N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 523: General limitations on off-track betting

§ 523. General limitations on off-track betting. The commission shall

require that any regional corporation conduct off-track pari-mutuel

betting in accordance with this section.

1. The system of off-track betting operated by such corporation,

except as otherwise provided in this section, shall result in the

combination of all off-track wagers with on-track wagers 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

off-track or on-track.

2. Exotic and multiple bets on races run within the state may be

approved by the commission without a comparable on-track pool, provided

that the corporation or association conducting such races shall have

filed with the commission a written consent for such off-track exotic or

multiple bets on races held at its track.

3. The commission may approve separate off-track pools on races run in

other states subject to the limitations of this section and of

subdivision eight of this section in particular.

4. No regional corporation authorized to conduct off-track betting by

the commission shall accept off-track wagers on races run at any harness

track located without its region while a harness track within its region

is conducting a race meeting involving pari-mutuel betting without the

approval of the regional operating harness track; provided, however,

that for the purposes of this subdivision, the Suffolk region, the

Nassau region, the New York city region, and the portion of the Catskill

region outside a special betting district shall be considered a single

region; and further provided, however, that for the purposes of this

subdivision, there shall be created a harness special betting district,

consisting of the counties of Cayuga, Chenango, Cortland, Franklin,

Herkimer, Jefferson, Lewis, Madison, Oneida, Onondaga, Oswego, Otsego,

St. Lawrence and Tompkins in which no off-track betting on races run at

a harness track without such special betting district shall be permitted

while a harness track within such special betting district is conducting

a race meeting involving pari-mutuel betting.

4-a. Notwithstanding any inconsistent provision of subdivision four of

this section, regional off-track betting corporations are hereby

authorized and empowered in each year to accept wagers on the races

known as the "Dr. Harry M. Zweig Memorial Trot" and "Empire Commission's

Cup" (A pace) to be run under the auspices of the New York State

Industrial Exhibit Authority.

5. Except for races conducted by a thoroughbred track in the Catskill

region during a mixed meeting, no regional corporation shall accept

wagers on any thoroughbred or steeplechase race run on any thoroughbred

or steeplechase track located without its region while a thoroughbred or

steeplechase track within its region is conducting a race meeting

involving pari-mutuel betting without the approval of the operating

regional thoroughbred or steeplechase track, except that the Catskill

and Suffolk regional corporations may accept wagers on any thoroughbred

track outside its region while a thoroughbred track within the region is

conducting such a race meeting provided the regional corporation accepts

wagers on such track within the region; provided, however, that for the

purposes of this subdivision, there shall be created a thoroughbred

special betting district, consisting of the counties of Orleans,

Genesee, Wyoming, Allegany, Monroe, Livingston, Steuben, Wayne, Ontario,

Yates, Seneca, Schuyler, Cayuga, Tompkins, Onondaga and Cortland, in

which no off-track betting on races run at a thoroughbred or

steeplechase track without such special district including such a track

within the Catskill region shall be permitted while a thoroughbred or

steeplechase track within such special district is conducting a race

meeting involving pari-mutuel betting without the approval of the

operating regional thoroughbred or steeplechase track; provided,

however, that within such district in the counties of Wyoming, Allegany,

Steuben and Schuyler off-track betting on races run at a track by a

franchised corporation without such special district shall be permitted.

Notwithstanding any inconsistent provision in the foregoing, the

regional off-track betting corporations are hereby authorized and

empowered to accept all wagers on races known as the "Belmont Stakes",

the "Travers Stakes", the "Breeders' Cup Series" and the "New York

Derby"; and such corporation, outside of a harness special betting

district, is hereby authorized and empowered to accept wagers on the

races comprising the seven-day race meeting known as the "Syracuse

Mile".

6. a. No regional corporation may accept wagers on races run at a

thoroughbred or steeplechase track in another state or country while a

thoroughbred or steeplechase track within this state is conducting a

race meeting involving pari-mutuel betting; provided, however, that

notwithstanding any inconsistent provision, the commission may designate

no more than fifteen thoroughbred or steeplechase races per year as

races of special interest on which off-track pari-mutuel betting may be

accepted by regional corporations, provided further that for purposes of

this subdivision the acceptance of wagers on a series of races known as

the "Breeders' Cup" shall be considered as a single thoroughbred or

steeplechase race of special interest and all such races shall be

determined in accordance with article nine of this chapter.

b. When a race meeting is not being conducted by a franchised

corporation and a thoroughbred race meeting is being conducted at a

track located within the thoroughbred special betting district, regional

corporations and portions of regional corporations outside such

district, shall, in addition to accepting wagers on races at such track,

also be permitted to accept wagers on thoroughbred races run in another

state. In the event that wagers are accepted on races run at both a

track located in the thoroughbred special betting district and at a

track located in another state, the balance of the amount payable to

tracks within this state pursuant to paragraph f of subdivision one of

section five hundred twenty-seven of this article, but (i) not less than

one percent on regular and multiple wagering and two percent on exotic

wagers, shall be paid to the track located within the thoroughbred

special betting district running thoroughbred races, and (ii) not less

than three-quarters of one percent of regular and multiple wagering and

one and one-quarter percent on exotic wagers shall be paid to the

harness track operator conducting racing within the region within which

the wagers on such out-of-state races are placed.

c. If as a result of the authorization granted in paragraph b of this

subdivision, the average daily distribution to harness track operators

from regional off-track betting corporations and attributable to the

conduct of off-track betting on thoroughbred races run concurrently by

both an in-state and an out-of-state track operator during the period

from June first, nineteen hundred seventy-eight through May

thirty-first, nineteen hundred seventy-nine and each succeeding

twelve-month period thereafter is less than the average daily

distribution to such operators from off-track betting corporations and

attributable to the conduct of racing by a thoroughbred racing

association during the base period of June first, nineteen hundred

seventy-seven through May thirty-first, nineteen hundred seventy-eight,

such operators shall be entitled to a credit against the state tax

imposed upon its pari-mutuel revenues. The tax credit for any

twelve-month period shall be an amount calculated by multiplying the

shortfall in the average daily distribution by the number of days in

each twelve-month period that regional off-track betting corporations

conduct betting on thoroughbred races run concurrently by both an

in-state and an out-of-state track operator. The commission shall so

certify to the department of taxation and finance the amount of credit

applicable to each harness track operator no later than thirty days

following the close of each twelve-month period.

7. No regional corporation may accept wagers on races run at a harness

track in another state or country while a harness track within this

state is conducting a race meeting involving pari-mutuel betting;

provided, however, that notwithstanding any inconsistent provisions the

commission may designate no more than fifty harness races per year as

races of special interest on which off-track pari-mutuel betting may be

accepted by regional corporations.

8. Pools permitted by subdivisions three, six and seven of this

section shall be combined into a single statewide pool for the

calculation of odds and the determination of payouts which shall be

uniform throughout the state.

9. Notwithstanding any other provision of this article any regional

corporation having a missed pool as defined in this subdivision shall

dispose of such pool according to rules and regulations of the

commission, which shall direct such regional corporations and such

missed pools to the in-state track conducting the race on which the

wager was placed to be used for the next available common pool.