§ 523. General limitations on off-track betting. The commission shall
require that any regional corporation conduct off-track pari-mutuel
betting in accordance with this section.

1. The system of off-track betting operated by such corporation,
except as otherwise provided in this section, shall result in the
combination of all off-track wagers with on-track wagers 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
off-track or on-track.

2. Exotic and multiple bets on races run within the state may be
approved by the commission without a comparable on-track pool, provided
that the corporation or association conducting such races shall have
filed with the commission a written consent for such off-track exotic or
multiple bets on races held at its track.

3. The commission may approve separate off-track pools on races run in
other states subject to the limitations of this section and of
subdivision eight of this section in particular.

4. No regional corporation authorized to conduct off-track betting by
the commission shall accept off-track wagers on races run at any harness
track located without its region while a harness track within its region
is conducting a race meeting involving pari-mutuel betting without the
approval of the regional operating harness track; provided, however,
that for the purposes of this subdivision, the Suffolk region, the
Nassau region, the New York city region, and the portion of the Catskill
region outside a special betting district shall be considered a single
region; and further provided, however, that for the purposes of this
subdivision, there shall be created a harness special betting district,
consisting of the counties of Cayuga, Chenango, Cortland, Franklin,
Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Otsego,
St. Lawrence and Tompkins in which no off-track betting on races run at
a harness track without such special betting district shall be permitted
while a harness track within such special betting district is conducting
a race meeting involving pari-mutuel betting.

4-a. Notwithstanding any inconsistent provision of subdivision four of
this section, regional off-track betting corporations are hereby
authorized and empowered in each year to accept wagers on the races
known as the "Dr. Harry M. Zweig Memorial Trot" and "Empire Commission's
Cup" (A pace) to be run under the auspices of the New York State
Industrial Exhibit Authority.

5. Except for races conducted by a thoroughbred track in the Catskill
region during a mixed meeting, no regional corporation shall accept
wagers on any thoroughbred or steeplechase race run on any thoroughbred
or steeplechase track located without its region while a thoroughbred or
steeplechase track within its region is conducting a race meeting
involving pari-mutuel betting without the approval of the operating
regional thoroughbred or steeplechase track, except that the Catskill
and Suffolk regional corporations may accept wagers on any thoroughbred
track outside its region while a thoroughbred track within the region is
conducting such a race meeting provided the regional corporation accepts
wagers on such track within the region; provided, however, that for the
purposes of this subdivision, there shall be created a thoroughbred
special betting district, consisting of the counties of Orleans,
Genesee, Wyoming, Allegany, Monroe, Livingston, Steuben, Wayne, Ontario,
Yates, Seneca, Schuyler, Cayuga, Tompkins, Onondaga and Cortland, in
which no off-track betting on races run at a thoroughbred or
steeplechase track without such special district including such a track
within the Catskill region shall be permitted while a thoroughbred or
steeplechase track within such special district is conducting a race
meeting involving pari-mutuel betting without the approval of the
operating regional thoroughbred or steeplechase track; provided,
however, that within such district in the counties of Wyoming, Allegany,
Steuben and Schuyler off-track betting on races run at a track by a
franchised corporation without such special district shall be permitted.
Notwithstanding any inconsistent provision in the foregoing, the
regional off-track betting corporations are hereby authorized and
empowered to accept all wagers on races known as the "Belmont Stakes",
the "Travers Stakes", the "Breeders' Cup Series" and the "New York
Derby"; and such corporation, outside of a harness special betting
district, is hereby authorized and empowered to accept wagers on the
races comprising the seven-day race meeting known as the "Syracuse
Mile".

6. a. No regional corporation may accept wagers on races run at a
thoroughbred or steeplechase track in another state or country while a
thoroughbred or steeplechase track within this state is conducting a
race meeting involving pari-mutuel betting; provided, however, that
notwithstanding any inconsistent provision, the commission may designate
no more than fifteen thoroughbred or steeplechase races per year as
races of special interest on which off-track pari-mutuel betting may be
accepted by regional corporations, provided further that for purposes of
this subdivision the acceptance of wagers on a series of races known as
the "Breeders' Cup" shall be considered as a single thoroughbred or
steeplechase race of special interest and all such races shall be
determined in accordance with article nine of this chapter.

b. When a race meeting is not being conducted by a franchised
corporation and a thoroughbred race meeting is being conducted at a
track located within the thoroughbred special betting district, regional
corporations and portions of regional corporations outside such
district, shall, in addition to accepting wagers on races at such track,
also be permitted to accept wagers on thoroughbred races run in another
state. In the event that wagers are accepted on races run at both a
track located in the thoroughbred special betting district and at a
track located in another state, the balance of the amount payable to
tracks within this state pursuant to paragraph f of subdivision one of
section five hundred twenty-seven of this article, but (i) not less than
one percent on regular and multiple wagering and two percent on exotic
wagers, shall be paid to the track located within the thoroughbred
special betting district running thoroughbred races, and (ii) not less
than three-quarters of one percent of regular and multiple wagering and
one and one-quarter percent on exotic wagers shall be paid to the
harness track operator conducting racing within the region within which
the wagers on such out-of-state races are placed.

c. If as a result of the authorization granted in paragraph b of this
subdivision, the average daily distribution to harness track operators
from regional off-track betting corporations and attributable to the
conduct of off-track betting on thoroughbred races run concurrently by
both an in-state and an out-of-state track operator during the period
from June first, nineteen hundred seventy-eight through May
thirty-first, nineteen hundred seventy-nine and each succeeding
twelve-month period thereafter is less than the average daily
distribution to such operators from off-track betting corporations and
attributable to the conduct of racing by a thoroughbred racing
association during the base period of June first, nineteen hundred
seventy-seven through May thirty-first, nineteen hundred seventy-eight,
such operators shall be entitled to a credit against the state tax
imposed upon its pari-mutuel revenues. The tax credit for any
twelve-month period shall be an amount calculated by multiplying the
shortfall in the average daily distribution by the number of days in
each twelve-month period that regional off-track betting corporations
conduct betting on thoroughbred races run concurrently by both an
in-state and an out-of-state track operator. The commission shall so
certify to the department of taxation and finance the amount of credit
applicable to each harness track operator no later than thirty days
following the close of each twelve-month period.

7. No regional corporation may accept wagers on races run at a harness
track in another state or country while a harness track within this
state is conducting a race meeting involving pari-mutuel betting;
provided, however, that notwithstanding any inconsistent provisions the
commission may designate no more than fifty harness races per year as
races of special interest on which off-track pari-mutuel betting may be
accepted by regional corporations.

8. Pools permitted by subdivisions three, six and seven of this
section shall be combined into a single statewide pool for the
calculation of odds and the determination of payouts which shall be
uniform throughout the state.

9. Notwithstanding any other provision of this article any regional
corporation having a missed pool as defined in this subdivision shall
dispose of such pool according to rules and regulations of the
commission, which shall direct such regional corporations and such
missed pools to the in-state track conducting the race on which the
wager was placed to be used for the next available common pool.