Relates to wagers on certain horse racing events; authorizes agreements between a mobile sports wagering operator, mobile sports wagering licensee, or operator and an entity that possesses a license and that has the authority to conduct pari-mutuel wagering on the form of racing involved in the relevant horse racing event, involving wagers to be made solely by residents of the state of New York while located within New York, and subject to the approval of the commission.
STATE OF NEW YORK
________________________________________________________________________
8433
2025-2026 Regular Sessions
IN SENATE
June 11, 2025
___________
Introduced by Sen. ADDABBO -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to wagers on certain horse racing events and authorizing
agreements between a mobile sports wagering operator, mobile sports
wagering licensee, or operator and certain entities; and providing for
the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraphs (bb) and (cc) of subdivision 1 of section 1367
2 of the racing, pari-mutuel wagering and breeding law, as amended by
3 section 3 of part Y of chapter 59 of the laws of 2021, are amended and
4 two new paragraphs (dd) and (ee) are added to read as follows:
5 (bb) "Suspicious wagering activity" means unusual wagering activity
6 that cannot be explained and is indicative of match fixing, the manipu-
7 lation of an event, misuse of inside information, or other prohibited
8 activity; [and]
9 (cc) "Independent integrity monitor" means an independent individual
10 or entity approved by the commission to receive reports of unusual
11 wagering activity from a casino, mobile sports wagering licensee, or
12 commission for the purpose of assisting in identifying suspicious wager-
13 ing activity[.];
14 (dd) "Horse racing event" means any sport or athletic event conducted
15 in New York state subject to the provisions of article two, three, five,
16 nine, or ten of this chapter, as well as any sport or athletic event
17 conducted outside of New York state which would otherwise be subject to
18 the provisions of articles two, five, nine, or ten of this chapter.
19 "Horse racing event" shall not include harness races conducted outside
20 of New York state; and
21 (ee) "Fixed odds sports wagering agreement" means an agreement between
22 a mobile sports wagering operator, mobile sports wagering licensee, or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13379-01-5
S. 8433 2
1 operator and an entity that possesses a license awarded pursuant to
2 article two or three of this chapter that has the authority to conduct
3 pari-mutuel wagering on the form of racing involved in the relevant
4 horse racing event, involving wagers to be made solely by residents of
5 the state of New York while located within New York, and subject to the
6 approval of the commission.
7 § 2. Paragraph (s) of subdivision 1 of section 1367 of the racing,
8 pari-mutuel wagering and breeding law, as amended by section 3 of part Y
9 of chapter 59 of the laws of 2021, is amended to read as follows:
10 (s) "Prohibited sports event" means a sport or athletic event in which
11 any New York college team participates regardless of where the event
12 takes place, [or] a high school sport or athletic event, or a horse
13 racing event, unless such horse racing event is being offered pursuant
14 to a fixed odds sports wagering agreement, as defined in paragraph (ee)
15 of this subdivision. The following shall not be considered prohibited
16 sports events: (i) a collegiate tournament, and (ii) a sports event
17 within such tournament so long as no New York college team is partic-
18 ipating in that particular sports event;
19 § 3. Subdivision 2 of section 1367 of the racing, pari-mutuel wagering
20 and breeding law is amended by adding a new paragraph (e-1) to read as
21 follows:
22 (e-1)(i)(1) A mobile sports wagering operator, mobile sports wagering
23 licensee, or operator may accept a fixed odds wager on a horse racing
24 event if such mobile sports wagering operator, mobile sports wagering
25 licensee, or operator has entered into a fixed odds sports wagering
26 agreement with an entity that has the authority to provide the content
27 of such horse racing event pursuant to article two or three of this
28 chapter. In furtherance of any fixed odds sports wagering agreement, an
29 entity that holds a franchise or license pursuant to article two of this
30 chapter may only offer content involving thoroughbred races and an enti-
31 ty that holds a license pursuant to article three of this chapter may
32 only offer content involving standardbred races, except that an entity
33 that holds a license pursuant to article three of this chapter may
34 authorize an entity that holds a franchise or license pursuant to arti-
35 cle two of this chapter to negotiate on its behalf, subject to final
36 approval of the entity that holds a license pursuant to article three of
37 this chapter. Any fixed odds sports wagering agreement with an entity
38 that has the authority to provide the content of a horse racing event
39 shall require the approval of the applicable horsemen's association.
40 (2) All fixed odds sports wagering agreements must be approved by the
41 commission prior to taking effect. Any content offered pursuant to an
42 approved fixed odds sports wagering agreement shall subsequently be made
43 available to any interested mobile sports wagering operator, mobile
44 sports wagering licensee, or operator on commercially reasonable terms,
45 as determined by the commission.
46 (ii) Any holder of a pari-mutuel wagering franchise or license pursu-
47 ant to article two or three of this chapter that enters into a fixed
48 odds sports wagering agreement shall: (1) make a copy of such sports
49 wagering agreement available to the applicable horsemen's association;
50 and (2) separately maintain an agreement with the applicable horsemen's
51 association, setting forth the type of wagers that may be placed on a
52 horse racing event and on which horse racing events wagers may be
53 placed.
54 (iii)(1) Notwithstanding any provision of law, rule, or regulation to
55 the contrary, any and all payments made by a mobile sports wagering
56 operator, mobile sports wagering licensee, or operator pursuant to any
S. 8433 3
1 fixed odds sports wagering agreement as defined in paragraph (ee) of
2 subdivision one of this section, shall be allocated in the following
3 amounts for any amount generated during a calendar year: two-thirds to
4 the thoroughbred industry and the remaining one-third to harness racing
5 associations and corporations. For purposes of this paragraph, payments
6 made pursuant to a fixed odds sports wagering agreement shall include
7 wagering revenue, signing or other start-up fees, exclusivity fees,
8 market go live fees, and any other horse racing content fees, but shall
9 not include any revenue generated for sponsorships or other payments
10 unrelated to the terms of a fixed odds sports wagering agreement, as
11 defined in subdivision one of this section.
12 (2) a. Of the payments allocated to the thoroughbred industry, five-
13 sixths shall be allocated to the franchised corporation and one-sixth
14 shall be allocated to a thoroughbred racing association. Of those funds,
15 payment of an amount equal to forty-three percent of the allocated
16 payment shall be paid into an account for enhancing purses at such
17 racing association or corporation or franchised corporation, and seven
18 percent shall be contributed to the New York state thoroughbred breeding
19 and development fund corporation established pursuant to section two
20 hundred fifty-two of this chapter.
21 b. Of the payments allocated to the harness racing associations and
22 corporations, payment of an amount equal to forty-three percent of the
23 allocated payment shall be paid into an account for enhancing purses at
24 such racing associations or corporations, and seven percent shall be
25 contributed to the agriculture and New York state horse breeding devel-
26 opment fund established pursuant to section three hundred thirty of this
27 chapter. The remaining forty-three percent to be allocated for enhancing
28 purses and the remaining fifty percent of the funds allocated for
29 harness racing associations and corporations, shall be allocated to
30 individual harness racing associations and corporations based on a ratio
31 where the numerator is the association's or corporation's total in-state
32 handle on live racing for the previous calendar year as calculated by
33 the commission and the denominator is the total in-state on live handle
34 for all harness racing associations and corporations for the previous
35 calendar year as calculated by the commission.
36 (3) In order to ensure appropriate distribution by and among the
37 tracks, each holder of a pari-mutuel wagering franchise or license
38 pursuant to article two or three of this chapter that enters into a
39 fixed odds sports wagering agreement shall notify each other thorough-
40 bred and harness track on or prior to the twentieth day of each month,
41 of any and all payments made by a mobile sports wagering operator,
42 mobile sports wagering licensee, or operator pursuant to any fixed odds
43 sports wagering agreement, including but not limited to horse racing
44 content fees, generated during the prior month.
45 § 4. This act shall take effect April 1, 2026 and shall expire March
46 31, 2029 when upon such date the provisions of this act shall be deemed
47 repealed.
