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S6487Senate2019-2020 Session

Allow More Betting Machines

Official title

“Authorizes Suffolk regional off-track betting corporations to host video lottery gaming devices”

Sponsor Jim GaughranSD-5Affects Economy
Status
Stricken
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Racing, Gaming And Wagering

What's happening

This bill allows Suffolk off-track betting corporations to operate up to 3,000 video lottery terminals and adjusts related tax provisions.

Why it matters

  1. Significantly increases potential gambling activity in Suffolk County. by tripling the cap on video lottery terminals (VLTs) from 1,000 to 3,000, which could attract more visitors, increase local spending, and potentially raise concerns about problem gambling.

  2. Creates a new revenue stream for Suffolk County. , as all vendor fees from the new VLT operations must be paid directly to the county, potentially supporting local government services or offsetting budget gaps.

  3. Alters the competitive landscape among regional gaming operators. , making Suffolk OTB more competitive relative to Nassau OTB and other gaming venues, which could shift where people choose to gamble and impact regional economic dynamics.

  4. May influence broader state gaming policy. by setting a precedent for expanding gambling operations and revising tax and fee structures, which could lead to similar requests from other regions or stakeholders in the future.

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Who cares

Headline styles

Allow More Betting Machines

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

Sponsors

Primary sponsor
Jim Gaughran

Senator · Senate District 5

Chair, Local Government

No co-sponsors yet.

History

  1. Recommit, enacting clause stricken
  2. Referred to racing, gaming and wagering
  3. Referred to rules

Full text

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

STATE OF NEW YORK

6487

2019-2020 Regular Sessions

IN SENATE

June 13, 2019

Introduced by Sen. GAUGHRAN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules

AN ACT to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to allowing Suffolk off-track betting corporations to host video lottery gaming devices

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

Section 1. Section 503 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 10-a to read as follows:

10-a. In the Suffolk regions, to install and operate up to three thousand video lottery gaming terminals at a corporation's facility which is licensed pursuant to section one thousand eight or one thousand nine of this chapter;

§ 2. The opening paragraph of subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2019, is amended to read as follows:

(ii) less a vendor's fee the amount of which is to be paid for serving as a lottery agent to the track operator of a vendor track or the operator of any other video lottery gaming facility authorized pursuant to section sixteen hundred seventeen-a of this article; and less vendor's fees to be paid for serving as a lottery agent to the Suffolk regional off-track betting corporations operators at authorized participating off-track betting facilities licensed pursuant to either section one thousand eight or one thousand nine of the racing, pari-mutuel wagering and breeding law, which fees shall be aggregated and paid in equal amounts to the county of Suffolk. The amount of the vendor's fee shall be calculated as follows:

§ 3. Paragraph 3 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, is amended to read as follows:

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

[ ] is old law to be omitted.

LBD13300-01-9

S. 6487 2

(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, provided however, that in the Nassau region such facility shall not exceed one thousand video lottery gaming devices and in the Suffolk region such facility shall not exceed three thousand video lottery gaming devices; and

§ 4. This act shall take effect on the first of January next succeeding the date on which it shall have become a law.

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

Sponsor's memo

Title of bill

An act to amend the racing, pari-mutuel wagering and breeding law and the tax law, in relation to allowing Suffolk off-track betting corporations to host video lottery gaming devices

Purpose or general idea of bill

The purpose of this legislation is to allow the Suffolk regional off- track betting corporation to install and operate up to 3,000 video lottery gaming terminals.

Summary of provisions

Section 1: Amends Section 503 of the racing, pari-mutuel wagering and breeding law by adding a new subdivision 10-a.

Section 2: Amends subparagraph (ii) of paragraph 1 of subdivision b of section 1612 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2019.

Section 3: Amends paragraph 3 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.

Section 4: Sets the effective date.

Justification

Under current New York State law, the Suffolk off-track betting corpo- ration (OTB) is only permitted to install and operate up to 1,000 video lottery gaming devices. The facility housing these devices has one of the highest Win Per Unit (WPU) rates in both New York State and the country, generating upwards of $100,000,000 in funding for State educa- tion. This bill would give Suffolk OTB the ability to install and oper- ate up to 3,000 video lottery gaming devices, which estimates show could possibly generate over twice as much funding for State education while also providing Suffolk County with an additional $15,000,000 to $20,000,000 in much needed recurring annual revenue.

Prior legislative history

New Bill.

Fiscal implications

No cost to the state. However, it is estimated that this act would generate millions of dollars in revenue for both Suffolk County and the state.

Effective date

The act shall take effect on the first of January next succeeding the date on which it shall have become a law.

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