Catskill OTB Rules Overhauled

Section 1. Paragraph 1 of subdivision a of section 1617-a of the tax law, as amended by section 1 of part SS of chapter 60 of the laws of 2016, is amended to read as follows:

(1) Aqueduct, [Monticello,] Yonkers, Finger Lakes, and Vernon Downs racetracks;

§ 2. Paragraphs 3 and 4 of subdivision a of section 1617-a of the tax law, as added by section 1 of part SS of chapter 60 of the laws of 2016, are amended and a new paragraph 5 is added to read as follows:

(3) a maximum of two facilities, which shall be vendors for all purposes under this article, neither to exceed one thousand video lottery gaming devices, established within region three of zone one as defined by section one thousand three hundred ten of the racing, parimutuel wagering and breeding law, one each operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Suffolk region and the Nassau region to be located within a facility authorized pursuant to sections one thousand eight or one thousand nine of the racing, pari-mutuel wagering and breeding law; [and]

(4) Aqueduct racetrack, within the lottery terminal facility, pursuant to an agreement between the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region and the operator of video lottery gaming at Aqueduct racetrack, when such agreement is approved by the gaming commission and

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

[ ] is old law to be omitted.

LBD09501-01-9

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as long as such agreement is in place, and when such agreement is accompanied by a detailed spending plan for the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region, which includes a plan for the timely payment of liabilities due to the franchised corporation, and when such video lottery devices are hosted by the operator of video lottery gaming at Aqueduct racetrack on behalf of the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region in lieu of the development of a facility in Nassau county as authorized by paragraph three of this subdivision [a of this section]. Such agreement reached by the parties shall identify the agency principally responsible for funding, approving or undertaking any actions of such agreement. Provided, however, nothing in this paragraph shall infringe upon the rights of the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region to develop a facility pursuant to paragraph three of this subdivision upon the expiration, termination, or withdrawal of such agreement[.]; and

(5) a maximum of three facilities, which shall be vendors for all purposes under this article, with a total of one thousand one hundred ten video lottery gaming devices in the county of Broome, Chemung, Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam or Ulster and to be operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, and located within a facility authorized pursuant to section one thousand eight or one thousand nine of the racing, pari-mutuel wagering and breeding law.

§ 3. Clause (G-1) of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as amended by chapter 175 of the laws of 2013, is amended to read as follows:

(G-1) Notwithstanding [clause] clauses (A) and (B) of this subparagraph, when a video lottery gaming facility is located in [either] the county of Broome, Chemung, Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam, Ulster, Nassau or Suffolk and is operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law at a rate of thirty-five percent of the total revenue wagered at the vendor after payout for prizes pursuant to this chapter;

§ 4. Paragraph 2 of subdivision b of section 1612 of the tax law, as amended by section 1 of part OO of chapter 59 of the laws of 2014, is amended to read as follows:

2. As consideration for the operation of a video lottery gaming facility, the division, shall cause the investment in the racing industry of a portion of the vendor fee received pursuant to paragraph one of this subdivision in the manner set forth in this subdivision. With the exception of Aqueduct racetrack or a facility in the county of Nassau or Suffolk operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, each such track shall dedicate a portion of its vendor fees, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this subdivision, for the purpose of enhancing purses at such track, in an amount equal to eight and three-quarters percent of the total revenue wagered at the vendor track after pay out for prizes. Any video lottery gaming facility in the Catskill region, as defined in section five hundred nineteen of the racing, pari-mutuel wagering and breeding law and to be operated by a corporation estab-

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lished pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, shall dedicate a portion of its vendor fee for the purpose of enhancing purses at Monticello racetrack in an amount equal to eight and three-quarters percent of the total revenue wagered at the facility after pay out for prizes. One percent of the gross purse enhancement amount, as required by this subdivision, shall be paid to the gaming commission to be used exclusively to promote and ensure equine health and safety in New York. Any portion of such funding to the gaming commission unused during a fiscal year shall be returned to the video lottery gaming operators on a pro rata basis in accordance with the amounts originally contributed by each operator and shall be used for the purpose of enhancing purses at such track. One and one-half percent of the gross purse enhancement amount at a thoroughbred track, as required by this subdivision, shall be paid to an account established pursuant to section two hundred twenty-one-a of the racing, pari-mutuel wagering and breeding law to be used exclusively to provide health insurance for jockeys. In addition, with the exception of Aqueduct racetrack or a facility in the county of Nassau or Suffolk operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law, one and one-quarter percent of total revenue wagered at the vendor track after pay out for prizes, received pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this subdivision, shall be distributed to the appropriate breeding fund for the manner of racing conducted by such track.

Provided, further, that as additional consideration for the operation of video lottery terminal facilities, the Catskill regional off-track betting corporation shall maintain the same number of race dates at Monticello racetrack being conducted at the time it receives a license to conduct harness race meetings at such racetrack.

Provided, further, that nothing in this paragraph shall prevent each track from entering into an agreement, not to exceed five years, with the organization authorized to represent its horsemen to increase or decrease the portion of its vendor fee dedicated to enhancing purses at such track during the years of participation by such track, or to race fewer dates than required herein.

§ 5. Section 1612 of the tax law is amended by adding a new subdivision g to read as follows:

g. As consideration for operation of a video lottery gaming facility located in the county of Broome, Chemung, Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam, or Ulster, 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 vendor's fee to be distributed as follows after the pay out of racing support payments: (1) twenty percent shall be transferred to the county in which the vendor facility is located; and (2) the remainder shall be used for payment of the costs of the corporation's functions pursuant to section five hundred sixteen of the racing, pari-mutuel wagering and breeding law, and the net revenue remaining after payment of such costs shall be divided among the participating counties listed in this paragraph on the basis of population as defined in paragraph b of subdivision two of section five hundred sixteen of the racing, parimutuel wagering and breeding law.

§ 6. Section 301 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 6 to read as follows:

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6. The board shall have the power to issue licenses to the Catskill regional off-track betting corporation or to a subsidiary of said corporation for the purpose of conducting harness race meetings at Monticello racetrack and to make capital improvements to said track, provided that such corporation meets the terms and conditions for licensure as provided under this article. Notwithstanding the provisions of articles five and five-a of this chapter, said corporation shall be deemed to be a harness racing corporation with respect to pari-mutuel wagering conducted at said track pursuant to this chapter, except that net revenues derived from such pari-mutuel wagering shall be distributed among the counties that participate in such corporation on the basis of population, as defined as the total population in each participating county shown by the latest preceding decennial federal census of the calendar year in which such distribution is to be made.

§ 7. The opening paragraph of subdivision 1 of section 527 of the racing, pari-mutuel wagering and breeding law, as amended by section 4 of part BB of chapter 60 of the laws of 2016, is amended to read as follows:

The disposition of the retained commission from pools resulting from regular, multiple or exotic bets, as the case may be, whether placed on races run within a region or outside a region, conducted by racing corporations, harness racing associations or corporations, quarter horse racing associations or corporations or races run outside the state shall be governed by the tables in paragraphs a and b of this subdivision. The rate denominated "state tax" shall represent the rate of a reasonable tax imposed upon the retained commission for the privilege of conducting off-track pari-mutuel betting, which tax is hereby levied and shall be payable in the manner set forth in this section. Each off-track betting corporation shall pay to the gaming commission as a regulatory fee, which fee is hereby levied, six-tenths of one percent of the total daily pools of such corporation. Each corporation shall also pay twenty percent of the breaks derived from bets on harness races and fifty percent of the breaks derived from bets on all other races to the agriculture and New York State horse breeding and development fund and to the thoroughbred breeding and development fund, the total of such payments to be apportioned fifty percent to each such fund. For the purposes of this section, the New York city, Suffolk, Nassau, and the Catskill regions shall constitute a single region and any thoroughbred track located within the Capital District region shall be deemed to be within such single region. A "regional meeting" shall refer to either harness or thoroughbred meetings, or both, except that a franchised corporation shall not be a regional track for the purpose of receiving distributions from bets on thoroughbred races conducted by a thoroughbred track in the Catskill region conducting a mixed meeting. With the exception of a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Tioga [or], Saratoga or Sullivan county after January first, two thousand five, racing corporations first licensed to conduct pari-mutuel racing after January first, nineteen hundred eighty-six or a harness racing association or corporation first licensed to conduct pari-mutuel wagering at a track located in Genesee County after January first, two thousand five, and quarter horse tracks shall not be "regional tracks"; if there is more than one harness track within a region, such tracks shall evenly divide payments made pursuant to the tables in paragraphs a and b of this subdivision when neither track is running. In the event a track elects to reduce its retained percentage from any or all of its pari-mutuel

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pools, the payments to the track holding the race and the regional track required by paragraphs a and b of this subdivision shall be reduced in proportion to such reduction. Nothing in this section shall be construed to authorize the conduct of off-track betting contrary to the provisions of section five hundred twenty-three of this article.

§ 8. Section 509-a of the racing, pari-mutuel wagering and breeding law, as added by chapter 681 of the laws of 1989, the opening paragraph as amended by chapter 346 of the laws of 1990, is amended to read as follows: