§ 1009. Simulcast theaters. 1. The commission may authorize and
approve eight licenses, except that any approval of a license for a
franchised corporation shall not decrease the number of licenses
available, as of July first, nineteen hundred ninety to any other
eligible operator under subdivision two of this section, for the
operation of simulcast theaters as defined in section one thousand one
of this article. One such license shall only be approved for the
regional off-track betting corporation defined by paragraph b of
subdivision one of section five hundred nineteen of this chapter.

2. Such a simulcast theater, pursuant to a license issued in
accordance with the provisions of this section and section one thousand
three of this article may be owned or leased, and operated, (a) by one
or more racing associations or corporations; (b) by the regional
off-track betting corporation of the region where such simulcast theater
facility is to be located; (c) jointly by one or more racing
associations or corporations and the regional off-track betting
corporation of the region where such simulcast theater facility is to be
located; or (d) by a franchised corporation; provided, however, that for
the purposes of paragraph (a) of subdivision two-a of this section, an
entity authorized by paragraph (b) or (c) of this subdivision to own,
lease or operate a simulcast theater may, pursuant to a competitive
bidding procedure carried out in accordance with rules and regulations
issued by the commission, select another person, firm or corporation to
operate or jointly own or lease such facility and enter into a written
agreement with such person, firm or corporation provided that such party
shall be subject to the licensing requirements of the commission.

2-a. Notwithstanding the provisions of subdivision one of this
section, the commission may authorize one or more licenses, as provided
in paragraphs (b) and (c) of subdivision two of this section, to enter
into a written agreement with another person, firm or corporation to
jointly operate or lease such facility for the operation of simulcast at
entertainment theaters as special demonstration projects for purposes of
stimulating economic development, employment opportunities and state and
local revenues. Such demonstration projects shall be licensed in
accordance with all applicable laws, rules and regulations of this
article.

(a) In Sullivan, Greene and Ulster counties the commission shall
determine the number of such projects to be located in privately owned
hotels in such counties for the exclusive use of the hotel guests.

(b) The commission may additionally authorize one special
demonstration project within the city of New York.

(c) The commission may authorize a special demonstration project to be
located in any facility licensed pursuant to article thirteen of this
chapter in Schenectady county. Notwithstanding the provisions of
paragraph a of subdivision five of this section, an admission fee shall
not be required for a demonstration project authorized in this
paragraph. On any day when a regional harness track conducts a live race
meeting, a demonstration facility within that region shall predominantly
display the live video of such regional harness track.

The regional off-track betting corporations operating such
demonstration facilities within New York city may elect to apply the
provisions of section five hundred thirty-two of this chapter in lieu of
any admission charges.

3. Any application for such license shall be subject to those
conditions set forth in section one thousand three and shall also
include:

a. A written agreement between the sending tracks and the applicant;

b. Letters of consent to the application from any regional track that
is not a party to the operation of the proposed theater unless such
track is located more than forty miles from the proposed simulcast
theater; and a copy of any agreement between the applicant and such
corporation pursuant to which such consent has been given, subject to
the provision of subdivision two of section one thousand seven of this
article. Notwithstanding the foregoing, the Nassau region may apply to
locate one simulcast theater within Nassau County without a letter of
consent from the operator of the regional track provided the proposed
simulcast theater is not within fifteen miles of the closest border of
any racing facility operated by a franchised corporation.

c. Except for an application from a franchised corporation to operate
within the Suffolk region, Nassau region, New York City region, or
Westchester county in the absence of enabling legislation, a letter of
consent to the application from the regional off-track betting
corporation of the region where such simulcast theater facility is to be
located if such corporation is not a party to the operation of the
proposed theater.

d. If such theater is to be jointly operated by one or more racing
associations or corporations or by one or more racing associations or
corporations and the regional off-track betting corporation of the
region where such simulcast theater is to be located or if the costs,
revenues and/or net profits from the operation of such facility are to
be allocated among more than one such party, a copy of a written
agreement among such corporations or associations as to the rights and
responsibilities of each such party and the provisions pursuant to which
costs, revenues and/or net profits are to be allocated.

e. A copy of a resolution adopted by the governing body of the city,
town or village in which the proposed simulcast theater is to be
located, approving the application and requesting that the application
for the proposed simulcasting theater be approved. In a city of one
million or more, approval of the mayor shall also be required. Approval
of the governing body of the county and the county executive within
which such municipality is located shall also be required. If the
proposed facility is to be located wholly within a village, approval by
the governing body of the town or towns within which such village is
located shall also be required.

f. An application from a franchised corporation shall not be
considered by a city of one million or more, earlier than eighteen
months after this provision shall have become law.

4. Notwithstanding any inconsistent provisions of this chapter, the
sums retained by any associations or corporations from the total
deposits in pools wagered on simulcast racing events at a simulcast
theater as provided in subdivision one of this section shall be equal to
the rates of retained percentage applicable to the sending track.

a. Of the sums retained by the operator as provided in this
subdivision, the pari-mutuel tax shall be levied at the following rates
plus twenty percent of the breaks: from wagers on thoroughbred races,
eight-tenths of one percent of pools generated from regular wagers; one
and three-tenths percent of pools generated from multiple wagers; two
and eight-tenths percent of pools generated from exotic wagers; and
three and one-half percent of pools generated from super exotic wagers;
and from wagers on harness races, one-half of one percent of pools
generated from regular wagers; one percent of pools generated from
multiple wagers; two and one-half percent of pools generated from exotic
wagers and three percent of pools generated from super exotic wagers.

b. Of the sums retained by the operator as provided in this
subdivision, an amount equal to one percent of daily pools derived from
bets on simulcasts of harness races shall be paid to the agriculture and
New York state horse breeding development fund, and an amount equal to
one-half of one percent of daily pools derived from bets on simulcasts
of running races shall be paid to the New York state thoroughbred
breeding and development fund.

c. The payment of the state tax imposed by this section shall be made
to the commissioner of taxation and finance at such regular intervals as
the commissioner of taxation and finance may require, and shall be
accompanied by a report, under oath, that sets forth such information as
the commissioner of taxation and finance may require. A penalty of five
percent and interest at the rate of one percent per month from the date
the report is required to be filed to the date of payment of the tax
shall be payable in case any tax imposed by this section is not paid
when due. If the commissioner of taxation and finance determines that
any moneys received under this paragraph were paid in error, the
commissioner may cause the same to be refunded without interest out of
any moneys collected thereunder, provided an application therefor is
filed with the commissioner within one year from the time the erroneous
payment was made. Such taxes, interest and penalties when collected,
after the deduction of refunds of taxes erroneously paid, shall be paid
by the commissioner of taxation and finance into the general fund of the
state treasury.

d. The operator shall pay to the commission as a regulatory fee, which
fee is hereby levied, six-tenths of one percent of the total daily
pools.

4-a. Notwithstanding any inconsistent provision of this chapter, of
the sums received by a sending track, a portion shall be distributed to
purses in accordance with a written agreement between the racing
association or corporation operating such track and the horsemen's
organization representing owners and trainers at such track, as
determined by the commission. In the absence of such an agreement, fifty
percent of the sums received by a sending track shall be distributed to
purses.

5. a. An admission fee to simulcast theaters shall be charged and the
amount of such admission fee shall be subject to the approval of the
commission.

c. Any county (except a county wholly within a city) or city, or both,
in which a simulcast theater is located, is hereby authorized and
empowered to adopt and amend local laws imposing a tax on such admission
fee at a rate not to exceed fifteen percent of the admission fee. The
provisions of article eight of this chapter relating to the
administration and collection of the taxes authorized to be imposed by
such article (including the provisions relating to judicial review)
shall apply to a tax imposed pursuant to the authority of this
paragraph, in the same manner and with the same force and effect as if
the language of such provisions had been incorporated in full into this
paragraph and had expressly referred to a tax authorized to be imposed
pursuant to this paragraph, except to the extent that any such provision
is either inconsistent with a provision of this paragraph or is not
relevant to this paragraph.

6. The size, location and operation of a simulcast theater shall be
subject to local zoning ordinances and the approval of the commission.

7. The sale of food and beverages shall be subject to the applicable
state and local alcoholic beverage control laws and sales taxes.

8. All wagers resulting from the simulcast of racing events pursuant
to this section shall be combined with wagers at the sending 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 sending track or a simulcast theater.

9. Each license to operate a simulcast theater is subject to
suspension as provided in section one thousand four of this article.

10. The operator may contract with the city, town or village in which
the simulcast theater is located to pay to such municipality a sum not
to exceed one percent of pools generated from all wagers at such theater
in lieu of any other local tax.

11. The provisions of section one thousand thirteen of this chapter
shall apply to any disputes with regard to the requirements of
subdivision three of this section provided, however, that binding
arbitration shall not be a remedy if the proposed simulcast theater is
less than forty miles from a regional track.