S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3562
 
                        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 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
 WAGERING  ON  THE  FORM  OF RACING INVOLVED IN THE RELEVANT HORSE RACING
 EVENT AND SUBJECT TO THE APPROVAL OF THE COMMISSION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06819-01-3
 A. 3562                             2
              

 
   § 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.
   (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
 A. 3562                             3
 
 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.