Relates to combining the Nassau and New York city regional off-track betting corporations into the metropolitan off-track betting corporation; repealer

Summary of specific provisions

Section 1. Amends the Racing and Wager- ing Law section 501 to expand certain definitions.

Section 2. Amends the Racing and Wagering Law section 502 to establish Metropolitan OTB.

Section 3. Amends the Racing and Wagering Law section 503 to require the Metropolitan OTB to file rules and regulations with the Secretary of State.

Section 4. Amends the Racing and Wagering Law section 505 to require the Metropolitan OTB to locate its headquarters at the Time Equities Build- ing in Freeport, NY.

Section 5. Amends the Racing and Wagering Law section 507 to allow certain corporations to enter into contracts.

Section 6. Amends the Racing and Wagering Law section 516 to require revenues of the Metropolitan OTB to be distributed among the state and the county of Nassau on the basis of the proportion of the total off- track pari-mutuel wagering accepted by the corporation during the previ- ous calendar quartet that originated in the branch offices located in New York City and Nassau county.

Section 7. Amends the Racing and Wagering Law section 519 to modify the definition of "Region."

Section 9. Amends the Racing and Wagering Law section 527 to requires bills to be paid prior to disposition of the retained commission from pools resulting from regular, multiple or exotic bets.

Section 9. Repeals the Racing and Wagering Law article 6, the New York city off-track betting corporation

Section 10. Amends the Tax Law section 1617-a, to allow Belmont Park racetrack to operate video lottery gaming.

Section 11. Requires any reference to the "New York City OTB" or the "Nassau County OTB" shall refer to the "Metropolitan OTB."

Section 12. Effective date.

Justification

There is an immediate need to take action to rescue the NYC-OTB from its current economic crises and looming bankruptcy, and to take definitive steps to avoid the same fate for the Nassau-OTB. While there is a real need to effect more efficient and streamlined oper- ations, the systemic malady is with the non-business model that is foisted upon the ROTBs by the current legislative scheme whereunder each such business entity must distribute its income before its pays its bills. Unless and until that is addressed, the ROTBs will not be able to adjust to and weather economic downturns and the attendant drastic reductions in the so-called "Handles" that fund their bottom lines.

NYC-OTB and Nassau-OTB pump over a billion and a half dollars directly into the State's economy and supplies even more economic fuel thru the more than 2000 full time workers currently employed by those entities. It is estimated that approximately 70% of that work force will lose their jobs if the NYC-OTB proceeds to bankruptcy (with Nassau-OTB not far behind) if the current system is not fixed. In light of the special interests and the hard-fought nature of their respective participations in ROTE gross income, it is not practical to attempt to rework the percentages of the take-outs. However, a conversion to a business model whereby the profits are distributed after expenses will allow for both economic viability , creditor, acceptance or work-outs and an influx of new capitalization at favorable rates. In order to save jobs and a reli- able cash source that is an important element of the machine that fuels this important segment of the State's economy, the ROTB's must be allowed to pay their bills before any distributions are made.

Fiscal implications

EFFECTIVE DATE: This act shall take effect immediately.