Senate Bill S7401A

                                BILL NUMBER:S7401A

TITLE OF BILL:

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 9 of article 1 of the constitution, in
relation to authorizing gambling on professional sporting events
and athletic events sponsored by universities or colleges

SUMMARY OF PROVISIONS:

Article 1, Section 9 of the State Constitution would be amended to
allow for an additional exception to the prohibition on all gambling
authorizing wagering on professional and collegiate sporting events
at betting facilities located at horse racing tracks, simulcast
theaters operated by off-track betting corporations and in any
constitutionally authorized casino facility as may be prescribed by
the legislature, the net proceeds of which shall be applied
exclusively to or in aid or support of education.

EXISTING LAW:

Article 1, Section 9 of the State Constitution generally proscribes an
gambling except for four exceptions. These four exceptions are: (1)
pari-mutuel wagering on horse racing; (2) State lotteries; (3) bingo
conducted by certain charitable, non-profit and religious
              

organizations; and (4) games of chance conducted by these same
charitable, non-profit, and religious organizations.

JUSTIFICATION:

Legalizing professional sports betting in New York would be an
opportunity to diminish a serious organized crime enterprise and
provide critical funds for education.

According to the New York State District Attorney's Offices in both
Kings and Queens Counties, illegal sports betting generates more than
$380 billion a year nationwide, and approximately $38 billion a year
in New York City alone. While our law enforcement agencies do their
best to stop this criminal industry, it is an extremely lucrative
criminal enterprise for organized crime and one that has grown
steadily over the past 3 decades. State regulation of professional
sports betting would drastically reduce profits for organized crime
as was the intent of the New York State Legislature in 1982 when it
sought to achieve similar goals in creating Off-Track Betting.
In addition, strong gaming control regulations would help to abate
any concerns regarding game fixing and other potential abuses.

Furthermore, if the state were to legalize and regulate this industry
it would provide a tremendous source of revenue that could be used
to provide much needed funding for various services, such as
education. One estimate from The Partnership for New York City,
suggests the city of New York could receive as much as $1.9 billion a
year in revenue if professional sports
gambling were permitted in the current locations where gambling in


authorized in the state. This amount would then increase with the
recently proposed casino facilities.

Finally, the thrust of this legislation is regulation, not promotion.

While there are legitimate concerns related to the social challenges
that arise from problem gambling, this activity already exists on a
nationwide level and certainly within this state. The illegal
organizations that are unlawfully benefitting from this industry are
certainly not concerned with addressing these challenges and instead
benefit from them. If New York were to allow professional and
collegiate sports betting the money received by the state could be
used to support education related programs that are designed to
address these social challenges as well as providing much needed
revenue to support education in general.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

Significant revenue potential for state.

EFFECTIVE DATE:

If agreed by the Senate and the Assembly, the amendment will be
referred to the first regular legislative session convening after the
next succeeding general election of members of the assembly, and, in
conformity with section 1 of article 19 of the constitution, be
published for 3 months previous to the time of such election.