BILL NUMBER:S3733

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 scheduling 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
antitrust 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 continued 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 anticompetitive effects of any joint marketing or
horse race production agreements: 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 & Wagering 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)
2014: S. 3026 - Referred and Committed to Finance/ A. 4497 - Referred
to Racing and Wagering

FISCAL IMPLICATIONS:

None.

LOCAL FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

180 days after it shall have become law.