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.
Ayes (7): Bonacic, Griffo, Ranzenhofer, Adams, Addabbo, Huntley, Stewart-Cousins
Ayes W/R (3): Hannon, McDonald, Nozzolio
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
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 rebate benefits to those racing fans who attend race meets, preferred customers and to volume bettors. Under current law, there are no standards for establishing such rebate programs.
This bill establishes a statutory framework to create such rebate programs and guidelines for approval of such rebate programs by the Racing & wagering Board (Board). Adopting this bill should provide applicants with parameters in which to draft applications to the Board for approval to establish systemic long range rebate programs to encourage attendance at race tracks or other gaming facilities.
SUMMARY OF PROVISIONS:
Section 1: Adds Racing & Wagering Law section 113 to clearly establish in the law the ability of host racetracks and OTBs to establish rebate programs 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 Board must annually approve of the rebate programs. This bill gives reasonable latitude to the Board to define the term "rebate" 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 racing industry.
There are several conditions that the applicant must abide by when administering any rebate 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.
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 Board.
Many off-shore betting houses are offering rebate 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 year long betting rebate programs that can 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 Board 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.
The January next succeeding the date it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 6758 IN SENATE March 19, 2012 ___________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 113 to read as follows: S 113. 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 RACING AND WAGERING BOARD DEEMS APPROPRIATE TO REWARD HORSE RACING PATRONS FOR THEIR PARTIC- IPATION AT RACE MEETINGS. SUCH TERM MAY BE FURTHER DELINEATED IN RULES PROMULGATED BY THE STATE RACING AND WAGERING BOARD. 2. THE STATE RACING AND WAGERING BOARD, UPON APPLICATION OF 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, MAY ANNUALLY APPROVE THE PAYMENT OF REBATES BY SUCH ASSOCIATION, CORPO- RATION, FRANCHISED CORPORATION OR RACING FRANCHISEE, SUBJECT TO THE FOLLOWING REQUIREMENTS:EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14792-01-2 S. 6758 2
A. THE APPLICANT FULLY DISCLOSES THE EXTENT OF THE REBATE PROGRAM. FULL DISCLOSURE SHALL INCLUDE THE DISCLOSURE 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 first of January next succeed- ing the date on which it shall have become a law, provided that effec- tive immediately any rules, regulations and applications necessary to implement the provisions of this act on its effective date are author- ized to be completed on or before such date.