NY State Senate Bill 2023-S2343

Senate Bill S2343

2023-2024 Legislative Session

Relates to wagers on certain horse racing events and authorizes agreements between a mobile sports wagering operator and an affiliate

download bill text pdf

Current 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 03, 2024	referred to racing, gaming and wagering
Jan 20, 2023	referred to racing, gaming and wagering

2023-S2343 (ACTIVE) - Details

See Assembly Version of this Bill:: A3562
Current Committee:: Senate Racing, Gaming And Wagering
Law Section:: Racing, Pari-Mutuel Wagering and Breeding Law
Laws Affected:: Amd §§1367 & 1367-a, RWB L
Versions Introduced in 2021-2022 Legislative Session:: S7536, A8538

2023-S2343 (ACTIVE) - Summary

Prohibits wagers on a horse racing event unless such racing event is offered pursuant to a fixed odds sports wagering agreement; authorizes agreements between a mobile sports wagering operator and an affiliate to locate self-service sports betting kiosks upon the premises of the affiliate.

2023-S2343 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2343

SPONSOR: ADDABBO
 
TITLE OF BILL:

An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to wagers on certain horse racing events and authorizing agree-
ments between a mobile sports wagering operator and an affiliate

 
PURPOSE:

To clarify the sports events on which wagering may be made and to
authorize mobile sports wagering operators to site kiosks at select
affiliate locations.

 
SUMMARY OF PROVISIONS:

Section 1: Amends section 1367 of the Racing, Pari-Mutuel Wagering and
Breeding Law to add definitions of

*"horse racing events" to mean any event conducted in New York by a
licensed horse racing entity or an event that if conducted in New York

would require the entity to be licensed pursuant to the Racing, Pari-Mu-
tuel Wagering and Breeding Law.

*"affiliate" to mean a licensed off-track betting corporation, a profes-
sional sports stadium or arena, automobile racing facility, the fran-
chised corporation or other race tracks licensed pursuant to the Racing,
Pari-Mutuel Wagering and Breeding Law, and the video lottery terminal
facility operator located at Aqueduct, to the extent that the entity
maintains an agreement with a licensed mobile sports wagering operator.

*"fixed odds sports wagering agreement" means an agreement between a
mobile sports wagering operator or mobile sports wagering license and an
entity that possesses a license.

Section 2: Amends section 1367 of the Racing, Pari-Mutual Wagering and
Breeding Law definition of "prohibited sports event" to expressly
prohibit mobile sports wagering on horse racing events, unless the event
is offered pursuant to an agreement with the licensed horse racing enti-
ty.

Section 3: Amends section 1367-a of the Racing, Pari-Mutuel Wagering and
Breeding Law to allow affiliates to enter into agreements with mobile
sports wagering operators to host kiosks at their affiliate facilities.

*all fixed odds sports wagering agreements must be approved by the
commission prior to taking effect. Any content offered approved fixed
odds agreement shall be made available to any interested mobile sports
wagering operator o licensee as determined by the commission.

*Any holder of pari-mutuel wagering franchise or license that enters
into fix odds sports wagering agreement shall separately maintain. an
agreement with the applicable horseman association.

Section 4: Amends Section 1367-a of the racing, pari-mutuel wagering and
breeding law by adding a new subdivision 8:


*"Affiliate agreement" means an agreement shall mean an agreement
entered into between an affiliate and an operator,' mobile sports wager-
ing operator, or mobile sports wagering licensee, to locate self-service
sports betting kiosks that are owned, operated. and maintained by the
operator, mobile sports wagering operator, or mobile sports wagering
licensee

*All affiliate agreements shall be subject to regulations promulgated by
the commission and must be approved by the commission prior Co taking
effect.

Section 5: Effective date.

 
JUSTIFICATION:

In 2021, as part of the enacted budget, New York State authorized the
Gaming Commission to license mobile sports wagering operators. Those
licenses have since been awarded to entities that are going to be tasked
with offering gaming opportunities that will lead to the best financial
opportunities for the state of New York. As the law is written, a wager-
er would not be able to place a fixed odds bet through a mobile sports
wagering operator on a horse race. This legislation would enable mobile
sports wagering providers to offer that opportunity, should they so
choose, but only if they enter into an agreement with the horse racing
content provider. Additionally, this legislation would create additional
opportunities for affiliated organizations to offer opportunities to
participate in this gaming activity. These changes are expected to
result in billions of dollars of tax revenue for the State of New York.

 
HISTORY:

2022: S7536A - RACING, GAMING AND WAGERING Committee

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day.

2023-S2343 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2343
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by  Sen. ADDABBO -- 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 wagers on certain  horse  racing  events  and  authorizing
   agreements between a mobile sports wagering operator and an affiliate
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 1367 of  the  racing,  pari-mutuel
 wagering  and  breeding  law  is  amended by adding three new paragraphs
 (dd), (ee) and (ff) to read as follows:
   (DD) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT  CONDUCTED
 IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLE TWO, THREE, FIVE,
 NINE,  OR  TEN  OF  THIS CHAPTER, AS WELL AS ANY SPORT OR ATHLETIC EVENT
 CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH  IF  CONDUCTED  IN  NEW  YORK
 STATE, WOULD BE SUBJECT TO THE PROVISIONS OF SUCH ARTICLES.
   (EE) "AFFILIATE" MEANS ANY OFF-TRACK BETTING CORPORATION, PROFESSIONAL
 SPORTS  STADIUM  OR  ARENA,  AUTOMOBILE  RACING  FACILITY  THAT  HOSTS A
 NATIONAL ASSOCIATION FOR STOCK CAR AUTO RACING  NATIONAL  TOURING  RACE,
 FRANCHISED  CORPORATION,  THOROUGHBRED  RACING CORPORATION OR OTHER RACE
 TRACK LICENSED PURSUANT TO THIS CHAPTER, OR AN OPERATOR OF VIDEO LOTTERY
 GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN  HUNDRED  SEVEN-
 TEEN-A  OF  THE  TAX LAW, WHICH HAS AN AFFILIATE AGREEMENT WITH A MOBILE
 SPORTS WAGERING OPERATOR PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV-
 EN-A OF THIS TITLE.
   (FF) "FIXED ODDS SPORTS WAGERING AGREEMENT" MEANS AN AGREEMENT BETWEEN
 A MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGERING LICENSEE AND
 AN ENTITY THAT POSSESSES A LICENSE AWARDED PURSUANT TO  ARTICLE  TWO  OR
 THREE  OF  THIS  CHAPTER  THAT  HAS THE AUTHORITY TO CONDUCT PARI-MUTUEL
 WAGERING ON THE FORM OF RACING INVOLVED IN  THE  RELEVANT  HORSE  RACING
 EVENT AND SUBJECT TO THE APPROVAL OF THE COMMISSION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06819-01-3

 S. 2343                             2
 
   §  2.  Paragraph  (s)  of subdivision 1 of section 1367 of the racing,
 pari-mutuel wagering and breeding law, as amended by section 3 of part Y
 of chapter 59 of the laws of 2021, is amended to read as follows:
   (s)  "Prohibited  sports event" means (I) a sport or athletic event in
 which any New York college team participates  regardless  of  where  the
 event  takes  place, [or] (II) A high school sport or athletic event, OR
 (III) A HORSE RACING EVENT. [The]  NOTWITHSTANDING  THE  FOREGOING,  THE
 following  shall  not  be  considered  prohibited sports events: [(i)] a
 collegiate tournament, [and (ii)] a sports event within such  tournament
 so  long as no New York college team is participating in that particular
 sports event, AND A HORSE RACING EVENT THAT IS  OFFERED  PURSUANT  TO  A
 FIXED ODDS SPORTS WAGERING AGREEMENT;
   §  3.  Subdivision 2 of section 1367 of the racing, pari-mutuel wager-
 ing and breeding law is amended by adding a new paragraph (e-1) to  read
 as follows:
   (E-1)(I)(1)  A MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGER-
 ING LICENSEE MAY ACCEPT A FIXED ODDS WAGER ON A HORSE  RACING  EVENT  IF
 SUCH  MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGERING LICENSEE
 HAS ENTERED INTO A FIXED ODDS SPORTS WAGERING AGREEMENT WITH  AN  ENTITY
 THAT HAS THE AUTHORITY TO PROVIDE THE CONTENT OF SUCH HORSE RACING EVENT
 PURSUANT  TO ARTICLE TWO OR THREE OF THIS CHAPTER. IN FURTHERANCE OF ANY
 FIXED ODDS SPORTS WAGERING AGREEMENT, AN ENTITY THAT HOLDS  A  FRANCHISE
 OR  LICENSE  PURSUANT  TO  ARTICLE  TWO  OF  THIS CHAPTER MAY ONLY OFFER
 CONTENT INVOLVING THOROUGHBRED RACES AND AN ENTITY THAT HOLDS A  LICENSE
 PURSUANT TO ARTICLE THREE OF THIS CHAPTER MAY ONLY OFFER CONTENT INVOLV-
 ING STANDARDBRED RACES.
   (2)  ALL FIXED ODDS SPORTS WAGERING AGREEMENTS MUST BE APPROVED BY THE
 COMMISSION PRIOR TO TAKING EFFECT. ANY CONTENT OFFERED  PURSUANT  TO  AN
 APPROVED FIXED ODDS SPORTS WAGERING AGREEMENT SHALL SUBSEQUENTLY BE MADE
 AVAILABLE  TO  ANY  INTERESTED MOBILE SPORTS WAGERING OPERATOR OR MOBILE
 SPORTS WAGERING LICENSEE ON COMMERCIALLY REASONABLE TERMS, AS DETERMINED
 BY THE COMMISSION.
   (II) ANY HOLDER OF A PARI-MUTUEL WAGERING FRANCHISE OR LICENSE  PURSU-
 ANT  TO  ARTICLE  TWO  OR THREE OF THIS CHAPTER THAT ENTERS INTO A FIXED
 ODDS SPORTS WAGERING AGREEMENT SHALL SEPARATELY  MAINTAIN  AN  AGREEMENT
 WITH  THE  APPLICABLE  HORSEMEN'S ASSOCIATION, SETTING FORTH THE TYPE OF
 WAGERS THAT MAY BE PLACED ON A HORSE RACING  EVENT  AND  THE  MANNER  IN
 WHICH REVENUE GENERATED PURSUANT TO THE AGREEMENT OR AGREEMENTS WITH THE
 MOBILE SPORTS WAGERING OPERATOR OR MOBILE SPORTS WAGERING LICENSEE SHALL
 BE DISTRIBUTED.
   §  4.  Section 1367-a of the racing, pari-mutuel wagering and breeding
 law is amended by adding a new subdivision 8 to read as follows:
   8. (A) FOR PURPOSES OF  THIS  SUBDIVISION,  AN  "AFFILIATE  AGREEMENT"
 SHALL  MEAN AN AGREEMENT ENTERED INTO BETWEEN AN AFFILIATE AND AN OPERA-
 TOR, MOBILE SPORTS WAGERING OPERATOR, OR MOBILE SPORTS WAGERING LICENSEE
 TO LOCATE SELF-SERVICE SPORTS BETTING KIOSKS THAT  ARE  OWNED,  OPERATED
 AND  MAINTAINED  BY  THE  OPERATOR,  MOBILE SPORTS WAGERING OPERATOR, OR
 MOBILE SPORTS WAGERING LICENSEE, AND CONNECTED VIA THE INTERNET  TO  THE
 MOBILE SPORTS WAGERING OPERATOR OR LICENSEE'S  SERVER OR OTHER EQUIPMENT
 USED TO ACCEPT MOBILE SPORTS WAGERS AT A LICENSED GAMING FACILITY PURSU-
 ANT  TO  THIS  SECTION  UPON  THE PREMISES OF THE AFFILIATE.  AUTHORIZED
 SPORTS BETTORS MAY PLACE ACCOUNT WAGERS, PLACE  AND  REDEEM  NON-ACCOUNT
 CASH WAGERS, AND DEPOSIT AND WITHDRAW ACCOUNT FUNDS AT SUCH KIOSKS.
   (B)  ALL  AFFILIATE AGREEMENTS SHALL BE SUBJECT TO REGULATIONS PROMUL-
 GATED BY THE COMMISSION AND MUST BE APPROVED BY THE COMMISSION PRIOR  TO
 TAKING EFFECT. ANY SUCH AFFILIATE AGREEMENT SHALL INCLUDE A PLAN FOR THE
 S. 2343                             3
 
 TIMELY  PAYMENT OF LIABILITIES DUE TO THE AFFILIATE UNDER THE AGREEMENT;
 PROVIDED, HOWEVER, THAT SUCH PAYMENT OF LIABILITIES RELATED TO  A  WAGER
 SHALL TAKE PLACE NO LATER THAN SIXTY DAYS AFTER A WAGER IS RECEIVED AT A
 KIOSK;  AND  PROVIDED FURTHER, THAT THE COMMISSION SHALL NOT APPROVE ANY
 SUCH AGREEMENT BETWEEN A MOBILE SPORTS WAGERING OPERATOR AND  A  PROFES-
 SIONAL SPORTS STADIUM OR ARENA UNTIL SIX MONTHS AFTER THE EFFECTIVE DATE
 OF  THIS PARAGRAPH.  FOR PURPOSES OF THIS PARAGRAPH, "LIABILITIES" SHALL
 NOT INCLUDE ANY POTENTIAL WINNINGS.
   § 5. This act shall take effect on the ninetieth day  after  it  shall
 have become a law. Effective immediately, the addition, amendment and/or
 repeal  of  any  rule  or regulation necessary for the implementation of
 this act on its effective date are authorized to be made  and  completed
 on or before such effective date.

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