out-of-state  or  out-of-country races; to amend the tax
  law, in relation to video lottery terminal flex hours  and  increasing
  free   play  at  video  lottery  facilities;  and  to  repeal  certain
  provisions of the racing, pari-mutuel wagering and breeding law relat-
  ing thereto

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

  Section  1.  Clauses  (E)  and (F) of subparagraph 5 of paragraph b of
subdivision 1 of section 1016 of the racing,  pari-mutuel  wagering  and
breeding law are REPEALED.
  S  2. Clauses (F) and (G) of subparagraph 6 of paragraph b of subdivi-
sion 1 of section 1016 of the racing, pari-mutuel wagering and  breeding
law are REPEALED.
  S  3.  Section  1017  of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws  of  2008,  subdivision  2  as
amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
follows:
  S 1017. Out-of-state or out-of-country races. [1.] Licensed  simulcast
facilities  may  accept wagers and display the signal of out-of-state or
out-of-country thoroughbred tracks after 7Labor P.M. in accordance  with
the  provisions  of  this  section.  Such simulcasting may include mixed
meetings if such meetings are integral to such racing programs  and  all
such wagering on such races shall be construed to be thoroughbred races.
For  facilities  located  within  the  special  betting  district,  such
approval shall also be required from a thoroughbred  racing  corporation
during  the  period  a  racing program is being conducted at such track.
Such approval shall not be required on any day such thoroughbred  racing
corporation  is  also accepting an out-of-state or out-of-country signal
and wager, as authorized by this section. The provisions of section  one

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD15207-03-4

S. 7615--A                          2

thousand  sixteen  of this article shall be applicable to the conduct of
such simulcasting and the provisions of clauses (A) and (B) of  subpara-
graph  four  of  paragraph  b of subdivision one of section one thousand
sixteen  of  this  article  shall  apply to those facilities licensed in
accordance with sections one thousand eight and  one  thousand  nine  of
this  article  and the provisions of clauses (A) and (B) of subparagraph
six of paragraph b of subdivision one of section one thousand sixteen of
this article shall apply to those facilities licensed in accordance with
section one thousand seven of this article, when such provisions are  in
full  force  and effect pursuant to such section. Provided, however, the
provisions of section one thousand fourteen of  this  article  shall  be
applicable to the conduct of such simulcasting, when such provisions are
in full force and effect pursuant to such section.
  [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 commission, for its approval, a sched-
ule 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 commission, 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,  as  derived  from  out-of-state harness races
displayed after 6:00 P.M. If approved by the commission, such  scheduled
payments  shall  be  made  from  revenues  derived from any simulcasting
conducted pursuant to this section and section one thousand  fifteen  of
this article.
  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 of  its  proportionate  share  of
such  excess  handle. In any region where there are two or more regional
harness tracks, such two percent shall be divided between or  among  the
tracks in a proportion equal to the proportion 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. For the purpose of determining whether such
aggregate  statewide  handle  exceeds  one  hundred million dollars, all
wagering on such thoroughbred races accepted by licensed multi-jurisdic-
tional account wagering providers from customers within New  York  state
shall be excluded.]
  S 4. Subdivision 1 of section 1012 of the racing, pari-mutuel wagering
and  breeding  law,  as  amended  by chapter 174 of the laws of 2013, is
amended to read as follows:
  1. Racing  associations  and  corporations,  franchised  corporations,
off-track betting corporations and multi-jurisdictional account wagering
providers  may  form  partnerships,  joint ventures, or any other affil-
iations or contractual arrangement in order to further the  purposes  of
this  section.  Multi-jurisdictional account wagering providers involved
in such joint affiliations or contractual arrangements shall follow  the
same  distributional  policy  with  respect  to  retained commissions as
[their in-state affiliate or contractual partner] A MULTI-JURISDICTIONAL

S. 7615--A                          3

ACCOUNT WAGERING PROVIDER DEFINED IN THIS  ARTICLE;  PROVIDED,  HOWEVER,
THAT  SUCH  JOINT AFFILIATION OR CONTRACTUAL ARRANGEMENT ENTERED INTO ON
OR AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF  TWO  THOUSAND
FOURTEEN  THAT  AMENDED  THIS SUBDIVISION SHALL BE SUBJECT TO THE REVIEW
AND APPROVAL OF THE NEW YORK STATE GAMING  COMMISSION  TO  DETERMINE  IF
SUCH  AFFILIATION  OR CONTRACTUAL ARRANGEMENT IS IN THE BEST INTEREST OF
THE RACING INDUSTRY OF THIS STATE.
  S 5. Clause (H) of subparagraph (ii) of paragraph 1 of  subdivision  b
of  section  1612  of the tax law, as amended by section 1 of part BB of
chapter 59 of the laws of 2014, is amended to read as follows:
  (H) notwithstanding clauses (A), (B), (C), (D), (E), (F)  and  (G)  of
this  subparagraph, the track operator of a vendor track shall be eligi-
ble for a vendor's capital award of up to  four  percent  of  the  total
revenue  wagered at the vendor track after payout for prizes pursuant to
this chapter, which  shall  be  used  exclusively  for  capital  project
investments  to improve the facilities of the vendor track which promote
or encourage increased attendance at the video lottery  gaming  facility
including,  but  not limited to hotels, other lodging facilities, enter-
tainment  facilities,  retail  facilities,  dining  facilities,   events
arenas,  parking  garages  and  other improvements that enhance facility
amenities; provided that such capital investments shall be  approved  by
the  division, in consultation with the state racing and wagering board,
and that such vendor track demonstrates that such  capital  expenditures
will  increase  patronage at such vendor track's facilities and increase
the amount of revenue generated to support state education programs. The
annual amount of such vendor's capital awards that a vendor track  shall
be  eligible  to  receive  shall  be limited to two million five hundred
thousand dollars, except for Aqueduct racetrack, for which  there  shall
be  no  vendor's  capital awards. Except for tracks having less than one
thousand one hundred video gaming machines,  and  except  for  a  vendor
track  located west of State Route 14 from Sodus Point to the Pennsylva-
nia border within New York, each track operator  shall  be  required  to
co-invest  an  amount  of  capital  expenditure  equal to its cumulative
vendor's capital award. For all tracks, except for  Aqueduct  racetrack,
the amount of any vendor's capital award that is not used during any one
year  period  may  be  carried  over into subsequent years ending before
April first, two thousand fifteen. Any amount attributable to a  capital
expenditure  approved  prior  to  April  first, two thousand fifteen and
completed before April first, two thousand seventeen; or approved  prior
to  April first, two thousand nineteen and completed before April first,
two thousand twenty-one for a vendor track located west of  State  Route
14 from Sodus Point to the Pennsylvania border within New York, shall be
eligible  to  receive  the  vendor's  capital award. In the event that a
vendor track's capital expenditures, approved by the division  prior  to
April  first,  two  thousand fifteen and completed prior to April first,
two thousand seventeen, exceed the  vendor  track's  cumulative  capital
award  during  the  five  year  period  ending April first, two thousand
fifteen, the vendor shall continue to receive the  capital  award  after
April  first,  two thousand fifteen until such approved capital expendi-
tures are paid to the vendor track subject to  any  required  co-invest-
ment.  In  no  event  shall  any vendor track that receives a vendor fee
pursuant to clause [(F) or] (G) of this subparagraph be eligible  for  a
vendor's  capital  award  under  this  section. Any operator of a vendor
track which has received a vendor's capital award,  choosing  to  divest
the capital improvement toward which the award was applied, prior to the
full depreciation of the capital improvement in accordance with general-

S. 7615--A                          4

ly  accepted accounting principles, shall reimburse the state in amounts
equal to the total of any such awards. Any capital  award  not  approved
for  a  capital  expenditure at a video lottery gaming facility by April
first,  two  thousand  fifteen shall be deposited into the state lottery
fund for education aid; and
  S 6. Subdivision b of section 1617-a of the tax  law,  as  amended  by
section  5  of  part  K of chapter 57 of the laws of 2010, is amended to
read as follows:
  b. Video lottery gaming shall only be permitted for no more than twen-
ty consecutive hours per day and on  no  day  shall  such  operation  be
conducted past [4:00] 6:00 a.m.
  S 7. Paragraph 3 of subdivision f of section 1617-a of the tax law, as
added  by  section  2  of  part  O of chapter 61 of the laws of 2011, is
amended to read as follows:
  (3) For each video lottery facility, the annual value of the free play
allowance credits authorized for use by the operator  pursuant  to  this
subdivision shall not exceed an amount equal to [ten] FIFTEEN percent of
the  total amount wagered on video lottery games after payout of prizes.
The division shall establish procedures to assure that free play  allow-
ance credits do not exceed such amount.
  S 8. This act shall take effect immediately.

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