Provides for account wagering on horse races within and without the state; authorizes the operation of multi-jurisdictional account wagering providers in this state, subject to the rules and regulations of the state racing and wagering board; provides that any wagering account upon which no wager is made for 4 or more years shall be deemed to be abandoned property.

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S6571-2011 Actions

• Feb 29, 2012: REFERRED TO RACING, GAMING AND WAGERING

S6571-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    6571

                              I N  SENATE

                              February 29, 2012
                                 ___________

  Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
    printed to be committed to the Committee on Racing, Gaming and  Wager-
    ing

  AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
    relation to account wagering on simulcast horse races and horse  races
    offered by multi-jurisdictional account wagering providers

    THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section 1. Section 1001 of the racing, pari-mutuel wagering and breed-
  ing law, as added by chapter 363 of the laws of 1984, subdivisions n,  o
  and p as added by chapter 445 of the laws of 1997, is amended to read as
  follows:

    S  1001.  Definitions.  As  used  in this article, the following terms
  shall have the following meanings:

    a. "Simulcast" means the telecast of live audio and visual signals  of
  running, harness or quarter horse races [conducted in the state] for the
  purposes of pari-mutuel wagering;
    b.  "Track"  means  the grounds or enclosures within which horse races
  are conducted by any person, association or corporation lawfully author-
  ized to conduct such races in accordance with the terms  and  conditions
  of this chapter OR THE LAWS OF ANOTHER JURISDICTION;
    c. "Sending track" means any track from which simulcasts originate;
    d.  "Receiving track" means any track where simulcasts originated from
  another track are displayed;
    e. "Applicant" means any association or  corporation  applying  for  a
  simulcast license in accordance with the provisions of this article;
    f.  "Operator" means any association or corporation operating a simul-
  cast facility in accordance with the provisions of this article;
    g. "Regional track or tracks" means any or all tracks located within a
  region defined as an off-track  betting  region,  except  that  for  the
  purposes of section one thousand eight of this article any track located
  in  New York city, or Nassau, Suffolk and Westchester counties, shall be
  deemed a regional track for all regions  located  in  district  one,  as
  defined in this section;

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD14372-02-2

 S. 6571                             2

    h. "[The board] BOARD" means the state racing and wagering board;
    i.  "Branch  office" means an establishment maintained and operated by
  an off-track betting corporation, where off-track pari-mutuel betting on
  horse races may be placed in accordance with the terms and conditions of
  this chapter and rules and regulations issued pursuant thereto;
    j. "Simulcast facility" means those facilities within the  state  that
  are  authorized  pursuant  to  the provisions of this article to display
  simulcasts for pari-mutuel wagering purposes;
    k. "Off-track betting  region"  means  those  regions  as  defined  in
  section five hundred nineteen of this chapter;
    l.  "Simulcast  theater"  means  a  simulcast facility which is also a
  public entertainment and wagering facility, and which may include any or
  all of the following: a large screen television projection  and  display
  unit,  a  display  system  for odds, pools, and payout prices, areas for
  viewing and seating, a food and beverage facility, and any other conven-
  ience currently provided at racetracks and not inconsistent  with  local
  zoning ordinances;
    m.  "Simulcast  districts"  means  one  or more of the following named
  districts comprised of the  counties  within  which  pari-mutuel  racing
  events are conducted as follows:

      District 1                    New York City, Suffolk, Nassau, and
                                      Westchester counties
      District 2                    Sullivan county
      District 3                    Saratoga county
      District 4                    Oneida county
      District 5                    Erie, Genesee and Ontario counties
    n.  "Initial out-of-state thoroughbred track" means the track commenc-
  ing full-card simulcasting to New York prior to any  other  out-of-state
  thoroughbred track after 1:00 PM on any calendar day.
    o. "Second out-of-state thoroughbred track" means the track (or subse-
  quent  track  or  tracks  where  otherwise  authorized  by this article)
  conducting full-card simulcasting to New York  after  the  race  program
  from  the  initial  out-of-state  thoroughbred  track that has commenced
  simulcasting on any calendar day.
    p. "Mixed meeting" means a race meeting which  has  a  combination  of
  thoroughbred,  quarter horse, Appaloosa, paint, and/or Arabian racing on
  the same race program.
    Q. "ACCOUNT WAGERING" MEANS A FORM OF PARI-MUTUEL WAGERING IN WHICH  A
  PERSON  ESTABLISHES  AN  ACCOUNT  WITH  AN ACCOUNT WAGERING LICENSEE AND
  SUBSEQUENTLY COMMUNICATES VIA TELEPHONE OR OTHER ELECTRONIC MEANS TO THE
  ACCOUNT WAGERING LICENSEE WAGERING INSTRUCTIONS CONCERNING THE FUNDS  IN
  SUCH  PERSON'S  ACCOUNT  AND  WAGERS TO BE PLACED ON THE ACCOUNT OWNER'S
  BEHALF.
    R. "ACCOUNT WAGERING LICENSEE" MEANS  RACING  ASSOCIATIONS  OR  CORPO-
  RATIONS,  FRANCHISED  CORPORATIONS,  OFF-TRACK BETTING CORPORATIONS, AND
  BOARD APPROVED MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS THAT HAVE
  BEEN AUTHORIZED BY THE BOARD TO OFFER ACCOUNT WAGERING.
    S. "DORMANT ACCOUNT" MEANS AN ACCOUNT  WAGERING  ACCOUNT  HELD  BY  AN
  ACCOUNT  WAGERING  LICENSEE IN WHICH THERE HAS BEEN NO WAGERING ACTIVITY
  FOR FOUR YEARS.
    T. "MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER" MEANS  A  BUSINESS
  ENTITY  LOCATED  OUTSIDE  OF THE STATE OF NEW YORK, WHICH IS LICENSED BY
  SUCH OTHER STATE TO OFFER PARI-MUTUEL ACCOUNT  WAGERING  ON  RACES  SUCH
  PROVIDER  SIMULCASTS  AND  OTHER RACES IT OFFERS IN ITS WAGERING MENU TO
  PERSONS LOCATED IN OR OUT OF THE STATE ISSUING SUCH LICENSE.

 S. 6571                             3

    S 2. Section 1002 of the racing,  pari-mutuel  wagering  and  breeding
  law,  as  added  by  chapter  363  of the laws of 1984, subdivision 2 as
  amended by chapter 18 of the  laws  of  2008,  is  amended  to  read  as
  follows:

    S 1002. General jurisdiction. 1. The [state racing and wagering] board
  shall have general jurisdiction over the simulcasting of horse races AND
  ACCOUNT  WAGERING  OPERATIONS  within the state, and the board may issue
  rules and regulations in accordance with the provisions of this article.
    2. The board shall annually submit reports on  or  before  July  first
  following  each  year  in  which  simulcasting  OR  ACCOUNT  WAGERING is
  conducted to the director of the budget,  the  chairman  of  the  senate
  finance  committee  [and],  the  chairman of the assembly ways and means
  committee, CHAIRMAN OF THE SENATE RACING, GAMING AND WAGERING  COMMITTEE
  AND  THE CHAIRMAN OF THE ASSEMBLY RACING AND WAGERING COMMITTEE evaluat-
  ing the results of such simulcasts OR ACCOUNT WAGERING  on  the  compat-
  ibility with the well-being of the horse racing, breeding and pari-mutu-
  el  wagering  industries  in  this state and make any recommendations it
  deems appropriate. Such reports  may  be  submitted  together  with  the
  reports  required  by  subdivision two of section two hundred thirty-six
  and subparagraph (iii) of paragraph a and subparagraph (i) of  paragraph
  b of subdivision one of section three hundred eighteen of this chapter.
    S  3.  Section  1003  of the racing, pari-mutuel wagering and breeding
  law, as added by chapter 363 of the laws of 1984, subdivision 1 as sepa-
  rately amended by chapters 2 and 70 of the laws of 1995,  paragraph  (a)
  of  subdivision 1 as amended by section 1 of part S of chapter 61 of the
  laws of 2011, the opening paragraph of paragraph a of subdivision  2  as
  amended  by chapter 538 of the laws of 1999, subdivision 5 as amended by
  chapter 287 of the laws of 1985, is amended to read as follows:

    S 1003. Licenses for simulcast facilities. 1.  [(a)] Any racing  asso-
  ciation  or  corporation,  FRANCHISED 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 board for a
  license so to do. Applications for licenses shall be in such form as may
  be prescribed by the board and shall contain such information  or  other
  material  or  evidence  as  the  board may require. [No license shall be
  issued by the board authorizing the simulcast transmission of  thorough-
  bred  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  WHICH  DO NOT OPERATE A SIMULCAST FACILITY
  THAT IS OPEN TO THE PUBLIC, TWENTY-FIVE THOUSAND DOLLARS per year  paya-
  ble  by  the  licensee  to  the board for deposit into the general fund.
  [Except as provided herein, the board 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 wager-
  ing. The board 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 asso-
  ciation; 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

 S. 6571                             4

  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 board. 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 twelve; 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 board  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 twelve; 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 associ-
  ation 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  simulcast-
  ing.  The  representative  horsemen's  group  may, within thirty days of
  receiving the agreement, petition the board 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  it  may  grant  such  license,  the board 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  OR  THE OPERATION OF AN ACCOUNT WAGERING LICENSEE'S
  BUSINESS and the costs expected to operate such facility BUSINESS.    No
  feasibility  study shall be received for a simulcast facility OR ACCOUNT
  WAGERING LICENSEE that is applying to renew its license.   The  form  of
  the feasibility study shall be prescribed by the board and may include:

    (i) the number of simulcast races to be displayed;
    (ii) the types of wagering to be offered;
    (iii)  WHEN APPROPRIATE, 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 OR ELECTRONIC
  ACCOUNT WAGERING LICENSEE'S BUSINESS and the identification of costs  to
  be amortized and the method of amortization of such costs;

 S. 6571                             5

    (vii)  the  amount  and  source  of  revenues needed for financing the
  simulcast facility OR ELECTRONIC ACCOUNT WAGERING LICENSEE'S BUSINESS;
    (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 equip-
  ment to be utilized;
    d. The description of the management groups responsible for the opera-
  tion of the simulcast facility OR ELECTRONIC ACCOUNT WAGERING FACILITY;
    e. The system of accounts to maintain a separate  record  of  revenues
  collected  by the simulcast OR ELECTRONIC ACCOUNT WAGERING facility, the
  distribution of such revenues and the accounting of  costs  relative  to
  the simulcast operation;
    f.  [The]  WHEN APPLICABLE, 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  board  shall  issue  an  order
  approving the plan, approving it with modifications or denying approval,
  in  which latter case the board shall state its reasons therefor. Within
  such period the board may  request  additional  information  or  suggest
  amendments.  If  the  board 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 board 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 or corporation, FRANCHISED CORPORATION, or
  regional off-track betting corporation shall be  allowed  to  operate  a
  simulcast  OR  ELECTRONIC  ACCOUNT WAGERING 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 board. A plan of operation may be amended from time
  to time at the request of either the operator or the board. The operator
  shall have the right to be heard concerning any amendment  to  the  plan
  and the board 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  board,
  objection by the operator.
    5.  For  the  purpose  of  maintaining  proper control over simulcasts
  conducted pursuant to this article,  the  [state  racing  and  wagering]
  board shall license any person, association or corporation participating
  in  simulcasting,  as the board may by rule prescribe, including, if the
  board 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.

 S. 6571                             6

    6. NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO PROHIBIT  ANY  RACING
  ASSOCIATION  OR  CORPORATION,  OR FRANCHISED CORPORATION FROM TELEVISING
  HORSE RACES INTO INDIVIDUAL OR GROUP RESIDENCES, HOMES OR OTHER AREAS IN
  THE STATE, OR TO PROHIBIT ANY OFF-TRACK BETTING CORPORATION  OR  ACCOUNT
  WAGERING  LICENSEE  FROM TELEVISING INTO INDIVIDUAL OR GROUP RESIDENCES,
  HOMES OR OTHER AREAS IN  THE  STATE  SUCH  HORSE  RACES  FOR  WHICH  THE
  OFF-TRACK  BETTING CORPORATION OR ACCOUNT WAGERING LICENSEE HAS RECEIVED
  WRITTEN CONSENT FROM THE HOST TRACK.
    S 4. Section 1012 of the racing,  pari-mutuel  wagering  and  breeding
  law,  as  amended  by chapter 18 of the laws of 2008, subdivision 4-b as
  added by chapter 402 of the laws of 2011, subdivision 5  as  amended  by
  section  10  of  part S of chapter 61 of the laws of 2011, is amended to
  read as follows:

    S 1012. [Telephone accounts  and  telephone]  ACCOUNT  wagering.  [Any
  regional  off-track betting corporation, and any franchised corporation,
  harness, thoroughbred, quarter horse racing association  or  corporation
  licensed  to  conduct  pari-mutuel racing may maintain telephone betting
  accounts for wagers placed on races and special events offered  by  such
  corporation  or  association.]  FRANCHISED  CORPORATIONS, RACING ASSOCI-
  ATIONS OR CORPORATIONS, OFF-TRACK BETTING CORPORATIONS AND  MULTI-JURIS-
  DICTIONAL  ACCOUNT  WAGERING  PROVIDERS  MAY  APPLY  TO  THE BOARD TO BE
  LICENSED TO OFFER ACCOUNT WAGERING.
    1. A. FRANCHISED CORPORATIONS, RACING  ASSOCIATIONS  OR  CORPORATIONS,
  OFF-TRACK BETTING CORPORATIONS AND MULTI-JURISDICTIONAL ACCOUNT WAGERING
  PROVIDERS  MAY  FORM  PARTNERSHIPS,  JOINT VENTURES, OR ANY OTHER AFFIL-
  IATION OR CONTRACTUAL ARRANGEMENT IN ORDER TO FURTHER  THE  PURPOSES  OF
  THIS SECTION.
    B.  THE  DISTRIBUTION  OF  REVENUES  TO  PURSES MADE BY ANY FRANCHISED
  CORPORATION, OR HARNESS, THOROUGHBRED, QUARTER HORSE RACING  ASSOCIATION
  OR CORPORATION FROM ACCOUNT WAGERS PLACED ON RACES RUN AT A GUEST FACIL-
  ITY  SHALL  BE  DETERMINED  PURSUANT TO A WRITTEN AGREEMENT BETWEEN SUCH
  ASSOCIATION OR CORPORATION AND ITS REPRESENTATIVE  HORSEMEN'S  ORGANIZA-
  TION AS APPROVED BY THE BOARD.
    2.  THE  BOARD  SHALL  PROMULGATE RULES AND REGULATIONS TO LICENSE AND
  REGULATE ALL ASPECTS OF ACCOUNT WAGERING.
    3. THE BOARD SHALL SPECIFY  A  NON-REFUNDABLE  APPLICATION  FEE  WHICH
  SHALL  BE  PAID  BY  EACH  APPLICANT  FOR AN ACCOUNT WAGERING LICENSE OR
  RENEWAL THEREOF.
    4. ACCOUNT WAGERING LICENSEES SHALL  UTILIZE  PERSONAL  IDENTIFICATION
  NUMBERS  AND  SUCH OTHER TECHNOLOGIES AS THE BOARD MAY SPECIFY TO ASSURE
  THAT ONLY THE ACCOUNT HOLDER HAS ACCESS TO THE WAGERING ACCOUNT.
    5. ACCOUNT WAGERING LICENSEES SHALL PROVIDE FOR (I)  WITHDRAWALS  FROM
  THE  WAGERING  ACCOUNT  ONLY  BY  MEANS  OF  A CHECK MADE PAYABLE TO THE
  ACCOUNT HOLDER AND SENT TO THE ADDRESS OF THE ACCOUNT HOLDER OR BY MEANS
  OF AN ELECTRONIC TRANSFER TO AN ACCOUNT HELD  BY  THE  VERIFIED  ACCOUNT
  HOLDER  OR  (II)  THAT  THE  ACCOUNT  HOLDER MAY WITHDRAW FUNDS FROM THE
  WAGERING ACCOUNT AT A FACILITY APPROVED BY THE BOARD BY PRESENTING VERI-
  FIABLE PERSONAL AND ACCOUNT IDENTIFICATION INFORMATION.
    6. ACCOUNT WAGERING LICENSEES MAY ENGAGE IN INTERSTATE WAGERING TRANS-
  ACTIONS ONLY WHERE THERE IS COMPLIANCE WITH CHAPTER FIFTY-SEVEN OF TITLE
  FIFTEEN OF THE UNITED STATES CODE, COMMONLY REFERRED TO AS  THE  "INTER-
  STATE HORSERACING ACT".
    7.  THE  ACCOUNT  HOLDER'S  DEPOSITS  TO THE WAGERING ACCOUNT SHALL BE
  SUBMITTED BY THE ACCOUNT HOLDER TO THE  ACCOUNT  WAGERING  LICENSEE  AND
  SHALL BE IN THE FORM OF ONE OF THE FOLLOWING:

    A. CASH GIVEN TO THE ACCOUNT WAGERING LICENSEE;

 S. 6571                             7

    B.  CHECK,  MONEY  ORDER,  NEGOTIABLE  ORDER OF WITHDRAWAL, OR WIRE OR
  ELECTRONIC TRANSFER, PAYABLE AND REMITTED TO THE ACCOUNT WAGERING LICEN-
  SEE; OR
    C.  CHARGES  MADE  TO  AN ACCOUNT HOLDER'S DEBIT CARD UPON THE ACCOUNT
  HOLDER'S DIRECT AND PERSONAL INSTRUCTION, WHICH INSTRUCTION MAY BE GIVEN
  BY TELEPHONE COMMUNICATION OR OTHER  ELECTRONIC  MEANS  TO  THE  ACCOUNT
  WAGERING  LICENSEE  OR ITS AGENT BY THE ACCOUNT HOLDER IF THE USE OF THE
  CARD HAS BEEN APPROVED BY THE ACCOUNT WAGERING LICENSEE.
    8. A. EACH WAGER SHALL BE IN THE NAME OF A NATURAL  PERSON  AND  SHALL
  NOT  BE  IN  THE NAME OF ANY BENEFICIARY, CUSTODIAN, JOINT TRUST, CORPO-
  RATION, PARTNERSHIP OR OTHER ORGANIZATION OR ENTITY.
    B. A WAGERING ACCOUNT MAY BE ESTABLISHED BY  A  PERSON  COMPLETING  AN
  APPLICATION FORM APPROVED BY THE BOARD AND SUBMITTING IT TOGETHER WITH A
  CERTIFICATION,  OR  OTHER  PROOF,  OF AGE AND RESIDENCY. SUCH FORM SHALL
  INCLUDE THE ADDRESS  OF  THE  PRINCIPAL  RESIDENCE  OF  THE  PROSPECTIVE
  ACCOUNT  HOLDER AND A STATEMENT THAT A FALSE STATEMENT MADE IN REGARD TO
  AN APPLICATION MAY SUBJECT THE APPLICANT TO PROSECUTION.
    C. THE PROSPECTIVE ACCOUNT HOLDER SHALL SUBMIT THE COMPLETED  APPLICA-
  TION TO THE ACCOUNT WAGERING LICENSEE. THE ACCOUNT WAGERING LICENSEE MAY
  ACCEPT OR REJECT AN APPLICATION AFTER RECEIPT AND REVIEW OF THE APPLICA-
  TION AND CERTIFICATION, OR OTHER PROOF, OF AGE AND RESIDENCY FOR COMPLI-
  ANCE WITH THIS SECTION.
    D.  NO  PERSON OTHER THAN THE PERSON IN WHOSE NAME AN ACCOUNT HAS BEEN
  ESTABLISHED MAY ISSUE WAGERING INSTRUCTIONS RELATING TO THAT ACCOUNT  OR
  OTHERWISE ENGAGE IN WAGERING TRANSACTIONS RELATING TO THAT ACCOUNT.
    9.  A WAGERING ACCOUNT SHALL NOT BE ASSIGNABLE OR OTHERWISE TRANSFERA-
  BLE.
    10. EXCEPT AS OTHERWISE PROVIDED IN THIS  ARTICLE  OR  IN  REGULATIONS
  WHICH  THE BOARD MAY ADOPT PURSUANT THERETO, ALL ACCOUNT WAGERS SHALL BE
  FINAL AND NO WAGER SHALL BE CANCELED BY THE ACCOUNT HOLDER AT  ANY  TIME
  AFTER THE WAGER HAS BEEN ACCEPTED BY THE ACCOUNT WAGERING LICENSEE.
    11.  DORMANT  ACCOUNTS SHALL BE TREATED AS ABANDONED PROPERTY PURSUANT
  TO SECTION THREE HUNDRED OF THE ABANDONED PROPERTY LAW.
    12. Any [regional off-track betting  corporation  and  any  franchised
  corporation,  harness, thoroughbred, quarter horse racing association or
  corporation licensed to conduct  pari-mutuel  racing]  ACCOUNT  WAGERING
  LICENSEE may require a minimum account balance in an amount to be deter-
  mined by such entity.
    [2.]  13.  a.  Any  regional off-track betting corporation may suspend
  collection of the surcharge imposed under section five  hundred  thirty-
  two  of  this  chapter  on winning wagers placed in [telephone] WAGERING
  accounts maintained by such regional corporation.
    b. In a city of one million or more  any  regional  off-track  betting
  corporation,  with  the  approval of the mayor of such city, may suspend
  collection of the surcharge imposed under section five  hundred  thirty-
  two  of  this  chapter  in winning wagers placed in [telephone] WAGERING
  accounts maintained by such regional corporation.
    [3.] 14. Any [telephone] WAGERING account maintained  by  [a  regional
  off-track   betting   corporation,   franchised   corporation,  harness,
  thoroughbred, quarter horse association or corporation, with  inactivity
  for  a  period  of  three  years]  AN ACCOUNT WAGERING LICENSEE THAT HAS
  BECOME A DORMANT ACCOUNT shall be forfeited and paid to the commissioner
  of taxation and finance. Such amounts when collected shall  be  paid  by
  the  commissioner  of  taxation and finance into the general fund of the
  state treasury.

 S. 6571                             8

    [4.] 15. The maintenance and operation of  such  [telephone]  WAGERING
  accounts  provided  for  in  this  section shall be subject to rules and
  regulations of the [state racing and wagering] board.  The  board  shall
  include  in  such  regulation  a  requirement  that [telephone] WAGERING
  account information pertaining to surcharge and nonsurcharge [telephone]
  WAGERING accounts shall be separately reported.
    [4-a.]  16.  For  the  purposes  of this section, "telephone [betting]
  WAGERING accounts" and "telephone wagering" shall mean and  include  all
  those  wagers which utilize any wired or wireless communications device,
  including but not limited to wireline telephones,  wireless  telephones,
  and  the  internet,  to  transmit  the  placement of wagers on races and
  special events offered by any regional  off-track  betting  corporation,
  and  any  harness,  thoroughbred,  quarter  horse  racing association or
  corporation licensed or franchised to conduct pari-mutuel racing in [New
  York] THIS state OR A MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER.
    [4-b.] 17. Every racing association,  off-track  betting  corporation,
  franchised  corporation,  harness,  thoroughbred,  quarter  horse racing
  association or corporation or other entity licensed  in  this  state  to
  conduct  pari-mutuel racing and wagering, or authorized to conduct races
  within the state, which [operates  an]  IS  LICENSED  TO  OFFER  account
  wagering  [platform for the acceptance of wagers], shall locate the call
  center where such wagers are received within the state of New York.
    [5. The provisions of this section shall expire and be of  no  further
  force and effect after June thirtieth, two thousand twelve.]
    18.    A  MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL ONLY BE
  LICENSED UNDER THE FOLLOWING CONDITIONS:

    A. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER IS  LICENSED  BY
  THE  STATE  IN  WHICH  IT  IS LOCATED AND, IF REQUIRED, BY EACH STATE IN
  WHICH IT OPERATES;
    B. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER POSSESSES APPRO-
  PRIATE TOTALIZATOR AND ACCOUNTING CONTROLS TO SAFEGUARD THE TRANSMISSION
  OF WAGERING DATA AND KEEP A SYSTEM OF ACCOUNTS TO  MAINTAIN  A  SEPARATE
  RECORD  OF REVENUES COLLECTED BY THE WAGERING PROVIDER, THE DISTRIBUTION
  OF SUCH REVENUES AND AN ACCOUNTING OF COSTS RELATIVE TO THE OPERATION OF
  THE WAGERING PROVIDER;
    C. THE  CHARACTER  AND  THE  BACKGROUND  OF  THE  MULTI-JURISDICTIONAL
  ACCOUNT  WAGERING  PROVIDER  IS SUCH THAT GRANTING THE APPLICATION FOR A
  LICENSE IS IN THE PUBLIC INTEREST AND THE BEST INTERESTS  OF  THE  HORSE
  RACING PUBLIC AND FOR THE CONDUCT OF HONEST HORSE RACING;
    D.  THE  MULTI-JURISDICTIONAL  ACCOUNT WAGERING PROVIDER SHALL UTILIZE
  THE SERVICES OF AN INDEPENDENT  THIRD  PARTY  TO  PERFORM  IDENTITY  AND
  VERIFICATION  SERVICES  WITH  RESPECT  TO  THE ESTABLISHMENT OF WAGERING
  ACCOUNTS FOR PERSONS LOCATED IN  NEW YORK;
    E. THE BOARD SHALL BE ALLOWED ACCESS TO THE PREMISES OF THE MULTI-JUR-
  ISDICTIONAL ACCOUNT WAGERING PROVIDER TO VISIT, INVESTIGATE  AND,  PLACE
  SUCH  EXPERT  ACCOUNTANTS  AND  OTHER PERSONS IT DEEMS NECESSARY FOR THE
  PURPOSE OF INSURING COMPLIANCE WITH THE RULES  AND  REGULATIONS  OF  THE
  BOARD;
    F.  WAGERS  PLACED  WITH  THE  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING
  PROVIDER SHALL RESULT IN THE COMBINATION OF ALL  WAGERS  PLACED  AT  THE
  HOST  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 HOST TRACK OR AT  A  MULTI-JURISDICTIONAL
  ACCOUNT WAGERING PROVIDER;

 S. 6571                             9

    G.  A  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING  PROVIDER AUTHORIZED TO
  ACCEPT ACCOUNT WAGERS FROM PERSONS RESIDENT IN NEW YORK, WITH RESPECT TO
  EACH SUCH WAGER ACCEPTED, SHALL PAY SUCH PARI-MUTUEL TAX, BREEDERS' FUND
  DISTRIBUTIONS, AND SUCH OTHER STATUTORY PAYMENTS AND DISTRIBUTIONS THER-
  EON  EQUIVALENT IN IDENTITY AND AMOUNT TO THE PARI-MUTUEL TAX, BREEDERS'
  FUND DISTRIBUTIONS, STATUTORY PAYMENTS AND DISTRIBUTIONS THAT  WOULD  BE
  REQUIRED IF SUCH WAGER HAD BEEN PLACED BY THE ACCOUNT HOLDER RESIDENT IN
  NEW YORK AS AN ACCOUNT WAGER WITH AN OFF-TRACK BETTING CORPORATION OPER-
  ATING  IN  THE  OFF-TRACK  BETTING  REGION IN WHICH THE ACCOUNT HOLDER'S
  COUNTY OF RESIDENCE IS LOCATED. THE BOARD  SHALL  PROMULGATE  RULES  AND
  REGULATIONS  WHICH  WILL DETERMINE THE EXACT AMOUNT AND THE DISTRIBUTION
  OF PAYMENTS OF PARI-MUTUEL TAXES, DISTRIBUTIONS TO BREEDERS' FUNDS,  AND
  PAYMENTS  AND DISTRIBUTIONS TO TRACKS AND PURSES BY MULTI-JURISDICTIONAL
  ACCOUNT WAGERING PROVIDERS; AND
    H. IN ADDITION, FOR EACH ACCOUNT WAGER ACCEPTED FROM PERSONS  RESIDENT
  IN  NEW  YORK,  THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL
  PAY TO THE COUNTY OF RESIDENCE OF THE ACCOUNT HOLDER A FEE  OF  ONE-HALF
  OF  ONE  PERCENT  OF  SUCH  ACCOUNT WAGER. IF THE COUNTY OF RESIDENCE IS
  WITHIN A CITY WITH A POPULATION IN EXCESS OF ONE MILLION, THE FEE  SHALL
  BE  PAID  TO  SUCH  CITY.  IN  COUNTIES THAT ARE MEMBERS OF AN OFF-TRACK
  BETTING CORPORATION, THE PAYMENT SHALL BE MADE TO THE OFF-TRACK  BETTING
  CORPORATION. THE MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER SHALL BE
  ENTITLED  TO  DEDUCT  FROM THE PARI-MUTUEL TAX PAYABLE BY IT UNDER PARA-
  GRAPH G OF THIS SUBDIVISION SUCH AMOUNTS THAT  THE  MULTI-JURISDICTIONAL
  ACCOUNT  WAGERING  PROVIDER  IS  OBLIGATED TO PAY PURSUANT TO THIS PARA-
  GRAPH.
    S 5. Section 503 of the racing, pari-mutuel wagering and breeding  law
  is amended by adding a new subdivision 12-a to read as follows:

    12-A.  TO  ENTER  INTO, AMEND, CANCEL AND TERMINATE AGREEMENTS FOR THE
  PERFORMANCE  AMONG  THEMSELVES,   LICENSED   RACING   ASSOCIATIONS   AND
  MULTI-JURISDICTIONAL  ACCOUNT  WAGERING PROVIDERS, AS DEFINED IN SECTION
  ONE THOUSAND ONE OF THIS CHAPTER, OF THEIR RESPECTIVE FUNCTIONS,  POWERS
  AND DUTIES ON A COOPERATIVE OR CONTRACT BASIS.
    S  6. This act shall take effect one year after it shall have become a
  law; provided, that, effective immediately, the state racing and  wager-
  ing  board  is  authorized  and directed to add, amend and/or repeal any
  rules and regulations necessary to implement the provisions of this  act
  on its effective date.