Senate Bill S4550

                                 
BILL NUMBER: S4550

SPONSOR: FAHY
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to distributing purse monies more equitably

 
PURPOSE OR GENERAL IDEA OF BILL:

To require the New York Racing Association to obtain written consent
from the applicable horsemen's association as it relates to the allo-
cation and distribution of purse monies.

 
SUMMARY OF PROVISIONS:

Section one amends subdivision 9 of section 208 of the racing, parimutu-
el wagering and breeding law to add a new paragraph (f).

Section two establishes the effective date.

 
              

JUSTIFICATION:

For decades, NYRA has benefitted from a unique privilege under the
Interstate Horseracing Act of 1978 ("IHA"). Unlike most track operators
throughout the country whose right to consent to an off-track betting
system accepting interstate off-track wagers hinges on the track opera-
tor having a written agreement with the applicable horsemen's group to
set forth the terms and conditions related to such consent, NYRA has no
such obligation. Instead, federal law exempts NYRA from the requirement
to negotiate basic industry terms with its horsemen, because NYRA is a
not-for-profit racing association "in a State where the distribution of
off-track betting revenues ... is set forth by State law."

This bill emulates the overarching spirit of the IHA by updating NYS law
to provide basic fairness and equity to New York horsemen by requiring
NYRA to obtain their written consent as a condition precedent to deter
mining the allocation and distribution of purse monies. This bill also
clarifies that any payment obligation required by law from the purse
accounts established pursuant to PMI, § 208 shall not be subject to the
written consent of the horsemen.

 
PRIOR LEGISLATIVE HISTORY:

A.10615 of 2024 - Referred to Racing and Wagering

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.