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SECTION 1612
Disposition of revenues
Tax (TAX) CHAPTER 60, ARTICLE 34
§ 1612. Disposition of revenues. a. The division shall pay into an
account, to be known as the lottery prize account, under the joint
custody of the comptroller and the commissioner, within one week after
collection of sales receipts from a lottery game, such moneys necessary
for the payment of lottery prizes but not to exceed the following
percentages, plus interest earned thereon:

(1) sixty percent of the total amount for which tickets have been sold
for a lawful lottery game introduced on or after the effective date of
this paragraph, subject to the following provisions:

(A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:

(i) if the licensee does not hold a license issued pursuant to the
alcoholic beverage control law to sell alcoholic beverages for
consumption on the premises, then the premises must have a minimum
square footage greater than two thousand five hundred square feet;

(ii) notwithstanding the foregoing provisions, television equipment
that automatically displays the results of such drawings may be
installed and used without regard to the square footage if such premises
are used as:

(I) a commercial bowling establishment, or

(II) a facility authorized under the racing, pari-mutuel wagering and
breeding law to accept pari-mutuel wagers;

(B) the rules for the operation of such game shall be as prescribed by
regulations promulgated and adopted by the division, provided however,
that such rules shall provide that no person under the age of twenty-one
may participate in such games on the premises of a licensee who holds a
license issued pursuant to the alcoholic beverage control law to sell
alcoholic beverages for consumption on the premises; and, provided,
further, that such regulations may be revised on an emergency basis not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph; or

(2) sixty-four and one-fourth percent of the total amount for which
tickets have been sold for the "Instant Cash" game in which the
participant purchases a preprinted ticket on which dollar amounts or
symbols are concealed on the face or the back of such ticket, provided
however up to five new games may be offered during the fiscal year,
seventy-four and one-fourth percent of the total amount for which
tickets have been sold for such five games in which the participant
purchases a preprinted ticket on which dollar amounts or symbols are
concealed on the face or the back of such ticket; or

(3) fifty-five percent of the total amount for which tickets have been
sold for any joint, multi-jurisdiction, and out-of-state lottery except
as otherwise provided in paragraph one of subdivision b of this section
for any joint, multi-jurisdiction, out-of-state video lottery gaming; or

(4) fifty percent of the total amount for which tickets have been sold
for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete
games in which the participants select no more than three or four of
their own numbers to match with three or four numbers drawn by the
commission for purposes of determining winners of such games, (B) "Pick
10", offered no more than twice daily, in which participants select from
a specified field of numbers a subset of ten numbers to match against a
subset of numbers to be drawn by the commission from such field of
numbers for the purpose of determining winners of such game, (C) "Take
5", offered no more than twice daily, in which participants select from
a specified field of numbers a subset of five numbers to match against a
subset of five numbers to be drawn by the commission from such field of
numbers for purposes of determining winners of such game; or

(5) forty percent of the total amount for which tickets have been sold
for: (A) "Lotto", offered no more than twice daily, a discrete game in
which all participants select a specific subset of numbers to match a
specific subset of numbers, as prescribed by rules and regulations
promulgated and adopted by the commission, from a larger specific field
of numbers, as also prescribed by such rules and regulations and (B)
with the exception of the game described in paragraph one of this
subdivision, such other state-operated lottery games that the commission
may introduce, offered no more than twice daily, commencing on or after
forty-five days following the official publication of the rules and
regulations for such game.

(6) the commission shall make a report on the revenues derived from
the additional lottery drawings pursuant to paragraphs four and five of
this subdivision and shall submit such report to the governor, the
speaker of the assembly, and the temporary president of the senate by
the first day of March two thousand twenty-two.

The moneys in the lottery prize account shall be paid out of such
account on the audit and warrant of the comptroller on vouchers
certified or approved by the director or his or her duly designated
official.

Prize money derived from ticket sales receipts of a particular game
and deposited in the lottery prize account in accordance with the
percentages set forth above may be used to pay prizes in such game.
Balances in the lottery prize account identified by individual games may
be carried over from one fiscal year to the next to ensure proper payout
of games.

b. 1. Notwithstanding section one hundred twenty-one of the state
finance law, on or before the twentieth day of each month, the
commission shall pay into the state treasury, to the credit of the state
lottery fund created by section ninety-two-c of the state finance law,
not less than forty-five percent of the total amount for which tickets
have been sold for games defined in paragraph five of subdivision a of
this section during the preceding month, not less than forty-five
percent of the total amount for which tickets have be sold for games
defined in paragraph four of subdivision a of this section during the
preceding month, not less than thirty-five percent of the total amount
for which tickets have been sold for games defined in paragraph three of
subdivision a of this section during the preceding month, not less than
twenty and three-fourths percent of the total amount for which tickets
have been sold for games defined in paragraph two of subdivision a of
this section during the preceding month, provided however that for games
with a prize payout of seventy-four and one-fourth percent of the total
amount for which tickets have been sold, the commission shall pay not
less than ten and three-fourths percent of sales into the state treasury
and not less than twenty-five percent of the total amount for which
tickets have been sold for games defined in paragraph one of subdivision
a of this section during the preceding month; and the balance of the
total revenue after payout for prizes for games known as "video lottery
gaming," including any joint, multi-jurisdiction, and out-of-state video
lottery gaming, * (i) less ten percent of the total revenue wagered
after payout for prizes to be retained by the division for operation,
administration, and procurement purposes, provided, however, a vendor
track located within Oneida county, within fifteen miles of a Native
American class III gaming facility, that has maintained at least ninety
percent of full-time equivalent employees as they employed in the year
two thousand sixteen, may, for each quarter this subparagraph is
effective, withhold up to seventy-five percent of such funds for
operational expenses provided such vendor track has filed an affirmation
with the gaming commission certifying that this additional amount is
necessary to raise revenues to the same level as expenses during the
previous quarter;

* NB Effective until June 21, 2023
* (i) less ten percent of the total revenue wagered after payout for
prizes to be retained by the division for operation, administration, and
procurement purposes;

* NB Effective June 21, 2023

(ii) less a vendor's fee the amount of which is to be paid for serving
as a lottery agent to the track operator of a vendor track or the
operator of any other video lottery gaming facility authorized pursuant
to section sixteen hundred seventeen-a of this article. The amount of
the vendor's fee shall be calculated as follows:

(A) when a vendor track is located within development zone one as
defined by section thirteen hundred ten of the racing, pari-mutuel
wagering and breeding law, at a rate of thirty-nine and one-half percent
of the total revenue wagered at the vendor track after payout for prizes
pursuant to this chapter;

(B) when a vendor track is located within zone two as defined by
section thirteen hundred ten of the racing, pari-mutuel wagering and
breeding law, the rate of the total revenue wagered at the vendor track
after payout for prizes pursuant to this chapter shall be as follows:

(1) forty-three and one-half percent for a vendor track located more
than fifteen miles but less than fifty miles from a destination resort
gaming facility authorized pursuant to article thirteen of the racing,
pari-mutuel wagering and breeding law;

(2) forty-nine percent for a vendor track located within fifteen miles
of a destination resort gaming facility authorized pursuant to article
thirteen of the racing, pari-mutuel wagering and breeding law;

(3) fifty-one percent for vendor track located more than fifteen miles
but less than fifty miles from a Native American class III gaming
facility as defined in 25 U.S.C. §2703(8);

(4) fifty-six percent for a vendor track located within fifteen miles
of a Native American class III gaming facility as defined in 25 U.S.C
§2703(8);

(5) forty-nine percent for a video lottery gaming facility authorized
pursuant to paragraph five of subdivision a of section sixteen hundred
seventeen-a of this article;

(B-1) Notwithstanding subparagraph (B) of this paragraph, for the
period commencing on April first, two thousand nineteen and ending on
March thirty-first, two thousand twenty, for a vendor track that is
located within Ontario County, such vendor fee shall be thirty-seven and
one-half percent of the total revenue wagered at the vendor track after
payout for prizes pursuant to this chapter;

(B-2) Notwithstanding subparagraph (B) of this paragraph, for the
period commencing on April first, two thousand nineteen and ending on
March thirty-first two thousand twenty, for a vendor track that is
located within Saratoga County, such vendor fee shall be thirty-nine and
one-half percent of the total revenue wagered at the vendor track after
payout for prizes pursuant to this chapter;

(C) when a video lottery facility is located at Aqueduct racetrack, at
a rate of fifty percent of the total revenue wagered at the video
lottery gaming facility after payout for prizes pursuant to this
chapter;

(D) when a video lottery gaming facility is located in either Nassau
or Suffolk counties and is operated by a corporation established
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.

(iii) less any additional vendor's fees. Additional vendor's fees
shall be calculated as follows:

(A) when a vendor track is located within region one and is located
within Orange county or region two of development zone two, as such zone
is defined in section thirteen hundred ten of the racing, pari-mutuel
wagering and breeding law, or is located within region six of such
development zone two and is located within Ontario county, the
additional vendor fee received by the vendor track shall be calculated
pursuant to subclause one of this clause; provided, however, such
additional vendor fee shall not exceed ten percent.

(1) The additional vendor fee is a percentage of the total revenue
wagered at the vendor track after payout for prizes pursuant to this
chapter. That percentage is calculated by subtracting the effective tax
rate on all taxable gross gaming revenue paid by a gaming facility
within the same region as the vendor track from the percentage that is
ninety percent less than the percentage of the vendor track's vendor
fee. For purposes of this clause, Seneca and Wayne counties shall be
deemed to be located within region six of development zone two.

(2) The additional vendor fee paid pursuant to this clause shall
commence with the state fiscal year beginning on April first, two
thousand nineteen and shall be paid to a vendor track no later than
ninety days after the close of the fiscal year. The additional vendor
fee authorized by this clause shall only be applied to revenue wagered
at a vendor track while a gaming facility in the same region as that
vendor track is open and operating pursuant to an operation certificate
issued pursuant to section thirteen hundred thirty-one of the racing,
pari-mutuel wagering and breeding law.

* (B) for a vendor track that is located within Oneida county, within
fifteen miles of a Native American class III gaming facility, such
additional vendor fee shall be six and four-tenths percent of the total
revenue wagered at the vendor after payout for prizes pursuant to this
chapter. The vendor track shall forfeit this additional vendor fee for
any time period that the vendor track does not maintain at least ninety
percent of full-time equivalent employees as they employed in the year
two thousand sixteen.

* NB Repealed March 31, 2023

1-a. (i) Notwithstanding any provision of law to the contrary, any
operators of a vendor track or the operators of any other video lottery
gaming facility eligible to receive a capital award as of December
thirty-first, two thousand eighteen shall deposit from their vendor fee
into a segregated account an amount equal to four percent of the first
sixty-two million five hundred thousand dollars of revenue wagered at
the vendor track after payout for prizes pursuant to this chapter to be
used exclusively for capital investments, except for Aqueduct, which
shall deposit an amount equal to four percent of all revenue wagered at
the video lottery gaming facility after payout for prizes pursuant to
this chapter into a segregated account for capital investments.

(ii) Vendor tracks and video lottery gaming facilities shall be
permitted to withdraw funds for projects approved by the commission to
improve the facilities of the vendor track or video lottery gaming
facility which enhance or maintain the video lottery gaming facility
including, but not limited to hotels, other lodging facilities,
entertainment facilities, retail facilities, dining facilities, events
arenas, parking garages and other improvements and amenities customary
to a gaming facility, provided, however, the vendor tracks and video
lottery gaming facilities shall be permitted to withdraw funds for
unreimbursed capital awards approved prior to the effective date of this
subparagraph.

(iii) Any proceeds from the divestiture of any assets acquired through
these capital funds or any prior capital award must be deposited into
this segregated account, provided that if the vendor track or video
lottery gaming facility ceases use of such asset for gaming purposes or
transfers the asset to a related party, such vendor track or video
lottery gaming facility shall deposit an amount equal to the fair market
value of that asset into the account.

(iv) In the event a vendor track or video lottery gaming facility
ceases gaming operations, any balance in the account along with an
amount equal to the value of all remaining assets acquired through this
fund or prior capital awards shall be returned to the state for deposit
into the state lottery fund for education aid, except for Aqueduct,
which shall return to the state for deposit into the state lottery fund
for education aid all amounts in excess of the amount needed to fund a
project pursuant to an agreement with the operator to construct an
expansion of the facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million dollars
and any subsequent amendments to such agreement.

(v) The comptroller or his legally authorized representative is
authorized to audit any and all expenditures made out of these
segregated capital accounts.

(vi) Notwithstanding subparagraphs (i) through (v) of this paragraph,
a vendor track located in Ontario county may withdraw up to two million
dollars from this account for the purpose of constructing a turf course
at the vendor track and may withdraw up to six million dollars in
calendar year two thousand nineteen for the purpose of covering ongoing
operating expenses.

(vii) Notwithstanding subparagraphs (i) through (vi) of this
paragraph, a vendor track located within Saratoga county may withdraw up
to three million dollars in calendar year two thousand nineteen for the
purpose of covering ongoing operating expenses.

(viii) Any balance remaining in the capital award account of a vendor
track or operator or any other video lottery gaming facility as of March
thirty-first, two thousand nineteen shall be transferred for deposit
into a segregated account established by this subparagraph.

1-b. Notwithstanding any provision of law to the contrary, free play
allowance credits authorized by the division pursuant to subdivision i
of section sixteen hundred seventeen-a of this article shall not be
included in the calculation of the total amount wagered on video lottery
games, the total amount wagered after payout of prizes, the vendor fees
payable to the operators of video lottery gaming facilities, fees
payable to the division's video lottery gaming equipment contractors, or
racing support payments.

1-c. Notwithstanding any provision of law to the contrary, the
operator of a vendor track or the operator of any other video lottery
gaming facility shall fund a marketing and promotion program out of the
vendor's fee. Each operator shall submit an annual marketing plan for
the review and approval of the commission and any other required
documents detailing promotional activities as prescribed by the
commission. The commission shall have the right to reject any
advertisement or promotion that does not properly represent the mission
or interests of the lottery or its programs.

2. As consideration for the operation of a video lottery gaming
facility, 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 authorized 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 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
racetrack, 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 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 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.

3. Nothing in paragraph two of this subdivision shall affect any
agreement in effect on or before the effective date of this paragraph,
except that the obligation to pay funds to the gaming commission to
promote and ensure equine health and safety and the obligation to pay
funds 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 shall supersede
any provision to the contrary in any such agreement.

c. 1. The specifications for video lottery gaming, including any
joint, multi-jurisdiction, and out-of-state video lottery gaming, shall
be designed in such a manner as to pay prizes that average no less than
ninety percent of sales.

2. Of the ten percent retained by the division for administrative
purposes, any amounts beyond that which are necessary for the operation
and administration of this pilot program shall be deposited in the
lottery education account.

d. Notwithstanding any law, rule or regulation to the contrary, any
successor to the New York Racing Association, Inc. with respect to the
operation and maintenance of video lottery gaming at Aqueduct racetrack
shall be deemed the successor to the New York Racing Association, Inc.
for purposes of being subject to existing contracts and loan agreements,
if any, entered into by the New York Racing Association, Inc. directly
related to the construction, operation, management and distribution of
revenues of the video lottery gaming facility at Aqueduct racetrack.

e. The video lottery gaming operator selected to operate a video
lottery terminal facility at Aqueduct will be subject to a memorandum of
understanding between the governor, temporary president of the senate
and the speaker of the assembly. Notwithstanding subparagraph (i) of
paragraph a of subdivision eight of section two hundred twelve of the
racing, pari-mutuel wagering and breeding law, the state, pursuant to an
agreement with the video lottery gaming operator to operate a video
lottery terminal facility at Aqueduct, may authorize, as part of such
agreement or in conjunction with such agreement at the time it is
executed, additional development at the Aqueduct racing facility. The
selection will be made in consultation with the franchised corporation,
but is not subject to such corporation's approval. The franchised
corporation shall not be eligible to compete to operate or to operate a
video lottery terminal facility at Aqueduct. The state will use its best
efforts to ensure that the video lottery terminal facility at Aqueduct
is opened as soon as is practicable and will, if practicable, pursue the
construction of a temporary video lottery terminal facility at Aqueduct
subject to staying within an agreed budget for such video lottery
terminal facility and subject to such temporary facility not having an
adverse impact on opening of the permanent facility at Aqueduct. To
facilitate the opening of the video lottery gaming facility at Aqueduct
as soon as is practicable, the division of the lottery may extend the
term of any existing contract related to the video lottery system.

f. As consideration for the operation of the video lottery gaming
facility at Aqueduct racetrack, 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:

1. Six and one-half percent of the total wagered after payout of
prizes for the first year of operation of video lottery gaming at
Aqueduct racetrack, seven percent of the total wagered after payout of
prizes for the second year of operation, and seven and one-half percent
of the total wagered after payout of prizes for the third year of
operation and thereafter, for the purpose of enhancing purses at
Aqueduct racetrack, Belmont Park racetrack and Saratoga race course. 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 on a pro rata basis in accordance with the
amounts originally contributed and shall be used for the purpose of
enhancing purses at such tracks. One and one-half percent of the gross
purse enhancement amount, 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.

2. One percent of the total wagered after payout of prizes for the
first year of operation of video lottery gaming at Aqueduct racetrack,
one and one-quarter percent of the total wagered after payout of prizes
for the second year of operation, and one and one-half percent of the
total wagered after payout of prizes for the third year of operation and
thereafter, for an appropriate breeding fund for the manner of racing
conducted at Aqueduct racetrack, Belmont Park racetrack and Saratoga
race course.

3. Four percent of the total revenue wagered after payout of prizes to
be deposited into an account of the franchised corporation established
pursuant to section two hundred six of the racing, pari-mutuel wagering
and breeding law to be used for capital expenditures in maintaining and
upgrading Aqueduct racetrack, Belmont Park racetrack and Saratoga race
course. Capital expenditures may include funding the construction of and
initially equipping a state-based equine drug testing and research
laboratory to be used pursuant to subdivision seven of section nine
hundred two of the racing, pari-mutuel wagering and breeding law.

4. Three percent of the total revenue wagered after payout for prizes
to be deposited into an account of the franchised corporation
established pursuant to section two hundred six of the racing,
pari-mutuel wagering and breeding law to be used for general
thoroughbred racing operations at Aqueduct racetrack, Belmont Park
racetrack and Saratoga race course.

5. Paragraphs one, two, three and four of this subdivision shall be
known collectively as the "racing support payments".

f-1. As consideration for operation of video lottery gaming facility
located in the county of Nassau or Suffolk 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:

1. Two and three tenths percent of the total wagered after payout of
prizes for the purpose of enhancing purses at Aqueduct racetrack,
Belmont Park racetrack and Saratoga race course, provided, however, that
any amount that is in excess of the amount necessary to maintain purse
support from video lottery gaming at Aqueduct racetrack, Belmont Park
racetrack and Saratoga race course at the same level realized in two
thousand thirteen, to be adjusted by the consumer price index for all
urban consumers, as published annually by the United States department
of labor, bureau of labor statistics, shall instead be returned to the
commission.

2. five tenths percent of the total wagered after payout of prizes for
the appropriate breeding fund for the manner of racing at Aqueduct
racetrack, Belmont Park racetrack and Saratoga race course, provided,
however, that any amount that is in excess of the amount necessary to
maintain payments from video lottery gaming at Aqueduct racetrack at the
same level realized in two thousand thirteen, to be adjusted by the
consumer price index for all urban consumers, as published annually by
the United States department of labor, bureau of labor statistics, shall
instead be returned to the commission.

3. one and three tenths percent of the total revenue wagered after
payout of prizes to be deposited into an account of the franchised
corporation established pursuant to section two hundred six of the
racing, pari-mutuel wagering and breeding law to be used for capital
expenditures in maintaining and upgrading Aqueduct racetrack, Belmont
Park racetrack and Saratoga race course, provided, however, that any
amount that is in excess of the amount necessary to maintain payments
for capital expenditures from video lottery gaming at Aqueduct racetrack
at the same level realized in two thousand thirteen, to be adjusted by
the consumer price index for all urban consumers, as published annually
by the United States department of labor, bureau of labor statistics,
shall instead be returned to the commission.

4. Nine tenths percent of the total revenue wagered after payout for
prizes to be deposited into an account of the franchised corporation
established pursuant to section two hundred six of the racing,
pari-mutuel wagering and breeding law to be used for general
thoroughbred racing operations at Aqueduct racetrack, Belmont Park
racetrack and Saratoga race course, provided, however, that any amount
that is in excess of the amount necessary to maintain payments for
general thoroughbred racing operations from video lottery gaming at
Aqueduct racetrack at the same level realized in two thousand thirteen,
to be adjusted by the consumer price index for all urban consumers, as
published annually by the United States department of labor, bureau of
labor statistics, shall instead be returned to the commission.

g. In the event the state elects to construct a video lottery terminal
facility at the Aqueduct racetrack, all video lottery terminal revenues
payable to the video lottery gaming operator at the Aqueduct racetrack
remaining after payment of the racing support payments shall first be
used to repay the state's advances for (i) confirmation of the chapter
eleven plan of reorganization and cash advances for the franchised
corporation's operations following confirmation of the chapter eleven
plan of reorganization and (ii) the amount expended by the state to
construct such video lottery terminal facility at Aqueduct racetrack
pursuant to an agreement with the state. Subparagraphs (i) and (ii) of
this paragraph shall be defined as the state advance amount and the
amounts payable to the division of the lottery.

h. As consideration for the operation of a video lottery gaming
facility located in Orange county, the division shall cause the
investment in the racing industry at the following amount from the
vendor fee to be paid as follows:

As amount to the horsemen for purses at a licensed racetrack in
Sullivan county in an amount equal to eight and three-quarters percent
of the total revenue wagered at the video lottery gaming facility, after
pay out for prizes. The facility located in Orange county, as defined in
paragraph five of subdivision a of section sixteen hundred seventeen-a
of this article shall pay to the horsemen at a licensed racetrack at
Yonkers racetrack an amount to maintain purses for such horsemen at the
same dollar levels realized in two thousand eighteen, to be adjusted by
the consumer price index for all urban consumers, as published annually
by the United States department of labor bureau of labor statistics. In
addition, one and one-quarter percent of total revenue wagered at the
video lottery gaming facility after pay out for prizes, received
pursuant to clause (B) of subparagraph (ii) of paragraph one of
subdivision b of this section, shall be distributed to the appropriate
breeding fund for the manner of racing conducted by such track. In no
circumstance shall net proceeds of the lottery, including the proceeds
from video lottery gaming, be used for the payment of non-lottery
expenses of the gaming commission, administrative or otherwise.