S T A T E O F N E W Y O R K
________________________________________________________________________
1895
2021-2022 Regular Sessions
I N A S S E M B L Y
January 11, 2021
___________
Introduced by M. of A. CAHILL -- read once and referred to the Committee
on Racing and Wagering
AN ACT to amend the tax law, in relation to video lottery gaming
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 3 of subdivision a of section 1617-a of the tax
law, as added by section 1 of part SS of chapter 60 of the laws of 2016,
is amended to read as follows:
(3) a maximum of [two] FOUR facilities, ONE EACH IN THE SUFFOLK REGION
AND THE NASSAU REGION, which shall be vendors for all purposes under
this article, neither to exceed one thousand video lottery gaming
devices, established within region three of zone one as defined by
section one thousand three hundred ten of the racing, pari-mutuel wager-
ing and breeding law, one each operated by a corporation established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law in the Suffolk region and the Nassau region to be
located within a facility authorized pursuant to sections one thousand
eight or one thousand nine of the racing, pari-mutuel wagering and
breeding law, AND TWO FACILITIES IN ULSTER COUNTY, NONE TO EXCEED FIVE
HUNDRED VIDEO LOTTERY GAMING DEVICES, EACH OPERATED BY A CORPORATION
ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MU-
TUEL WAGERING AND BREEDING LAW TO BE LOCATED WITHIN A FACILITY AUTHOR-
IZED PURSUANT TO SECTIONS ONE THOUSAND EIGHT OR ONE THOUSAND NINE OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW. IN RESPECT TO THE ULSTER
COUNTY FACILITIES, CATSKILL OFF-TRACK BETTING CORPORATION WILL BE THE
GAMING OPERATOR AND A LOCAL RESOLUTION IN SUPPORT OF THE FACILITY WILL
BE REQUIRED. ADDITIONALLY, IN RESPECT TO THE ULSTER COUNTY FACILITIES,
THE FACILITIES MUST BE DESTINATION RESORT PROPERTIES WITH AT LEAST ONE
HUNDRED HOTEL ROOMS, HAVE SIGNIFICANT RESORT AMENITIES, BE CURRENTLY
OPEN AND OPERATING, AND HAVE BEEN IN CONTINUOUS OPERATION FOR NO LESS
THAN THE PAST THREE YEARS; and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01710-01-1
A. 1895 2
§ 2. Clause (D) of subparagraph (ii) of paragraph 1 of subdivision b
of section 1612 of the tax law, as amended by section 1 of part EE of
chapter 59 of the laws of 2019, is amended to read as follows:
(D) when a video lottery gaming facility is located in either Nassau
[or], Suffolk OR ULSTER counties and is operated by a corporation estab-
lished pursuant to section five hundred two of the racing, pari-mutuel
wagering and breeding law, at a rate of forty-five percent of the total
revenue wagered at the video lottery gaming facility after payout for
prizes pursuant to this chapter.
§ 3. Paragraph 2 of subdivision b of section 1612 of the tax law, as
amended by section 2 of part S of chapter 39 of the laws of 2019, is
amended to read as follows:
2. As consideration for the operation of a video lottery gaming facil-
ity, the division, shall cause the investment in the racing industry of
a portion of the vendor fee received pursuant to paragraph one of this
subdivision in the manner set forth in this subdivision. With the
exception of Aqueduct racetrack, a video lottery gaming facility author-
ized pursuant to paragraph five of subdivision a of section sixteen
hundred seventeen-a of this article or a facility in the [county] COUN-
TIES of Nassau [or], Suffolk OR ULSTER operated by a corporation estab-
lished pursuant to section five hundred two of the racing, pari-mutuel
wagering and breeding law, each such track shall dedicate a portion of
its vendor fees, received pursuant to clause (A), (B), (B-1), (B-2),
(C), or (D) of subparagraph (ii) of paragraph one of this subdivision,
for the purpose of enhancing purses at such track, in an amount equal to
eight and three-quarters percent of the total revenue wagered at the
vendor track after pay out for prizes. One percent of the gross purse
enhancement amount, as required by this subdivision, shall be paid to
the gaming commission to be used exclusively to promote and ensure
equine health and safety in New York. Any portion of such funding to the
gaming commission unused during a fiscal year shall be returned to the
video lottery gaming operators on a pro rata basis in accordance with
the amounts originally contributed by each operator and shall be used
for the purpose of enhancing purses at such track. One and one-half
percent of the gross purse enhancement amount at a thoroughbred track,
as required by this subdivision, shall be paid to an account established
pursuant to section two hundred twenty-one-a of the racing, pari-mutuel
wagering and breeding law to be used exclusively to provide health
insurance for jockeys. In addition, with the exception of Aqueduct race-
track, a video lottery gaming facility authorized pursuant to paragraph
five of subdivision a of section sixteen hundred seventeen-a of this
article or a facility in the [county] COUNTIES of Nassau [or], Suffolk
OR ULSTER operated by a corporation established pursuant to section five
hundred two of the racing, pari-mutuel wagering and breeding law, one
and one-quarter percent of total revenue wagered at the vendor track
after pay out for prizes, received pursuant to clause (A), (B), (B-1),
(B-2), (C), or (D) of subparagraph (ii) of paragraph one of this subdi-
vision, shall be distributed to the appropriate breeding fund for the
manner of racing conducted by such track.
Provided, further, that nothing in this paragraph shall prevent each
track from entering into an agreement, not to exceed five years, with
the organization authorized to represent its horsemen to increase or
decrease the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or to race
fewer dates than required herein.
A. 1895 3
§ 4. The opening paragraph of subdivision f-1 of section 1612 of the
tax law, as amended by chapter 175 of the laws of 2013, is amended to
read as follows:
As consideration for operation of video lottery gaming facility
located in the [county] COUNTIES of Nassau [or], Suffolk OR ULSTER and
operated by a corporation established pursuant to section five hundred
two of the racing, pari-mutuel wagering and breeding law, the division
shall cause the investment in the racing industry of the following
percentages of the vendor fee to be deposited or paid as follows:
§ 5. This act shall take effect immediately.