Authorizes gambling on professional sporting events and athletic events sponsored by universities or colleges at betting facilities located at thoroughbred and harness racetracks operating in this state, in simulcast theaters operated by off-track betting corporations and in any constitutionally authorized casino facility; provides that the proceeds of such gambling be applied exclusively to or in aid or support of education.

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S7401-2011 Actions

• Jun 7, 2012: TO ATTORNEY-GENERAL FOR OPINION
• Jun 5, 2012: PRINT NUMBER 7401A
• Jun 5, 2012: AMEND (T) AND RECOMMIT TO JUDICIARY
• May 8, 2012: REFERRED TO JUDICIARY

S7401-2011 Memo

BILL NUMBER:S7401

TITLE OF BILL:

CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 9 of article 1 of the constitution, in
relation to authorizing gambling on professional sporting events

SUMMARY OF PROVISIONS:

Article 1, Section 9 of the State Constitution would be amended to
allow for an additional exception to the prohibition on an gambling
authorizing wagering on professional sporting events at betting
facilities located at horse racing tracks, simulcast theaters
operated by off-track betting corporations and in any
constitutionally authorized casino facility, as may be prescribed by
the legislature, the net proceeds of which shall be applied
exclusively to or in aid or support of education.

EXISTING LAW:

Article 1, Section 9 of the State Constitution generally proscribes
all gambling except for four exceptions. These four exceptions are:
(1) pari-mutuel wagering on horse racing; (2) State lotteries; (3)
bingo conducted by certain charitable, non-profit and religious
organizations; and (4) games of chance conducted by these same
charitable, non-profit, and religious organizations.

JUSTIFICATION:

Legalizing professional sports betting in New York would be an
opportunity to diminish a serious organized crime enterprise and
provide critical funds for education.

According to the New York State District Attorney's Offices in both
Kings and Queens Counties, illegal sports betting generates more than
$100 billion a year nationwide, and between $15 and $30 billion a
year in New York City alone. While our law enforcement agencies do
their best to stop this criminal industry, it is an extremely
lucrative criminal enterprise for organized crime and one that has
grown steadily over the past 3 decades. State regulation of
professional sports betting would drastically reduce profits for
organized crime as was the intent of the New York State Legislature
in 1982 when it sought to achieve similar goals in creating
Off-Track Betting.
In addition, strong gaming control regulations would help to abate any
concerns regarding game fixing and other potential abuses.

Furthermore, if the state were to legalize and regulate this industry
it would provide a tremendous source of revenue that could be used to
provide much needed funding for various services, such as education.

One estimate from The Partnership for New York City, suggests the
state could receive as much as $1.9 billion a year in revenue if
professional sports gambling were
permitted in the current locations where gambling in authorized in the
state. This amount would then increase with the recently proposed
casino facilities.

Finally, the thrust of this legislation is regulation, not promotion.

While there are legitimate concerns related to the social challenges
that arise from problem gambling,. this activity already exists on a
nationwide level and certainly within this state. The illegal
organizations that are unlawfully benefitting from this industry are
certainly not concerned with addressing these challenges and instead
benefit from them. If New York were to allow professional sports
betting the money received by the state could be used to support
education related programs that are designed to address these social
challenges as well as providing much needed revenue to support
education in general.

LEGISLATIVE HISTORY:

New Bill.

FISCAL IMPLICATIONS:

 Significant revenue potential for state.

EFFECTIVE DATE:

If agreed by the Senate and the Assembly, the amendment will be
referred to the first regular legislative session convening after the
next succeeding general election of members of the assembly, and, in
conformity with section 1 of article 19 of the constitution, be
published for 3 months previous to the time of such election.

S7401-2011 Text

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

                                    7401

                              I N  SENATE

                                 May 8, 2012
                                 ___________

  Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
    printed to be committed to the Committee on Judiciary

              CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY

  proposing an amendment to section 9 of article 1 of the constitution, in
    relation to authorizing gambling on professional sporting events

    Section 1. Resolved (if the Assembly concur), That  subdivision  1  of
  section  9  of  article  1  of  the  constitution  be amended to read as
  follows:

    1. No law shall be passed abridging the rights of the people peaceably
  to assemble and to petition the government, or any  department  thereof;
  nor  shall  any  divorce  be  granted  otherwise  than  by  due judicial
  proceedings; except as hereinafter provided, no lottery or the  sale  of
  lottery  tickets, pool-selling, book-making, or any other kind of gambl-
  ing, except lotteries operated by the state  and  the  sale  of  lottery
  tickets  in  connection therewith as may be authorized and prescribed by
  the legislature, the net proceeds of which shall be applied  exclusively
  to  or  in  aid or support of education in this state as the legislature
  may prescribe, and except pari-mutuel betting on horse races as  may  be
  prescribed  by  the  legislature and from which the state shall derive a
  reasonable revenue for the support of government, AND EXCEPT WAGERING ON
  PROFESSIONAL SPORTING EVENTS AT BETTING FACILITIES LOCATED AT  THOROUGH-
  BRED  AND HARNESS RACETRACKS OPERATING IN THIS STATE, IN SIMULCAST THEA-
  TERS OPERATED BY OFF-TRACK BETTING CORPORATIONS  AND  IN  ANY  CONSTITU-
  TIONALLY  AUTHORIZED  CASINO  FACILITY,  AS  MAY  BE  PRESCRIBED  BY THE
  LEGISLATURE, THE NET PROCEEDS OF WHICH SHALL BE APPLIED  EXCLUSIVELY  TO
  OR  IN  AID OR SUPPORT OF EDUCATION IN THIS STATE AS THE LEGISLATURE MAY
  PRESCRIBE, shall hereafter be authorized or allowed within  this  state;
  and  the  legislature  shall  pass  appropriate laws to prevent offenses
  against any of the provisions of this section.
    S 2. Resolved (if the Assembly concur), That the  foregoing  amendment
  be referred the to first regular legislative session convening after the
  next  succeeding  general  election  of members of the assembly, and, in
  conformity with  section  1  of  article  19  of  the  constitution,  be
  published for 3 months previous to the time of such election.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD89159-01-2