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S6405Senate2017-2018 SessionSame asA7925

Change Lottery Payouts at Racetracks

Official title

“Relates to the disposition of vendor fees for the operation of video lottery gaming at certain race tracks”

Sponsor John J. BonacicSD-42+1 co-sponsorAffects Finance
Status
In Assembly Committee
Ways And Means
Impact
5/10
Moderate
Passage
0%

Bill progress

Step 5 of 7

In Assembly · Ways And Means

What's happening

This bill removes limits on vendor fee allocations from video lottery gaming at certain racetracks, allowing full funds to support racing and related operations.

Why it matters

  1. Removes caps on funding. The bill eliminates limits that previously capped how much of the vendor fee from video lottery terminals (VLTs) could go to purses, breeding funds, capital improvements, and racing operations at major New York thoroughbred tracks, regardless of prior-year levels or inflation adjustments.

  2. Potential for increased investment. By allowing all vendor fee funds to remain dedicated to racing-related uses, the bill could significantly raise available resources for horse racing purses, facility upgrades, and operational expenses, which may improve the competitiveness and attractiveness of New York’s racing industry.

  3. Shifts state revenue expectations. Previously, any excess funds above a calculated threshold were returned to the state commission; this change ensures that all such funds now stay within the racing and breeding ecosystem, possibly reducing the amount flowing back to the state’s general funds.

  4. Impacts on stakeholders. The measure could benefit horse owners, breeders, track operators, and related employees by potentially boosting prize money, job security, and incentives for local investment, but it might also prompt debate about the balance between supporting the racing industry and other public funding priorities.

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Who cares

Headline styles

Change Lottery Payouts at Racetracks

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
John J. Bonacic

Senator · Senate District 42

Chair, JudiciaryChair, Racing, Gaming And Wagering

History

  1. Referred to ways and means
  2. Delivered to assembly
  3. Passed senateVote 59–1
  4. Ordered to third reading cal.2048
  5. Committee discharged and committed to rules
  6. Reported and committed to finance
  7. Referred to racing, gaming and wagering
  8. Returned to senate
  9. Died in assembly
  10. Referred to ways and means
  11. Delivered to assembly
  12. Passed senateVote 60–2
Show 4 earlier actions
  1. Ordered to third reading cal.2134
  2. Committee discharged and committed to rules
  3. Reported and committed to finance
  4. 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.

A7925Assembly

Change Racetrack Lottery Fee Rules

In Assembly Committee · Ways And Means · Sponsor J. Gary Pretlow

Impact 5 · Moderate0% to pass

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

6405

2017-2018 Regular Sessions

IN SENATE

May 17, 2017

Introduced by Sens. BONACIC, MARCHIONE -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wagering

AN ACT to amend the tax law, in relation to the disposition of vender fees for the operation of video lottery gaming at certain race tracks

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision f-1 of section 1612 of the tax law, as amended by chapter 175 of the laws of 2013, is amended to read as follows:

f-1. As consideration for operation of video lottery gaming facility located in the county of Nassau or Suffolk and operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, the division shall cause the investment in the racing industry of the following percentages of the vendor fee to be deposited or paid as follows:

1. Two and three tenths percent of the total wagered after payout of prizes for the purpose of enhancing purses at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain purse support from video lottery gaming at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course at the same level realized in two thousand thirteen, to be adjusted by the consumer price index for all urban consumers, as published annually by the United States department of labor, bureau of labor statistics, shall instead be returned to the commission].

2. five tenths percent of the total wagered after payout of prizes for the appropriate breeding fund for the manner of racing at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain payments from video lottery gaming at Aqueduct racetrack at the same level realized in two thousand thirteen, to be adjusted by the

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD11784-01-7

S. 6405 2

consumer price index for all urban consumers, as published annually by the United States department of labor, bureau of labor statistics, shall instead be returned to the commission].

3. one and three tenths percent of the total revenue wagered after payout of prizes to be deposited into an account of the franchised corporation established pursuant to section two hundred six of the racing, pari-mutuel wagering and breeding law to be used for capital expenditures in maintaining and upgrading Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain payments for capital expenditures from video lottery gaming at Aqueduct racetrack at the same level realized in two thousand thirteen, to be adjusted by the consumer price index for all urban consumers, as published annually by the United States department of labor, bureau of labor statistics, shall instead be returned to the commission].

4. Nine tenths percent of the total revenue wagered after payout for prizes to be deposited into an account of the franchised corporation established pursuant to section two hundred six of the racing, pari-mutuel wagering and breeding law to be used for general thoroughbred racing operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga race course[, provided, however, that any amount that is in excess of the amount necessary to maintain payments for general thoroughbred racing operations from video lottery gaming at Aqueduct racetrack at the same level realized in two thousand thirteen, to be adjusted by the consumer price index for all urban consumers, as published annually by the United States department of labor, bureau of labor statistics, shall instead be returned to the commission].

§ 2. This act shall take effect immediately.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to amend the tax law, in relation to the disposition of vender fees for the operation of video lottery gaming at certain race tracks

Purpose

To ensure that racing industry support payments from video lottery terminals located in Suffolk county and those located at Aqueduct racetrack pursuant to an agreement with Nassau Off-Track Betting Corporation, are made to the appropriate entities.

Summary of provisions

Section 1:Amends subdivision f-1 of section 1612 of the tax law to remove the provision that racing support payments are only made if the payments to these entities from video lottery gaming at Aqueduct drops below 2013 levels as adjusted for inflation.

Section 2:Effective date.

Justification

As a result of a provision in the 2016-17 State budget, video lottery terminals (vlts) located at the vlt facility at Aqueduct racetrack have different tax rates based upon whether they are designated as being controlled by Resorts World New York (RWNY) or Nassau Off Track Betting Corporation (NOTB). Further, the vlts designated as being controlled by NOTB only make racing industry support payments if the racing industry support payments made by machines designated as being controlled by RWNY drop below 2013 levels. This same clause also applies to racing industry support payments from the vlt facility operated by Suffolk Off-Track Betting Corporation. This bill ensures that the NOTB machines, and the machines operated by Suffolk Off-Track Betting Corporation, will make their racing industry support payments regardless of the performance of the RWNY machines.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.