N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1352: Commercial gaming revenue fund

§ 1352. Commercial gaming revenue fund. 1. (a) The commission shall

pay into an account, to be known as the commercial gaming revenue fund

as established pursuant to section ninety-seven-nnnn of the state

finance law, under the joint custody of the comptroller and the

commissioner of taxation and finance, all taxes and fees imposed by this

article paid by a gaming facility licensed under title two of this

article or title two-A of this article located within zone two; any

interest and penalties imposed by the commission relating to those

taxes; the appropriate percentage of the value of expired gaming related

obligations; all penalties levied and collected by the commission; and

the appropriate funds, cash or prizes forfeited from gambling activity.

(b) For any gaming facility that does not qualify under subdivision

two of section thirteen hundred twenty-one-a of this article, is

licensed under title two-A of this article, and is located within New

York City, revenues shall be distributed in the following manner:

(i) fifty percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those taxes

shall be deposited to a sole custody fund established under the gaming

commission, and paid monthly, without appropriation, directly to the

metropolitan transportation authority commercial gaming revenue fund

established under section one thousand two hundred seventy-j of the

public authorities law; and

(ii) fifty percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those taxes

shall be deposited into the commercial gaming revenue fund established

under section ninety-seven-nnnn of the state finance law by the

commission and shall be appropriated or transferred only for elementary

and secondary education or real property tax relief.

(c) For any gaming facility that does not qualify under subdivision

two of section thirteen hundred twenty-one-a of this article, is

licensed under title two-A of this article, and located within zone one

but not located within New York City, revenues shall be distributed in

the following manner:

(i) forty percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those taxes

shall be deposited to a sole custody fund established under the gaming

commission, and paid monthly, without appropriation, directly to the

metropolitan transportation authority commercial gaming revenue fund

established under section one thousand two hundred seventy-j of the

public authorities law;

(ii) forty percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those taxes

shall be deposited into the commercial gaming revenue fund established

under section ninety-seven-nnnn of the state finance law by the

commission and shall be appropriated or transferred only for elementary

and secondary education or real property tax relief from the commercial

gaming revenue fund;

(iii) five percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those

taxes, shall be deposited into the commercial gaming revenue fund

established under section ninety-seven-nnnn of the state finance law by

the commission and shall be allocated to the host county for the purpose

of real property tax relief or for education assistance;

(iv) ten percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those taxes

shall be deposited into the commercial gaming revenue fund established

under section ninety-seven-nnnn of the state finance law by the

commission and shall be allocated to the host municipality for the

purpose of real property tax relief or education assistance; and

(v) five percent of the taxes imposed by this article, and any

interest and penalties imposed by the commission relating to those

taxes, shall be deposited into the commercial gaming revenue fund

established under section ninety-seven-nnnn of the state finance law by

the commission and shall be allocated among counties within the region,

as defined by section one thousand three hundred ten of this article,

for the purpose of real property tax relief or education assistance.

Such distribution from the commercial gaming revenue fund established

under section ninety-seven-nnnn of the state finance law shall be made

among the counties on a per capita basis, subtracting the population of

host municipality and county.

(d) For any gaming facility that qualifies under subdivision two of

section thirteen hundred twenty-one-a of this article, is licensed under

title two-A of this article, and is located within zone one but not

located within New York City, revenues shall be distributed in the

following manner:

(i) Eighty percent of all deposits in a state fiscal year resulting

from taxes imposed by this article, and any interest and penalties

imposed by the commission relating to those taxes shall be directed to

the commercial gaming revenue fund until the total of such deposits for

the state fiscal year is equal to the education aid hold harmless

amount. The education aid hold harmless amount shall be equal to the

greater of (A) the revenue received from the facility for education aid

deposits into the state lottery fund as a video lottery gaming licensee

pursuant to section sixteen hundred seventeen-a of the tax law for the

twelve months immediately preceding the date on which such facility

began operations as a commercial casino pursuant to title two-A of this

article, or (B) the revenue received from the facility for education aid

deposits into the state lottery fund as a video lottery gaming licensee

pursuant to section sixteen hundred seventeen-a of the tax law for state

fiscal year two thousand twenty-two. For the first fiscal year of gaming

facility operations, the hold harmless amount shall reflect a pro-rata

amount based on the opening date of the gaming facility. Notwithstanding

section ninety-seven-nnnn of the state finance law, such deposits into

the commercial gaming revenue fund shall be available exclusively for

elementary and secondary education. Should these deposits resulting from

taxes imposed pursuant to subdivision one-a of section thirteen hundred

fifty-one of this article on the operations of a qualifying gaming

facility at the conclusion of a given state fiscal year be less than the

total required under this paragraph, such gaming facility shall remit

the necessary payment accounting for the difference to the commission

for deposit into the commercial gaming revenue fund no later than the

next occurring May first.

(ii) Twenty percent of all deposits in a state fiscal year resulting

from taxes imposed by this article, and any interest and penalties

imposed by the commission relating to those taxes, shall be distributed

in the same manner as subparagraphs (iii), (iv), and (v) of paragraph

(c) of this subdivision.

(iii) Once the deposits from a qualifying gaming facility as

prescribed in subparagraph (i) of this paragraph exceed the education

aid hold harmless amount as determined in subparagraph (i) of this

paragraph in a given state fiscal year, eighty percent of all subsequent

deposits in such state fiscal year from taxes imposed by this article,

and any interest and penalties imposed by the commission relating to

those taxes shall be deposited to a sole custody fund established under

the gaming commission, and paid monthly, without appropriation, directly

to the metropolitan transportation authority commercial gaming revenue

fund established under section one thousand two hundred seventy-j of the

public authorities law and the remaining twenty percent shall continue

to be distributed in the same manner as subparagraphs (iii), (iv), and

(v) of paragraph (c) of this subdivision; provided however, that once

the dollar amount paid directly to the metropolitan transportation

authority commercial gaming revenue fund established under section one

thousand two hundred seventy-j of the public authorities law matches the

same dollar amount paid pursuant to the education aid hold harmless

amount as determined in subparagraph (i) of this paragraph in a given

state fiscal year, twenty percent of any excess dollar amounts shall be

distributed in the same manner as subparagraphs (iii), (iv), and (v) of

paragraph (c) of this subdivision, forty percent of any excess dollar

amounts shall be deposited to a sole custody fund established under the

gaming commission, and paid monthly, without appropriation, directly to

the metropolitan transportation authority commercial gaming revenue fund

established under section one thousand two hundred seventy-j of the

public authorities law, and forty percent of any excess dollar amounts

shall be deposited by the commission into the commercial gaming revenue

fund established under section ninety-seven-nnnn of the state finance

law for the sole purposes of education aid.

* (e) For any gaming facility that qualifies under subdivision two of

section thirteen hundred twenty-one-a of this article, is licensed under

title two-A of this article, and is located within New York City, upon

receiving tax payments from such gaming facility, the commission shall

estimate and may forward from such receipts such amount due to maintain

racing support payments pursuant to section thirteen hundred fifty-five

of this title and remaining tax revenues shall be distributed in the

following manner:

(i) Eighty percent of all remaining deposits in a state fiscal year

resulting from taxes imposed by this article, and any interest and

penalties imposed by the commission relating to those taxes, shall be

deposited in the same manner as in subparagraph (i) of paragraph (d) of

this subdivision. For the first fiscal year of gaming facility

operations, the hold harmless amount shall reflect a pro-rata amount

based on the opening date of the gaming facility.

(ii) Twenty percent of all remaining deposits in a state fiscal year

resulting from taxes imposed by this article, and any interest and

penalties imposed by the commission relating to those taxes, shall be

deposited to a sole custody fund established under the gaming

commission, and paid monthly, without appropriation, directly to the

metropolitan transportation authority commercial gaming revenue fund

established under section one thousand two hundred seventy-j of the

public authorities law until the applicable education aid hold harmless

amount as prescribed in subparagraph (i) of paragraph (d) of this

subdivision has been met.

(iii) Once the remaining deposits from a qualifying gaming facility as

prescribed in subparagraph (i) of this paragraph exceed the education

aid hold harmless amount as determined in subparagraph (i) of paragraph

(d) of this subdivision in a given state fiscal year, all subsequent

remaining deposits in such state fiscal year from taxes imposed by this

article, and any interest and penalties imposed by the commission

relating to those taxes, shall be deposited to a sole custody fund

established under the gaming commission, and paid monthly, without

appropriation, directly to the metropolitan transportation authority

commercial gaming revenue fund established under section one thousand

two hundred seventy-j of the public authorities law; provided however,

that once the dollar amount paid directly to the metropolitan

transportation authority commercial gaming revenue fund established

under section one thousand two hundred seventy-j of the public

authorities law matches the same dollar amount paid pursuant to the

education aid hold harmless amount as determined in subparagraph (i) of

paragraph (d) of this subdivision in a given state fiscal year, fifty

percent of any excess dollar amounts shall be deposited to a sole

custody fund established under the gaming commission, and paid monthly,

without appropriation, directly to the metropolitan transportation

authority commercial gaming revenue fund established under section one

thousand two hundred seventy-j of the public authorities law, and fifty

percent of any excess dollar amounts shall be deposited by the

commission into the commercial gaming revenue fund established under

section ninety-seven-nnnn of the state finance law for the sole purposes

of education aid.

* NB Effective until June 5, 2027

* (e) For any gaming facility that qualifies under subdivision two of

section thirteen hundred twenty-one-a of this article, is licensed under

title two-A of this article, and is located within New York City,

revenues shall be distributed in the following manner:

(i) Eighty percent of all deposits in a state fiscal year resulting

from taxes imposed by this article, and any interest and penalties

imposed by the commission relating to those taxes, shall be deposited in

the same manner as in subparagraph (i) of paragraph (d) of this

subdivision. For the first fiscal year of gaming facility operations,

the hold harmless amount shall reflect a pro-rata amount based on the

opening date of the gaming facility.

(ii) Twenty percent of all deposits in a state fiscal year resulting

from taxes imposed by this article, and any interest and penalties

imposed by the commission relating to those taxes, shall be deposited to

a sole custody fund established under the gaming commission, and paid

monthly, without appropriation, directly to the metropolitan

transportation authority commercial gaming revenue fund established

under section one thousand two hundred seventy-j of the public

authorities law until the applicable education aid hold harmless amount

as prescribed in subparagraph (i) of paragraph (d) of this subdivision

has been met.

(iii) Once the deposits from a qualifying gaming facility as

prescribed in subparagraph (i) of this paragraph exceed the education

aid hold harmless amount as determined in subparagraph (i) of paragraph

(d) of this subdivision in a given state fiscal year, all subsequent

deposits in such state fiscal year from taxes imposed by this article,

and any interest and penalties imposed by the commission relating to

those taxes, shall be deposited to a sole custody fund established under

the gaming commission, and paid monthly, without appropriation, directly

to the metropolitan transportation authority commercial gaming revenue

fund established under section one thousand two hundred seventy-j of the

public authorities law; provided however, that once the dollar amount

paid directly to the metropolitan transportation authority commercial

gaming revenue fund established under section one thousand two hundred

seventy-j of the public authorities law matches the same dollar amount

paid pursuant to the education aid hold harmless amount as determined in

subparagraph (i) of paragraph (d) of this subdivision in a given state

fiscal year, fifty percent of any excess dollar amounts shall be

deposited to a sole custody fund established under the gaming

commission, and paid monthly, without appropriation, directly to the

metropolitan transportation authority commercial gaming revenue fund

established under section one thousand two hundred seventy-j of the

public authorities law, and fifty percent of any excess dollar amounts

shall be deposited by the commission into the commercial gaming revenue

fund established under section ninety-seven-nnnn of the state finance

law for the sole purposes of education aid.

* NB Effective June 5, 2027

(f) For a municipality that was appropriated video lottery terminal

aid in the year two thousand twenty-three pursuant to section

fifty-four-l of the state finance law, the gaming facility licensed

under title two-A of this article that was previously authorized to

operate video lottery gaming pursuant to section one thousand six

hundred seventeen-a of the tax law must hold the municipality harmless

so that the host municipality does not receive less money in any state

fiscal year under the provisions of subparagraph (ii) of paragraph (d)

of this subdivision than such host municipality received in annual video

lottery terminal aid in the year two thousand twenty-three. The

provisions of this paragraph shall apply as of the first full state

fiscal year in which video lottery terminal aid is not received by the

municipality and gaming facility operations have commenced.

2. The commission shall require at least monthly deposits by the

licensee of any payments pursuant to section one thousand three hundred

fifty-one of this article, at such times, under such conditions, and in

such depositories as shall be prescribed by the state comptroller. The

deposits shall be deposited to the credit of the commercial gaming

revenue fund as established by section ninety-seven-nnnn of the state

finance law or to the metropolitan transportation authority commercial

gaming revenue fund established under section one thousand two hundred

seventy-j of the public authorities law, according to the requirements

of subdivision one of this section. The commission may require a monthly

report and reconciliation statement to be filed with it on or before the

tenth day of each month, with respect to gross revenues and deposits

received and made, respectively, during the preceding month.