§ 904. On-track wagers on the Kentucky Derby, the Preakness and the
Breeders' Cup. 1. Notwithstanding any inconsistent provision of this
chapter, whenever a regional off-track betting corporation accepts
wagers on and displays the simulcast of the Kentucky Derby, the
Preakness or races known as the "Breeders' Cup", any corporation or
association conducting pari-mutuel betting pursuant to this chapter may
elect to accept wagers on and display the simulcast of the Kentucky
Derby, the Preakness and the races known as the Breeders' Cup. Upon such
election:

a. The applicable state tax provided for in paragraphs a and b of
subdivision one of section five hundred twenty-seven of this chapter
shall be one-half percent for regular, multiple and exotic bets. Any
harness racing or association or corporation, or thoroughbred racing
corporation authorized pursuant to this section shall pay to the
commission as a regulatory fee, which fee is hereby levied, six-tenths
of one percent of the total daily pari-mutuel pools.

b. The system of on and off-track betting shall result in the
combination of all off-track wagers with on-track wagers so as to
produce common pari-mutuel betting pools. Provided, however, that the
commission may authorize separate pari-mutuel wagering pools for any
corporation or association electing to accept such wagers, if the
commission determines that a common on and off-track pari-mutuel betting
pool, due to limitations in existing computer systems and information
transmission and receiving capacities cannot practically be accomplished
so as to maximize a reasonable number of separate wagering interests.
The resulting separate pools for regional off-track betting corporations
shall be subject to the limitations set forth in subdivision eight of
section five hundred twenty-three of this chapter.

c. Every association and corporation shall distribute all sums
deposited in any pari-mutuel pool to the holders of winning tickets
therein, providing such tickets be presented for payment before April
first of the year following the year of their purchase, less an amount
that it shall retain at the same rate established by the sending track
plus the breaks.

d. For a franchised corporation, the applicable state tax and
distributions to purses and the New York state thoroughbred breeding and
development fund shall be the same amounts as provided in section two
hundred thirty-eight of this chapter provided, however, that upon
election of any corporation to accept such wagers, no additional amounts
may be withheld as provided in section two hundred thirty-seven of this
chapter.

e. For any corporation licensed pursuant to article two of this
chapter, the applicable state tax shall be one percent of all wagers,
the amount payable to the thoroughbred breeding and development fund
shall be one-half of one percent and distribution to purses shall be
fifty percent of the amount retained by the track after all statutory
and contracted payments are made. No additional amounts may be withheld
as provided in section two hundred thirty-seven of this chapter.

f. For any association or corporation licensed pursuant to article
three of this chapter, the applicable state tax shall be one percent of
all wagers, the amount payable to the thoroughbred breeding and
development fund shall be one-half of one percent and distributions to
purses shall be one and three-quarters percent. No additional amounts
may be withheld as provided in section three hundred nineteen of this
chapter. For the purposes of purse distributions, any association or
corporation located in the Western Off-Track Betting Region shall remit
said distributions to the thoroughbred track located within said region
and all other corporations or associations shall remit said purse
distributions to a franchised corporation.

Notwithstanding any other provision of law, any such association or
corporation conducting pari-mutuel wagering on races run by a franchised
corporation on the days when they are accepting wagers on the Kentucky
Derby, the Preakness or the Breeders' Cup shall pay a state pari-mutuel
tax of one percent of all such wagers in lieu of the tax imposed by
paragraph a of subdivision three of section one thousand seven of this
chapter.

2. The commission shall approve an application from any racing
corporation or association pursuant to subdivision one of this section
to accept on-track wagers and display the simulcast of the Kentucky
Derby or the Preakness provided, however, that no application shall be
approved by the board that it determines may cause a reduction of the
total number of racing events normally conducted at the track on a daily
basis.

2-a. The commission shall approve an application from any racing
corporation or association pursuant to subdivision one of this section
to accept on-track wagers on the Breeders' Cup races, and, in instances
where the application contemplates the on-track display of simulcasts of
and wagering on the entire card of Breeders' Cup races, the commission
shall authorize, for that day, a reduction of the total number of racing
events normally conducted at the track on a daily basis provided that
the total number of live racing events conducted at the track shall not
be less than two.

3. Every racing association or corporation authorized to accept wagers
on the Kentucky Derby, the Preakness or the Breeders' Cup pursuant to
subdivision one of this section shall be subject to all appropriate
provisions of this chapter pursuant to the conduct of a race meeting by
such association or corporation.

4. Notwithstanding any other provision of law, whenever a harness
racing association or corporation is receiving the simulcast of races
run at a thoroughbred racing corporation, such harness racing
association may also receive the telecast of and accept wagers on any
out of state races which are telecast to the thoroughbred racing
corporation. Pools resulting from wagers in the out of state races shall
be combined with the appropriate pools resulting from wagers on such
races at the thoroughbred racing corporation.