NY State Senate Bill 2009-S2360

Senate Bill S2360

2009-2010 Legislative Session

Provides for the amount to be paid by off track betting corporations to regional harness tracks from certain simulcasting revenue

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Archive: Last Bill Status - In Senate Committee Racing, Gaming And Wagering Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2010	referred to racing, gaming and wagering
Feb 24, 2009	reported and committed to finance
Feb 18, 2009	referred to racing, gaming and wagering

co-Sponsors

2009-S2360 (ACTIVE) - Details

See Assembly Version of this Bill:: A5772
Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §1017, RWB L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3614, A3520
2013-2014: S2415, A3980
2015-2016: A892
2017-2018: A747
2019-2020: A3470
2021-2022: A1582
2023-2024: A4476

2009-S2360 (ACTIVE) - Summary

Provides for the amount to be paid by off track betting corporations to regional harness tracks from out-of-state and out-of-country simulcast revenue.

2009-S2360 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2360

 TITLE OF BILL :
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


 PURPOSE :
To phase out additional payments made by off track betting
corporations conducting simulcast to those regional harness track or
tracks that had previously received additional payments.

 SUMMARY OF PROVISIONS :

Section 1: Details dates and percentages of payment phase out.
Calendar year 2009 would retain the traditional two (2)percent payment
of excess handle, Each subsequent year there after would be a half (5)
percentage point reduction in payments. No payment of excess handle
would be made from the beginning of calendar year 2013 onward.

Section 2: Effective date language.

 EXISTING LAW :
Currently subdivision 3(b) (3)-(4) of section 1016 requires OTBs to

pay regional harness tracks six (6) percent of the sum retained by the
OTB from wagers accepted on harness races run at out of state tracks,
of the sum retained by the OTBs, five (5) percent is to be distributed
in the same manner as though such payments were made on the races
conducted at the harness trade In addition, one (1) percent of such
wagers shall be paid to the licensed regional harness track for the
purpose of increasing track purses. In OTB regions where there are
multiple regional harness tracks these payments are made to the
regional track conducting a live meet on the day out-of-state
simulcasting occurs. If either no regional track is conducting a meet,
or more than one regional track is conducting a meet, the distribution
is to be made either (i) in the proportion that each track's handle
bore to the total regional licensed harness track handle during the
preceding calendar month or (ii) in accordance with a contractual
agreement between the regional tracks and the OTB corporation,
Subdivision 2(a) of section 1017-a requires OTBs to make an additional
"maintenance of effort" payment to their regional harness tracks
measured by the level of payments received by the regional harness
tracks during 2002 from their regional OTB attributable to wagering on
out-of-state harness races run after 6:00 p.m. OTBs engaged in the
simulcasting of out-or-state or out-of-country thoroughbred racing
after 7:30 p.m.  are required to submit a payment schedule to be
approved by the State Racing and Wagering Board. In order to be
approved this payment schedule must be identical to the actual
payments and distributions of such payments to tracks and purses made
by such OTBs pursuant to the provisions of section 1016 during the
year of 2002, as derived from out-of-state harness races displayed
after 6:00 p.m. If approved by the board, such scheduled payments
shall be made from revenues derived from any simulcasting under
sections 1016 and 1017-a.

 JUSTIFICATION :
Under the current law regional harness tracks that are not running
live racing are receiving maintenance of effort payments
notwithstanding that they are closed. The intent of the 2003
legislation was to provide harness tracks with a "hold harmless"
payment stream to offset the losses anticipated from bettors defecting
from harness racing to wager on the nighttime out-of-state and
out-of-country thoroughbred races. This payment requirement was not
meant to provide a source of revenue to harness tracks not running
live races. Recently, the State Racing and Wagering Board incorrectly
interpreted 1017-a (2) (a) as requiting the maintenance of effort
calculation to be made on a track by track basis in regions with more
than one regional licensed harness track. It was the Board's
interpretation that regional harness tracks could become entitled to
more than the amount they received in 2002 but under no circumstances
could they receive less individually, even if the aggregate level of
payments under section 1016 to all tracks within the region matched,
or exceeded, the total level of payments to all the tracks during
2002. This ruling is inconsistent with the Legislature's intent
expressed in section 1016 that distribution of revenue in multitrack
regions be made based on the proportion of each track's live handle.
Therefore, in a region with two or more regional harness tracks, if
one track is not running the entire section 1016 payment goes to the
track running live racing, but the track not running nonetheless
remains eligible to receive maintenance of effort payments.  The
Board's misinterpretation of section 1017-a (2) (a) unfairly requires
OTBs to subsidize those harness tracks not conducting live race
meetings. In addition, the additional payments made pursuant to
section 1017 -a (2) (b) are no longer appropriate. Harness tracks have
been given permission to install video Lottery Terminals (VLTs).  The
success of VLTs has been well documented and these VLT operations have
provided harness tracks with a generous new stream of revenue.  VLT s
have brought increased attendance to harness tracks, as well as,
afforded them the opportunity to increase purses. Allowing harness
tracks to install VLTs and at the same time requiring OTBs to make
additional payments if handle exceeds a designated amount is
tantamount to New York State subsidizing these private entities twice.
It needs to be recognized that the exodus of harness bettors for the
new world of nighttime thoroughbred wagering is not as great as was
expected, OTBs have handled well over $100 million in annual wagering
statewide on nighttime thoroughbred racing without significant
detriment to the wagering done on regional harness tracks. In fact
regional harness tracks are themselves authorized to simulcast these
nighttime thoroughbred races and can partake in this new endeavor just
a.s OTBs can, This legislation does not call for the end of all OTB
payments to regional harness tracks. It simply is a fair
redistribution of the wagering handle to all parties involved that is
in line with the intent of the 2003 legislation when passed. This
legislation is not intended to deprive revenue to those regional
harness tracks running live races.  OTBs will continue to contribute
the six (6) percent that is required by subdivisions (3) (c) (3)-(4)
of section 1016. OTBs will continue to pay their fair share to those
regional harness tracks conducting live racing meets. It is merely the
intention of this legislation to end a subsidy to private harness
tracks not running live racing and that are not being adversely
affected in any way from the simulcasting of nighttime thoroughbred
racing by their regional OTBs.

 LEGISLATIVE HISTORY :
A8613 of 2007.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.

2009-S2360 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2360

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            February 18, 2009
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

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 reven-
  ue

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Subdivision 2 of section 1017 of  the  racing,  pari-mutuel
wagering and breeding law, as amended by chapter 18 of the laws of 2008,
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 board, 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 board, 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 board, such scheduled payments shall be made from reven-
ues 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 7Labor P.M. on out-of-state and out-of-country thoroughbred
races exceeds one hundred million dollars, each off-track betting corpo-
ration 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.
                                                           LBD05138-01-9

S. 2360                             2

track or tracks, an amount equal to [two percent] THE FOLLOWING PERCENT-
AGE  of  its  proportionate  share of such excess handle:   FOR CALENDAR
YEARS THROUGH TWO THOUSAND NINE, TWO  PERCENT;  FOR  CALENDAR  YEAR  TWO
THOUSAND  TEN,  ONE AND ONE-HALF PERCENT; FOR CALENDAR YEAR TWO THOUSAND
ELEVEN, ONE PERCENT; AND FOR CALENDAR YEAR TWO THOUSAND TWELVE, ONE-HALF
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 THIRTEEN. 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 exclu-
sively for increasing purses, stakes and prizes at that regional harness
track.
  S 2. This act shall take effect immediately.

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Senate Bill S2360

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Sponsored By

Eric Adams