BILL NUMBER: S6495

SPONSOR: ADDABBO
 
TITLE OF BILL:  An act to amend the racing, pari-mutuel wagering and
breeding law, in relation to authorizing a deduction of a marketing
allowance for certain gaming facilities

 
PURPOSE OR GENERAL IDEA OF BILL:

To provide a marketing allowance to ensure the stability of tax revenues
to benefit education in response to the opening of the MGM Springfield
Casino.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one provides a marketing allowance which holds the state harm-
less by providing that it may only be granted by the commission if the
current gross gaming revenue and tax receipts are greater than this past
fiscal year's gross gaming revenue and tax receipts.

Section two provides the effective date.
              

 
JUSTIFICATION:

Since the enactment of the Upstate New York Gaming Economic Development
Act of 2013, New York's four gaming facilities have contributed millions
of dollars to state education and local property tax relief. In the last
fiscal year, Rivers Casino and Resort paid close to $43 million; the
most amount of taxes paid by any of the four gaming facilities.

Unfortunately, less than a year ago, MGM Springfield opened its $960
million facility just across the state border of Massachusetts.  Since
then, MGM Springfield has spent a significant amount of money marketing
Rivers Casino and Resort patrons which has included sending buses into
the Capital District to lure NY resident's to Massachusetts. To make
matters worse, MGM Springfield pays a tax rate of 25%, approximately
half the tax rate of Rivers Casino and Resort.

In order to continue to benefit the Capital District and fund state
education at current or greater levels, Rivers Casino and Resort
requires a marketing credit to remain competitive with MGM Springfield.

This legislation holds both the State Lottery, Schenectady and the
surrounding non-host communities harmless in that the NYS Gaming Commis-
sion will not grant any allowance for marketing without an increase in
gross gaming revenue from this past fiscal year. Thus, the contributions
to state education and local property tax relief will continue at or
exceed current levels.

 
PRIOR LEGISLATIVE HISTORY:

This is new legislation.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.