What's happening
This bill changes the payment rates that off-track betting corporations must pay regional harness tracks for simulcast wagering, reducing and eventually eliminating these payments by 2021.
Why it matters
Significantly reduces required payments from off-track betting (OTB) corporations to regional harness tracks for simulcast wagering over several years, and eliminates them entirely after 2020. This change could impact the financial stability of harness tracks, particularly those dependent on these payments to supplement their revenues.
Directly affects funding for harness racing purses, stakes, and prizes, since half of the OTB payments are mandated to support these rewards at regional tracks. As payments decrease and ultimately end, harness racing participants—such as owners, trainers, and drivers—may see reduced earnings and incentives.
Shifts the competitive landscape between thoroughbred and harness tracks, as OTB corporations will no longer be obligated to share simulcast profits with harness tracks after 2020. This could benefit OTBs financially, but might disadvantage the harness racing sector and rural economies tied to these tracks.
Reflects a policy decision to phase out a longstanding form of industry support, signaling broader changes in how New York manages and funds its horse racing sectors. This could prompt calls for alternative funding mechanisms or legislative adjustments if negative impacts on harness racing become evident.
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Who cares
Headline styles
Lower Harness Track Simulcast Payments
Plain English, a few words. Used as the page title.
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History
- Referred to racing and wagering
- Referred to racing and wagering
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
747
2017-2018 Regular Sessions
IN ASSEMBLY
January 9, 2017
Introduced by M. of A. PRETLOW -- read once and referred to the Committee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to payments by off track betting corporations to regional harness tracks for out-of-state and out-of-country simulcasting revenue
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 2 of section 1017 of the racing, pari-mutuel wagering and breeding law, as amended by chapter 174 of the laws of 2013, is amended to read as follows:
2. [a. Maintenance of effort. Any off-track betting corporation which engages in accepting wagers on the simulcasts of thoroughbred races from out-of-state or out-of-country as permitted under subdivision one of this section shall submit to the commission, for its approval, a schedule of payments to be made in any year or portion thereof, that such off-track corporation engages in nighttime thoroughbred simulcasting. In order to be approved by the commission, the payment schedule shall be identical to the actual payments and distributions of such payments to tracks and purses made by such off-track corporation pursuant to the provisions of section one thousand fifteen of this article during the year two thousand two, as derived from out-of-state harness races displayed after 6:00 P.M. If approved by the commission, such scheduled payments shall be made from revenues derived from any simulcasting conducted pursuant to this section and section one thousand fifteen of this article.
b. Additional payments.] Payments. During each calendar year, to the extent, and at such time in the event, that aggregate statewide wagering handle after 7:30 P.M. on out-of-state and out-of-country thoroughbred races exceeds one hundred million dollars, each off-track betting corporation conducting such simulcasting shall pay to its regional harness
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04498-01-7
A. 747 2
track or tracks, an amount equal to [two percent] the following percentage of its proportionate share of such excess handle: for calendar years through two thousand seventeen, two percent; for calendar year two thousand eighteen, one and one-half percent; for calendar year two thousand nineteen, one percent; and for calendar year two thousand twenty, onehalf of one percent. There shall be no further additional payment obligation pursuant to this subdivision for calendar years commencing on or after January first, two thousand twenty-one. In any region where there are two or more regional harness tracks, such [two percent] payment amount shall be divided between or among the tracks in a proportion equal to the proportion of handle on live harness races conducted at such tracks during the preceding calendar year. Fifty percent of the sum received by each track pursuant to this [paragraph] subdivision shall be used exclusively for increasing purses, stakes and prizes at that regional harness track. For the purpose of determining whether such aggregate statewide handle exceeds one hundred million dollars, all wagering on such thoroughbred races accepted by licensed multi-jurisdictional account wagering providers from customers within New York state shall be excluded.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.