Senate Bill S6562

                                
 
BILL NUMBER: S6562

SPONSOR: ADDABBO
 
TITLE OF BILL:  An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to racing support payments

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide payment to the horsemen, New York state thoroughbred breeding
and development fund and New York state horse breeding development fund.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one requires a gaming facility in region two to pay fifty
percent of payments owed to the horsemen, New York state thoroughbred
breeding and development fund and New York state horse breeding develop-
ment fund.

Section two provides the effective date.

 
              

JUSTIFICATION:

Since the enactment of the Upstate New York Gaming Economic Development
Act of 2013, New York's four gaming facilities have contributed millions
of dollars to state education and local property tax relief. In the last
fiscal year, Rivers Casino and Resort paid close to $43 million; the
most amount of taxes paid by any of the four gaming facilities.

In addition to the $43 million paid toward state education and local
property tax, Rivers Casino and Resort has also taken over the payments
of three separate funds previously paid by the Saratoga Casino & Hotel
for the privilege of operating more than 1,100 video lottery terminals
(VLT). Those funds are the purses for horsemen at the Saratoga Race-
track, the New York state horse breeding development fund and the New
York state thoroughbred breeding and development fund.

Unfortunately, less than a year ago, MGM Springfield opened its $960
million facility just across the state border of Massachusetts.  Since
then, MGM Springfield has spent a significant amount of money marketing
Rivers Casino and Resort patrons which has included sending buses into
the Capital District. To make matters worse, MGM Springfield pays a tax
rate of 25%, a little less than half the tax rate of Rivers Casino and
Resort.

In order to continue to benefit the Capital District and remain compet-
itive with MGM Springfield, this bill would partially reinstate previous
law by requiring Saratoga Casino & Resort to pay one-half of its previ-
ous contribution to the purses for its horsemen at the Saratoga Race-
track, the New York state horse breeding development fund and the New
York state thoroughbred breeding and development fund.

This legislation holds the funds harmless in that Saratoga Casino and
Hotel will split the amount set by the Gaming Commission from this past
fiscal year going forward. Thus, the contributions to the funds will
remain at the current fiscal level.

 
PRIOR LEGISLATIVE HISTORY:

This is new legislation.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.