Authorizes gambling on professional sporting events and athletic events sponsored by universities or colleges at betting facilities located at thoroughbred and harness racetracks operating in this state, in simulcast theaters operated by off-track betting corporations and in any constitutionally authorized casino facility; provides that the proceeds of such gambling be applied exclusively to or in aid or support of education.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5438
SPONSOR: Weprin
 
TITLE OF BILL: CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 9 of article 1 of the constitution, in
relation to authorizing gambling on professional sporting events and
athletic events sponsored by universities or colleges
 
SUMMARY OF PROVISIONS:
Article 1, Section 9 of the State Constitution would be amended to allow
for an additional exception to the prohibition on an gambling authoriz-
ing wagering on professional sporting events at betting facilities
located at horse racing tracks, simulcast theaters operated by off-track
betting corporations and in any constitutionally authorized casino
facility, as may be prescribed by the legislature, the net proceeds of
which shall be applied exclusively to or in aid or support of education.
 
EXISTING LAW:
Article 1, Section 9 of the State Constitution generally proscribes all
gambling except for four exceptions.. These four exceptions are: (1)
pari-mutuel wagering on horse racing; (2) State lotteries; (3) bingo
conducted by certain charitable, non-profit and religious organizations;
and (4) games of chance conducted by these same charitable, non-profit,
and religious organizations.
 
JUSTIFICATION:
Legalizing professional sports betting in New York would be an opportu-
nity to diminish a serious organized crime enterprise and provide crit-
ical funds for education.
According to the New York State District Attorney's Offices in both
Kings and Queens Counties, illegal sports betting generates more than
$100 billion a year nationwide, and between $15 and $30 billion a year
in New York City alone, While our law enforcement agencies do their best
to stop this criminal industry, it is an extremely lucrative criminal
enterprise for organized crime and one that has grown steadily over the
past 3 decades. State regulation of professional sports betting would
drastically reduce profits for organized crime as was the intent of the
New York State Legislature in 1982 when it sought to achieve similar
goals in creating Off-Track Betting. In addition, strong gaming control
regulations would help to abate any concerns regarding game fixing and
other potential abuses.
Furthermore, if the state were to legalize and regulate this industry it
would provide a tremendous source of revenue that could be used to
provide much needed funding for various services, such as education.
One estimate from The Partnership for New York City, suggests the state
could receive as much as $1.9 billion a year in revenue if professional
sports gambling were permitted in the current locations where gambling
in authorized in the state. This amount would then increase with the
recently proposed casino facilities.
Finally, the thrust of this legislation is regulation, not promotion.
While there are legitimate concerns related to the social challenges
that arise from problem gambling, this activity already exists on a
nationwide level and certainly within this state. The illegal organiza-
tions that are unlawfully benefiting from this industry are certainly
not concerned with addressing these challenges and instead benefit from
them. If New York were to allow professional sports betting the money
received by the state could be used to support education related
programs that are designed to address these social challenges as well as
providing much needed revenue to support education in general.
 
LEGISLATIVE HISTORY:
05/29/12 referred to racing and wagering
05/31/12 to attorney-general for opinion
06/06/12 amend (t) and recommit to racing and wagering
06/06/12 print number 10464a
06/07/12 to attorney-general for opinion
 
FISCAL IMPLICATIONS:
Significant revenue potential for state.
 
EFFECTIVE DATE:
If agreed by the Senate and the Assembly, the amendment will be referred
to the first regular legislative session convening after the next
succeeding general election of members of the assembly, and, in conform-
ity with section 1 of article 19 of the constitution, be published for 3
months previous to the time of such election.
STATE OF NEW YORK
________________________________________________________________________
5438
2017-2018 Regular Sessions
IN ASSEMBLY
February 9, 2017
___________
Introduced by M. of A. WEPRIN -- read once and referred to the Committee
on Racing and Wagering
CONCURRENT RESOLUTION OF THE SENATE AND ASSEMBLY
proposing an amendment to section 9 of article 1 of the constitution, in
relation to authorizing gambling on professional sporting events and
athletic events sponsored by universities or colleges
1 Section 1. Resolved (if the Senate concur), That subdivision 1 of
2 section 9 of article 1 of the constitution be amended to read as
3 follows:
4 1. No law shall be passed abridging the rights of the people peaceably
5 to assemble and to petition the government, or any department thereof;
6 nor shall any divorce be granted otherwise than by due judicial
7 proceedings; except as hereinafter provided, no lottery or the sale of
8 lottery tickets, pool-selling, book-making, or any other kind of gambl-
9 ing, except lotteries operated by the state and the sale of lottery
10 tickets in connection therewith as may be authorized and prescribed by
11 the legislature, the net proceeds of which shall be applied exclusively
12 to or in aid or support of education in this state as the legislature
13 may prescribe, except pari-mutuel betting on horse races as may be
14 prescribed by the legislature and from which the state shall derive a
15 reasonable revenue for the support of government, and except casino
16 gambling at no more than seven facilities as authorized and prescribed
17 by the legislature shall hereafter be authorized or allowed within this
18 state; and except wagering on professional sporting events and athletic
19 events sponsored by universities or colleges at betting facilities
20 located at thoroughbred and harness racetracks operating in this state,
21 in simulcast theaters operated by off-track betting corporations and in
22 any constitutionally authorized casino facility, as may be prescribed by
23 the legislature, the net proceeds of which shall be applied exclusively
24 to or in aid or support of education in this state as the legislature
25 may prescribe, and the legislature shall pass appropriate laws to
26 prevent offenses against any of the provisions of this section.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD89012-01-7
A. 5438 2
1 § 2. Resolved (if the Senate concur), That the foregoing amendment be
2 referred to the first regular legislative session convening after the
3 next succeeding general election of members of the assembly, and, in
4 conformity with section 1 of article 19 of the constitution, be
5 published for 3 months previous to the time of such election.