Relates to rebates and free passes, cards, or badges to racetracks

BILL NUMBER:S3563A

Title of bill

An act to amend the racing, pari-mutuel wagering and breeding law, in relation to rebates and free passes

Purpose

The purpose of this bill is to stimulate attendance and handle at racing facilities and off track betting facilities throughout New York and clearly authorize in the law the ability of host racetracks, simulcast racetracks, and regional off-track betting corporations (OTBs) to offer rebate benefits to preferred customers and to volume bettors. Under current law. there are no standards for establishing such rebate programs. This bill creates a statutory framework in which to establish such rebate programs while simultaneously expanding the number of persons that are qualified to obtain a free pass, card or badge to enter a race track to include the general public so that race tracks can implement promotional campaigns to increase attendance at race tracks.

Summary of provisions

Section 1: Adds Racing & Wagering Law section 113 to clearly establish in the law the ability of host racetracks and OTBs to establish rebate programs for new or preferred customers. The definition of a rebate is a reduction in the takeout percentage, adding a bonus on winnings obtained, or awards of merchandise or services for certain previously designated customers. The Racing & Wagering Board must annually approve of the rebate programs.

There are conditions to approving rebate programs. The conditions are that: a disclosure of benefits of past rebate programs is required, rebates are granted solely on the amount wagered or the frequency of betting, accurate record keeping is maintained on rebate program disbursements, and the rebate programs are in the best interests of racing.

Section 2: Effective date.

Existing law

There is currently no statutory framework to assist a racetrack or OTB to develop and implement a rebate program. Furthermore, under current law, only a select group of public officers and employees engaged in the regulation of racing events and employees of the racing industry that are conducting race meets are allowed to be awarded free passes, cards or badges to enter a horse race track.

Justification

Certain off-shore and out of state betting houses are offering rebate programs for their racing events. These rebate programs may be One reason why increases in New York State betting handle has been depressed. This bill merely authorizes New York racetrack operators and OTBs to offer their patrons the same types of rebate programs that are being offered elsewhere.

Restriction of free passes is an outdated law in need of revision. Under current law, horse owners may obtain free passes, however members of the horse owner's family are precluded from receiving such passes. In addition, attendance at horse racing events has generally been in decline for the past thirty years. This measure will allow horse race track operators to issue more free passes to promote attendance of individuals at live horse racing events. Allowing the issuance of more free passes will not only increase attendance and the excitement of those horse racing events, it may encourage an increase in betting handle at such racing facilities and the patronage of restaurants located at such tracks.

Legislative history

S.3286A of 2009/2010 Held in Senate Finance Committee S.6925 of 2005/2006

Fiscal implications

None.

Local fiscal implications

None.

Effective date

Immediately.