N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 904: On-track wagers on the Kentucky Derby, the Preakness and the Breeders' Cup

§ 904. On-track wagers on the Kentucky Derby, the Preakness and the

Breeders' Cup. 1. Notwithstanding any inconsistent provision of this

chapter, whenever a regional off-track betting corporation accepts

wagers on and displays the simulcast of the Kentucky Derby, the

Preakness or races known as the "Breeders' Cup", any corporation or

association conducting pari-mutuel betting pursuant to this chapter may

elect to accept wagers on and display the simulcast of the Kentucky

Derby, the Preakness and the races known as the Breeders' Cup. Upon such

election:

a. The applicable state tax provided for in paragraphs a and b of

subdivision one of section five hundred twenty-seven of this chapter

shall be one-half percent for regular, multiple and exotic bets. Any

harness racing or association or corporation, or thoroughbred racing

corporation authorized pursuant to this section shall pay to the

commission as a regulatory fee, which fee is hereby levied, six-tenths

of one percent of the total daily pari-mutuel pools.

b. The system of on and off-track betting shall result in the

combination of all off-track wagers with on-track wagers so as to

produce common pari-mutuel betting pools. Provided, however, that the

commission may authorize separate pari-mutuel wagering pools for any

corporation or association electing to accept such wagers, if the

commission determines that a common on and off-track pari-mutuel betting

pool, due to limitations in existing computer systems and information

transmission and receiving capacities cannot practically be accomplished

so as to maximize a reasonable number of separate wagering interests.

The resulting separate pools for regional off-track betting corporations

shall be subject to the limitations set forth in subdivision eight of

section five hundred twenty-three of this chapter.

c. Every association and corporation shall distribute all sums

deposited in any pari-mutuel pool to the holders of winning tickets

therein, providing such tickets be presented for payment before April

first of the year following the year of their purchase, less an amount

that it shall retain at the same rate established by the sending track.

d. For a franchised corporation, the applicable state tax and

distributions to purses and the New York state thoroughbred breeding and

development fund shall be the same amounts as provided in section two

hundred thirty-eight of this chapter provided, however, that upon

election of any corporation to accept such wagers, no additional amounts

may be withheld as provided in section two hundred thirty-seven of this

chapter.

e. For any corporation licensed pursuant to article two of this

chapter, the applicable state tax shall be one percent of all wagers,

the amount payable to the thoroughbred breeding and development fund

shall be one-half of one percent and distribution to purses shall be

fifty percent of the amount retained by the track after all statutory

and contracted payments are made. No additional amounts may be withheld

as provided in section two hundred thirty-seven of this chapter.

f. For any association or corporation licensed pursuant to article

three of this chapter, the applicable state tax shall be one percent of

all wagers, the amount payable to the thoroughbred breeding and

development fund shall be one-half of one percent and distributions to

purses shall be one and three-quarters percent. No additional amounts

may be withheld as provided in section three hundred nineteen of this

chapter. For the purposes of purse distributions, any association or

corporation located in the Western Off-Track Betting Region shall remit

said distributions to the thoroughbred track located within said region

and all other corporations or associations shall remit said purse

distributions to a franchised corporation.

Notwithstanding any other provision of law, any such association or

corporation conducting pari-mutuel wagering on races run by a franchised

corporation on the days when they are accepting wagers on the Kentucky

Derby, the Preakness or the Breeders' Cup shall pay a state pari-mutuel

tax of one percent of all such wagers in lieu of the tax imposed by

paragraph a of subdivision three of section one thousand seven of this

chapter.

2. The commission shall approve an application from any racing

corporation or association pursuant to subdivision one of this section

to accept on-track wagers and display the simulcast of the Kentucky

Derby or the Preakness provided, however, that no application shall be

approved by the board that it determines may cause a reduction of the

total number of racing events normally conducted at the track on a daily

basis.

2-a. The commission shall approve an application from any racing

corporation or association pursuant to subdivision one of this section

to accept on-track wagers on the Breeders' Cup races, and, in instances

where the application contemplates the on-track display of simulcasts of

and wagering on the entire card of Breeders' Cup races, the commission

shall authorize, for that day, a reduction of the total number of racing

events normally conducted at the track on a daily basis provided that

the total number of live racing events conducted at the track shall not

be less than two.

3. Every racing association or corporation authorized to accept wagers

on the Kentucky Derby, the Preakness or the Breeders' Cup pursuant to

subdivision one of this section shall be subject to all appropriate

provisions of this chapter pursuant to the conduct of a race meeting by

such association or corporation.

4. Notwithstanding any other provision of law, whenever a harness

racing association or corporation is receiving the simulcast of races

run at a thoroughbred racing corporation, such harness racing

association may also receive the telecast of and accept wagers on any

out of state races which are telecast to the thoroughbred racing

corporation. Pools resulting from wagers in the out of state races shall

be combined with the appropriate pools resulting from wagers on such

races at the thoroughbred racing corporation.