S T A T E O F N E W Y O R K
________________________________________________________________________
3543
2023-2024 Regular Sessions
I N A S S E M B L Y
February 3, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the tax law and the racing, pari-mutuel wagering and
breeding law, in relation to the Catskill off-track betting corpo-
ration providing licensing and financing to the Monticello racetrack
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph 1 of subdivision a of section 1617-a of the tax
law, as amended by section 1 of part SS of chapter 60 of the laws of
2016, is amended to read as follows:
(1) Aqueduct, [Monticello,] Yonkers, Finger Lakes, and Vernon Downs
racetracks;
§ 2. Paragraphs 3 and 4 of subdivision a of section 1617-a of the tax
law, paragraph 3 as amended by chapter 811 of the laws of 2022 and para-
graph 4 as added by section 1 of part SS of chapter 60 of the laws of
2016, are amended and a new paragraph 8 is added to read as follows:
(3) a maximum of two facilities, which shall be vendors for all
purposes under this article established within region three of zone one
as defined by section one thousand three hundred ten of the racing,
pari-mutuel wagering and breeding law, one each operated by a corpo-
ration 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] SECTION one thousand eight or one thousand nine of the
racing, pari-mutuel wagering and breeding law, provided however, that in
the Nassau region such facility shall not exceed one thousand video
lottery gaming devices and in the Suffolk region such facility shall not
exceed two thousand video lottery gaming devices; [and]
(4) Aqueduct racetrack, within the lottery terminal facility, pursuant
to an agreement between the corporation established pursuant to section
five hundred two of the racing, pari-mutuel wagering and breeding law in
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08173-01-3
A. 3543 2
the Nassau region and the operator of video lottery gaming at Aqueduct
racetrack, when such agreement is approved by the gaming commission and
as long as such agreement is in place, and when such agreement is accom-
panied by a detailed spending plan for the corporation established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law in the Nassau region, which includes a plan for the
timely payment of liabilities due to the franchised corporation, and
when such video lottery devices are hosted by the operator of video
lottery gaming at Aqueduct racetrack on behalf of the corporation estab-
lished pursuant to section five hundred two of the racing, pari-mutuel
wagering and breeding law in the Nassau region in lieu of the develop-
ment of a facility in Nassau county as authorized by paragraph three of
THIS subdivision [a of this section]. Such agreement reached by the
parties shall identify the agency principally responsible for funding,
approving or undertaking any actions of such agreement. Provided,
however, nothing in this paragraph shall infringe upon the rights of the
corporation established pursuant to section five hundred two of the
racing, pari-mutuel wagering and breeding law in the Nassau region to
develop a facility pursuant to paragraph three of this subdivision upon
the expiration, termination, or withdrawal of such agreement[.]; AND
(8) A MAXIMUM OF THREE FACILITIES, WHICH SHALL BE VENDORS FOR ALL
PURPOSES UNDER THIS ARTICLE, WITH A TOTAL OF ONE THOUSAND ONE HUNDRED
TEN VIDEO LOTTERY GAMING DEVICES IN THE COUNTY OF BROOME, CHEMUNG,
CHENANGO, DELAWARE, ORANGE, ROCKLAND, DUTCHESS, TOMPKINS, PUTNAM OR
ULSTER AND TO BE OPERATED BY A CORPORATION ESTABLISHED PURSUANT TO
SECTION FIVE HUNDRED TWO OF THE RACING, PARI-MUTUEL WAGERING AND BREED-
ING LAW, AND LOCATED WITHIN A FACILITY AUTHORIZED PURSUANT TO SECTION
ONE THOUSAND EIGHT OR ONE THOUSAND NINE OF THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW.
§ 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 of
Nassau or Suffolk operated by a corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and breed-
ing 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. ANY VIDEO LOTTERY GAMING FACILITY IN THE
CATSKILL REGION, AS DEFINED IN SECTION FIVE HUNDRED NINETEEN OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW AND TO BE OPERATED BY A
CORPORATION ESTABLISHED PURSUANT TO SECTION FIVE HUNDRED TWO OF THE
RACING, PARI-MUTUEL WAGERING AND BREEDING LAW, SHALL DEDICATE A PORTION
OF ITS VENDOR FEE FOR THE PURPOSE OF ENHANCING PURSES AT MONTICELLO
RACETRACK IN AN AMOUNT EQUAL TO EIGHT AND THREE-QUARTERS PERCENT OF THE
TOTAL REVENUE WAGERED AT THE FACILITY 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 exclu-
A. 3543 3
sively 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 racetrack, a video lottery gaming facility authorized pursu-
ant to paragraph five of subdivision a of section sixteen hundred seven-
teen-a of this article or a facility in the county of Nassau or Suffolk
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 subdivision, shall
be distributed to the appropriate breeding fund for the manner of racing
conducted by such track.
PROVIDED, FURTHER, THAT AS ADDITIONAL CONSIDERATION FOR THE OPERATION
OF VIDEO LOTTERY GAMING FACILITIES, THE CATSKILL REGIONAL OFF-TRACK
BETTING CORPORATION SHALL MAINTAIN THE SAME NUMBER OF RACE DATES AT
MONTICELLO RACETRACK BEING CONDUCTED AT THE TIME IT RECEIVES A LICENSE
TO CONDUCT HARNESS RACE MEETINGS AT SUCH RACETRACK.
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.
§ 4. Section 1612 of the tax law is amended by adding a new subdivi-
sion i to read as follows:
I. AS CONSIDERATION FOR OPERATION OF A VIDEO LOTTERY GAMING FACILITY
LOCATED IN THE COUNTIES OF BROOME, CHEMUNG, CHENANGO, DELAWARE, ORANGE,
ROCKLAND, DUTCHESS, TOMPKINS, PUTNAM, 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 VENDOR'S FEE TO BE DISTRIBUTED AS FOLLOWS AFTER THE PAY OUT OF
RACING SUPPORT PAYMENTS: (1) TWENTY PERCENT SHALL BE TRANSFERRED TO THE
COUNTY IN WHICH THE VENDOR FACILITY IS LOCATED; AND (2) THE REMAINDER
SHALL BE USED FOR PAYMENT OF THE COSTS OF THE CORPORATION'S FUNCTIONS
PURSUANT TO SECTION FIVE HUNDRED SIXTEEN OF THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW, AND THE NET REVENUE REMAINING AFTER PAYMENT
OF SUCH COSTS SHALL BE DIVIDED AMONG THE PARTICIPATING COUNTIES LISTED
IN THIS PARAGRAPH ON THE BASIS OF POPULATION AS DEFINED IN PARAGRAPH B
OF SUBDIVISION TWO OF SECTION FIVE HUNDRED SIXTEEN OF THE RACING, PARI-
MUTUEL WAGERING AND BREEDING LAW.
§ 5. Section 301 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 6 to read as follows:
6. THE BOARD SHALL HAVE THE POWER TO ISSUE LICENSES TO THE CATSKILL
REGIONAL OFF-TRACK BETTING CORPORATION OR TO A SUBSIDIARY OF SAID CORPO-
RATION FOR THE PURPOSE OF CONDUCTING HARNESS RACE MEETINGS AT MONTICELLO
RACETRACK AND TO MAKE CAPITAL IMPROVEMENTS TO SAID TRACK, PROVIDED THAT
SUCH CORPORATION MEETS THE TERMS AND CONDITIONS FOR LICENSURE AS
PROVIDED UNDER THIS ARTICLE. NOTWITHSTANDING THE PROVISIONS OF ARTICLES
A. 3543 4
FIVE AND FIVE-A OF THIS CHAPTER, SAID CORPORATION SHALL BE DEEMED TO BE
A HARNESS RACING CORPORATION WITH RESPECT TO PARI-MUTUEL WAGERING
CONDUCTED AT SAID TRACK PURSUANT TO THIS CHAPTER, EXCEPT THAT NET REVEN-
UES DERIVED FROM SUCH PARI-MUTUEL WAGERING SHALL BE DISTRIBUTED AMONG
THE COUNTIES THAT PARTICIPATE IN SUCH CORPORATION ON THE BASIS OF POPU-
LATION, AS DEFINED AS THE TOTAL POPULATION IN EACH PARTICIPATING COUNTY
SHOWN BY THE LATEST PRECEDING DECENNIAL FEDERAL CENSUS OF THE CALENDAR
YEAR IN WHICH SUCH DISTRIBUTION IS TO BE MADE.
§ 6. The opening paragraph of subdivision 1 of section 527 of the
racing, pari-mutuel wagering and breeding law, as amended by chapter 243
of the laws of 2020, is amended to read as follows:
The disposition of the retained commission from pools resulting from
regular, multiple or exotic bets, as the case may be, whether placed on
races run within a region or outside a region, conducted by racing
corporations, harness racing associations or corporations, quarter horse
racing associations or corporations or races run outside the state shall
be governed by the tables in paragraphs a and b of this subdivision. The
rate denominated "state tax" shall represent the rate of a reasonable
tax imposed upon the retained commission for the privilege of conducting
off-track pari-mutuel betting, which tax is hereby levied and shall be
payable in the manner set forth in this section. Each off-track betting
corporation shall pay to the commission as a regulatory fee, which fee
is hereby levied, six-tenths of one percent of the total daily pools of
such corporation. Each corporation shall also pay twenty percent of the
breaks derived from bets on harness races and fifty percent of the
breaks derived from bets on all other races to the agriculture and New
York State horse breeding and development fund and to the thoroughbred
breeding and development fund, the total of such payments to be appor-
tioned fifty percent to each such fund. For the purposes of this
section, the New York city, Suffolk, Nassau, and the Catskill regions
shall constitute a single region and any thoroughbred track located
within the Capital District region shall be deemed to be within such
single region. A "regional meeting" shall refer to either harness or
thoroughbred meetings, or both, except that a franchised corporation
shall not be a regional track for the purpose of receiving distributions
from bets on thoroughbred races conducted by a thoroughbred track in the
Catskill region conducting a mixed meeting. With the exception of a
harness racing association or corporation first licensed to conduct
pari-mutuel wagering at a track located in Tioga, Saratoga, SULLIVAN or
Westchester county after January first, two thousand five, racing corpo-
rations first licensed to conduct pari-mutuel racing after January
first, nineteen hundred eighty-six or a harness racing association or
corporation first licensed to conduct pari-mutuel wagering at a track
located in Genesee County after January first, two thousand five, and
quarter horse tracks shall not be "regional tracks"; if there is more
than one harness track within a region, such tracks shall evenly divide
payments made pursuant to the tables in paragraphs a and b of this
subdivision when neither track is running. In the event a track elects
to reduce its retained percentage from any or all of its pari-mutuel
pools, the payments to the track holding the race and the regional track
required by paragraphs a and b of this subdivision shall be reduced in
proportion to such reduction. Nothing in this section shall be construed
to authorize the conduct of off-track betting contrary to the provisions
of section five hundred twenty-three of this article.
§ 7. This act shall take effect on the thirtieth day after it shall
have become a law.