senate Bill S3026

2013-2014 Legislative Session

Establishes antitrust exemptions for certain horse racing agreements

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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
Feb 04, 2014 reported and committed to finance
Jan 08, 2014 referred to racing, gaming and wagering
May 29, 2013 reported and committed to finance
Jan 28, 2013 referred to racing, gaming and wagering

Votes

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Feb 4, 2014 - Racing, Gaming and Wagering committee Vote

S3026
9
0
committee
9
Aye
0
Nay
2
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Racing, Gaming and Wagering committee vote details

Racing, Gaming and Wagering Committee Vote: Feb 4, 2014

aye wr (2)

May 29, 2013 - Racing, Gaming and Wagering committee Vote

S3026
10
1
committee
10
Aye
1
Nay
0
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Racing, Gaming and Wagering committee vote details

Racing, Gaming and Wagering Committee Vote: May 29, 2013

nay (1)

S3026 - Bill Details

See Assembly Version of this Bill:
A4497
Current Committee:
Senate Finance
Law Section:
Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:
Add ยง113-a, RWB L
Versions Introduced in 2011-2012 Legislative Session:
S7140, A10310

S3026 - Bill Texts

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Provides that antitrust laws shall not apply to any joint agreement entered into, in consultation with and jointly approved by the state gaming commission and the attorney general, by or among non-profit associations, thoroughbred racing associations or corporations, harness racing associations or corporations, quarter horse racing associations or corporations and regional off-track betting corporations to coordinate the dates and times under which they will conduct programs of racing and offer pari-mutuel wagering; also provides that such laws shall not apply to agreements entered into to sell, transfer, assign or purchase the rights to broadcast, simulcast, electronically transmit or offer pari-mutuel wagering on horse races.

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BILL NUMBER:S3026

TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to antitrust exemptions for horse racing
agreements

PURPOSE: To permit racetracks and other racing event producers or
retailers to band together to establish agreements governing the sched-
uling of their races and to establish joint agreements involving the
sale and purchase of broadcasting and simulcasting rights.

SUMMARY OF PROVISIONS:

Section 1; Adds a new Racing & Wagering Law section 113-a to grant anti-
trust immunity to certain agreements among entities licensed by the
State Gaming Commission to conduct wagering. These entities would be
granted anti-trust immunity to develop agreements which coordinate the
dates and times of their races and are also given immunity to enter into
contracts involving the joint purchase or sale of their broadcasts,
simulcasts, and electronic transmissions. All such agreements must be
approved by the State Gaming Commission and the NYS Attorney General.
The standard of review is that such agreements must protect the contin-
ued viability of the State's horse racing and agricultural industries.

EXISTING LAW: Such agreements may, under current law, violate the State
and Federal anti-trust laws.

JUSTIFICATION: Attendance at racetracks and real betting handle in New
York has been falling rapidly for the past 40 years. Racetracks need a
better way of competing with other gambling and entertainment
attractions. This bill allows such racing event producers and retailers
to combine forces to make joint arrangements on both the scheduling and
the times of their races, or to sell and/or purchase broadcast and
simulcast rights. Making such joint cooperative arrangements may lead to
better national market penetration of the State's racing products and
help to reduce overhead costs and competition among New York's racing
producers so that OTB's can effectively market each racetrack's
products.

All agreements would need to be approved by the State Gaming Commission
and the NYS Attorney General so that only those agreements that promote
the State's legitimate interests in advancing our local horse racing and
agricultural industries would be approved. This bill ensures that future
joint agreements do not run afoul of the Federal and State anti-trust
laws. It is arguable that some joint arrangements between competitive
racetracks could pose antitrust questions. The need to preserve the
State's ailing racetracks should, however, outweigh any limited anticom-
petitive effects of any joint marketing or horse race production agree-
ments: The U.S. Supreme Court, under Parker v. Brown, 317 US 341 (1943)
grants states the statutory authority to confer immunity for the Sherman
Anti-trust Act for certain government sanctioned activities. The second

section of this bill is modeled on 15 U.S.C. Section 1291 which grants
anti-trust immunity to broadcasts for certain professional leagues.

LEGISLATIVE HISTORY: 2010: S.6197 - Referred to Racing, Gaming & Wager-
ing 2011: S.623 - This bill while similar to the current bill,
has additional safeguards included to protect the
public interest and reflects the concerns outlined
in Veto Message 27 of S.623. 2012: S. 7170 (Klein) / A. 10310
(Pretlow)

FISCAL IMPLICATIONS: None.

LOCAL FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: 180 days after it shall have become law.

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

                                  3026

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 28, 2013
                               ___________

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 antitrust exemptions for horse racing agreements

  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-a to read as follows:
  S 113-A. ANTITRUST EXEMPTIONS. STATE AND FEDERAL ANTITRUST LAWS  SHALL
NOT  APPLY TO ANY JOINT AGREEMENT ENTERED INTO, IN CONSULTATION WITH AND
JOINTLY APPROVED BY THE STATE GAMING COMMISSION AND THE ATTORNEY  GENER-
AL,  BY  OR  AMONG  NON-PROFIT  RACING ASSOCIATIONS, THOROUGHBRED RACING
ASSOCIATIONS OR CORPORATIONS,  HARNESS  RACING  ASSOCIATIONS  OR  CORPO-
RATIONS, QUARTER HORSE RACING ASSOCIATIONS OR CORPORATIONS, AND REGIONAL
OFF-TRACK  BETTING  CORPORATIONS TO COORDINATE THE DATES AND TIMES UNDER
WHICH THEY WILL CONDUCT PROGRAMS OF RACING AND OFFER PARI-MUTUEL  WAGER-
ING.  IN  ADDITION,  SUCH ANTITRUST LAWS SHALL NOT APPLY TO JOINT AGREE-
MENTS ENTERED INTO, IN CONSULTATION WITH AND  JOINTLY  APPROVED  BY  THE
STATE GAMING COMMISSION AND THE ATTORNEY GENERAL, BY OR AMONG NON-PROFIT
RACING  ASSOCIATIONS,  THOROUGHBRED RACING ASSOCIATIONS OR CORPORATIONS,
HARNESS RACING ASSOCIATIONS OR CORPORATIONS, QUARTER HORSE RACING  ASSO-
CIATIONS OR CORPORATIONS, AND REGIONAL OFF-TRACK BETTING CORPORATIONS TO
SELL,  TRANSFER,  ASSIGN OR PURCHASE THE RIGHTS TO BROADCAST, SIMULCAST,
ELECTRONICALLY TRANSMIT OR OFFER PARI-MUTUEL WAGERING  ON  HORSE  RACES.
THE  STATE  GAMING  COMMISSION  AND  THE  ATTORNEY GENERAL SHALL JOINTLY
CONSIDER AND APPROVE SUCH AGREEMENTS AND THE TERMS  THEREIN  TO  FURTHER
THE  STATE'S  INTEREST IN ENSURING THE VIABILITY AND CONTINUED EXISTENCE
IN THIS STATE OF THE HORSE RACING AND AGRICULTURE INDUSTRIES.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07679-02-3

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