§ 906. Handicapping tournaments. 1. Notwithstanding any other
provision of law, a thoroughbred racing corporation, a harness racing
corporation or association, a regional off-track betting corporation or
a combination thereof, may operate a handicapping tournament at which
the participants may be charged an entry fee if the tournament is
conducted in accordance with the provisions of this section.

2. (a) The operator of a handicapping tournament shall distribute all
of the entry fees as prizes to the winners of the tournament. Nothing
herein shall preclude an operator from providing additional prizes or
promotions.

(b) The commission shall approve the rules and the payment of prizes
of a handicapping tournament. No operator of a handicapping tournament
may accept an entry fee for a tournament until the commission has
approved the rules and the payment of prizes of a handicapping
tournament.

(c) The horse races which are the subject of the tournament must be
races on which the operator of the tournament is authorized to conduct
wagering. At least fifty percent of the races which are the subject of
the tournament must be races run in New York state.

3. A handicapping tournament operated in accordance with the
provisions of this section shall be considered a contest of skill and
shall not be considered gambling.