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A00918 Summary:
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.Go to top
A00918 Actions:
BILL NO A00918 01/08/2015 referred to racing and wageringGo to top
A00918 Votes:
There are no votes for this bill in this legislative session.Go to top
A00918 Memo:
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.Go to top
A00918 Text:
S T A T E O F N E W Y O R K
________________________________________________________________________
918
2015-2016 Regular Sessions
I N A S S E M B L Y
January 8, 2015
___________
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 payments by off-track betting corporations to regional
licensed harness tracks
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Clause (E) of subparagraph 5 of paragraph b of subdivision
2 1 of section 1016 of the racing, pari-mutuel wagering and breeding law,
3 as amended by chapter 18 of the laws of 2008, is amended to read as
4 follows:
5 (E) [On] DURING THE FIRST ONE HUNDRED TWENTY days IN ANY CALENDAR YEAR
6 when a franchised corporation is not conducting a race meeting [and when
7 a licensed harness track is neither accepting wagers nor displaying the
8 signal from an in-state thoroughbred corporation or association or an
9 out-of-state thoroughbred track]:
10 (i) [Such] A licensed regional harness track shall receive in lieu of
11 any other payments on wagers placed at off-track betting facilities
12 outside the special betting district on races conducted by an in-state
13 thoroughbred racing corporation, two and eight-tenths percent on regular
14 and multiple bets during a regional meeting and one and nine-tenths
15 percent of such bets if there is no regional meeting and four and eight-
16 tenths percent on exotic bets on days on which there is a regional meet-
17 ing and three and four-tenths percent of such bets if there is no
18 regional meeting.
19 (ii) [Such] A licensed regional harness track shall receive [one and
20 one-half] THREE-QUARTERS OF ONE per centum on total regional handle on
21 races conducted at out-of-state or out-of-country thoroughbred tracks.
22 (iii) In those regions in which there is more than one licensed
23 regional harness track, [if no track is accepting wagers or displaying
24 the live simulcast signal from the out-of-state track,] the total sum
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05464-01-5
A. 918 2
1 shall be divided among the tracks in proportion to the ratio the wagers
2 placed on races conducted by each track bears to the corporation's total
3 in-region harness handle. [If one or more tracks are accepting wagers or
4 displaying the live simulcast signal, the total amount shall be divided
5 among those tracks not accepting wagers or displaying the simulcast
6 signal for an out-of-state track or in-state thoroughbred corporation or
7 association.]
8 S 2. Clause (F) of subparagraph 6 of paragraph b of subdivision 1 of
9 section 1016 of the racing, pari-mutuel wagering and breeding law, as
10 amended by chapter 18 of the laws of 2008, is amended to read as
11 follows:
12 (F) [On] DURING THE FIRST ONE HUNDRED TWENTY days IN ANY CALENDAR YEAR
13 when a franchised corporation is not conducting a race meeting [and when
14 a licensed harness track is neither accepting wagers nor displaying the
15 signal from an in-state thoroughbred corporation or association or an
16 out-of-state thoroughbred track]:
17 (i) [Such] A licensed regional harness track shall receive in lieu of
18 any other payments on wagers placed at off-track betting facilities
19 outside the special betting district on races conducted by an in-state
20 thoroughbred racing corporation, two and eight-tenths percent on regular
21 and multiple bets during a regional meeting and one and nine-tenths
22 percent of such bets if there is no regional meeting and four and eight-
23 tenths percent on exotic bets on days on which there is a regional meet-
24 ing and three and four-tenths percent of such bets if there is no
25 regional meeting.
26 (ii) [Such] A licensed regional harness track shall receive [one and
27 one-half] THREE-QUARTERS OF ONE per centum on total regional handle on
28 races conducted at out-of-state or out-of-country thoroughbred tracks.
29 (iii) In those regions in which there is more than one licensed
30 regional harness track, [if no track is accepting wagers or displaying
31 the live simulcast signal from the out-of-state track,] the total sum
32 shall be divided among the tracks in proportion to the ratio the wagers
33 placed on races conducted by each track bears to the corporation's total
34 in-region harness handle. [If one or more tracks are accepting wagers or
35 displaying the live simulcast signal, the total amount shall be divided
36 among those tracks not accepting wagers or displaying the simulcast
37 signal for an out-of-state track or in-state thoroughbred corporation.]
38 S 3. Subdivision 2 of section 1017 of the racing, pari-mutuel wagering
39 and breeding law, as amended by chapter 174 of the laws of 2013, is
40 amended to read as follows:
41 2. a. Maintenance of effort. Any off-track betting corporation which
42 engages in accepting wagers on the simulcasts of thoroughbred races from
43 out-of-state or out-of-country as permitted under subdivision one of
44 this section shall submit to the commission, for its approval, a sched-
45 ule of payments to be made in any year or portion thereof, that such
46 off-track corporation engages in nighttime thoroughbred simulcasting. In
47 order to be approved by the commission, the payment schedule shall be
48 identical to the actual payments and distributions of such payments to
49 tracks and purses made by such off-track corporation pursuant to the
50 provisions of section one thousand fifteen of this article during the
51 year two thousand two, as derived from out-of-state harness races
52 displayed after 6:00 P.M. If approved by the commission, such scheduled
53 payments shall be made from revenues derived from any simulcasting
54 conducted pursuant to this section and section one thousand fifteen of
55 this article. NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS PARA-
56 GRAPH: (I) FOR PURPOSES OF CALCULATING THE PAYMENTS TO BE MADE PURSUANT
A. 918 3
1 TO THIS PARAGRAPH FOR CALENDAR YEAR TWO THOUSAND FIFTEEN, THE AMOUNT
2 OTHERWISE PAYABLE, IF ANY, BY AN OFF-TRACK BETTING CORPORATION TO A
3 REGIONAL HARNESS TRACK SHALL BE REDUCED IN PROPORTION TO THE REDUCTION,
4 IF ANY, IN THE NUMBER OF RACING PROGRAMS CONDUCTED BY THE REGIONAL
5 HARNESS TRACK DURING TWO THOUSAND FIFTEEN COMPARED WITH THE NUMBER OF
6 RACING PROGRAMS CONDUCTED BY SUCH TRACK DURING THE TWO THOUSAND TWELVE
7 BASE CALENDAR YEAR; AND (II) NO OFF-TRACK BETTING CORPORATION SHALL HAVE
8 ANY FURTHER PAYMENT OBLIGATION PURSUANT TO THIS PARAGRAPH WITH RESPECT
9 TO CALENDAR YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND
10 SIXTEEN.
11 b. Additional payments. During each calendar year, to the extent, and
12 at such time in the event, that aggregate statewide wagering handle
13 after 7:30 P.M. on out-of-state and out-of-country thoroughbred races
14 exceeds one hundred million dollars, each off-track betting corporation
15 conducting such simulcasting shall pay to its regional harness track or
16 tracks, an amount equal to [two percent] THE FOLLOWING PERCENTAGE of its
17 proportionate share of such excess handle: FOR CALENDAR YEARS THROUGH
18 TWO THOUSAND FIFTEEN, TWO PERCENT; FOR CALENDAR YEAR TWO THOUSAND
19 SIXTEEN, ONE AND ONE-HALF PERCENT; FOR CALENDAR YEAR TWO THOUSAND SEVEN-
20 TEEN, ONE PERCENT; AND FOR CALENDAR YEAR TWO THOUSAND EIGHTEEN, ONE-HALF
21 OF ONE PERCENT. THERE SHALL BE NO FURTHER ADDITIONAL PAYMENT OBLIGATION
22 PURSUANT TO THIS PARAGRAPH FOR CALENDAR YEARS COMMENCING ON OR AFTER
23 JANUARY FIRST, TWO THOUSAND EIGHTEEN. In any region where there are two
24 or more regional harness tracks, such [two percent] PAYMENT AMOUNT shall
25 be divided between or among the tracks in a proportion equal to the
26 proportion of handle on live harness races conducted at such tracks
27 during the preceding calendar year. Fifty percent of the sum received by
28 each track pursuant to this paragraph shall be used exclusively for
29 increasing purses, stakes and prizes at that regional harness track. For
30 the purpose of determining whether such aggregate statewide handle
31 exceeds one hundred million dollars, all wagering on such thoroughbred
32 races accepted by licensed multi-jurisdictional account wagering provid-
33 ers from customers within New York state shall be excluded.
34 S 4. This act shall take effect immediately.
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