N.Y. Tax Law § 1617-a: Video lottery gaming

§ 1617-a. Video lottery gaming. a. The gaming commission is hereby

authorized to license, pursuant to rules and regulations to be

promulgated by the gaming commission, the operation of video lottery

gaming at;

(1) Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs

racetracks;

(2) any other racetrack licensed pursuant to article three of the

racing, pari-mutuel wagering and breeding law located in a county or

counties in which video lottery gaming has been authorized pursuant to

local law, excluding the licensed racetrack commonly referred to in

article three of the racing, pari-mutuel wagering and breeding law as

the "New York state exposition" held in Onondaga county and the

racetracks of the non-profit racing association known as Belmont Park

racetrack and the Saratoga thoroughbred racetrack;

(3) a maximum of two facilities, which shall be vendors for all

purposes under this article established within region three of zone one

as defined by section one thousand three hundred ten of the racing,

pari-mutuel wagering and breeding law, one each operated by a

corporation established pursuant to section five hundred two of the

racing, pari-mutuel wagering and breeding law in the Suffolk region and

the Nassau region to be located within a facility authorized pursuant to

sections one thousand eight or one thousand nine of the racing,

pari-mutuel wagering and breeding law, provided however, that in the

Nassau region such facility shall not exceed one thousand video lottery

gaming devices and in the Suffolk region such facility shall not exceed

two thousand video lottery gaming devices; and

(4) Aqueduct racetrack, within the lottery terminal facility, pursuant

to an agreement between the corporation established pursuant to section

five hundred two of the racing, pari-mutuel wagering and breeding law in

the Nassau region and the operator of video lottery gaming at Aqueduct

racetrack, when such agreement is approved by the gaming commission and

as long as such agreement is in place, and when such agreement is

accompanied by a detailed spending plan for the corporation established

pursuant to section five hundred two of the racing, pari-mutuel wagering

and breeding law in the Nassau region, which includes a plan for the

timely payment of liabilities due to the franchised corporation, and

when such video lottery devices are hosted by the operator of video

lottery gaming at Aqueduct racetrack on behalf of the corporation

established pursuant to section five hundred two of the racing,

pari-mutuel wagering and breeding law in the Nassau region in lieu of

the development of a facility in Nassau county as authorized by

paragraph three of subdivision a of this section. Such agreement reached

by the parties shall identify the agency principally responsible for

funding, approving or undertaking any actions of such agreement.

Provided, however, nothing in this paragraph shall infringe upon the

rights of the corporation established pursuant to section five hundred

two of the racing, pari-mutuel wagering and breeding law in the Nassau

region to develop a facility pursuant to paragraph three of this

subdivision upon the expiration, termination, or withdrawal of such

agreement.

(5) At a facility located in Orange county to be operated by the

entity otherwise licensed to operate video lottery gaming at Monticello

racetrack, provided that: (i) such licensed entity is no longer

operating video lottery gaming at Monticello racetrack and provided that

Monticello racetrack is conducting racing operations; (ii) such facility

in Orange county is not sited within a thirty mile radius of the video

lottery gaming facility at Yonkers racetrack; and (iii) the licensed

entity, its subsidiaries and affiliates, including the entity licensed

to operate a commercial gaming facility in Sullivan county, and the

entity licensed to operate video lottery gaming at Yonkers racetrack

enter into a mitigation agreement, to be approved by the gaming

commission, which shall include, but not be limited to, terms that

require: (A) the operator of the facility in Orange county to make an

annual payment to the entity licensed to operate video lottery gaming or

commercial gaming at Yonkers racetrack to account for the effects that

siting such facility in Orange county would likely have on the gross

gaming revenue of the entity licensed to operate at Yonkers racetrack;

(B) employment levels at the affected facilities; and (C) that upon

expiration or termination of the agreement, the authority to operate

video lottery gaming in Orange county shall cease. Notwithstanding any

other provision of this subdivision, at no time shall an entity

operating video lottery gaming in Orange county be permitted to apply

for or receive a license to operate a commercial gaming facility in that

county.

(6) Notwithstanding any other provision of law to the contrary, as a

condition of the license to operate a video lottery gaming facility

located in Orange county, such operator shall provide an annual

certification to the New York state gaming commission that the staffing

levels at a commercial gaming facility located in zone two, region one

pursuant to section thirteen hundred ten of the racing, pari-mutuel

wagering and breeding law (or any successor commercial gaming facility

located in said region) are no less than one thousand four hundred

seventy-three full-time, permanent employees. In furtherance of and

without limiting the foregoing, the licensee for the commercial gaming

facility located in zone two, region one pursuant to section thirteen

hundred ten of the racing, pari-mutuel wagering and breeding law (or any

successor commercial gaming facility located in such region) shall not

conduct any mass, involuntary layoff events that would trigger worker

adjustment and retraining notification (WARN) act notifications pursuant

to article twenty-five-A of the labor law or otherwise result in the

employment levels at such facility dropping below levels mandated by

this section. For purposes of this section, "full-time, permanent

employee" shall mean an employee who has worked at the facility for a

minimum of thirty-five hours per week for not less than four consecutive

weeks and who is entitled to receive the usual and customary fringe

benefits extended to other employees with comparable rank and duties; or

two part-time employees who have worked at the facility for a combined

minimum of thirty-five hours per week for not less than four consecutive

weeks and who are entitled to receive the usual and customary fringe

benefits extended to other employees with comparable rank and duties.

(7) The village of Monticello, Sullivan county, the town of Thompson,

Sullivan county, and Sullivan county shall continue to receive

assistance payments made pursuant to section fifty-four-l of the state

finance law.

b. Such rules and regulations shall provide, as a condition of

licensure, that racetracks to be licensed are certified to be in

compliance with all state and local fire and safety codes, that the

gaming commission is afforded adequate space, infrastructure, and

amenities consistent with industry standards for such video lottery

gaming operations as found at racetracks in other states, that racetrack

employees involved in the operation of video lottery gaming pursuant to

this section are licensed by the gaming commission and such other terms

and conditions of licensure as the gaming commission may establish.

Notwithstanding any inconsistent provision of law, video lottery gaming

at a racetrack pursuant to this section shall be deemed an approved

activity for such racetrack under the relevant city, county, town, or

village land use or zoning ordinances, rules, or regulations. No entity

licensed by the gaming commission operating video lottery gaming

pursuant to this section may house such gaming activity in a structure

deemed or approved by the division as "temporary" for a duration of

longer than eighteen-months. Nothing in this section shall prohibit the

gaming commission from licensing an entity to operate video lottery

gaming at an existing racetrack as authorized in this subdivision

whether or not a different entity is licensed to conduct horse racing

and pari-mutuel wagering at such racetrack pursuant to article two or

three of the racing, pari-mutuel wagering and breeding law.

The gaming commission shall establish standards for approval of the

temporary and permanent physical layout and construction of any facility

or building devoted to a video lottery gaming operation. In reviewing

such application for the construction or reconstruction of facilities

related or devoted to the operation or housing of video lottery gaming

operations, the gaming commission shall ensure that such facility:

(1) possesses superior consumer amenities and conveniences to

encourage and attract the patronage of tourists and other visitors from

across the region, state, and nation.

(2) has adequate motor vehicle parking facilities to satisfy patron

requirements.

(3) has a physical layout and location that facilitates access to and

from the horse racing track portion of such facility to encourage

patronage of live horse racing events that are conducted at such track.

c. The terminals authorized pursuant to paragraph four of subdivision

a of this section shall:

(i) be deemed as operated by the corporation established pursuant to

section five hundred two of the racing, pari-mutuel wagering and

breeding law in the Nassau region for the purposes of section sixteen

hundred twelve of this chapter and the distributions therefrom made as

if the video lottery devices were located in Nassau county;

(ii) consist exclusively of electronic table games, unless otherwise

approved by the gaming commission and the director of the division of

the budget; and

(iii) be individually designated as hosted.

d. Notwithstanding any law, rule or regulation to the contrary, absent

the enactment of sufficient alternative revenue sources for the

franchised corporation in a chapter of law providing a statutory plan

for the prospective not-for-profit governing structure of The New York

Racing Association, Inc., any agreement for the operation of terminals

authorized pursuant to paragraph four of subdivision a of this section

shall require the operator of video lottery gaming at Aqueduct racetrack

to maintain racing support for general thoroughbred racing operations

and capital expenditures from video lottery gaming at Aqueduct

racetrack, at the same level realized in two thousand thirteen, to be

adjusted by the consumer price index for all urban consumers, as

published annually by the United States department of labor, bureau of

labor statistics.

e. Video lottery gaming shall only be permitted for no more than

twenty consecutive hours per day and on no day shall such operation be

conducted past 6:00 a.m.

f. The gaming commission shall promulgate such rules and regulations

as may be necessary for the implementation of video lottery gaming in

accordance with the provisions of this section and paragraph five of

subdivision a of section sixteen hundred twelve of this article.

g. All workers engaged in the construction, reconstruction,

development, rehabilitation, or maintenance of any area for the purpose

of the installation, maintenance, or removal of video lottery gaming

terminals shall be subject to the provisions of articles eight and nine

of the labor law to the extent provided in such articles.

h. The gaming commission shall not approve the construction or

alteration of any facility or building devoted to the operation or

housing of video lottery gaming until the person or entity selected to

operate such video lottery gaming shall have submitted to the gaming

commission a statement of the location of the proposed facility or

building, together with a plan of such racetrack, and plans of all

existing buildings, seating stands and other structures on the grounds

of such racetrack, in such form as the gaming commission may prescribe,

and such plans shall have been approved by the gaming commission. The

gaming commission, at the expense of the applicant, may order such

engineering examination thereof as the gaming commission may deem

necessary. Such construction or alteration may be made only with the

approval of the gaming commission and after examination and inspection

of the plans thereof and the issuance of a permit by the gaming

commission.

i. (1) The gaming commission may administer a free play allowance

program to offer players or prospective players of video lottery games

free play credits for the purpose of increasing revenues earned by the

video lottery gaming program for the support of education. For the

purposes of this subdivision, "free play allowance credit" means a

specified dollar amount that (i) may be used by a player to play a video

lottery game without paying any other consideration, and (ii) is not

used in the calculation of total revenue wagered after payout of prizes.

(2) For each video lottery gaming facility, the gaming commission

shall authorize the use of free play allowance credits if the operator

of such facility submits a written plan for the use of the free play

allowance that the gaming commission determines is designed to increase

the amount of revenue earned by video lottery gaming at such facility

for the support of education.

(3) For each video lottery facility, the annual value of the free play

allowance credits authorized for use by the operator pursuant to this

subdivision shall not exceed an amount equal to fifteen percent of the

total amount wagered on video lottery games after payout of prizes. The

gaming commission shall establish procedures to assure that free play

allowance credits do not exceed such amount.

(4) The gaming commission, in conjunction with the director of the

budget, may suspend the use of free play allowance credits authorized

pursuant to this subdivision whenever they jointly determine that the

use of free play allowance credits are not effective in increasing the

amount of revenue earned for the support of education, and such use may

not be resumed unless the operator of such facility submits a new or

revised written plan for the use of the free play allowance that the

gaming commission determines is designed more effectively to produce an

increase in the amount of revenue earned by video lottery gaming at such

facility for the support of education.

(5) Nothing in this subdivision shall be deemed to prohibit the

operator of a video lottery facility from offering free play credits to

players or prospective players of video lottery games when the value of

such free play credits is included in the calculation of the total

amount wagered on video lottery games and the total amount wagered after

payout of prizes, and the operator of such facility pays the gaming

commission the full amount due as the result of such calculations.

(6) The gaming commission may amend the contract with the provider of

the central computer system that controls the video lottery network

during the term of such contract in effect on the effective date of this

subdivision to provide additional consideration to such provider in an

amount determined by the gaming commission to be necessary to compensate

for (i) processing free play allowance transactions and (ii) system

updates and modifications otherwise needed as of such effective date.

j. Every video lottery gaming license, and every renewal license,

shall be valid for a period of five years, except that video lottery

gaming licenses issued before the effective date of this subdivision

shall be for a term expiring on the applicant's next birthday following

June thirtieth, two thousand fourteen.

The gaming commission may decline to renew any license after notice

and an opportunity for hearing if it determines that:

(1) the licensee has violated section one thousand six hundred seven

of this article;

(2) the licensee has violated any rule, regulation or order of the

gaming commission;

(3) the applicant or its officers, directors or significant

stockholders, as determined by the gaming commission, have been

convicted of a crime involving moral turpitude; or

(4) that the character or fitness of the licensee and its officers,

directors, and significant stockholders, as determined by the gaming

commission is such that the participation of the applicant in video

lottery gaming or related activities would be inconsistent with the

public interest, convenience or necessity or with the best interests of

video lottery gaming generally.

k. The gaming commission, subject to notice and an opportunity for

hearing, may revoke, suspend, and condition the license of the video

lottery gaming licensee, order the video lottery gaming licensee to

terminate the continued appointment, position or employment of officers

and directors, or order the video lottery gaming licensee to require

significant stockholders to divest themselves of all interests in the

video lottery gaming licensee.