S T A T E O F N E W Y O R K
________________________________________________________________________
7615
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
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breeding law are REPEALED.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. 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
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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15207-02-4
S. 7615 2
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 3. 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
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
S. 7615 3
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 4. 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-
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
S. 7615 4
first, two thousand fifteen shall be deposited into the state lottery
fund for education aid; and
S 5. 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 6. 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 7. This act shall take effect immediately.