STATE OF NEW YORK
________________________________________________________________________
3095
2025-2026 Regular Sessions
IN ASSEMBLY
January 23, 2025
___________
Introduced by M. of A. ROSENTHAL, SIMON, SEAWRIGHT, BORES, REYES, MAMDA-
NI, KIM, GONZALEZ-ROJAS, FORREST, KELLES, EPSTEIN, SIMONE -- read once
and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to the investment of funds
wagered on video lottery gaming for certain horse races; to repeal
certain provisions of the tax law relating thereto; and to repeal
paragraph (b) of subdivision 1 of section 1355 of the racing, pari-mu-
tuel wagering and breeding law relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision f of section 1612 of the tax law, as amended by
2 chapter 174 of the laws of 2013, paragraph 1 as amended by section 2 of
3 part OO of chapter 59 of the laws of 2014, paragraph 3 as amended by
4 section 2 of part V of chapter 59 of the laws of 2020 and subparagraph
5 (i) of paragraph 3 as designated and subparagraph (ii) of paragraph 3 as
6 added by section 8 of part X of chapter 59 of the laws of 2023, is
7 amended to read as follows:
8 f. As consideration for the operation of the video lottery gaming
9 facility at Aqueduct racetrack, the division shall cause the investment
10 in the education system of the state of New York and the racing industry
11 of the following percentages of the vendor fee to be deposited or paid,
12 as follows:
13 1. Six and one-half percent of the total wagered after payout of
14 prizes for the first year of operation of video lottery gaming at Aque-
15 duct racetrack, seven percent of the total wagered after payout of
16 prizes for the second year of operation, and seven and one-half percent
17 of the total wagered after payout of prizes for the third year of opera-
18 tion and thereafter, for the purpose of [enhancing purses at Aqueduct
19 racetrack, Belmont Park racetrack and Saratoga race course. One percent
20 of the gross purse enhancement amount, as required by this subdivision,
21 shall be paid to the gaming commission to be used exclusively to promote
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06360-02-5
A. 3095 2
1 and ensure equine health and safety in New York. Any portion of such
2 funding to the gaming commission unused during a fiscal year shall be
3 returned on a pro rata basis in accordance with the amounts originally
4 contributed and shall be used for the purpose of enhancing purses at
5 such tracks] funding the education system of the state of New York,
6 shall be deposited in the state lottery fund for additional lottery
7 grants to eligible school districts, including schools serving students
8 with disabilities and schools with preschool special education programs.
9 [One and one-half percent of the gross purse enhancement amount, as
10 required by this subdivision, shall be paid to an account established
11 pursuant to section two hundred twenty-one-a of the racing, pari-mutuel
12 wagering and breeding law to be used exclusively to provide health
13 insurance for jockeys.]
14 2. [One] Eight and one-half percent of the total wagered after payout
15 of prizes [for the first year of operation of video lottery gaming at
16 Aqueduct racetrack, one and one-quarter percent of the total wagered
17 after payout of prizes for the second year of operation, and one and
18 one-half percent of the total wagered after payout of prizes for the
19 third year of operation and thereafter, for an appropriate breeding fund
20 for the manner of racing conducted at Aqueduct racetrack, Belmont Park
21 racetrack and Saratoga race course] shall be deposited in the state
22 lottery fund for additional lottery grants to eligible school districts,
23 including schools serving students with disabilities and schools with
24 preschool special education programs.
25 3. [(i) Four percent of the total revenue wagered after payout of
26 prizes to be deposited into an account of the franchised corporation
27 established pursuant to section two hundred six of the racing, pari-mu-
28 tuel wagering and breeding law to be used for capital expenditures in
29 maintaining and upgrading Aqueduct racetrack, Belmont Park racetrack and
30 Saratoga race course. Capital expenditures may include funding the
31 construction of and initially equipping a state-based equine drug test-
32 ing and research laboratory to be used pursuant to subdivision seven of
33 section nine hundred two of the racing, pari-mutuel wagering and breed-
34 ing law.
35 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event
36 the state provides funds to the franchised corporation for the reno-
37 vation of Belmont Park racetrack, out of the amount payable to the fran-
38 chised corporation for capital expenditures pursuant to subparagraph (i)
39 of this paragraph during any state fiscal year, an amount pursuant to
40 the repayment agreement between the state and the franchised corporation
41 shall instead be deposited into the miscellaneous capital projects fund,
42 New York racing capital improvement fund as required to repay the state
43 for funds provided for the renovation of Belmont Park racetrack. Any
44 amount payable to the franchised corporation in any state fiscal year
45 for capital expenditures pursuant to subparagraph (i) of this paragraph
46 in excess of the amount pursuant to the repayment agreement between the
47 state and the franchised corporation shall be deposited pursuant to
48 subparagraph (i) of this paragraph. Once the state has been fully reim-
49 bursed for the costs related to the renovation of Belmont Park race-
50 track, this subparagraph shall no longer apply and subparagraph (i) of
51 this paragraph shall apply.
52 4. Three percent of the total revenue wagered after payout for prizes
53 to be deposited into an account of the franchised corporation estab-
54 lished pursuant to section two hundred six of the racing, pari-mutuel
55 wagering and breeding law to be used for general thoroughbred racing
A. 3095 3
1 operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga
2 race course.
3 5.] Paragraphs one[,] and two[, three and four] of this subdivision
4 shall be known collectively as the "[racing] education support
5 payments".
6 § 2. Paragraph 1-b of subdivision b of section 1612 of the tax law, as
7 added by section 2 of part EE of chapter 59 of the laws of 2019, is
8 amended to read as follows:
9 1-b. Notwithstanding any provision of law to the contrary, free play
10 allowance credits authorized by the division pursuant to subdivision i
11 of section sixteen hundred seventeen-a of this article shall not be
12 included in the calculation of the total amount wagered on video lottery
13 games, the total amount wagered after payout of prizes, the vendor fees
14 payable to the operators of video lottery gaming facilities, fees paya-
15 ble to the division's video lottery gaming equipment contractors, [or]
16 racing support payments, or education support payments.
17 § 3. Subdivision f-1 of section 1612 of the tax law, as amended by
18 chapter 175 of the laws of 2013, subparagraph (i) of paragraph 3 as
19 designated and subparagraph (ii) of paragraph 3 as added by section 9 of
20 part X of chapter 59 of the laws of 2023, is amended to read as follows:
21 f-1. As consideration for operation of video lottery gaming facility
22 located in the county of Nassau or Suffolk and operated by a corporation
23 established pursuant to section five hundred two of the racing, pari-mu-
24 tuel wagering and breeding law, the division shall cause the [investment
25 in the racing industry of the] following [percentages] percentage of the
26 vendor fee to be deposited or paid as [follows:
27 1. Two and three tenths] five percent of the total wagered after
28 payout of prizes [for the purpose of enhancing purses at Aqueduct race-
29 track, Belmont Park racetrack and Saratoga race course, provided, howev-
30 er, that any amount that is in excess of the amount necessary to main-
31 tain purse support from video lottery gaming at Aqueduct racetrack,
32 Belmont Park racetrack and Saratoga race course at the same level real-
33 ized in two thousand thirteen, to be adjusted by the consumer price
34 index for all urban consumers, as published annually by the United
35 States department of labor, bureau of labor statistics, shall instead be
36 returned to the commission] shall be deposited in the state lottery fund
37 for additional lottery grants to eligible school districts, including
38 schools serving students with disabilities and schools with preschool
39 special education programs.
40 [2. five tenths percent of the total wagered after payout of prizes
41 for the appropriate breeding fund for the manner of racing at Aqueduct
42 racetrack, Belmont Park racetrack and Saratoga race course, provided,
43 however, that any amount that is in excess of the amount necessary to
44 maintain payments from video lottery gaming at Aqueduct racetrack at the
45 same level realized in two thousand thirteen, to be adjusted by the
46 consumer price index for all urban consumers, as published annually by
47 the United States department of labor, bureau of labor statistics, shall
48 instead be returned to the commission.
49 3. (i) one and three tenths percent of the total revenue wagered after
50 payout of prizes to be deposited into an account of the franchised
51 corporation established pursuant to section two hundred six of the
52 racing, pari-mutuel wagering and breeding law to be used for capital
53 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont
54 Park racetrack and Saratoga race course, provided, however, that any
55 amount that is in excess of the amount necessary to maintain payments
56 for capital expenditures from video lottery gaming at Aqueduct racetrack
A. 3095 4
1 at the same level realized in two thousand thirteen, to be adjusted by
2 the consumer price index for all urban consumers, as published annually
3 by the United States department of labor, bureau of labor statistics,
4 shall instead be returned to the commission.
5 (ii) Notwithstanding subparagraph (i) of this paragraph, in the event
6 the state provides funds to the franchised corporation for the reno-
7 vation of Belmont Park racetrack, and in the event the amount deposited
8 pursuant to subparagraph (ii) of paragraph three of subdivision f of
9 this section is insufficient to make the required repayment pursuant to
10 such subparagraph during any state fiscal year, an amount payable to the
11 franchised corporation for capital expenditures pursuant to subparagraph
12 (i) of this paragraph shall instead be deposited into the miscellaneous
13 capital projects fund, New York racing capital improvement fund to the
14 extent necessary, when combined with the amount set forth in subpara-
15 graph (ii) of paragraph three of subdivision f of this section, to make
16 any required repayment of funds provided by the state related to the
17 renovation of Belmont Park racetrack during such fiscal year. Any amount
18 payable to the franchised corporation in any state fiscal year for capi-
19 tal expenditures pursuant to subparagraph (i) of this paragraph in
20 excess of the amount pursuant to the repayment agreement between the
21 state and the franchised corporation shall be deposited pursuant to
22 subparagraph (i) of this paragraph. Once the state has been fully reim-
23 bursed for such costs related to the renovation of Belmont Park race-
24 track, this subparagraph shall no longer apply and subparagraph (i) of
25 this paragraph shall apply.
26 4. Nine tenths percent of the total revenue wagered after payout for
27 prizes to be deposited into an account of the franchised corporation
28 established pursuant to section two hundred six of the racing, pari-mu-
29 tuel wagering and breeding law to be used for general thoroughbred
30 racing operations at Aqueduct racetrack, Belmont Park racetrack and
31 Saratoga race course, provided, however, that any amount that is in
32 excess of the amount necessary to maintain payments for general
33 thoroughbred racing operations from video lottery gaming at Aqueduct
34 racetrack at the same level realized in two thousand thirteen, to be
35 adjusted by the consumer price index for all urban consumers, as
36 published annually by the United States department of labor, bureau of
37 labor statistics, shall instead be returned to the commission.]
38 § 4. The opening paragraph of paragraph 2 of subdivision b of section
39 1612 of the tax law, as amended by section 2 of part S of chapter 39 of
40 the laws of 2019, is amended to read as follows:
41 As consideration for the operation of a video lottery gaming facility,
42 the division, shall cause the investment [in the racing industry] in
43 those counties that host video lottery gaming facilities, of a portion
44 of the vendor fee received pursuant to paragraph one of this subdivision
45 in the manner set forth in this subdivision. With the exception of
46 Aqueduct racetrack, a video lottery gaming facility authorized pursuant
47 to paragraph five of subdivision a of section sixteen hundred seven-
48 teen-a of this article or a facility in the county of Nassau or Suffolk
49 operated by a corporation established pursuant to section five hundred
50 two of the racing, pari-mutuel wagering and breeding law, each such
51 track shall dedicate a portion of its vendor fees, received pursuant to
52 clause (A), (B), (B-1), (B-2), (C), or (D) of subparagraph (ii) of para-
53 graph one of this subdivision, for the purpose of [enhancing purses at
54 such track] funding economic development, job creation, and workforce
55 protections in the counties that host video lottery gaming facilities,
56 in an amount equal to eight and three-quarters percent of the total
A. 3095 5
1 revenue wagered at the vendor track after pay out for prizes. [One
2 percent of the gross purse enhancement amount, as required by this
3 subdivision, shall be paid to the gaming commission to be used exclu-
4 sively to promote and ensure equine health and safety in New York. Any
5 portion of such funding to the gaming commission unused during a fiscal
6 year shall be returned to the video lottery gaming operators on a pro
7 rata basis in accordance with the amounts originally contributed by each
8 operator and shall be used for the purpose of enhancing purses at such
9 track] Such funds shall be credited to the host county in which each
10 vendor track resides. Such funds shall be utilized by such counties for
11 the purposes of economic development, job creation, and workforce
12 protections. If a vendor track ceases racing operations, such vendor fee
13 shall continue to be paid.
14 [One and one-half percent of the gross purse enhancement amount at a
15 thoroughbred track, as required by this subdivision, shall be paid to an
16 account established pursuant to section two hundred twenty-one-a of the
17 racing, pari-mutuel wagering and breeding law to be used exclusively to
18 provide health insurance for jockeys.] In addition, with the exception
19 of Aqueduct racetrack, a video lottery gaming facility authorized pursu-
20 ant to paragraph five of subdivision a of section sixteen hundred seven-
21 teen-a of this article or a facility in the county of Nassau or Suffolk
22 operated by a corporation established pursuant to section five hundred
23 two of the racing, pari-mutuel wagering and breeding law, one and one-
24 quarter percent of total revenue wagered at the vendor track after pay
25 out for prizes, received pursuant to clause (A), (B), (B-1), (B-2), (C),
26 or (D) of subparagraph (ii) of paragraph one of this subdivision, shall
27 be distributed [to the appropriate breeding fund for the manner of
28 racing conducted by such track] for funding economic development, job
29 creation, and workforce protections in the counties that host video
30 lottery gaming facilities.
31 § 5. Paragraph 3 of subdivision b of section 1612 of the tax law is
32 REPEALED.
33 § 6. Subdivision h of section 1612 of the tax law, as amended by
34 section 3 of part S of chapter 39 of the laws of 2019, is amended to
35 read as follows:
36 h. As consideration for the operation of a video lottery gaming facil-
37 ity located in Orange county, the division shall cause the investment in
38 the [racing industry] education system of the state of New York at the
39 following amount from the vendor fee to be paid as follows:
40 [As amount to the horsemen for purses at a licensed racetrack in
41 Sullivan county in an] An amount equal to eight and three-quarters
42 percent of the total revenue wagered at the video lottery gaming facili-
43 ty, after pay out for prizes to be deposited in the state lottery fund
44 for additional lottery grants to eligible school districts, including
45 schools serving students with disabilities and schools with preschool
46 special education programs. [The facility located in Orange county, as
47 defined in paragraph five of subdivision a of section sixteen hundred
48 seventeen-a of this article shall pay to the horsemen at a licensed
49 racetrack at Yonkers racetrack an amount to maintain purses for such
50 horsemen at the same dollar levels realized in two thousand eighteen, to
51 be adjusted by the consumer price index for all urban consumers, as
52 published annually by the United States department of labor bureau of
53 labor statistics.] In addition, one and one-quarter percent of total
54 revenue wagered at the video lottery gaming facility after pay out for
55 prizes, received pursuant to clause (B) of subparagraph (ii) of para-
56 graph one of subdivision b of this section, shall be distributed to the
A. 3095 6
1 [appropriate breeding] state lottery fund for [the manner of racing
2 conducted by such track] additional lottery grants to eligible school
3 districts, including schools serving students with disabilities and
4 schools with preschool special education programs. In no circumstance
5 shall net proceeds of the lottery, including the proceeds from video
6 lottery gaming, be used for the payment of non-lottery expenses of the
7 gaming commission, administrative or otherwise.
8 § 7. Paragraph 5 of subdivision a of section 1617-a of the tax law, as
9 added by section 4 of part S of chapter 39 of the laws of 2019, is
10 amended to read as follows:
11 (5) At a facility located in Orange county to be operated by the enti-
12 ty otherwise licensed to operate video lottery gaming at Monticello
13 racetrack, provided that: (i) such licensed entity is no longer operat-
14 ing video lottery gaming at Monticello racetrack [and provided that
15 Monticello racetrack is conducting racing operations]; (ii) such facili-
16 ty in Orange county is not sited within a thirty mile radius of the
17 video lottery gaming facility at Yonkers racetrack; and (iii) the
18 licensed entity, its subsidiaries and affiliates, including the entity
19 licensed to operate a commercial gaming facility in Sullivan county, and
20 the entity licensed to operate video lottery gaming at Yonkers racetrack
21 enter into a mitigation agreement, to be approved by the gaming commis-
22 sion, which shall include, but not be limited to, terms that require:
23 (A) the operator of the facility in Orange county to make an annual
24 payment to the entity licensed to operate video lottery gaming or
25 commercial gaming at Yonkers racetrack to account for the effects that
26 siting such facility in Orange county would likely have on the gross
27 gaming revenue of the entity licensed to operate at Yonkers racetrack;
28 (B) employment levels at the affected facilities; and (C) that upon
29 expiration or termination of the agreement, the authority to operate
30 video lottery gaming in Orange county shall cease. Notwithstanding any
31 other provision of this subdivision, at no time shall an entity operat-
32 ing video lottery gaming in Orange county be permitted to apply for or
33 receive a license to operate a commercial gaming facility in that coun-
34 ty.
35 § 8. Paragraph (b) of subdivision 1 of section 1355 of the racing,
36 pari-mutuel wagering and breeding law is REPEALED.
37 § 9. Severability. If any provision or term of this act is, for any
38 reason, declared unconstitutional or invalid or ineffective by any
39 competent jurisdiction, such decision shall not affect the validity of
40 the effectiveness of the remaining portions of this act or any part
41 thereof.
42 § 10. This act shall take effect immediately.
