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BILL NO A00918
SAME AS No same as
SPONSOR Pretlow
COSPNSR
MLTSPNSR
Amd SS1016 & 1017, RWB L
Provides for payments to licensed harness tracks by regional off-track betting
corporations.
BILL NUMBER:A918
TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to payments by off-track betting
corporations to regional licensed harness tracks
PURPOSE OR GENERAL IDEA OF BILL: This bill revises the hold harmless
provisions that OTBs provide to harness tracks for the privilege of
broadcasting additional nighttime thoroughbred events at OTB parlors.
This is being done because most harness tracks now have Video Lottery
facilities which are earning harness tracks substantial profits.
Additional money retained by OTBs by this measure is to be transferred
to local governments to support their operations.
SUMMARY OF SPECIFIC PROVISIONS: Sections 1 and 2: Amend the Racing &
Wagering Law section 1016 to reduce the "dark day" (the day when NYRA
is not conducting a race meet) payment obligations applicable to
off-track betting corporations (OTBs) from I y- percent of total daily
pools on out-of-state thoroughbred races to - of 1 percent of such
pools. In addition, it eliminates the requirement that a regional
licensed harness track itself not display simulcasts of, or accept
wagering upon, such out-of-state thoroughbred races in order to be
eligible to receive, or share in the receipt of such payments from its
regional OTB. The amended payment obligations would only apply during
the first 120 days in each calendar year.
Section 3: Amends Racing & Wagering Law section 1017 to clarify that
maintenance of effort payments by regional OTBs to the licensed
harness tracks in their regions for calendar year 2012 are to be
adjusted for any reduction in the number of racing programs conducted
by any such track in that calendar year below the number of racing
programs conducted by that track during the base year 2004. This
section would also terminate such maintenance of effort obligations
for calendar years subsequent to 2013. It also reduces the additional
payment obligations of regional OTBs with respect to aggregate annual
statewide handle on nighttime thoroughbred simulcast races during a
phase-out period prior to full elimination thereof at the conclusion
of the phase-out period.
JUSTIFICATION: Chapter 62 of the Laws of 2003 amended the Racing &
Wagering Law on the acceptance of wagering upon and the display of
simulcasts of races run at out-of-state thoroughbred tracks, A
maintenance of effort obligation was imposed on OTBs, measured by the
level of commissions received by regional harness tracks in 2002 as
derived from OTB wagering on out-of-state harness races conducted
after 6 PM. The 2003 amendments also required OTBs to make
supplemental payments to the harness industry to the extent that
aggregate statewide handle on nighttime thoroughbred races exceeded
$100 million.
Since the maintenance of effort and additional payment obligations
were imposed 3 years ago, the net effect has been to reduce the
revenue retained by OTBs which could have then been transferred to
local governments. Despite the expanded wagering and simulcasting
authorizations enacted in 2003, the incremental revenue increases from
elimination of the nighttime thoroughbred simulcasting wagering
restrictions have proven to be insufficient to replace the revenue
transferred to the harness racing industry to hold them harmless for
the OTB authorization to broadcast nighttime thoroughbred racing.
Since, nearly all harness tracks are operating video lottery games,
this has helped to increase revenue for the harness tracks and purses.
However, requiring OTBs to continue the maintenance of effort and
other payments are placing inequitable burdens on the regional OTB
system. This bill would address the unintended inequities instituted
in the 2003 law and enable OTBs to retain revenue which can be
transferred to local governments.
PRIOR LEGISLATIVE HISTORY: A.3674A (2011) - referred to racing and
wagering A.6916 (2010) - referred to racing and wagering A.3647a
(2012)-referred to racing and wagering A.3333 (2014)- referred to
racing and wagering
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.
EFFECTIVE DATE: This act shall take effect immediately.
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