senate Bill S6758A

2011-2012 Legislative Session

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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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
May 23, 2012 print number 6758a
amend and recommit to finance
May 08, 2012 reported and committed to finance
Mar 19, 2012 referred to racing, gaming and wagering

Bill Amendments

Original
A (Active)
Original
A (Active)

S6758 - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add §109-a, RWB L

S6758 - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S6758

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 rebate benefits to those racing fans who
attend race meets, preferred customers and to volume bettors. Under
current law, there are no standards for establishing such rebate
programs.

This bill establishes a statutory framework to create such rebate
programs and guidelines for approval of such rebate programs by the
Racing & wagering Board (Board). Adopting this bill should provide
applicants with parameters in which to draft applications to the
Board for approval to establish systemic long range rebate programs
to encourage attendance at race tracks or other gaming facilities.

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 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 Board must annually approve of the rebate programs. This bill
gives reasonable latitude to the Board to define the term "rebate"
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 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 Board.

JUSTIFICATION:

Many off-shore betting houses are offering rebate 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 year long betting rebate programs that can 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 Board 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:

New Bill.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

The January next succeeding the date it shall have become law.

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

                                  6758

                            I N  S E N A T E

                             March 19, 2012
                               ___________

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 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, 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  RACING  AND  WAGERING
BOARD DEEMS APPROPRIATE TO REWARD HORSE RACING PATRONS FOR THEIR PARTIC-
IPATION  AT  RACE MEETINGS. SUCH TERM MAY BE FURTHER DELINEATED IN RULES
PROMULGATED BY THE STATE RACING AND WAGERING BOARD.
  2. THE STATE RACING AND WAGERING BOARD, UPON APPLICATION OF 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, MAY
ANNUALLY  APPROVE  THE  PAYMENT  OF  REBATES BY SUCH ASSOCIATION, CORPO-
RATION, FRANCHISED CORPORATION OR  RACING  FRANCHISEE,  SUBJECT  TO  THE
FOLLOWING REQUIREMENTS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14792-01-2

S. 6758                             2

  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) 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 first of January next succeed-
ing the date on which it shall have become a law, provided  that  effec-
tive  immediately  any  rules, regulations and applications necessary to
implement the provisions of this act on its effective date  are  author-
ized to be completed on or before such date.

S6758A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add §109-a, RWB L

S6758A (ACTIVE) - Bill Texts

view 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.

view sponsor memo
BILL NUMBER:S6758A

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 are 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 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
a.re 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.

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
The same date upon which Chapter 60 of the Laws of 2012 takes effect.

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

                                 6758--A

                            I N  S E N A T E

                             March 19, 2012
                               ___________

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-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-
RATION, FRANCHISED CORPORATION OR  RACING  FRANCHISEE,  SUBJECT  TO  THE
FOLLOWING REQUIREMENTS:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14792-02-2

S. 6758--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, 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 same date and in the same
manner as part A of chapter  60  of  the  laws  of  2012  takes  effect;
provided  that effective immediately any rules, regulations and applica-
tions 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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