NY State Senate Bill 2011-S5812

Senate Bill S5812

2011-2012 Legislative Session

Requires the licensing of franchised corporations, racing associations, off-track betting corporations and multi-jurisdictional account wager providers

download bill text pdf

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 04, 2012	referred to racing, gaming and wagering
Jun 17, 2011	referred to rules

2011-S5812 (ACTIVE) - Details

Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §§1001, 1002, 1012 & 503, RWB L

2011-S5812 (ACTIVE) - Summary

Requires the licensing of franchised corporations, racing associations, off-track betting corporations and multi-jurisdictional account wager providers.

2011-S5812 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5812

TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to the simulcast of horse races, account wagering and winnings

PURPOSE:
To update the State's current account wagering laws to allow for the use
of new communications technology. The bill permits patron access to
legal deposit wagering accounts via personal computers and other elec-
tronic communications systems, in addition to the telephone. It also
makes it a violation of law to accept a wager from any New York resident
without being licensed by the Racing and wagering Board punishable by a
fine of $1,000.

SUMMARY OF PROVISIONS:
Section 1 of the bill amends section 1001 of the racing, pari-mutuel
wagering and breeding law to add a new definition for "account wager-
ing", "account wagering licensee", dormant account", and "multi-juris-
dictional account wagering provider".

Section 2 amends section 1002 of the racing, pari-mutuel wagering and
breeding law to grant the Racing and wagering Board general jurisdic-
tional powers over the new expanded account wagering activities that
could be conducted under this legislation.

Section 3 amends section 1012 of the racing, pari-mutuel wagering and
breeding law by revising the current law that governs telephone betting
on account. This provision expands telephone betting to include the
Internet, personal computers, cell phones and other forms of electronic
communication.  It also facilitates the ability of regional OTBs and
racing associations to form partnerships to jointly offer account wager-
ing programs.

This provision also establishes the procedures for establishing new
account wagering programs by multi-jurisdictional account wagering
providers. These businesses could be partnerships between in-state race
producers and OTBs and out-of-state race producers. These businesses
would be operated outside of New York, but licensed by another state.
Such providers could accept New York race track events and encourage
both in-state and out-of-state bettors to use such businesses. A portion
of bets placed on such multi-state providers would be transferred to New
York horse owners in purses and for New York breeding funds. This meas-
ure could expand the utilization of New York's racing signal by out-of-
state bettors and benefit the domestic industry by retaining a portion
of the bets for New York's breeding funds, race tracks and horse owners.

In addition it makes acceptance of a wager without being licensed by the
board punishable by a fine.

Section 4 amends section 503 of the racing , pari-mutuel wagering and
breeding law to grant to regional OTBs the ability to enter into agree-
ments to cooperatively sell and market New York racing products with
domestic racing associations and enter into agreements with multi-juris-
dictional account wagering providers.

Section 5 is the effective date of the bill.

JUSTIFICATION:
This bill modernizes the telephone account wagering law to include the
Internet, other personal computer systems, and cell phones. The bettor
would still need to have an account to curtail underage gambling.
Further, betting limits could be imposed based upon patron request.

As reported in the Senate Racing, Gaming & wagering committee Annual
Reports issued in 2003, 2004, and 2005, New York's race tracks and OTBs
need to more cooperatively offer and market New York racing products.
This bill establishes a mechanism so that OTBs and race tracks can, in a
cooperative manner, consolidate their telephone wagering account
program.  This has two economic benefits. First, consolidating telephone
accounts can reduce overhead costs and reduce competition between
regional OTBs for the same betting revenue. Second, more comprehensive
offerings programs would be commercially more attractive to broadcast
both within New York and exported to other jurisdictions (and hence be
more profitable).

In addition this bill would make it a violation of law if an Out of
State Advanced Deposit wagering (ADW)/internet outlet accepts a wager
from any New York resident without being licensed by the Racing and
wagering Board, subject to regulations, as well as pay the same statuto-
ry payments to racing entities. The most likely case is that the current
wagers (est to be +$500,000,000 a yr) would be redirected back to the
Off-Track or on-track betting outlets. The entire racing industry (purs-
es, breeders, OTB, tracks) would benefit immediately as well as the
state from increased Pari-mutual taxes. All NY racetracks must continue
to have complete unfettered rights to simulcast their signal to any out
of state ADW outlet and no restrictions can be placed on this critical
business arrangement.

New York's horse racing industry has not maximized its profits, and in
NYRA's case has in fact lost substantial amounts of money over the past
ten years. Legislation such as this bill would facilitate the ability to
produce and market New York racing products. This, in turn, could
increase horse industry profits so that OTBs would no longer be required
to subsidize this business as it has done in the past. Consequently,
OTBs could transfer more revenue to support local governments.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:

This legislation will increase revenues to the state by capturing more
parimutuel taxes on these wagers which are currently untaxed.

EFFECTIVE DATE:
This act shall take effect immediately.

2011-S5812 (ACTIVE) - Bill Text download pdf

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

                                  5812

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              June 17, 2011
                               ___________

Introduced  by Sen. NOZZOLIO -- 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,  in
  relation  to  the  simulcast  of  horse  races,  account  wagering and
  winnings

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

  Section 1. Section 1001 of the racing, pari-mutuel wagering and breed-
ing  law, as added by chapter 363 of the laws of 1984, subdivisions n, o
and p as added by chapter 445 of the laws of 1997, is amended to read as
follows:
  S 1001. Definitions. As used in  this  article,  the  following  terms
shall have the following meanings:
  a.  "Simulcast" means the telecast of live audio and visual signals of
running, harness or quarter horse races [conducted in the state] for the
purposes of pari-mutuel wagering;
  b. "Track" means the grounds or enclosures within  which  horse  races
are conducted by any person, association or corporation lawfully author-
ized  to  conduct such races in accordance with the terms and conditions
of this chapter OR THE LAWS OF ANOTHER JURISDICTION;
  c. "Sending track" means any track from which simulcasts originate;
  d. "Receiving track" means any track where simulcasts originated  from
another track are displayed;
  e.  "Applicant"  means  any  association or corporation applying for a
simulcast license in accordance with the provisions of this article;
  f. "Operator" means any association or corporation operating a  simul-
cast facility in accordance with the provisions of this article;
  g. "Regional track or tracks" means any or all tracks located within a
region  defined  as  an  off-track  betting  region, except that for the
purposes of section one thousand eight of this article any track located
in New York city, or Nassau, Suffolk and Westchester counties, shall  be

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13190-01-1

S. 5812                             2

deemed  a  regional  track  for  all regions located in district one, as
defined in this section;
  h. "[The board] BOARD" means the state racing and wagering board;
  i.  "Branch  office" means an establishment maintained and operated by
an off-track betting corporation, where off-track pari-mutuel betting on
horse races may be placed in accordance with the terms and conditions of
this chapter and rules and regulations issued pursuant thereto;
  j. "Simulcast facility" means those facilities within the  state  that
are  authorized  pursuant  to  the provisions of this article to display
simulcasts for pari-mutuel wagering purposes;
  k. "Off-track betting  region"  means  those  regions  as  defined  in
section five hundred nineteen of this chapter;
  l.  "Simulcast  theater"  means  a  simulcast facility which is also a
public entertainment and wagering facility, and which may include any or
all of the following: a large screen television projection  and  display
unit,  a  display  system  for odds, pools, and payout prices, areas for
viewing and seating, a food and beverage facility, and any other conven-
ience currently provided at racetracks and not inconsistent  with  local
zoning ordinances;
  m.  "Simulcast  districts"  means  one  or more of the following named
districts comprised of the  counties  within  which  pari-mutuel  racing
events are conducted as follows:
    District 1                    New York City, Suffolk, Nassau, and
                                    Westchester counties
    District 2                    Sullivan county
    District 3                    Saratoga county
    District 4                    Oneida county
    District 5                    Erie, Genesee and Ontario counties
  n.  "Initial out-of-state thoroughbred track" means the track commenc-
ing full-card simulcasting to New York prior to any  other  out-of-state
thoroughbred track after 1:00 PM on any calendar day.
  o. "Second out-of-state thoroughbred track" means the track (or subse-
quent  track  or  tracks  where  otherwise  authorized  by this article)
conducting full-card simulcasting to New York  after  the  race  program
from  the  initial  out-of-state  thoroughbred  track that has commenced
simulcasting on any calendar day.
  p. "Mixed meeting" means a race meeting which  has  a  combination  of
thoroughbred,  quarter horse, Appaloosa, paint, and/or Arabian racing on
the same race program.
  Q. "ACCOUNT WAGERING" MEANS A FORM OF PARI-MUTUEL WAGERING IN WHICH  A
PERSON  ESTABLISHES  AN  ACCOUNT  WITH  AN ACCOUNT WAGERING LICENSEE AND
SUBSEQUENTLY COMMUNICATES VIA TELEPHONE OR OTHER ELECTRONIC MEDIA TO THE
ACCOUNT WAGERING LICENSEE WAGERING INSTRUCTIONS CONCERNING THE FUNDS  IN
SUCH  PERSON'S  ACCOUNT  AND  WAGERS TO BE PLACED ON THE ACCOUNT OWNER'S
BEHALF.
  R. "ACCOUNT WAGERING LICENSEE" MEANS  RACING  ASSOCIATIONS,  OFF-TRACK
BETTING  CORPORATIONS,  AND  BOARD APPROVED MULTI-JURISDICTIONAL ACCOUNT
WAGERING PROVIDERS THAT HAVE BEEN  AUTHORIZED  BY  THE  BOARD  TO  OFFER
ACCOUNT WAGERING.
  S.  "DORMANT  ACCOUNT"  MEANS  AN  ACCOUNT WAGERING ACCOUNT HELD BY AN
ACCOUNT WAGERING LICENSEE IN WHICH THERE HAS BEEN NO  WAGERING  ACTIVITY
FOR THREE YEARS.
  T.  "MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER" MEANS A BUSINESS
ENTITY LOCATED IN A STATE OTHER THAN THE STATE OF  NEW  YORK,  WHICH  IS
LICENSED  BY  SUCH  OTHER STATE TO OFFER PARI-MUTUEL ACCOUNT WAGERING ON

S. 5812                             3

RACES SUCH PROVIDER SIMULCASTS AND OTHER RACES IT OFFERS IN ITS WAGERING
MENU TO PERSONS LOCATED IN OR OUT OF THE STATE ISSUING SUCH LICENSE.
  S  2.  Section  1002  of the racing, pari-mutuel wagering and breeding
law, as added by chapter 363 of the  laws  of  1984,  subdivision  2  as
amended  by  chapter  18  of  the  laws  of  2008, is amended to read as
follows:
  S 1002. General jurisdiction. 1. The [state racing and wagering] board
shall have general jurisdiction over the simulcasting of horse races AND
ACCOUNT WAGERING within the state, and the board  may  issue  rules  and
regulations in accordance with the provisions of this article.
  2.  The  board  shall  annually submit reports on or before July first
following each  year  in  which  simulcasting  OR  ACCOUNT  WAGERING  is
conducted  to  the  director  of  the budget, the chairman of the senate
finance committee and the  chairman  of  the  assembly  ways  and  means
committee  evaluating the results of such simulcasts OR ACCOUNT WAGERING
on the compatibility with the well-being of the horse  racing,  breeding
and pari-mutuel wagering industries in this state and make any recommen-
dations  it  deems  appropriate.  Such reports may be submitted together
with the reports required by subdivision  two  of  section  two  hundred
thirty-six and subparagraph (iii) of paragraph a and subparagraph (i) of
paragraph b of subdivision one of section three hundred eighteen of this
chapter.
  S  3.  Section  1012  of the racing, pari-mutuel wagering and breeding
law, as amended by chapter 18 of the laws  of  2008,  subdivision  5  as
amended  by  section  10 of part S of chapter 61 of the laws of 2011, is
amended to read as follows:
  S 1012. [Telephone accounts  and  telephone]  ACCOUNT  wagering.  [Any
regional  off-track betting corporation, and any franchised corporation,
harness, thoroughbred, quarter horse racing association  or  corporation
licensed  to  conduct  pari-mutuel racing may maintain telephone betting
accounts for wagers placed on races and special events offered  by  such
corporation  or  association.]  FRANCHISED  CORPORATIONS, RACING ASSOCI-
ATIONS, OFF-TRACK BETTING CORPORATIONS AND MULTI-JURISDICTIONAL  ACCOUNT
WAGERING  PROVIDERS  SHALL  APPLY  TO  THE BOARD TO BE LICENSED TO OFFER
ACCOUNT WAGERING.
  1. A. FRANCHISED CORPORATIONS, RACING ASSOCIATIONS, OFF-TRACK  BETTING
CORPORATIONS  AND  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING PROVIDERS MAY
FORM PARTNERSHIPS, JOINT VENTURES, OR ANY OTHER AFFILIATION OR  CONTRAC-
TUAL ARRANGEMENT IN ORDER TO FURTHER THE PURPOSES OF THIS SECTION.
  B.  THE  DISTRIBUTION  OF  REVENUES  TO  PURSES MADE BY ANY FRANCHISED
CORPORATION, OR HARNESS, THOROUGHBRED, QUARTER HORSE RACING  ASSOCIATION
OR CORPORATION FROM ACCOUNT WAGERS PLACED ON RACES RUN AT A GUEST FACIL-
ITY  SHALL  BE  DETERMINED  PURSUANT TO A WRITTEN AGREEMENT BETWEEN SUCH
ASSOCIATION OR CORPORATION AND ITS REPRESENTATIVE  HORSEMEN'S  ORGANIZA-
TION AS APPROVED BY THE BOARD.
  2.  THE  BOARD  SHALL  PROMULGATE RULES AND REGULATIONS TO LICENSE AND
REGULATE ALL PHASES OF ACCOUNT WAGERING.
  3. THE BOARD SHALL SPECIFY  A  NON-REFUNDABLE  APPLICATION  FEE  WHICH
SHALL  BE  PAID  BY  EACH  APPLICANT  FOR AN ACCOUNT WAGERING LICENSE OR
RENEWAL THEREOF.
  4. ACCOUNT WAGERING LICENSEES SHALL  UTILIZE  PERSONAL  IDENTIFICATION
NUMBERS  (PINS)  AND SUCH OTHER TECHNOLOGIES AS THE BOARD MAY SPECIFY TO
ASSURE THAT ONLY THE ACCOUNT HOLDER HAS ACCESS TO  THE  ADVANCE  DEPOSIT
WAGERING ACCOUNT.
  5.  ACCOUNT  WAGERING LICENSEES SHALL PROVIDE FOR (I) WITHDRAWALS FROM
THE WAGERING ACCOUNT ONLY BY MEANS  OF  A  CHECK  MADE  PAYABLE  TO  THE

S. 5812                             4

ACCOUNT HOLDER AND SENT TO THE ADDRESS OF THE ACCOUNT HOLDER OR BY MEANS
OF  AN  ELECTRONIC  TRANSFER  TO AN ACCOUNT HELD BY THE VERIFIED ACCOUNT
HOLDER OR (II) THAT THE ACCOUNT  HOLDER  MAY  WITHDRAW  FUNDS  FROM  THE
WAGERING ACCOUNT AT A FACILITY APPROVED BY THE BOARD BY PRESENTING VERI-
FIABLE PERSONAL AND ACCOUNT IDENTIFICATION INFORMATION.
  6. ACCOUNT WAGERING LICENSEES MAY ENGAGE IN INTERSTATE WAGERING TRANS-
ACTIONS ONLY WHERE THERE IS COMPLIANCE WITH CHAPTER FIFTY-SEVEN OF TITLE
FIFTEEN  OF  THE UNITED STATES CODE, COMMONLY REFERRED TO AS THE "INTER-
STATE HORSERACING ACT".
  7. THE ACCOUNT HOLDER'S DEPOSITS TO  THE  WAGERING  ACCOUNT  SHALL  BE
SUBMITTED  BY  THE  ACCOUNT  HOLDER TO THE ACCOUNT WAGERING LICENSEE AND
SHALL BE IN THE FORM OF ONE OF THE FOLLOWING:
  A. CASH GIVEN TO THE ACCOUNT WAGERING LICENSEE;
  B. CHECK, MONEY ORDER, NEGOTIABLE ORDER  OF  WITHDRAWAL,  OR  WIRE  OR
ELECTRONIC TRANSFER, PAYABLE AND REMITTED TO THE ACCOUNT WAGERING LICEN-
SEE; OR
  C.  CHARGES  MADE TO AN ACCOUNT HOLDER'S DEBIT OR CREDIT CARD UPON THE
ACCOUNT HOLDER'S DIRECT AND PERSONAL INSTRUCTION, WHICH INSTRUCTION  MAY
BE  GIVEN  BY  TELEPHONE  COMMUNICATION OR OTHER ELECTRONIC MEANS TO THE
ACCOUNT WAGERING LICENSEE OR ITS AGENT BY THE ACCOUNT HOLDER IF THE  USE
OF THE CARD HAS BEEN APPROVED BY THE ACCOUNT WAGERING LICENSEE.
  8.  A.  EACH WAGERING ACCOUNT SHALL BE IN THE NAME OF A NATURAL PERSON
AND SHALL NOT BE IN THE NAME OF ANY BENEFICIARY, CUSTODIAN, JOINT TRUST,
CORPORATION, PARTNERSHIP OR OTHER ORGANIZATION OR ENTITY.
  B. A WAGERING ACCOUNT MAY BE ESTABLISHED BY  A  PERSON  COMPLETING  AN
APPLICATION FORM APPROVED BY THE BOARD AND SUBMITTING IT TOGETHER WITH A
CERTIFICATION,  OR  OTHER  PROOF,  OF AGE AND RESIDENCY. SUCH FORM SHALL
INCLUDE THE ADDRESS  OF  THE  PRINCIPAL  RESIDENCE  OF  THE  PROSPECTIVE
ACCOUNT  HOLDER AND INDICATE THAT A FALSE STATEMENT MADE IN REGARD TO AN
APPLICATION MAY SUBJECT THE APPLICANT TO PROSECUTION.
  C. THE PROSPECTIVE ACCOUNT HOLDER SHALL SUBMIT THE COMPLETED  APPLICA-
TION TO THE ACCOUNT WAGERING LICENSEE. THE ACCOUNT WAGERING LICENSEE MAY
ACCEPT OR REJECT AN APPLICATION AFTER RECEIPT AND REVIEW OF THE APPLICA-
TION AND CERTIFICATION, OR OTHER PROOF, OF AGE AND RESIDENCY FOR COMPLI-
ANCE WITH THIS SECTION.
  D.  NO  PERSON OTHER THAN THE PERSON IN WHOSE NAME AN ACCOUNT HAS BEEN
ESTABLISHED MAY ISSUE WAGERING INSTRUCTIONS RELATING TO THAT ACCOUNT  OR
OTHERWISE ENGAGE IN WAGERING TRANSACTIONS RELATING TO THAT ACCOUNT.
  9.  A WAGERING ACCOUNT SHALL NOT BE ASSIGNABLE OR OTHERWISE TRANSFERA-
BLE.
  10. EXCEPT AS OTHERWISE PROVIDED IN THIS  ARTICLE  OR  IN  REGULATIONS
WHICH  THE BOARD MAY ADOPT PURSUANT THERETO, ALL ACCOUNT WAGERS SHALL BE
FINAL AND NO WAGER SHALL BE CANCELED BY THE ACCOUNT HOLDER AT  ANY  TIME
AFTER THE WAGER HAS BEEN ACCEPTED BY THE ACCOUNT WAGERING LICENSEE.
  11.  DORMANT  ACCOUNTS SHALL BE TREATED AS ABANDONED PROPERTY PURSUANT
TO SECTION THREE HUNDRED OF THE ABANDONED PROPERTY LAW.
  12. Any [regional off-track betting  corporation  and  any  franchised
corporation,  harness, thoroughbred, quarter horse racing association or
corporation licensed to conduct  pari-mutuel  racing]  ACCOUNT  WAGERING
LICENSEE may require a minimum account balance in an amount to be deter-
mined by such entity.
  [2.]  13.  a.  Any  regional off-track betting corporation may suspend
collection of the surcharge imposed under section five  hundred  thirty-
two  of  this  chapter  on winning wagers placed in [telephone] WAGERING
accounts maintained by such regional corporation.

S. 5812                             5

  b. In a city of one million or more  any  regional  off-track  betting
corporation,  with  the  approval of the mayor of such city, may suspend
collection of the surcharge imposed under section five  hundred  thirty-
two  of  this  chapter  in winning wagers placed in [telephone] WAGERING
accounts maintained by such regional corporation.
  [3.]  14.  Any  [telephone] WAGERING account maintained by [a regional
off-track  betting   corporation,   franchised   corporation,   harness,
thoroughbred,  quarter horse association or corporation, with inactivity
for a period of three years]  AN  ACCOUNT  WAGERING  LICENSEE  THAT  HAS
BECOME A DORMANT ACCOUNT shall be forfeited and paid to the commissioner
of  taxation  and  finance. Such amounts when collected shall be paid by
the commissioner of taxation and finance into the general  fund  of  the
state treasury.
  [4.]  15.  The  maintenance and operation of such [telephone] WAGERING
accounts provided for in this section shall  be  subject  to  rules  and
regulations  of  the  [state racing and wagering] board. The board shall
include in such  regulation  a  requirement  that  [telephone]  WAGERING
account information pertaining to surcharge and nonsurcharge [telephone]
WAGERING accounts shall be separately reported.
  [4-a.]  16.  For  the  purposes  of this section, "telephone [betting]
WAGERING accounts" and "telephone wagering" shall mean and  include  all
those  wagers which utilize any wired or wireless communications device,
including but not limited to wireline telephones,  wireless  telephones,
and  the  internet,  to  transmit  the  placement of wagers on races and
special events offered by any regional  off-track  betting  corporation,
and  any  harness,  thoroughbred,  quarter  horse  racing association or
corporation licensed or franchised to conduct pari-mutuel racing in  New
York state.
  [5.  The  provisions of this section shall expire and be of no further
force and effect after June thirtieth, two thousand twelve.]
  17. A MULTI-JURISDICTIONAL ACCOUNT WAGERING  PROVIDER  SHALL  ONLY  BE
LICENSED UNDER THE FOLLOWING CONDITIONS:
  A.  THE  MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER IS LICENSED BY
THE STATE IN WHICH IT IS LOCATED AND, IF  REQUIRED,  BY  EACH  STATE  IN
WHICH IT OPERATES;
  B. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER POSSESSES APPRO-
PRIATE  TOTALIZATOR AND ACCOUNTING CONTROLS, NO LESS THAN THOSE REQUIRED
PURSUANT TO PART FIFTY-ONE HUNDRED OF TITLE NINE OF THE NEW YORK  CODES,
RULES AND REGULATIONS, WHICH WILL SAFEGUARD THE TRANSMISSION OF WAGERING
DATA  AND  WILL KEEP A SYSTEM OF ACCOUNTS WHICH WILL MAINTAIN A SEPARATE
RECORD OF REVENUES COLLECTED BY THE WAGERING PROVIDER, THE  DISTRIBUTION
OF SUCH REVENUES AND AN ACCOUNTING OF COSTS RELATIVE TO THE OPERATION OF
THE WAGERING PROVIDER;
  C.  THE  CHARACTER  AND  THE  BACKGROUND  OF  THE MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER IS SUCH THAT GRANTING THE  APPLICATION  FOR  A
LICENSE  IS IN THE PUBLIC INTEREST AND THE BEST INTEREST OF HONEST HORSE
RACING;
  D. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING  PROVIDER  SHALL  UTILIZE
THE  SERVICES  OF  AN  INDEPENDENT  THIRD  PARTY TO PERFORM IDENTITY AND
VERIFICATION SERVICES WITH RESPECT  TO  THE  ESTABLISHMENT  OF  WAGERING
ACCOUNTS FOR PERSONS LOCATED IN NEW YORK;
  E.  THE  BOARD  SHALL  BE ALLOWED ACCESS TO THE PREMISES OF THE MULTI-
JURISDICTIONAL ACCOUNT WAGERING  PROVIDER  TO  VISIT,  INVESTIGATE  AND,
PLACE  SUCH  EXPERT ACCOUNTANTS AND OTHER PERSONS IT DEEMS NECESSARY FOR
THE PURPOSE OF INSURING COMPLIANCE WITH THE RULES AND REGULATIONS OF THE
BOARD;

S. 5812                             6

  F.  WAGERS  PLACED  WITH  THE  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING
PROVIDER  SHALL  RESULT  IN  THE COMBINATION OF ALL WAGERS PLACED AT THE
HOST TRACK SO AS TO PRODUCE COMMON PARI-MUTUEL  BETTING  POOLS  FOR  THE
CALCULATION  OF  ODDS  AND  THE DETERMINATION OF PAYOUTS FROM SUCH POOL,
WHICH  PAYOUT SHALL BE THE SAME FOR ALL WINNING TICKETS, IRRESPECTIVE OF
WHETHER A WAGER IS PLACED AT A HOST TRACK OR AT  A  MULTI-JURISDICTIONAL
ACCOUNT WAGERING PROVIDER;
  G.  A  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING  PROVIDER AUTHORIZED TO
ACCEPT ACCOUNT WAGERS FROM PERSONS RESIDENT IN NEW YORK, WITH RESPECT TO
EACH SUCH WAGER ACCEPTED, SHALL PAY SUCH PARI-MUTUEL TAX, BREEDERS' FUND
DISTRIBUTIONS, AND SUCH OTHER STATUTORY  PAYMENTS  INCLUDING  APPLICABLE
REGULATORY  FEES  AND  DISTRIBUTIONS  THEREON EQUIVALENT IN IDENTITY AND
AMOUNT TO THE PARI-MUTUEL TAX, BREEDERS' FUND  DISTRIBUTIONS,  STATUTORY
PAYMENTS,  INCLUDING  APPLICABLE  REGULATORY FEES AND DISTRIBUTIONS THAT
WOULD BE REQUIRED IF SUCH WAGER HAD BEEN PLACED BY  THE  ACCOUNT  HOLDER
RESIDENT  IN  NEW  YORK  AS  AN  ACCOUNT WAGER WITH AN OFF-TRACK BETTING
CORPORATION OPERATING IN THE  OFF-TRACK  BETTING  REGION  IN  WHICH  THE
ACCOUNT HOLDER'S COUNTY OF RESIDENCE IS LOCATED. THE BOARD SHALL PROMUL-
GATE RULES AND REGULATIONS WHICH WILL DETERMINE THE EXACT AMOUNT AND THE
DISTRIBUTION  OF  PAYMENTS OF PARI-MUTUEL TAXES, DISTRIBUTIONS TO BREED-
ERS' FUNDS, AND STATUTORY PAYMENTS INCLUDING APPLICABLE REGULATORY  FEES
AND  DISTRIBUTIONS  TO TRACKS AND PURSES BY MULTI-JURISDICTIONAL ACCOUNT
WAGERING PROVIDERS; AND
  H. IN ADDITION, FOR EACH ACCOUNT WAGER ACCEPTED FROM PERSONS  RESIDENT
IN  NEW  YORK,  THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL
PAY TO THE COUNTY OF RESIDENCE OF THE ACCOUNT HOLDER A FEE  OF  ONE-HALF
OF  ONE  PERCENT  OF  SUCH  ACCOUNT WAGER. IF THE COUNTY OF RESIDENCE IS
WITHIN A CITY WITH A POPULATION IN EXCESS OF ONE MILLION, THE FEE  SHALL
BE  PAID  TO  THE  STATE.  IN  COUNTIES THAT ARE MEMBERS OF AN OFF-TRACK
BETTING CORPORATION, THE PAYMENT SHALL BE MADE TO THE OFF-TRACK  BETTING
CORPORATION. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL BE
ENTITLED  TO  DEDUCT  FROM THE PARI-MUTUEL TAX PAYABLE BY IT UNDER PARA-
GRAPH G OF THIS SUBDIVISION SUCH AMOUNTS THAT  THE  MULTI-JURISDICTIONAL
ACCOUNT  WAGERING  PROVIDER  IS  OBLIGATED TO PAY PURSUANT TO THIS PARA-
GRAPH.
  18. ACCEPTANCE OF ANY WAGER FROM A NEW  YORK  STATE  RESIDENT  WITHOUT
BEING LICENSED BY THE BOARD PURSUANT TO THIS SECTION SHALL BE PUNISHABLE
BY A FINE NOT TO EXCEED ONE THOUSAND DOLLARS FOR EACH WAGER.
  S  4. Section 503 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 12-a to read as follows:
  12-A. TO ENTER INTO, AMEND, CANCEL AND TERMINATE  AGREEMENTS  FOR  THE
PERFORMANCE   AMONG   THEMSELVES,   LICENSED   RACING  ASSOCIATIONS  AND
MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS, AS DEFINED  IN  SECTION
ONE  THOUSAND ONE OF THIS CHAPTER, OF THEIR RESPECTIVE FUNCTIONS, POWERS
AND DUTIES ON A COOPERATIVE OR CONTRACT BASIS.
  S 5. This act shall take effect immediately.

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