N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1009: Simulcast theaters

§ 1009. Simulcast theaters. 1. The commission may authorize and

approve eight licenses, except that any approval of a license for a

franchised corporation shall not decrease the number of licenses

available, as of July first, nineteen hundred ninety to any other

eligible operator under subdivision two of this section, for the

operation of simulcast theaters as defined in section one thousand one

of this article. One such license shall only be approved for the

regional off-track betting corporation defined by paragraph b of

subdivision one of section five hundred nineteen of this chapter.

2. Such a simulcast theater, pursuant to a license issued in

accordance with the provisions of this section and section one thousand

three of this article may be owned or leased, and operated, (a) by one

or more racing associations or corporations; (b) by the regional

off-track betting corporation of the region where such simulcast theater

facility is to be located; (c) jointly by one or more racing

associations or corporations and the regional off-track betting

corporation of the region where such simulcast theater facility is to be

located; or (d) by a franchised corporation; provided, however, that for

the purposes of paragraph (a) of subdivision two-a of this section, an

entity authorized by paragraph (b) or (c) of this subdivision to own,

lease or operate a simulcast theater may, pursuant to a competitive

bidding procedure carried out in accordance with rules and regulations

issued by the commission, select another person, firm or corporation to

operate or jointly own or lease such facility and enter into a written

agreement with such person, firm or corporation provided that such party

shall be subject to the licensing requirements of the commission.

2-a. Notwithstanding the provisions of subdivision one of this

section, the commission may authorize one or more licenses, as provided

in paragraphs (b) and (c) of subdivision two of this section, to enter

into a written agreement with another person, firm or corporation to

jointly operate or lease such facility for the operation of simulcast at

entertainment theaters as special demonstration projects for purposes of

stimulating economic development, employment opportunities and state and

local revenues. Such demonstration projects shall be licensed in

accordance with all applicable laws, rules and regulations of this

article.

(a) In Sullivan, Greene and Ulster counties the commission shall

determine the number of such projects to be located in privately owned

hotels in such counties for the exclusive use of the hotel guests.

(b) The commission may additionally authorize one special

demonstration project within the city of New York.

(c) The commission may authorize a special demonstration project to be

located in any facility licensed pursuant to article thirteen of this

chapter in Schenectady county. Notwithstanding the provisions of

paragraph a of subdivision five of this section, an admission fee shall

not be required for a demonstration project authorized in this

paragraph. On any day when a regional harness track conducts a live race

meeting, a demonstration facility within that region shall predominantly

display the live video of such regional harness track.

The regional off-track betting corporations operating such

demonstration facilities within New York city may elect to apply the

provisions of section five hundred thirty-two of this chapter in lieu of

any admission charges.

3. Any application for such license shall be subject to those

conditions set forth in section one thousand three and shall also

include:

a. A written agreement between the sending tracks and the applicant;

b. Letters of consent to the application from any regional track that

is not a party to the operation of the proposed theater unless such

track is located more than forty miles from the proposed simulcast

theater; and a copy of any agreement between the applicant and such

corporation pursuant to which such consent has been given, subject to

the provision of subdivision two of section one thousand seven of this

article. Notwithstanding the foregoing, the Nassau region may apply to

locate one simulcast theater within Nassau County without a letter of

consent from the operator of the regional track provided the proposed

simulcast theater is not within fifteen miles of the closest border of

any racing facility operated by a franchised corporation.

c. Except for an application from a franchised corporation to operate

within the Suffolk region, Nassau region, New York City region, or

Westchester county in the absence of enabling legislation, a letter of

consent to the application from the regional off-track betting

corporation of the region where such simulcast theater facility is to be

located if such corporation is not a party to the operation of the

proposed theater.

d. If such theater is to be jointly operated by one or more racing

associations or corporations or by one or more racing associations or

corporations and the regional off-track betting corporation of the

region where such simulcast theater is to be located or if the costs,

revenues and/or net profits from the operation of such facility are to

be allocated among more than one such party, a copy of a written

agreement among such corporations or associations as to the rights and

responsibilities of each such party and the provisions pursuant to which

costs, revenues and/or net profits are to be allocated.

e. A copy of a resolution adopted by the governing body of the city,

town or village in which the proposed simulcast theater is to be

located, approving the application and requesting that the application

for the proposed simulcasting theater be approved. In a city of one

million or more, approval of the mayor shall also be required. Approval

of the governing body of the county and the county executive within

which such municipality is located shall also be required. If the

proposed facility is to be located wholly within a village, approval by

the governing body of the town or towns within which such village is

located shall also be required.

f. An application from a franchised corporation shall not be

considered by a city of one million or more, earlier than eighteen

months after this provision shall have become law.

4. Notwithstanding any inconsistent provisions of this chapter, the

sums retained by any associations or corporations from the total

deposits in pools wagered on simulcast racing events at a simulcast

theater as provided in subdivision one of this section shall be equal to

the rates of retained percentage applicable to the sending track.

a. Of the sums retained by the operator as provided in this

subdivision, the pari-mutuel tax shall be levied at the rate set forth

in subdivision one of section one hundred thirty-six of this chapter.

b. Of the sums retained by the operator as provided in this

subdivision, an amount equal to one percent of daily pools derived from

bets on simulcasts of harness races shall be paid to the agriculture and

New York state horse breeding development fund, and an amount equal to

one-half of one percent of daily pools derived from bets on simulcasts

of running races shall be paid to the New York state thoroughbred

breeding and development fund.

c. The payment of the state tax imposed by this section shall be made

to the commissioner of taxation and finance at such regular intervals as

the commissioner of taxation and finance may require, and shall be

accompanied by a report, under oath, that sets forth such information as

the commissioner of taxation and finance may require. A penalty of five

percent and interest at the rate of one percent per month from the date

the report is required to be filed to the date of payment of the tax

shall be payable in case any tax imposed by this section is not paid

when due. If the commissioner of taxation and finance determines that

any moneys received under this paragraph were paid in error, the

commissioner may cause the same to be refunded without interest out of

any moneys collected thereunder, provided an application therefor is

filed with the commissioner within one year from the time the erroneous

payment was made. Such taxes, interest and penalties when collected,

after the deduction of refunds of taxes erroneously paid, shall be paid

by the commissioner of taxation and finance into the general fund of the

state treasury.

d. The operator shall pay to the commission as a regulatory fee, which

fee is hereby levied, six-tenths of one percent of the total daily

pools.

4-a. Notwithstanding any inconsistent provision of this chapter, of

the sums received by a sending track, a portion shall be distributed to

purses in accordance with a written agreement between the racing

association or corporation operating such track and the horsemen's

organization representing owners and trainers at such track, as

determined by the commission. In the absence of such an agreement, fifty

percent of the sums received by a sending track shall be distributed to

purses.

5. a. An admission fee to simulcast theaters shall be charged and the

amount of such admission fee shall be subject to the approval of the

commission.

c. Any county (except a county wholly within a city) or city, or both,

in which a simulcast theater is located, is hereby authorized and

empowered to adopt and amend local laws imposing a tax on such admission

fee at a rate not to exceed fifteen percent of the admission fee. The

provisions of article eight of this chapter relating to the

administration and collection of the taxes authorized to be imposed by

such article (including the provisions relating to judicial review)

shall apply to a tax imposed pursuant to the authority of this

paragraph, in the same manner and with the same force and effect as if

the language of such provisions had been incorporated in full into this

paragraph and had expressly referred to a tax authorized to be imposed

pursuant to this paragraph, except to the extent that any such provision

is either inconsistent with a provision of this paragraph or is not

relevant to this paragraph.

6. The size, location and operation of a simulcast theater shall be

subject to local zoning ordinances and the approval of the commission.

7. The sale of food and beverages shall be subject to the applicable

state and local alcoholic beverage control laws and sales taxes.

8. All wagers resulting from the simulcast of racing events pursuant

to this section shall be combined with wagers at the sending 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 sending track or a simulcast theater.

9. Each license to operate a simulcast theater is subject to

suspension as provided in section one thousand four of this article.

10. The operator may contract with the city, town or village in which

the simulcast theater is located to pay to such municipality a sum not

to exceed one percent of pools generated from all wagers at such theater

in lieu of any other local tax.

11. The provisions of section one thousand thirteen of this chapter

shall apply to any disputes with regard to the requirements of

subdivision three of this section provided, however, that binding

arbitration shall not be a remedy if the proposed simulcast theater is

less than forty miles from a regional track.