BILL NUMBER:S623

TITLE OF BILL:
An act
to amend the racing, pari-mutuel wagering and breeding law, in relation
to antitrust exemptions for horse racing agreements

PURPOSE:
To permit racetracks and other racing event producers or retailers to
band together to establish agreements governing the scheduling of
their races and to establish joint agreements involving the sale and
purchase of broadcasting and simulcasting rights.

SUMMARY OF PROVISIONS:
Section 1: Adds a new Racing & Wagering Law section 113 to grant
antitrust immunity to certain agreements among entities licensed by
the Racing & Wagering Board to conduct wagering. These entities would
be granted anti-trust immunity to develop agreements which coordinate
the dates and times of their races and are also given immunity to
enter into contracts involving the joint purchase or sale of their
broadcasts, simulcasts, and electronic transmissions. All such
agreements must be approved by the Racing & Wagering Board. The
standard of review is that such agreements must protect the continued
viability of the State's horse racing and agricultural industries.

EXISTING LAW:
              

Such agreements may, under current law, violate the State and Federal
anti-trust laws.

JUSTIFICATION:
Attendance at racetracks and real betting handle in New York has been
falling rapidly for the past 40 years. Racetracks need a better way
of competing with other gambling and entertainment attractions. This
bill allows such racing event producers and retailers to combine
forces to make joint arrangements on both the scheduling and the
times of their races, or to sell and/or purchase broadcast and
simulcast rights. Making such joint cooperative arrangements may lead
to better national market penetration of the State's racing products
and help to reduce overhead costs and competition among New York's
racing producers so that OTB's can effectively market each
racetrack's products.

All agreements would need to be approved by the Racing & Wagering
Board so that only those agreements that promote the State's
legitimate interests
in advancing our local horse racing and agricultural industries
would be approved. This bill ensures that future joint agreements do
not run afoul of the Federal and State anti-trust laws. It is
arguable that some joint arrangements between competitive racetracks
could pose antitrust questions. The need to preserve the State's
ailing racetracks should, however, outweigh any limited
anti-competitive effects of any joint marketing or horse race
production agreements: The U.S. Supreme Court, under Parker v.
Brown, 317 US 341 (1943) grants states the statutory authority to
confer immunity for the Sherman Anti-trust Act for certain government
sanctioned activities. The second section of this bill is modeled on


15 U.S.C. Section 1291 which grants anti-trust immunity to broadcasts
for certain professional leagues.

LEGISLATIVE HISTORY:
2010: S.6197 - Referred to Racing, Gaming & Wagering

FISCAL IMPLICATIONS:
None.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
Immediate.