§ 1617-a. Video lottery gaming. a. The gaming commission is hereby
authorized to license, pursuant to rules and regulations to be
promulgated by the gaming commission, the operation of video lottery
gaming at;

(1) Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs
racetracks;

(2) any other racetrack licensed pursuant to article three of the
racing, pari-mutuel wagering and breeding law located in a county or
counties in which video lottery gaming has been authorized pursuant to
local law, excluding the licensed racetrack commonly referred to in
article three of the racing, pari-mutuel wagering and breeding law as
the "New York state exposition" held in Onondaga county and the
racetracks of the non-profit racing association known as Belmont Park
racetrack and the Saratoga thoroughbred racetrack;

(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
corporation 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 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
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
accompanied 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
established pursuant to section five hundred two of the racing,
pari-mutuel wagering and breeding law in the Nassau region in lieu of
the development of a facility in Nassau county as authorized by
paragraph three of 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.

(5) At a facility located in Orange county to be operated by the
entity otherwise licensed to operate video lottery gaming at Monticello
racetrack, provided that: (i) such licensed entity is no longer
operating video lottery gaming at Monticello racetrack and provided that
Monticello racetrack is conducting racing operations; (ii) such facility
in Orange county is not sited within a thirty mile radius of the video
lottery gaming facility at Yonkers racetrack; and (iii) the licensed
entity, its subsidiaries and affiliates, including the entity licensed
to operate a commercial gaming facility in Sullivan county, and the
entity licensed to operate video lottery gaming at Yonkers racetrack
enter into a mitigation agreement, to be approved by the gaming
commission, which shall include, but not be limited to, terms that
require: (A) the operator of the facility in Orange county to make an
annual payment to the entity licensed to operate video lottery gaming or
commercial gaming at Yonkers racetrack to account for the effects that
siting such facility in Orange county would likely have on the gross
gaming revenue of the entity licensed to operate at Yonkers racetrack;
(B) employment levels at the affected facilities; and (C) that upon
expiration or termination of the agreement, the authority to operate
video lottery gaming in Orange county shall cease. Notwithstanding any
other provision of this subdivision, at no time shall an entity
operating video lottery gaming in Orange county be permitted to apply
for or receive a license to operate a commercial gaming facility in that
county.

(6) Notwithstanding any other provision of law to the contrary, as a
condition of the license to operate a video lottery gaming facility
located in Orange county, such operator shall provide an annual
certification to the New York state gaming commission that the staffing
levels at a commercial gaming facility located in zone two, region one
pursuant to section thirteen hundred ten of the racing, pari-mutuel
wagering and breeding law (or any successor commercial gaming facility
located in said region) are no less than one thousand four hundred
seventy-three full-time, permanent employees. In furtherance of and
without limiting the foregoing, the licensee for the commercial gaming
facility located in zone two, region one pursuant to section thirteen
hundred ten of the racing, pari-mutuel wagering and breeding law (or any
successor commercial gaming facility located in such region) shall not
conduct any mass, involuntary layoff events that would trigger worker
adjustment and retraining notification (WARN) act notifications pursuant
to article twenty-five-A of the labor law or otherwise result in the
employment levels at such facility dropping below levels mandated by
this section. For purposes of this section, "full-time, permanent
employee" shall mean an employee who has worked at the facility for a
minimum of thirty-five hours per week for not less than four consecutive
weeks and who is entitled to receive the usual and customary fringe
benefits extended to other employees with comparable rank and duties; or
two part-time employees who have worked at the facility for a combined
minimum of thirty-five hours per week for not less than four consecutive
weeks and who are entitled to receive the usual and customary fringe
benefits extended to other employees with comparable rank and duties.

(7) The village of Monticello, Sullivan county, the town of Thompson,
Sullivan county, and Sullivan county shall continue to receive
assistance payments made pursuant to section fifty-four-l of the state
finance law.

b. Such rules and regulations shall provide, as a condition of
licensure, that racetracks to be licensed are certified to be in
compliance with all state and local fire and safety codes, that the
gaming commission is afforded adequate space, infrastructure, and
amenities consistent with industry standards for such video lottery
gaming operations as found at racetracks in other states, that racetrack
employees involved in the operation of video lottery gaming pursuant to
this section are licensed by the gaming commission and such other terms
and conditions of licensure as the gaming commission may establish.
Notwithstanding any inconsistent provision of law, video lottery gaming
at a racetrack pursuant to this section shall be deemed an approved
activity for such racetrack under the relevant city, county, town, or
village land use or zoning ordinances, rules, or regulations. No entity
licensed by the gaming commission operating video lottery gaming
pursuant to this section may house such gaming activity in a structure
deemed or approved by the division as "temporary" for a duration of
longer than eighteen-months. Nothing in this section shall prohibit the
gaming commission from licensing an entity to operate video lottery
gaming at an existing racetrack as authorized in this subdivision
whether or not a different entity is licensed to conduct horse racing
and pari-mutuel wagering at such racetrack pursuant to article two or
three of the racing, pari-mutuel wagering and breeding law.

The gaming commission shall establish standards for approval of the
temporary and permanent physical layout and construction of any facility
or building devoted to a video lottery gaming operation. In reviewing
such application for the construction or reconstruction of facilities
related or devoted to the operation or housing of video lottery gaming
operations, the gaming commission shall ensure that such facility:

(1) possesses superior consumer amenities and conveniences to
encourage and attract the patronage of tourists and other visitors from
across the region, state, and nation.

(2) has adequate motor vehicle parking facilities to satisfy patron
requirements.

(3) has a physical layout and location that facilitates access to and
from the horse racing track portion of such facility to encourage
patronage of live horse racing events that are conducted at such track.

c. The terminals authorized pursuant to paragraph four of subdivision
a of this section shall:

(i) be deemed as operated by the corporation established pursuant to
section five hundred two of the racing, pari-mutuel wagering and
breeding law in the Nassau region for the purposes of section sixteen
hundred twelve of this chapter and the distributions therefrom made as
if the video lottery devices were located in Nassau county;

(ii) consist exclusively of electronic table games, unless otherwise
approved by the gaming commission and the director of the division of
the budget; and

(iii) be individually designated as hosted.

d. Notwithstanding any law, rule or regulation to the contrary, absent
the enactment of sufficient alternative revenue sources for the
franchised corporation in a chapter of law providing a statutory plan
for the prospective not-for-profit governing structure of The New York
Racing Association, Inc., any agreement for the operation of terminals
authorized pursuant to paragraph four of subdivision a of this section
shall require the operator of video lottery gaming at Aqueduct racetrack
to maintain racing support for general thoroughbred racing operations
and 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.

e. Video lottery gaming shall only be permitted for no more than
twenty consecutive hours per day and on no day shall such operation be
conducted past 6:00 a.m.

f. The gaming commission shall promulgate such rules and regulations
as may be necessary for the implementation of video lottery gaming in
accordance with the provisions of this section and paragraph five of
subdivision a of section sixteen hundred twelve of this article.

g. All workers engaged in the construction, reconstruction,
development, rehabilitation, or maintenance of any area for the purpose
of the installation, maintenance, or removal of video lottery gaming
terminals shall be subject to the provisions of articles eight and nine
of the labor law to the extent provided in such articles.

h. The gaming commission shall not approve the construction or
alteration of any facility or building devoted to the operation or
housing of video lottery gaming until the person or entity selected to
operate such video lottery gaming shall have submitted to the gaming
commission a statement of the location of the proposed facility or
building, together with a plan of such racetrack, and plans of all
existing buildings, seating stands and other structures on the grounds
of such racetrack, in such form as the gaming commission may prescribe,
and such plans shall have been approved by the gaming commission. The
gaming commission, at the expense of the applicant, may order such
engineering examination thereof as the gaming commission may deem
necessary. Such construction or alteration may be made only with the
approval of the gaming commission and after examination and inspection
of the plans thereof and the issuance of a permit by the gaming
commission.

i. (1) The gaming commission may administer a free play allowance
program to offer players or prospective players of video lottery games
free play credits for the purpose of increasing revenues earned by the
video lottery gaming program for the support of education. For the
purposes of this subdivision, "free play allowance credit" means a
specified dollar amount that (i) may be used by a player to play a video
lottery game without paying any other consideration, and (ii) is not
used in the calculation of total revenue wagered after payout of prizes.

(2) For each video lottery gaming facility, the gaming commission
shall authorize the use of free play allowance credits if the operator
of such facility submits a written plan for the use of the free play
allowance that the gaming commission determines is designed to increase
the amount of revenue earned by video lottery gaming at such facility
for the support of education.

(3) For each video lottery facility, the annual value of the free play
allowance credits authorized for use by the operator pursuant to this
subdivision shall not exceed an amount equal to fifteen percent of the
total amount wagered on video lottery games after payout of prizes. The
gaming commission shall establish procedures to assure that free play
allowance credits do not exceed such amount.

(4) The gaming commission, in conjunction with the director of the
budget, may suspend the use of free play allowance credits authorized
pursuant to this subdivision whenever they jointly determine that the
use of free play allowance credits are not effective in increasing the
amount of revenue earned for the support of education, and such use may
not be resumed unless the operator of such facility submits a new or
revised written plan for the use of the free play allowance that the
gaming commission determines is designed more effectively to produce an
increase in the amount of revenue earned by video lottery gaming at such
facility for the support of education.

(5) Nothing in this subdivision shall be deemed to prohibit the
operator of a video lottery facility from offering free play credits to
players or prospective players of video lottery games when the value of
such free play credits is included in the calculation of the total
amount wagered on video lottery games and the total amount wagered after
payout of prizes, and the operator of such facility pays the gaming
commission the full amount due as the result of such calculations.

(6) The gaming commission may amend the contract with the provider of
the central computer system that controls the video lottery network
during the term of such contract in effect on the effective date of this
subdivision to provide additional consideration to such provider in an
amount determined by the gaming commission to be necessary to compensate
for (i) processing free play allowance transactions and (ii) system
updates and modifications otherwise needed as of such effective date.

j. Every video lottery gaming license, and every renewal license,
shall be valid for a period of five years, except that video lottery
gaming licenses issued before the effective date of this subdivision
shall be for a term expiring on the applicant's next birthday following
June thirtieth, two thousand fourteen.

The gaming commission may decline to renew any license after notice
and an opportunity for hearing if it determines that:

(1) the licensee has violated section one thousand six hundred seven
of this article;

(2) the licensee has violated any rule, regulation or order of the
gaming commission;

(3) the applicant or its officers, directors or significant
stockholders, as determined by the gaming commission, have been
convicted of a crime involving moral turpitude; or

(4) that the character or fitness of the licensee and its officers,
directors, and significant stockholders, as determined by the gaming
commission is such that the participation of the applicant in video
lottery gaming or related activities would be inconsistent with the
public interest, convenience or necessity or with the best interests of
video lottery gaming generally.

k. The gaming commission, subject to notice and an opportunity for
hearing, may revoke, suspend, and condition the license of the video
lottery gaming licensee, order the video lottery gaming licensee to
terminate the continued appointment, position or employment of officers
and directors, or order the video lottery gaming licensee to require
significant stockholders to divest themselves of all interests in the
video lottery gaming licensee.