senate Bill S3563A

2011-2012 Legislative Session

Relates to rebates and free passes, cards, or badges to racetracks

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 18, 2012 print number 3563a
amend and recommit to racing, gaming and wagering
Jan 04, 2012 referred to racing, gaming and wagering
Feb 25, 2011 referred to racing, gaming and wagering

Bill Amendments

Original
A (Active)
Original
A (Active)

S3563 - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add §113, RWB L
Versions Introduced in 2009-2010 Legislative Session:
S3286A

S3563 - Bill Texts

view summary

Relates to rebates on pari-mutuel wagers at racetracks.

view sponsor memo
BILL NUMBER:S3563

TITLE OF BILL:
An act
to amend the racing, pari-mutuel wagering and breeding law, in relation
to rebates and free passes

PURPOSE:
The purpose of this bill is to stimulate attendance and handle at
racing facilities and off track betting facilities throughout New
York and clearly authorize in the law the ability of host racetracks,
simulcast racetracks, and regional off-track betting corporations
(OTBs) to offer rebate benefits to preferred customers and to volume
bettors. Under current law. there are no standards for establishing
such rebate programs. This bill creates a statutory framework in
which to establish such rebate programs while simultaneously
expanding the number of persons that are qualified to obtain a free
pass, card or badge to enter a race track to include the general
public so that race tracks can implement promotional campaigns to
increase attendance at race tracks.

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. 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 Racing & Wagering Board must
annually approve of the rebate programs.

There are conditions to approving rebate programs. 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.

Section 2: Amends Racing & Wagering Law section 243 to expand the
number of persons that are qualified to obtain a free pass, card or
badge to enter a thoroughbred race track to include any other person
or guest that is deemed appropriate by the operator of such
thoroughbred race track.

Section 3: Amends Racing & Wagering Law section 324 to expand the
number of persons that are qualified to obtain a free pass, card or
badge to enter a harness race track to include any other person or
guest that is deemed appropriate by the operator of such harness race
track. In addition, free passes may be issued to the general public
in connection with any track sponsored promotional campaign or
marketing program to increase live race attendance.

Section 4: Amends Racing & Wagering Law section 422 to expand the
number of persons that are qualified to obtain a free pass, card or
badge to enter a quarter horse race track to include any other person
or guest that is deemed appropriate by the operator of such quarter
horse race
track. Also, free passes may be issued to the general public to
increase public participation at such quarter horse events.

Section 5: Effective date.

EXISTING LAW:
There is currently no statutory framework to assist a racetrack or OTB
to develop and implement a rebate program. Furthermore, under current
law, only a select group of public officers and employees engaged in
the regulation of racing events and employees of the racing industry
that are conducting race meets are allowed to be awarded free passes,
cards or badges to enter a horse race track.

JUSTIFICATION:
Certain off-shore and out of state betting houses are offering rebate
programs for their racing events. These 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.

Restriction of free passes is an outdated law in need of revision.
Under current law, horse owners may obtain free passes, however
members of the horse owner's family are precluded from receiving such
passes. In addition, attendance at horse racing events has generally
been in decline for the past thirty years. This measure will allow
horse race track operators to issue more free passes to promote
attendance of individuals at live horse racing events. Allowing the
issuance of more free passes will not only increase attendance and
the excitement of those horse racing events, it may encourage an
increase in betting handle at such racing facilities and the
patronage of restaurants located at such tracks.

LEGISLATIVE HISTORY:
S.3286-A of 2009/2010 Held in Senate Finance Committee
S.6925 of 2005/2006

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

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download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3563

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 25, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- 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 rebates and free passes

  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 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. REBATES SHALL INCLUDE,  BUT  NOT  BE  LIMITED  TO,
REFUNDS  TO  HOLDERS  OF  PARI-MUTUEL WAGERING TICKETS ON ANY PORTION OR
PERCENTAGE OF THE FULL FACE VALUE OF A PARI-MUTUEL WAGER, INCREASING THE
PAYOFF OF OR 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.
  2. THE RACING AND WAGERING BOARD, UPON APPLICATION OF  AN  ASSOCIATION
OR CORPORATION CONDUCTING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES
RUN THEREAT, MAY ANNUALLY APPROVE THE PAYMENT OF REBATES BY SUCH ASSOCI-
ATION OR CORPORATION, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  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) THE AMOUNT WAGERED BY A  BETTOR,  (II)  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05802-02-1

S. 3563                             2

AMOUNT  PAYABLE  TO  THE  ASSOCIATION  OR CORPORATION ON EACH WAGER, AND
(III) 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. Section 243 of the racing, pari-mutuel wagering and breeding law,
as amended by chapter 18 of the laws of 2008,  is  amended  to  read  as
follows:
  S  243.  Free passes, cards or badges. A corporation licensed or fran-
chised to conduct pari-mutuel betting on races run  on  its  racetrack[,
shall  not]  MAY issue free passes, cards or badges [except] to [persons
hereafter described:]  ANY  QUALIFIED  PERSON.  QUALIFIED  PERSON  SHALL
INCLUDE,  BUT  NOT  BE  LIMITED TO, officers and employees of the corpo-
ration conducting the race meeting, members, officers and  employees  of
the state racing and wagering board, members and employees of the jockey
club,  members and employees of the national steeplechase and hunt asso-
ciation, members of turf organizations of other states and foreign coun-
tries, public officers engaged  in  the  performance  of  their  duties,
persons  actually  employed  and  accredited by the press to attend such
meetings, owners, stable managers, trainers, jockeys,  jockey  managers,
grooms,  concessionaires,  spouses,  domestic  partners  and children of
owners, trainers and jockeys, [and] other persons  whose  actual  duties
require  their presence at such racetrack, AND ANY OTHER PERSON OR GUEST
DEEMED APPROPRIATE BY SUCH CORPORATION. IN ADDITION, FREE PASSES,  CARDS
OR  BADGES  MAY  BE  ISSUED TO THE GENERAL PUBLIC IN CONNECTION WITH ANY
PROMOTIONAL CAMPAIGN OR MARKETING PROGRAM SPONSORED BY SUCH  CORPORATION
TO  INCREASE ATTENDANCE AT LIVE RACE MEETS. The issuance of free passes,
cards or badges shall be under the rules and regulations  of  the  state
racing  and wagering board [and a list of all persons to whom free pass-
es, cards or badges are issued shall be filed with the state racing  and
wagering board].
  S  3. Section 324 of the racing, pari-mutuel wagering and breeding law
is amended to read as follows:
  S 324. Free passes, cards or badges.   A  corporation  or  association
licensed  to  conduct  pari-mutuel betting on harness horse races run at
its racetrack [shall  not]  MAY  issue  free  passes,  cards  or  badges
[except] to [persons hereafter described:] ANY QUALIFIED PERSON.  QUALI-
FIED PERSON SHALL INCLUDE, BUT NOT BE LIMITED TO, officers and employees
of  the corporation or association conducting the race meeting, members,
officers and employees of the state racing and wagering  board,  members
of  harness  racing  associations of other states and foreign countries,
public officers engaged in the  performance  of  their  duties,  persons
actually  employed  and accredited by the press to attend such meetings,
owners,  stable  managers,  trainers,  drivers,  concessionaires  [and],
SPOUSES, DOMESTIC PARTNERS AND CHILDREN OF OWNERS, TRAINERS AND JOCKEYS,

S. 3563                             3

other  persons  whose actual duties require their presence at such race-
track, AND ANY OTHER PERSON OR GUEST DEEMED APPROPRIATE BY  SUCH  CORPO-
RATION  OR ASSOCIATION. IN ADDITION, FREE PASSES, CARDS OR BADGES MAY BE
ISSUED TO THE GENERAL PUBLIC IN CONNECTION WITH ANY PROMOTIONAL CAMPAIGN
OR  MARKETING  PROGRAM  SPONSORED  BY SUCH CORPORATION OR ASSOCIATION TO
INCREASE ATTENDANCE AT LIVE RACE MEETS.   The issuance of  free  passes,
cards  or  badges  shall be under the rules and regulations of the state
racing and wagering board [and a list of all persons to whom free  pass-
es,  cards or badges are issued shall be filed with the state racing and
wagering board].
  S 4. Section 422 of the racing, pari-mutuel wagering and breeding  law
is amended to read as follows:
  S  422.  Free  passes,  cards  or badges. A corporation or association
licensed to conduct pari-mutuel betting on quarter horse  races  run  at
its racetrack [shall] MAY issue free passes, cards or badges to [persons
hereafter  described:]  ANY  QUALIFIED  PERSON.  QUALIFIED  PERSON SHALL
INCLUDE, BUT NOT BE LIMITED TO, officers and  employees  of  the  corpo-
ration or association conducting the race meeting, members, officers and
employees  of  the  state  racing and wagering board, members of quarter
horse racing associations of other states and foreign countries,  public
officers  engaged  in  the performance of their duties, persons actually
employed and accredited by the press to attend  such  meetings,  owners,
stable  managers,  trainers,  jockeys,  concessionaires  [and], SPOUSES,
DOMESTIC PARTNERS AND CHILDREN OF OWNERS, TRAINERS  AND  JOCKEYS,  other
persons  whose  actual  duties require their presence at such racetrack,
AND ANY OTHER PERSON OR GUEST DEEMED APPROPRIATE BY SUCH CORPORATION  OR
ASSOCIATION.  IN ADDITION, FREE PASSES, CARDS OR BADGES MAY BE ISSUED TO
THE GENERAL PUBLIC  IN  CONNECTION  WITH  ANY  PROMOTIONAL  CAMPAIGN  OR
MARKETING  PROGRAM  SPONSORED  BY  SUCH  CORPORATION  OR  ASSOCIATION TO
INCREASE ATTENDANCE AT LIVE RACE MEETS.   The issuance of  free  passes,
cards  or  badges  shall be under the rules and regulations of the state
racing and wagering board [and a list of all persons to whom free  pass-
es,  cards or badges are issued shall be filed with the state racing and
wagering board].
  S 5. This act shall take effect immediately.

S3563A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add §113, RWB L
Versions Introduced in 2009-2010 Legislative Session:
S3286A

S3563A (ACTIVE) - Bill Texts

view summary

Relates to rebates on pari-mutuel wagers at racetracks.

view sponsor memo
BILL NUMBER:S3563A

TITLE OF BILL:
An act
to amend the racing, pari-mutuel wagering and breeding law, in relation
to rebates and free passes

PURPOSE:
The purpose of this bill is to stimulate attendance and handle at
racing facilities and off track betting facilities throughout New
York and clearly authorize in the law the ability of host racetracks,
simulcast racetracks, and regional off-track betting corporations
(OTBs) to offer rebate benefits to preferred customers and to volume
bettors. Under current law. there are no standards for establishing
such rebate programs. This bill creates a statutory framework in
which to establish such rebate programs while simultaneously
expanding the number of persons that are qualified to obtain a free
pass, card or badge to enter a race track to include the general
public so that race tracks can implement promotional campaigns to
increase attendance at race tracks.

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. 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 Racing & Wagering Board must
annually approve of the rebate programs.

There are conditions to approving rebate programs. 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.

Section 2: Effective date.

EXISTING LAW:
There is currently no statutory framework to assist a racetrack or OTB
to develop and implement a rebate program. Furthermore, under current
law, only a select group of public officers and employees engaged in
the regulation of racing events and employees of the racing industry
that are conducting race meets are allowed to be awarded free passes,
cards or badges to enter a horse race track.

JUSTIFICATION:
Certain off-shore and out of state betting houses are offering rebate
programs for their racing events. These 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.


Restriction of free passes is an outdated law in need of revision.
Under current law, horse owners may obtain free passes, however
members of the horse owner's family are precluded from receiving such
passes. In addition, attendance at horse racing events has generally
been in decline for the past thirty years. This measure will allow
horse race track operators to issue more free passes to promote
attendance of individuals at live horse racing events. Allowing the
issuance of more free passes will not only increase attendance and
the excitement of those horse racing events, it may encourage an
increase in betting handle at such racing facilities and the
patronage of restaurants located at such tracks.

LEGISLATIVE HISTORY:
S.3286A of 2009/2010 Held in Senate Finance Committee
S.6925 of 2005/2006

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediately.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3563--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 25, 2011
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing  -- recommitted to the Committee on Racing, Gaming and Wagering in
  accordance with Senate Rule 6, sec. 8 --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
  relation to rebates and free passes

  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 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.  REBATES  SHALL  INCLUDE, BUT NOT BE LIMITED TO,
REFUNDS TO HOLDERS OF PARI-MUTUEL WAGERING TICKETS  ON  ANY  PORTION  OR
PERCENTAGE OF THE FULL FACE VALUE OF A PARI-MUTUEL WAGER, INCREASING THE
PAYOFF  OF  OR 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.
  2.  THE  RACING AND WAGERING BOARD, UPON APPLICATION OF AN ASSOCIATION
OR CORPORATION CONDUCTING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES
RUN THEREAT, MAY ANNUALLY APPROVE THE PAYMENT OF REBATES BY SUCH ASSOCI-
ATION OR CORPORATION, SUBJECT TO THE FOLLOWING REQUIREMENTS:
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05802-03-1

S. 3563--A                          2

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) THE AMOUNT WAGERED BY A  BETTOR,  (II)  THE
AMOUNT  PAYABLE  TO  THE  ASSOCIATION  OR CORPORATION ON EACH WAGER, AND
(III) 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 immediately.

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