Provides for account wagering on simulcast 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 3 or more years shall be deemed to be abandoned property.
TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and breeding law, in relation to account wagering on simulcast horse races
PURPOSE: To update the State's current account wagering laws to allow for the use of new communications technology. The bill permits patron access to legal deposit wagering accounts via personal computers and other electronic communications systems, in addition to the telephone.
SUMMARY OF PROVISIONS: Section 1: Amends Racing & wagering Law section 1001 to add new definitions for "account wagering", "account wagering license", "dormant account", and "multi-jurisdictional account wagering provider".
Section 2: Amends Racing & Wagering Law section 1002 to grant the Racing & Wagering Board general jurisdictional powers over the conduct the new expanded account wagering activities that could be conducted under this legislation.
Section 3: Amends Racing & wagering Law section 1003(1) to delete standards for the approval or denial of an application to conduct simulcasting in individual or group residences or other residential areas. Further, it explicitly allows any racing association or Off-track Betting corporation (OTB) to televise horse races into individual or group residences, homes or other areas in this State.
Section 4: Amends Racing & wagering Law section 1012 to revise the current law that governs telephone betting on account. This provision expands telephone betting to include the Internet, personal computers, cell phones and other forms of electronic communication. It also facilitates the ability of regional OTBs and racing associations to form partnerships to jointly offer account wagering programs.
This provision also establishes the procedures for establishing new account wagering programs by multi-jurisdictional account wagering providers. These businesses could be partnerships between in-state race producers and OTBs and out-of-state race producers. These businesses would be operated outside of New York, but licensed by another state. Such providers could accept New York race track events and encourage both in-state and out-of-state bettors to use such businesses. A portion of bets placed on such multi-state providers would be transferred to New York horse owners in purses and for New York breeding funds. This measure could expand the utilization of New York's racing signal by out-of-state bettors and benefit the domestic industry by retaining a portion of the bets for New York's breeding funds, race tracks and horse owners.
Section 5: Amends Racing & Wagering Law section 503 to grant to regional OTBs the ability to enter into agreements to cooperatively
sell and market New York racing products with domestic racing associations and enter into agreements with multi-jurisdictional account wagering providers.
EXISTING LAW: None.
JUSTIFICATION: This bill modernizes the telephone account wagering law to include the Internet, other personal computer systems, and cell phones. The bettor would still need to have an account to curtail underage gambling. Further, betting limits could be imposed based upon patron request.
As reported in the Senate Racing, Gaming & wagering committee Annual Reports issued in 2003, 2004, and 2005, New York's race tracks and OTBs need to more cooperatively offer and market New York racing products. This bill establishes a mechanism so that OTBs and race tracks can, in a cooperative manner, consolidate their simulcasting programs. This has two economic benefits. First, consolidating simulcasting programs can reduce overhead costs and reduce competition between regional OTBs for the same betting revenue. Second, more comprehensive horse racing simulcast programs would be commercially more attractive to broadcast both within New York and exported to other jurisdictions (and hence be more profitable).
New York's horse racing industry has not maximized its profits, and in NYRA's case has in fact lost substantial amounts of money over the past ten years. Legislation such as this bill would facilitate the ability to produce and market New York racing products. This, in turn, could increase horse industry profits so that OTBs would no longer be required to subsidize this business as it has done in the past. Consequently, OTBs could transfer more revenue to support local governments.
LEGISLATIVE HISTORY: S.7161 of 2005/2006, Same as A.2749 of 2009 S.2313 02/18/09 01/06/10 Referred to Racing, Gaming and Wagering
FISCAL IMPLICATIONS: None.
LOCAL FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 3980 2011-2012 Regular Sessions IN SENATE March 11, 2011 ___________Introduced by Sen. ADAMS -- 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 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 beEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06966-02-1 S. 3980 2
deemed a regional track for all regions located in district one, as defined in this section; 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 MEDIA 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, 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 THREE YEARS. T. "MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDER" MEANS A BUSINESS ENTITY LOCATED IN A STATE OTHER THAN THE STATE OF NEW YORK, WHICH IS LICENSED BY SUCH OTHER STATE TO OFFER PARI-MUTUEL ACCOUNT WAGERING ONS. 3980 3
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 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 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 evaluating the results of such simulcasts OR ACCOUNT WAGERING on the compatibility with the well-being of the horse racing, breeding and pari-mutuel wagering industries in this state and make any recommen- dations 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 C of chapter 134 of the laws of 2010, 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 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 thoroughbred races from a track located in Suffolk county. The fee for such licenses shall be five hundred dollars per simulcast facility per year payable 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 wagering. The board may approve simulcasting into residences, homes or other areas to be conducted jointly by one or more regional off-track betting corpo- rations 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 simulcast arrangements for such simulcast facility shall be no less2. 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 and the costs expected to operate such facility. No feasibility study shall be received for a simulcast facility 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) 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 and the identifica- tion of costs to be amortized and the method of amortization of such costs; (vii) the amount and source of revenues needed for financing the simulcast facility;S. 3980 4
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 eleven; 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 eleven; 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.]S. 3980 5
(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; e. The system of accounts to maintain a separate record of revenues collected by the simulcast facility, the distribution of such revenues and the accounting of costs relative to the simulcast operation; f. The location of the facility and a written confirmation from appro- priate 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 or regional off-track betting corporation shall be allowed to operate a simulcast 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. 6. NOTHING IN THIS CHAPTER SHALL BE CONSTRUED TO PROHIBIT ANY RACING ASSOCIATION 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 LICENSEES. 3980 6
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 and subdivision 5 as amended by section 11 of part C of chapter 134 of the laws of 2010, 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, OFF-TRACK BETTING CORPORATIONS AND MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS MAY APPLY TO THE BOARD TO BE LICENSED TO OFFER ACCOUNT WAGERING. 1. A. FRANCHISED CORPORATIONS, RACING ASSOCIATIONS, OFF-TRACK BETTING CORPORATIONS AND MULTI-JURISDICTIONAL ACCOUNT WAGERING PROVIDERS MAY FORM PARTNERSHIPS, JOINT VENTURES, OR ANY OTHER AFFILIATION OR CONTRAC- TUAL 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 QUEST 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 PHASES 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 (PINS) AND SUCH OTHER TECHNOLOGIES AS THE BOARD MAY SPECIFY TO ASSURE THAT ONLY THE ACCOUNT HOLDER HAS ACCESS TO THE ADVANCE DEPOSIT 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; 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 OR CREDIT CARD UPON THE ACCOUNT HOLDER'S DIRECT AND PERSONAL INSTRUCTION, WHICH INSTRUCTION MAYS. 3980 7
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 WAGERING 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. [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.S. 3980 8
[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 state. [5. The provisions of this section shall expire and be of no further force and effect after June thirtieth, two thousand eleven.]17. 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 WHICH WILL SAFEGUARD THE TRANSMISSION OF WAGERING DATA AND WILL KEEP A SYSTEM OF ACCOUNTS WHICH WILL 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 INTEREST 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; 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; ANDS. 3980 9
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 immediately.