Bill S331-2013

Authorizes gambling on professional sporting events and athletic events sponsored by universities or colleges

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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  • Feb 21, 2014: OPINION REFERRED TO JUDICIARY
  • Jan 13, 2014: TO ATTORNEY-GENERAL FOR OPINION
  • Jan 8, 2014: REFERRED TO JUDICIARY
  • Feb 6, 2013: OPINION REFERRED TO JUDICIARY
  • Jan 11, 2013: TO ATTORNEY-GENERAL FOR OPINION
  • Jan 9, 2013: REFERRED TO JUDICIARY

Memo

BILL NUMBER:S331

TITLE OF BILL: REVISED 12/10/12

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 and athletic events sponsored by universities or colleges

SUMMARY OF PROVISIONS:

Article 1, Section 9 of the State Constitution would be amended to allow for an additional exception to the prohibition on all gambling authorizing wagering on professional and collegiate 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 an 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 $380 billion a year nationwide, and approximately $38 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 city of New York 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 and collegiate 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:

2011-12: S.7401A

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.


Text

STATE OF NEW YORK ________________________________________________________________________ 331 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
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 and athletic events sponsored by universities or colleges 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 AND ATHLETIC EVENTS SPONSORED BY UNIVERSI- TIES OR COLLEGES AT BETTING FACILITIES LOCATED AT THOROUGHBRED AND HARNESS RACETRACKS OPERATING IN THIS STATE, IN SIMULCAST THEATERS OPER- ATED 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 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. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD89040-01-3 S. 331 2 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.

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