Authorizes racetracks and off-track betting corporations to offer rebates on pari-mutuel wagers made by bettors to reward horse racing patrons for their participation at race meetings.
TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and breeding law, in relation to authorizing the payment of rebates on pari-mutuel wagers
PURPOSE: The purpose of this bill is to clearly authorize in law the ability of host racetracks, simulcast racetracks, and regional off-track betting corporations (OTBS) to offer long term rebate and fan appreciation benefits to those racing fans who attend race meets, preferred customers and to volume bettors. Under current law, while the State Gaming Commission can authorize event based or other very short term rebate or fan appreciation programs, there are no standards for establishing successful long term rebate programs that can effectively bring more race fans to the track. Bringing more fans to the race tracks can help to make the sport of racing a more exciting time for all participants.
This bill establishes a statutory framework to create such rebate programs and guidelines for approval of such rebate programs by the State Gaming Commission (Commission). Adopting this bill should provide applicants with parameters in which to draft applications to the Commission for approval to establish systemic long range rebate programs to encourage attendance at race tracks or other gaming facilities. These types of long term rebate or fan appreciation programs are authorized and conducted by many out-of-state racing forums, but axe not authorized in New York.
SUMMARY OF PROVISIONS:
Section 1: Adds Racing & Wagering Law section 109-a to clearly establish in the law the ability of host racetracks and OTBs to establish long term rebate or fan appreciation programs that can last for an entire racing season or calendar year for new or preferred customers who attend host race track meets or bet on such events. The definition of a rebate is a reduction in the takeout percentage, adding a bonus on winnings obtained, or awards of merchandise or services for certain previously designated customers.
The Commission must annually approve of the rebate programs. This bill gives reasonable latitude to the Commission to establish and approve of rebate programs so that rebate program applications and approval of such programs can quickly change to reflect the betting practices within the raping industry.
There are several conditions that the applicant must abide by when administering any rebate or fan appreciation programs to protect consumer interests. The conditions are that: a disclosure of benefits of past rebate programs is required, rebates are granted solely on the amount wagered or the frequency of betting, accurate record keeping is maintained on rebate program disbursements and the rebate programs are in the best interests of racing.
EXISTING LAW: There is currently no statutory framework to assist a racetrack or OTB to develop and implement long term rebate programs that can be approved by the Commission.
JUSTIFICATION: Many off-shore betting houses are offering rebate or fan appreciation programs to encourage patronage of their racing events. Off shore betting houses have the freedom to establish long term betting rebate programs to secure and retain a loyal customer base. New York Producers are not able to establish entire race season or annual betting rebate programs to help them secure and retain a loyal customer base. These out-of-state rebate programs may be one reason why increases in New York State betting handle has been depressed. This bill merely authorizes New York racetrack operators and OTBs to offer their patrons the same types of rebate programs that are being offered elsewhere. Further, while the Commission has authorized some rebate programs, they tend to be single event programs and not the long term programs that are needed to maintain a strong fan base.
LEGISLATIVE HISTORY: This bill is similar to S.577A of 2007. While this bill was vetoed by Governor Spitzer, this current bill was revised to address the concerns that were raised by that veto message. Further, this bill was amended to conform to the new statutory frame work established when forming the new State Gaming Commission. 2012 - S. 6758 - Reported to Senate Finance Committee
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: 180 days after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 2433 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________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 authorizing the payment of rebates on pari-mutuel wagers THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The racing, pari-mutuel wagering and breeding law is amended by adding a new section 109-a to read as follows: S 109-A. REBATES. 1. FOR THE PURPOSES OF THIS SECTION, "REBATE" SHALL MEAN A PORTION OF PARI-MUTUEL WAGERS, OTHERWISE PAYABLE TO AN ASSOCI- ATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE CONDUCT- ING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES RUN AT A RACETRACK OPERATED BY SUCH ASSOCIATION, CORPORATION OR FRANCHISED CORPORATION, WHICH IS PAID TO HOLDERS OF PARI-MUTUEL WAGERING TICKETS AND WHICH REDUCES THE AMOUNT OTHERWISE PAYABLE TO SUCH ASSOCIATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE. SUCH TERM MAY INCLUDE, BUT NOT BE LIMITED TO, REFUNDS TO HOLDERS OF PARI-MUTUEL WAGERING TICKETS OF ANY PORTION OR PERCENTAGE OF THE FULL FACE VALUE OF A PARI-MUTUEL WAGER, INCREASING THE PAYOFF OF, PAYING A BONUS ON A WINNING PARI-MUTUEL TICK- ET, AWARDS OF MERCHANDISE, SERVICES SUCH AS MEALS, PARKING, ADMISSION, SEATING AND PROGRAMS, FREE OR REDUCED COST PARI-MUTUEL WAGERS AND MONE- TARY AWARDS, OR ANY OTHER BENEFIT THAT THE STATE GAMING COMMISSION DEEMS APPROPRIATE TO REWARD HORSE RACING PATRONS FOR THEIR PARTICIPATION AT RACE MEETINGS. 2. THE STATE GAMING COMMISSION, UPON APPLICATION OF AN ASSOCIATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE CONDUCTING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES RUN AT A RACETRACK OPER- ATED BY SUCH ASSOCIATION, CORPORATION OR FRANCHISED CORPORATION, MAY ANNUALLY APPROVE THE PAYMENT OF REBATES BY SUCH ASSOCIATION, CORPO-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06752-01-3 S. 2433 2
RATION, FRANCHISED CORPORATION OR RACING FRANCHISEE, SUBJECT TO THE FOLLOWING REQUIREMENTS: A. THE APPLICANT DISCLOSES THE EXTENT OF THE REBATE PROGRAM. SUCH DISCLOSURE SHALL INCLUDE A LISTING OF THE MONETARY VALUE OF ALL REBATES PAID TO BETTORS DURING THE PREVIOUS CALENDAR YEAR, AND THE TERMS AND CONDITIONS GOVERNING THE AWARD OF REBATES TO BETTORS FOR THE CALENDAR YEAR TO WHICH THE APPLICATION APPLIES; B. THE APPLICANT PROVIDES ASSURANCES THAT THE VALUES OF THE REBATES ARE DETERMINED SOLELY BY (I) ATTENDANCE AT ONE OR MORE RACE MEETINGS, (II) THE AMOUNT WAGERED BY A BETTOR, OR (III) HOW FREQUENTLY A BETTOR WAGERS; C. THE ASSOCIATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE MAINTAINS RECORDS OF ALL WAGERS SUBJECT TO A REBATE, FOR A PERIOD OF NOT LESS THAN THREE YEARS; AND D. THE APPLICANT DEMONSTRATES THAT SUCH REBATES ARE IN THE BEST INTER- ESTS OF HORSE RACING. 3. REGIONAL OFF-TRACK BETTING CORPORATIONS MAY OFFER REBATES ON WAGERS MADE ON RACES RUN BY ANY ASSOCIATION, CORPORATION, FRANCHISED CORPO- RATION OR RACING FRANCHISEE WHICH OFFERS REBATES PURSUANT TO THIS SECTION. SUCH REBATES SHALL BE SUBJECT TO THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION. 4. UPON THE APPROVAL OF AN ASSOCIATION, CORPORATION, FRANCHISED CORPO- RATION OR RACING FRANCHISEE CONDUCTING PARI-MUTUEL BETTING AT A RACE MEETING ON RACES RUN AT A RACETRACK OPERATED BY SUCH ASSOCIATION, CORPO- RATION, FRANCHISED CORPORATION OR RACING FRANCHISEE, ANOTHER RACING ASSOCIATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE MAY PROVIDE BETTORS WITH REBATES ON WAGERS ON RACES RUN AT THE RACETRACK OPERATED BY SUCH APPROVING ASSOCIATION, CORPORATION AT A RACETRACK OPER- ATED BY SUCH ASSOCIATION, CORPORATION, FRANCHISED CORPORATION OR RACING FRANCHISEE. ALL SUCH REBATES SHALL BE SUBJECT TO THE PROVISIONS OF SUBDIVISIONS ONE AND TWO OF THIS SECTION. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law or on the same date and in the same manner as part A of chapter 60 of the laws of 2012 takes effect, whichever shall occur later; provided that effective immediately any rules, regulations and applications necessary to implement the provisions of this act on its effective date are authorized to be completed on or before such date.