§ 1003. Licenses for simulcast facilities. 1. (a) Any racing
association or corporation or regional off-track betting corporation,
authorized to conduct pari-mutuel wagering under this chapter, desiring
to display the simulcast of horse races on which pari-mutuel betting
shall be permitted in the manner and subject to the conditions provided
for in this article may apply to the commission for a license so to do.
Applications for licenses shall be in such form as may be prescribed by
the commission and shall contain such information or other material or
evidence as the commission may require. No license shall be issued by
the commission authorizing the simulcast transmission of thoroughbred
races from a track located in Suffolk county. The fee for such licenses
shall be five hundred dollars per simulcast facility and for account
wagering licensees that do not operate either a simulcast facility that
is open to the public within the state of New York or a licensed
racetrack within the state, twenty thousand dollars per year payable by
the licensee to the commission for deposit into the general fund. Except
as provided in this section, the commission shall not approve any
application to conduct simulcasting into individual or group residences,
homes or other areas for the purposes of or in connection with
pari-mutuel wagering. The commission may approve simulcasting into
residences, homes or other areas to be conducted jointly by one or more
regional off-track betting corporations and one or more of the
following: a franchised corporation, thoroughbred racing corporation or
a harness racing corporation or association; provided (i) the
simulcasting consists only of those races on which pari-mutuel betting
is authorized by this chapter at one or more simulcast facilities for
each of the contracting off-track betting corporations which shall
include wagers made in accordance with section one thousand fifteen, one
thousand sixteen and one thousand seventeen of this article; provided
further that the contract provisions or other simulcast arrangements for
such simulcast facility shall be no less favorable than those in effect
on January first, two thousand five; (ii) that each off-track betting
corporation having within its geographic boundaries such residences,
homes or other areas technically capable of receiving the simulcast
signal shall be a contracting party; (iii) the distribution of revenues
shall be subject to contractual agreement of the parties except that
statutory payments to non-contracting parties, if any, may not be
reduced; provided, however, that nothing herein to the contrary shall
prevent a track from televising its races on an irregular basis
primarily for promotional or marketing purposes as found by the
commission. For purposes of this paragraph, the provisions of section
one thousand thirteen of this article shall not apply. Any agreement
authorizing an in-home simulcasting experiment commencing prior to May
fifteenth, nineteen hundred ninety-five, may, and all its terms, be
extended until June thirtieth, two thousand twenty-five; provided,
however, that any party to such agreement may elect to terminate such
agreement upon conveying written notice to all other parties of such
agreement at least forty-five days prior to the effective date of the
termination, via registered mail. Any party to an agreement receiving
such notice of an intent to terminate, may request the commission to
mediate between the parties new terms and conditions in a replacement
agreement between the parties as will permit continuation of an in-home
experiment until June thirtieth, two thousand twenty-five; and (iv) no
in-home simulcasting in the thoroughbred special betting district shall
occur without the approval of the regional thoroughbred track.

(b) Any agreement authorizing in-home simulcasting pursuant to this
section shall be in writing, and upon written request, a copy shall be
provided to the representative horsemen's group of the racing
association or corporation that is party to said agreement. Such
agreement shall include a categorical statement of new and incremental
expenses directly related and attributable to the conduct of in-home
simulcasting. The representative horsemen's group may, within thirty
days of receiving the agreement, petition the commission for a
determination as to the appropriateness and reasonableness of any
expenses attributed by either the racing association or corporation or
the off-track betting corporation.

2. Before the commission may grant such license, the commission shall
review and approve a plan of operation submitted by such applicant
including, but not limited to the following information:

a. A feasibility study denoting the revenue earnings expected from the
simulcast facility and the costs expected to operate such facility. No
feasibility study shall be received for a simulcast facility that is
applying to renew its license. The form of the feasibility study shall
be prescribed by the commission and may include:

(i) the number of simulcast races to be displayed;

(ii) the types of wagering to be offered;

(iii) the level of attendance expected and the area from which such
attendance will be drawn;

(iv) the level of anticipated wagering activity;

(v) the source and amount of revenues expected from other than
pari-mutuel wagering;

(vi) the cost of operating the simulcast facility and the
identification of costs to be amortized and the method of amortization
of such costs;

(vii) the amount and source of revenues needed for financing the
simulcast facility;

(viii) the probable impact of the proposed operation on revenues to
local government;

b. The security measures to be employed to protect the facility, to
control crowds, to safeguard the transmission of the simulcast signals
and to control the transmission of wagering data to effectuate common
wagering pools;

c. The type of data processing, communication and transmission
equipment to be utilized;

d. The description of the management groups responsible for the
operation of the simulcast facility;

e. The system of accounts to maintain a separate record of revenues
collected by the simulcast facility, the distribution of such revenues
and the accounting of costs relative to the simulcast operation;

f. The location of the facility and a written confirmation from
appropriate local officials that the location of such facility and the
number of patrons expected to occupy such facility are in compliance
with all applicable local ordinances;

g. The written agreements and letters of consent between specified
parties pursuant to sections one thousand seven, one thousand eight and
one thousand nine of this article.

3. Within forty-five days of receipt of the plan of operation provided
in subdivision two of this section, the commission shall issue an order
approving the plan, approving it with modifications or denying approval,
in which latter case the commission shall state its reasons therefor.
Within such period the commission may request additional information or
suggest amendments. If the commission fails to approve the plan, the
applicant may request a public hearing to be held within thirty days of
the issuance of an order denying it. The commission shall issue its
final determination within ten days of such hearing. The applicant may
submit an amended application no sooner than thirty days after a denial.

4. No racing association, franchised corporation or corporation or
regional off-track betting corporation shall be allowed to operate a
simulcast facility except according to the provisions of an approved
plan of operation. No change in such plan of operation may occur until
an amendment proposing a change to the plan is approved by the
commission. A plan of operation may be amended from time to time at the
request of either the operator or the commission. The operator shall
have the right to be heard concerning any amendment to the plan and the
commission shall dispose of such proposed amendments as expeditiously as
practicable, but no later than thirty days following submission by the
operator or, in the case of amendments proposed by the commission,
objection by the operator.

5. For the purpose of maintaining proper control over simulcasts
conducted pursuant to this article, the commission shall license any
person, association or corporation participating in simulcasting, as the
commission may by rule prescribe, including, if the commission deem it
necessary so to do, any or all persons, associations or corporations who
create, distribute, transmit or display simulcast signals. In the case
of thoroughbred racing simulcasting or harness racing simulcasting, such
licenses shall be issued in accordance with and subject to the
provisions governing licenses for participants and employees in article
two or article three of this chapter as may be applicable to such type
of racing.