Relates to the Catskill off-track betting corporation providing licensing and financing to the Monticello racetrack and the ability to provide capital improvements.
STATE OF NEW YORK
________________________________________________________________________
6039
2025-2026 Regular Sessions
IN ASSEMBLY
February 26, 2025
___________
Introduced by M. of A. WOERNER -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the tax law and the racing, pari-mutuel wagering and
breeding law, in relation to the Catskill off-track betting corpo-
ration providing licensing and financing to the Monticello racetrack
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 1 of subdivision a of section 1617-a of the tax
2 law, as amended by section 1 of part SS of chapter 60 of the laws of
3 2016, is amended to read as follows:
4 (1) Aqueduct, [Monticello,] Yonkers, Finger Lakes, and Vernon Downs
5 racetracks;
6 § 2. Paragraphs 3 and 4 of subdivision a of section 1617-a of the tax
7 law, paragraph 3 as amended by chapter 811 of the laws of 2022 and para-
8 graph 4 as added by section 1 of part SS of chapter 60 of the laws of
9 2016, are amended and a new paragraph 8 is added to read as follows:
10 (3) a maximum of two facilities, which shall be vendors for all
11 purposes under this article established within region three of zone one
12 as defined by section one thousand three hundred ten of the racing,
13 pari-mutuel wagering and breeding law, one each operated by a corpo-
14 ration established pursuant to section five hundred two of the racing,
15 pari-mutuel wagering and breeding law in the Suffolk region and the
16 Nassau region to be located within a facility authorized pursuant to
17 [sections] section one thousand eight or one thousand nine of the
18 racing, pari-mutuel wagering and breeding law, provided however, that in
19 the Nassau region such facility shall not exceed one thousand video
20 lottery gaming devices and in the Suffolk region such facility shall not
21 exceed two thousand video lottery gaming devices; [and]
22 (4) Aqueduct racetrack, within the lottery terminal facility, pursuant
23 to an agreement between the corporation established pursuant to section
24 five hundred two of the racing, pari-mutuel wagering and breeding law in
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09448-01-5
A. 6039 2
1 the Nassau region and the operator of video lottery gaming at Aqueduct
2 racetrack, when such agreement is approved by the gaming commission and
3 as long as such agreement is in place, and when such agreement is accom-
4 panied by a detailed spending plan for the corporation established
5 pursuant to section five hundred two of the racing, pari-mutuel wagering
6 and breeding law in the Nassau region, which includes a plan for the
7 timely payment of liabilities due to the franchised corporation, and
8 when such video lottery devices are hosted by the operator of video
9 lottery gaming at Aqueduct racetrack on behalf of the corporation estab-
10 lished pursuant to section five hundred two of the racing, pari-mutuel
11 wagering and breeding law in the Nassau region in lieu of the develop-
12 ment of a facility in Nassau county as authorized by paragraph three of
13 this subdivision [a of this section]. Such agreement reached by the
14 parties shall identify the agency principally responsible for funding,
15 approving or undertaking any actions of such agreement. Provided,
16 however, nothing in this paragraph shall infringe upon the rights of the
17 corporation established pursuant to section five hundred two of the
18 racing, pari-mutuel wagering and breeding law in the Nassau region to
19 develop a facility pursuant to paragraph three of this subdivision upon
20 the expiration, termination, or withdrawal of such agreement[.]; and
21 (8) a maximum of three facilities, which shall be vendors for all
22 purposes under this article, with a total of one thousand one hundred
23 ten video lottery gaming devices in the county of Broome, Chemung,
24 Chenango, Delaware, Orange, Rockland, Dutchess, Tompkins, Putnam or
25 Ulster and to be operated by a corporation established pursuant to
26 section five hundred two of the racing, pari-mutuel wagering and breed-
27 ing law, and located within a facility authorized pursuant to section
28 one thousand eight or one thousand nine of the racing, pari-mutuel
29 wagering and breeding law.
30 § 3. Paragraph 2 of subdivision b of section 1612 of the tax law, as
31 amended by section 2 of part S of chapter 39 of the laws of 2019, is
32 amended to read as follows:
33 2. As consideration for the operation of a video lottery gaming facil-
34 ity, the division, shall cause the investment in the racing industry of
35 a portion of the vendor fee received pursuant to paragraph one of this
36 subdivision in the manner set forth in this subdivision. With the
37 exception of Aqueduct racetrack, a video lottery gaming facility author-
38 ized pursuant to paragraph five of subdivision a of section sixteen
39 hundred seventeen-a of this article or a facility in the county of
40 Nassau or Suffolk operated by a corporation established pursuant to
41 section five hundred two of the racing, pari-mutuel wagering and breed-
42 ing law, each such track shall dedicate a portion of its vendor fees,
43 received pursuant to clause (A), (B), (B-1), (B-2), (C), or (D) of
44 subparagraph (ii) of paragraph one of this subdivision, for the purpose
45 of enhancing purses at such track, in an amount equal to eight and
46 three-quarters percent of the total revenue wagered at the vendor track
47 after pay out for prizes. Any video lottery gaming facility in the
48 Catskill region, as defined in section five hundred nineteen of the
49 racing, pari-mutuel wagering and breeding law and to be operated by a
50 corporation established pursuant to section five hundred two of the
51 racing, pari-mutuel wagering and breeding law, shall dedicate a portion
52 of its vendor fee for the purpose of enhancing purses at Monticello
53 racetrack in an amount equal to eight and three-quarters percent of the
54 total revenue wagered at the facility after pay out for prizes. One
55 percent of the gross purse enhancement amount, as required by this
56 subdivision, shall be paid to the gaming commission to be used exclu-
A. 6039 3
1 sively to promote and ensure equine health and safety in New York. Any
2 portion of such funding to the gaming commission unused during a fiscal
3 year shall be returned to the video lottery gaming operators on a pro
4 rata basis in accordance with the amounts originally contributed by each
5 operator and shall be used for the purpose of enhancing purses at such
6 track. One and one-half percent of the gross purse enhancement amount at
7 a thoroughbred track, as required by this subdivision, shall be paid to
8 an account established pursuant to section two hundred twenty-one-a of
9 the racing, pari-mutuel wagering and breeding law to be used exclusively
10 to provide health insurance for jockeys. In addition, with the exception
11 of Aqueduct racetrack, a video lottery gaming facility authorized pursu-
12 ant to paragraph five of subdivision a of section sixteen hundred seven-
13 teen-a of this article or a facility in the county of Nassau or Suffolk
14 operated by a corporation established pursuant to section five hundred
15 two of the racing, pari-mutuel wagering and breeding law, one and one-
16 quarter percent of total revenue wagered at the vendor track after pay
17 out for prizes, received pursuant to clause (A), (B), (B-1), (B-2), (C),
18 or (D) of subparagraph (ii) of paragraph one of this subdivision, shall
19 be distributed to the appropriate breeding fund for the manner of racing
20 conducted by such track.
21 Provided, further, that as additional consideration for the operation
22 of video lottery gaming facilities, the Catskill regional off-track
23 betting corporation shall maintain the same number of race dates at
24 Monticello racetrack being conducted at the time it receives a license
25 to conduct harness race meetings at such racetrack.
26 Provided, further, that nothing in this paragraph shall prevent each
27 track from entering into an agreement, not to exceed five years, with
28 the organization authorized to represent its horsemen to increase or
29 decrease the portion of its vendor fee dedicated to enhancing purses at
30 such track during the years of participation by such track, or to race
31 fewer dates than required herein.
32 § 4. Section 1612 of the tax law is amended by adding a new subdivi-
33 sion i to read as follows:
34 i. As consideration for operation of a video lottery gaming facility
35 located in the counties of Broome, Chemung, Chenango, Delaware, Orange,
36 Rockland, Dutchess, Tompkins, Putnam, or Ulster, and operated by a
37 corporation established pursuant to section five hundred two of the
38 racing, pari-mutuel wagering and breeding law, the division shall cause
39 the vendor's fee to be distributed as follows after the pay out of
40 racing support payments: (1) twenty percent shall be transferred to the
41 county in which the vendor facility is located; and (2) the remainder
42 shall be used for payment of the costs of the corporation's functions
43 pursuant to section five hundred sixteen of the racing, pari-mutuel
44 wagering and breeding law, and the net revenue remaining after payment
45 of such costs shall be divided among the participating counties listed
46 in this paragraph on the basis of population as defined in paragraph b
47 of subdivision two of section five hundred sixteen of the racing, pari-
48 mutuel wagering and breeding law.
49 § 5. Section 301 of the racing, pari-mutuel wagering and breeding law
50 is amended by adding a new subdivision 6 to read as follows:
51 6. The board shall have the power to issue licenses to the Catskill
52 regional off-track betting corporation or to a subsidiary of said corpo-
53 ration for the purpose of conducting harness race meetings at Monticello
54 racetrack and to make capital improvements to said track, provided that
55 such corporation meets the terms and conditions for licensure as
56 provided under this article. Notwithstanding the provisions of articles
A. 6039 4
1 five and five-A of this chapter, said corporation shall be deemed to be
2 a harness racing corporation with respect to pari-mutuel wagering
3 conducted at said track pursuant to this chapter, except that net reven-
4 ues derived from such pari-mutuel wagering shall be distributed among
5 the counties that participate in such corporation on the basis of popu-
6 lation, as defined as the total population in each participating county
7 shown by the latest preceding decennial federal census of the calendar
8 year in which such distribution is to be made.
9 § 6. The opening paragraph of subdivision 1 of section 527 of the
10 racing, pari-mutuel wagering and breeding law, as amended by chapter 243
11 of the laws of 2020, is amended to read as follows:
12 The disposition of the retained commission from pools resulting from
13 regular, multiple or exotic bets, as the case may be, whether placed on
14 races run within a region or outside a region, conducted by racing
15 corporations, harness racing associations or corporations, quarter horse
16 racing associations or corporations or races run outside the state shall
17 be governed by the tables in paragraphs a and b of this subdivision. The
18 rate denominated "state tax" shall represent the rate of a reasonable
19 tax imposed upon the retained commission for the privilege of conducting
20 off-track pari-mutuel betting, which tax is hereby levied and shall be
21 payable in the manner set forth in this section. Each off-track betting
22 corporation shall pay to the commission as a regulatory fee, which fee
23 is hereby levied, six-tenths of one percent of the total daily pools of
24 such corporation. Each corporation shall also pay twenty percent of the
25 breaks derived from bets on harness races and fifty percent of the
26 breaks derived from bets on all other races to the agriculture and New
27 York State horse breeding and development fund and to the thoroughbred
28 breeding and development fund, the total of such payments to be appor-
29 tioned fifty percent to each such fund. For the purposes of this
30 section, the New York city, Suffolk, Nassau, and the Catskill regions
31 shall constitute a single region and any thoroughbred track located
32 within the Capital District region shall be deemed to be within such
33 single region. A "regional meeting" shall refer to either harness or
34 thoroughbred meetings, or both, except that a franchised corporation
35 shall not be a regional track for the purpose of receiving distributions
36 from bets on thoroughbred races conducted by a thoroughbred track in the
37 Catskill region conducting a mixed meeting. With the exception of a
38 harness racing association or corporation first licensed to conduct
39 pari-mutuel wagering at a track located in Tioga, Saratoga, Sullivan or
40 Westchester county after January first, two thousand five, racing corpo-
41 rations first licensed to conduct pari-mutuel racing after January
42 first, nineteen hundred eighty-six or a harness racing association or
43 corporation first licensed to conduct pari-mutuel wagering at a track
44 located in Genesee County after January first, two thousand five, and
45 quarter horse tracks shall not be "regional tracks"; if there is more
46 than one harness track within a region, such tracks shall evenly divide
47 payments made pursuant to the tables in paragraphs a and b of this
48 subdivision when neither track is running. In the event a track elects
49 to reduce its retained percentage from any or all of its pari-mutuel
50 pools, the payments to the track holding the race and the regional track
51 required by paragraphs a and b of this subdivision shall be reduced in
52 proportion to such reduction. Nothing in this section shall be construed
53 to authorize the conduct of off-track betting contrary to the provisions
54 of section five hundred twenty-three of this article.
55 § 7. This act shall take effect on the thirtieth day after it shall
56 have become a law.
