Assembly Bill A8538A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8538--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 13, 2021
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Racing and Wagering -- recommitted to the Committee  on  Racing
   and  Wagering  in accordance with Assembly Rule 3, sec. 2 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee

 AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
   relation  to  wagers  on  certain  horse racing events and authorizing
   agreements between a mobile sports wagering operator and an affiliate
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1 of section 1367 of the racing, pari-mutuel
 wagering and breeding law is amended  by  adding  three  new  paragraphs
 (dd), (ee) and (ff) to read as follows:
   (DD)  "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
 IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLE TWO, THREE, FIVE,
 NINE, OR TEN OF THIS CHAPTER, AS WELL AS ANY  SPORT  OR  ATHLETIC  EVENT
 CONDUCTED  OUTSIDE  OF  NEW  YORK  STATE, WHICH IF CONDUCTED IN NEW YORK
 STATE, WOULD BE SUBJECT TO THE PROVISIONS OF SUCH ARTICLES.
   (EE) "AFFILIATE" MEANS ANY OFF-TRACK BETTING CORPORATION, PROFESSIONAL
 SPORTS STADIUM  OR  ARENA,  AUTOMOBILE  RACING  FACILITY  THAT  HOSTS  A
 NATIONAL  ASSOCIATION  FOR  STOCK CAR AUTO RACING NATIONAL TOURING RACE,
 FRANCHISED CORPORATION, THOROUGHBRED RACING CORPORATION  OR  OTHER  RACE
 TRACK LICENSED PURSUANT TO THIS CHAPTER, OR AN OPERATOR OF VIDEO LOTTERY
 GAMING  AT  AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVEN-
 TEEN-A OF THE TAX LAW, WHICH HAS AN AFFILIATE AGREEMENT  WITH  A  MOBILE
 SPORTS WAGERING OPERATOR PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV-
 EN-A OF THIS TITLE.
   (FF) "FIXED ODDS SPORTS WAGERING AGREEMENT" MEANS AN AGREEMENT BETWEEN
 A MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGERING LICENSEE AND
 AN  ENTITY  THAT  POSSESSES A LICENSE AWARDED PURSUANT TO ARTICLE TWO OR
 THREE OF THIS CHAPTER THAT HAS  THE  AUTHORITY  TO  CONDUCT  PARI-MUTUEL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13589-05-2
              

 A. 8538--A                          2
 
 WAGERING  ON  THE  FORM  OF RACING INVOLVED IN THE RELEVANT HORSE RACING
 EVENT AND SUBJECT TO THE APPROVAL OF THE COMMISSION.
   §  2.  Paragraph  (s)  of subdivision 1 of section 1367 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 3 of part Y
 of chapter 59 of the laws of 2021, is amended to read as follows:
   (s) "Prohibited sports event" means (I) a sport or athletic  event  in
 which  any  New  York  college team participates regardless of where the
 event takes place, [or] (II) A high school sport or athletic  event,  OR
 (III)  A  HORSE  RACING  EVENT. [The] NOTWITHSTANDING THE FOREGOING, THE
 following shall not be considered  prohibited  sports  events:  [(i)]  a
 collegiate  tournament, [and (ii)] a sports event within such tournament
 so long as no New York college team is participating in that  particular
 sports  event,  AND  A  HORSE RACING EVENT THAT IS OFFERED PURSUANT TO A
 FIXED ODDS SPORTS WAGERING AGREEMENT;
   § 3.  Subdivision 2 of section 1367 of the racing, pari-mutuel  wager-
 ing  and breeding law is amended by adding a new paragraph (e-1) to read
 as follows:
   (E-1)(I)(1) A MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS  WAGER-
 ING  LICENSEE  MAY  ACCEPT A FIXED ODDS WAGER ON A HORSE RACING EVENT IF
 SUCH MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGERING  LICENSEE
 HAS  ENTERED  INTO A FIXED ODDS SPORTS WAGERING AGREEMENT WITH AN ENTITY
 THAT HAS THE AUTHORITY TO PROVIDE THE CONTENT OF SUCH HORSE RACING EVENT
 PURSUANT TO ARTICLE TWO OR THREE OF THIS CHAPTER. IN FURTHERANCE OF  ANY
 FIXED  ODDS  SPORTS WAGERING AGREEMENT, AN ENTITY THAT HOLDS A FRANCHISE
 OR LICENSE PURSUANT TO ARTICLE  TWO  OF  THIS  CHAPTER  MAY  ONLY  OFFER
 CONTENT  INVOLVING THOROUGHBRED RACES AND AN ENTITY THAT HOLDS A LICENSE
 PURSUANT TO ARTICLE THREE OF THIS CHAPTER MAY ONLY OFFER CONTENT INVOLV-
 ING STANDARDBRED RACES.
   (2) ALL FIXED ODDS SPORTS WAGERING AGREEMENTS MUST BE APPROVED BY  THE
 COMMISSION  PRIOR  TO  TAKING EFFECT. ANY CONTENT OFFERED PURSUANT TO AN
 APPROVED FIXED ODDS SPORTS WAGERING AGREEMENT SHALL SUBSEQUENTLY BE MADE
 AVAILABLE TO ANY INTERESTED MOBILE SPORTS WAGERING  OPERATOR  OR  MOBILE
 SPORTS WAGERING LICENSEE ON COMMERCIALLY REASONABLE TERMS, AS DETERMINED
 BY THE COMMISSION.
   (II)  ANY HOLDER OF A PARI-MUTUEL WAGERING FRANCHISE OR LICENSE PURSU-
 ANT TO ARTICLE TWO OR THREE OF THIS CHAPTER THAT  ENTERS  INTO  A  FIXED
 ODDS  SPORTS  WAGERING  AGREEMENT SHALL SEPARATELY MAINTAIN AN AGREEMENT
 WITH THE APPLICABLE HORSEMEN'S ASSOCIATION, SETTING FORTH  THE  TYPE  OF
 WAGERS  THAT  MAY  BE  PLACED  ON A HORSE RACING EVENT AND THE MANNER IN
 WHICH REVENUE GENERATED PURSUANT TO THE AGREEMENT OR AGREEMENTS WITH THE
 MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGERING LICENSEE SHALL
 BE DISTRIBUTED.
   § 4.  Section 1367-a of the racing, pari-mutuel wagering and  breeding
 law is amended by adding a new subdivision 8 to read as follows:
   8.  (A)  FOR  PURPOSES  OF  THIS SUBDIVISION, AN "AFFILIATE AGREEMENT"
 SHALL MEAN AN AGREEMENT ENTERED INTO BETWEEN AN AFFILIATE AND AN  OPERA-
 TOR, MOBILE SPORTS WAGERING OPERATOR, OR MOBILE SPORTS WAGERING LICENSEE
 TO  LOCATE  SELF-SERVICE  SPORTS BETTING KIOSKS THAT ARE OWNED, OPERATED
 AND MAINTAINED BY THE OPERATOR,  MOBILE  SPORTS  WAGERING  OPERATOR,  OR
 MOBILE  SPORTS  WAGERING LICENSEE, AND CONNECTED VIA THE INTERNET TO THE
 MOBILE SPORTS WAGERING OPERATOR OR LICENSEE'S  SERVER OR OTHER EQUIPMENT
 USED TO ACCEPT MOBILE SPORTS WAGERS AT A LICENSED GAMING FACILITY PURSU-
 ANT TO THIS SECTION UPON THE PREMISES  OF  THE  AFFILIATE.    AUTHORIZED
 SPORTS  BETTORS  MAY  PLACE ACCOUNT WAGERS, PLACE AND REDEEM NON-ACCOUNT
 CASH WAGERS, AND DEPOSIT AND WITHDRAW ACCOUNT FUNDS AT SUCH KIOSKS.
 A. 8538--A                          3
 
   (B) ALL AFFILIATE AGREEMENTS SHALL BE SUBJECT TO  REGULATIONS  PROMUL-
 GATED  BY THE COMMISSION AND MUST BE APPROVED BY THE COMMISSION PRIOR TO
 TAKING EFFECT. ANY SUCH AFFILIATE AGREEMENT SHALL INCLUDE A PLAN FOR THE
 TIMELY PAYMENT OF LIABILITIES DUE TO THE AFFILIATE UNDER THE  AGREEMENT;
 PROVIDED,  HOWEVER,  THAT SUCH PAYMENT OF LIABILITIES RELATED TO A WAGER
 SHALL TAKE PLACE NO LATER THAN SIXTY DAYS AFTER A WAGER IS RECEIVED AT A
 KIOSK; AND PROVIDED FURTHER, THAT THE COMMISSION SHALL NOT  APPROVE  ANY
 SUCH  AGREEMENT  BETWEEN A MOBILE SPORTS WAGERING OPERATOR AND A PROFES-
 SIONAL SPORTS STADIUM OR ARENA UNTIL SIX MONTHS AFTER THE EFFECTIVE DATE
 OF THIS PARAGRAPH.  FOR PURPOSES OF THIS PARAGRAPH, "LIABILITIES"  SHALL
 NOT INCLUDE ANY POTENTIAL WINNINGS.
   §  5.  This  act shall take effect on the ninetieth day after it shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal of any rule or regulation necessary  for  the  implementation  of
 this  act  on its effective date are authorized to be made and completed
 on or before such effective date.