Relates to the New York city off-track betting corporation and establishes the New York city off-track betting corporation fund; repealer

Summary of provisions

Section 1. Subdivision 9 of section 602 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Section 2. Section 603 of the racing of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Section 3. Section 617 of the racing, pari-mutuel wagering and breeding law. Section 4. The opening paragraph of section 621 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Section 5. The racing, pari-mutuel wagering and breeding law amended by adding a new section 625. Section 6. Clause (E) of subparagraph 5 and clause (F) of subparagraph 6 of the paragraph b of subdivision 1 of section 1016 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008. Section 7. Section 1017 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 18 of the laws of 2008. Section 8. Subdivision 2 of section 529 of the racing, pari-mutuel wagering and breeding law. Section 9. Subdivision 6 of section 527 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Section 10. Subdivision 2 of section 610 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Section 11. Subdivision 6 of section 527 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Section 12. The racing, pari-mutuel wagering and breeding law, as amended by adding a new section 626. Section 13. The state finance law is amended by adding a new section 95-h. Section 14. The racing, pari-mutuel wagering and breeding law is

amended by adding a new section 113. Section 15. Subdivision 4 of section 606 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 115 of the laws of 2008. Sections 16. Subdivisions 4 and 5 of section 610 of the racing, pari-mutuel wagering and breeding law are REPEALED. Section 17. Sections 611,612, 613, 614,616 and 620 of the racing, pari-mutuel wagering and breeding law are REPEALED. Section 28. This act shall take effect immediately.

Budget implications

This bill would lower state finances by $5.7 million in SFY 2011-12. The $4-4 million in additional revenues from the pari-mutuel taxes and are direction of New York City's OTB payments to the state would be offset by a New York City off-track betting vendor operator fee of $2.5 million; the OTBs now keeping $3 million in un-cashed tickets that previously went to the State; and $4.6 million in reimbursements to New York City for paying New York City off track betting retiree health benefits.

Statement in support

The closing of operations of the New York City off-track betting corporation was preventable. For years the corporation has struggled, yet the current board of directors failed to address the factors that hampered the success of the corporation and failed to formulate a profitable business plan. As a public benefit corporation, integral to the New York State racing industry, and as an employer of hundreds, the failure of this corporation is felt by many. Resurrecting this corporation is necessary, but only in a manner that allows the corporation to be profitable long term.

By restructuring the corporation to allow for a vendor operator, be it an individual, partnership, or private or public corporation, the state will encourage the participation of the best and the brightest of the business world to bring new ideas and new life to this corporation. The selection process will be fair and impartial, and open to public input.

The vendor will have a vested interest in the success of the corporation, and thus better motivated to run the operation efficiently.

The demise of operations of the corporation did bring to light factors that may be unfairly burdening not only NYCOTB but the other OTBs of the state as well. This bill addresses both outdated obligations as well as unfair competition from out-of-state entities to give all OTBs in this state a better financial future.

Effective date

This act shall take effect immediately.