Provides for account wagering on simulcast horse races within and without the state

Summary of provisions

Section 1: Amends Racing & wagering Law section 1001 to add new definitions for "account wagering", "account wagering license", "dormant account", and "multi-jurisdictional account wagering provider".

Section 2: Amends Racing & Wagering Law section 1002 to grant the Racing & Wagering Board general jurisdictional powers over the conduct the new expanded account wagering activities that could be conducted under this legislation.

Section 3: Amends Racing & Wagering Law section 1003(1) to delete standards for the approval or denial of an application to conduct simulcasting in individual or group residences or other residential areas. Further, it explicitly allows any racing association or Off-track Betting corporation (OTB) to televise horse races into individual or group residences, homes or other areas in this State.

Section 4: Amends Racing & wagering Law section 1012 to revise the current law that governs telephone betting on account. This provision expands telephone betting to include the Internet, personal computers, cell phones and other forms of electronic communication. It also facilitates the ability of regional OTBs and racing associations to form partnerships to jointly offer account wagering programs.

This provision also establishes the procedures for establishing new account wagering programs by multi-jurisdictional account wagering providers. These businesses could be partnerships between in-state race producers and OTBs and out-of-state race producers. These businesses would be operated outside of New York, but licensed by another state. Such providers could accept New York race track events and encourage both in-state and out-of-state bettors to use such businesses. A portion of bets placed on such multi-state providers would be transferred to New York horse owners in purses and for New York breeding funds. This measure could expand the utilization of New York's racing signal by

out-of-state bettors and benefit the domestic industry by retaining a portion of the bets for New York's breeding funds, race tracks and horse owners.

Section 5: Amends Racing & Wagering Law section 503 to grant to regional OTBs the ability to enter into agreements to cooperatively sell and market New York racing products with domestic racing associations and enter into agreements with multi-jurisdictional account wagering providers.

Existing law

None.

Justification

This bill modernizes the telephone account wagering law to include the Internet, other personal computer systems, and cell phones. The bettor would still need to have an account to curtail underage gambling. Further, betting limits could be imposed based upon patron request.

As reported in the Senate Racing, Gaming & wagering committee Annual Reports issued in 2003, 2004, and 2005, New York's race tracks and OTBs ,need to more cooperatively offer and market New York racing products. This bill establishes a mechanism so that OTBs and race tracks can, in a cooperative manner, consolidate their simulcasting programs. This has two economic benefits. First, consolidating simulcasting programs can reduce overhead costs and reduce competition between regional OTBs for the same betting revenue. Second, more comprehensive horse racing simulcast programs would be commercially more attractive to broadcast both within New York and exported to other jurisdictions (and hence be more profitable).

New York's horse racing industry has not maximized its profits, and in NYRA's case has in fact lost substantial amounts of money over the past ten years. Legislation such as this bill would facilitate the ability to produce and market New York racing products. This, in turn, could increase horse industry profits so that OTBs would no longer be required to subsidize this business as it has done in the past. Consequently, OTBs could transfer more revenue to support local governments.

Legislative history

S.7161 of 2005/2006, Same as A.2749 of 2009 S.2313 02/18/09 01/06/10 Referred to Racing, Gaming and Wagering

Fiscal implications

None.

Local fiscal implications

None.

Effective date

Immediately.