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History
- Substituted by A2329A
- Ordered to third reading cal.1428
- Committee discharged and committed to rules
- Print number 2433a
- Amend and recommit to finance
- Reported and committed to finance
- Referred to racing, gaming and wagering
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Authorizes racetracks and off-track betting corporations to offer rebates on pari-mutuel wagers made by bettors and to horse racing patrons
Signed by Governor · Sponsor J. Gary Pretlow
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's memo
BILL NUMBER:S2433Addd
Purpose
The purpose of this bill is to clearly authorize in law the ability of host racetracks, simulcast racetracks, and regional off-track betting corporations (OTBS) to offer long term rebate and fan appreciation benefits to those racing fans who attend race meets, preferred customers and to volume bettors. Under current law, while the State Gaming Commission can authorize event based or other very short term rebate or fan appreciation programs, there are no standards for establishing successful long term rebate programs that can effectively bring more race fans to the track. Bringing more fans to the race tracks can help to make the sport of racing a more exciting time for all participants.
This bill establishes a statutory framework to authorize the approval of such long term rebate programs and establish guidelines for the approval of such rebate programs by the State Gaming Commission (Commission). Adopting this bill should help to provide New York race track applicants with parameters in which to draft applications to the Commission for approval to establish systemic long range rebate programs to encourage attendance at race tracks or other gaming facilities. These types of long term rebate or fan appreciation programs are authorized and conducted by many out-of-state racing forums, but are not clearly sanctioned in New York law.
Read the full memo (720 words)
Summary of provisions
Section 1: Adds Racing & Wagering Law section 109-b to clearly establish in the law the ability of host racetracks and OTBs to establish long term rebate or fan appreciation programs that can last for an entire racing season or calendar year for new or preferred customers who attend host race track meets or bet on such events. 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 Commission must approve of the rebate programs and such programs can last up to at least one year, but may be approved for longer periods of time upon annual review by the Commission. This bill gives reasonable latitude to the Commission to establish and approve of rebate programs so that rebate program applications and approval of such programs can quickly change to reflect the betting practices within the racing industry.
There are several conditions that the applicant must abide by when administering any rebate or fan appreciation programs to protect consumer interests. 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.
Existing law
There is currently no statutory framework to assist a racetrack or OTB to develop and implement long term rebate programs that can be approved by the Commission.
Justification
Many off-shore and out of state betting, houses are offering rebate or fan appreciation programs to encourage patronage of their racing events. Off shore betting houses have the freedom to establish long term betting rebate programs to secure and retain a loyal customer base. Under New York law, New York Producers are not clearly allowed to establish entire race season or annual betting rebate programs to help them secure and retain a loyal customer base. These out-of-state 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. Further, while the Commission has authorized some rebate programs, they tend to be single event or short term programs and not the long term programs that are needed to maintain a strong fan base.
Legislative history
This bill is somewhat similar to S. 577-A of 2007 which also attempted to address the emerging issue of betting rebates. While this bill was vetoed by Governor Spitzer, this current bill was revised to address the concerns that were raised by that veto message. Further, this bill was amended to conform to the new statutory frame work established when forming the new State Gaming Commission. 2012 - S. 6758 - Reported to Senate Finance Committee
Fiscal implications
None.
EFFECTIVE DATE:;
180 days after it shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.