STATE OF NEW YORK
________________________________________________________________________
S. 5883 A. 8101
2013-2014 Regular Sessions
SENATE - ASSEMBLY
June 18, 2013
___________
IN SENATE -- Introduced by Sen. BONACIC -- (at request of the Governor)
-- read twice and ordered printed, and when printed to be committed to
the Committee on Rules
IN ASSEMBLY -- Introduced by M. of A. PRETLOW, GUNTHER -- (at request of
the Governor) -- read once and referred to the Committee on Racing and
Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, the
penal law and the state finance law, in relation to commercial gaming;
to amend the executive law, the state finance law and the Indian law,
in relation to authorizing the settlement of disputes between the
Oneida Nation of New York, the state, Oneida county and Madison coun-
ty; to amend the Indian law and the tax law, in relation to identify-
ing nations and tribes; to amend the tax law and the state finance
law, in relation to video lottery gaming; to amend part HH of chapter
57 of the laws of 2013 relating to providing for the administration of
certain funds and accounts related to the 2013-14 budget, in relation
to the commercial gaming revenue fund; to amend chapter 50 of the laws
of 2013 enacting the state operations budget, in relation to commer-
cial gaming revenues; to amend the racing, pari-mutual wagering and
breeding law, in relation to directing the state gaming commission to
annually evaluate video lottery gaming; to amend the racing, pari-mu-
tuel wagering and breeding law and the state finance law, in relation
to account wagering on simulcast horse races; to repeal section 11 of
the executive law relating to fuel and energy shortage state of emer-
gency; and to repeal clause (G) of subparagraph (ii) of paragraph 1 of
subdivision b of section 1612 of the tax law relating to vendor's fees
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "upstate
2 New York gaming economic development act of 2013."
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD12052-02-3
S. 5883 2 A. 8101
1 § 2. The racing, pari-mutuel wagering and breeding law is amended by
2 adding a new article 13 to read as follows:
3 ARTICLE 13
4 DESTINATION RESORT GAMING
5 Title 1. General provisions
6 2. Facility determination and licensing
7 3. Occupational licensing
8 4. Enterprise and vendor licensing and registration
9 5. Requirements for conduct and operation of gaming
10 6. Taxation and fees
11 7. Problem gambling
12 8. Miscellaneous provisions
13 9. Gaming inspector general
14 TITLE 1
15 GENERAL PROVISIONS
16 Section 1300. Legislative findings and purpose.
17 1301. Definitions.
18 1302. Auditing duties of the commission.
19 1303. Equipment testing.
20 1304. Commission reporting.
21 1305. Supplemental power of the commission.
22 1306. Powers of the board.
23 1307. Required regulations.
24 1308. Reports and recommendations.
25 1309. Severability and preemption.
26 § 1300. Legislative findings and purpose. The legislature hereby
27 finds and declares that:
28 1. New York state is already in the business of gambling with nine
29 video lottery facilities, five tribal class III casinos, and three
30 tribal class II facilities;
31 2. New York state has more electronic gaming machines than any state
32 in the Northeast or Mideast;
33 3. While gambling already exists throughout the state, the state does
34 not fully capitalize on the economic development potential of legalized
35 gambling;
36 4. The state should authorize four destination resort casinos in
37 upstate New York;
38 5. Four upstate casinos can boost economic development, create thou-
39 sands of well-paying jobs and provide added revenue to the state;
40 6. The upstate tourism industry constitutes a critical component of
41 our state's economic infrastructure and that four upstate casinos will
42 attract non-New York residents and bring downstate New Yorkers to
43 upstate;
44 7. The casino sites and the licensed owners shall be selected on
45 merit;
46 8. Local impact of the casino sites will be considered in the casino
47 evaluation process;
48 9. Tribes whose gaming compacts are in good standing with the state
49 will have their geographic exclusivity protected by this article;
50 10. Revenue realized from casinos shall be utilized to increase
51 support for education beyond that of the state's education formulae and
52 to provide real property tax relief to localities;
53 11. Casinos will be tightly and strictly regulated by the commission
54 to guarantee public confidence and trust in the credibility and integri-
55 ty of all casino gambling in the state and to prevent organized crime
56 from any involvement in the casino industry;
S. 5883 3 A. 8101
1 12. The need for strict state controls extends to regulation of all
2 persons, locations, practices and associations related to the operation
3 of licensed enterprises and all related service industries as provided
4 in this article;
5 13. The state and the casinos will develop programs and resources to
6 combat compulsive and problem gambling;
7 14. The state will ensure that host municipalities of casinos are
8 provided with funding to limit any potential adverse impacts of casinos;
9 15. Political contributions from the casino industry will be minimized
10 to reduce the potential of political corruption from casinos; and
11 16. As thoroughly and pervasively regulated by the state, four upstate
12 casinos will work to the betterment of all New York.
13 § 1301. Definitions. As used in this article the following terms
14 shall, unless the context clearly requires otherwise, have the following
15 meanings:
16 1. "Affiliate". A person that directly or indirectly, through one or
17 more intermediaries, controls or is controlled by, or is under common
18 control with, a specified person.
19 2. "Applicant". Any person who on his or her own behalf or on behalf
20 of another has applied for permission to engage in any act or activity
21 which is regulated under the provisions of this article.
22 3. "Application". A written request for permission to engage in any
23 act or activity which is regulated under the provisions of this article.
24 4. "Authorized game". Any game determined by the commission to be
25 compatible with the public interest and to be suitable for casino use
26 after such appropriate test or experimental period as the commission may
27 deem appropriate. An authorized game may include gaming tournaments in
28 which players compete against one another in one or more of the games
29 authorized herein or by the commission or in approved variations or
30 composites thereof if the tournaments are authorized.
31 5. "Board". The New York state gaming facility location board estab-
32 lished by the commission pursuant to section one hundred nine-a of this
33 chapter.
34 6. "Business". A corporation, sole proprietorship, partnership, limit-
35 ed liability company or any other organization formed for the purpose of
36 carrying on a commercial enterprise.
37 7. "Casino". One or more locations or rooms in a gaming facility that
38 have been approved by the commission for the conduct of gaming in
39 accordance with the provisions of this article.
40 8. "Casino key employee". Any natural person employed by a gaming
41 facility licensee, or holding or intermediary company of a gaming facil-
42 ity licensee, and involved in the operation of a licensed gaming facili-
43 ty in a supervisory capacity and empowered to make discretionary deci-
44 sions which regulate gaming facility operations; or any other employee
45 so designated by the commission for reasons consistent with the policies
46 of this article.
47 9. "Casino vendor enterprise". Any vendor offering goods or services
48 which directly relate to casino or gaming activity, or any vendor
49 providing to gaming facility licensees or applicants goods and services
50 ancillary to gaming activity. Notwithstanding the foregoing, any form of
51 enterprise engaged in the manufacture, sale, distribution, testing or
52 repair of slot machines within the state, other than antique slot
53 machines, shall be considered a casino vendor enterprise for the
54 purposes of this article regardless of the nature of its business
55 relationship, if any, with gaming facility applicants and licensees in
56 this state.
S. 5883 4 A. 8101
1 10. "Close associate". A person who holds a relevant financial inter-
2 est in, or is entitled to exercise power in, the business of an appli-
3 cant or licensee and, by virtue of that interest or power, is able to
4 exercise a significant influence over the management or operation of a
5 gaming facility or business licensed under this article.
6 11. "Commission". The New York state gaming commission.
7 12. "Complimentary service or item". A service or item provided at no
8 cost or at a reduced cost to a patron of a gaming facility.
9 13. "Conservator". A person appointed by the commission to temporarily
10 manage the operation of a gaming facility.
11 14. "Credit card". A card, code or other device with which a person
12 may defer payment of debt, incur debt and defer its payment, or purchase
13 property or services and defer payment therefor, but not a card, code or
14 other device used to activate a preexisting agreement between a person
15 and a financial institution to extend credit when the person's account
16 at the financial institution is overdrawn or to maintain a specified
17 minimum balance in the person's account at the financial institution.
18 15. "Debt". Any legal liability, whether matured or unmatured, liqui-
19 dated or unliquidated, absolute, fixed or contingent, including debt
20 convertible into an equity security which has not yet been so converted,
21 and any other debt carrying any warrant or right to subscribe to or
22 purchase an equity security which warrant or right has not yet been
23 exercised.
24 16. "Encumbrance". A mortgage, security interest, lien or charge of
25 any nature in or upon property.
26 17. "Executive director". The executive director of the New York state
27 gaming commission.
28 18. "Family". Spouse, domestic partner, partner in a civil union,
29 parents, grandparents, children, grandchildren, siblings, uncles, aunts,
30 nephews, nieces, fathers-in-law, mothers-in-law, daughters-in-law, sons-
31 in-law, brothers-in-law and sisters-in-law, whether by the whole or half
32 blood, by marriage, adoption or natural relationship.
33 19. "Game". Any banking or percentage game located within the gaming
34 facility played with cards, dice, tiles, dominoes, or any electronic,
35 electrical, or mechanical device or machine for money, property, or any
36 representative of value which has been approved by the commission.
37 20. "Gaming" or "gambling". The dealing, operating, carrying on,
38 conducting, maintaining or exposing for pay of any game.
39 21. "Gaming device" or "gaming equipment". Any electronic, electrical,
40 or mechanical contrivance or machine used in connection with gaming or
41 any game.
42 22. "Gaming employee". Any natural person, not otherwise included in
43 the definition of casino key employee, who is employed by a gaming
44 facility licensee, or a holding or intermediary company of a gaming
45 facility licensee, and is involved in the operation of a licensed gaming
46 facility or performs services or duties in a gaming facility or a
47 restricted casino area; or any other natural person whose employment
48 duties predominantly involve the maintenance or operation of gaming
49 activity or equipment and assets associated therewith or who, in the
50 judgment of the commission, is so regularly required to work in a
51 restricted casino area that registration as a gaming employee is appro-
52 priate.
53 23. "Gaming facility". The premises approved under a gaming license
54 which includes a gaming area and any other nongaming structure related
55 to the gaming area and may include, but shall not be limited to, hotels,
56 restaurants or other amenities.
S. 5883 5 A. 8101
1 24. "Gaming facility license". Any license issued pursuant to this
2 article which authorizes the holder thereof to own or operate a gaming
3 facility.
4 25. "Gross gaming revenue". The total of all sums actually received by
5 a gaming facility licensee from gaming operations less the total of all
6 sums paid out as winnings to patrons; provided, however, that the total
7 of all sums paid out as winnings to patrons shall not include the cash
8 equivalent value of any merchandise or thing of value included in a
9 jackpot or payout; provided further, that the issuance to or wagering by
10 patrons of a gaming facility of any promotional gaming credit shall not
11 be taxable for the purposes of determining gross revenue.
12 26. "Holding company". A corporation, association, firm, partnership,
13 trust or other form of business organization, other than a natural
14 person, which, directly or indirectly, owns, has the power or right to
15 control, or has the power to vote any significant part of the outstand-
16 ing voting securities of a corporation or any other form of business
17 organization which holds or applies for a gaming license; provided,
18 however, that a "holding company", in addition to any other reasonable
19 use of the term, shall indirectly have, hold or own any such power,
20 right or security if it does so through an interest in a subsidiary or
21 any successive subsidiaries, notwithstanding how many such subsidiaries
22 may intervene between the holding company and the gaming facility licen-
23 see or applicant.
24 27. "Host municipality". A city, town or village in which a gaming
25 facility is located or in which an applicant has proposed locating a
26 gaming facility.
27 28. "Intermediary company". A corporation, association, firm, partner-
28 ship, trust or other form of business organization, other than a natural
29 person, which is a holding company with respect to a corporation or
30 other form of business organization which holds or applies for a gaming
31 license, and is a subsidiary with respect to a holding company.
32 29. "Junket". An arrangement intended to induce a person to come to a
33 gaming facility to gamble, where the person is selected or approved for
34 participation on the basis of the person's ability to satisfy a finan-
35 cial qualification obligation related to the person's ability or will-
36 ingness to gamble or on any other basis related to the person's propen-
37 sity to gamble and pursuant to which and as consideration for which, any
38 of the cost of transportation, food, lodging, and entertainment for the
39 person is directly or indirectly paid by a gaming facility licensee or
40 an affiliate of the gaming facility licensee.
41 30. "Junket enterprise". A person, other than a gaming facility licen-
42 see or an applicant for a gaming facility license, who employs or other-
43 wise engages the services of a junket representative in connection with
44 a junket to a licensed gaming facility, regardless of whether or not
45 those activities occur within the state.
46 31. "Junket representative". A person who negotiates the terms of, or
47 engages in the referral, procurement or selection of persons who may
48 participate in, a junket to a gaming facility, regardless of whether or
49 not those activities occur within the state.
50 32. "Operation certificate". A certificate issued by the commission
51 which certifies that operation of a gaming facility conforms to the
52 requirements of this article and applicable regulations and that its
53 personnel and procedures are sufficient and prepared to entertain the
54 public.
S. 5883 6 A. 8101
1 33. "Person". Any corporation, association, operation, firm, partner-
2 ship, trust or other form of business association, as well as a natural
3 person.
4 34. "Registration". Any requirement other than one which requires a
5 license as a prerequisite to conduct a particular business as specified
6 by this article.
7 35. "Registrant". Any person who is registered pursuant to the
8 provisions of this article.
9 36. "Restricted casino areas". The cashier's cage, the soft count
10 room, the hard count room, the slot cage booths and runway areas, the
11 interior of table game pits, the surveillance room and catwalk areas,
12 the slot machine repair room and any other area specifically designated
13 by the commission as restricted in a licensee's operation certificate.
14 37. "Qualification" or "qualified". The process of licensure set forth
15 by the commission to determine that all persons who have a professional
16 interest in a gaming facility license, or casino vendor enterprise
17 license, or the business of a gaming facility licensee or gaming vendor,
18 meet the same standards of suitability to operate or conduct business
19 with a gaming facility.
20 38. "Slot machine". A mechanical, electrical or other device, contri-
21 vance or machine which, upon insertion of a coin, token or similar
22 object therein, or upon payment of any consideration whatsoever, is
23 available to play or operate, the play or operation of which, whether by
24 reason of the skill of the operator or application of the element of
25 chance, or both, may deliver or entitle the individual playing or oper-
26 ating the machine to receive cash, or tokens to be exchanged for cash,
27 or to receive merchandise or any other thing of value, whether the
28 payoff is made automatically from the machine or in any other manner,
29 except that the cash equivalent value of any merchandise or other thing
30 of value shall not be included in determining the payout percentage of a
31 slot machine.
32 39. "Sports wagering". The activity authorized by section one thousand
33 three hundred sixty-seven of this article, provided that there has been
34 a change in federal law authorizing such activity or upon ruling of a
35 court of competent jurisdiction that such activity is lawful.
36 40. "Subsidiary". A corporation, a significant part of whose outstand-
37 ing equity securities are owned, subject to a power or right of control,
38 or held with power to vote, by a holding company or an intermediary
39 company, or a significant interest in a firm, association, partnership,
40 trust or other form of business organization, other than a natural
41 person, which is owned, subject to a power or right of control, or held
42 with power to vote, by a holding company or an intermediary company.
43 41. "Table game". A game, other than a slot machine, which is author-
44 ized by the commission to be played in a gaming facility.
45 42. "Transfer". The sale or other method, either directly or indirect-
46 ly, of disposing of or parting with property or an interest therein, or
47 the possession thereof, or of fixing a lien upon property or upon an
48 interest therein, absolutely or conditionally, voluntarily or involun-
49 tarily, by or without judicial proceedings, as a conveyance, sale,
50 payment, pledge, mortgage, lien, encumbrance, gift, security or other-
51 wise; provided, however, that the retention of a security interest in
52 property delivered to a corporation shall be deemed a transfer suffered
53 by such corporation.
54 § 1302. Auditing duties of the commission. The commission shall audit
55 as often as the commission determines necessary, but not less than annu-
56 ally, the accounts, programs, activities, and functions of all gaming
S. 5883 7 A. 8101
1 facility licensees, including the audit of payments made pursuant to
2 section one thousand three hundred fifty-one of this chapter. To
3 conduct the audit, authorized officers and employees of the commission
4 shall have access to such accounts at reasonable times and the commis-
5 sion may require the production of books, documents, vouchers and other
6 records relating to any matter within the scope of the audit. All audits
7 shall be conducted in accordance with generally accepted auditing stand-
8 ards established by the American Institute of Certified Public Account-
9 ants. In any audit report of the accounts, funds, programs, activities
10 and functions of a gaming facility licensee issued by the commission
11 containing adverse or critical audit results, the commission may require
12 a response, in writing, to the audit results. The response shall be
13 forwarded to the commission within fifteen days of notification by the
14 commission.
15 § 1303. Equipment testing. Unless the commission otherwise determines
16 it to be in the best interests of the state, the commission shall
17 utilize the services of an independent testing laboratory that has been
18 qualified and approved by the commission pursuant to this article to
19 perform the testing of slot machines and other gaming equipment and may
20 also utilize applicable data from the independent testing laboratory, or
21 from a governmental agency of a state other than New York, authorized to
22 regulate slot machines and other gaming equipment.
23 § 1304. Commission reporting. The commission shall report monthly to
24 the governor, the senate and the assembly, the senate finance committee
25 and the assembly ways and means committee, and the chairs of the senate
26 racing, gaming and wagering committee and the assembly racing and wager-
27 ing committee on economic development and emerging technologies on the
28 total gaming revenues, prize disbursements and other expenses for the
29 preceding month and shall make an annual report to the same recipients
30 which shall include a full and complete statement of gaming revenues,
31 prize disbursements and other expenses, including such recommendations
32 as the commission considers necessary or advisable. The commission shall
33 also report immediately to the aforementioned on any matter which
34 requires immediate changes in the laws in order to prevent abuses or
35 evasions of the laws, rules or regulations related to gaming or to
36 rectify undesirable conditions in connection with the administration or
37 operation of gaming in the state.
38 § 1305. Supplemental power of the commission. The commission shall
39 have all powers necessary or convenient to carry out and effectuate its
40 purposes including, but not limited to, the power to:
41 1. execute all instruments necessary or convenient for accomplishing
42 the purposes of this article;
43 2. enter into agreements or other transactions with a person, includ-
44 ing, but not limited to, a public entity or other governmental instru-
45 mentality or authority in connection with its powers and duties under
46 this article;
47 3. require an applicant for a position which requires a license under
48 this article to apply for such license and approve or disapprove any
49 such application or other transactions, events and processes as provided
50 in this article;
51 4. require a person who has a business association of any kind with a
52 gaming licensee or applicant to be qualified for licensure under this
53 article;
54 5. determine a suitable debt-to-equity ratio for applicants for a
55 gaming license;
S. 5883 8 A. 8101
1 6. deny an application or limit, condition, restrict, revoke or
2 suspend a license, registration, finding of suitability or approval, or
3 fine a person licensed, registered, found suitable or approved for any
4 cause that the commission deems reasonable;
5 7. monitor the conduct of licensees and other persons having a materi-
6 al involvement, directly or indirectly, with a licensee for the purpose
7 of ensuring that licenses are not issued to or held by and that there is
8 no direct or indirect material involvement with a licensee, by an
9 unqualified or unsuitable person or by a person whose operations are
10 conducted in an unsuitable manner or in unsuitable or prohibited places
11 as provided in this article;
12 8. gather facts and information applicable to the commission's obli-
13 gation to issue, suspend or revoke licenses, work permits or registra-
14 tions for:
15 (a) a violation of this article or any regulation adopted by the
16 commission;
17 (b) willfully violating an order of the commission directed to a
18 licensee;
19 (c) the conviction of certain criminal offenses; or
20 (d) the violation of any other offense which would disqualify such a
21 licensee from holding a license, work permit or registration;
22 9. conduct investigations into the qualifications of any regulated
23 entity and all applicants for licensure;
24 10. request and receive from the division of criminal justice services
25 and the federal bureau of investigation, criminal history information as
26 defined in paragraph (c) of subdivision one of section eight hundred
27 forty-five-b of the executive law for the purpose of evaluating appli-
28 cants for employment by any regulated entity, and evaluating licensees
29 and applicants for licensure under this article;
30 11. be present, through its agents, at all times, in a gaming facility
31 for the purposes of:
32 (a) certifying revenue;
33 (b) receiving complaints from the public relating to the conduct of
34 gaming and wagering operations;
35 (c) examining records of revenues and procedures and inspecting and
36 auditing all books, documents and records of licensees;
37 (d) conducting periodic reviews of operations and facilities for the
38 purpose of regulations adopted hereunder; and
39 (e) exercising its oversight responsibilities with respect to gaming;
40 12. inspect and have access to all equipment and supplies in a gaming
41 facility or on premises where gaming equipment is manufactured, sold or
42 distributed;
43 13. seize and remove from the premises of a gaming licensee and
44 impound any equipment, supplies, documents and records for the purpose
45 of examination and inspection;
46 14. demand access to and inspect, examine, photocopy and audit all
47 papers, books and records of any affiliate of a gaming licensee or
48 gaming vendor whom the commission suspects is involved in the financing,
49 operation or management of the gaming licensee or gaming vendor;
50 provided, however, that the inspection, examination, photocopying and
51 audit may take place on the affiliate's premises or elsewhere as practi-
52 cable and in the presence of the affiliate or its agent;
53 15. require that the books and financial or other records or state-
54 ments of a gaming licensee or gaming vendor be kept in a manner that the
55 commission considers proper;
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1 16. levy and collect assessments, fees, fines and interest and impose
2 penalties and sanctions as authorized by law for a violation of this
3 article or any regulations promulgated by the commission;
4 17. collect taxes, fees and interest under this article;
5 18. restrict, suspend or revoke licenses issued under this article;
6 19. refer cases for criminal prosecution to the appropriate federal,
7 state or local authorities;
8 20. adopt, amend or repeal regulations for the implementation, admin-
9 istration and enforcement of this article; and
10 21. determine a suitable duration for each license, registration or
11 finding of suitability or approval.
12 § 1306. Powers of the board. The New York state resort gaming facility
13 location board shall select, following a competitive process and subject
14 to the restrictions of this article, no more than four entities to apply
15 to the commission for gaming facility licenses. In exercising its
16 authority, the board shall have all powers necessary or convenient to
17 fully carry out and effectuate its purposes including, but not limited
18 to, the following powers. The board shall:
19 1. issue a request for applications for zone two gaming facility
20 licenses pursuant to section one thousand three hundred twelve of this
21 article;
22 2. assist the commission in prescribing the form of the application
23 for zone two gaming facility licenses including information to be
24 furnished by an applicant concerning an applicant's antecedents, habits,
25 character, associates, criminal record, business activities and finan-
26 cial affairs, past or present pursuant to section one thousand three
27 hundred thirteen of this article;
28 3. develop criteria, in addition to those outlined in this article, to
29 assess which applications provide the highest and best value to the
30 state, the zone and the region in which a gaming facility is to be
31 located;
32 4. determine a gaming facility license fee to be paid by an applicant;
33 5. determine, from time to time, whether tribal-state gaming compacts
34 are in or remain in good standing for the purposes of determining wheth-
35 er a gaming facility may be located in areas designated by subdivision
36 two of section one thousand three hundred eleven of this article;
37 6. determine, with the assistance of the commission, the sources and
38 total amount of an applicant's proposed capitalization to develop,
39 construct, maintain and operate a proposed gaming facility license under
40 this article;
41 7. have the authority to conduct investigative hearings concerning the
42 conduct of gaming and gaming operations in accordance with any proce-
43 dures set forth in this article and any applicable implementing regu-
44 lations;
45 8. issue detailed findings of facts and conclusions demonstrating the
46 reasons supporting its decisions to select applicants for commission
47 licensure;
48 9. report annually to the governor, the speaker of the assembly and
49 the temporary president of the senate, its proceedings for the preceding
50 calendar year and any suggestions and recommendations as it shall deem
51 desirable;
52 10. promulgate any rules and regulations that it deems necessary to
53 carry out its responsibilities;
54 11. have the power to administer oaths and examine witnesses; and
55 request and receive criminal history information as defined in paragraph
56 (c) of subdivision one of section eight hundred forty-five-b of the
S. 5883 10 A. 8101
1 executive law of the division of criminal justice services, pursuant to
2 subdivision eight-a of section eight hundred thirty-seven of the execu-
3 tive law, in connection with executing the responsibilities of the board
4 relating to licensing including fingerprinting, criminal history infor-
5 mation and background investigations, of entities applying for a gaming
6 facility license. At the request of the board, the division of criminal
7 justice services shall submit a fingerprint card, along with the
8 subject's processing fee, to the federal bureau of investigation for the
9 purpose of conducting a criminal history search and returning a report
10 thereon. The board shall also be entitled to request and receive, pursu-
11 ant to a written memorandum of understanding filed with the department
12 of state, any information in the possession of the state attorney gener-
13 al relating to the investigation of organized crime, gaming offenses,
14 other revenue crimes or tax evasion. Provided however, the attorney
15 general may withhold any information that (a) would identify a confiden-
16 tial source or disclose confidential information relating to a criminal
17 investigation, (b) would interfere with law enforcement investigations
18 or judicial proceedings, (c) reveal criminal investigative techniques or
19 procedures, that, if disclosed, could endanger the life or safety of any
20 person, or (d) constitutes records received from other state, local or
21 federal agencies that the attorney general is prohibited by law, regu-
22 lation or agreement from disclosing.
23 § 1307. Required regulations. 1. The commission is authorized:
24 (a) to adopt, amend or repeal such regulations, consistent with the
25 policy and objectives of this article, as amended and supplemented, as
26 it may deem necessary to protect the public interest in carrying out the
27 provisions of this article; and
28 (b) to adopt, amend or repeal such regulations as may be necessary for
29 the conduct of hearings before the commission and for the matters within
30 all other responsibilities and duties of the commission imposed by this
31 article.
32 2. The commission shall, without limitation, include the following
33 specific provisions in its regulations in accordance with the provisions
34 of this article:
35 (a) prescribing the methods and forms of application and registration
36 which any applicant or registrant shall follow and complete;
37 (b) prescribing the methods, procedures and form for delivery of
38 information concerning any person's family, habits, character, associ-
39 ates, criminal record, business activities and financial affairs;
40 (c) prescribing such procedures for the fingerprinting of an appli-
41 cant, employee of a licensee, or registrant, and methods of identifica-
42 tion which may be necessary to accomplish effective enforcement of
43 restrictions on access to the casino and other restricted casino areas
44 of the gaming facility;
45 (d) prescribing the method of notice to an applicant, registrant or
46 licensee concerning the release of any information or data provided to
47 the commission by such applicant, registrant or licensee;
48 (e) prescribing the manner and procedure of all hearings conducted by
49 the commission or any presiding officer;
50 (f) prescribing the manner and method of collection of payments of
51 taxes, fees, interest and penalties;
52 (g) defining and limiting the areas of operation, the rules of author-
53 ized games, odds, and devices permitted, and the method of operation of
54 such games and devices;
55 (h) regulating the practice and procedures for negotiable transactions
56 involving patrons, including limitations on the circumstances and
S. 5883 11 A. 8101
1 amounts of such transactions, and the establishment of forms and proce-
2 dures for negotiable instrument transactions, redemptions, and consol-
3 idations;
4 (i) prescribing grounds and procedures for the revocation or suspen-
5 sion of operating certificates, licenses and registrations;
6 (j) governing the manufacture, distribution, sale, deployment, and
7 servicing of gaming devices and equipment;
8 (k) prescribing for gaming operations the procedures, forms and meth-
9 ods of management controls, including employee and supervisory tables of
10 organization and responsibility, and minimum security and surveillance
11 standards, including security personnel structure, alarm and other elec-
12 trical or visual security measures; provided, however, that the commis-
13 sion shall grant an applicant broad discretion concerning the organiza-
14 tion and responsibilities of management personnel who are not directly
15 involved in the supervision of gaming operations;
16 (l) prescribing the qualifications of, and the conditions pursuant to
17 which, engineers, accountants, and others shall be permitted to practice
18 before the commission or to submit materials on behalf of any applicant
19 or licensee;
20 (m) prescribing minimum procedures for the exercise of effective
21 control over the internal fiscal affairs of a licensee, including
22 provisions for the safeguarding of assets and revenues, the recording of
23 cash and evidence of indebtedness, and the maintenance of reliable
24 records, accounts, and reports of transactions, operations and events,
25 including reports to the commission;
26 (n) providing for a minimum uniform standard of accountancy methods,
27 procedures and forms; a uniform code of accounts and accounting classi-
28 fications; and such other standard operating procedures, as may be
29 necessary to assure consistency, comparability, and effective disclosure
30 of all financial information, including calculations of percentages of
31 profit by games, tables, gaming devices and slot machines;
32 (o) requiring quarterly financial reports and the form thereof, and an
33 annual audit prepared by a certified public accountant licensed to do
34 business in this state, attesting to the financial condition of a licen-
35 see and disclosing whether the accounts, records and control procedures
36 examined are maintained by the licensee as required by this article and
37 the regulations promulgated hereunder;
38 (p) governing the gaming-related advertising of licensees, their
39 employees and agents, with the view toward assuring that such advertise-
40 ments are not deceptive; and
41 (q) governing the distribution and consumption of alcoholic beverages
42 on the premises of the licensee.
43 3. The commission shall, in its regulations, prescribe the manner and
44 procedure of all hearings conducted by the commission.
45 § 1308. Reports and recommendations. The commission shall carry on a
46 continuous study of the operation and administration of casino control
47 laws which may be in effect in other jurisdictions, literature on this
48 subject which may from time to time become available, and federal laws
49 which may affect the operation of casino gaming in this state. It shall
50 be responsible for ascertaining any defects in this article or in the
51 rules and regulations issued thereunder, formulating recommendations for
52 changes in this article. The commission shall make available to the
53 governor and the legislature within its annual report an accounting of
54 all revenues, expenses and disbursements, a review of its licensing and
55 enforcement activities conducted pursuant to section one thousand three
56 hundred forty of this article and shall include therein such recommenda-
S. 5883 12 A. 8101
1 tions for changes in this article as the commission deems necessary or
2 desirable.
3 § 1309. Severability and preemption. 1. If any clause, sentence,
4 subparagraph, paragraph, subdivision, section, article or other portion
5 of this article or the application thereof to any person or circum-
6 stances shall be held to be invalid, such holding shall not affect,
7 impair or invalidate the remainder of this article or the application of
8 such portion held invalid to any other person or circumstances, but
9 shall be confined in its operation to the clause, sentence, paragraph,
10 subparagraph, subdivision, section, article or other portion thereof
11 directly involved in such holding or to the person or circumstance ther-
12 ein involved.
13 2. If any provision of this article is inconsistent with, in conflict
14 with, or contrary to any other provision of law, such provision of this
15 article shall prevail over such other provision and such other provision
16 shall be deemed to be superseded to the extent of such inconsistency or
17 conflict. Notwithstanding the provisions of any other law to the contra-
18 ry, no local government unit of this state may enact or enforce any
19 ordinance or resolution conflicting with any provision of this article
20 or with any policy of this state expressed or implied herein, whether by
21 exclusion or inclusion. The commission shall have exclusive jurisdiction
22 over all matters delegated to it or within the scope of its powers under
23 the provisions of this article.
24 TITLE 2
25 FACILITY DETERMINATION AND LICENSING
26 Section 1310. Development zones and regions.
27 1311. License authorization; restrictions.
28 1312. Requests for applications.
29 1313. Form of application.
30 1314. License applicant eligibility.
31 1315. Required capital investment.
32 1316. Minimum license thresholds.
33 1317. Investigation of license applicants.
34 1318. Disqualifying criteria.
35 1319. Investigative hearings.
36 1320. Siting evaluation.
37 1321. Intentionally omitted.
38 § 1310. Development zones and regions. 1. There are hereby created
39 two development zones to be known as the zone one and zone two. Zone one
40 shall include the city of New York and the counties of Nassau, Putnam,
41 Rockland, Suffolk and Westchester. Zone two shall include all the other
42 counties of the state.
43 2. Each zone shall be divided into development regions. (a) The three
44 development regions in zone one shall be comprised of the following
45 counties:
46 (1) Region one shall consist of Putnam, Rockland and Westchester coun-
47 ties;
48 (2) Region two shall consist of Bronx, Kings, New York, Queens and
49 Richmond counties. No gaming facility shall be authorized in region
50 two; and
51 (3) Region three shall consist of Nassau and Suffolk counties.
52 (b) The six development regions in zone two shall be comprised of the
53 following counties:
54 (1) Region one shall consist of Columbia, Delaware, Dutchess, Greene,
55 Orange, Sullivan and Ulster counties;
S. 5883 13 A. 8101
1 (2) Region two shall consist of Albany, Fulton, Montgomery, Rensse-
2 laer, Saratoga, Schenectady, Schoharie and Washington counties.
3 (3) Region three shall consist of Clinton, Essex, Franklin, Hamilton,
4 Jefferson, Saint Lawrence and Warren counties;
5 (4) Region four shall consist of Cayuga, Chenango, Cortland, Herkimer,
6 Lewis, Madison, Oneida, Onondaga, Oswego and Otsego counties;
7 (5) Region five shall consist of Broome, Chemung (east of State Route
8 14), Schuyler (east of State Route 14), Seneca, Tioga, Tompkins, and
9 Wayne (east of State Route 14) counties; and
10 (6) Region six shall consist of Allegany, Cattaraugus, Chautauqua,
11 Chemung (west of State Route 14), Erie, Genesee, Livingston, Monroe,
12 Niagara, Ontario, Orleans, Schuyler (west of State Route 14), Steuben,
13 Wayne (west of State Route 14), Wyoming, and Yates counties.
14 § 1311. License authorization; restrictions. 1. The commission is
15 authorized to award up to four gaming facility licenses, in regions one,
16 two and five of zone two. The duration of such initial license shall be
17 ten years. The term of renewal shall be determined by the commission.
18 The commission may award a second license to a qualified applicant in no
19 more than a single region. The commission is not empowered to award any
20 license in zone one. No gaming facilities are authorized under this
21 article for the city of New York or any other portion of zone one.
22 As a condition of licensure, licensees are required to commence gaming
23 operations no less than twenty-four months following license award. No
24 additional licenses may be awarded during the twenty-four month period,
25 nor for an additional sixty months following the end of the twenty-four
26 month period. Should the state legislatively authorize additional
27 gaming facility licenses within these periods, licensees shall have the
28 right to recover the license fee paid pursuant to section one thousand
29 three hundred six of this article.
30 This right shall be incorporated into the license itself, vest upon
31 the opening of a gaming facility in zone one or in the same region as
32 the licensee and entitle the holder of such license to bring an action
33 in the court of claims to recover the license fee paid pursuant to
34 section one thousand three hundred fifteen of this article in the event
35 that any gaming facility license in excess of the number authorized by
36 this section as of the effective date of this section is awarded within
37 seven years from the date that the initial gaming facility license is
38 awarded. This right to recover any such fee shall be proportionate to
39 the length of the respective period that is still remaining upon the
40 vesting of such right.
41 Additionally, the right to bring an action in the court of claims to
42 recover the fee paid to the state on the twenty-fourth day of September,
43 two thousand ten, by the operator of a video lottery gaming facility in
44 a city of more than one million shall vest with such operator upon the
45 opening of any gaming facility licensed by the commission in zone one
46 within seven years from the date that the initial gaming facility
47 license is awarded; provided however that the amount recoverable shall
48 be limited to the pro rata amount of the time remaining until the end of
49 the seven year exclusivity period, proportionate to the period of time
50 between the date of oepning of the video lottery facility until the
51 conclusion of the seven year period.
52 2. Notwithstanding the foregoing, no casino gaming facility shall be
53 authorized:
54 (a) in the counties of Clinton, Essex, Franklin, Hamilton, Jefferson,
55 Lewis, Saint Lawrence and Warren;
S. 5883 14 A. 8101
1 (b) within the following area: (1) to the east, State Route 14 from
2 Sodus Point to the Pennsylvania border with New York; (2) to the north,
3 the border between New York and Canada; (3) to the south, the Pennsylva-
4 nia border with New York; and (4) to the west, the border between New
5 York and Canada and the border between Pennsylvania and New York; and
6 (c) in the counties of Cayuga, Chenango, Cortland, Herkimer, Lewis,
7 Madison, Oneida, Onondaga, Oswego and Otsego.
8 § 1312. Requests for applications. 1. The board shall issue within
9 ninety days of a majority of members being appointed a request for
10 applications for a gaming facility license in regions one, two and five
11 in zone two; provided, however, that the board shall not issue any
12 requests for applications for any region in zone one; and further
13 provided that the board shall not issue any requests for applications
14 with respect to any gaming facility subsequently legislatively author-
15 ized until seven years following the commencement of gaming activities
16 in zone two. All requests for applications shall include:
17 (a) the time and date for receipt of responses to the request for
18 applications, the manner they are to be received and the address of the
19 office to which the applications shall be delivered;
20 (b) the form of the application and the method for submission;
21 (c) a general description of the anticipated schedule for processing
22 the application;
23 (d) the contact information of board employees responsible for handl-
24 ing applicant questions; and
25 (e) any other information that the board determines.
26 2. Board activities shall be subject to section one hundred thirty-
27 nine-j and section one hundred thirty-nine-k of the state finance law.
28 3. Requests for applications pursuant to subdivision one of this
29 section shall be advertised in a newspaper of general circulation and on
30 the official internet website of the commission and the board.
31 4. The board shall establish deadlines for the receipt of all applica-
32 tions. Applications received after the deadline shall not be reviewed by
33 the board.
34 § 1313. Form of application. 1. The commission and the board shall
35 prescribe the initial form of the application for gaming licenses which
36 shall require, but not be limited to:
37 (a) the name of the applicant;
38 (b) the mailing address and, if a corporation, the name of the state
39 under the laws of which it is incorporated, the location of its princi-
40 pal place of business and the names and addresses of its directors and
41 such stockholders as to be determined by the commission;
42 (c) the identity of each person having a direct or indirect interest
43 in the business and the nature of such interest; provided, however, that
44 if the disclosed entity is a trust, the application shall disclose the
45 names and addresses of all beneficiaries; provided further, that if the
46 disclosed entity is a partnership, the application shall disclose the
47 names and addresses of all partners, both general and limited; and
48 provided further, that if the disclosed entity is a limited liability
49 company, the application shall disclose the names and addresses of all
50 members;
51 (d) an independent audit report of all financial activities and inter-
52 ests including, but not limited to, the disclosure of all contributions,
53 donations, loans or any other financial transactions to or from a gaming
54 entity or operator in the past five years;
55 (e) clear and convincing evidence of financial stability including,
56 but not limited to, bank references, business and personal income and
S. 5883 15 A. 8101
1 disbursement schedules, tax returns and other reports filed by govern-
2 ment agencies and business and personal accounting check records and
3 ledgers;
4 (f) information and documentation to demonstrate that the applicant
5 has sufficient business ability and experience to create the likelihood
6 of establishing and maintaining a successful gaming facility;
7 (g) a full description of the proposed internal controls and security
8 systems for the proposed gaming facility and any related facilities;
9 (h) the designs for the proposed gaming facility, including the names
10 and addresses of the architects, engineers and designers, and a timeline
11 of construction that includes detailed stages of construction for the
12 gaming facility and non-gaming structures, where applicable, and a
13 proposed date to open for gaming;
14 (i) the number of construction hours estimated to complete the work;
15 (j) a description of the ancillary entertainment services and amen-
16 ities to be provided at the proposed gaming facility;
17 (k) the number of employees to be employed at the proposed gaming
18 facility, including detailed information on the pay rate and benefits
19 for employees;
20 (l) completed studies and reports as required by the commission, which
21 shall include, but not be limited to, an examination of the proposed
22 gaming facility's:
23 (1) economic benefits to the region and the state;
24 (2) local and regional social, environmental, traffic and infrastruc-
25 ture impacts;
26 (3) impact on the local and regional economy, including the impact on
27 cultural institutions and on small businesses in the host municipality
28 and nearby municipalities;
29 (4) cost to the host municipality, nearby municipalities and the state
30 for the proposed gaming facility to be located at the proposed location;
31 and
32 (5) the estimated state tax revenue to be generated by the gaming
33 facility;
34 (m) the names of proposed vendors of gaming equipment;
35 (n) the location of the proposed gaming facility, which shall include
36 the address, maps, book and page numbers from the appropriate registry
37 of deeds, assessed value of the land at the time of application and
38 ownership interests over the past twenty years, including all interests,
39 options, agreements in property and demographic, geographic and environ-
40 mental information and any other information requested by the commis-
41 sion;
42 (o) the type and number of games to be conducted at the proposed
43 gaming facility and the specific location of the games in the proposed
44 gaming facility;
45 (p) the number of hotels and rooms, restaurants and other amenities
46 located at the proposed gaming facility and how they measure in quality
47 to other area hotels and amenities;
48 (q) whether the applicant's proposed gaming facility is part of a
49 regional or local economic plan; and
50 (r) whether the applicant purchased or intends to purchase publicly-
51 owned land for the proposed gaming facility.
52 2. Applications for licenses shall be public records; provided howev-
53 er, that trade secrets, competitively-sensitive or other proprietary
54 information provided in the course of an application for a gaming
55 license under this article, the disclosure of which would place the
56 applicant at a competitive disadvantage, may be withheld from disclosure
S. 5883 16 A. 8101
1 pursuant to paragraph (d) of subdivision two of section eighty-seven of
2 the public officers law.
3 § 1314. License applicant eligibility. 1. Gaming facility licenses
4 shall only be issued to applicants who are qualified under the criteria
5 set forth in this article, as determined by the commission.
6 2. As a condition of filing, each potential license applicant must
7 demonstrate to the board's satisfaction that local support has been
8 demonstrated.
9 3. Within any development region, if the commission is not convinced
10 that there is an applicant that has met the eligibility criteria or the
11 board finds that no applicant has provided substantial evidence that its
12 proposal will provide value to the region in which the gaming facility
13 is proposed to be located, no gaming facility license shall be awarded
14 in that region.
15 § 1315. Required capital investment. 1. The board shall establish the
16 minimum capital investment for a gaming facility by zone and region.
17 Such investment shall include, but not be limited to, a casino area, at
18 least one hotel and other amenities; and provided further, that the
19 board shall determine whether it will include the purchase or lease
20 price of the land where the gaming facility will be located or any
21 infrastructure designed to support the site including, but not limited
22 to, drainage, utility support, roadways, interchanges, fill and soil or
23 groundwater or surface water contamination issues. The board may
24 consider private capital investment made previous to the effective date
25 of this section, but may, in its discretion, discount a percentage of
26 the investment made. Upon award of a gaming license by the commission,
27 the applicant shall be required to deposit ten percent of the total
28 investment proposed in the application into an interest-bearing account.
29 Monies received from the applicant shall be held in escrow until the
30 final stage of construction, as detailed in the timeline of construction
31 submitted with the licensee's application and approved by the commis-
32 sion, at which time the deposit plus interest earned shall be returned
33 to the applicant to be applied for the final stage. Should the appli-
34 cant be unable to complete the gaming facility, the deposit shall be
35 forfeited to the state. In place of a cash deposit, the commission may
36 allow for an applicant to secure a deposit bond insuring that ten
37 percent of the proposed capital investment shall be forfeited to the
38 state if the applicant is unable to complete the gaming facility.
39 2. Each applicant shall submit its proposed capital investment with
40 its application to the board which shall include stages of construction
41 of the gaming facility and the deadline by which the stages and overall
42 construction and any infrastructure improvements will be completed. In
43 awarding a license, the commission shall determine at what stage of
44 construction a licensee shall be approved to open for gaming; provided,
45 however, that a licensee shall not be approved to open for gaming until
46 the commission has determined that at least the gaming area and other
47 ancillary entertainment services and non-gaming amenities, as required
48 by the board, have been built and are of a superior quality as set forth
49 in the conditions of licensure. The commission shall not approve a
50 gaming facility to open before the completion of the permanent casino
51 area.
52 3. A licensee who fails to begin gaming operations within twenty-four
53 months following license award shall be subject to suspension or revoca-
54 tion of the gaming license by the commission and may, after being found
55 by the commission after notice and opportunity for a hearing to have
S. 5883 17 A. 8101
1 acted in bad faith in its application, be assessed a fine of up to fifty
2 million dollars.
3 4. The board shall determine a licensing fee to be paid by a licensee
4 within thirty days after the award of the license which shall be depos-
5 ited into the commercial gaming revenue fund. The license shall set
6 forth the conditions to be satisfied by the licensee before the gaming
7 facility shall be opened to the public. The commission shall set any
8 renewal fee for such license based on the cost of fees associated with
9 the evaluation of a licensee under this article which shall be deposited
10 into the commercial gaming fund. Such renewal fee shall be exclusive of
11 any subsequent licensing fees under this section.
12 5. The commission shall determine the sources and total amount of an
13 applicant's proposed capitalization to develop, construct, maintain and
14 operate a proposed gaming facility under this article. Upon award of a
15 gaming license, the commission shall continue to assess the capitaliza-
16 tion of a licensee for the duration of construction of the proposed
17 gaming facility and the term of the license.
18 § 1316. Minimum license thresholds. No applicant shall be eligible to
19 receive a gaming license unless the applicant meets the following crite-
20 ria and clearly states as part of an application that the applicant
21 shall:
22 1. in accordance with the design plans submitted with the licensee's
23 application to the board, invest not less than the required capital
24 under this article into the gaming facility;
25 2. own or acquire, within sixty days after a license has been awarded,
26 the land where the gaming facility is proposed to be constructed;
27 provided, however, that ownership of the land shall include a tenancy
28 for a term of years under a lease that extends not less than sixty years
29 beyond the term of the gaming license issued under this article;
30 3. meet the licensee deposit requirement;
31 4. demonstrate that it is able to pay and shall commit to paying the
32 gaming licensing fee;
33 5. demonstrate to the commission how the applicant proposes to address
34 problem gambling concerns, workforce development and community develop-
35 ment and host and nearby municipality impact and mitigation issues;
36 6. identify the infrastructure costs of the host municipality incurred
37 in direct relation to the construction and operation of a gaming facili-
38 ty and commit to a community mitigation plan for the host municipality;
39 7. identify the service costs of the host municipality incurred for
40 emergency services in direct relation to the operation of a gaming
41 facility and commit to a community mitigation plan for the host munici-
42 pality;
43 8. pay to the commission an application fee of one million dollars to
44 defray the costs associated with the processing of the application and
45 investigation of the applicant; provided, however, that if the costs of
46 the investigation exceed the initial application fee, the applicant
47 shall pay the additional amount to the commission within thirty days
48 after notification of insufficient fees or the application shall be
49 rejected and further provided that should the costs of such investi-
50 gation not exceed the fee remitted, any unexpended portion shall be
51 returned to the applicant;
52 9. comply with state building and fire prevention codes;
53 10. formulate for board approval and abide by an affirmative action
54 program of equal opportunity whereby the applicant establishes specific
55 goals for the utilization of minorities, women and veterans on
56 construction jobs.
S. 5883 18 A. 8101
1 § 1317. Investigation of license applicants. 1. Upon receipt of an
2 application for a gaming facility license, the commission shall cause to
3 be commenced an investigation into the suitability of the applicant. In
4 evaluating the suitability of the applicant, the commission shall
5 consider the overall reputation of the applicant including, without
6 limitation:
7 (a) the integrity, honesty, good character and reputation of the
8 applicant;
9 (b) the financial stability, integrity and background of the appli-
10 cant;
11 (c) the business practices and the business ability of the applicant
12 to establish and maintain a successful gaming facility;
13 (d) whether the applicant has a history of compliance with gaming
14 licensing requirements in other jurisdictions;
15 (e) whether the applicant, at the time of application, is a defendant
16 in litigation involving its business practices;
17 (f) the suitability of all parties in interest to the gaming facility
18 license, including affiliates and close associates and the financial
19 resources of the applicant; and
20 (g) whether the applicant is disqualified from receiving a license
21 under this article; provided, however, that in considering the rehabili-
22 tation of an applicant for a gaming facility license, the commission
23 shall not automatically disqualify an applicant if the applicant affir-
24 matively demonstrates, by clear and convincing evidence, that the appli-
25 cant has financial responsibility, character, reputation, integrity and
26 general fitness as such to warrant belief by the commission that the
27 applicant will act honestly, fairly, soundly and efficiently as a gaming
28 licensee.
29 2. If the investigation reveals that an applicant has failed to:
30 (a) establish the applicant's integrity or the integrity of any affil-
31 iate, close associate, financial source or any person required to be
32 qualified by the commission;
33 (b) demonstrate responsible business practices in any jurisdiction; or
34 (c) overcome any other reason, as determined by the commission, as to
35 why it would be injurious to the interests of the state in awarding the
36 applicant a gaming facility license, the commission shall deny the
37 application, subject to notice and an opportunity for hearing.
38 3. If the investigation reveals that an applicant is suitable to
39 receive a gaming facility license, the entity shall recommend that the
40 commission commence a review of the applicant's entire application.
41 § 1318. Disqualifying criteria. 1. The commission shall deny a
42 license to any applicant who the commission determines is disqualified
43 on the basis of any of the following criteria, subject to notice and an
44 opportunity for hearing:
45 (a) failure of the applicant to prove by clear and convincing evidence
46 that the applicant is qualified in accordance with the provisions of
47 this article;
48 (b) failure of the applicant to provide information, documentation and
49 assurances required by this article or requested by the commission, or
50 failure of the applicant to reveal any fact material to qualification,
51 or the supplying of information which is untrue or misleading as to a
52 material fact pertaining to the qualification criteria;
53 (c) the conviction of the applicant, or of any person required to be
54 qualified under this article as a condition of a license, of any offense
55 in any jurisdiction which is or would be a felony or other crime involv-
56 ing public integrity, embezzlement, theft, fraud or perjury;
S. 5883 19 A. 8101
1 (d) committed prior acts which have not been prosecuted or in which
2 the applicant, or of any person required to be qualified under this
3 article as a condition of a license, was not convicted but form a
4 pattern of misconduct that makes the applicant unsuitable for a license
5 under this article; or
6 (e) if the applicant, or of any person required to be qualified under
7 this article as a condition of a license, has affiliates or close asso-
8 ciates that would not qualify for a license or whose relationship with
9 the applicant may pose an injurious threat to the interests of the state
10 in awarding a gaming facility license to the applicant;
11 (f) any other offense under present state or federal law which indi-
12 cates that licensure of the applicant would be inimical to the policy of
13 this article; provided, however, that the disqualification provisions of
14 this section shall not apply with regard to any misdemeanor conviction;
15 (g) current prosecution or pending charges in any jurisdiction of the
16 applicant or of any person who is required to be qualified under this
17 article as a condition of a license, for any of the offenses enumerated
18 in paragraph (c) of subdivision one of this section; provided, however,
19 that at the request of the applicant or the person charged, the commis-
20 sion may defer decision upon such application during the pendency of
21 such charge;
22 (h) the pursuit by the applicant or any person who is required to be
23 qualified under this article as a condition of a license of economic
24 gain in an occupational manner or context which is in violation of the
25 criminal or civil public policies of this state, if such pursuit creates
26 a reasonable belief that the participation of such person in gaming
27 facility operations would be inimical to the policies of this article.
28 For purposes of this section, occupational manner or context shall be
29 defined as the systematic planning, administration, management, or
30 execution of an activity for financial gain;
31 (i) the identification of the applicant or any person who is required
32 to be qualified under this article as a condition of a license as a
33 career offender or a member of a career offender cartel or an associate
34 of a career offender or career offender cartel in such a manner which
35 creates a reasonable belief that the association is of such a nature as
36 to be inimical to the policy of this article. For purposes of this
37 section, career offender shall be defined as any person whose behavior
38 is pursued in an occupational manner or context for the purpose of
39 economic gain, utilizing such methods as are deemed criminal violations
40 of the public policy of this state. A career offender cartel shall be
41 defined as any group of persons who operate together as career offen-
42 ders;
43 (j) the commission by the applicant or any person who is required to
44 be qualified under this article as a condition of a license of any act
45 or acts which would constitute any offense under paragraph (c) of subdi-
46 vision one of this section, even if such conduct has not been or may not
47 be prosecuted under the criminal laws of this state or any other juris-
48 diction;
49 (k) flagrant defiance by the applicant or any person who is required
50 to be qualified under this article of any legislative investigatory body
51 or other official investigatory body of any state or of the United
52 States when such body is engaged in the investigation of crimes relating
53 to gaming, official corruption, or organized crime activity; and
54 (l) failure by the applicant or any person required to be qualified
55 under this article as a condition of a license to make required payments
56 in accordance with a child support order, repay an overpayment for
S. 5883 20 A. 8101
1 public assistance benefits, or repay any other debt owed to the state
2 unless such applicant provides proof to the executive director's satis-
3 faction of payment of or arrangement to pay any such debts prior to
4 licensure.
5 § 1319. Hearings. The commission and the board shall have the inde-
6 pendent authority to conduct hearings concerning the conduct of gaming
7 and applicants for gaming facility licenses in accordance with any
8 procedures set forth in this article and any applicable implementing
9 regulations.
10 § 1320. Siting evaluation. In determining whether an applicant shall
11 be eligible for a gaming facility license, the board shall evaluate and
12 issue a finding of how each applicant proposes to advance the following
13 objectives.
14 1. The decision by the board to select a gaming facility license
15 applicant shall be weighted by seventy percent based on economic activ-
16 ity and business development factors including:
17 (a) realizing maximum capital investment exclusive of land acquisition
18 and infrastructure improvements;
19 (b) maximizing revenues received by the state and localities;
20 (c) providing the highest number of quality jobs in the gaming facili-
21 ty;
22 (d) building a gaming facility of the highest caliber with a variety
23 of quality amenities to be included as part of the gaming facility;
24 (e) offering the highest and best value to patrons to create a secure
25 and robust gaming market in the region and the state;
26 (f) providing a market analysis detailing the benefits of the site
27 location of the gaming facility and the estimated recapture rate of
28 gaming-related spending by residents travelling to an out-of-state
29 gaming facility;
30 (g) offering the fastest time to completion of the full gaming facili-
31 ty;
32 (h) demonstrating the ability to fully finance the gaming facility;
33 and
34 (i) demonstrating experience in the development and operation of a
35 quality gaming facility.
36 2. The decision by the board to select a gaming facility license
37 applicant shall be weighted by twenty percent based on local impact and
38 siting factors including:
39 (a) mitigating potential impacts on host and nearby municipalities
40 which might result from the development or operation of the gaming
41 facility;
42 (b) gaining public support in the host and nearby municipalities which
43 may be demonstrated through the passage of local laws or public comment
44 received by the board or gaming applicant;
45 (c) operating in partnership with and promoting local hotels, restau-
46 rants and retail facilities so that patrons experience the full diversi-
47 fied regional tourism industry; and
48 (d) establishing a fair and reasonable partnership with live enter-
49 tainment venues that may be impacted by a gaming facility under which
50 the gaming facility actively supports the mission and the operation of
51 the impacted entertainment venues.
52 3. The decision by the board to select a gaming facility license
53 applicant shall be weighted by ten percent based on workforce enhance-
54 ment factors including:
55 (a) implementing a workforce development plan that utilizes the exist-
56 ing labor force, including the estimated number of construction jobs a
S. 5883 21 A. 8101
1 proposed gaming facility will generate, the development of workforce
2 training programs that serve the unemployed and methods for accessing
3 employment at the gaming facility;
4 (b) taking additional measures to address problem gambling including,
5 but not limited to, training of gaming employees to identify patrons
6 exhibiting problems with gambling;
7 (c) utilizing sustainable development principles including, but not
8 limited to:
9 (1) having new and renovation construction certified under the appro-
10 priate certification category in the Leadership in Energy and Environ-
11 mental Design Green Building Rating System created by the United States
12 Green Building Council;
13 (2) efforts to mitigate vehicle trips;
14 (3) efforts to conserve water and manage storm water;
15 (4) demonstrating that electrical and HVAC equipment and appliances
16 will be Energy Star labeled where available;
17 (5) procuring or generating on-site ten percent of its annual elec-
18 tricity consumption from renewable sources; and
19 (6) developing an ongoing plan to submeter and monitor all major
20 sources of energy consumption and undertake regular efforts to maintain
21 and improve energy efficiency of buildings in their systems;
22 (d) establishing, funding and maintaining human resource hiring and
23 training practices that promote the development of a skilled and diverse
24 workforce and access to promotion opportunities through a workforce
25 training program that:
26 (1) establishes transparent career paths with measurable criteria
27 within the gaming facility that lead to increased responsibility and
28 higher pay grades that are designed to allow employees to pursue career
29 advancement and promotion;
30 (2) provides employee access to additional resources, such as tuition
31 reimbursement or stipend policies, to enable employees to acquire the
32 education or job training needed to advance career paths based on
33 increased responsibility and pay grades; and
34 (3) establishes an on-site child day care program;
35 (e) purchasing, whenever possible, domestically manufactured slot
36 machines for installation in the gaming facility;
37 (f) implementing a workforce development plan that:
38 (1) incorporates an affirmative action program of equal opportunity by
39 which the applicant guarantees to provide equal employment opportunities
40 to all employees qualified for licensure in all employment categories,
41 including persons with disabilities;
42 (2) utilizes the existing labor force in the state;
43 (3) estimates the number of construction jobs a gaming facility will
44 generate and provides for equal employment opportunities and which
45 includes specific goals for the utilization of minorities, women and
46 veterans on those construction jobs;
47 (4) identifies workforce training programs offered by the gaming
48 facility; and
49 (5) identifies the methods for accessing employment at the gaming
50 facility; and
51 (g) demonstrating that the applicant has an agreement with organized
52 labor, including hospitality services, and has the support of organized
53 labor for its application, which specifies:
54 (1) the number of employees to be employed at the gaming facility,
55 including detailed information on the pay rate and benefits for employ-
S. 5883 22 A. 8101
1 ees and contractors in the gaming facility and all infrastructure
2 improvements related to the project; and
3 (2) detailed plans for assuring labor harmony during all phases of the
4 construction, reconstruction, renovation, development and operation of
5 the gaming facility.
6 § 1321. Intentionally omitted.
7 TITLE 3
8 OCCUPATIONAL LICENSING
9 Section 1322. General provisions.
10 1323. Key employee licenses.
11 1324. Gaming employee registration.
12 1325. Approval, denial and renewal of employee licenses and
13 registrations.
14 § 1322. General provisions. 1. It shall be the affirmative responsi-
15 bility of each applicant or licensee to establish by clear and convinc-
16 ing evidence its individual qualifications, and for a gaming facility
17 license the qualifications of each person who is required to be quali-
18 fied under this article.
19 2. Any applicant, licensee, registrant, or any other person who must
20 be qualified pursuant to this article shall provide all legally required
21 information and satisfy all lawful requests for information pertaining
22 to qualification and in the form specified by regulation. All appli-
23 cants, registrants, and licensees shall waive liability as to the state,
24 and its instrumentalities and agents, for any damages resulting from any
25 disclosure or publication in any manner, other than a willfully unlawful
26 disclosure or publication, of any material or information acquired
27 during inquiries, investigations or hearings.
28 3. All applicants, licensees, registrants, intermediary companies, and
29 holding companies shall consent to inspections, searches and seizures
30 while at a gaming facility and the supplying of handwriting exemplars as
31 authorized by this article and regulations promulgated hereunder.
32 4. All applicants, licensees, registrants, and any other person who
33 shall be qualified pursuant to this article shall have the continuing
34 duty to provide any assistance or information required by the commis-
35 sion, and to cooperate in any inquiry, investigation or hearing
36 conducted by the commission. If, upon issuance of a formal request to
37 answer or produce information, evidence or testimony, any applicant,
38 licensee, registrant, or any other person who shall be qualified pursu-
39 ant to this article refuses to comply, the application, license, regis-
40 tration or qualification of such person may be denied or revoked.
41 5. Each applicant or person who must be qualified under this article
42 shall be photographed and fingerprinted for identification and investi-
43 gation purposes in accordance with procedures set forth by regulation.
44 6. All licensees, all registrants, and all other persons required to
45 be qualified under this article shall have a duty to inform the commis-
46 sion of any action which they believe would constitute a violation of
47 this article. No person who so informs the commission shall be discrimi-
48 nated against by an applicant, licensee or registrant because of the
49 supplying of such information.
50 § 1323. Key employee licenses. 1. No licensee or a holding or inter-
51 mediary company of a licensee may employ any person as a casino key
52 employee unless the person is the holder of a valid casino key employee
53 license issued by the commission.
54 2. Each applicant for a casino key employee license must, prior to the
55 issuance of any casino key employee license, produce information,
S. 5883 23 A. 8101
1 documentation and assurances concerning the following qualification
2 criteria:
3 (a) Each applicant for a casino key employee license shall produce
4 such information, documentation and assurances as may be lawfully
5 required to establish by clear and convincing evidence the financial
6 stability, integrity and responsibility of the applicant, including but
7 not limited to bank references, business and personal income and
8 disbursements schedules, tax returns and other reports filed with
9 governmental agencies, and business and personal accounting and check
10 records and ledgers. In addition, each applicant shall, in writing,
11 authorize the examination of all bank accounts and records as may be
12 deemed necessary by the commission.
13 (b) Each applicant for a casino key employee license shall produce
14 such information, documentation and assurances as may be required to
15 establish by clear and convincing evidence the applicant's good charac-
16 ter, honesty and integrity. Such information shall include data pertain-
17 ing to family, habits, character, reputation, criminal history informa-
18 tion, business activities, financial affairs, and business, professional
19 and personal associates, covering at least the ten year period imme-
20 diately preceding the filing of the application. Each applicant shall
21 notify the commission of any civil judgments obtained against such
22 applicant pertaining to antitrust or security regulation laws of the
23 federal government, of this state or of any other state, jurisdiction,
24 province or country. In addition, each applicant shall, upon request of
25 the commission, produce letters of reference from law enforcement agen-
26 cies having jurisdiction in the applicant's place of residence and prin-
27 cipal place of business, which letters of reference shall indicate that
28 such law enforcement agencies do not have any pertinent non-sealed
29 information concerning the applicant, or if such law enforcement agency
30 does have such information pertaining to the applicant, shall specify
31 what that information is. If the applicant has been associated with
32 gaming operations in any capacity, position or employment in a jurisdic-
33 tion which permits such activity, the applicant shall, upon request of
34 the commission, produce letters of reference from the gaming enforcement
35 or control agency, which shall specify the experience of such agency
36 with the applicant, his or her associates and his or her participation
37 in the gaming operations of that jurisdiction; provided, however, that
38 if no such letters are received from the appropriate law enforcement
39 agencies within sixty days of the applicant's request therefor, the
40 applicant may submit a statement under oath that he or she is or was
41 during the period such activities were conducted in good standing with
42 such gaming enforcement or control agency.
43 (c) Each applicant employed by a gaming facility licensee shall be a
44 resident of the state prior to the issuance of a casino key employee
45 license; provided, however, that upon petition by the holder of a
46 license, the commission may waive this residency requirement for any
47 applicant whose particular position will require him to be employed
48 outside the state; and provided further that no applicant employed by a
49 holding or intermediary company of a licensee shall be required to
50 establish residency in this state.
51 (d) For the purposes of this section, each applicant shall submit to
52 the commission the applicant's name, address, fingerprints and written
53 consent for a criminal history information as defined in paragraph (c)
54 of subdivision one of section eight hundred forty-five-b of the execu-
55 tive law, to be performed. The commission is hereby authorized to
56 exchange fingerprint data with and receive criminal history record
S. 5883 24 A. 8101
1 information from the state division of criminal justice services and the
2 federal bureau of investigation consistent with applicable state and
3 federal laws, rules and regulations. The applicant shall pay the fee for
4 such criminal history information as established pursuant to article
5 thirty-five of the executive law. The state division of criminal
6 justice services shall promptly notify the commission in the event a
7 current or prospective licensee, who was the subject of such criminal
8 history information pursuant to this section, is arrested for a crime or
9 offense in this state after the date the check was performed.
10 3. The commission shall deny a casino key employee license to any
11 applicant who is disqualified on the basis of the criteria contained in
12 section one thousand three hundred eighteen of this title, subject to
13 notice and hearing.
14 4. Upon receipt of such criminal history information, the commission
15 shall provide such applicant with a copy of such criminal history infor-
16 mation, together with a copy of article twenty-three-A of the correction
17 law, and inform such applicant of his or her right to seek correction of
18 any incorrect information contained in such criminal history information
19 pursuant to regulations and procedures established by the division of
20 criminal justice services. Except as otherwise provided by law, such
21 criminal history information shall be confidential and any person who
22 willfully permits the release of such confidential criminal history
23 information to persons not permitted to receive such information shall
24 be guilty of a misdemeanor.
25 5. Upon petition by the holder of a license, the commission may issue
26 a temporary license to an applicant for a casino key employee license,
27 provided that:
28 (a) The applicant for the casino key employee license has filed a
29 completed application as required by the commission;
30 (b) The petition for a temporary casino key employee license certi-
31 fies, and the commission finds, that an existing casino key employee
32 position of the petitioner is vacant or will become vacant within sixty
33 days of the date of the petition and that the issuance of a temporary
34 key employee license is necessary to fill the said vacancy on an emer-
35 gency basis to continue the efficient operation of the casino, and that
36 such circumstances are extraordinary and not designed to circumvent the
37 normal licensing procedures of this article;
38 6. Unless otherwise terminated pursuant to this article, any temporary
39 casino key employee license issued pursuant to this section shall expire
40 nine months from the date of its issuance.
41 § 1324. Gaming employee registration. 1. No person may commence
42 employment as a gaming employee unless such person has a valid registra-
43 tion on file with the commission, which registration shall be prepared
44 and filed in accordance with the regulations promulgated hereunder.
45 2. A gaming employee registrant shall produce such information as the
46 commission by regulation may require. Subsequent to the registration of
47 a gaming employee, the executive director may revoke, suspend, limit, or
48 otherwise restrict the registration upon a finding that the registrant
49 is disqualified on the basis of the criteria contained in section one
50 thousand three hundred eighteen of this title. If a gaming employee
51 registrant has not been employed in any position within a gaming facili-
52 ty for a period of three years, the registration of that gaming employee
53 shall lapse.
54 3. No gaming employee registration shall be denied or revoked on the
55 basis of a misdemeanor conviction of any of the offenses enumerated in
56 this article as disqualification criteria or the commission of any act
S. 5883 25 A. 8101
1 or acts which would constitute any offense under section one thousand
2 three hundred eighteen of this title, provided that the registrant has
3 affirmatively demonstrated the registrant's rehabilitation, pursuant to
4 article twenty-three-A of the correction law.
5 4. For the purposes of this section, each registrant shall submit to
6 the commission the registrant's name, address, fingerprints and written
7 consent for a criminal history information to be performed. The commis-
8 sion is hereby authorized to exchange fingerprint data with and receive
9 criminal history information as defined in paragraph (c) of subdivision
10 one of section eight hundred forty-five-b of the executive law from the
11 state division of criminal justice services and the federal bureau of
12 investigation consistent with applicable state and federal laws, rules
13 and regulations. The registrant shall pay the fee for such criminal
14 history information as established pursuant to article thirty-five of
15 the executive law. The state division of criminal justice services
16 shall promptly notify the commission in the event a current or prospec-
17 tive licensee, who was the subject of a criminal history information
18 pursuant to this section, is arrested for a crime or offense in this
19 state after the date the check was performed.
20 5. Upon receipt of such criminal history information, the Commission
21 shall provide such applicant with a copy of such criminal history infor-
22 mation, together with a copy of article twenty-three-A of the correction
23 law, and inform such applicant of his or her right to seek correction of
24 any incorrect information contained in such criminal history information
25 pursuant to regulations and procedures established by the division of
26 criminal justice services. Except as otherwise provided by law, such
27 criminal history information shall be confidential and any person who
28 willfully permits the release of such confidential criminal history
29 information to persons not permitted to receive such information shall
30 be guilty of a misdemeanor.
31 § 1325. Approval, denial and renewal of employee licenses and regis-
32 trations. 1. Upon the filing of an application for a casino key employ-
33 ee license or gaming employee registration required by this article and
34 after submission of such supplemental information as the commission may
35 require, the commission shall conduct or cause to be conducted such
36 investigation into the qualification of the applicant, and the commis-
37 sion shall conduct such hearings concerning the qualification of the
38 applicant, in accordance with its regulations, as may be necessary to
39 determine qualification for such license.
40 2. After such investigation, the commission may either deny the appli-
41 cation or grant a license to an applicant whom it determines to be qual-
42 ified to hold such license.
43 3. The commission shall have the authority to deny any application
44 pursuant to the provisions of this article following notice and opportu-
45 nity for hearing.
46 4. When the commission grants an application, the commission may limit
47 or place such restrictions thereupon as it may deem necessary in the
48 public interest.
49 5. After an application for a casino key employee license is submit-
50 ted, final action of the commission shall be taken within ninety days
51 after completion of all hearings and investigations and the receipt of
52 all information required by the commission.
53 6. Licenses and registrations of casino key employees and gaming
54 employees issued pursuant to this article shall remain valid for five
55 years unless suspended, revoked or voided pursuant to law. Such licenses
56 and registrations may be renewed by the holder thereof upon application,
S. 5883 26 A. 8101
1 on a form prescribed by the commission, and payment of the applicable
2 fee. Notwithstanding the forgoing, if a gaming employee registrant has
3 not been employed in any position within a gaming facility for a period
4 of three years, the registration of that gaming employee shall lapse.
5 8. The commission shall establish by regulation appropriate fees to be
6 paid upon the filing of the required applications. Such fees shall be
7 deposited into the commercial gaming revenue fund.
8 TITLE 4
9 ENTERPRISE AND VENDOR LICENSING AND REGISTRATION
10 Section 1326. Licensing of vendor enterprises.
11 1327. Duration and renewal of vendor registration.
12 1328. Junket operator licensing.
13 1329. Lobbyist registration.
14 1330. Registration of labor organizations.
15 1330-a. Casino gaming expenditures.
16 § 1326. Licensing of vendor enterprises. 1. Any business to be
17 conducted with a gaming facility applicant or licensee by a vendor
18 offering goods or services which directly relate to gaming activity,
19 including gaming equipment manufacturers, suppliers, repairers, and
20 independent testing laboratories, shall be licensed as a casino vendor
21 enterprise in accordance with the provisions of this article prior to
22 conducting any business whatsoever with a gaming facility applicant or
23 licensee, its employees or agents; provided, however, that upon a show-
24 ing of good cause by a gaming facility applicant or licensee, the execu-
25 tive director may permit an applicant for a casino vendor enterprise
26 license to conduct business transactions with such gaming facility
27 applicant or licensee prior to the licensure of that casino vendor
28 enterprise applicant under this subdivision for such periods as the
29 commission may establish by regulation.
30 2. In addition to the requirements of subdivision one of this section,
31 any casino vendor enterprise intending to manufacture, sell, distribute,
32 test or repair slot machines within the state shall be licensed in
33 accordance with the provisions of this article prior to engaging in any
34 such activities; provided, however, that upon a showing of good cause by
35 a gaming facility applicant or licensee, the executive director may
36 permit an applicant for a casino vendor enterprise license to conduct
37 business transactions with the gaming facility applicant or licensee
38 prior to the licensure of that casino vendor enterprise applicant under
39 this subdivision for such periods as the commission may establish by
40 regulation; and provided further, however, that upon a showing of good
41 cause by an applicant required to be licensed as a casino vendor enter-
42 prise pursuant to this subdivision, the executive director may permit
43 the casino vendor enterprise applicant to initiate the manufacture of
44 slot machines or engage in the sale, distribution, testing or repair of
45 slot machines with any person other than a gaming facility applicant or
46 licensee, its employees or agents, prior to the licensure of that casino
47 vendor enterprise applicant under this subdivision.
48 3. Vendors providing goods and services to gaming facility licensees
49 or applicants ancillary to gaming shall be required to be licensed as an
50 ancillary casino vendor enterprise and shall comply with the standards
51 for casino vendor license applicants.
52 4. Each casino vendor enterprise required to be licensed pursuant to
53 subdivision one of this section, as well as its owners; management and
54 supervisory personnel; and employees if such employees have responsibil-
55 ity for services to a gaming facility applicant or licensee, must quali-
S. 5883 27 A. 8101
1 fy under the standards, except residency, established for qualification
2 of a casino key employee under this article.
3 5. Any vendor that offers goods or services to a gaming facility
4 applicant or licensee that is not included in subdivision one or two of
5 this section including, but not limited to site contractors and subcon-
6 tractors, shopkeepers located within the facility, gaming schools that
7 possess slot machines for the purpose of instruction, and any non-super-
8 visory employee of a junket enterprise licensed under subdivision three
9 of this section, shall be required to register with the commission in
10 accordance with the regulations promulgated under this article.
11 Notwithstanding the provisions aforementioned, the executive director
12 may, consistent with the public interest and the policies of this arti-
13 cle, direct that individual vendors registered pursuant to this subdivi-
14 sion be required to apply for either a casino vendor enterprise license
15 pursuant to subdivision one of this section, or an ancillary vendor
16 industry enterprise license pursuant to subdivision three of this
17 section, as directed by the commission. The executive director may also
18 order that any enterprise licensed as or required to be licensed as an
19 ancillary casino vendor enterprise pursuant to subdivision three of this
20 section be required to apply for a casino vendor enterprise license
21 pursuant to subdivision one of this section. The executive director may
22 also, in his or her discretion, order that an independent software
23 contractor not otherwise required to be registered be either registered
24 as a vendor pursuant to this subdivision or be licensed pursuant to
25 either subdivision one or three of this section.
26 Each ancillary casino vendor enterprise required to be licensed pursu-
27 ant to subdivision three of this section, as well as its owners, manage-
28 ment and supervisory personnel, and employees if such employees have
29 responsibility for services to a gaming facility applicant or licensee,
30 shall establish their good character, honesty and integrity by clear and
31 convincing evidence and shall provide such financial information as may
32 be required by the commission. Any enterprise required to be licensed
33 as an ancillary casino vendor enterprise pursuant to this section shall
34 be permitted to transact business with a gaming facility licensee upon
35 filing of the appropriate vendor registration form and application for
36 such licensure.
37 6. Any applicant, licensee or qualifier of a casino vendor enterprise
38 license or of an ancillary casino vendor enterprise license under subdi-
39 vision one of this section, and any vendor registrant under subdivision
40 five of this section shall be disqualified in accordance with the crite-
41 ria contained in section one thousand three hundred eighteen of this
42 article, except that no such ancillary casino vendor enterprise license
43 under subdivision three of this section or vendor registration under
44 subdivision five of this section shall be denied or revoked if such
45 vendor registrant can affirmatively demonstrate rehabilitation pursuant
46 to article twenty-three-A of the correction law.
47 7. No casino vendor enterprise license or ancillary casino vendor
48 enterprise license shall be issued pursuant to subdivision one of this
49 section to any person unless that person shall provide proof of valid
50 business registration with the department of state.
51 8. For the purposes of this section, each applicant shall submit to
52 the commission the name, address, fingerprints and a written consent for
53 a criminal history information to be performed, for each person required
54 to qualify as part of the application. The commission is hereby author-
55 ized to exchange fingerprint data with and receive criminal history
56 record information from the state division of criminal justice services
S. 5883 28 A. 8101
1 and the federal bureau of investigation consistent with applicable state
2 and federal laws, rules and regulations. The applicant shall pay the fee
3 for such criminal history information as established pursuant to article
4 thirty-five of the executive law. The state division of criminal
5 justice services shall promptly notify the commission in the event a
6 current or prospective qualifier, who was the subject of a criminal
7 history record check pursuant to this section, is arrested for a crime
8 or offense in this state after the date the check was performed.
9 9. Subsequent to the licensure of any entity pursuant to subdivision
10 one of this section, including any finding of qualification as may be
11 required as a condition of licensure, or the registration of any vendor
12 pursuant to subdivision three of this section, the executive director
13 may revoke, suspend, limit, or otherwise restrict the license, registra-
14 tion or qualification status upon a finding that the licensee, regis-
15 trant or qualifier is disqualified on the basis of the criteria set
16 forth in section one thousand three hundred eighteen of this article.
17 10. After notice and hearing prior to the suspension of any license,
18 registration or qualification issued pursuant to subdivision seven of
19 this section the commission shall have the obligation to prove by
20 substantial evidence that the licensee, registrant or qualifier is
21 disqualified on the basis of the criteria set forth in section one thou-
22 sand three hundred eighteen of this article.
23 § 1327. Duration and renewal of vendor registration. 1. A casino
24 vendor registration shall be effective upon issuance, and shall remain
25 valid for five years unless revoked, suspended, voided by law, limited,
26 or otherwise restricted by the commission. Such registrations may be
27 renewed by the holder thereof upon application, on a form prescribed by
28 the commission, and payment of the applicable fee. Notwithstanding the
29 foregoing, if a vendor registrant has not conducted business with a
30 gaming facility for a period of three years, the registration of that
31 vendor registrant shall lapse.
32 2. The commission shall establish by regulation reasonable and appro-
33 priate fees to be imposed on each vendor registrant who provides goods
34 or services to a gaming facility, regardless of the nature of any
35 contractual relationship between the vendor registrant and gaming facil-
36 ity, if any. Such fees shall be paid to the commission.
37 § 1328. Junket operator licensing. 1. No junkets may be organized or
38 permitted except in accordance with the provisions of this article. No
39 person may act as a junket representative or junket enterprise except in
40 accordance with this section.
41 2. A junket representative employed by a gaming facility licensee, an
42 applicant for a gaming facility license or an affiliate of a gaming
43 facility licensee shall be licensed as a casino key employee; provided,
44 however, that said licensee need not be a resident of this state. No
45 gaming facility licensee or applicant for a gaming facility license may
46 employ or otherwise engage a junket representative who is not so
47 licensed.
48 3. Junket enterprises that, and junket representatives not employed by
49 a gaming facility licensee or an applicant for a gaming facility license
50 or by a junket enterprise who, engage in activities governed by this
51 section shall be licensed as an ancillary casino vendor enterprise in
52 accordance with subdivision three of section one thousand three hundred
53 twenty-six of this title, unless otherwise directed by the commission;
54 provided, however, that any such junket enterprise or junket represen-
55 tative who has disqualified shall be entitled to establish his or her
56 rehabilitation from such disqualification pursuant to article twenty-
S. 5883 29 A. 8101
1 three-A of the correction law. Any non-supervisory employee of a junket
2 enterprise or junket representative licensed as an ancillary casino
3 vendor enterprise in accordance with subdivision three of section one
4 thousand three hundred twenty-six of this title shall be registered.
5 4. Prior to the issuance of any license required by this section, an
6 applicant for licensure shall submit to the jurisdiction of the state
7 and shall demonstrate that he or she is amenable to service of process
8 within this state. Failure to establish or maintain compliance with the
9 requirements of this subdivision shall constitute sufficient cause for
10 the denial, suspension or revocation of any license issued pursuant to
11 this section.
12 5. Upon petition by the holder of a gaming facility license, an appli-
13 cant for a casino key employee license intending to be employed as a
14 junket representative may be issued a temporary license by the commis-
15 sion in accordance with regulations promulgated, provided that:
16 (a) the applicant for licensure is employed by a gaming facility
17 licensee; and
18 (b) the applicant for licensure has filed a completed application as
19 required by the commission.
20 6. The commission shall have the authority to immediately suspend,
21 limit or condition any temporary license issued pursuant to this
22 section, pending a hearing on the qualifications of the junket represen-
23 tative.
24 7. Unless otherwise terminated, any temporary license issued pursuant
25 to this section shall expire twelve months from the date of its issu-
26 ance, and shall be renewable by the commission for one additional six
27 month period.
28 8. Every agreement concerning junkets entered into by a gaming facili-
29 ty licensee and a junket representative or junket enterprise shall be
30 deemed to include a provision for its termination without liability on
31 the part of the gaming facility licensee, if the commission orders the
32 termination upon the suspension, limitation, conditioning, denial or
33 revocation of the licensure of the junket representative or junket
34 enterprise. Failure to expressly include such a condition in the agree-
35 ment shall not constitute a defense in any action brought to terminate
36 the agreement.
37 9. A gaming facility licensee shall be responsible for the conduct of
38 any junket representative or junket enterprise associated with it and
39 for the terms and conditions of any junket engaged in on its premises,
40 regardless of the fact that the junket may involve persons not employed
41 by such a gaming facility licensee.
42 10. A gaming facility licensee shall be responsible for any violation
43 or deviation from the terms of a junket. Notwithstanding any other
44 provisions of this article, the commission may order restitution to
45 junket participants, assess penalties for such violations or deviations,
46 prohibit future junkets by the gaming facility licensee, junket enter-
47 prise or junket representative, and order such further relief as it
48 deems appropriate.
49 11. The commission shall, by regulation, prescribe methods, procedures
50 and forms for the delivery and retention of information concerning the
51 conduct of junkets by gaming facility licensees. Without limitation of
52 the foregoing, each gaming facility licensee, in accordance with the
53 rules of the commission, shall:
54 (a) Maintain on file a report describing the operation of any junket
55 engaged in on its premises; and
S. 5883 30 A. 8101
1 (b) Submit to the commission a list of all its employees who are
2 acting as junket representatives.
3 12. Each gaming facility licensee, junket representative or junket
4 enterprise shall, in accordance with the rules of the commission, file a
5 report with the commission with respect to each list of junket patrons
6 or potential junket patrons purchased directly or indirectly by the
7 gaming facility licensee, junket representative or enterprise.
8 13. The commission shall have the authority to determine, either by
9 regulation, or upon petition by the holder of a gaming facility license,
10 that a type of arrangement otherwise included within the definition of
11 "junket" shall not require compliance with any or all of the require-
12 ments of this section. In granting exemptions, the commission shall
13 consider such factors as the nature, volume and significance of the
14 particular type of arrangement, and whether the exemption would be
15 consistent with the public policies established by this article. In
16 applying the provisions of this subdivision, the commission may condi-
17 tion, limit, or restrict any exemption as it may deem appropriate.
18 14. No junket enterprise or junket representative or person acting as
19 a junket representative may:
20 (a) Engage in efforts to collect upon checks that have been returned
21 by banks without full and final payment;
22 (b) Exercise approval authority with regard to the authorization or
23 issuance of credit;
24 (c) Act on behalf of or under any arrangement with a gaming facility
25 licensee or a gaming patron with regard to the redemption, consol-
26 idation, or substitution of the gaming patron's checks awaiting deposit;
27 (d) Individually receive or retain any fee from a patron for the priv-
28 ilege of participating in a junket; and
29 (e) Pay for any services, including transportation, or other items of
30 value provided to, or for the benefit of, any patron participating in a
31 junket.
32 § 1329. Lobbyist registration. 1. For purposes of this section, the
33 terms "lobbyist", "lobbying", "lobbying activities" and "client" shall
34 have the same meaning as those terms are defined by section one-c of the
35 legislative law.
36 2. In addition to any other registration and reporting required by
37 law, each lobbyist seeking to engage in lobbying activity on behalf of a
38 client or a client's interest before the commission shall first register
39 with the secretary of the commission. The secretary shall cause a regis-
40 tration to be available on the commission's website within five days of
41 submission.
42 § 1330. Registration of labor organizations. 1. Each labor organiza-
43 tion, union or affiliate seeking to represent employees who are employed
44 in a gaming facility by a gaming facility licensee shall register with
45 the commission biennially, and shall disclose such information as the
46 commission may require, including the names of all affiliated organiza-
47 tions, pension and welfare systems and all officers and agents of such
48 organizations and systems; provided, however, that no labor organiza-
49 tion, union, or affiliate shall be required to furnish such information
50 to the extent such information is included in a report filed by any
51 labor organization, union, or affiliate with the Secretary of Labor
52 pursuant to 29 U.S.C. § 431 et seq. or § 1001 et seq. if a copy of such
53 report, or of the portion thereof containing such information, is
54 furnished to the commission pursuant to the aforesaid federal
55 provisions. The commission may in its discretion exempt any labor organ-
56 ization, union, or affiliate from the registration requirements of this
S. 5883 31 A. 8101
1 subdivision where the commission finds that such organization, union or
2 affiliate is not the certified bargaining representative of any employee
3 who is employed in a gaming facility by a gaming facility licensee, is
4 not involved actively, directly or substantially in the control or
5 direction of the representation of any such employee, and is not seeking
6 to do so.
7 2. No person may act as an officer, agent or principal employee of a
8 labor organization, union or affiliate registered or required to be
9 registered pursuant to this section if the person has been found
10 disqualified by the commission in accordance with the criteria contained
11 in section one thousand three hundred eighteen of this article. The
12 commission may, for purposes of this subdivision, waive any disquali-
13 fication criterion consistent with the public policy of this article and
14 upon a finding that the interests of justice so require.
15 3. Neither a labor organization, union or affiliate nor its officers
16 and agents not otherwise individually licensed or registered under this
17 article and employed by a gaming facility licensee may hold any finan-
18 cial interest whatsoever in the gaming facility or gaming facility
19 licensee whose employees they represent.
20 4. The commission may maintain a civil action and proceed in a summary
21 manner, without posting bond, against any person, including any labor
22 organization, union or affiliate, to compel compliance with this
23 section, or to prevent any violations, the aiding and abetting thereof,
24 or any attempt or conspiracy to violate this section.
25 5. In addition to any other remedies provided in this section, a labor
26 organization, union or affiliate registered or required to be registered
27 pursuant to this section may be prohibited by the commission from
28 receiving any dues from any employee licensed or registered under this
29 article and employed by a gaming facility licensee or its agent, if any
30 officer, agent or principal employee of the labor organization, union or
31 affiliate has been found disqualified and if such disqualification has
32 not been waived by the commission in accordance with subdivision two of
33 this section.
34 § 1330-a. Casino gaming expenditures. 1. (a) In addition to any other
35 registration or reporting required by law, any entity licensed under
36 section sixteen hundred seventeen-a of the tax law, or which possesses a
37 pari-mutuel wagering license or franchise awarded pursuant to article
38 two or three of this chapter that makes an expenditure of more than one
39 thousand dollars for any written, typed, or other printed communication,
40 or any internet-based communication, or any television or radio communi-
41 cation, or any automated or paid telephone communications, in support or
42 opposition to any referendum authorized by the state legislature follow-
43 ing second passage of a concurrent resolution to amend the state consti-
44 tution to permit or authorize casino gaming to a general public audi-
45 ence, shall file any reports required pursuant to the election law
46 simultaneously with the gaming commission and shall provide such addi-
47 tional reports as required by the gaming commission. This requirement
48 shall apply irrespective of whether such entity makes such expenditure
49 directly or indirectly via one or more persons. The gaming commission
50 shall promulgate regulations to implement the requirements of this
51 section.
52 (b) Casino gaming expenditures do not include expenditures in
53 connection with:
54 (i) a written news story, commentary, or editorial or a news story,
55 commentary, or editorial distributed through the facilities of any
56 broadcasting station, cable or satellite unless such publication or
S. 5883 32 A. 8101
1 facilities are owned or controlled directly or indirectly by the person
2 making such expenditure; or
3 (ii) a communication published on the Internet, unless the communi-
4 cation is a paid advertisement.
5 (c) For purposes of this section, the term "person" shall mean person,
6 group of persons, corporation, unincorporated business entity, labor
7 organization or business, trade or professional association or organiza-
8 tion, or political committee.
9 (d) A knowing or willful violation of the provisions of this section
10 shall subject the person to a civil penalty equal to up to one hundred
11 thousand dollars or the cost of the communication, whichever is greater,
12 imposed by the gaming commission for each violation.
13 2. A copy of all communications paid for by the casino gaming expendi-
14 ture, including but not limited to broadcast, cable or satellite sched-
15 ules and scripts, advertisements, pamphlets, circulars, flyers,
16 brochures, letterheads and other printed matter and statements or infor-
17 mation conveyed to one thousand or more members of a general public
18 audience shall be filed with the gaming commission with the statements
19 required this article.
20 TITLE 5
21 REQUIREMENTS FOR CONDUCT AND OPERATION OF GAMING
22 Section 1331. Operation certificate.
23 1332. Age for gaming participation.
24 1333. Hours of operation.
25 1334. Internal controls.
26 1335. Games and gaming equipment.
27 1336. Certain wagering prohibited.
28 1337. Gratuities.
29 1338. Limitation on certain financial access.
30 1339. Credit.
31 1340. Alcoholic beverages.
32 1341. Licensee leases and contracts.
33 1342. Required exclusion of certain persons.
34 1343. Exclusion, ejection of certain persons.
35 1344. List of persons self-excluded from gaming activities.
36 1345. Excluded person; forfeiture of winnings; other sanctions.
37 1346. Labor peace agreements for certain facilities
38 § 1331. Operation certificate. 1. Notwithstanding the issuance of a
39 license therefor, no gaming facility may be opened or remain open to the
40 public, and no gaming activity, except for test purposes, may be
41 conducted therein, unless and until a valid operation certificate has
42 been issued to the gaming facility licensee by the commission. Such
43 certificate shall be issued by the executive director upon a determi-
44 nation that a gaming facility complies in all respects with the require-
45 ments of this article and regulations promulgated hereunder, and that
46 the gaming facility is prepared in all respects to receive and entertain
47 the public.
48 2. An operation certificate shall remain in force and effect unless
49 revoked, suspended, limited, or otherwise altered by the commission in
50 accordance with this article.
51 3. It shall be an express condition of continued operation under this
52 article that a gaming facility licensee shall maintain either electron-
53 ically or in hard copy at the discretion of the gaming facility licen-
54 see, copies of all books, records, and documents pertaining to the
55 licensee's operations and approved hotel in a manner and location
56 approved by the commission, provided, however, that the originals of
S. 5883 33 A. 8101
1 such books, records and documents, whether in electronic or hard copy
2 form, may be maintained at the offices or electronic system of an affil-
3 iate of the gaming facility licensee, at the discretion of the gaming
4 facility licensee. All such books, records and documents shall be imme-
5 diately available for inspection during all hours of operation in
6 accordance with the rules of the commission and shall be maintained for
7 such period of time as the commission shall require.
8 § 1332. Age for gaming participation. 1. No person under the age at
9 which a person is authorized to purchase and consume alcoholic beverages
10 shall enter, or wager in, a licensed gaming facility; provided, however,
11 that such a person may enter a gaming facility by way of passage to
12 another room, and provided further, however, that any such person who is
13 licensed or registered under the provisions of this article may enter a
14 gaming facility in the regular course of the person's permitted activ-
15 ities.
16 2. Any person disqualified pursuant to subdivision one of this section
17 entitled to funds, cash or prizes from gambling activity shall forfeit
18 same. Such forfeited funds, cash or prizes shall be remitted to the
19 commission and deposited into the commercial gaming revenue fund.
20 § 1333. Hours of operation. 1. Each gaming facility licensed pursuant
21 to this article shall be permitted to operate twenty-four hours a day
22 unless otherwise directed by the commission.
23 2. A gaming facility licensee shall file with the commission a sched-
24 ule of hours prior to the issuance of an initial operation certificate.
25 If the gaming facility licensee proposes any change in scheduled hours,
26 such change may not be effected until such licensee files a notice of
27 the new schedule of hours with the commission. Such filing must be made
28 thirty days prior to the effective date of the proposed change in hours.
29 3. Nothing in this section shall be construed to limit a gaming facil-
30 ity licensee in opening its casino later than, or closing its casino
31 earlier than, the times stated in its schedule of operating hours;
32 provided, however, that any such alterations in its hours shall comply
33 with the provisions of subdivision one of this section and with regu-
34 lations of the commission pertaining to such alterations.
35 § 1334. Internal controls. 1. Each applicant for a gaming facility
36 license shall create, maintain, and file with the commission a
37 description of its internal procedures and administrative and accounting
38 controls for gaming operations that conform to commission regulations
39 and provide adequate and effective controls, establish a consistent
40 overall system of internal procedures and administrative and accounting
41 controls and conform to generally accepted accounting principles, and
42 ensure that gaming facility procedures are carried out and supervised by
43 personnel who do not have incompatible functions. A gaming facility
44 licensee's internal controls shall contain a narrative description of
45 the internal control system to be utilized by the gaming facility,
46 including, but not limited to:
47 (a) Accounting controls, including the standardization of forms and
48 definition of terms to be utilized in the gaming operations;
49 (b) Procedures, forms, and, where appropriate, formulas covering the
50 calculation of hold percentages; revenue drop; expense and overhead
51 schedules; complimentary service or item; junkets; and cash equivalent
52 transactions;
53 (c) Procedures within the cashier's cage for the receipt, storage and
54 disbursal of chips, cash, and other cash equivalents used in gaming; the
55 cashing of checks; the redemption of chips and other cash equivalents
S. 5883 34 A. 8101
1 used in gaming; the pay-off of jackpots; and the recording of trans-
2 actions pertaining to gaming operations;
3 (d) Procedures for the collection and security of moneys at the gaming
4 tables;
5 (e) Procedures for the transfer and recordation of chips between the
6 gaming tables and the cashier's cage;
7 (f) Procedures for the transfer of moneys from the gaming tables to
8 the counting process;
9 (g) Procedures and security for the counting and recordation of reven-
10 ue;
11 (h) Procedures for the security, storage and recordation of cash,
12 chips and other cash equivalents utilized in the gaming;
13 (i) Procedures for the transfer of moneys or chips from and to the
14 slot machines;
15 (j) Procedures and standards for the opening and security of slot
16 machines;
17 (k) Procedures for the payment and recordation of slot machine jack-
18 pots;
19 (l) Procedures for the cashing and recordation of checks exchanged by
20 casino patrons;
21 (m) Procedures governing the utilization of the private security force
22 within the gaming facility;
23 (n) Procedures and security standards for the handling and storage of
24 gaming apparatus including cards, dice, machines, wheels and all other
25 gaming equipment;
26 (o) Procedures and rules governing the conduct of particular games and
27 the responsibility of gaming facility personnel in respect thereto;
28 (p) Procedures for the orderly shutdown of gaming facility operations
29 in the event that a state of emergency is declared and the gaming facil-
30 ity licensee is unable or ineligible to continue to conduct gaming
31 facility operations during such a state of emergency, which procedures
32 shall include, without limitation, the securing of all keys and gaming
33 assets.
34 2. No minimum staffing requirements shall be included in the internal
35 controls created in accordance with subdivision one of this section.
36 § 1335. Games and gaming equipment. 1. This article shall not be
37 construed to permit any gaming except the conduct of authorized games in
38 a casino in accordance with this article and the regulations promulgated
39 hereunder.
40 2. Gaming equipment shall not be possessed, maintained or exhibited by
41 any person on the premises of a gaming facility except in a casino or in
42 restricted casino areas used for the inspection, repair or storage of
43 such equipment and specifically designated for that purpose by the
44 gaming facility licensee with the approval of the commission. Gaming
45 equipment that supports the conduct of gaming in a gaming facility but
46 does not permit or require patron access, such as computers, may be
47 possessed and maintained by a gaming facility licensee or a qualified
48 holding or intermediary company of a gaming facility licensee in
49 restricted areas specifically approved by the commission. No gaming
50 equipment shall be possessed, maintained, exhibited, brought into or
51 removed from a gaming facility by any person unless such equipment is
52 necessary to the conduct of an authorized game, has permanently affixed,
53 imprinted, impressed or engraved thereon an identification number or
54 symbol authorized by the commission, is under the exclusive control of a
55 gaming facility licensee or gaming facility licensee's employees, or of
56 any individually qualified employee of a holding company or gaming
S. 5883 35 A. 8101
1 facility licensee and is brought into or removed from the gaming facili-
2 ty following twenty-four hour prior notice given to an authorized agent
3 of the commission.
4 Notwithstanding any other provision of this section, computer equip-
5 ment used by the slot system operator of a multi-casino progressive slot
6 system to link and communicate with the slot machines of two or more
7 gaming facility licensees for the purpose of calculating and displaying
8 the amount of a progressive jackpot, monitoring the operation of the
9 system, and any other purpose that the commission deems necessary and
10 appropriate to the operation or maintenance of the multi-casino progres-
11 sive slot machine system may, with the prior approval of the commission,
12 be possessed, maintained and operated by the slot system operator either
13 in a restricted area on the premises of a gaming facility or in a secure
14 facility inaccessible to the public and specifically designed for that
15 purpose off the premises of a gaming facility with the written permis-
16 sion of the commission. Notwithstanding the foregoing, a person may,
17 with the prior approval of the commission and under such terms and
18 conditions as may be required by the commission, possess, maintain or
19 exhibit gaming equipment in any other area of the gaming facility,
20 provided that such equipment is used for nongaming purposes. Notwith-
21 standing any other provision of this article to the contrary, the
22 commission may, by regulation, authorize the linking of slot machines of
23 one or more gaming facility licensees and slot machines located in casi-
24 nos licensed by another state of the United States. Wagering and account
25 information for a multi-state slot system shall be transmitted by the
26 operator of such multi-state slot system to either a restricted area on
27 the premises of a gaming facility or to a secure facility inaccessible
28 to the public and specifically designed for that purpose with the writ-
29 ten permission of the commission, and from there to slot machines of
30 gaming facility licensees, provided all locations are approved by the
31 commission.
32 3. Each gaming facility shall contain a count room and such other
33 secure facilities as may be required by the commission for the counting
34 and storage of cash, coins, tokens, checks, plaques, gaming vouchers,
35 coupons, and other devices or items of value used in wagering and
36 approved by the commission that are received in the conduct of gaming
37 and for the inspection, counting and storage of dice, cards, chips and
38 other representatives of value. The commission shall promulgate regu-
39 lations for the security of drop boxes and other devices in which the
40 foregoing items are deposited at the gaming tables or in slot machines,
41 and all areas wherein such boxes and devices are kept while in use,
42 which regulations may include certain locking devices. Said drop boxes
43 and other devices shall not be brought into or removed from a gaming
44 facility, or locked or unlocked, except at such times, in such places,
45 and according to such procedures as the commission may require.
46 4. All chips used in gaming shall be of such size and uniform color by
47 denomination as the commission shall require by regulation.
48 5. All gaming shall be conducted according to rules promulgated by the
49 commission. All wagers and pay-offs of winning wagers shall be made
50 according to rules promulgated by the commission, which shall establish
51 such limitations as may be necessary to assure the vitality of casino
52 operations and fair odds to patrons. Each slot machine shall have a
53 minimum payout of eighty-five percent.
54 6. Each gaming facility licensee shall make available in printed form
55 to any patron upon request the complete text of the rules of the commis-
56 sion regarding games and the conduct of gaming, pay-offs of winning
S. 5883 36 A. 8101
1 wagers, an approximation of the odds of winning for each wager, and such
2 other advice to the player as the commission shall require. Each gaming
3 facility licensee shall prominently post within a casino, according to
4 regulations of the commission such information about gaming rules, pay-
5 offs of winning wagers, the odds of winning for each wager, and such
6 other advice to the player as the commission shall require.
7 7. Each gaming table shall be equipped with a sign indicating the
8 permissible minimum and maximum wagers pertaining thereto. It shall be
9 unlawful for a gaming facility licensee to require any wager to be
10 greater than the stated minimum or less than the stated maximum;
11 provided, however, that any wager actually made by a patron and not
12 rejected by a gaming facility licensee prior to the commencement of play
13 shall be treated as a valid wager.
14 8. Testing of slot machines and associated devices. (a) Except as
15 herein provided, no slot machine shall be used to conduct gaming unless
16 it is identical in all electrical, mechanical and other aspects to a
17 model thereof which has been specifically tested and licensed for use by
18 the commission. The commission shall also test or cause to be tested any
19 other gaming device, gaming equipment, gaming-related device or gross-
20 revenue related device, such as a slot management system, electronic
21 transfer credit system or gaming voucher system as it deems appropriate.
22 In its discretion and for the purpose of expediting the approval proc-
23 ess, the commission may utilize the services of a private testing labo-
24 ratory that has obtained a plenary license as a casino vendor enterprise
25 to perform the testing, and may also utilize applicable data from any
26 such private testing laboratory or from a governmental agency of a state
27 authorized to regulate slot machines and other gaming devices, gaming
28 equipment, gaming-related devices and gross-revenue related devices used
29 in gaming, if the private testing laboratory or governmental agency uses
30 a testing methodology substantially similar to the methodology approved
31 or utilized by the commission. The commission, in its discretion, may
32 rely upon the data provided by the private testing laboratory or govern-
33 mental agency and adopt the conclusions of such private testing labora-
34 tory or governmental agency regarding any submitted device.
35 (b) Except as otherwise provided in paragraph (e) of this subdivision,
36 the commission shall, within sixty days of its receipt of a complete
37 application for the testing of a slot machine or other gaming equipment
38 model, approve or reject the slot machine or other gaming equipment
39 model. In so doing, the commission shall specify whether and to what
40 extent any data from a private testing laboratory or governmental agency
41 of a state was used in reaching its conclusions and recommendation. If
42 the commission is unable to complete the testing of a slot machine or
43 other gaming equipment model within this sixty day period, the commis-
44 sion may conditionally approve the slot machine or other gaming equip-
45 ment model for test use by a gaming facility licensee provided that the
46 commission represents that the use of the slot machine or other gaming
47 equipment model will not have a direct and materially adverse impact on
48 the integrity of gaming or the control of gross revenue. The commission
49 shall give priority to the testing of slot machines or other gaming
50 equipment that a gaming facility licensee has certified it will use in
51 its gaming facility in this state.
52 (c) The commission shall, by regulation, establish such technical
53 standards for licensure of slot machines, including mechanical and elec-
54 trical reliability, security against tampering, the comprehensibility of
55 wagering, and noise and light levels, as it may deem necessary to
56 protect the player from fraud or deception and to insure the integrity
S. 5883 37 A. 8101
1 of gaming. The denominations of such machines shall be set by the licen-
2 see; the licensee shall simultaneously notify the commission of the
3 settings.
4 (d) The commission shall, by regulation, determine the permissible
5 number and density of slot machines in a licensed gaming facility so as
6 to:
7 (1) promote optimum security for gaming facility operations;
8 (2) avoid deception or frequent distraction to players at gaming
9 tables;
10 (3) promote the comfort of patrons;
11 (4) create and maintain a gracious playing environment in the gaming
12 facility; and
13 (5) encourage and preserve competition in gaming facility operations
14 by assuring that a variety of gaming opportunities is offered to the
15 public.
16 Any such regulation promulgated by the commission which determines the
17 permissible number and density of slot machines in a licensed gaming
18 facility shall provide that all casinos shall be included in any calcu-
19 lation of the permissible number and density of slot machines in a
20 licensed gaming facility.
21 (e) Any new gaming equipment that is submitted for testing to the
22 commission or to a state licensed independent testing laboratory prior
23 to or simultaneously with submission of such new equipment for testing
24 in a jurisdiction other than this state, may, consistent with regu-
25 lations promulgated by the commission, be deployed by a gaming facility
26 licensee on the casino fourteen days after submission of such equipment
27 for testing. If the gaming facility or casino vendor enterprise licensee
28 has not received approval for the equipment fourteen days after
29 submission for testing, any interested gaming facility licensee may,
30 consistent with commission regulations, deploy the equipment on a field
31 test basis, unless otherwise directed by the executive director.
32 9. It shall be unlawful for any person to exchange or redeem chips for
33 anything whatsoever, except for currency, negotiable personal checks,
34 negotiable counter checks, other chips, coupons, slot vouchers or
35 complimentary vouchers distributed by the gaming facility licensee, or,
36 if authorized by regulation of the commission, a valid charge to a cred-
37 it or debit card account. A gaming facility licensee shall, upon the
38 request of any person, redeem that licensee's gaming chips surrendered
39 by that person in any amount over one hundred dollars with a check drawn
40 upon the licensee's account at any banking institution in this state and
41 made payable to that person.
42 10. It shall be unlawful for any gaming facility licensee or its
43 agents or employees to employ, contract with, or use any shill or barker
44 to induce any person to enter a gaming facility or play at any game or
45 for any purpose whatsoever.
46 11. It shall be unlawful for a dealer in any authorized game in which
47 cards are dealt to deal cards by hand or other than from a device
48 specifically designed for that purpose, unless otherwise permitted by
49 the rules of the commission.
50 § 1336. Certain wagering prohibited. 1. It shall be unlawful for any
51 casino key employee licensee to wager in any gaming facility in this
52 state.
53 2. It shall be unlawful for any other employee of a gaming facility
54 licensee who, in the judgment of the commission, is directly involved
55 with the conduct of gaming operations, including but not limited to
56 dealers, floor persons, box persons, security and surveillance employ-
S. 5883 38 A. 8101
1 ees, to engage in gambling in any gaming facility in which the employee
2 is employed or in any other gaming facility in this state which is owned
3 or operated by the gaming facility licensee or an affiliated licensee.
4 3. The prohibition against wagering set forth in subdivisions one and
5 two of this section shall continue for a period of thirty days commenc-
6 ing upon the date that the employee either leaves employment with a
7 gaming facility licensee or is terminated from employment with a gaming
8 facility licensee.
9 § 1337. Gratuities. 1. It shall be unlawful for any casino key
10 employee or boxman, floorman, or any other gaming employee who shall
11 serve in a supervisory position to solicit or accept, and for any other
12 gaming employee to solicit, any tip or gratuity from any player or
13 patron at the gaming facility where he is employed.
14 2. A dealer may accept tips or gratuities from a patron at the table
15 at which such dealer is conducting play, subject to the provisions of
16 this section. All such tips or gratuities shall be immediately deposit-
17 ed in a lockbox reserved for that purpose, unless the tip or gratuity is
18 authorized by a patron utilizing an automated wagering system approved
19 by the commission. All tips or gratuities shall be accounted for, and
20 placed in a pool for distribution pro rata among the dealers, with the
21 distribution based upon the number of hours each dealer has worked,
22 except that the commission may, by regulation, permit a separate pool to
23 be established for dealers in the game of poker, or may permit tips or
24 gratuities to be retained by individual dealers in the game of poker.
25 3. Notwithstanding the provisions of subdivision one of this section,
26 a gaming facility licensee may require that a percentage of the prize
27 pool offered to participants pursuant to an authorized poker tournament
28 be withheld for distribution to the tournament dealers as tips or gratu-
29 ities as the commission by regulation may approve.
30 § 1338. Limitation on certain financial access. In order to protect
31 the public interest, the commission shall adopt regulations that include
32 provisions that:
33 1. limit the number and location of and maximum withdrawal amounts
34 from automated teller machines;
35 2. prohibit authorized automated teller machines from accepting elec-
36 tronic benefit cards, debit cards, or similar negotiable instruments
37 issued by the state or political subdivisions for the purpose of access-
38 ing temporary public assistance;
39 3. prohibit the use of specified negotiable instruments at gaming
40 facilities and the use of credit cards, debit cards, and similar devices
41 in slot machines or at table games; and
42 4. prohibit consumers from cashing paychecks at gaming facilities.
43 § 1339. Credit. 1. Except as otherwise provided in this section, no
44 gaming facility licensee or any person licensed under this article, and
45 no person acting on behalf of or under any arrangement with a gaming
46 facility licensee or other person licensed under this article, shall:
47 (a) Cash any check, make any loan, or otherwise provide or allow to
48 any person any credit or advance of anything of value or which repres-
49 ents value to enable any person to take part in gaming activity as a
50 player; or
51 (b) Release or discharge any debt, either in whole or in part, or make
52 any loan which represents any losses incurred by any player in gaming
53 activity, without maintaining a written record thereof in accordance
54 with the rules of the commission.
55 2. No gaming facility licensee or any person licensed under this arti-
56 cle, and no person acting on behalf of or under any arrangement with a
S. 5883 39 A. 8101
1 gaming facility licensee or other person licensed under this article,
2 may accept a check, other than a recognized traveler's check or other
3 cash equivalent from any person to enable such person to take part in
4 gaming activity as a player, or may give cash or cash equivalents in
5 exchange for such check unless:
6 (a) The check is made payable to the gaming facility licensee;
7 (b) The check is dated, but not postdated;
8 (c) The check is presented to the cashier or the cashier's represen-
9 tative at a location in the gaming facility approved by the commission
10 and is exchanged for cash or slot tokens which total an amount equal to
11 the amount for which the check is drawn, or the check is presented to
12 the cashier's representative at a gaming table in exchange for chips
13 which total an amount equal to the amount for which the check is drawn;
14 and
15 (d) The regulations concerning check cashing procedures are observed
16 by the gaming facility licensee and its employees and agents. Nothing
17 in this subdivision shall be deemed to preclude the establishment of an
18 account by any person with a gaming facility licensee by a deposit of
19 cash, recognized traveler's check or other cash equivalent, or a check
20 which meets the requirements of subdivision seven of this section, or to
21 preclude the withdrawal, either in whole or in part, of any amount
22 contained in such account.
23 3. When a gaming facility licensee or other person licensed under this
24 article, or any person acting on behalf of or under any arrangement with
25 a gaming facility licensee or other person licensed under this article,
26 cashes a check in conformity with the requirements of subdivision two of
27 this section, the gaming facility licensee shall cause the deposit of
28 such check in a bank for collection or payment, or shall require an
29 attorney or casino key employee with no incompatible functions to pres-
30 ent such check to the drawer's bank for payment, within:
31 (a) seven calendar days of the date of the transaction for a check in
32 an amount of one thousand dollars or less;
33 (b) fourteen calendar days of the date of the transaction for a check
34 in an amount greater than one thousand dollars but less than or equal to
35 five thousand dollars; or
36 (c) forty-five calendar days of the date of the transaction for a
37 check in an amount greater than five thousand dollars.
38 Notwithstanding the foregoing, the drawer of the check may redeem the
39 check by exchanging cash, cash equivalents, chips, or a check which
40 meets the requirements of subdivision seven of this section in an amount
41 equal to the amount for which the check is drawn; or he or she may
42 redeem the check in part by exchanging cash, cash equivalents, chips, or
43 a check which meets the requirements of subdivision seven of this
44 section and another check which meets the requirements of subdivision
45 two of this section for the difference between the original check and
46 the cash, cash equivalents, chips, or check tendered; or he or she may
47 issue one check which meets the requirements of subdivision two of this
48 section in an amount sufficient to redeem two or more checks drawn to
49 the order of the gaming facility licensee. If there has been a partial
50 redemption or a consolidation in conformity with the provisions of this
51 subdivision, the newly issued check shall be delivered to a bank for
52 collection or payment or presented to the drawer's bank for payment by
53 an attorney or casino key employee with no incompatible functions within
54 the period herein specified. No gaming facility licensee or any person
55 licensed or registered under this article, and no person acting on
56 behalf of or under any arrangement with a gaming facility licensee or
S. 5883 40 A. 8101
1 other person licensed under this article, shall accept any check or
2 series of checks in redemption or consolidation of another check or
3 checks in accordance with this subdivision for the purpose of avoiding
4 or delaying the deposit of a check in a bank for collection or payment
5 or the presentment of the check to the drawer's bank within the time
6 period prescribed by this subdivision.
7 In computing a time period prescribed by this subdivision, the last
8 day of the period shall be included unless it is a Saturday, Sunday, or
9 a state or federal holiday, in which event the time period shall run
10 until the next business day.
11 4. No gaming facility licensee or any other person licensed or regis-
12 tered under this article, or any other person acting on behalf of or
13 under any arrangement with a gaming facility licensee or other person
14 licensed or registered under this article, shall transfer, convey, or
15 give, with or without consideration, a check cashed in conformity with
16 the requirements of this section to any person other than:
17 (a) The drawer of the check upon redemption or consolidation in
18 accordance with subdivision three of this section;
19 (b) A bank for collection or payment of the check;
20 (c) A purchaser of the gaming facility license as approved by the
21 commission; or
22 (d) An attorney or casino key employee with no incompatible functions
23 for presentment to the drawer's bank.
24 The limitation on transferability of checks imposed herein shall apply
25 to checks returned by any bank to the gaming facility licensee without
26 full and final payment.
27 5. No person other than a casino key employee licensed under this
28 article or a gaming employee registered under this article may engage
29 in efforts to collect upon checks that have been returned by banks with-
30 out full and final payment, except that an attorney-at-law representing
31 a gaming facility licensee may bring action for such collection.
32 6. Notwithstanding the provisions of any law to the contrary, checks
33 cashed in conformity with the requirements of this article shall be
34 valid instruments, enforceable at law in the courts of this state. Any
35 check cashed, transferred, conveyed or given in violation of this arti-
36 cle shall be invalid and unenforceable for the purposes of collection
37 but shall be included in the calculation of gross gaming revenue.
38 7. Notwithstanding the provisions of subdivision two of this section
39 to the contrary, a gaming facility licensee may accept a check from a
40 person to enable the person to take part in gaming activity as a player,
41 may give cash or cash equivalents in exchange for such a check, or may
42 accept a check in redemption or partial redemption of a check issued in
43 accordance with subdivision two of this section, provided that:
44 (a) (1) The check is issued by a gaming facility licensee, is made
45 payable to the person presenting the check, and is issued for a purpose
46 other than employment compensation or as payment for goods or services
47 rendered;
48 (2) The check is issued by a banking institution which is chartered in
49 a country other than the United States on its account at a federally
50 chartered or state-chartered bank and is made payable to "cash," "bear-
51 er," a gaming facility licensee, or the person presenting the check;
52 (3) The check is issued by a banking institution which is chartered in
53 the United States on its account at another federally chartered or
54 state-chartered bank and is made payable to "cash," "bearer," a gaming
55 facility licensee, or the person presenting the check;
S. 5883 41 A. 8101
1 (4) The check is issued by a slot system operator or pursuant to an
2 annuity jackpot guarantee as payment for winnings from a multi-casino
3 progressive slot machine system jackpot; or
4 (5) The check is issued by an entity that holds a gaming facility
5 license in any jurisdiction, is made payable to the person presenting
6 the check, and is issued for a purpose other than employment compen-
7 sation or as payment for goods or services rendered;
8 (b) The check is identifiable in a manner approved by the commission
9 as a check authorized for acceptance pursuant to paragraph (a) of this
10 subdivision;
11 (c) The check is dated, but not postdated;
12 (d) The check is presented to the cashier or the cashier's represen-
13 tative by the original payee and its validity is verified by the drawer
14 in the case of a check drawn pursuant to subparagraph one of paragraph
15 (a) of this subdivision, or the check is verified in accordance with
16 regulations promulgated under this article in the case of a check issued
17 pursuant to subparagraph two, three, four or five of paragraph (a) of
18 this subdivision; and
19 (e) The regulations concerning check-cashing procedures are observed
20 by the gaming facility licensee and its employees and agents. No gaming
21 facility licensee shall issue a check for the purpose of making a loan
22 or otherwise providing or allowing any advance or credit to a person to
23 enable the person to take part in gaming activity as a player.
24 8. Notwithstanding the provisions of subdivisions two and three of
25 this section to the contrary, a gaming facility licensee may, at a
26 location outside the gaming facility, accept a personal check or checks
27 from a person for up to five thousand dollars in exchange for cash or
28 cash equivalents, and may, at such locations within the gaming facility
29 as may be permitted by the commission, accept a personal check or checks
30 for up to five thousand dollars in exchange for cash, cash equivalents,
31 tokens, chips, or plaques to enable the person to take part in gaming
32 activity as a player, provided that:
33 (a) The check is drawn on the patron's bank or brokerage cash manage-
34 ment account;
35 (b) The check is for a specific amount;
36 (c) The check is made payable to the gaming facility licensee;
37 (d) The check is dated but not post-dated;
38 (e) The patron's identity is established by examination of one of the
39 following: valid credit card, driver's license, passport, or other form
40 of identification credential which contains, at a minimum, the patron's
41 signature;
42 (f) The check is restrictively endorsed "For Deposit Only" to the
43 gaming facility licensee's bank account and deposited on the next bank-
44 ing day following the date of the transaction;
45 (g) The total amount of personal checks accepted by any one licensee
46 pursuant to this subdivision that are outstanding at any time, including
47 the current check being submitted, does not exceed five thousand
48 dollars;
49 (h) The gaming facility licensee has a system of internal controls in
50 place that will enable it to determine the amount of outstanding
51 personal checks received from any patron pursuant to this subdivision at
52 any given point in time; and
53 (i) The gaming facility licensee maintains a record of each such tran-
54 saction in accordance with regulations established by the commission.
55 9. A person may request the commission to put that person's name on a
56 list of persons to whom the extension of credit by a gaming facility as
S. 5883 42 A. 8101
1 provided in this section would be prohibited by submitting to the
2 commission the person's name, address, and date of birth. The person
3 does not need to provide a reason for this request. The commission shall
4 provide this list to the credit department of each gaming facility;
5 neither the commission nor the credit department of a gaming facility
6 shall divulge the names on this list to any person or entity other than
7 those provided for in this subdivision. If such a person wishes to have
8 that person's name removed from the list, the person shall submit this
9 request to the commission, which shall so inform the credit departments
10 of gaming facilities no later than three days after the submission of
11 the request.
12 § 1340. Alcoholic beverages. 1. Notwithstanding any law to the
13 contrary, the authority to grant any license or permit for, or to permit
14 or prohibit the presence of, alcoholic beverages in, on, or about any
15 premises licensed as part of a gaming facility shall exclusively be
16 vested in the commission.
17 2. Unless otherwise stated, and except where inconsistent with the
18 purpose or intent of this article or the common understanding of usage
19 thereof, definitions contained in the alcoholic beverage control law
20 shall apply to this section. Any definition contained therein shall
21 apply to the same word in any form.
22 3. Notwithstanding any provision of the alcoholic beverage control law
23 to the contrary, the commission shall have the functions, powers and
24 duties of the state liquor authority but only with respect to the issu-
25 ance, renewal, transfer, suspension and revocation of licenses and
26 permits for the sale of alcoholic beverages at retail for on-premise
27 consumption by any holder of a gaming facility license issued by the
28 commission including, without limitation, the power to fine or penalize
29 a casino alcoholic beverage licensee or permittee; to enforce all stat-
30 utes, laws, rulings, or regulations relating to such license or permit;
31 and to collect license and permit fees and establish application stand-
32 ards therefor.
33 4. Except as otherwise provided in this section, the provisions of the
34 alcoholic beverage control law and the rules, regulations, bulletins,
35 orders, and advisories promulgated by the state liquor authority shall
36 apply to any gaming facility holding a license or permit to sell alco-
37 holic beverages under this section.
38 5. Notwithstanding any provision to the contrary, the commission may
39 promulgate any regulations and special rulings and findings as may be
40 necessary for the proper enforcement, regulation, and control of alco-
41 holic beverages in gaming facilities when the commission finds that the
42 uniqueness of gaming facility operations and the public interest require
43 that such regulations, rulings, and findings are appropriate.
44 6. Notwithstanding any provision of law to the contrary, any manufac-
45 turer or wholesaler licensed under the alcoholic beverage control law
46 may as authorized under the alcoholic beverage control law, sell alco-
47 holic beverages to a gaming facility holding a retail license or permit
48 to sell alcoholic beverages for consumption on the premises issued under
49 this section, and any gaming facility holding a retail license or permit
50 to sell alcoholic beverages issued under this section may, as authorized
51 under the alcoholic beverage control law, purchase alcoholic beverages
52 from a manufacturer or wholesaler licensed under the alcoholic beverage
53 control law.
54 7. It shall be unlawful for any person, including any gaming facility
55 licensee or any of its lessees, agents or employees, to expose for sale,
56 solicit or promote the sale of, possess with intent to sell, sell, give,
S. 5883 43 A. 8101
1 dispense, or otherwise transfer or dispose of alcoholic beverages in, on
2 or about any portion of the premises of a gaming facility, unless said
3 person possesses a license or permit issued under this section.
4 8. It shall be unlawful for any person holding a license or permit to
5 sell alcoholic beverages under this section to expose, possess, sell,
6 give, dispense, transfer, or otherwise dispose of alcoholic beverages,
7 other than within the terms and conditions of such license or permit,
8 the provisions of the alcoholic beverage control law, the rules and
9 regulations promulgated by the state liquor authority, and, when appli-
10 cable, the regulations promulgated pursuant to this article. Notwith-
11 standing any other provision of law to the contrary the holder of a
12 license or permit issued under this section may be authorized to provide
13 complimentary alcoholic beverages under regulations issued by the
14 commission.
15 9. In issuing a casino alcoholic beverage license or permit, the
16 commission shall describe the scope of the particular license or permit,
17 and the restrictions and limitations thereon as it deems necessary and
18 reasonable. The commission may, in a single casino alcoholic beverage
19 license, permit the holder of such a license or permit to perform any or
20 all of the following activities, subject to applicable laws, rules and
21 regulations:
22 (a) To sell any alcoholic beverage by the glass or other open recepta-
23 cle including, but not limited to, an original container, for on-premise
24 consumption within a facility; provided, however, that no alcoholic
25 beverage shall be sold or given for consumption; delivered or otherwise
26 brought to a patron; or consumed at a gaming table unless so requested
27 by the patron.
28 (b) To sell any alcoholic beverage by the glass or other open recepta-
29 cle for on-premise consumption within a gaming facility.
30 (c) To sell any alcoholic beverage by the glass or other open recepta-
31 cle or in original containers from a room service location within an
32 enclosed room not in a gaming facility; provided, however, that any sale
33 of alcoholic beverages is delivered only to a guest room or to any other
34 room in the gaming facility authorized by the commission.
35 (d) To possess or to store alcoholic beverages in original containers
36 intended but not actually exposed for sale at a fixed location on a
37 gaming facility premises, not in a gaming facility; and to transfer or
38 deliver such alcoholic beverages only to a location approved pursuant to
39 this section; provided, however, that no access to or from a storage
40 location shall be permitted except during the normal course of business
41 by employees or agents of the licensee, or by licensed employees or
42 agents of wholesalers or distributors licensed pursuant to the alcoholic
43 beverage control law and any applicable rules and regulations; and
44 provided further, however, that no provision of this section shall be
45 construed to prohibit a casino alcoholic beverage licensee from obtain-
46 ing an off-site storage license from the state liquor authority.
47 10. The commission may revoke, suspend, refuse to renew or refuse to
48 transfer any casino alcoholic beverage license or permit, and may fine
49 or penalize the holder of any alcoholic beverage license or permit
50 issued under this section for violations of any provision of the alco-
51 holic beverage control law, the rules and regulations promulgated by the
52 state liquor authority, and the regulations promulgated by the commis-
53 sion.
54 11. Jurisdiction over all alcoholic beverage licenses and permits
55 previously issued with respect to the gaming facility is hereby vested
56 in the commission, which in its discretion may by regulation provide for
S. 5883 44 A. 8101
1 the conversion thereof into a casino alcoholic beverage license or
2 permit as provided in this section.
3 12. (a) Prior to issuing any license under this section, the commis-
4 sion, or its designee, shall consult with the state liquor authority, or
5 its designee, to confirm that such application and such gaming facility
6 conforms with all applicable provisions of the alcoholic beverage
7 control law, and all applicable rules, regulations, bulletins, orders
8 and advisories promulgated by the state liquor authority;
9 (b) Prior to commencing enforcement actions against any gaming facili-
10 ty licensed under this section, the commission, or its designee, shall
11 consult with the state liquor authority, or its designee, with respect
12 to the application of the applicable provisions of the alcoholic bever-
13 age control law, and all applicable rules, regulations, bulletins,
14 orders and advisories promulgated by the state liquor authority on the
15 alleged conduct of such licensee; and
16 (c) The commission, or its designee, shall consult with the state
17 liquor authority, or its designee, on a regular basis, but no less than
18 once every three months, regarding any pending applications and enforce-
19 ment matters.
20 § 1341. Licensee leases and contracts. 1. Unless otherwise provided
21 in this subdivision, no agreement shall be lawful which provides for the
22 payment, however defined, of any direct or indirect interest, percentage
23 or share of: any money or property gambled at a gaming facility; any
24 money or property derived from gaming activity; or any revenues, profits
25 or earnings of a gaming facility. Notwithstanding the foregoing:
26 (a) Agreements which provide only for the payment of a fixed sum which
27 is in no way affected by the amount of any such money, property, reven-
28 ues, profits or earnings shall not be subject to the provisions of this
29 subdivision; and receipts, rentals or charges for real property,
30 personal property or services shall not lose their character as payments
31 of a fixed sum because of contract, lease, or license provisions for
32 adjustments in charges, rentals or fees on account of changes in taxes
33 or assessments, cost-of-living index escalations, expansion or improve-
34 ment of facilities, or changes in services supplied.
35 (b) Agreements between a gaming facility licensee and a junket enter-
36 prise or junket representative licensed, qualified or registered in
37 accordance with the provisions this article and the regulations of the
38 commission which provide for the compensation of the junket enterprise
39 or junket representative by the gaming facility licensee based upon the
40 actual gaming activities of a patron procured or referred by the junket
41 enterprise or junket representative shall be lawful if filed with the
42 commission prior to the conduct of any junket that is governed by the
43 agreement.
44 (c) Agreements between a gaming facility licensee and its employees
45 which provide for gaming employee or casino key employee profit sharing
46 shall be lawful if the agreement is in writing and filed with the
47 commission prior to its effective date. Such agreements may be reviewed
48 by the commission.
49 (d) Agreements to lease an approved gaming facility or the land there-
50 under and agreements for the complete management of all gaming oper-
51 ations in a gaming facility shall not be subject to the provisions of
52 this subdivision.
53 (e) Agreements which provide for percentage charges between the gaming
54 facility licensee and a holding company or intermediary company of the
55 gaming facility licensee shall be in writing and filed with the commis-
56 sion but shall not be subject to the provisions of this subdivision.
S. 5883 45 A. 8101
1 (f) Written agreements relating to the operation of multi-casino or
2 multi-state progressive slot machine systems between one or more gaming
3 facility licensees and a licensed casino vendor enterprise or an eligi-
4 ble applicant for such license, which provide for an interest, percent-
5 age or share of the gaming facility licensee's revenues, profits or
6 earnings from the operation of such multi-casino or multi-state progres-
7 sive slot machines to be paid to the casino vendor enterprise licensee
8 or applicant shall not be subject to the provisions of this subdivision
9 if the agreements are filed with and approved by the commission.
10 2. Each gaming facility applicant or licensee shall maintain, in
11 accordance with the rules of the commission, a record of each written or
12 unwritten agreement regarding the realty, construction, maintenance, or
13 business of a proposed or existing gaming facility or related facility.
14 The foregoing obligation shall apply regardless of whether the gaming
15 facility applicant or licensee is a party to the agreement. Any such
16 agreement may be reviewed by the commission on the basis of the reason-
17 ableness of its terms, including the terms of compensation, and of the
18 qualifications of the owners, officers, employees, and directors of any
19 enterprise involved in the agreement, which qualifications shall be
20 reviewed according to the standards enumerated in section one thousand
21 three hundred twenty-three of this article. If the commission disap-
22 proves such an agreement or the owners, officers, employees, or direc-
23 tors of any enterprise involved therein, the commission may require its
24 termination.
25 Every agreement required to be maintained, and every related agreement
26 the performance of which is dependent upon the performance of any such
27 agreement, shall be deemed to include a provision to the effect that, if
28 the commission shall require termination of an agreement, such termi-
29 nation shall occur without liability on the part of the gaming facility
30 applicant or licensee or any qualified party to the agreement or any
31 related agreement. Failure expressly to include such a provision in the
32 agreement shall not constitute a defense in any action brought to termi-
33 nate the agreement. If the agreement is not maintained or presented to
34 the commission in accordance with commission regulations, or the disap-
35 proved agreement is not terminated, the commission may pursue any remedy
36 or combination of remedies provided in this article.
37 For the purposes of this subdivision, "gaming facility applicant"
38 includes any person required to hold a gaming facility license who has
39 applied to the commission for a gaming facility license or any approval
40 required.
41 3. Nothing in this article shall be deemed to permit the transfer of
42 any license, or any interest in any license, or any certificate of
43 compliance or any commitment or reservation without the approval of the
44 commission.
45 § 1342. Required exclusion of certain persons. 1. The commission
46 shall, by regulation, provide for the establishment of a list of persons
47 who are to be excluded or ejected from any licensed gaming facility.
48 Such provisions shall define the standards for exclusion, and shall
49 include standards relating to persons:
50 (a) Who are career or professional offenders as defined by regulations
51 promulgated hereunder; or
52 (b) Who have been convicted of a criminal offense under the laws of
53 any state or of the United States, which is punishable by more than
54 twelve months in prison, or any crime or offense involving moral turpi-
55 tude.
S. 5883 46 A. 8101
1 The commission shall promulgate definitions establishing those catego-
2 ries of persons who shall be excluded pursuant to this section, includ-
3 ing cheats and persons whose privileges for licensure or registration
4 have been revoked.
5 2. Any enumerated class listed in subdivision one of section two
6 hundred ninety-six of the human rights law shall not be a reason for
7 placing the name of any person upon such list.
8 3. The commission may impose sanctions upon a licensed gaming facility
9 or individual licensee or registrant in accordance with the provisions
10 of this article if such gaming facility or individual licensee or regis-
11 trant knowingly fails to exclude or eject from the premises of any
12 licensed gaming facility any person placed by the commission on the list
13 of persons to be excluded or ejected.
14 4. Any list compiled by the commission of persons to be excluded or
15 ejected shall not be deemed an all-inclusive list, and licensed gaming
16 facilities shall have a duty to keep from their premises persons known
17 to them to be within the classifications declared in subdivisions one
18 and two of this section and the regulations promulgated thereunder, or
19 known to them to be persons whose presence in a licensed gaming facility
20 would be inimical to the interest of the state or of licensed gaming
21 therein, or both, as defined in standards established by the commission.
22 5. Prior to placing the name of any person on a list pursuant to this
23 section, the commission shall serve notice of such fact and of the
24 opportunity for a hearing to such person by personal service or by
25 certified mail at the last known address of such person.
26 6. Within thirty days after service of the petition in accordance with
27 subdivision five of this section, the person named for exclusion or
28 ejection may demand a hearing before the executive director or the exec-
29 utive director's designee, at which hearing the executive director or
30 the executive director's designee shall have the affirmative obligation
31 to demonstrate by substantial evidence that the person named for exclu-
32 sion or ejection satisfies the criteria for exclusion established by
33 this section and the applicable regulations. Failure to demand such a
34 hearing within thirty days after service shall preclude a person from
35 having an administrative hearing, but shall in no way affect his or her
36 right to judicial review as provided herein.
37 7. The commission may make a preliminary placement on the list of a
38 person named in a petition for exclusion or ejection pending completion
39 of a hearing on the petition. The hearing on the application for prelim-
40 inary placement shall be a limited proceeding at which the commission
41 shall have the affirmative obligation to demonstrate by substantial
42 evidence that the person satisfies the criteria for exclusion estab-
43 lished by this section and the applicable regulations. If a person has
44 been placed on the list as a result of an application for preliminary
45 placement, unless otherwise agreed by the executive director and the
46 named person, a hearing on the petition for exclusion or ejection shall
47 be initiated within thirty days after the receipt of a demand for such
48 hearing or the date of preliminary placement on the list, whichever is
49 later.
50 8. If, upon completion of the hearing on the petition for exclusion or
51 ejection, the executive director determines that the person named there-
52 in does not satisfy the criteria for exclusion established by this
53 section and the applicable regulations, the executive director shall
54 issue an order denying the petition. If the person named in the petition
55 for exclusion or ejection had been placed on the list as a result of an
56 application for preliminary placement, the executive director shall
S. 5883 47 A. 8101
1 notify all gaming facility licensees of the person's removal from the
2 list.
3 9. If, upon completion of a hearing on the petition for exclusion or
4 ejection, the executive director determines that placement of the name
5 of the person on the exclusion list is appropriate, the executive direc-
6 tor shall make and enter an order to that effect, which order shall be
7 served on all gaming facility licensees. Such order shall be subject to
8 review by the commission in accordance with regulations promulgated
9 thereunder, which final decision shall be subject to review pursuant to
10 article seventy-eight of the civil practice law and rules.
11 § 1343. Exclusion, ejection of certain persons. 1. A gaming facility
12 licensee may exclude or eject from its gaming facility any person who is
13 known to it to have been convicted of a crime or disorderly conduct
14 committed in or on the premises of any gaming facility.
15 2. Nothing in this section or in any other law of this state shall
16 limit the right of a gaming facility licensee to exercise its common law
17 right to exclude or eject permanently from its gaming facility any
18 person who disrupts the operations of its premises, threatens the secu-
19 rity of its premises or its occupants, or is disorderly or intoxicated.
20 § 1344. List of persons self-excluded from gaming activities. 1. The
21 commission shall provide by regulation for the establishment of a list
22 of persons self-excluded from gaming activities at all licensed gaming
23 facilities. Any person may request placement on the list of self-exclud-
24 ed persons by acknowledging in a manner to be established by the commis-
25 sion that the person is a problem gambler and by agreeing that, during
26 any period of voluntary exclusion, the person may not collect any
27 winnings or recover any losses resulting from any gaming activity at
28 such gaming facilities.
29 2. The regulations of the commission shall establish procedures for
30 placements on, and removals from, the list of self-excluded persons.
31 Such regulations shall establish procedures for the transmittal to
32 licensed gaming facilities of identifying information concerning self-
33 excluded persons, and shall require licensed gaming facilities to estab-
34 lish procedures designed, at a minimum, to remove self-excluded persons
35 from targeted mailings or other forms of advertising or promotions and
36 deny self-excluded persons access to credit, complimentaries, check
37 cashing privileges, club programs, and other similar benefits.
38 3. A licensed gaming facility or employee thereof acting reasonably
39 and in good faith shall not be liable to any self-excluded person or to
40 any other party in any judicial proceeding for any harm, monetary or
41 otherwise, which may arise as a result of:
42 (a) the failure of a licensed gaming facility to withhold gaming priv-
43 ileges from, or restore gaming privileges to, a self-excluded person; or
44 (b) otherwise permitting a self-excluded person to engage in gaming
45 activity in such licensed gaming facility while on the list of self-ex-
46 cluded persons.
47 4. Notwithstanding any other law to the contrary, the commission's
48 list of self-excluded persons shall not be open to public inspection.
49 Nothing herein, however, shall be construed to prohibit a gaming facili-
50 ty licensee from disclosing the identity of persons self-excluded pursu-
51 ant to this section to affiliated gaming entities in this state or other
52 jurisdictions for the limited purpose of assisting in the proper admin-
53 istration of responsible gaming programs operated by such gaming affil-
54 iated entities.
55 5. A licensed gaming facility or employee thereof shall not be liable
56 to any self-excluded person or to any other party in any judicial
S. 5883 48 A. 8101
1 proceeding for any harm, monetary or otherwise, which may arise as a
2 result of disclosure or publication in any manner, other than a willful-
3 ly unlawful disclosure or publication, of the identity of any self-ex-
4 cluded person.
5 § 1345. Excluded person; forfeiture of winnings; other sanctions. 1.
6 A person who is prohibited from gaming in a licensed gaming facility by
7 any order of the executive director, commission or court of competent
8 jurisdiction, including any person on the self-exclusion list pursuant
9 to subdivision one of section one thousand three hundred forty-four of
10 this title, shall not collect, in any manner or proceeding, any winnings
11 or recover any losses arising as a result of any prohibited gaming
12 activity.
13 2. For the purposes this section, any gaming activity in a licensed
14 gaming facility which results in a prohibited person obtaining any money
15 or thing of value from, or being owed any money or thing of value by,
16 the gaming facility shall be considered, solely for purposes of this
17 section, to be a fully executed gambling transaction.
18 3. In addition to any other penalty provided by law, any money or
19 thing of value which has been obtained by, or is owed to, any prohibited
20 person by a licensed gaming facility as a result of wagers made by a
21 prohibited person shall be subject to forfeiture following notice to the
22 prohibited person and opportunity to be heard. A licensed gaming facili-
23 ty shall inform a prohibited person of the availability of such notice
24 on the commission's website when ejecting the prohibited person and
25 seizing any chips, vouchers or other representative of money owed by a
26 gaming facility to the prohibited person as authorized by this subdivi-
27 sion. All forfeited amounts shall be deposited into the commercial
28 gaming revenue fund.
29 4. In any proceeding brought by the commission against a licensee or
30 registrant for a willful violation of the commission's self-exclusion
31 regulations, the commission may order, in addition to any other sanction
32 authorized, an additional fine of double the amount of any money or
33 thing of value obtained by the licensee or registrant from any self-ex-
34 cluded person. Any money or thing of value so forfeited shall be
35 disposed of in the same manner as any money or thing of value forfeited
36 pursuant to subdivision three of this section.
37 § 1346. Labor peace agreements for certain facilities. 1. As used in
38 this section:
39 (a) "Gaming facility" means any gaming facility licensed pursuant to
40 this article or a video lottery gaming facility as may be authorized by
41 paragraph three of subdivision (a) of section one thousand six hundred
42 seventeen-a of the tax law, as amended by section nineteen of the chap-
43 ter of the laws of two thousand thirteen that added this section
44 licensed by the commission. A gaming facility shall not include any
45 horse racing, bingo or charitable games of chance, the state lottery for
46 education, or any gaming facility operating pursuant to the federal
47 Indian Gaming Regulatory Act, 25 U.S.C. § 2710 et seq. A gaming facility
48 shall include any hospitality operation at or related to the gaming
49 facility.
50 (b) "Labor peace agreement" means an agreement enforceable under 29
51 U.S.C. § 185(a) that, at a minimum, protects the state's proprietary
52 interests by prohibiting labor organizations and members from engaging
53 in picketing, work stoppages, boycotts, and any other economic interfer-
54 ence with operation of the relevant gaming facility.
55 (c) "License" means any permit, license, franchise or allowance of the
56 commission and shall include any franchisee or permittee.
S. 5883 49 A. 8101
1 (d) "Proprietary interest" means an economic and non-regulatory inter-
2 est at risk in the financial success of the gaming facility that could
3 be adversely affected by labor-management conflict, including but not
4 limited to property interests, financial investments and revenue shar-
5 ing.
6 2. The state legislature finds that the gaming industry constitutes a
7 vital sector of New York's overall economy and that the state through
8 its operation of lotteries and video lottery facilities and through its
9 ownership of the properties utilized for horse racing by The New York
10 Racing Association Inc. has a significant and ongoing economic and non-
11 regulatory interest in the financial viability and competitiveness of
12 the gaming industry. The state legislature further finds that the award
13 or grant of a license by the commission to operate a gaming facility is
14 a significant state action and that the commission must make prudent and
15 efficient decisions to maximize the benefits and minimize the risks of
16 gaming. The state legislature further recognizes that casino gaming
17 industry integration can provide a vital economic engine to assist,
18 nurture, develop, and promote regional economic development, the state
19 tourism industry and the growth of jobs in the state. Additionally, the
20 state legislature also finds revenues derived directly by the state from
21 such gaming activity will be shared from gross gaming receipts, after
22 payout of prizes but prior to deductions for operational expenses.
23 Therefore, the state legislature finds that the state has a substan-
24 tial and compelling proprietary interest in any license awarded for the
25 operation of a gaming facility within the state.
26 3. The commission shall require any applicant for a gaming facility
27 license who has not yet entered into a labor peace agreement to produce
28 an affidavit stating it shall enter into a labor peace agreement with
29 labor organizations that are actively engaged in representing or
30 attempting to represent gaming or hospitality industry workers in the
31 state. In order for the commission to issue a gaming facility license
32 and for operations to commence, the applicant for a gaming facility
33 license must produce documentation that it has entered into a labor
34 peace agreement with each labor organization that is actively engaged in
35 representing and attempting to represent gaming and hospitality industry
36 workers in the state. The commission shall make the maintenance of such
37 a labor peace agreement an ongoing material condition of licensure.
38 A license holder shall, as a condition of its license, ensure that
39 operations at the gaming facility that are conducted by contractors,
40 subcontractors, licensees, assignees, tenants or subtenants and that
41 involve gaming or hospitality industry employees shall be done under a
42 labor peace agreement containing the same provisions as specified above.
43 4. If otherwise applicable, capital projects undertaken by a gaming
44 facility shall be subject to article eight of the labor law and shall be
45 subject to the enforcement of prevailing wage requirements by the
46 department of labor.
47 5. If otherwise applicable, capital projects undertaken by a gaming
48 facility shall be subject to section one hundred thirty- five of the
49 state finance law.
50 6. If otherwise applicable, any gaming facility entering into a
51 contract for a gaming facility capitol project shall be deemed to be a
52 state agency, and such contract shall be deemed to be a state contract,
53 for purposes of article fifteen-A of the executive law and section two
54 hundred twenty-two of the labor law.
55 TITLE 6
56 TAXATION AND FEES
S. 5883 50 A. 8101
1 Section 1348. Machine and table fees.
2 1349. Regulatory investigatory fees.
3 1350. Additional regulatory costs.
4 1351. Tax on gaming revenues; permissive supplemental fee.
5 1352. Commercial gaming revenue fund.
6 1353. Determination of tax liability.
7 1354. Unclaimed funds.
8 1355. Racing support payments.
9 § 1348. Machine and table fees. In addition to any other tax or fee
10 imposed by this article, there shall be imposed an annual license fee of
11 five hundred dollars for each slot machine and table approved by the
12 commission for use by a gaming licensee at a gaming facility; provided,
13 however, that not sooner than five years after award of an original
14 gaming license, the commission may annually adjust the fee for
15 inflation. The fee shall be imposed as of July first of each year for
16 all approved slot machines and tables on that date and shall be assessed
17 on a pro rata basis for any slot machine or table approved for use ther-
18 eafter.
19 Such assessed fees shall be deposited into the commercial gaming
20 revenue fund established pursuant to section one thousand three hundred
21 fifty-two of this article.
22 § 1349. Regulatory investigatory fees. The commission may establish
23 fees for any investigation into a violation of this article or regu-
24 lation promulgated hereunder by a gaming facility licensee to be paid by
25 the gaming facility licensee including, but not limited to, billable
26 hours by commission staff involved in the investigation and the costs of
27 services, equipment or other expenses that are incurred by the commis-
28 sion during the investigation.
29 § 1350. Additional regulatory costs. 1. Any remaining costs of the
30 commission necessary to maintain regulatory control over gaming facili-
31 ties that are not covered by the fees set forth in section one thousand
32 three hundred forty-nine of this title; any other fees assessed under
33 this article; or any other designated sources of funding, shall be
34 assessed annually on gaming licensees under this article in proportion
35 to the number of gaming positions at each gaming facility. Each gaming
36 licensee shall pay the amount assessed against it within thirty days
37 after the date of the notice of assessment from the commission.
38 2. If the fees collected in section one thousand three hundred forty-
39 nine of this title exceed the cost required to maintain regulatory
40 control, the surplus funds shall be credited in proportional shares
41 against each gaming licensee's next assessment.
42 § 1351. Tax on gaming revenues; permissive supplemental fee. 1. For a
43 gaming facility in zone two, there is hereby imposed a tax on gross
44 gaming revenues. The amount of such tax imposed shall be as follows;
45 provided, however, should a licensee have agreed within its application
46 to supplement the tax with a binding supplemental fee payment exceeding
47 the aforementioned tax rate, such tax and supplemental fee shall apply
48 for a gaming facility:
49 (a) in region two, forty-five percent of gross gaming revenue from
50 slot machines and ten percent of gross gaming revenue from all other
51 sources.
52 (b) in region one, thirty-nine percent of gross gaming revenue from
53 slot machines and ten percent of gross gaming revenue from all other
54 sources.
S. 5883 51 A. 8101
1 (c) in region five, thirty-seven percent of gross gaming revenue from
2 slot machines and ten percent of gross gaming revenue from all other
3 sources.
4 § 1352. Commercial gaming revenue fund. 1. The commission shall pay
5 into an account, to be known as the commercial gaming revenue fund as
6 established pursuant to section ninety-seven-nnnn of the state finance
7 law, under the joint custody of the comptroller and the commissioner of
8 taxation and finance, all taxes and fees imposed by this article; any
9 interest and penalties imposed by the commission relating to those
10 taxes; the appropriate percentage of the value of expired gaming related
11 obligations; all penalties levied and collected by the commission; and
12 the appropriate funds, cash or prizes forfeited from gambling activity.
13 2. The commission shall require at least monthly deposits by the
14 licensee of any payments pursuant to section one thousand three hundred
15 fifty-one of this article, at such times, under such conditions, and in
16 such depositories as shall be prescribed by the state comptroller. The
17 deposits shall be deposited to the credit of the commercial gaming
18 revenue fund as established by section ninety-seven-nnnn of the state
19 finance law. The commission may require a monthly report and reconcil-
20 iation statement to be filed with it on or before the tenth day of each
21 month, with respect to gross revenues and deposits received and made,
22 respectively, during the preceding month.
23 § 1353. Determination of tax liability. The commission may perform
24 audits of the books and records of a gaming facility licensee, at such
25 times and intervals as it deems appropriate, for the purpose of deter-
26 mining the sufficiency of tax or fee payments. If a return or deposit
27 required with regard to obligations imposed is not filed or paid, or if
28 a return or deposit when filed or paid is determined by the commission
29 to be incorrect or insufficient with or without an audit, the amount of
30 tax, fee or deposit due shall be determined by the commission. Notice
31 of such determination shall be given to the licensee liable for the
32 payment of the tax or fee or deposit. Such determination shall finally
33 and irrevocably fix the tax or fee unless the person against whom it is
34 assessed, within thirty days after receiving notice of such determi-
35 nation, shall apply to the commission for a hearing in accordance with
36 the regulations of the commission.
37 § 1354. Unclaimed funds. Unclaimed funds, cash and prizes shall be
38 retained by the gaming facility licensee for the person entitled to the
39 funds, cash or prize for one year after the game in which the funds,
40 cash or prize was won. If no claim is made for the funds, cash or prize
41 within one year, the funds, cash or equivalent cash value of the prize
42 shall be deposited in the commercial gaming revenue fund.
43 § 1355. Racing support payments. 1. If an applicant who possesses a
44 pari-mutuel wagering franchise or license awarded pursuant to article
45 two or three of this chapter, or who possessed in two thousand thirteen
46 a franchise or a license awarded pursuant to article two or three of
47 this chapter or is an articulated entity or such applicant, is issued a
48 gaming facility license pursuant to this article, the licensee shall:
49 (a) Maintain payments made from video lottery gaming operations to the
50 relevant horsemen and breeders organizations at the same dollar level
51 realized in two thousand thirteen, to be adjusted annually pursuant to
52 changes in the consumer price index for all urban consumers, as
53 published annually by the United States department of labor bureau of
54 labor statistics;
S. 5883 52 A. 8101
1 (b) All racetracks locations awarded a gaming facility license shall
2 maintain racing activity and race dates pursuant to articles two and
3 three of this chapter.
4 2. If an applicant that does not possess either a pari-mutuel wagering
5 license or franchise awarded pursuant to article two or three of this
6 chapter is issued a gaming facility license pursuant to this article,
7 the licensee shall pay:
8 (a) an amount to horsemen for purses at the licensed racetracks in the
9 region that will assure the purse support from video lottery gaming
10 facilities in the region to the licensed racetracks in the region to be
11 maintained at the same dollar levels realized in two thousand thirteen
12 to be adjusted by the consumer price index for all urban consumers, as
13 published annually by the United States department of labor bureau of
14 labor statistics; and
15 (b) amounts to the agricultural and New York state horse breeding
16 development fund and the New York state thoroughbred breeding and devel-
17 opment fund to maintain payments from video lottery gaming facilities in
18 the region to such funds to be maintained at the same dollar levels
19 realized in two thousand thirteen to be adjusted by the consumer price
20 index for all urban consumers, as published annually by the United
21 States department of labor bureau of labor statistics.
22 TITLE 7
23 PROBLEM GAMBLING
24 Section 1362. Prevention and outreach efforts.
25 1363. Advertising restrictions.
26 § 1362. Prevention and outreach efforts. 1. Each gaming facility
27 licensee, management company, and holding company involved in the appli-
28 cation and ownership or management of a gaming facility shall provide to
29 the commission, as applicable, an applicant's problem gambling plan. An
30 applicant's problem gambling plan shall be approved by the commission
31 before the commission issues or renews a license. Each plan shall at
32 minimum include the following:
33 (a) The goals of the plan and procedures and timetables to implement
34 the plan;
35 (b) The identification of the individual who will be responsible for
36 the implementation and maintenance of the plan;
37 (c) Policies and procedures including the following:
38 (1) The commitment of the applicant and the gaming facility licensee
39 to train appropriate employees;
40 (2) The duties and responsibilities of the employees designated to
41 implement or participate in the plan;
42 (3) The responsibility of patrons with respect to responsible gambl-
43 ing;
44 (4) Procedures for compliance with the voluntary exclusion program;
45 (5) Procedures to identify patrons and employees with suspected or
46 known problem gambling behavior, including procedures specific to loyal-
47 ty and other rewards and marketing programs;
48 (6) Procedures for providing information to individuals regarding the
49 voluntary exclusion program and community, public and private treatment
50 services, gamblers anonymous programs and similar treatment or addiction
51 therapy programs designed to prevent, treat, or monitor problem gamblers
52 and to counsel family members;
53 (7) Procedures for responding to patron and employee requests for
54 information regarding the voluntary exclusion program and community,
55 public and private treatment services, gamblers anonymous programs and
56 similar treatment or addiction therapy programs designed to prevent,
S. 5883 53 A. 8101
1 treat, or monitor compulsive and problem gamblers and to counsel family
2 members;
3 (8) The provision of printed material to educate patrons and employees
4 about problem gambling and to inform them about the voluntary exclusion
5 program and treatment services available to problem gamblers and their
6 families. The applicant shall provide examples of the materials to be
7 used as part of its plan, including, brochures and other printed materi-
8 al and a description of how the material will be disseminated;
9 (9) Advertising and other marketing and outreach to educate the gener-
10 al public about the voluntary exclusion program and problem gambling;
11 (10) An employee training program, including training materials to be
12 utilized and a plan for periodic reinforcement training and a certif-
13 ication process established by the applicant to verify that each employ-
14 ee has completed the training required by the plan;
15 (11) Procedures to prevent underage gambling;
16 (12) Procedures to prevent patrons impaired by drugs or alcohol, or
17 both, from gambling; and
18 (13) The plan for posting signs within the gaming facility, containing
19 information on gambling treatment and on the voluntary exclusion
20 program. The applicant shall provide examples of the language and graph-
21 ics to be used on the signs as part of its plan;
22 (d) A list of community, public and private treatment services,
23 gamblers anonymous programs and similar treatment or addiction therapy
24 programs designed to prevent, treat, or monitor problem gamblers and to
25 counsel family members; and
26 (e) Any other information, documents, and policies and procedures that
27 the commission requires.
28 2. Each applicant or gaming facility licensee shall submit any amend-
29 ments to the problem gambling plan to the commission for review and
30 approval before implementing the amendments.
31 3. Each gaming facility licensee shall submit an annual summary of its
32 problem gambling plan to the commission.
33 4. Each gaming facility licensee shall submit quarterly updates and an
34 annual report to the commission of its adherence to the plans and goals
35 submitted under this section.
36 § 1363. Advertising restrictions. 1. As used in this section:
37 (a) "advertisement" shall mean any notice or communication to the
38 public or any information concerning the gaming-related business of a
39 gaming facility licensee or applicant through broadcasting, publication
40 or any other means of dissemination, including electronic dissemination.
41 Promotional activities are considered advertisements for purposes of
42 this section.
43 (b) "direct advertisement" shall mean any advertisement as described
44 in paragraph (a) of this subdivision that is disseminated to a specific
45 individual or individuals.
46 2. Advertising shall be based upon fact, and shall not be false,
47 deceptive or misleading, and no advertising by or on behalf of a gaming
48 facility licensee shall:
49 (a) Use any type, size, location, lighting, illustration, graphic
50 depiction or color resulting in the obscuring of any material fact;
51 (b) Fail to clearly and conspicuously specify and state any material
52 conditions or limiting factors;
53 (c) Depict any person under the age of twenty-one engaging in gaming
54 and related activities; or
55 (d) Fail to designate and state the name and location of the gaming
56 facility conducting the advertisement. The location of the gaming facil-
S. 5883 54 A. 8101
1 ity need not be included on billboards within thirty miles of the gaming
2 facility.
3 3. Each advertisement shall, clearly and conspicuously, state a prob-
4 lem gambling hotline number.
5 4. Each direct advertisement shall, clearly and conspicuously,
6 describe a method or methods by which an individual may designate that
7 the individual does not wish to receive any future direct advertisement.
8 (a) The described method must be by at least two of the following:
9 (1) Telephone;
10 (2) Regular U.S. mail; or
11 (3) Electronic mail.
12 (b) Upon receipt of an individual's request to discontinue receipt of
13 future advertisement, a gaming facility licensee or applicant shall
14 block the individual in the gaming facility licensee's database so as to
15 prevent the individual from receiving future direct advertisements with-
16 in fifteen days of receipt of the request.
17 5. Each gaming facility licensee or applicant shall provide to the
18 commission at its main office a complete and accurate copy of all adver-
19 tisements within five business days of the advertisement's public
20 dissemination. Gaming facility licensees or applicants shall discontinue
21 the public dissemination upon receipt of notice from the commission to
22 discontinue an advertisement.
23 6. A gaming facility licensee or applicant shall maintain a complete
24 record of all advertisements for a period of at least two years.
25 Records shall be made available to the commission upon request.
26 TITLE 8
27 MISCELLANEOUS PROVISIONS
28 Section 1364. Smoking prohibited.
29 1365. Conservatorship.
30 1366. Zoning.
31 1367. Sports wagering.
32 § 1364. Smoking prohibited. Smoking shall not be permitted, and no
33 person shall smoke in the indoor areas of facilities licensed pursuant
34 to this article, except that the provisions of section one thousand
35 three hundred ninety-nine-q of the public health law shall be applicable
36 to facilities licensed pursuant to this article.
37 § 1365. Conservatorship. 1. Upon revocation or suspension of a gaming
38 facility license or upon the failure or refusal to renew a gaming facil-
39 ity license, the commission may appoint a conservator to temporarily
40 manage and operate the business of the gaming licensee relating to the
41 gaming facility. Such conservator shall be a person of similar experi-
42 ence in the field of gaming management and, in the case of replacing a
43 gaming facility licensee, shall have experience operating a gaming
44 facility of similar caliber in another jurisdiction, and shall be in
45 good standing in all jurisdictions in which the conservator operates a
46 gaming facility. Upon appointment, a conservator shall agree to all
47 licensing provisions of the former gaming licensee.
48 2. A conservator shall, before assuming, managerial or operational
49 duties, execute and file a bond for the faithful performance of its
50 duties payable to the commission with such surety and in such form and
51 amount as the commission shall approve.
52 3. The commission shall require that the former or suspended gaming
53 licensee purchase liability insurance, in an amount determined by the
54 commission, to protect a conservator from liability for any acts or
55 omissions of the conservator during the conservator's appointment which
S. 5883 55 A. 8101
1 are reasonably related to and within the scope of the conservator's
2 duties.
3 4. During the period of temporary management of the gaming facility,
4 the commission shall initiate proceedings under this article to award a
5 new gaming facility license to a qualified applicant whose gaming facil-
6 ity shall be located at the site of the preexisting gaming facility.
7 5. An applicant for a new gaming facility license shall be qualified
8 for licensure under this article; provided, however, that the commission
9 shall determine an appropriate level of investment by an applicant into
10 the preexisting gaming facility.
11 6. Upon award of a new gaming facility license, the new gaming facili-
12 ty licensee shall pay the original licensing fee required under this
13 article.
14 § 1366. Zoning. Notwithstanding any inconsistent provision of law,
15 gaming authorized at a location pursuant to this article shall be deemed
16 an approved activity for such location under the relevant city, county,
17 town, or village land use or zoning ordinances, rules, or regulations.
18 § 1367. Sports wagering. 1. As used in this section:
19 (a) "Casino" means a licensed gaming facility at which gambling is
20 conducted pursuant to the provisions of this article;
21 (b) "Commission" means the commission established pursuant to section
22 one hundred two of this chapter;
23 (c) "Collegiate sport or athletic event" means a sport or athletic
24 event offered or sponsored by or played in connection with a public or
25 private institution that offers educational services beyond the second-
26 ary level;
27 (d) "Operator" means a casino which has elected to operate a sports
28 pool;
29 (e) "Professional sport or athletic event" means an event at which two
30 or more persons participate in sports or athletic events and receive
31 compensation in excess of actual expenses for their participation in
32 such event;
33 (f) "Prohibited sports event" means any collegiate sport or athletic
34 event that takes place in New York or a sport or athletic event in which
35 any New York college team participates regardless of where the event
36 takes place;
37 (g) "Sports event" means any professional sport or athletic event and
38 any collegiate sport or athletic event, except a prohibited sports
39 event;
40 (h) "Sports pool" means the business of accepting wagers on any sports
41 event by any system or method of wagering; and
42 (i) "Sports wagering lounge" means an area wherein a sports pool is
43 operated.
44 2. No gaming facility may conduct sports wagering until such time as
45 there has been a change in federal law authorizing such or upon a ruling
46 of a court of competent jurisdiction that such activity is lawful.
47 3. (a) In addition to authorized gaming activities, a licensed gaming
48 facility may when authorized by subdivision two of this section operate
49 a sports pool upon the approval of the commission and in accordance with
50 the provisions of this section and applicable regulations promulgated
51 pursuant to this article. The commission shall hear and decide promptly
52 and in reasonable order all applications for a license to operate a
53 sports pool, shall have the general responsibility for the implementa-
54 tion of this section and shall have all other duties specified in this
55 section with regard to the operation of a sports pool. The license to
56 operate a sports pool shall be in addition to any other license required
S. 5883 56 A. 8101
1 to be issued to operate a gaming facility. No license to operate a
2 sports pool shall be issued by the commission to any entity unless it
3 has established its financial stability, integrity and responsibility
4 and its good character, honesty and integrity.
5 No later than five years after the date of the issuance of a license
6 and every five years thereafter or within such lesser periods as the
7 commission may direct, a licensee shall submit to the commission such
8 documentation or information as the commission may by regulation
9 require, to demonstrate to the satisfaction of the executive director of
10 the commission that the licensee continues to meet the requirements of
11 the law and regulations.
12 (b) A sports pool shall be operated in a sports wagering lounge
13 located at a casino. The lounge shall conform to all requirements
14 concerning square footage, design, equipment, security measures and
15 related matters which the commission shall by regulation prescribe.
16 (c) The operator of a sports pool shall establish or display the odds
17 at which wagers may be placed on sports events.
18 (d) An operator shall accept wagers on sports events only from persons
19 physically present in the sports wagering lounge. A person placing a
20 wager shall be at least twenty-one years of age.
21 (e) An operator shall not admit into the sports wagering lounge, or
22 accept wagers from, any person whose name appears on the exclusion list.
23 (f) The holder of a license to operate a sports pool may contract with
24 an entity to conduct that operation, in accordance with the regulations
25 of the commission. That entity shall obtain a license as a casino vendor
26 enterprise prior to the execution of any such contract, and such license
27 shall be issued pursuant to the provisions of section one thousand three
28 hundred twenty-seven of this article and in accordance with the regu-
29 lations promulgated by the commission.
30 (g) If any provision of this article or its application to any person
31 or circumstance is held invalid, the invalidity shall not affect other
32 provisions or applications of this article which can be given effect
33 without the invalid provision or application, and to this end the
34 provisions of this article are severable.
35 4. (a) All persons employed directly in wagering-related activities
36 conducted within a sports wagering lounge shall be licensed as a casino
37 key employee or registered as a gaming employee, as determined by the
38 commission. All other employees who are working in the sports wagering
39 lounge may be required to be registered, if appropriate, in accordance
40 with regulations of the commission.
41 (b) Each operator of a sports pool shall designate one or more casino
42 key employees who shall be responsible for the operation of the sports
43 pool. At least one such casino key employee shall be on the premises
44 whenever sports wagering is conducted.
45 5. Except as otherwise provided by this article, the commission shall
46 have the authority to regulate sports pools and the conduct of sports
47 wagering under this article to the same extent that the commission regu-
48 lates other gaming. No casino shall be authorized to operate a sports
49 pool unless it has produced information, documentation, and assurances
50 concerning its financial background and resources, including cash
51 reserves, that are sufficient to demonstrate that it has the financial
52 stability, integrity, and responsibility to operate a sports pool. In
53 developing rules and regulations applicable to sports wagering, the
54 commission shall examine the regulations implemented in other states
55 where sports wagering is conducted and shall, as far as practicable,
56 adopt a similar regulatory framework. The commission shall promulgate
S. 5883 57 A. 8101
1 regulations necessary to carry out the provisions of this section,
2 including, but not limited to, regulations governing the:
3 (a) amount of cash reserves to be maintained by operators to cover
4 winning wagers;
5 (b) acceptance of wagers on a series of sports events;
6 (c) maximum wagers which may be accepted by an operator from any one
7 patron on any one sports event;
8 (d) type of wagering tickets which may be used;
9 (e) method of issuing tickets;
10 (f) method of accounting to be used by operators;
11 (g) types of records which shall be kept;
12 (h) use of credit and checks by patrons;
13 (i) type of system for wagering; and
14 (j) protections for a person placing a wager.
15 6. Each operator shall adopt comprehensive house rules governing
16 sports wagering transactions with its patrons. The rules shall specify
17 the amounts to be paid on winning wagers and the effect of schedule
18 changes. The house rules, together with any other information the
19 commission deems appropriate, shall be conspicuously displayed in the
20 sports wagering lounge and included in the terms and conditions of the
21 account wagering system, and copies shall be made readily available to
22 patrons.
23 TITLE 9
24 GAMING INSPECTOR GENERAL
25 Section 1368. Establishment of the office of gaming inspector general.
26 1369. State gaming inspector general; functions and duties.
27 1370. Powers.
28 1371. Responsibilities of the commission and its officers and
29 employees.
30 § 1368. Establishment of the office of gaming inspector general.
31 There is hereby created within the commission the office of gaming
32 inspector general. The head of the office shall be the gaming inspector
33 general who shall be appointed by the governor by and with the advice
34 and consent of the senate. The inspector general shall serve at the
35 pleasure of the governor. The inspector general shall report directly to
36 the governor. The person appointed as inspector general shall, upon his
37 or her appointment, have not less than ten years professional experience
38 in law, investigation, or auditing. The inspector general shall be
39 compensated within the limits of funds available therefor, provided,
40 however, such salary shall be no less than the salaries of certain state
41 officers holding the positions indicated in paragraph (a) of subdivision
42 one of section one hundred sixty-nine of the executive law.
43 § 1369. State gaming inspector general; functions and duties. The
44 state gaming inspector general shall have the following duties and
45 responsibilities:
46 1. receive and investigate complaints from any source, or upon his or
47 her own initiative, concerning allegations of corruption, fraud, crimi-
48 nal activity, conflicts of interest or abuse in the commission;
49 2. inform the commission members of such allegations and the progress
50 of investigations related thereto, unless special circumstances require
51 confidentiality;
52 3. determine with respect to such allegations whether disciplinary
53 action, civil or criminal prosecution, or further investigation by an
54 appropriate federal, state or local agency is warranted, and to assist
55 in such investigations;
S. 5883 58 A. 8101
1 4. prepare and release to the public written reports of such investi-
2 gations, as appropriate and to the extent permitted by law, subject to
3 redaction to protect the confidentiality of witnesses. The release of
4 all or portions of such reports may be deferred to protect the confiden-
5 tiality of ongoing investigations;
6 5. review and examine periodically the policies and procedures of the
7 commission with regard to the prevention and detection of corruption,
8 fraud, criminal activity, conflicts of interest or abuse;
9 6. recommend remedial action to prevent or eliminate corruption,
10 fraud, criminal activity, conflicts of interest or abuse in the commis-
11 sion; and
12 7. establish programs for training commission officers and employees
13 regarding the prevention and elimination of corruption, fraud, criminal
14 activity, conflicts of interest or abuse in the commission.
15 § 1370. Powers. The state gaming inspector general shall have the
16 power to:
17 1. subpoena and enforce the attendance of witnesses;
18 2. administer oaths or affirmations and examine witnesses under oath;
19 3. require the production of any books and papers deemed relevant or
20 material to any investigation, examination or review;
21 4. notwithstanding any law to the contrary, examine and copy or remove
22 documents or records of any kind prepared, maintained or held by the
23 commission;
24 5. require any commission officer or employee to answer questions
25 concerning any matter related to the performance of his or her official
26 duties. The refusal of any officer or employee to answer questions
27 shall be cause for removal from office or employment or other appropri-
28 ate penalty;
29 6. monitor the implementation by the commission of any recommendations
30 made by the state inspector general; and
31 7. perform any other functions that are necessary or appropriate to
32 fulfill the duties and responsibilities of the office.
33 § 1371. Responsibilities of the commission and its officers and
34 employees. 1. Every commission officer or employee shall report prompt-
35 ly to the state gaming inspector general any information concerning
36 corruption, fraud, criminal activity, conflicts of interest or abuse by
37 another state officer or employee relating to his or her office or
38 employment, or by a person having business dealings with the commission
39 relating to those dealings. The knowing failure of any officer or
40 employee to so report shall be cause for removal from office or employ-
41 ment or other appropriate penalty under this article. Any officer or
42 employee who acts pursuant to this subdivision by reporting to the state
43 gaming inspector general or other appropriate law enforcement official
44 improper governmental action as defined in section seventy-five-b of the
45 civil service law shall not be subject to dismissal, discipline or other
46 adverse personnel action.
47 2. The commission chair shall advise the governor within ninety days
48 of the issuance of a report by the state gaming inspector general as to
49 the remedial action that the commission has taken in response to any
50 recommendation for such action contained in such report.
51 § 3. Section 225.00 of the penal law is amended by adding eighteen new
52 subdivisions 13 through 30 to read as follows:
53 13. "Authorized gaming establishment" means any structure, structure
54 and adjacent or attached structure, or grounds adjacent to a structure
55 in which casino gaming, conducted pursuant to article thirteen of the
56 racing, pari-mutuel wagering and breeding law, or Class III gaming, as
S. 5883 59 A. 8101
1 authorized pursuant to a compact reached between the state of New York
2 and a federally recognized Indian nation or tribe under the federal
3 Indian Gaming Regulatory Act of 1988, is conducted and shall include all
4 public and non-public areas of any such building, except for such areas
5 of a building where either Class I or II gaming are conducted or any
6 building or grounds known as a video gaming entertainment facility,
7 including facilities where food and drink are served, as well as those
8 areas not normally open to the public, such as where records related to
9 video lottery gaming operations are kept, except shall not include the
10 racetracks or such areas where such video lottery gaming operations or
11 facilities do not take place or exist, such as racetrack areas or fair-
12 grounds which are wholly unrelated to video lottery gaming operations,
13 pursuant to section sixteen hundred seventeen-a and paragraph five of
14 subdivision a of section sixteen hundred twelve of the tax law, as
15 amended and implemented.
16 14. "Authorized gaming operator" means an enterprise or business enti-
17 ty authorized by state or federal law to operate casino or video lottery
18 gaming.
19 15. "Casino gaming" means games authorized to be played pursuant to a
20 license granted under article thirteen of the racing, pari-mutuel wager-
21 ing and breeding law or by federally recognized Indian nations or tribes
22 pursuant to a valid gaming compact reached in accordance with the feder-
23 al Indian Gaming Regulatory Act of 1988, Pub. L. 100-497, 102 Stat.
24 2467, codified at 25 U.S.C. §§ 2701-21 and 18 U.S.C. §§ 1166-68.
25 16. "Cash equivalent" means a treasury check, a travelers check, wire
26 transfer of funds, transfer check, money order, certified check, cash-
27 iers check, payroll check, a check drawn on the account of the author-
28 ized gaming operator payable to the patron or to the authorized gaming
29 establishment, a promotional coupon, promotional chip, promotional
30 cheque, promotional token, or a voucher recording cash drawn against a
31 credit card or charge card.
32 17. "Cheques" or "chips" or "tokens" means nonmetal, metal or partly
33 metal representatives of value, redeemable for cash or cash equivalent,
34 and issued and sold by an authorized casino operator for use at an
35 authorized gaming establishment. The value of such cheques or chips or
36 tokens shall be considered equivalent in value to the cash or cash
37 equivalent exchanged for such cheques or chips or tokens upon purchase
38 or redemption.
39 18. "Class I gaming" and "Class II gaming" means those forms of gaming
40 that are not Class III gaming, as defined in subsection eight of section
41 four of the federal Indian Gaming Regulatory Act, 25 U.S.C. § 2703.
42 19. "Class III gaming" means those forms of gaming that are not Class
43 I or Class II gaming, as defined in subsections six and seven of section
44 four of the federal Indian Gaming Regulatory Act, 25 U.S.C. § 2703 and
45 those games enumerated in the Appendix of a gaming compact.
46 20. "Compact" or "gaming compact" means the agreement between a feder-
47 ally recognized Indian tribe and the state of New York regarding Class
48 III gaming activities entered into pursuant to the federal Indian Gaming
49 Regulatory Act, Pub. L. 100-497, 102 Stat. 2467, codified at 25 U.S.C.
50 §§ 2701-21 and 18 U.S.C. §§ 1166-68 (1988 & Supp. II).
51 21. "Gaming equipment or device" means any machine or device which is
52 specially designed or manufactured for use in the operation of any Class
53 III or video lottery game.
54 22. "Gaming regulatory authority" means, with respect to any author-
55 ized gaming establishment on Indian lands, territory or reservation, the
56 Indian nation or tribal gaming commission, its authorized officers,
S. 5883 60 A. 8101
1 agents and representatives acting in their official capacities or such
2 other agency of a nation or tribe as the nation or tribe may designate
3 as the agency responsible for the regulation of Class III gaming, joint-
4 ly with the state gaming agency, conducted pursuant to a gaming compact
5 between the nation or tribe and the state of New York, or with respect
6 to any casino gaming authorized pursuant to article thirteen of the
7 racing, pari-mutuel wagering and breeding law or video lottery gaming
8 conducted pursuant to section sixteen hundred seventeen-a and paragraph
9 five of subdivision a of section sixteen hundred twelve of the tax law,
10 as amended and implemented.
11 23. "Premises" includes any structure, parking lot, building, vehicle,
12 watercraft, and any real property.
13 24. "Sell" means to sell, exchange, give or dispose of to another.
14 25. "State gaming agency" shall mean the New York state gaming commis-
15 sion, its authorized officials, agents, and representatives acting in
16 their official capacities as the regulatory agency of the state which
17 has responsibility for regulation with respect to video lottery gaming
18 or casino gaming.
19 26. "Unfair gaming equipment" means loaded dice, marked cards, substi-
20 tuted cards or dice, or fixed roulette wheels or other gaming equipment
21 which has been altered in a way that tends to deceive or tends to alter
22 the elements of chance or normal random selection which determine the
23 result of the game or outcome, or the amount or frequency of the payment
24 in a game.
25 27. "Unlawful gaming property" means:
26 (a) any device, not prescribed for use in casinio gaming by its rules,
27 which is capable of assisting a player:
28 (i) to calculate any probabilities material to the outcome of a
29 contest of chance; or
30 (ii) to receive or transmit information material to the outcome of a
31 contest of chance; or
32 (b) any object or article which, by virtue of its size, shape or any
33 other quality, is capable of being used in casino gaming as an improper
34 substitute for a genuine chip, cheque, token, betting coupon, debit
35 instrument, voucher or other instrument or indicia of value; or
36 (c) any unfair gaming equipment.
37 28. "Video lottery gaming" means any lottery game played on a video
38 lottery terminal, which consists of multiple players competing for a
39 chance to win a random drawn prize pursuant to section sixteen hundred
40 seventeen-a and paragraph five of subdivision a of section sixteen
41 hundred twelve of the tax law, as amended and implemented.
42 29. "Voucher" means an instrument of value generated by a video
43 lottery terminal representing a monetary amount and/or play value owed
44 to a customer at a specific video lottery terminal based on video
45 lottery gaming winnings and/or amounts not wagered.
46 § 4. The penal law is amended by adding ten new sections 225.55,
47 225.60, 225.65, 225.70, 225.75, 225.80, 225.85, 225.90 and 225.95 to
48 read as follows:
49 § 225.55 Gaming fraud in the second degree.
50 A person is guilty of gaming fraud in the second degree when he or
51 she:
52 1. with intent to defraud and in violation of the rules of the casino
53 gaming, misrepresents, changes the amount bet or wagered on, or the
54 outcome or possible outcome of the contest or event which is the subject
55 of the bet or wager, or the amount or frequency of payment in the casino
56 gaming; or
S. 5883 61 A. 8101
1 2. with intent to defraud, obtains anything of value from casino
2 gaming without having won such amount by a bet or wager contingent ther-
3 eon.
4 Gaming fraud in the second degree is a class A misdemeanor.
5 § 225.60 Gaming fraud in the first degree.
6 A person is guilty of gaming fraud in the first degree when he or she
7 commits a gaming fraud in the second degree, and:
8 1. The value of the benefit obtained exceeds one thousand dollars; or
9 2. He or she has been previously convicted within the preceding five
10 years of any offense of which an essential element is the commission of
11 a gaming fraud.
12 Gaming fraud in the first degree is a class E felony.
13 § 225.65 Use of counterfeit, unapproved or unlawful wagering instru-
14 ments.
15 A person is guilty of use of counterfeit, unapproved or unlawful
16 wagering instruments when in playing or using any casino gaming designed
17 to be played with, received or be operated by chips, cheques, tokens,
18 vouchers or other wagering instruments approved by the appropriate
19 gaming regulatory authority, he or she knowingly uses chips, cheques,
20 tokens, vouchers or other wagering instruments other than those approved
21 by the appropriate gaming regulating authority and the state gaming
22 agency or lawful coin or legal tender of the United States of America.
23 Possession of more than one counterfeit, unapproved or unlawful wager-
24 ing instrument described in this section is presumptive evidence of
25 possession thereof with knowledge of its character or contents.
26 Use of counterfeit, unapproved or unlawful wagering instruments is a
27 class A misdemeanor.
28 § 225.70 Possession of unlawful gaming property in the third degree.
29 A person is guilty of possession of unlawful gaming property in the
30 third degree when he or she possesses, with intent to use such property
31 to commit gaming fraud, unlawful gaming property at a premises being
32 used for casino gaming.
33 Possession of unlawful gaming property in the third degree is a class
34 A misdemeanor.
35 § 225.75 Possession of unlawful gaming property in the second degree.
36 A person is guilty of possession of unlawful gaming property in the
37 second degree when:
38 1. He or she makes, sells, or possesses with intent to sell, any
39 unlawful gaming property at a casino gaming facility, the value of which
40 exceeds three hundred dollars, with intent that it be made available to
41 a person for unlawful use; or
42 2. He or she commits possession of unlawful gaming property in the
43 third degree as defined in section 225.70 of this article, and the face
44 value of the improper substitute property exceeds five hundred dollars;
45 or
46 3. He or she commits the offense of possession of unlawful gaming
47 property in the third degree and has been previously convicted within
48 the preceding five years of any offense of which an essential element is
49 possession of unlawful gaming property.
50 Possession of unlawful gaming property in the second degree is a class
51 E felony.
52 § 225.80 Possession of unlawful gaming property in the first degree.
53 A person is guilty of possession of unlawful gaming property in the
54 first degree when:
55 1. He or she commits the crime of unlawful possession of gaming prop-
56 erty in the third degree as defined in section 225.70 of this article
S. 5883 62 A. 8101
1 and the face value of the improper substitute property exceeds one thou-
2 sand dollars; or
3 2. He or she commits the offense of possession of unlawful gaming
4 property in the second degree as defined in subdivision one or two of
5 section 225.75 of this article and has been previously convicted within
6 the preceding five years of any offense of which an essential element is
7 possession of unlawful gaming property.
8 Possession of unlawful gaming property in the first degree is a class
9 D felony.
10 § 225.85 Use of unlawful gaming property.
11 A person is guilty of use of unlawful gaming property when he or she
12 knowingly with intent to defraud uses unlawful gaming property at a
13 premises being used for casino gaming.
14 Use of unlawful gaming property is a class E felony.
15 § 225.90 Manipulation of gaming outcomes at an authorized gaming estab-
16 lishment.
17 A person is guilty of manipulation of gaming outcomes at an authorized
18 gaming establishment when he or she:
19 1. Knowingly conducts, operates, deals or otherwise manipulates, or
20 knowingly allows to be conducted, operated, dealt or otherwise manipu-
21 lated, cards, dice or gaming equipment or device, for themselves or for
22 another, through any trick or sleight of hand performance, with the
23 intent of deceiving or altering the elements of chance or normal random
24 selection which determines the result or outcome of the game, or the
25 amount or frequency of the payment in a game; or
26 2. Knowingly uses, conducts, operates, deals, or exposes for play, or
27 knowingly allows to be used, conducted, operated, dealt or exposed for
28 play any cards, dice or gaming equipment or device, or any combination
29 of gaming equipment or devices, which have in any manner been altered,
30 marked or tampered with, or placed in a condition, or operated in a
31 manner, the result of which tends to deceive or tends to alter the
32 elements of chance or normal random selection which determine the result
33 of the game or outcome, or the amount or frequency of the payment in a
34 game; or
35 3. Knowingly uses, or possesses with the intent to use, any cards,
36 dice or other gaming equipment or devices other than that provided by an
37 authorized gaming operator for current use in a permitted gaming activ-
38 ity; or
39 4. Alters or misrepresents the outcome of a game or other event on
40 which bets or wagers have been made after the outcome is made sure but
41 before it is revealed to players.
42 Possession of altered, marked or tampered with dice, cards, or gaming
43 equipment or devices at an authorized gambling establishment is presump-
44 tive evidence of possession thereof with knowledge of its character or
45 contents and intention to use such altered, marked or tampered with
46 dice, cards, or gaming equipment or devices in violation of this
47 section.
48 Manipulation of gaming outcomes at an authorized gaming establishment
49 is a class A misdemeanor provided, however, that if the person has
50 previously been convicted of this crime within the past five years this
51 crim shall be a class E felony.
52 § 225.95 Unlawful manufacture, sale, distribution, marking, altering or
53 modification of equipment and devices associated with gaming.
54 A person is guilty of unlawful manufacture, sale, distribution, mark-
55 ing, altering or modification of equipment and devices associated with
56 gaming when if he or she:
S. 5883 63 A. 8101
1 1. Manufactures, sells or distributes any cards, chips, cheques,
2 tokens, dice, vouchers, game or device and he or she knew or reasonably
3 should have known it was intended to be used to violate any provision of
4 this article; or
5 2. Marks, alters or otherwise modifies any associated gaming equipment
6 or device in a manner that either affects the result of the wager by
7 determining win or loss or alters the normal criteria of random
8 selection in a manner that affects the operation of a game or determines
9 the outcome of a game, and he or she knew or reasonably should have
10 known that it was intended to be used to violate any provision of this
11 article.
12 Unlawful manufacture, sale, distribution, marking, altering or modifi-
13 cation of equipment and devices associated with gaming is a class A
14 misdemeanor provided, however, that if the person has previously been
15 convicted of this crime within the past five years this crim shall be a
16 class E felony.
17 § 5. Section 109-a of the racing, pari-mutuel wagering and breeding
18 law is REPEALED and a new section 109-a is added to read as follows:
19 § 109-a. Separate board for facility siting. The commission shall
20 establish a separate board to be known as the New York gaming facility
21 location board to perform designated functions under article thirteen of
22 this chapter, the following provisions shall apply to the board:
23 1. The commission shall select five members and name the chair of the
24 board. Each member of the board shall be a resident of the state of New
25 York. No member of the legislature or person holding any elective or
26 appointive office in federal, state or local government shall be eligi-
27 ble to serve as a member of the board.
28 2. Qualifications of members. Members of the board shall each possess
29 no less than ten years of responsible experience in fiscal matters and
30 shall have any one or more of the following qualifications:
31 (a) significant service as an accountant economist, or financial
32 analyst experienced in finance or economics;
33 (b) significant service in an academic field relating to finance or
34 economics;
35 (c) significant service and knowledge of the commercial real estate
36 industry; or
37 (d) significant service as an executive with fiduciary responsibil-
38 ities in charge of a large organization or foundation.
39 3. No member of the board:
40 (a) may have a close familial or business relationship to a person
41 that holds a license under this chapter;
42 (b) may have any direct or indirect financial interest, ownership, or
43 management, including holding any stocks, bonds, or other similar finan-
44 cial interests in any gaming activities, including horse racing, lottery
45 or gambling;
46 (c) may receive or share in, directly or indirectly, the receipts or
47 proceeds of any gaming activities, including horse racing, lottery or
48 gambling;
49 (d) may have a beneficial interest in any contract for the manufacture
50 or sale of gaming devices, the conduct of any gaming activity, or the
51 provision of any independent consulting services in connection with any
52 establishment licensed under this chapter.
53 4. Board members are entitled to actual and necessary expenses
54 incurred in the discharge of their duties but may not receive compen-
55 sation for their service on the board.
56 5. (a) The commission shall provide staff to the board.
S. 5883 64 A. 8101
1 (b) The board shall contract with an outside consultant to provide
2 analysis of the gaming industry and to support the board's comprehensive
3 review and evaluation of the applications submitted to the board for
4 gaming facility licenses.
5 (c) The board may contract with attorneys, accountants, auditors and
6 financial and other experts to render necessary services.
7 (d) All other state agencies shall cooperate with and assist the board
8 in the fulfillment of its duties under this article and may render such
9 services to the board within their respective functions as the board may
10 reasonably request.
11 6. Utilizing the powers and duties prescribed for it by article thir-
12 teen of this chapter, the board shall select, through a competitive
13 process consistent with provisions of article thirteen of this chapter,
14 not more than four gaming facility license applicants. Such selectees
15 shall be authorized to receive a gaming facility license, if found suit-
16 able by the commission. The board may select another applicant for
17 authorization to be licensed as a gaming facility if a previous selectee
18 fails to meet licensing thresholds, is revoked or surrenders a license
19 opportunity.
20 § 6. Subdivision 2 of section 99-h of the state finance law, as
21 amended by section 1 of part V of chapter 59 of the laws of 2006, is
22 amended to read as follows:
23 2. Such account shall consist of all revenues resulting from tribal-
24 state compacts executed pursuant to article two of the executive law
25 [and], a tribal-state compact with the St. Regis Mohawk tribe executed
26 pursuant to chapter five hundred ninety of the laws of two thousand four
27 and the Oneida Settlement Agreement referenced in section eleven of the
28 executive law.
29 § 7. Subdivision 3 of section 99-h of the state finance law, as
30 amended by section 1 of part W of chapter 60 of the laws of 2011, is
31 amended to read as follows:
32 3. Moneys of the account, following the segregation of appropriations
33 enacted by the legislature, shall be available for purposes including
34 but not limited to: (a) reimbursements or payments to municipal govern-
35 ments that host tribal casinos pursuant to a tribal-state compact for
36 costs incurred in connection with services provided to such casinos or
37 arising as a result thereof, for economic development opportunities and
38 job expansion programs authorized by the executive law; provided, howev-
39 er, that for any gaming facility located in the city of Buffalo, the
40 city of Buffalo shall receive a minimum of twenty-five percent of the
41 negotiated percentage of the net drop from electronic gaming devices the
42 state receives pursuant to the compact, and provided further that for
43 any gaming facility located in the city of Niagara Falls, county of
44 Niagara a minimum of twenty-five percent of the negotiated percentage of
45 the net drop from electronic gaming devices the state receives pursuant
46 to the compact shall be distributed in accordance with subdivision four
47 of this section, and provided further that for any gaming facility
48 located in the county or counties of Cattaraugus, Chautauqua or Allega-
49 ny, the municipal governments of the state hosting the facility shall
50 collectively receive a minimum of twenty-five percent of the negotiated
51 percentage of the net drop from electronic gaming devices the state
52 receives pursuant to the compact; and provided further that pursuant to
53 chapter five hundred ninety of the laws of two thousand four, a minimum
54 of twenty-five percent of the revenues received by the state pursuant to
55 the state's compact with the St. Regis Mohawk tribe shall be made avail-
56 able to the counties of Franklin and St. Lawrence, and affected towns in
S. 5883 65 A. 8101
1 such counties. Each such county and its affected towns shall receive
2 fifty percent of the moneys made available by the state; and provided
3 further that the state shall annually make twenty-five percent of the
4 negotiated percentage of the net drop from all gaming devices the state
5 actually receives pursuant to the Oneida Settlement Agreement confirmed
6 by section eleven of the executive law as available to the county of
7 Oneida, and a sum of three and one-half million dollars to the county of
8 Madison. Additionally, the state shall distribute for a period of nine-
9 teen and one-quarter years, an additional annual sum of two and one-half
10 million dollars to the county of Oneida. Additionally, the state shall
11 distribute the one-time eleven million dollar payment received by the
12 state pursuant to such agreement with the Oneida Nation of New York to
13 the county of Madison by wire transfer upon receipt of such payment by
14 the state; and (b) support and services of treatment programs for
15 persons suffering from gambling addictions. Moneys not segregated for
16 such purposes shall be transferred to the general fund for the support
17 of government during the fiscal year in which they are received.
18 § 7-a. Subdivision 3 of section 99-h of the state finance law, as
19 amended by section 1 of part QQ of chapter 59 of the laws of 2009, is
20 amended to read as follows:
21 3. Moneys of the account, following appropriation by the legislature,
22 shall be available for purposes including but not limited to: (a)
23 reimbursements or payments to municipal governments that host tribal
24 casinos pursuant to a tribal-state compact for costs incurred in
25 connection with services provided to such casinos or arising as a result
26 thereof, for economic development opportunities and job expansion
27 programs authorized by the executive law; provided, however, that for
28 any gaming facility located in the city of Buffalo, the city of Buffalo
29 shall receive a minimum of twenty-five percent of the negotiated
30 percentage of the net drop from electronic gaming devices the state
31 receives pursuant to the compact, and provided further that for any
32 gaming facility located in the city of Niagara Falls, county of Niagara
33 a minimum of twenty-five percent of the negotiated percentage of the net
34 drop from electronic gaming devices the state receives pursuant to the
35 compact shall be distributed in accordance with subdivision four of this
36 section, and provided further that for any gaming facility located in
37 the county or counties of Cattaraugus, Chautauqua or Allegany, the
38 municipal governments of the state hosting the facility shall collec-
39 tively receive a minimum of twenty-five percent of the negotiated
40 percentage of the net drop from electronic gaming devices the state
41 receives pursuant to the compact; and provided further that pursuant to
42 chapter five hundred ninety of the laws of two thousand four, a minimum
43 of twenty-five percent of the revenues received by the state pursuant to
44 the state's compact with the St. Regis Mohawk tribe shall be made avail-
45 able to the counties of Franklin and St. Lawrence, and affected towns in
46 such counties. Each such county and its affected towns shall receive
47 fifty percent of the moneys made available by the state; and provided
48 further that the state shall annually make twenty-five percent of the
49 negotiated percentage of the net drop from all gaming devices the state
50 actually receives pursuant to the Oneida Settlement Agreement as
51 confirmed by section eleven of the executive law as available to the
52 county of Oneida, and a sum of three and one-half million dollars to the
53 county of Madison. Additionally, the state shall distribute for a period
54 of nineteen and one-quarter years, an additional annual sum of two and
55 one-half million dollars to the county of Oneida. Additionally, the
56 state shall distribute the one-time eleven million dollar payment
S. 5883 66 A. 8101
1 received by the state pursuant to such agreement with the Oneida Nation
2 of New York to the county of Madison by wire transfer upon receipt of
3 such payment by the state; and (b) support and services of treatment
4 programs for persons suffering from gambling addictions. Moneys not
5 appropriated for such purposes shall be transferred to the general fund
6 for the support of government during the fiscal year in which they are
7 received.
8 § 8. Subdivision 3 of section 99-h of the state finance law, as
9 amended by section 23 of part HH of chapter 57 of the laws of 2013, is
10 amended to read as follows:
11 3. Moneys of the account, following the segregation of appropriations
12 enacted by the legislature, shall be available for purposes including
13 but not limited to: (a) reimbursements or payments to municipal govern-
14 ments that host tribal casinos pursuant to a tribal-state compact for
15 costs incurred in connection with services provided to such casinos or
16 arising as a result thereof, for economic development opportunities and
17 job expansion programs authorized by the executive law; provided, howev-
18 er, that for any gaming facility located in the county of Erie or
19 Niagara, the municipal governments hosting the facility shall collec-
20 tively receive a minimum of twenty-five percent of the negotiated
21 percentage of the net drop from electronic gaming devices the state
22 receives pursuant to the compact and provided further that for any
23 gaming facility located in the county or counties of Cattaraugus, Chau-
24 tauqua or Allegany, the municipal governments of the state hosting the
25 facility shall collectively receive a minimum of twenty-five percent of
26 the negotiated percentage of the net drop from electronic gaming devices
27 the state receives pursuant to the compact; and provided further that
28 pursuant to chapter five hundred ninety of the laws of two thousand
29 four, a minimum of twenty-five percent of the revenues received by the
30 state pursuant to the state's compact with the St. Regis Mohawk tribe
31 shall be made available to the counties of Franklin and St. Lawrence,
32 and affected towns in such counties. Each such county and its affected
33 towns shall receive fifty percent of the moneys made available by the
34 state; and provided further that the state shall annually make twenty-
35 five percent of the negotiated percentage of the net drop from all
36 gaming devices the state actually receives pursuant to the Oneida
37 Settlement Agreement confirmed by section eleven of the executive law
38 available to the county of Oneida, and a sum of three and one-half
39 million dollars to the county of Madison. Additionally, the state shall
40 distribute, for a period of nineteen and one-quarter years, an addi-
41 tional annual sum of two and one-half million dollars to the county of
42 Oneida. Additionally, the state shall distribute the one-time eleven
43 million dollar payment actually received by the state pursuant to the
44 Oneida Settlement Agreement to the county of Madison by wire transfer
45 upon receipt of such payment by the state; and (b) support and services
46 of treatment programs for persons suffering from gambling addictions.
47 Moneys not segregated for such purposes shall be transferred to the
48 general fund for the support of government during the fiscal year in
49 which they are received.
50 § 9. Section 99-h of the state finance law, as amended by chapter 747
51 of the laws of 2006, is amended by adding a new subdivision 3-a to read
52 as follows:
53 3-a. Ten percent of any of the funds actually received by the state
54 pursuant to the tribal-state compacts and agreements described in subdi-
55 vision two of this section that are retained in the fund after the
56 distributions required by subdivision three of this section, but prior
S. 5883 67 A. 8101
1 to the transfer of unsegregated moneys to the general fund required by
2 such subdivision, shall be distributed to counties in each respective
3 exclusivity zone provided they do not otherwise receive a share of said
4 revenues pursuant to this section. Such distribution shall be made among
5 such counties on a per capita basis, excluding the population of any
6 municipality that receives a distribution pursuant to subdivision three
7 of this section.
8 § 10. The state finance law is amended by adding a new section 97-nnnn
9 to read as follows:
10 § 97-nnnn. Commercial gaming revenue fund. 1. There is hereby estab-
11 lished in the joint custody of the comptroller and the commissioner of
12 taxation and finance an account in the miscellaneous special revenue
13 fund to be known as the "commercial gaming revenue fund".
14 2. Such account shall consist of all revenues from all taxes and fees
15 imposed by article thirteen of the racing, pari-mutuel wagering and
16 breeding law; any interest and penalties imposed by the New York state
17 gaming commission relating to those taxes; the percentage of the value
18 of expired gaming related obligations; and all penalties levied and
19 collected by the commission. Additionally, the state gaming commission
20 shall pay into the account any appropriate funds, cash or prizes
21 forfeited from gambling activity.
22 3. Moneys of the account shall be available as follows, unless other-
23 wise specified by the upstate New York gaming economic development act
24 of two thousand thirteen, following appropriation by the legislature:
25 a. eighty percent of the moneys in such fund shall be appropriated or
26 transferred only for elementary and secondary education or real property
27 tax relief.
28 b. ten percent of the moneys in such fund shall be appropriated or
29 transferred from the commercial gaming revenue fund equally between the
30 host municipality and host county.
31 c. ten percent of the moneys in such fund, as attributable to a
32 specific licensed gaming facility, shall be appropriated or transferred
33 from the commercial gaming revenue fund among counties within the
34 region, as defined by section one thousand three hundred ten of the
35 racing, pari-mutuel wagering and breeding law, hosting said facility for
36 the purpose of real property tax relief and for education assistance.
37 Such distribution shall be made among the counties on a per capita
38 basis, subtracting the population of host municipality and county.
39 4. a. As used in this section, the term "base year gaming revenue"
40 shall mean the sum of all revenue generated to support education from
41 video lottery gaming as defined by section sixteen hundred seventeen-a
42 of the tax law in the twelve months preceding the operation of any
43 gaming facility pursuant to either article thirteen of the racing, pari-
44 mutuel wagering and breeding law or pursuant to paragraph four of
45 section one thousand six hundred seventeen-a of the tax law.
46 b. Amounts transferred in any year to support elementary and secondary
47 education shall be calculated as follows:
48 (i) an amount equal to the positive difference, if any, between the
49 base year gaming revenue amount and the sum of all revenue generated to
50 support education from video lottery gaming as defined by section
51 sixteen hundred seventeen-a of the tax law in the current fiscal year
52 provided that such positive amount, if any, shall be transferred to the
53 state lottery fund; and
54 (ii) the amount of revenue collected in the prior state fiscal year,
55 to be distributed pursuant to paragraph a of subdivision three of this
S. 5883 68 A. 8101
1 section, and in excess of any amounts transferred pursuant to subpara-
2 graph (i) of this paragraph in such prior fiscal year, if any.
3 c. Notwithstanding any provision of law to the contrary, amounts
4 appropriated or transferred from the commercial gaming revenue fund
5 pursuant to subparagraph (ii) of this paragraph shall not be included
6 in: (i) the allowable growth amount computed pursuant to paragraph dd of
7 subdivision one of section thirty-six hundred two of the education law,
8 (ii) the preliminary growth amount computed pursuant to paragraph ff of
9 subdivision one of section thirty-six hundred two of the education law,
10 and (iii) the allocable growth amount computed pursuant to paragraph gg
11 of subdivision one of section thirty-six hundred two of the education
12 law.
13 5. Notwithstanding the foregoing, monies received pursuant to:
14 a. sections one thousand three hundred forty-five and one thousand
15 three hundred forty-eight of this article shall be exclusively appropri-
16 ated to the office of alcoholism and substance abuse services to be used
17 for problem gambling education and treatment purposes.
18 b. section one thousand three hundred forty-nine of this article shall
19 be exclusively appropriated to the commission for regulatory investi-
20 gations.
21 c. section one thousand three hundred fifty of this article shall be
22 exclusively appropriated to the commission for costs regulation.
23 § 11. The penal law is amended by adding a new section 156.40 to read
24 as follows:
25 § 156.40 Operating an unlawful electronic sweepstakes.
26 1. As used in this section the following words and terms shall have
27 the following meanings:
28 (a) "Electronic machine or device" means a mechanically, electrically
29 or electronically operated machine or device that is owned, leased or
30 otherwise possessed by a sweepstakes sponsor or promoter, or any spon-
31 sors, promoters, partners, affiliates, subsidiaries or contractors ther-
32 eof; that is intended to be used by a sweepstakes entrant; that uses
33 energy; and that displays the results of a game entry or game outcome to
34 a participant on a screen or other mechanism at a business location,
35 including a private club; provided, that an electronic machine or device
36 may, without limitation:
37 (1) be server-based;
38 (2) use a simulated game terminal as a representation of the prizes
39 associated with the results of the sweepstakes entries;
40 (3) utilize software such that the simulated game influences or deter-
41 mines the winning or value of the prize;
42 (4) select prizes from a predetermined finite pool of entries;
43 (5) utilize a mechanism that reveals the content of a predetermined
44 sweepstakes entry;
45 (6) predetermine the prize results and stores those results for deliv-
46 ery at the time the sweepstakes entry results are revealed;
47 (7) utilize software to create a game result;
48 (8) require deposit of any money, coin or token, or the use of any
49 credit card, debit card, prepaid card or any other method of payment to
50 activate the electronic machine or device;
51 (9) require direct payment into the electronic machine or device, or
52 remote activation of the electronic machine or device;
53 (10) require purchase of a related product having legitimate value;
54 (11) reveal the prize incrementally, even though it may not influence
55 if a prize is awarded or the value of any prize awarded;
S. 5883 69 A. 8101
1 (12) determine and associate the prize with an entry or entries at the
2 time the sweepstakes is entered; or
3 (13) be a slot machine or other form of electrical, mechanical, or
4 computer game.
5 (b) "Enter" or "entry" means the act or process by which a person
6 becomes eligible to receive any prize offered in a sweepstakes.
7 (c) "Entertaining display" means any visual information, capable of
8 being seen by a sweepstakes entrant, that takes the form of actual game
9 play or simulated game play.
10 (d) "Prize" means any gift, award, gratuity, good, service, credit or
11 anything else of value, which may be transferred to a person, whether
12 possession of the prize is actually transferred, or placed on an account
13 or other record as evidence of the intent to transfer the prize.
14 (e) "Sweepstakes" means any game, advertising scheme or plan, or other
15 promotion, which, with or without payment of any consideration, a person
16 may enter to win or become eligible to receive any prize, the determi-
17 nation of which is based upon chance.
18 2. A person is guilty of operating an unlawful electronic sweepstakes
19 when he or she knowingly possesses with the intent to operate, or place
20 into operation, an electronic machine or device to:
21 (a) conduct a sweepstakes through the use of an entertaining display,
22 including the entry process or the reveal of a prize; or
23 (b) promote a sweepstakes that is conducted through the use of an
24 entertaining display, including the entry process or the reveal of a
25 prize.
26 3. Nothing in this section shall be construed to make illegal any
27 activity which is lawfully conducted as the New York state lottery for
28 education as authorized by article thirty-four of the tax law; pari-mu-
29 tuel wagering on horse races as authorized by articles two, three, four,
30 five-A, and ten of the racing, pari-mutuel wagering and breeding law;
31 the game of bingo as authorized pursuant to article fourteen-H of the
32 general municipal law; games of chance as authorized pursuant to article
33 nine-A of the general municipal law; gaming as authorized by article
34 thirteen of the racing, pari-mutuel wagering and breeding law; or pursu-
35 ant to the federal Indian Gaming Regulatory Act.
36 Operating an unlawful electronic sweepstakes is a class E felony.
37 § 12. The legislature hereby finds that long-standing disputes between
38 the Oneida Nation of New York and the State of New York, Madison County
39 and Oneida County, have generated litigation in state and federal courts
40 regarding property and other taxation, the status of Oneida Nation lands
41 and transfer of such lands to the United States to be held in trust for
42 the Oneida Nation, and that such litigation and disputes have caused
43 decades of unrest and uncertainty for the citizens and residents of the
44 Central New York region of this state. The legislature further finds
45 that it is in the best interests of all citizens, residents and poli-
46 tical subdivisions of this state to remove any uncertainty that such
47 litigation or disputes have created regarding the title to and jurisdic-
48 tional status of land within the state. The legislature recognizes that
49 negotiated settlement of these disputes will facilitate a cooperative
50 relationship between the state, the counties and the Oneida Nation.
51 Therefore, the legislature declares that the following provisions are
52 enacted to implement the settlement agreement that has been negotiated
53 and executed by the governor on behalf of the people of this state.
54 § 13. Section 11 of the executive law is REPEALED and a new section 11
55 is added to read as follows:
S. 5883 70 A. 8101
1 § 11. Indian settlement agreements. 1. Oneida settlement agreement.
2 Notwithstanding any other provision of law, upon filing with the secre-
3 tary of state, the settlement agreement executed between the governor,
4 the counties of Oneida and Madison, and the Oneida Nation of New York
5 dated the sixteenth day of May, two thousand thirteen, to be known as
6 the Oneida Settlement Agreement, including, without limitation, the
7 provisions contained therein relating to arbitration and judicial review
8 in state or federal courts and, for the sole purpose thereof, a limited
9 waiver of the state's Eleventh Amendment sovereign immunity from suit,
10 shall upon its effective date be deemed approved, ratified, validated
11 and confirmed by the legislature. It is the intention of the legislature
12 in enacting this section to ensure that the settlement agreement shall
13 be fully enforceable in all respects as to the rights, benefits, respon-
14 sibilities and privileges of all parties thereto.
15 § 14. Notwithstanding any inconsistent provision of law, the Nation-
16 State compact entered into by the State on April 16, 1993 and approved
17 by the United States Department of the Interior on June 4, 1993, which
18 approval was published at 58 Fed. Reg. 33160 (June 15, 1993), is deemed
19 ratified, validated and confirmed nunc pro tunc by the legislature.
20 § 15. Sections 2 and 3 of the Indian law are renumbered sections 3 and
21 4 and a new section 2 is added to read as follows:
22 § 2. New York state Indian nations and tribes. The term "Indian nation
23 or tribe" means one of the following New York state Indian nations or
24 tribes: Cayuga Nation, Oneida Nation of New York, Onondaga Nation, Poos-
25 patuck or Unkechauge Nation, Saint Regis Mohawk Tribe, Seneca Nation of
26 Indians, Shinnecock Indian Nation, Tonawanda Band of Seneca and Tuscaro-
27 ra Nation.
28 § 16. The Indian law is amended by adding a new section 16 to read as
29 follows:
30 § 16. Indian settlement agreements. Notwithstanding any other
31 provision of law, the provisions of the Oneida Settlement Agreement
32 referenced in section eleven of the executive law shall be deemed to
33 supersede any inconsistent laws and regulations.
34 § 17. Subdivision 18 of section 282 of the tax law, as added by
35 section 3 of part K of chapter 61 of the laws of 2005, is amended to
36 read as follows:
37 18. "Indian nation or tribe" means one of the following New York state
38 Indian nations or tribes: Cayuga [Indian] Nation [of New York], Oneida
39 [Indian] Nation of New York, Onondaga Nation [of Indians], Poospatuck or
40 Unkechauge Nation, [St.] Saint Regis Mohawk Tribe, Seneca Nation of
41 Indians, Shinnecock [Tribe] Indian Nation, Tonawanda Band of [Senecas]
42 Seneca and Tuscarora Nation [of Indians].
43 § 18. Subdivision 14 of section 470 of the tax law, as added by
44 section 1 of part K of chapter 61 of the laws of 2005, is amended to
45 read as follows:
46 14. "Indian nation or tribe." One of the following New York state
47 Indian nations or tribes: Cayuga [Indian] Nation [of New York], Oneida
48 [Indian] Nation of New York, Onondaga Nation [of Indians], Poospatuck or
49 Unkechauge Nation, [St.] Saint Regis Mohawk Tribe, Seneca Nation of
50 Indians, Shinnecock [Tribe] Indian Nation, Tonawanda Band of [Senecas]
51 Seneca and Tuscarora Nation [of Indians].
52 § 19. Intentionally omitted.
53 § 20. Intentionally omitted.
54 § 21. Intentionally omitted.
55 § 22. Intentionally omitted.
56 § 23. Intentionally omitted.
S. 5883 71 A. 8101
1 § 24. Intentionally omitted.
2 § 25. Section 104 of the racing, pari-mutuel wagering and breeding law
3 is amended by adding a new subdivision 21 to read as follows:
4 21. The commission shall promptly make available for public inspection
5 and copying via electronic connection to the commission's website a copy
6 of any report received from the New York state board of elections pursu-
7 ant to article fourteen of the election law.
8 § 26. Section 1617-a of the tax law is amended by adding a new subdi-
9 vision g to read as follows:
10 g. Every video lottery gaming license, and every renewal license,
11 shall be valid for a period of five years, except that video gaming
12 licenses issued before the effective date of this subdivision shall be
13 for a term expiring on June thirtieth, two thousand fourteen.
14 The gaming commission may decline to renew any license after notice
15 and an opportunity for hearing if it determines that:
16 (1) the licensee has violated section one thousand six hundred seven
17 of this article;
18 (2) the licensee has violated any rule, regulation or order of the
19 gaming commission;
20 (3) the applicant or its officers, directors or significant stockhold-
21 ers, as determined by the gaming commission, have been convicted of a
22 crime involving moral turpitude; or
23 (4) that the character or fitness of the licensee and its officers,
24 directors, and significant stockholders, as determined by the gaming
25 commission is such that the participation of the applicant in video
26 lottery gaming or related activities would be inconsistent with the
27 public interest, convenience or necessity or with the best interests of
28 video gaming generally.
29 (h) The gaming commission, subject to notice and an opportunity for
30 hearing, may revoke, suspend, and condition the license of the video
31 gaming licensee, order the video gaming licensee to terminate the
32 continued appointment, position or employment of officers and directors,
33 or order the video gaming licensee to require significant stockholders
34 to divest themselves of all interests in the video gaming licensee.
35 § 27. Clause (G) of subparagraph (ii) of paragraph 1 of subdivision b
36 of section 1612 of the tax law is REPEALED and a new clause (G) is added
37 to read as follows:
38 (G) Notwithstanding any provision to the contrary, when a vendor track
39 is located within regions one, two, or five of development zone two as
40 defined by section thirteen hundred ten of the racing, pari-mutuel
41 wagering and breeding law, such vendor track shall receive an additional
42 commission at a rate equal to the percentage of revenue wagered at the
43 vendor track after payout for prizes pursuant to this chapter less ten
44 percent retained by the commission for operation, administration, and
45 procurement purposes and payment of the vendor's fee, marketing allow-
46 ance, and capital award paid pursuant to this chapter and the effective
47 tax rate paid on all gross gaming revenue paid by a gaming facility
48 within the same region pursuant to section thirteen hundred fifty-one of
49 the racing, pari-mutuel wagering and breeding law. The additional
50 commission shall be paid to the vendor track within sixty days after the
51 conclusion of the state fiscal year based on the calculated percentage
52 during the previous fiscal year.
53 § 28. Intentionally omitted.
54 § 29. Intentionally omitted.
S. 5883 72 A. 8101
1 § 30. The opening paragraph of subparagraph (ii) of paragraph 1 of
2 subdivision b of section 1612 of the tax law, as amended by section 6 of
3 part K of chapter 57 of the laws of 2010, is amended to read as follows:
4 less a vendor's fee the amount of which is to be paid for serving as a
5 lottery agent to the track operator of a vendor track or the operator of
6 a resort facility:
7 § 31. Section 1 of part HH of chapter 57 of the laws of 2013 relating
8 to providing for the administration of certain funds and accounts
9 related to the 2013-14 budget, is amended by adding a new subdivision 39
10 to read as follows:
11 39. Commercial gaming revenue fund:
12 a. Commercial gaming revenue account.
13 § 32. Subdivision a of section 1617-a of the tax law, as amended by
14 section 2 of part O-1 of chapter 57 of the laws of 2009, is amended to
15 read as follows:
16 a. The division of the lottery is hereby authorized to license, pursu-
17 ant to rules and regulations to be promulgated by the division of the
18 lottery, the operation of video lottery gaming:
19 (1) at Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs
20 racetracks,
21 (2) or at any other racetrack licensed pursuant to article three of
22 the racing, pari-mutuel wagering and breeding law that are located in a
23 county or counties in which video lottery gaming has been authorized
24 pursuant to local law, excluding the licensed racetrack commonly
25 referred to in article three of the racing, pari-mutuel wagering and
26 breeding law as the "New York state exposition" held in Onondaga county
27 and the racetracks of the non-profit racing association known as Belmont
28 Park racetrack and the Saratoga thoroughbred racetrack,
29 (3) at facilities established, pursuant to a competitive process to be
30 determined by the state gaming commission within regions one, two, and
31 five of zone two as established by section one thousand three hundred
32 ten of the racing, pari-mutuel wagering and breeding law following local
33 governmental consultation and consideration of market factors including
34 potential revenue impact, anticipated job development and capital
35 investment to be made. The facilities authorized pursuant to this para-
36 graph shall be deemed vendors for all purposes under this article, and
37 need not be operated by licensed thoroughbred or harness racing associ-
38 ations or corporations.
39 Such rules and regulations shall provide, as a condition of licensure,
40 that racetracks to be licensed are certified to be in compliance with
41 all state and local fire and safety codes, that the division is afforded
42 adequate space, infrastructure, and amenities consistent with industry
43 standards for such video gaming operations as found at racetracks in
44 other states, that racetrack employees involved in the operation of
45 video lottery gaming pursuant to this section are licensed by the racing
46 and wagering board, and such other terms and conditions of licensure as
47 the division may establish. Notwithstanding any inconsistent provision
48 of law, video lottery gaming at a racetrack pursuant to this section
49 shall be deemed an approved activity for such racetrack under the rele-
50 vant city, county, town, or village land use or zoning ordinances,
51 rules, or regulations. No entity licensed by the division operating
52 video lottery gaming pursuant to this section may house such gaming
53 activity in a structure deemed or approved by the division as "tempo-
54 rary" for a duration of longer than eighteen-months. Nothing in this
55 section shall prohibit the division from licensing an entity to operate
56 video lottery gaming at an existing racetrack as authorized in this
S. 5883 73 A. 8101
1 subdivision whether or not a different entity is licensed to conduct
2 horse racing and pari-mutuel wagering at such racetrack pursuant to
3 article two or three of the racing, pari-mutuel wagering and breeding
4 law.
5 The division, in consultation with the racing and wagering board,
6 shall establish standards for approval of the temporary and permanent
7 physical layout and construction of any facility or building devoted to
8 a video lottery gaming operation. In reviewing such application for the
9 construction or reconstruction of facilities related or devoted to the
10 operation or housing of video lottery gaming operations, the division,
11 in consultation with the racing and wagering board, shall ensure that
12 such facility:
13 (1) possesses superior consumer amenities and conveniences to encour-
14 age and attract the patronage of tourists and other visitors from across
15 the region, state, and nation.
16 (2) has adequate motor vehicle parking facilities to satisfy patron
17 requirements.
18 (3) has a physical layout and location that facilitates access to and
19 from the horse racing track portion of such facility to encourage patro-
20 nage of live horse racing events that are conducted at such track.
21 § 33. Subparagraph (ii) of paragraph 1 of subdivision b of section
22 1612 of the tax law is amended by adding a new clause (H-1) to read as
23 follows:
24 (H-1) Notwithstanding clauses (A), (B), (C), (D), (E), (F), (G) and
25 (H) of this subparagraph where the vendor is authorized pursuant to
26 paragraph three of subdivision a of section sixteen hundred seventeen-a
27 of this article, at a rate of forty percent of the total revenue wagered
28 at the facility after payout for prizes. All facilities authorized
29 pursuant to paragraph three of subdivision a of section sixteen hundred
30 seventeen-a of this article shall not be eligible for any vendor's capi-
31 tal award but are entitled to the vendor's marketing allowance of ten
32 percent authorized by subparagraph (iii) of this paragraph. Facilities
33 authorized by paragraph three of subdivision a of section sixteen
34 hundred seventeen-a of this article shall pay
35 (i) an amount to horsemen for purses at the licensed racetracks in the
36 region that will assure the purse support from video lottery gaming
37 facilities in the region to the licensed racetracks in the region to be
38 maintained at the same dollar levels realized in two thousand thirteen
39 to be adjusted by the consumer price index for all urban consumers, as
40 published annually by the United States department of labor bureau of
41 labor statistics; and
42 (ii) amounts to the agricultural and New York state horse breeding
43 development fund and the New York state thoroughbred breeding and devel-
44 opment fund to maintain payments from video lottery gaming facilities in
45 the region to such funds to be maintained at the same dollar levels
46 realized in two thousand thirteen to be adjusted by the consumer price
47 index for all urban consumers, as published annually by the United
48 States department of labor bureau of labor statistics.
49 § 34. Section 54-l of the state finance law, as added by section 1 of
50 part J of chapter 57 of the laws of 2011, paragraph b of subdivision 2
51 as amended by section 1 of part EE of chapter 57 of the laws of 2013, is
52 amended to read as follows:
53 § 54-l. State assistance to eligible cities and eligible munici-
54 palities in which a video lottery gaming facility is located. 1. Defi-
55 nitions. When used in this section, unless otherwise expressly stated:
S. 5883 74 A. 8101
1 a. "Eligible city" shall mean a city with a population equal to or
2 greater than one hundred twenty-five thousand and less than one million
3 in which a video lottery gaming facility is located and operating as of
4 January first, two thousand nine pursuant to section sixteen hundred
5 seventeen-a of the tax law.
6 b. "Eligible municipality" shall mean a county, city, town or village
7 in which a video lottery gaming facility is located pursuant to section
8 sixteen hundred seventeen-a of the tax law that is not located in a city
9 with a population equal to or greater than one hundred twenty-five thou-
10 sand.
11 c. "Newly eligible city" shall mean a city with a population equal to
12 or greater than one hundred twenty-five thousand and less than one
13 million in which a video lottery gaming facility pursuant to section
14 sixteen hundred seventeen-a of the tax law is located and which was not
15 operating as of January first, two thousand thirteen.
16 d. "Newly eligible municipality" shall mean a county, city, town or
17 village in which a video lottery gaming facility is located pursuant to
18 section sixteen hundred seventeen-a of the tax law that is not located
19 in a city with a population equal to or greater than one hundred twen-
20 ty-five thousand and which was not operating as of January first, two
21 thousand thirteen.
22 e. "Estimated net machine income" shall mean the estimated full annual
23 value of total revenue wagered after payout for prizes for games known
24 as video lottery gaming as authorized under article thirty-four of the
25 tax law during the state fiscal year in which state aid payments are
26 made pursuant to subdivision two of this section.
27 2. a. Within the amount appropriated therefor, an eligible city shall
28 receive an amount equal to the state aid payment received in the state
29 fiscal year commencing April first, two thousand eight from an appropri-
30 ation for aid to municipalities with video lottery gaming facilities.
31 b. Within the amounts appropriated therefor, eligible municipalities
32 shall receive an amount equal to fifty-five percent of the state aid
33 payment received in the state fiscal year commencing April first, two
34 thousand eight from an appropriation for aid to municipalities with
35 video lottery gaming facilities.
36 c. A newly eligible city shall receive a state aid payment equal to
37 two percent of the "estimated net machine income" generated by a video
38 lottery gaming facility located in such eligible city. Such state aid
39 payment shall not exceed twenty million dollars per eligible city.
40 d. A newly eligible municipality shall receive a state aid payment
41 equal to two percent of the "estimated net machine income" generated by
42 a video lottery gaming facility located within such newly eligible muni-
43 cipality as follows: (i) twenty-five percent shall be apportioned and
44 paid to the county; and (ii) seventy-five percent shall be apportioned
45 and paid on a pro rata basis to eligible municipalities, other than the
46 county, based upon the population of such eligible municipalities. Such
47 state aid payment shall not exceed twenty-five percent of an eligible
48 municipality's total expenditures as reported in the statistical report
49 of the comptroller in the preceding state fiscal year pursuant to
50 section thirty-seven of the general municipal law.
51 3. a. State aid payments made to an eligible city or to a newly eligi-
52 ble city pursuant to [paragraph] paragraphs a and c of subdivision two
53 of this section shall be used to increase support for public schools in
54 such city.
55 b. State aid payments made to [an] eligible [municipality] munici-
56 palities and newly eligible municipalities pursuant to [paragraph] para-
S. 5883 75 A. 8101
1 graphs b and d of subdivision two of this section shall be used by such
2 eligible municipality to: (i) defray local costs associated with a video
3 lottery gaming facility, or (ii) minimize or reduce real property taxes.
4 4. Payments of state aid pursuant to this section shall be made on or
5 before June thirtieth of each state fiscal year to the chief fiscal
6 officer of each eligible city and each eligible municipality on audit
7 and warrant of the state comptroller out of moneys appropriated by the
8 legislature for such purpose to the credit of the local assistance fund
9 in the general fund of the state treasury.
10 § 35. Section 1 of chapter 50 of the laws of 2013, State Operations
11 budget, is amended by repealing the items hereinbelow set forth in
12 brackets and by adding to such section the other items underscored in
13 this section.
14 NEW YORK STATE GAMING COMMISSION
15 STATE OPERATIONS 2013-14
16 For payment according to the following schedule:
17 APPROPRIATIONS REAPPROPRIATIONS
18 Special Revenue Funds - Other ...... [111,604,700] 0
19 111,772,700
20 ---------------- ----------------
21 All Funds ........................ [111,604,700] 0
22 111,772,700
23 ================ ================
24 SCHEDULE
25 ADMINISTRATION OF GAMING COMMISSION PROGRAM ... [1,000,000] 1,168,000
26 --------------
27 Special Revenue Funds - Other
28 Miscellaneous Special Revenue Fund
29 Commercial Gaming Revenue Account
30 For services and expenses related to the
31 administration and operation of the
32 commercial gaming revenue account, provid-
33 ing that moneys hereby appropriated shall
34 be available to the program net of
35 refunds, rebates, reimbursements and cred-
36 its. A portion of this appropriation may
37 be used for suballocation to the New York
38 state gaming facility location board or
39 other agencies for services and expenses,
40 including fringe benefits.
41 Notwithstanding any provision of law to the
42 contrary, the money hereby appropriated
43 may not be, in whole or in part, inter-
44 changed with any other appropriation with-
45 in the state gaming commission, except
46 those appropriations that fund activities
47 related to the administration of gaming
48 commission program.
S. 5883 76 A. 8101
1 PERSONAL SERVICE
2 Personal service--regular ........................ 100,000
3 Amount available for personal service ........ 100,000
4 --------------
5 NONPERSONAL SERVICE
6 Travel ............................................ 10,000
7 Fringe benefits ................................... 55,000
8 Indirect costs ..................................... 3,000
9 --------------
10 Amount available for nonpersonal service ...... 68,000
11 --------------
12 Special Revenue Funds - Other
13 Miscellaneous Special Revenue Fund
14 New York State Gaming Commission Account
15 For services and expenses related to the
16 administration and operation of the admin-
17 istration of gaming commission program,
18 providing that moneys hereby appropriated
19 shall be available to the program net of
20 refunds, rebates, reimbursements and cred-
21 its.
22 Notwithstanding any provision of law to the
23 contrary, the money hereby appropriated
24 may not be, in whole or in part, inter-
25 changed with any other appropriation with-
26 in the state gaming commission, except
27 those appropriations that fund activities
28 related to the administration of gaming
29 commission program.
30 Notwithstanding any other provision of law
31 to the contrary, the OGS Interchange and
32 Transfer Authority and the IT Interchange
33 and Transfer Authority as defined in the
34 2013-14 state fiscal year state operations
35 appropriation for the budget division
36 program of the division of the budget, are
37 deemed fully incorporated herein and a
38 part of this appropriation as if fully
39 stated.
40 PERSONAL SERVICE
41 Personal service--regular ........................ 527,000
42 Holiday/overtime compensation ..................... 10,000
43 --------------
44 Amount available for personal service .......... 537,000
45 --------------
S. 5883 77 A. 8101
1 NONPERSONAL SERVICE
2 Supplies and materials ............................ 13,000
3 Travel ............................................ 80,000
4 Contractual services .............................. 99,000
5 Equipment ......................................... 30,000
6 Fringe benefits .................................. 228,000
7 Indirect costs .................................... 13,000
8 --------------
9 Amount available for nonpersonal service ....... 463,000
10 --------------
11 § 36. Section 104 of the racing, pari-mutuel wagering and breeding law
12 is amended by adding a new subdivision 22 to read as follows:
13 22. The commission shall annually conduct an evaluation of video
14 lottery gaming to consider the various competitive factors impacting
15 such industry and shall consider administrative changes that may be
16 necessary to ensure a competitive industry and preserve its primary
17 function of raising revenue for public education.
18 § 37. Clause (H) of subparagraph (ii) of paragraph 1 of subdivision b
19 of section 1612 of the tax law, as amended by chapter 454 of the laws of
20 2012, is amended to read as follows:
21 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
22 this subparagraph, the track operator of a vendor track shall be eligi-
23 ble for a vendor's capital award of up to four percent of the total
24 revenue wagered at the vendor track after payout for prizes pursuant to
25 this chapter, which shall be used exclusively for capital project
26 investments to improve the facilities of the vendor track which promote
27 or encourage increased attendance at the video lottery gaming facility
28 including, but not limited to hotels, other lodging facilities, enter-
29 tainment facilities, retail facilities, dining facilities, events
30 arenas, parking garages and other improvements that enhance facility
31 amenities; provided that such capital investments shall be approved by
32 the division, in consultation with the state racing and wagering board,
33 and that such vendor track demonstrates that such capital expenditures
34 will increase patronage at such vendor track's facilities and increase
35 the amount of revenue generated to support state education programs. The
36 annual amount of such vendor's capital awards that a vendor track shall
37 be eligible to receive shall be limited to two million five hundred
38 thousand dollars, except for Aqueduct racetrack, for which there shall
39 be no vendor's capital awards. Except for tracks having less than one
40 thousand one hundred video gaming machines, and except for a vendor
41 track located west of State Route 14 from Sodus Point to the Pennsylva-
42 nia border within New York, each track operator shall be required to
43 co-invest an amount of capital expenditure equal to its cumulative
44 vendor's capital award. For all tracks, except for Aqueduct racetrack,
45 the amount of any vendor's capital award that is not used during any one
46 year period may be carried over into subsequent years ending before
47 April first, two thousand fourteen. Any amount attributable to a capital
48 expenditure approved prior to April first, two thousand fourteen and
49 completed before April first, two thousand sixteen; or approved prior to
50 April first, two thousand eighteen and completed before April first, two
51 thousand twenty for a vendor track located west of State Route 14 from
52 Sodus Point to the Pennsylvania border within New York, shall be eligi-
53 ble to receive the vendor's capital award. In the event that a vendor
54 track's capital expenditures, approved by the division prior to April
S. 5883 78 A. 8101
1 first, two thousand fourteen and completed prior to April first, two
2 thousand sixteen, exceed the vendor track's cumulative capital award
3 during the five year period ending April first, two thousand fourteen,
4 the vendor shall continue to receive the capital award after April
5 first, two thousand fourteen until such approved capital expenditures
6 are paid to the vendor track subject to any required co-investment. In
7 no event shall any vendor track that receives a vendor fee pursuant to
8 clause (F) or (G) of this subparagraph be eligible for a vendor's capi-
9 tal award under this section. Any operator of a vendor track which has
10 received a vendor's capital award, choosing to divest the capital
11 improvement toward which the award was applied, prior to the full depre-
12 ciation of the capital improvement in accordance with generally accepted
13 accounting principles, shall reimburse the state in amounts equal to the
14 total of any such awards. Any capital award not approved for a capital
15 expenditure at a video lottery gaming facility by April first, two thou-
16 sand fourteen shall be deposited into the state lottery fund for educa-
17 tion aid; and
18 § 38. Item (iii) of clause (I) of subparagraph (ii) of paragraph 1 of
19 subdivision b of section 1612 of the tax law, as added by section 1 of
20 part O of chapter 61 of the laws of 2011, is amended to read as follows:
21 (iii) less an additional vendor's marketing allowance at a rate of ten
22 percent for the first one hundred million dollars annually and eight
23 percent thereafter of the total revenue wagered at the vendor track
24 after payout for prizes to be used by the vendor track for the marketing
25 and promotion and associated costs of its video lottery gaming oper-
26 ations and pari-mutuel horse racing operations, as long as any such
27 costs associated with pari-mutuel horse racing operations simultaneously
28 encourage increased attendance at such vendor's video lottery gaming
29 facilities, consistent with the customary manner of marketing comparable
30 operations in the industry and subject to the overall supervision of the
31 division; provided, however, that the additional vendor's marketing
32 allowance shall not exceed eight percent in any year for any operator of
33 a racetrack located in the county of Westchester or Queens; provided,
34 however, a vendor track that receives a vendor fee pursuant to clause
35 (G) of subparagraph (ii) of this paragraph shall not receive the addi-
36 tional vendor's marketing allowance; provided, however, except for a
37 vendor track located west of State Route 14 from Sodus Point to the
38 Pennsylvania border within New York shall continue to receive a market-
39 ing allowance of ten percent on total revenue wagered at the vendor
40 track after payout for prizes in excess of one hundred million dollars
41 annually. In establishing the vendor fee, the division shall ensure the
42 maximum lottery support for education while also ensuring the effective
43 implementation of section sixteen hundred seventeen-a of this article
44 through the provision of reasonable reimbursements and compensation to
45 vendor tracks for participation in such program. Within twenty days
46 after any award of lottery prizes, the division shall pay into the state
47 treasury, to the credit of the state lottery fund, the balance of all
48 moneys received from the sale of all tickets for the lottery in which
49 such prizes were awarded remaining after provision for the payment of
50 prizes as herein provided. Any revenues derived from the sale of adver-
51 tising on lottery tickets shall be deposited in the state lottery fund.
52 § 39. Subdivision a of section 1617-a of the tax law is amended by
53 adding a new paragraph 4 to read as follows:
54 (4) at a maximum of two facilities, neither to exceed one thousand
55 video lottery gaming devices, established within region three of zone
56 one as defined by section one thousand three hundred ten of the racing,
S. 5883 79 A. 8101
1 pari-mutuel wagering and breeding law, one each operated by a corpo-
2 ration established pursuant to section five hundred two of the racing,
3 pari-mutuel wagering and breeding law in the Suffolk region and the
4 Nassau region to be located within a facility authorized pursuant to
5 sections one thousand eight or one thousand nine of the racing, pari-mu-
6 tuel wagering and breeding law. The facilities authorized pursuant to
7 this paragraph shall be deemed vendors for all purposes under this arti-
8 cle.
9 § 40. Section 1612 of the tax law, as amended by chapter 2 of the laws
10 of 1995, paragraph 1 of subdivision a as amended by chapter 147 of the
11 laws of 2010, subparagraph (A) of paragraph 1 of subdivision a as
12 amended by section 1 of part S of chapter 59 of the laws of 2012, para-
13 graph 2 of subdivision a as amended by section 1 of part P of chapter 61
14 of the laws of 2011, paragraphs 3, 4 and 5 and the second undesignated
15 and closing paragraph of subdivision a as amended by section 1 of part Q
16 of chapter 61 of the laws of 2011, subdivision 6 as amended by section 1
17 of part O-1 of chapter 57 of the laws of 2009, the opening paragraph of
18 paragraph 1 of subdivision b as amended by section 1 of part R of chap-
19 ter 61 of the laws of 2011, subparagraph (ii) of paragraph 1 of subdivi-
20 sion b as amended by section 6 of part K of chapter 57 of the laws of
21 2010, clause (F) of subparagraph (ii) of paragraph 1 of subdivision b as
22 amended by section 1 of part T of chapter 59 of the laws of 2013, clause
23 (H) of subparagraph (ii) of paragraph 1 of subdivision b as amended by
24 chapter 454 of the laws of 2012, clause (I) of subparagraph (ii) of
25 paragraph 1 of subdivision b as added by section 1 of part O of chapter
26 61 of the laws of 2011, paragraphs 2 and 3 of subdivision 6 as amended
27 by section 1 of part J of chapter 55 of the laws of 2013, subdivision c
28 as amended by section 2 of part CC of chapter 61 of the laws of 2005,
29 paragraph 1 of subdivision c as amended by section 2 of part R of chap-
30 ter 61 of the laws of 2011, subdivision d as amended and subdivision e
31 as added by chapter 18 of the laws of 2008, subdivisions f and g as
32 amended by chapter 140 of the laws of 2008, paragraph 1 of subdivision f
33 as amended by section 2 of part J of chapter 55 of the laws if 2013,
34 subdivision h as added by section 13 of part A of chapter 60 of the laws
35 of 2012, is amended to read as follows:
36 § 1612. Disposition of revenues. a. The division shall pay into an
37 account, to be known as the lottery prize account, under the joint
38 custody of the comptroller and the commissioner, within one week after
39 collection of sales receipts from a lottery game, such moneys necessary
40 for the payment of lottery prizes but not to exceed the following
41 percentages, plus interest earned thereon:
42 (1) sixty percent of the total amount for which tickets have been sold
43 for a lawful lottery game introduced on or after the effective date of
44 this paragraph, subject to the following provisions:
45 (A) such game shall be available only on premises occupied by licensed
46 lottery sales agents, subject to the following provisions:
47 (i) if the licensee does not hold a license issued pursuant to the
48 alcoholic beverage control law to sell alcoholic beverages for consump-
49 tion on the premises, then the premises must have a minimum square
50 footage greater than two thousand five hundred square feet;
51 (ii) notwithstanding the foregoing provisions, television equipment
52 that automatically displays the results of such drawings may be
53 installed and used without regard to the square footage if such premises
54 are used as:
55 (I) a commercial bowling establishment, or
S. 5883 80 A. 8101
1 (II) a facility authorized under the racing, pari-mutuel wagering and
2 breeding law to accept pari-mutuel wagers;
3 (B) the rules for the operation of such game shall be as prescribed by
4 regulations promulgated and adopted by the division, provided however,
5 that such rules shall provide that no person under the age of twenty-one
6 may participate in such games on the premises of a licensee who holds a
7 license issued pursuant to the alcoholic beverage control law to sell
8 alcoholic beverages for consumption on the premises; and, provided,
9 further, that such regulations may be revised on an emergency basis not
10 later than ninety days after the enactment of this paragraph in order to
11 conform such regulations to the requirements of this paragraph; or
12 (2) sixty-five percent of the total amount for which tickets have been
13 sold for the "Instant Cash" game in which the participant purchases a
14 preprinted ticket on which dollar amounts or symbols are concealed on
15 the face or the back of such ticket, provided however up to five new
16 games may be offered during the fiscal year, seventy-five percent of the
17 total amount for which tickets have been sold for such five games in
18 which the participant purchases a preprinted ticket on which dollar
19 amounts or symbols are concealed on the face or the back of such ticket;
20 or
21 (3) fifty-five percent of the total amount for which tickets have been
22 sold for any joint, multi-jurisdiction, and out-of-state lottery except
23 as otherwise provided in paragraph one of subdivision b of this section
24 for any joint, multi-jurisdiction, out-of-state video lottery gaming; or
25 (4) fifty percent of the total amount for which tickets have been sold
26 for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete
27 games in which the participants select no more than three or four of
28 their own numbers to match with three or four numbers drawn by the divi-
29 sion for purposes of determining winners of such games, (B) "Pick 10",
30 offered no more than once daily, in which participants select from a
31 specified field of numbers a subset of ten numbers to match against a
32 subset of numbers to be drawn by the division from such field of numbers
33 for the purpose of determining winners of such game, (C) "Take 5",
34 offered no more than once daily, in which participants select from a
35 specified field of numbers a subset of five numbers to match against a
36 subset of five numbers to be drawn by the division from such field of
37 numbers for purposes of determining winners of such game; or
38 (5) forty percent of the total amount for which tickets have been sold
39 for: (A) "Lotto", offered no more than once daily, a discrete game in
40 which all participants select a specific subset of numbers to match a
41 specific subset of numbers, as prescribed by rules and regulations
42 promulgated and adopted by the division, from a larger specific field of
43 numbers, as also prescribed by such rules and regulations and (B) with
44 the exception of the game described in paragraph one of this subdivi-
45 sion, such other state-operated lottery games which the division may
46 introduce, offered no more than once daily, commencing on or after
47 forty-five days following the official publication of the rules and
48 regulations for such game.
49 The moneys in the lottery prize account shall be paid out of such
50 account on the audit and warrant of the comptroller on vouchers certi-
51 fied or approved by the director or his or her duly designated official.
52 Prize money derived from ticket sales receipts of a particular game
53 and deposited in the lottery prize account in accordance with the
54 percentages set forth above may be used to pay prizes in such game.
55 Balances in the lottery prize account identified by individual games may
S. 5883 81 A. 8101
1 be carried over from one fiscal year to the next to ensure proper payout
2 of games.
3 b. 1. Notwithstanding section one hundred twenty-one of the state
4 finance law, on or before the twentieth day of each month, the division
5 shall pay into the state treasury, to the credit of the state lottery
6 fund created by section ninety-two-c of the state finance law, not less
7 than forty-five percent of the total amount for which tickets have been
8 sold for games defined in paragraph four of subdivision a of this
9 section during the preceding month, not less than thirty-five percent of
10 the total amount for which tickets have been sold for games defined in
11 paragraph three of subdivision a of this section during the preceding
12 month, not less than twenty percent of the total amount for which tick-
13 ets have been sold for games defined in paragraph two of subdivision a
14 of this section during the preceding month, provided however that for
15 games with a prize payout of seventy-five percent of the total amount
16 for which tickets have been sold, the division shall pay not less than
17 ten percent of sales into the state treasury and not less than twenty-
18 five percent of the total amount for which tickets have been sold for
19 games defined in paragraph one of subdivision a of this section during
20 the preceding month; and the balance of the total revenue after payout
21 for prizes for games known as "video lottery gaming," including any
22 joint, multi-jurisdiction, and out-of-state video lottery gaming, (i)
23 less ten percent of the total revenue wagered after payout for prizes to
24 be retained by the division for operation, administration, and procure-
25 ment purposes; (ii) less a vendor's fee the amount of which is to be
26 paid for serving as a lottery agent to the track operator of a vendor
27 track or the operator of any other video lottery gaming facility author-
28 ized pursuant to section one thousand six hundred seventeen a of this
29 article:
30 (A) having fewer than one thousand one hundred video gaming machines,
31 at a rate of thirty-five percent for the first fifty million dollars
32 annually, twenty-eight percent for the next hundred million dollars
33 annually, and twenty-five percent thereafter of the total revenue
34 wagered at the vendor track after payout for prizes pursuant to this
35 chapter;
36 (B) having one thousand one hundred or more video gaming machines, at
37 a rate of thirty-one percent of the total revenue wagered at the vendor
38 track after payout for prizes pursuant to this chapter, except for such
39 facility located in the county of Westchester, in which case the rate
40 shall be thirty percent until March thirty-first, two thousand twelve.
41 Notwithstanding the foregoing, not later than April first, two thou-
42 sand twelve, the vendor fee shall become thirty-one percent and remain
43 at that level thereafter; and except for Aqueduct racetrack, in which
44 case the vendor fee shall be thirty-eight percent of the total revenue
45 wagered at the vendor track after payout for prizes pursuant to this
46 chapter;
47 (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
48 vendor track is located in an area with a population of less than one
49 million within the forty mile radius around such track, at a rate of
50 thirty-nine percent for the first fifty million dollars annually, twen-
51 ty-eight percent for the next hundred million dollars annually, and
52 twenty-five percent thereafter of the total revenue wagered at the
53 vendor track after payout for prizes pursuant to this chapter;
54 (D) notwithstanding clauses (A), (B) and (C) of this subparagraph,
55 when the vendor track is located within fifteen miles of a Native Ameri-
56 can class III gaming facility at a rate of forty-one percent of the
S. 5883 82 A. 8101
1 total revenue wagered at the vendor track after payout for prizes pursu-
2 ant to this chapter;
3 (E) notwithstanding clauses (A), (B), (C) and (D) of this subpara-
4 graph, when a Native American class III gaming facility is established,
5 after the effective date of this subparagraph, within fifteen miles of
6 the vendor track, at a rate of forty-one percent of the total revenue
7 wagered after payout for prizes pursuant to this chapter;
8 (E-1) for purposes of this subdivision, the term "class III gaming"
9 shall have the meaning defined in 25 U.S.C. § 2703(8).
10 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
11 agraph, when a vendor track, is located in Sullivan county and within
12 sixty miles from any gaming facility in a contiguous state such vendor
13 fee shall, for a period of six years commencing April first, two thou-
14 sand eight, be at a rate of forty-one percent of the total revenue
15 wagered at the vendor track after payout for prizes pursuant to this
16 chapter, after which time such rate shall be as for all tracks in clause
17 (C) of this subparagraph.
18 (G) notwithstanding clauses (A), (B), (C), (D), (E) and (F) of this
19 subparagraph, when no more than one vendor track located in the town of
20 Thompson in Sullivan county at the site of the former Concord Resort at
21 which a qualified capital investment has been made and no fewer than one
22 thousand full-time, permanent employees have been newly hired, is
23 located in Sullivan county and is within sixty miles from any gaming
24 facility in a contiguous state, then for a period of forty years the
25 vendor's fee shall equal the total revenue wagered at the vendor track
26 after payout of prizes pursuant to this subdivision reduced by the
27 greater of (i) twenty-five percent of total revenue after payout for
28 prizes for "video lottery games" or (ii) for the first eight years of
29 operation thirty-eight million dollars, and beginning in the ninth year
30 of operation such amount shall increase annually by the lesser of the
31 increase in the consumer price index or two percent, plus seven percent
32 of total revenue after payout of prizes. In addition, in the event the
33 vendor fee is calculated pursuant to subclause (i) of this clause, the
34 vendor's fee shall be further reduced by 11.11 percent of the amount by
35 which total revenue after payout for prizes exceeds two hundred fifteen
36 million dollars, but in no event shall such reduction exceed five
37 million dollars. Provided, further, no vendor is eligible for the
38 vendor's fee described in this clause who operates or invests in or
39 owns, in whole or in part, another vendor license or is licensed as a
40 vendor track that currently receives a vendor fee for the operation of
41 video lottery gaming pursuant to this article.
42 Provided, however, that in the case of [no more than one vendor track]
43 a resort facility located [in the town of Thompson] in Sullivan county
44 [at the site of the former Concord Resort] with a qualified capital
45 investment, and one thousand full-time, permanent employees if at any
46 time after three years of opening operations of the licensed video
47 gaming facility [or licensed vendor track], the [vendor track] resort
48 facility experiences an employment shortfall, then the recapture amount
49 shall apply, for only such period as the shortfall exists.
50 For the purposes of this section "qualified capital investment" shall
51 mean an investment of a minimum of six hundred million dollars as
52 reflected by audited financial statements of which not less than three
53 hundred million dollars shall be comprised of equity and/or mezzanine
54 financing as an initial investment in a county where twelve percent of
55 the population is below the federal poverty level as measured by the
56 most recent Bureau of Census Statistics prior to the qualified capital
S. 5883 83 A. 8101
1 investment commencing that results in the construction, development or
2 improvement of at least one eighteen hole golf course, and the
3 construction and issuance of certificates of occupancy for hotels, lodg-
4 ing, spas, dining, retail and entertainment venues, parking garages and
5 other capital improvements at or adjacent to the licensed video gaming
6 facility or licensed vendor track which promote or encourage increased
7 attendance at such facilities.
8 For the purposes of this section, "full-time, permanent employee"
9 shall mean an employee who has worked at the video gaming facility[,
10 vendor track] or related and adjacent facilities for a minimum of thir-
11 ty-five hours per week for not less than four consecutive weeks and who
12 is entitled to receive the usual and customary fringe benefits extended
13 to other employees with comparable rank and duties; or two part-time
14 employees who have worked at the video gaming facility, vendor track or
15 related and adjacent facilities for a combined minimum of thirty-five
16 hours per week for not less than four consecutive weeks and who are
17 entitled to receive the usual and customary fringe benefits extended to
18 other employees with comparable rank and duties.
19 For the purpose of this section "employment goal" shall mean one thou-
20 sand five hundred full-time permanent employees after three years of
21 opening operations of the licensed video gaming facility [or licensed
22 vendor track].
23 For the purpose of this section "employment shortfall" shall mean a
24 level of employment that falls below the employment goal, as certified
25 annually by vendor's certified accountants and the chairman of the
26 empire state development corporation.
27 For the purposes of this section "recapture amount" shall mean the
28 difference between the amount of the vendor's fee paid to a vendor
29 [track] with a qualified capital investment, and the vendor fee other-
30 wise payable to a vendor [track] pursuant to clause (F) of this subpara-
31 graph, that is reimbursable by the vendor track to the division for
32 payment into the state treasury, to the credit of the state lottery fund
33 created by section ninety-two-c of the state finance law, due to an
34 employment shortfall pursuant to the following schedule only for the
35 period of the employment shortfall:
36 (i) one hundred percent of the recapture amount if the employment
37 shortfall is greater than sixty-six and two-thirds percent of the
38 employment goal;
39 (ii) seventy-five percent of the recapture amount if the employment
40 shortfall is greater than thirty-three and one-third percent of the
41 employment goal;
42 (iii) forty-nine and one-half percent of the recapture amount if the
43 employment shortfall is greater than thirty percent of the employment
44 goal;
45 (iv) twenty-two percent of the recapture amount if the employment
46 shortfall is greater than twenty percent of the employment goal;
47 (v) eleven percent of the recapture amount if the employment shortfall
48 is greater than ten percent of the employment goal.
49 (G-1) Notwithstanding clause (A) and (B) of this subparagraph, when a
50 video lottery gaming facility is located in either the county of Nassau
51 or Suffolk and is operated by a corporation established pursuant to
52 section five hundred two of the racing, pari-mutuel wagering and breed-
53 ing law at a rate of thirty- five percent of the total revenue wagered
54 at the vendor track after payout for prizes pursuant to this chapter;
55 (H) Notwithstanding any provision to the contrary, when a vendor track
56 is located within regions one, two, or five of development zone two as
S. 5883 84 A. 8101
1 defied by section thirteen hundred ten of the racing, pari-mutuel wager-
2 ing an breeding law, such vendor track shall receive an additional
3 commission at a rate equal to the percentage of revenue wagered at the
4 vendor track after payout for prizes pursuant to this chapter less than
5 ten percent retained by the commission for operation, administration,
6 and procurement purposes and payment of the vendor's fee, marketing
7 allowance, and capital award paid pursuant to this chapter and the
8 effective tax rate paid on all gross gaming revenue paid by a gaming
9 facility within the same region pursuant to section thirteen hundred
10 fifty-one of the racing, pari-mutuel wagering and breeding law. The
11 additional commission shall be paid to the vendor tack within sixty days
12 after the conclusion of the state fiscal year based on the calculated
13 percentage during the previous fiscal year.
14 [(H)] (I) notwithstanding clauses (A), (B), (C), (D), (E), (F), and
15 [(G)] (G-1) of this subparagraph, the track operator of a vendor track
16 shall be eligible for a vendor's capital award of up to four percent of
17 the total revenue wagered at the vendor track after payout for prizes
18 pursuant to this chapter, which shall be used exclusively for capital
19 project investments to improve the facilities of the vendor track which
20 promote or encourage increased attendance at the video lottery gaming
21 facility including, but not limited to hotels, other lodging facilities,
22 entertainment facilities, retail facilities, dining facilities, events
23 arenas, parking garages and other improvements that enhance facility
24 amenities; provided that such capital investments shall be approved by
25 the division, in consultation with the state racing and wagering board,
26 and that such vendor track demonstrates that such capital expenditures
27 will increase patronage at such vendor track's facilities and increase
28 the amount of revenue generated to support state education programs. The
29 annual amount of such vendor's capital awards that a vendor track shall
30 be eligible to receive shall be limited to two million five hundred
31 thousand dollars, except for Aqueduct racetrack, for which there shall
32 be no vendor's capital awards. Except for tracks having less than one
33 thousand one hundred video gaming machines, each track operator shall be
34 required to co-invest an amount of capital expenditure equal to its
35 cumulative vendor's capital award. For all tracks, except for Aqueduct
36 racetrack, the amount of any vendor's capital award that is not used
37 during any one year period may be carried over into subsequent years
38 ending before April first, two thousand fourteen. Any amount attribut-
39 able to a capital expenditure approved prior to April first, two thou-
40 sand fourteen and completed before April first, two thousand sixteen
41 shall be eligible to receive the vendor's capital award. In the event
42 that a vendor track's capital expenditures, approved by the division
43 prior to April first, two thousand fourteen and completed prior to April
44 first, two thousand sixteen, exceed the vendor track's cumulative capi-
45 tal award during the five year period ending April first, two thousand
46 fourteen, the vendor shall continue to receive the capital award after
47 April first, two thousand fourteen until such approved capital expendi-
48 tures are paid to the vendor track subject to any required co-invest-
49 ment. In no event shall any vendor track that receives a vendor fee
50 pursuant to clause (F) or (G) of this subparagraph be eligible for a
51 vendor's capital award under this section. Any operator of a vendor
52 track which has received a vendor's capital award, choosing to divest
53 the capital improvement toward which the award was applied, prior to the
54 full depreciation of the capital improvement in accordance with general-
55 ly accepted accounting principles, shall reimburse the state in amounts
56 equal to the total of any such awards. Any capital award not approved
S. 5883 85 A. 8101
1 for a capital expenditure at a video lottery gaming facility by April
2 first, two thousand fourteen shall be deposited into the state lottery
3 fund for education aid; and
4 [(I)] (J) Notwithstanding any provision of law to the contrary, free
5 play allowance credits authorized by the division pursuant to subdivi-
6 sion f of section sixteen hundred seventeen-a of this article shall not
7 be included in the calculation of the total amount wagered on video
8 lottery games, the total amount wagered after payout of prizes, the
9 vendor fees payable to the operators of video lottery facilities,
10 vendor's capital awards, fees payable to the division's video lottery
11 gaming equipment contractors, or racing support payments.
12 (iii) less an additional vendor's marketing allowance at a rate of ten
13 percent for the first one hundred million dollars annually and eight
14 percent thereafter of the total revenue wagered at the vendor track
15 after payout for prizes to be used by the vendor track for the marketing
16 and promotion and associated costs of its video lottery gaming oper-
17 ations and pari-mutuel horse racing operations, as long as any such
18 costs associated with pari-mutuel horse racing operations simultaneously
19 encourage increased attendance at such vendor's video lottery gaming
20 facilities, consistent with the customary manner of marketing comparable
21 operations in the industry and subject to the overall supervision of the
22 division; provided, however, that the additional vendor's marketing
23 allowance shall not exceed eight percent in any year for any operator of
24 a racetrack located in the county of Westchester or Queens; provided,
25 however, a vendor track that receives a vendor fee pursuant to clause
26 (G) of subparagraph (ii) of this paragraph shall not receive the addi-
27 tional vendor's marketing allowance
28 provided, however, a vendor that receives a vendor fee pursuant to
29 clause (G-1) of subparagraph (ii) of this paragraph shall receive an
30 additional marketing allowance at a rate of ten percent of the total
31 revenue wagered at the video lottery gaming facility after payout for
32 prizes. the division shall ensure the maximum lottery support for
33 education while also ensuring the effective implementation of section
34 sixteen hundred seventeen-a of this article through the provision of
35 reasonable reimbursements and compensation to vendor tracks for partic-
36 ipation in such program. Within twenty days after any award of lottery
37 prizes, the division shall pay into the state treasury, to the credit of
38 the state lottery fund, the balance of all moneys received from the sale
39 of all tickets for the lottery in which such prizes were awarded remain-
40 ing after provision for the payment of prizes as herein provided. Any
41 revenues derived from the sale of advertising on lottery tickets shall
42 be deposited in the state lottery fund.
43 2. As consideration for the operation of a video lottery gaming facil-
44 ity, the division, shall cause the investment in the racing industry of
45 a portion of the vendor fee received pursuant to paragraph one of this
46 subdivision in the manner set forth in this subdivision. With the
47 exception of Aqueduct racetrack or a facility in the county of Nassau or
48 Suffolk operated by a corporation established pursuant to section five
49 hundred two of the racing, pari-mutuel wagering and breeding law or a
50 facility in the county of Nassau or Suffolk operated by a corporation
51 established pursuant to section five hundred two of the racing, pari-mu-
52 tuel wagering and breeding law , each such track shall dedicate a
53 portion of its vendor fees, received pursuant to clause (A), (B), (C),
54 (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this
55 subdivision, solely for the purpose of enhancing purses at such track,
56 in an amount equal to eight and three-quarters percent of the total
S. 5883 86 A. 8101
1 revenue wagered at the vendor track after pay out for prizes. One
2 percent of such purse enhancement amount shall be paid to the gaming
3 commission to be used exclusively to promote and ensure equine health
4 and safety in New York. Any portion of such funding to the gaming
5 commission unused during a fiscal year shall be returned to the video
6 lottery gaming operators on a pro rata basis in accordance with the
7 amounts originally contributed by each operator and shall be used for
8 the purpose of enhancing purses at such track. In addition, with the
9 exception of Aqueduct racetrack, one and one-quarter percent of total
10 revenue wagered at the vendor track after pay out for prizes, received
11 pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph
12 (ii) of paragraph one of this subdivision, shall be distributed to the
13 appropriate breeding fund for the manner of racing conducted by such
14 track.
15 Provided, further, that nothing in this paragraph shall prevent each
16 track from entering into an agreement, not to exceed five years, with
17 the organization authorized to represent its horsemen to increase or
18 decrease the portion of its vendor fee dedicated to enhancing purses at
19 such track during the years of participation by such track, or to race
20 fewer dates than required herein.
21 3. Nothing in paragraph two of this subdivision shall affect any
22 agreement in effect on or before the effective date of this paragraph,
23 except that the obligation to pay funds to the gaming commission to
24 promote and ensure equine health and safety shall supersede any
25 provision to the contrary in any such agreement.
26 c. 1. The specifications for video lottery gaming, including any
27 joint, multi-jurisdiction, and out-of-state video lottery gaming, shall
28 be designed in such a manner as to pay prizes that average no less than
29 ninety percent of sales.
30 2. Of the ten percent retained by the division for administrative
31 purposes, any amounts beyond that which are necessary for the operation
32 and administration of this pilot program shall be deposited in the
33 lottery education account.
34 d. Notwithstanding any law, rule or regulation to the contrary, any
35 successor to the New York Racing Association, Inc. with respect to the
36 operation and maintenance of video lottery gaming at Aqueduct racetrack
37 shall be deemed the successor to the New York Racing Association, Inc.
38 for purposes of being subject to existing contracts and loan agreements,
39 if any, entered into by the New York Racing Association, Inc. directly
40 related to the construction, operation, management and distribution of
41 revenues of the video lottery gaming facility at Aqueduct racetrack.
42 e. The video lottery gaming operator selected to operate a video
43 lottery terminal facility at Aqueduct will be subject to a memorandum of
44 understanding between the governor, temporary president of the senate
45 and the speaker of the assembly. Notwithstanding subparagraph (i) of
46 paragraph a of subdivision eight of section two hundred twelve of the
47 racing, pari-mutuel wagering and breeding law, the state, pursuant to an
48 agreement with the video lottery gaming operator to operate a video
49 lottery terminal facility at Aqueduct, may authorize, as part of such
50 agreement or in conjunction with such agreement at the time it is
51 executed, additional development at the Aqueduct racing facility. The
52 selection will be made in consultation with the franchised corporation,
53 but is not subject to such corporation's approval. The franchised corpo-
54 ration shall not be eligible to compete to operate or to operate a video
55 lottery terminal facility at Aqueduct. The state will use its best
56 efforts to ensure that the video lottery terminal facility at Aqueduct
S. 5883 87 A. 8101
1 is opened as soon as is practicable and will, if practicable, pursue the
2 construction of a temporary video lottery terminal facility at Aqueduct
3 subject to staying within an agreed budget for such video lottery termi-
4 nal facility and subject to such temporary facility not having an
5 adverse impact on opening of the permanent facility at Aqueduct. To
6 facilitate the opening of the video lottery gaming facility at Aqueduct
7 as soon as is practicable, the division of the lottery may extend the
8 term of any existing contract related to the video lottery system.
9 f. As consideration for the operation of the video lottery gaming
10 facility at Aqueduct racetrack, the division shall cause the investment
11 in the racing industry of the following percentages of the vendor fee to
12 be deposited or paid, 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 such purse enhancement amount shall be paid to the gaming commission
21 to be used exclusively to promote and ensure equine health and safety in
22 New York. Any portion of such funding to the gaming commission unused
23 during a fiscal year shall be returned on a pro rata basis in accordance
24 with the amounts originally contributed and shall be used for the
25 purpose of enhancing purses at such tracks.
26 2. One percent of the total wagered after payout of prizes for the
27 first year of operation of video lottery gaming at Aqueduct racetrack,
28 one and one-quarter percent of the total wagered after payout of prizes
29 for the second year of operation, and one and one-half percent of the
30 total wagered after payout of prizes for the third year of operation and
31 thereafter, for an appropriate breeding fund for the manner of racing
32 conducted at Aqueduct racetrack, Belmont Park racetrack and Saratoga
33 race course.
34 3. Four percent of the total revenue wagered after payout of prizes to
35 be deposited into an account of the franchised corporation established
36 pursuant to section two hundred six of the racing, pari-mutuel wagering
37 and breeding law to be used for capital expenditures in maintaining and
38 upgrading Aqueduct racetrack, Belmont Park racetrack and Saratoga race
39 course.
40 4. Three percent of the total revenue wagered after payout for prizes
41 to be deposited into an account of the franchised corporation estab-
42 lished pursuant to section two hundred six of the racing, pari-mutuel
43 wagering and breeding law to be used for general thoroughbred racing
44 operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga
45 race course.
46 5. Paragraphs one, two, three and four of this subdivision shall be
47 known collectively as the "racing support payments".
48 g. In the event the state elects to construct a video lottery terminal
49 facility at the Aqueduct racetrack, all video lottery terminal revenues
50 payable to the video lottery gaming operator at the Aqueduct racetrack
51 remaining after payment of the racing support payments shall first be
52 used to repay the state's advances for (i) confirmation of the chapter
53 eleven plan of reorganization and cash advances for the franchised
54 corporation's operations following confirmation of the chapter eleven
55 plan of reorganization and (ii) the amount expended by the state to
56 construct such video lottery terminal facility at Aqueduct racetrack
S. 5883 88 A. 8101
1 pursuant to an agreement with the state. Subparagraphs (i) and (ii) of
2 this paragraph shall be defined as the state advance amount and the
3 amounts payable to the division of the lottery.
4 h. As consideration for the operation of a video lottery gaming
5 resort facility located in Sullivan county, the division shall cause the
6 investment in the racing industry at the following amount from the
7 vendor fee to be paid as follows:
8 As amount to the horsemen for purses at a licensed racetrack in Sulli-
9 van county and to the agriculture and New York state horse breeding
10 development fund to maintain racing support payments at the same dollar
11 levels realized in two thousand thirteen, to be adjusted by the consumer
12 price index for all urban consumers, as published annually by the United
13 States department of labor bureau of labor statistics. In no circum-
14 stance shall net proceeds of the lottery, including the proceeds from
15 video lottery gaming, be used for the payment of non-lottery expenses of
16 the gaming commission, administrative or otherwise.
17 (f-1) As consideration for operation of video lottery gaming facility
18 located in the county of Nassau of Suffolk and operated by a corporation
19 established pursuant to section five hundred two of the racing, pari-mu-
20 tuel wagering and breeding law, the division shall cause the in the
21 racing industry of the following percentages of the vendor fee to be
22 deposited or paid as follows:
23 (1) Two and three tenths percent of the total wagered after payout of
24 prizes for the purpose of enhancing purses at Aqueduct racetrack,
25 Belmont Park racetrack and Saratoga race course, provided, however, that
26 any amount that is in excess of the amount necessary to maintain purse
27 support from video lottery gaming at Aqueduct racetrack, Belmont Park
28 racetrack and Saratoga race course at the same level realized in in two
29 thousand thirteen, to be adjusted by the consumer price index for all
30 urban consumers, as published annually by the United States department
31 of bureau of labor statistics, shall be instead be returned to the
32 commission.
33 (2) five tenths percent of the total wagered after payout of prizes
34 for the appropriate breeding fund for the manner of racing at Aqueduct
35 racetrack, Belmont Park racetrack and Saratoga race course, provided,
36 however, that any amount that is in excess of the amount necessary to
37 maintain payments from video lottery gaming at Aqueduct racetrack at the
38 same level realized in in two thousand thirteen, to be adjusted by the
39 consumer price index for all urban consumers, as published annually by
40 the United States department of bureau of labor statistics, shall be
41 instead be returned to the commission.
42 (3) one and three tenths percent of the total revenue wagered after
43 payout of prizes to be deposited into an account of the franchised
44 corporation established pursuant to section two hundred six of the
45 racing, pari-mutuel wagering and breeding law to be used for capital
46 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont
47 Park racetrack and Saratoga race course, provided, however, that any
48 amount that is in excess of the amount necessary to maintain payments
49 for capital expenditures from video lottery gaming at Aqueduct racetrack
50 at the same level realized in in two thousand thirteen, to be adjusted
51 by the consumer price index for all urban consumers, as published annu-
52 ally by the United States department of bureau of labor statistics,
53 shall be instead be returned to the commission.
54 (4) Nine tenths percent of the total revenue wagered after payout for
55 prizes to be deposited into an account of the franchised corporation
56 established pursuant to section two hundred six of the racing, pari-mu-
S. 5883 89 A. 8101
1 tuel wagering and breeding law to be used for general thoroughbred
2 racing operations at Aqueduct racetrack, Belmont Park racetrack and
3 Saratoga race course, provided, however, that any amount that is in
4 excess of the amount necessary to maintain payments for general
5 thoroughbred racing operations from video lottery gaming at Aqueduct
6 racetrack at the same level realized in in two thousand thirteen, to be
7 adjusted by the consumer price index for all urban consumers, as
8 published annually by the United States department of bureau of labor
9 statistics, shall be instead be returned to the commission.
10 § 41. Subdivision a of section 1617-a of the tax law is amended by
11 adding a new paragraph 5 to read as follows:
12 (5) at a facility established pursuant to a competitive process to be
13 determined by the state gaming commission, established within region
14 three of zone one as established by section one thousand three hundred
15 ten of the racing, pari-mutuel wagering and breeding law, limited to
16 Nassau county. Such facility may only be authorized by the state gaming
17 commission following local governmental consultation and consideration
18 of market factors such as potential revenue impact, job development and
19 capital investment. The facility authorized pursuant to this paragraph
20 shall be deemed a vendor for all purposes under this article, and need
21 not be operated by licensed thoroughbred or harness racing associations
22 or corporations. The facility authorized pursuant to this paragraph
23 shall be deemed vendors for all purposes under this article.
24 § 42. Section 1612 of the tax law, as amended by chapter 2 of the laws
25 of 1995, paragraph 1 of subdivision a as amended by chapter 147 of the
26 laws of 2010, subparagraph (A) of paragraph 1 of subdivision a as
27 amended by section 1 of part S of chapter 59 of the laws of 2012, para-
28 graph 2 of subdivision a as amended by section 1 of part P of chapter 61
29 of the laws of 2011, paragraphs 3, 4 and 5 and the second undesignated
30 and closing paragraph of subdivision a as amended by section 1 of part Q
31 of chapter 61 of the laws of 2011, subdivision 6 as amended by section 1
32 of part O-1 of chapter 57 of the laws of 2009, the opening paragraph of
33 paragraph 1 of subdivision b as amended by section 1 of part R of chap-
34 ter 61 of the laws of 2011, subparagraph (ii) of paragraph 1 of subdivi-
35 sion b as amended by section 6 of part K of chapter 57 of the laws of
36 2010, clause (F) of subparagraph (ii) of paragraph 1 of subdivision b as
37 amended by section 1 of part T of chapter 59 of the laws of 2013, clause
38 (H) of subparagraph (ii) of paragraph 1 of subdivision b as amended by
39 chapter 454 of the laws of 2012, clause (I) of subparagraph (ii) of
40 paragraph 1 of subdivision b as added by section 1 of part O of chapter
41 61 of the laws of 2011, paragraphs 2 and 3 of subdivision 6 as amended
42 by section 1 of part J of chapter 55 of the laws of 2013, subdivision c
43 as amended by section 2 of part CC of chapter 61 of the laws of 2005,
44 paragraph 1 of subdivision c as amended by section 2 of part R of chap-
45 ter 61 of the laws of 2011, subdivision d as amended and subdivision e
46 as added by chapter 18 of the laws of 2008, subdivisions f and g as
47 amended by chapter 140 of the laws of 2008, paragraph 1 of subdivision f
48 as amended by section 2 of part J of chapter 55 of the laws if 2013,
49 subdivision h as added by section 13 of part A of chapter 60 of the laws
50 of 2012, is amended to read as follows:
51 § 1612. Disposition of revenues. a. The division shall pay into an
52 account, to be known as the lottery prize account, under the joint
53 custody of the comptroller and the commissioner, within one week after
54 collection of sales receipts from a lottery game, such moneys necessary
55 for the payment of lottery prizes but not to exceed the following
56 percentages, plus interest earned thereon:
S. 5883 90 A. 8101
1 (1) sixty percent of the total amount for which tickets have been sold
2 for a lawful lottery game introduced on or after the effective date of
3 this paragraph, subject to the following provisions:
4 (A) such game shall be available only on premises occupied by licensed
5 lottery sales agents, subject to the following provisions:
6 (i) if the licensee does not hold a license issued pursuant to the
7 alcoholic beverage control law to sell alcoholic beverages for consump-
8 tion on the premises, then the premises must have a minimum square
9 footage greater than two thousand five hundred square feet;
10 (ii) notwithstanding the foregoing provisions, television equipment
11 that automatically displays the results of such drawings may be
12 installed and used without regard to the square footage if such premises
13 are used as:
14 (I) a commercial bowling establishment, or
15 (II) a facility authorized under the racing, pari-mutuel wagering and
16 breeding law to accept pari-mutuel wagers;
17 (B) the rules for the operation of such game shall be as prescribed by
18 regulations promulgated and adopted by the division, provided however,
19 that such rules shall provide that no person under the age of twenty-one
20 may participate in such games on the premises of a licensee who holds a
21 license issued pursuant to the alcoholic beverage control law to sell
22 alcoholic beverages for consumption on the premises; and, provided,
23 further, that such regulations may be revised on an emergency basis not
24 later than ninety days after the enactment of this paragraph in order to
25 conform such regulations to the requirements of this paragraph; or
26 (2) sixty-five percent of the total amount for which tickets have been
27 sold for the "Instant Cash" game in which the participant purchases a
28 preprinted ticket on which dollar amounts or symbols are concealed on
29 the face or the back of such ticket, provided however up to five new
30 games may be offered during the fiscal year, seventy-five percent of the
31 total amount for which tickets have been sold for such five games in
32 which the participant purchases a preprinted ticket on which dollar
33 amounts or symbols are concealed on the face or the back of such ticket;
34 or
35 (3) fifty-five percent of the total amount for which tickets have been
36 sold for any joint, multi-jurisdiction, and out-of-state lottery except
37 as otherwise provided in paragraph one of subdivision b of this section
38 for any joint, multi-jurisdiction, out-of-state video lottery gaming; or
39 (4) fifty percent of the total amount for which tickets have been sold
40 for games known as: (A) the "Daily Numbers Game" or "Win 4", discrete
41 games in which the participants select no more than three or four of
42 their own numbers to match with three or four numbers drawn by the divi-
43 sion for purposes of determining winners of such games, (B) "Pick 10",
44 offered no more than once daily, in which participants select from a
45 specified field of numbers a subset of ten numbers to match against a
46 subset of numbers to be drawn by the division from such field of numbers
47 for the purpose of determining winners of such game, (C) "Take 5",
48 offered no more than once daily, in which participants select from a
49 specified field of numbers a subset of five numbers to match against a
50 subset of five numbers to be drawn by the division from such field of
51 numbers for purposes of determining winners of such game; or
52 (5) forty percent of the total amount for which tickets have been sold
53 for: (A) "Lotto", offered no more than once daily, a discrete game in
54 which all participants select a specific subset of numbers to match a
55 specific subset of numbers, as prescribed by rules and regulations
56 promulgated and adopted by the division, from a larger specific field of
S. 5883 91 A. 8101
1 numbers, as also prescribed by such rules and regulations and (B) with
2 the exception of the game described in paragraph one of this subdivi-
3 sion, such other state-operated lottery games which the division may
4 introduce, offered no more than once daily, commencing on or after
5 forty-five days following the official publication of the rules and
6 regulations for such game.
7 The moneys in the lottery prize account shall be paid out of such
8 account on the audit and warrant of the comptroller on vouchers certi-
9 fied or approved by the director or his or her duly designated official.
10 Prize money derived from ticket sales receipts of a particular game
11 and deposited in the lottery prize account in accordance with the
12 percentages set forth above may be used to pay prizes in such game.
13 Balances in the lottery prize account identified by individual games may
14 be carried over from one fiscal year to the next to ensure proper payout
15 of games.
16 b. 1. Notwithstanding section one hundred twenty-one of the state
17 finance law, on or before the twentieth day of each month, the division
18 shall pay into the state treasury, to the credit of the state lottery
19 fund created by section ninety-two-c of the state finance law, not less
20 than forty-five percent of the total amount for which tickets have been
21 sold for games defined in paragraph four of subdivision a of this
22 section during the preceding month, not less than thirty-five percent of
23 the total amount for which tickets have been sold for games defined in
24 paragraph three of subdivision a of this section during the preceding
25 month, not less than twenty percent of the total amount for which tick-
26 ets have been sold for games defined in paragraph two of subdivision a
27 of this section during the preceding month, provided however that for
28 games with a prize payout of seventy-five percent of the total amount
29 for which tickets have been sold, the division shall pay not less than
30 ten percent of sales into the state treasury and not less than twenty-
31 five percent of the total amount for which tickets have been sold for
32 games defined in paragraph one of subdivision a of this section during
33 the preceding month; and the balance of the total revenue after payout
34 for prizes for games known as "video lottery gaming," including any
35 joint, multi-jurisdiction, and out-of-state video lottery gaming, (i)
36 less ten percent of the total revenue wagered after payout for prizes to
37 be retained by the division for operation, administration, and procure-
38 ment purposes; (ii) less a vendor's fee the amount of which is to be
39 paid for serving as a lottery agent to the track operator of a vendor
40 track:
41 (A) having fewer than one thousand one hundred video gaming machines,
42 at a rate of thirty-five percent for the first fifty million dollars
43 annually, twenty-eight percent for the next hundred million dollars
44 annually, and twenty-five percent thereafter of the total revenue
45 wagered at the vendor track after payout for prizes pursuant to this
46 chapter;
47 (B) having one thousand one hundred or more video gaming machines, at
48 a rate of thirty-one percent of the total revenue wagered at the vendor
49 track after payout for prizes pursuant to this chapter, except for such
50 facility located in the county of Westchester, in which case the rate
51 shall be thirty percent until March thirty-first, two thousand twelve.
52 Notwithstanding the foregoing, not later than April first, two thou-
53 sand twelve, the vendor fee shall become thirty-one percent and remain
54 at that level thereafter; and except for Aqueduct racetrack, in which
55 case the vendor fee shall be thirty-eight percent of the total revenue
S. 5883 92 A. 8101
1 wagered at the vendor track after payout for prizes pursuant to this
2 chapter;
3 (C) notwithstanding clauses (A) and (B) of this subparagraph, when the
4 vendor track is located in an area with a population of less than one
5 million within the forty mile radius around such track, at a rate of
6 thirty-nine percent for the first fifty million dollars annually, twen-
7 ty-eight percent for the next hundred million dollars annually, and
8 twenty-five percent thereafter of the total revenue wagered at the
9 vendor track after payout for prizes pursuant to this chapter;
10 (D) notwithstanding clauses (A), (B) and (C) of this subparagraph,
11 when the vendor track is located within fifteen miles of a Native Ameri-
12 can class III gaming facility at a rate of forty-one percent of the
13 total revenue wagered at the vendor track after payout for prizes pursu-
14 ant to this chapter;
15 (E) notwithstanding clauses (A), (B), (C) and (D) of this subpara-
16 graph, when a Native American class III gaming facility is established,
17 after the effective date of this subparagraph, within fifteen miles of
18 the vendor track, at a rate of forty-one percent of the total revenue
19 wagered after payout for prizes pursuant to this chapter;
20 (E-1) for purposes of this subdivision, the term "class III gaming"
21 shall have the meaning defined in 25 U.S.C. § 2703(8).
22 (F) notwithstanding clauses (A), (B), (C), (D) and (E) of this subpar-
23 agraph, when a vendor track, is located in Sullivan county and within
24 sixty miles from any gaming facility in a contiguous state such vendor
25 fee shall, for a period of six years commencing April first, two thou-
26 sand eight, be at a rate of forty-one percent of the total revenue
27 wagered at the vendor track after payout for prizes pursuant to this
28 chapter, after which time such rate shall be as for all tracks in clause
29 (C) of this subparagraph.
30 (G) notwithstanding clauses (A), (B), (C), (D), (E) and (F) of this
31 subparagraph, when [no more than one vendor track] a resort facility to
32 be operated by other than a presently licensed video lottery gaming
33 operator or any entity affiliated therewith selected by the division
34 following a competitive process located in [the town of Thompson in]
35 Sullivan county [at the site of the former Concord Resort] at which a
36 qualified capital investment has been made and no fewer than one thou-
37 sand full-time, permanent employees have been newly hired, is located in
38 Sullivan county and is within sixty miles from any gaming facility in a
39 contiguous state, then for a period of forty years the vendor's fee
40 shall equal the total revenue wagered at the vendor track after payout
41 of prizes pursuant to this subdivision reduced by the greater of (i)
42 twenty-five percent of total revenue after payout for prizes for "video
43 lottery games" or (ii) for the first eight years of operation thirty-
44 eight million dollars, and beginning in the ninth year of operation such
45 amount shall increase annually by the lesser of the increase in the
46 consumer price index or two percent, plus seven percent of total revenue
47 after payout of prizes. In addition, in the event the vendor fee is
48 calculated pursuant to subclause (i) of this clause, the vendor's fee
49 shall be further reduced by 11.11 percent of the amount by which total
50 revenue after payout for prizes exceeds two hundred fifteen million
51 dollars, but in no event shall such reduction exceed five million
52 dollars.
53 Provided, however, that in the case of [no more than one vendor track]
54 a resort facility located [in the town of Thompson] in Sullivan county
55 [at the site of the former Concord Resort] with a qualified capital
56 investment, and one thousand full-time, permanent employees if at any
S. 5883 93 A. 8101
1 time after three years of opening operations of the licensed video
2 gaming facility [or licensed vendor track], the [vendor track] resort
3 facility experiences an employment shortfall, then the recapture amount
4 shall apply, for only such period as the shortfall exists.
5 For the purposes of this section "qualified capital investment" shall
6 mean an investment of a minimum of six hundred million dollars as
7 reflected by audited financial statements of which not less than three
8 hundred million dollars shall be comprised of equity and/or mezzanine
9 financing as an initial investment in a county where twelve percent of
10 the population is below the federal poverty level as measured by the
11 most recent Bureau of Census Statistics prior to the qualified capital
12 investment commencing that results in the construction, development or
13 improvement of at least one eighteen hole golf course, and the
14 construction and issuance of certificates of occupancy for hotels, lodg-
15 ing, spas, dining, retail and entertainment venues, parking garages and
16 other capital improvements at or adjacent to the licensed video gaming
17 facility or licensed vendor track which promote or encourage increased
18 attendance at such facilities.
19 For the purposes of this section, "full-time, permanent employee"
20 shall mean an employee who has worked at the video gaming facility[,
21 vendor track] or related and adjacent facilities for a minimum of thir-
22 ty-five hours per week for not less than four consecutive weeks and who
23 is entitled to receive the usual and customary fringe benefits extended
24 to other employees with comparable rank and duties; or two part-time
25 employees who have worked at the video gaming facility, vendor track or
26 related and adjacent facilities for a combined minimum of thirty-five
27 hours per week for not less than four consecutive weeks and who are
28 entitled to receive the usual and customary fringe benefits extended to
29 other employees with comparable rank and duties.
30 For the purpose of this section "employment goal" shall mean one thou-
31 sand five hundred full-time permanent employees after three years of
32 opening operations of the licensed video gaming facility [or licensed
33 vendor track].
34 For the purpose of this section "employment shortfall" shall mean a
35 level of employment that falls below the employment goal, as certified
36 annually by vendor's certified accountants and the chairman of the
37 empire state development corporation.
38 For the purposes of this section "recapture amount" shall mean the
39 difference between the amount of the vendor's fee paid to a vendor
40 [track] with a qualified capital investment, and the vendor fee other-
41 wise payable to a vendor [track] pursuant to clause (F) of this subpara-
42 graph, that is reimbursable by the vendor track to the division for
43 payment into the state treasury, to the credit of the state lottery fund
44 created by section ninety-two-c of the state finance law, due to an
45 employment shortfall pursuant to the following schedule only for the
46 period of the employment shortfall:
47 (i) one hundred percent of the recapture amount if the employment
48 shortfall is greater than sixty-six and two-thirds percent of the
49 employment goal;
50 (ii) seventy-five percent of the recapture amount if the employment
51 shortfall is greater than thirty-three and one-third percent of the
52 employment goal;
53 (iii) forty-nine and one-half percent of the recapture amount if the
54 employment shortfall is greater than thirty percent of the employment
55 goal;
S. 5883 94 A. 8101
1 (iv) twenty-two percent of the recapture amount if the employment
2 shortfall is greater than twenty percent of the employment goal;
3 (v) eleven percent of the recapture amount if the employment shortfall
4 is greater than ten percent of the employment goal.
5 (G) notwithstanding clauses (A), (B), (C), (D), (E) and (F) of this
6 subparagraph, when no more than one vendor track located in the town of
7 Thompson in Sullivan county at the site of the former Concord Resort at
8 which a qualified capital investment has been made and no fewer than one
9 thousand full-time, permanent employees have been newly hired, is
10 located in Sullivan county and is within sixty miles from any gaming
11 facility in a contiguous state, then for a period of forty years the
12 vendor's fee shall equal the total revenue wagered at the vendor track
13 after payout of prizes pursuant to this subdivision reduced by the
14 greater of (i) twenty-five percent of total revenue after payout for
15 prizes for "video lottery games" or (ii) for the first eight years of
16 operation thirty-eight million dollars, and beginning in the ninth year
17 of operation such amount shall increase annually by the lesser of the
18 increase in the consumer price index or two percent, plus seven percent
19 of total revenue after payout of prizes. In addition, in the event the
20 vendor fee is calculated pursuant to subclause (i) of this clause, the
21 vendor's fee shall be further reduced by 11.11 percent of the amount by
22 which total revenue after payout for prizes exceeds two hundred fifteen
23 million dollars, but in no event shall such reduction exceed five
24 million dollars.
25 Provided, however, that in the case of no more than one vendor track
26 located in the town of Thompson in Sullivan county at the site of the
27 former Concord Resort with a qualified capital investment, and one thou-
28 sand full-time, permanent employees if at any time after three years of
29 opening operations of the licensed video gaming facility or licensed
30 vendor track, the vendor track experiences an employment shortfall, then
31 the recapture amount shall apply, for only such period as the shortfall
32 exists.
33 For the purposes of this section "qualified capital investment" shall
34 mean an investment of a minimum of six hundred million dollars as
35 reflected by audited financial statements of which not less than three
36 hundred million dollars shall be comprised of equity and/or mezzanine
37 financing as an initial investment in a county where twelve percent of
38 the population is below the federal poverty level as measured by the
39 most recent Bureau of Census Statistics prior to the qualified capital
40 investment commencing that results in the construction, development or
41 improvement of at least one eighteen hole golf course, and the
42 construction and issuance of certificates of occupancy for hotels, lodg-
43 ing, spas, dining, retail and entertainment venues, parking garages and
44 other capital improvements at or adjacent to the licensed video gaming
45 facility or licensed vendor track which promote or encourage increased
46 attendance at such facilities.
47 For the purposes of this section, "full-time, permanent employee"
48 shall mean an employee who has worked at the video gaming facility,
49 vendor track or related and adjacent facilities for a minimum of thir-
50 ty-five hours per week for not less than four consecutive weeks and who
51 is entitled to receive the usual and customary fringe benefits extended
52 to other employees with comparable rank and duties; or two part-time
53 employees who have worked at the video gaming facility, vendor track or
54 related and adjacent facilities for a combined minimum of thirty-five
55 hours per week for not less than four consecutive weeks and who are
S. 5883 95 A. 8101
1 entitled to receive the usual and customary fringe benefits extended to
2 other employees with comparable rank and duties.
3 For the purpose of this section "employment goal" shall mean one thou-
4 sand five hundred full-time permanent employees after three years of
5 opening operations of the licensed video gaming facility or licensed
6 vendor track.
7 For the purpose of this section "employment shortfall" shall mean a
8 level of employment that falls below the employment goal, as certified
9 annually by vendor's certified accountants and the chairman of the
10 empire state development corporation.
11 For the purposes of this section "recapture amount" shall mean the
12 difference between the amount of the vendor's fee paid to a vendor track
13 with a qualified capital investment, and the vendor fee otherwise paya-
14 ble to a vendor track pursuant to clause (F) of this subparagraph, that
15 is reimbursable by the vendor track to the division for payment into the
16 state treasury, to the credit of the state lottery fund created by
17 section ninety-two-c of the state finance law, due to an employment
18 shortfall pursuant to the following schedule only for the period of the
19 employment shortfall:
20 (i) one hundred percent of the recapture amount if the employment
21 shortfall is greater than sixty-six and two-thirds percent of the
22 employment goal;
23 (ii) seventy-five percent of the recapture amount if the employment
24 shortfall is greater than thirty-three and one-third percent of the
25 employment goal;
26 (iii) forty-nine and one-half percent of the recapture amount if the
27 employment shortfall is greater than thirty percent of the employment
28 goal;
29 (iv) twenty-two percent of the recapture amount if the employment
30 shortfall is greater than twenty percent of the employment goal;
31 (v) eleven percent of the recapture amount if the employment shortfall
32 is greater than ten percent of the employment goal.
33 (G-1) Notwithstanding clause (A) and (B) of this subparagraph, when a
34 video lottery gaming facility is located in either the county of Nassau
35 or Suffolk and is operated by a corporation established pursuant to
36 section five hundred two of the racing, pari-mutuel wagering and breed-
37 ing law at a rate of thirty-five percent of the total revenue wagered at
38 the vendor track after payout for prizes pursuant to this chapter;
39 (G-2) Notwithstanding clause (A) and (B) of this subparagraph, when a
40 video lottery gaming facility is located in the county of Nassau estab-
41 lished pursuant to a competitive process pursuant to paragraph (5) of
42 section six thousand seventeen-a of this article at a rate of thirty-
43 five percent of the total revenue wagered at the vendor track after
44 payout for prizes pursuant to this chapter;
45 (H) notwithstanding clauses (A), (B), (C), (D), (E), (F) and (G) of
46 this subparagraph, the track operator of a vendor track shall be eligi-
47 ble for a vendor's capital award of up to four percent of the total
48 revenue wagered at the vendor track after payout for prizes pursuant to
49 this chapter, which shall be used exclusively for capital project
50 investments to improve the facilities of the vendor track which promote
51 or encourage increased attendance at the video lottery gaming facility
52 including, but not limited to hotels, other lodging facilities, enter-
53 tainment facilities, retail facilities, dining facilities, events
54 arenas, parking garages and other improvements that enhance facility
55 amenities; provided that such capital investments shall be approved by
56 the division, in consultation with the state racing and wagering board,
S. 5883 96 A. 8101
1 and that such vendor track demonstrates that such capital expenditures
2 will increase patronage at such vendor track's facilities and increase
3 the amount of revenue generated to support state education programs. The
4 annual amount of such vendor's capital awards that a vendor track shall
5 be eligible to receive shall be limited to two million five hundred
6 thousand dollars, except for Aqueduct racetrack, for which there shall
7 be no vendor's capital awards. Except for tracks having less than one
8 thousand one hundred video gaming machines, each track operator shall be
9 required to co-invest an amount of capital expenditure equal to its
10 cumulative vendor's capital award. For all tracks, except for Aqueduct
11 racetrack, the amount of any vendor's capital award that is not used
12 during any one year period may be carried over into subsequent years
13 ending before April first, two thousand fourteen. Any amount attribut-
14 able to a capital expenditure approved prior to April first, two thou-
15 sand fourteen and completed before April first, two thousand sixteen
16 shall be eligible to receive the vendor's capital award. In the event
17 that a vendor track's capital expenditures, approved by the division
18 prior to April first, two thousand fourteen and completed prior to April
19 first, two thousand sixteen, exceed the vendor track's cumulative capi-
20 tal award during the five year period ending April first, two thousand
21 fourteen, the vendor shall continue to receive the capital award after
22 April first, two thousand fourteen until such approved capital expendi-
23 tures are paid to the vendor track subject to any required co-invest-
24 ment. In no event shall any vendor track that receives a vendor fee
25 pursuant to clause (F) or (G) of this subparagraph be eligible for a
26 vendor's capital award under this section. Any operator of a vendor
27 track which has received a vendor's capital award, choosing to divest
28 the capital improvement toward which the award was applied, prior to the
29 full depreciation of the capital improvement in accordance with general-
30 ly accepted accounting principles, shall reimburse the state in amounts
31 equal to the total of any such awards. Any capital award not approved
32 for a capital expenditure at a video lottery gaming facility by April
33 first, two thousand fourteen shall be deposited into the state lottery
34 fund for education aid; and
35 (I) Notwithstanding any provision of law to the contrary, free play
36 allowance credits authorized by the division pursuant to subdivision f
37 of section sixteen hundred seventeen-a of this article shall not be
38 included in the calculation of the total amount wagered on video lottery
39 games, the total amount wagered after payout of prizes, the vendor fees
40 payable to the operators of video lottery facilities, vendor's capital
41 awards, fees payable to the division's video lottery gaming equipment
42 contractors, or racing support payments.
43 (iii) less an additional vendor's marketing allowance at a rate of ten
44 percent for the first one hundred million dollars annually and eight
45 percent thereafter of the total revenue wagered at the vendor track
46 after payout for prizes to be used by the vendor track for the marketing
47 and promotion and associated costs of its video lottery gaming oper-
48 ations and pari-mutuel horse racing operations, as long as any such
49 costs associated with pari-mutuel horse racing operations simultaneously
50 encourage increased attendance at such vendor's video lottery gaming
51 facilities, consistent with the customary manner of marketing comparable
52 operations in the industry and subject to the overall supervision of the
53 division; provided, however, that the additional vendor's marketing
54 allowance shall not exceed eight percent in any year for any operator of
55 a racetrack located in the county of Westchester or Queens; provided,
56 however, a vendor track that receives a vendor fee pursuant to clause
S. 5883 97 A. 8101
1 (G) of subparagraph (ii) of this paragraph shall not receive the addi-
2 tional vendor's marketing allowance. In establishing the vendor fee, the
3 division shall ensure the maximum lottery support for education while
4 also ensuring the effective implementation of section sixteen hundred
5 seventeen-a of this article through the provision of reasonable
6 reimbursements and compensation to vendor tracks for participation in
7 such program. Within twenty days after any award of lottery prizes, the
8 division shall pay into the state treasury, to the credit of the state
9 lottery fund, the balance of all moneys received from the sale of all
10 tickets for the lottery in which such prizes were awarded remaining
11 after provision for the payment of prizes as herein provided. Any reven-
12 ues derived from the sale of advertising on lottery tickets shall be
13 deposited in the state lottery fund.
14 2. As consideration for the operation of a video lottery gaming facil-
15 ity, the division, shall cause the investment in the racing industry of
16 a portion of the vendor fee received pursuant to paragraph one of this
17 subdivision in the manner set forth in this subdivision. With the
18 exception of Aqueduct racetrack, each such track shall dedicate a
19 portion of its vendor fees, received pursuant to clause (A), (B), (C),
20 (D), (E), (F), or (G) of subparagraph (ii) of paragraph one of this
21 subdivision, solely for the purpose of enhancing purses at such track,
22 in an amount equal to eight and three-quarters percent of the total
23 revenue wagered at the vendor track after pay out for prizes. One
24 percent of such purse enhancement amount shall be paid to the gaming
25 commission to be used exclusively to promote and ensure equine health
26 and safety in New York. Any portion of such funding to the gaming
27 commission unused during a fiscal year shall be returned to the video
28 lottery gaming operators on a pro rata basis in accordance with the
29 amounts originally contributed by each operator and shall be used for
30 the purpose of enhancing purses at such track. In addition, with the
31 exception of Aqueduct racetrack, one and one-quarter percent of total
32 revenue wagered at the vendor track after pay out for prizes, received
33 pursuant to clause (A), (B), (C), (D), (E), (F), or (G) of subparagraph
34 (ii) of paragraph one of this subdivision, shall be distributed to the
35 appropriate breeding fund for the manner of racing conducted by such
36 track.
37 Provided, further, that nothing in this paragraph shall prevent each
38 track from entering into an agreement, not to exceed five years, with
39 the organization authorized to represent its horsemen to increase or
40 decrease the portion of its vendor fee dedicated to enhancing purses at
41 such track during the years of participation by such track, or to race
42 fewer dates than required herein.
43 3. Nothing in paragraph two of this subdivision shall affect any
44 agreement in effect on or before the effective date of this paragraph,
45 except that the obligation to pay funds to the gaming commission to
46 promote and ensure equine health and safety shall supersede any
47 provision to the contrary in any such agreement.
48 c. 1. The specifications for video lottery gaming, including any
49 joint, multi-jurisdiction, and out-of-state video lottery gaming, shall
50 be designed in such a manner as to pay prizes that average no less than
51 ninety percent of sales.
52 2. Of the ten percent retained by the division for administrative
53 purposes, any amounts beyond that which are necessary for the operation
54 and administration of this pilot program shall be deposited in the
55 lottery education account.
S. 5883 98 A. 8101
1 d. Notwithstanding any law, rule or regulation to the contrary, any
2 successor to the New York Racing Association, Inc. with respect to the
3 operation and maintenance of video lottery gaming at Aqueduct racetrack
4 shall be deemed the successor to the New York Racing Association, Inc.
5 for purposes of being subject to existing contracts and loan agreements,
6 if any, entered into by the New York Racing Association, Inc. directly
7 related to the construction, operation, management and distribution of
8 revenues of the video lottery gaming facility at Aqueduct racetrack.
9 e. The video lottery gaming operator selected to operate a video
10 lottery terminal facility at Aqueduct will be subject to a memorandum of
11 understanding between the governor, temporary president of the senate
12 and the speaker of the assembly. Notwithstanding subparagraph (i) of
13 paragraph a of subdivision eight of section two hundred twelve of the
14 racing, pari-mutuel wagering and breeding law, the state, pursuant to an
15 agreement with the video lottery gaming operator to operate a video
16 lottery terminal facility at Aqueduct, may authorize, as part of such
17 agreement or in conjunction with such agreement at the time it is
18 executed, additional development at the Aqueduct racing facility. The
19 selection will be made in consultation with the franchised corporation,
20 but is not subject to such corporation's approval. The franchised corpo-
21 ration shall not be eligible to compete to operate or to operate a video
22 lottery terminal facility at Aqueduct. The state will use its best
23 efforts to ensure that the video lottery terminal facility at Aqueduct
24 is opened as soon as is practicable and will, if practicable, pursue the
25 construction of a temporary video lottery terminal facility at Aqueduct
26 subject to staying within an agreed budget for such video lottery termi-
27 nal facility and subject to such temporary facility not having an
28 adverse impact on opening of the permanent facility at Aqueduct. To
29 facilitate the opening of the video lottery gaming facility at Aqueduct
30 as soon as is practicable, the division of the lottery may extend the
31 term of any existing contract related to the video lottery system.
32 f. As consideration for the operation of the video lottery gaming
33 facility at Aqueduct racetrack, the division shall cause the investment
34 in the racing industry of the following percentages of the vendor fee to
35 be deposited or paid, as follows:
36 1. Six and one-half percent of the total wagered after payout of
37 prizes for the first year of operation of video lottery gaming at Aque-
38 duct racetrack, seven percent of the total wagered after payout of
39 prizes for the second year of operation, and seven and one-half percent
40 of the total wagered after payout of prizes for the third year of opera-
41 tion and thereafter, for the purpose of enhancing purses at Aqueduct
42 racetrack, Belmont Park racetrack and Saratoga race course. One percent
43 of such purse enhancement amount shall be paid to the gaming commission
44 to be used exclusively to promote and ensure equine health and safety in
45 New York. Any portion of such funding to the gaming commission unused
46 during a fiscal year shall be returned on a pro rata basis in accordance
47 with the amounts originally contributed and shall be used for the
48 purpose of enhancing purses at such tracks.
49 2. One percent of the total wagered after payout of prizes for the
50 first year of operation of video lottery gaming at Aqueduct racetrack,
51 one and one-quarter percent of the total wagered after payout of prizes
52 for the second year of operation, and one and one-half percent of the
53 total wagered after payout of prizes for the third year of operation and
54 thereafter, for an appropriate breeding fund for the manner of racing
55 conducted at Aqueduct racetrack, Belmont Park racetrack and Saratoga
56 race course.
S. 5883 99 A. 8101
1 3. Four percent of the total revenue wagered after payout of prizes to
2 be deposited into an account of the franchised corporation established
3 pursuant to section two hundred six of the racing, pari-mutuel wagering
4 and breeding law to be used for capital expenditures in maintaining and
5 upgrading Aqueduct racetrack, Belmont Park racetrack and Saratoga race
6 course.
7 4. Three percent of the total revenue wagered after payout for prizes
8 to be deposited into an account of the franchised corporation estab-
9 lished pursuant to section two hundred six of the racing, pari-mutuel
10 wagering and breeding law to be used for general thoroughbred racing
11 operations at Aqueduct racetrack, Belmont Park racetrack and Saratoga
12 race course.
13 5. Paragraphs one, two, three and four of this subdivision shall be
14 known collectively as the "racing support payments".
15 (f-2) As consideration for operation of a video lottery gaming facili-
16 ty located in the county of Nassau established pursuant to a competitive
17 process pursuant to paragraph (5) of section six thousand seventeen a of
18 this article, the division shall cause the in the racing industry of the
19 following percentages of the vendor fee to be deposited or paid as
20 follows:
21 (1) Two and three tenths percent of the total wagered after payout of
22 prizes for the purpose of enhancing purses at Aqueduct racetrack,
23 Belmont Park racetrack and Saratoga race course, provided, however, that
24 any amount that is in excess of the amount necessary to maintain purse
25 support from video lottery gaming at Aqueduct racetrack, Belmont Park
26 racetrack and Saratoga race course at the same level realized in in two
27 thousand thirteen, to be adjusted by the consumer price index for all
28 urban consumers, as published annually by the United States department
29 of bureau of labor statistics, shall be instead be returned to the
30 commission.
31 (2) five tenths percent of the total wagered after payout of prizes
32 for the appropriate breeding fund for the manner of racing at Aqueduct
33 racetrack, Belmont Park racetrack and Saratoga race course, provided,
34 however, that any amount that is in excess of the amount necessary to
35 maintain payments from video lottery gaming at Aqueduct racetrack at the
36 same level realized in in two thousand thirteen, to be adjusted by the
37 consumer price index for all urban consumers, as published annually by
38 the United States department of bureau of labor statistics, shall be
39 instead be returned to the commission.
40 (3) one and three tenths percent of the total revenue wagered after
41 payout of prizes to be deposited into an account of the franchised
42 corporation established pursuant to section two hundred six of the
43 racing, pari-mutuel wagering and breeding law to be used for capital
44 expenditures in maintaining and upgrading Aqueduct racetrack, Belmont
45 Park racetrack and Saratoga race course, provided, however, that any
46 amount that is in excess of the amount necessary to maintain payments
47 for capital expenditures from video lottery gaming at Aqueduct racetrack
48 at the same level realized in in two thousand thirteen, to be adjusted
49 by the consumer price index for all urban consumers, as published annu-
50 ally by the United States department of bureau of labor statistics,
51 shall be instead be returned to the commission.
52 (4) Nine tenths percent of the total revenue wagered after payout for
53 prizes to be deposited into an account of the franchised corporation
54 established pursuant to section two hundred six of the racing, pari-mu-
55 tuel wagering and breeding law to be used for general thoroughbred
56 racing operations at Aqueduct racetrack, Belmont Park racetrack and
S. 5883 100 A. 8101
1 Saratoga race course, provided, however, that any amount that is in
2 excess of the amount necessary to maintain payments for general
3 thoroughbred racing operations from video lottery gaming at Aqueduct
4 racetrack at the same level realized in in two thousand thirteen, to be
5 adjusted by the consumer price index for all urban consumers, as
6 published annually by the United States department of bureau of labor
7 statistics, shall be instead be returned to the commission.
8 g. In the event the state elects to construct a video lottery terminal
9 facility at the Aqueduct racetrack, all video lottery terminal revenues
10 payable to the video lottery gaming operator at the Aqueduct racetrack
11 remaining after payment of the racing support payments shall first be
12 used to repay the state's advances for (i) confirmation of the chapter
13 eleven plan of reorganization and cash advances for the franchised
14 corporation's operations following confirmation of the chapter eleven
15 plan of reorganization and (ii) the amount expended by the state to
16 construct such video lottery terminal facility at Aqueduct racetrack
17 pursuant to an agreement with the state. Subparagraphs (i) and (ii) of
18 this paragraph shall be defined as the state advance amount and the
19 amounts payable to the division of the lottery.
20 h. In no circumstance shall net proceeds of the lottery, including the
21 proceeds from video lottery gaming, be used for the payment of non-lot-
22 tery expenses of the gaming commission, administrative or otherwise.
23 § 43. Section 1001 of the racing, pari-mutuel wagering and breeding
24 law, as added by chapter 363 of the laws of 1984, subdivisions n, o and
25 p as added by chapter 445 of the laws of 1997, is amended to read as
26 follows:
27 § 1001. Definitions. As used in this article, the following terms
28 shall have the following meanings:
29 a. "Simulcast" means the telecast of live audio and visual signals of
30 running, harness or quarter horse races [conducted in the state] for the
31 purposes of pari-mutuel wagering;
32 b. "Track" means the grounds or enclosures within which horse races
33 are conducted by any person, association or corporation lawfully author-
34 ized to conduct such races in accordance with the terms and conditions
35 of this chapter or the laws of another jurisdiction;
36 c. "Sending track" means any track from which simulcasts originate;
37 d. "Receiving track" means any track where simulcasts originated from
38 another track are displayed;
39 e. "Applicant" means any association [or], corporation or business
40 entity applying for a simulcast license in accordance with the
41 provisions of this article;
42 f. "Operator" means any association [or], corporation or business
43 entity operating a simulcast facility in accordance with the provisions
44 of this article;
45 g. "Regional track or tracks" means any or all tracks located within a
46 region defined as an off-track betting region, except that for the
47 purposes of section one thousand eight of this article any track located
48 in New York city, or Nassau, Suffolk and Westchester counties, shall be
49 deemed a regional track for all regions located in district one, as
50 defined in this section;
51 h. "[The board]Commission" means the state [racing and wagering board]
52 gaming commission;
53 i. "Branch office" means an establishment maintained and operated by
54 an off-track betting corporation, where off-track pari-mutuel betting on
55 horse races may be placed in accordance with the terms and conditions of
56 this chapter and rules and regulations issued pursuant thereto;
S. 5883 101 A. 8101
1 j. "Simulcast facility" means those facilities within the state that
2 are authorized pursuant to the provisions of this article to display
3 simulcasts for pari-mutuel wagering purposes;
4 k. "Off-track betting region" means those regions as defined in
5 section five hundred nineteen of this chapter;
6 l. "Simulcast theater" means a simulcast facility which is also a
7 public entertainment and wagering facility, and which may include any or
8 all of the following: a large screen television projection and display
9 unit, a display system for odds, pools, and payout prices, areas for
10 viewing and seating, a food and beverage facility, and any other conven-
11 ience currently provided at racetracks and not inconsistent with local
12 zoning ordinances;
13 m. "Simulcast districts" means one or more of the following named
14 districts comprised of the counties within which pari-mutuel racing
15 events are conducted as follows:
16 District 1 New York City, Suffolk, Nassau, and
17 Westchester counties
18 District 2 Sullivan county
19 District 3 Saratoga county
20 District 4 Oneida county
21 District 5 Erie, Genesee and Ontario counties
22 n. "Initial out-of-state thoroughbred track" means the track commenc-
23 ing full-card simulcasting to New York prior to any other out-of-state
24 thoroughbred track after 1:00 PM on any calendar day.
25 o. "Second out-of-state thoroughbred track" means the track (or subse-
26 quent track or tracks where otherwise authorized by this article)
27 conducting full-card simulcasting to New York after the race program
28 from the initial out-of-state thoroughbred track that has commenced
29 simulcasting on any calendar day.
30 p. "Mixed meeting" means a race meeting which has a combination of
31 thoroughbred, quarter horse, Appaloosa, paint, and/or Arabian racing on
32 the same race program.
33 q. "Account wagering" means a form of pari-mutuel wagering in which a
34 person establishes an account with an account wagering licensee and
35 subsequently communicates via telephone or other electronic media to the
36 account wagering licensee wagering instructions concerning the funds in
37 such person's account and wagers to be placed on the account owner's
38 behalf.
39 r. "Account wagering licensee" means racing associations, and corpo-
40 rations; franchised corporations, off-track betting corporations, and
41 commission approved multi-jurisdictional account wagering providers that
42 have been authorized by the commission to offer account wagering.
43 s. "Dormant account" means an account wagering account held by an
44 account wagering licensee in which there has been no wagering activity
45 for three years.
46 t. "Multi-jurisdictional account wagering provider" means a business
47 entity domiciled in a jurisdiction, other than the state of New York,
48 that does not operate either a simulcast facility that is open to the
49 public within the state of New York or a licensed or franchised race-
50 track within the state, but which is licensed by such other jurisdiction
51 to offer pari-mutuel account wagering on races such provider simulcasts
52 and other races it offers in its wagering menu to persons located in or
53 out of the jurisdiction issuing such license.
54 § 44. Section 1002 of the racing, pari-mutuel wagering and breeding
55 law, as added by chapter 363 of the laws of 1984, subdivision 2 as
S. 5883 102 A. 8101
1 amended by chapter 18 of the laws of 2008, is amended to read as
2 follows:
3 § 1002. General jurisdiction. 1. The [state racing and wagering board]
4 commission shall have general jurisdiction over the simulcasting of
5 horse races and account wagering within the state, and the [board]
6 commission may issue rules and regulations in accordance with the
7 provisions of this article.
8 2. The [board] commission shall annually submit reports on or before
9 July first following each year in which simulcasting and account wager-
10 ing is conducted to the director of the budget, the chairman of the
11 senate finance committee and the chairman of the assembly ways and means
12 committee evaluating the results of such simulcasts and account wagering
13 on the compatibility with the well-being of the horse racing, breeding
14 and pari-mutuel wagering industries in this state and make any recommen-
15 dations it deems appropriate. Such reports may be submitted together
16 with the reports required by subdivision two of section two hundred
17 thirty-six and subparagraph (iii) of paragraph a and subparagraph (i) of
18 paragraph b of subdivision one of section three hundred eighteen of this
19 chapter.
20 § 45. Section 1003 of the racing, pari-mutuel wagering and breeding
21 law, as added by chapter 363 of the laws of 1984, subdivision 1 as sepa-
22 rately amended by chapters 2 and 70 of the laws of 1995, paragraph (a)
23 of subdivision 1 as amended by section 1 of part U of chapter 59 of the
24 laws of 2013, the opening paragraph of paragraph a of subdivision 2 as
25 amended by chapter 538 of the laws of 1999 and subdivision 5 as amended
26 by chapter 287 of the laws of 1985, is amended to read as follows:
27 § 1003. Licenses for simulcast facilities. 1. (a) Any racing associ-
28 ation or corporation or regional off-track betting corporation, author-
29 ized to conduct pari-mutuel wagering under this chapter, desiring to
30 display the simulcast of horse races on which pari-mutuel betting shall
31 be permitted in the manner and subject to the conditions provided for in
32 this article may apply to the [board] commission for a license so to do.
33 Applications for licenses shall be in such form as may be prescribed by
34 the [board] commission and shall contain such information or other mate-
35 rial or evidence as the [board] commission may require. No license shall
36 be issued by the [board] commission authorizing the simulcast trans-
37 mission of thoroughbred races from a track located in Suffolk county.
38 The fee for such licenses shall be five hundred dollars per simulcast
39 facility and for account wagering licensees that do not operate either a
40 simulcast facility that is open to the public within the state of New
41 York or a licensed racetrack within the state, twenty thousand dollars
42 per year payable by the licensee to the [board] commission for deposit
43 into the general fund. Except as provided [herein] in this section, the
44 [board] commission shall not approve any application to conduct simul-
45 casting into individual or group residences, homes or other areas for
46 the purposes of or in connection with pari-mutuel wagering. The board
47 may approve simulcasting into residences, homes or other areas to be
48 conducted jointly by one or more regional off-track betting corporations
49 and one or more of the following: a franchised corporation, thoroughbred
50 racing corporation or a harness racing corporation or association;
51 provided (i) the simulcasting consists only of those races on which
52 pari-mutuel betting is authorized by this chapter at one or more simul-
53 cast facilities for each of the contracting off-track betting corpo-
54 rations which shall include wagers made in accordance with section one
55 thousand fifteen, one thousand sixteen and one thousand seventeen of
56 this article; provided further that the contract provisions or other
S. 5883 103 A. 8101
1 simulcast arrangements for such simulcast facility shall be no less
2 favorable than those in effect on January first, two thousand five; (ii)
3 that each off-track betting corporation having within its geographic
4 boundaries such residences, homes or other areas technically capable of
5 receiving the simulcast signal shall be a contracting party; (iii) the
6 distribution of revenues shall be subject to contractual agreement of
7 the parties except that statutory payments to non-contracting parties,
8 if any, may not be reduced; provided, however, that nothing herein to
9 the contrary shall prevent a track from televising its races on an
10 irregular basis primarily for promotional or marketing purposes as found
11 by the board. For purposes of this paragraph, the provisions of section
12 one thousand thirteen of this article shall not apply. Any agreement
13 authorizing an in-home simulcasting experiment commencing prior to May
14 fifteenth, nineteen hundred ninety-five, may, and all its terms, be
15 extended until June thirtieth, two thousand fourteen; provided, however,
16 that any party to such agreement may elect to terminate such agreement
17 upon conveying written notice to all other parties of such agreement at
18 least forty-five days prior to the effective date of the termination,
19 via registered mail. Any party to an agreement receiving such notice of
20 an intent to terminate, may request the board to mediate between the
21 parties new terms and conditions in a replacement agreement between the
22 parties as will permit continuation of an in-home experiment until June
23 thirtieth, two thousand fourteen; and (iv) no in-home simulcasting in
24 the thoroughbred special betting district shall occur without the
25 approval of the regional thoroughbred track.
26 (b) Any agreement authorizing in-home simulcasting pursuant to this
27 section shall be in writing, and upon written request, a copy shall be
28 provided to the representative horsemen's group of the racing associ-
29 ation or corporation that is party to said agreement. Such agreement
30 shall include a categorical statement of new and incremental expenses
31 directly related and attributable to the conduct of in-home simulcast-
32 ing. The representative horsemen's group may, within thirty days of
33 receiving the agreement, petition the board for a determination as to
34 the appropriateness and reasonableness of any expenses attributed by
35 either the racing association or corporation or the off-track betting
36 corporation.
37 2. Before it may grant such license, the [board] commission shall
38 review and approve a plan of operation submitted by such applicant
39 including, but not limited to the following information:
40 a. A feasibility study denoting the revenue earnings expected from the
41 simulcast facility and the costs expected to operate such facility. No
42 feasibility study shall be received for a simulcast facility that is
43 applying to renew its license. The form of the feasibility study shall
44 be prescribed by the [board] commission and may include:
45 (i) the number of simulcast races to be displayed;
46 (ii) the types of wagering to be offered;
47 (iii) the level of attendance expected and the area from which such
48 attendance will be drawn;
49 (iv) the level of anticipated wagering activity;
50 (v) the source and amount of revenues expected from other than pari-
51 mutuel wagering;
52 (vi) the cost of operating the simulcast facility and the identifica-
53 tion of costs to be amortized and the method of amortization of such
54 costs;
55 (vii) the amount and source of revenues needed for financing the
56 simulcast facility;
S. 5883 104 A. 8101
1 (viii) the probable impact of the proposed operation on revenues to
2 local government;
3 b. The security measures to be employed to protect the facility, to
4 control crowds, to safeguard the transmission of the simulcast signals
5 and to control the transmission of wagering data to effectuate common
6 wagering pools;
7 c. The type of data processing, communication and transmission equip-
8 ment to be utilized;
9 d. The description of the management groups responsible for the opera-
10 tion of the simulcast facility;
11 e. The system of accounts to maintain a separate record of revenues
12 collected by the simulcast facility, the distribution of such revenues
13 and the accounting of costs relative to the simulcast operation;
14 f. The location of the facility and a written confirmation from appro-
15 priate local officials that the location of such facility and the number
16 of patrons expected to occupy such facility are in compliance with all
17 applicable local ordinances;
18 g. The written agreements and letters of consent between specified
19 parties pursuant to sections one thousand seven, one thousand eight and
20 one thousand nine of this article.
21 3. Within forty-five days of receipt of the plan of operation provided
22 in subdivision two of this section, the [board] commission shall issue
23 an order approving the plan, approving it with modifications or denying
24 approval, in which latter case the [board] commission shall state its
25 reasons therefor. Within such period the [board] commission may request
26 additional information or suggest amendments. If the [board] commission
27 fails to approve the plan, the applicant may request a public hearing to
28 be held within thirty days of the issuance of an order denying it. The
29 [board] commission shall issue its final determination within ten days
30 of such hearing. The applicant may submit an amended application no
31 sooner than thirty days after a denial.
32 4. No racing association, franchised corporation or corporation or
33 regional off-track betting corporation shall be allowed to operate a
34 simulcast facility except according to the provisions of an approved
35 plan of operation. No change in such plan of operation may occur until
36 an amendment proposing a change to the plan is approved by the [board]
37 commission. A plan of operation may be amended from time to time at the
38 request of either the operator or the [board] commission. The operator
39 shall have the right to be heard concerning any amendment to the plan
40 and the [board] commission shall dispose of such proposed amendments as
41 expeditiously as practicable, but no later than thirty days following
42 submission by the operator or, in the case of amendments proposed by the
43 [board] commission, objection by the operator.
44 5. For the purpose of maintaining proper control over simulcasts
45 conducted pursuant to this article, the [state racing and wagering
46 board] commission shall license any person, association or corporation
47 participating in simulcasting, as the [board] commission may by rule
48 prescribe, including, if the [board] commission deem it necessary so to
49 do, any or all persons, associations or corporations who create,
50 distribute, transmit or display simulcast signals. In the case of
51 thoroughbred racing simulcasting or harness racing simulcasting, such
52 licenses shall be issued in accordance with and subject to the
53 provisions governing licenses for participants and employees in article
54 two or article three of this chapter as may be applicable to such type
55 of racing.
S. 5883 105 A. 8101
1 § 46. Section 1012 of the racing, pari-mutuel wagering and breeding
2 law, as amended by chapter 18 of the laws of 2008, subdivision 4-b as
3 added by chapter 402 of the laws of 2011 and subdivision 5 as amended by
4 section 10 of part U of chapter 59 of the laws of 2013, is amended to
5 read as follows:
6 § 1012. [Telephone accounts and telephone] Account wagering. [Any
7 regional off-track betting corporation, and any franchised corporation,
8 harness, thoroughbred, quarter horse racing association or corporation
9 licensed to conduct pari-mutuel racing may maintain telephone betting
10 accounts for wagers placed on races and special events offered by such
11 corporation or association.] Racing associations and corporations, fran-
12 chised corporations, off-track betting corporations and multi-jurisdic-
13 tional account wagering providers may apply to the commission to be
14 licensed to offer account wagering.
15 1. Racing associations and corporations, franchised corporations,
16 off-track betting corporations and multi-jurisdictional account wagering
17 providers may form partnerships, joint ventures, or any other affil-
18 iations or contractual arrangement in order to further the purposes of
19 this section. Multi-jurisdictional account wagering providers involved
20 in such joint affiliations or contractual arrangements shall follow the
21 same distributional policy with respect to retained commissions as their
22 in-state affiliate or contractual partner.
23 2. The commission shall promulgate rules and regulations to license
24 and regulate all phases of account wagering.
25 3. The commission shall specify a non-refundable application fee which
26 shall be paid by each applicant for an account wagering license or
27 renewal thereof.
28 4. Account wagering licensees shall utilize personal identification
29 numbers and such other technologies as the commission may specify to
30 assure that only the account holder has access to the advance deposit
31 wagering account.
32 5. Account wagering licensees shall provide for: a. withdrawals from
33 the wagering account only by means of a check made payable to the
34 account holder and sent to the address of the account holder or by means
35 of an electronic transfer to an account held by the verified account
36 holder or b. that the account holder may withdraw funds from the wager-
37 ing account at a facility approved by the commission by presenting veri-
38 fiable personal and account identification information.
39 6. Account wagering licensees may engage in interstate wagering trans-
40 actions only where there is compliance with chapter fifty-seven of title
41 fifteen of the United States code, commonly referred to as the "inter-
42 state horse racing act".
43 7. The account holder's deposits to the wagering account shall be
44 submitted by the account holder to the account wagering licensee and
45 shall be in the form of one of the following: a. cash given to the
46 account wagering licensee; b. check, money order, negotiable order of
47 withdrawal, or wire or electronic transfer, payable and remitted to the
48 account wagering licensee; or c. charges made to an account holder's
49 debit or credit card upon the account holder's direct and personal
50 instruction, which instruction may be given by telephone communication
51 or other electronic means to the account wagering licensee or its agent
52 by the account holder if the use of the card has been approved by the
53 account wagering licensee.
54 8. a. Each wager shall be in the name of a natural person and shall
55 not be in the name of any beneficiary, custodian, joint trust, corpo-
56 ration, partnership or other organization or entity.
S. 5883 106 A. 8101
1 b. A wagering account may be established by a person completing an
2 application form approved by the commission and submitting it together
3 with a certification, or other proof, of age and residency. Such form
4 shall include the address of the principal residence of the prospective
5 account holder and a statement that a false statement made in regard to
6 an application may subject the applicant to prosecution.
7 c. The prospective account holder shall submit the completed applica-
8 tion to the account wagering licensee. The account wagering licensee may
9 accept or reject an application after receipt and review of the applica-
10 tion and certification, or other proof, of age and residency for compli-
11 ance with this section.
12 d. No person other than the person in whose name an account has been
13 established may issue wagering instructions relating to that account or
14 otherwise engage in wagering transactions relating to that account.
15 9. A wagering account shall not be assignable or otherwise transfera-
16 ble.
17 10. Except as otherwise provided in this article or in regulations
18 which the commission may adopt pursuant thereto, all account wagers
19 shall be final and no wager shall be canceled by the account holder at
20 any time after the wager has been accepted by the account wagering
21 licensee.
22 11. Dormant accounts shall be treated as abandoned property pursuant
23 to section three hundred of the abandoned property law.
24 12. Account wagering providers must possess appropriate totalizator
25 and accounting controls that will safeguard the transmission of wagering
26 data and will keep a system of accounts which will maintain a separate
27 record of revenues and an accounting of costs relative to the operation
28 of the wagering provider.
29 13. Wagers placed with the account wagering providers shall result in
30 the combination of all wagers placed with such provider with the wager-
31 ing pools at the host track so as to produce common pari-mutuel betting
32 pools for the calculation of odds and the determination of payouts from
33 such pools, which payout shall be the same for all winning tickets,
34 irrespective of whether a wager is placed at a host track or at an
35 account wagering provider.
36 14. Any [regional off-track betting corporation and any franchised
37 corporation, harness, thoroughbred, quarter horse racing association or
38 corporation licensed to conduct pari-mutuel racing] account wagering
39 licensee may require a minimum account balance in an amount to be deter-
40 mined by such entity.
41 [2.] 15. a. Any regional off-track betting corporation may suspend
42 collection of the surcharge imposed under section five hundred thirty-
43 two of this chapter on winning wagers placed in [telephone] wagering
44 accounts maintained by such regional corporation.
45 b. In a city of one million or more any regional off-track betting
46 corporation, with the approval of the mayor of such city, may suspend
47 collection of the surcharge imposed under section five hundred thirty-
48 two of this chapter in winning wagers placed in [telephone] wagering
49 accounts maintained by such regional corporation.
50 [3. Any telephone account maintained by a regional off-track betting
51 corporation, franchised corporation, harness, thoroughbred, quarter
52 horse association or corporation, with inactivity for a period of three
53 years shall be forfeited and paid to the commissioner of taxation and
54 finance. Such amounts when collected shall be paid by the commissioner
55 of taxation and finance into the general fund of the state treasury.
S. 5883 107 A. 8101
1 4.] 16. The maintenance and operation of such [telephone] wagering
2 accounts provided for in this section shall be subject to rules and
3 regulations of the [state racing and wagering board] commission. The
4 [board] commission shall include in such regulation a requirement that
5 [telephone] wagering account information pertaining to surcharge and
6 nonsurcharge [telephone] wagering accounts shall be separately reported.
7 [4-a.] 17. For the purposes of this section, "telephone [betting]
8 wagering accounts" [and "telephone wagering"] shall mean and include all
9 those wagers which utilize any wired or wireless communications device,
10 including but not limited to wireline telephones, wireless telephones[,]
11 and the internet[,] to transmit the placement of wagers on races and
12 special events offered by any regional off-track betting corporation,
13 and any harness, thoroughbred, quarter horse racing association or
14 corporation licensed or franchised to conduct pari-mutuel racing in [New
15 York] this state.
16 [4-b.] 18. Every racing association, off-track betting corporation,
17 franchised corporation, harness, thoroughbred, quarter horse racing
18 association or corporation or other entity licensed or franchised in
19 this state to conduct pari-mutuel racing and wagering, or authorized to
20 conduct races within the state, which operates [an account] a wagering
21 [platform] account for the acceptance of wagers, shall locate the call
22 center where such wagers are received within the state of New York.
23 [5. The provisions of this section shall expire and be of no further
24 force and effect after June thirtieth, two thousand fourteen.]
25 § 47. The racing, pari-mutuel wagering and breeding law is amended by
26 adding a new section 1012-a to read as follows:
27 § 1012-a. Multi-jurisdictional account wagering providers. A multi-
28 jurisdictional account wagering provider shall only be licensed under
29 the following conditions:
30 1. the multi-jurisdictional account wagering provider is licensed by
31 the state in which it is located and, if required, by each state in
32 which it operates;
33 2. the character and the background of the multi-jurisdictional
34 account wagering provider is such that granting the applications for a
35 license is in the public interest and the best interest of honest horse
36 racing;
37 3. the multi-jurisdictional account wagering provider shall utilize
38 the services of an independent third party to perform identity and
39 verification services with respect to the establishment of wagering
40 accounts for persons who are residents of the state of New York;
41 4. the commission shall be allowed access to the premises of the
42 multi-jurisdictional account wagering provider to visit, investigate
43 and, place such expert accountants and other persons it deems necessary
44 for the purpose of insuring compliance with the rules and regulations of
45 the commission;
46 5. if not already registered, the multi-jurisdictional account wager-
47 ing provider shall agree promptly to take those steps necessary to qual-
48 ify to do business in New York state, and to maintain such status in
49 good standing throughout the license period;
50 6. multi-jurisdictional account wagering providers shall pay a market
51 origin fee equal to five per centum on each wager accepted from New York
52 residents. Multi-jurisdictional account wagering providers shall make
53 the required payments to the market origin account on or before the
54 fifth business day of each month and such required payments shall cover
55 payments due for the period of the preceding calendar month; provided,
56 however, that such payments required to be made on April fifteenth shall
S. 5883 108 A. 8101
1 be accompanied by a report under oath, showing the total of all such
2 payments, together with such other information as the commission may
3 require. A penalty of five per centum and interest at the rate of one
4 per centum per month from the date the report is required to be filed to
5 the date the payment shall be payable in case any payments required by
6 this subdivision are paid when due. If the commission determines that
7 any moneys received under this subdivision were paid in error, the
8 commission may cause the same to be refunded without interest out of any
9 moneys collected thereunder, provided an application therefor is filed
10 with the commission within one year from the time the erroneous payment
11 was made. The commission shall pay into the racing regulation account,
12 under the joint custody of the comptroller and the commission, the total
13 amount of the fee collected pursuant to this section.
14 § 48. Subdivision 2 of section 1017 of the racing, pari-mutuel wager-
15 ing and breeding law, as amended by chapter 18 of the laws of 2008, is
16 amended to read as follows:
17 2. a. Maintenance of effort. Any off-track betting corporation which
18 engages in accepting wagers on the simulcasts of thoroughbred races from
19 out-of-state or out-of-country as permitted under subdivision one of
20 this section shall submit to the [board] commission, for its approval, a
21 schedule of payments to be made in any year or portion thereof, that
22 such off-track corporation engages in nighttime thoroughbred simulcast-
23 ing. In order to be approved by the [board] commission, the payment
24 schedule shall be identical to the actual payments and distributions of
25 such payments to tracks and purses made by such off-track corporation
26 pursuant to the provisions of section one thousand fifteen of this arti-
27 cle during the year two thousand two, as derived from out-of-state
28 harness races displayed after 6:00 P.M. If approved by the [board]
29 commission, such scheduled payments shall be made from revenues derived
30 from any simulcasting conducted pursuant to this section and section one
31 thousand fifteen of this article.
32 b. Additional payments. During each calendar year, to the extent, and
33 at such time in the event, that aggregate statewide wagering handle
34 after 7:30 P.M. on out-of-state and out-of-country thoroughbred races
35 exceeds one hundred million dollars, each off-track betting corporation
36 conducting such simulcasting shall pay to its regional harness track or
37 tracks, an amount equal to two percent of its proportionate share of
38 such excess handle. In any region where there are two or more regional
39 harness tracks, such two percent shall be divided between or among the
40 tracks in a proportion equal to the proportion of handle on live harness
41 races conducted at such tracks during the preceding calendar year. Fifty
42 percent of the sum received by each track pursuant to this paragraph
43 shall be used exclusively for increasing purses, stakes and prizes at
44 that regional harness track. For the purpose of determining whether
45 such aggregate statewide handle exceeds one hundred million dollars, all
46 wagering on such thoroughbred races accepted by licensed multi-jurisdic-
47 tional account wagering providers from customers within New York state
48 shall be excluded.
49 § 49. Section 503 of the racing, pari-mutuel wagering and breeding law
50 is amended by adding a new subdivision 12-a to read as follows:
51 12-a. To enter into, amend, cancel and terminate agreements for the
52 performance among themselves, licensed racing associations and corpo-
53 rations, and multi-jurisdictional account wagering providers, as defined
54 in section one thousand one of this chapter, of their respective func-
55 tions, powers and duties on a cooperative or contract basis.
S. 5883 109 A. 8101
1 § 50. The racing, pari-mutuel wagering and breeding law is amended by
2 adding a new section 115-b to read as follows:
3 § 115-b. Market origin credits. 1. Notwithstanding any other provision
4 of law to the contrary, any racing associations and corporations, fran-
5 chised corporations, and off-track betting corporations that makes a
6 payment of the regulatory fees imposed by this chapter may reduce such
7 payment by an amount equal to the market origin credit allocated to such
8 racing association or corporation, franchised corporation, or off-track
9 betting corporation by the commission. The commission shall allocate
10 credits in an amount equal to ninety percent of the amount received from
11 the market origin fee paid pursuant to subdivision six of section one
12 thousand twelve-a of this chapter for the period from the sixteenth day
13 of the preceding month through the fifteenth day of the current month.
14 The commission shall notify participants of allocations on or before the
15 twentieth day of the current month.
16 2. The commission shall allocate credits to racing associations and
17 corporations, franchised corporations, and off-track betting corpo-
18 rations in the following amounts:
19 a. Forty percent of the amount received from the market origin fee
20 paid pursuant to subdivision six of section one thousand twelve-a of
21 this chapter to regional off-track betting corporations. Allocations to
22 individual regional off-track betting corporations shall be made based
23 on a ratio where the numerator is the regional corporation's total
24 in-state handle for the previous calendar year as calculated by the
25 commission and the denominator is the total in-state handle of all the
26 regional off-track betting corporations for the previous calendar year
27 as calculated by the commission;
28 b. Fifty percent of the amount received from the market origin fee
29 paid pursuant to subdivision six of section one thousand twelve-a of
30 this chapter to the racing associations and corporations and franchised
31 corporations. Allocations to individual racing associations and corpo-
32 rations and franchised corporations shall be made as follows:
33 (i) Sixty percent to thoroughbred racing associations and franchised
34 corporations. Five-sixths shall be allocated to a franchised corpo-
35 ration and one-sixth shall be allocated to a thoroughbred racing associ-
36 ation.
37 (ii) Forty percent to harness racing associations and corporations.
38 Allocations to individual harness racing associations and corporations
39 shall be made based on a ratio where the numerator is the association's
40 or corporation's total in-state handle on live racing for the previous
41 calendar year as calculated by the commission and the denominator is the
42 total in-state on live handle for all harness racing associations and
43 corporations for the previous calendar year as calculated by the commis-
44 sion.
45 3. As a condition for any racing association or corporation or fran-
46 chised corporation to claim any market origin credits allocated to it,
47 such racing association or corporation or franchised corporation must
48 make payments for moneys otherwise to be used to pay the regulatory fee
49 as follows:
50 (i) Payment of an amount equal to forty percent of the allocated cred-
51 its into an account used solely for the purpose of enhancing purses at
52 such racing association or corporation or franchised corporation. Such
53 payment shall be made within five days from receipt of notification of
54 an allocation by the commission of an allocation of market origin cred-
55 its;
S. 5883 110 A. 8101
1 (ii) Payment of an amount equal to twenty percent of the allocated
2 credits to the state's breeding funds. Sixty percent of the payments to
3 the breeding funds shall be allocated to the New York state thoroughbred
4 breeding and development fund corporation established pursuant to
5 section two hundred fifty-two of this chapter, and forty percent to the
6 agriculture and New York state horse breeding development fund estab-
7 lished pursuant to section three hundred thirty of this chapter. Such
8 payment shall be made within five days from receipt of notification of
9 an allocation by the commission of an allocation of market origin cred-
10 its.
11 4. The commission shall promulgate any rules and regulations necessary
12 for the administration of the market origin credit.
13 § 51. Section 99-i of the state finance law, as added by section 26 of
14 part F3 of chapter 62 of the laws of 2003, is amended to read as
15 follows:
16 § 99-i. Racing regulation account. 1. There is hereby established in
17 the joint custody of the comptroller and the [racing and wagering board]
18 gaming commission a special revenue fund to be known as the "racing
19 regulation account".
20 2. The racing [revenue] regulation account shall consist of all money
21 received by the [board] commission as regulatory fees and market origin
22 fees pursuant to the provisions of the racing, pari-mutuel wagering and
23 breeding law.
24 3. Moneys of this account shall be available to the [board] commission
25 to pay for the costs of carrying out the purposes of the racing, pari-
26 mutuel wagering and breeding law; provided, however, an amount equal to
27 five percent of the amount received by the account from the market
28 origin fee imposed by subdivision six of section one thousand twelve-a
29 of the racing, pari-mutuel wagering and breeding law shall be trans-
30 ferred to the state department of taxation and finance and the depart-
31 ment shall deem this transfer as a payment of a pari-mutuel tax.
32 4. All payments from the fund shall be made on the audit and warrant
33 of the comptroller.
34 (f) Sections forth through forty-eight of this act shall take effect
35 January 1, 2014; except that the New York state gaming commission may
36 accept and review applications for licenses for account wagering and for
37 multi-jurisdictional account wagering providers commencing on October 1,
38 2013.
39 § 52. This act shall take effect immediately; provided, however, that:
40 (a) sections one, two, five, nine, ten, twenty-seven and thirty-one of
41 this act shall take effect on the first of January next succeeding the
42 date upon which the people shall approve and ratify amendments to subdi-
43 vision 1 of section 9 of article I of the constitution by a majority of
44 the electors voting thereon relating to casino gambling in the state;
45 (b) sections six, seven, fourteen and sixteen of this act shall take
46 effect on the same date as the agreement between the Oneida Nation of
47 New York and the state of New York entered into on the sixteenth day of
48 May, 2013 takes effect; provided, further, that the amendments to subdi-
49 vision 2 of section 99-h of the state finance law made by section six of
50 this act shall take effect on the same date as the reversion of such
51 section as provided in section 2 of chapter 747 of the laws of 2006, as
52 amended; provided, further, that the amendments to subdivision 3 of
53 section 99-h of the state finance law made by section seven of this act
54 shall be subject to the expiration and reversion of such subdivision as
55 provided in section 3 of part W of chapter 60 of the laws of 2011, as
56 amended when upon such date the provisions of section seven-a of this
S. 5883 111 A. 8101
1 act shall take effect; provided, further, that the amendments to subdi-
2 vision 3 of section 99-h of the state finance law made by section
3 seven-a of this act shall be subject to the the expiration and reversion
4 of such section as provided in section 2 of chapter 747 of the laws of
5 2006, as amended when upon such date the provisions of section eight of
6 this act shall take effect; provided, further, however, that the amend-
7 ment to section 99-h of the state finance law made by section nine of
8 this act shall not affect the expiration of such section and shall be
9 deemed repealed therewith; provided, further, that the state gaming
10 commission shall notify the legislative bill drafting commission upon
11 the occurrence of such agreement between the Oneida Nation and the state
12 of New York becoming effective in order that the commission may maintain
13 an accurate and timely effective data base of the official text of the
14 laws of the state of New York in furtherance of effecting the provisions
15 of section 44 of the legislative law and section 70-b of the public
16 officers law;
17 (c) section 1368 of the racing, pari-mutuel wagering and breeding law,
18 as added by section two of this act, shall take effect upon a change in
19 federal law authorizing the activity permitted by such section or upon a
20 ruling by a court of competent jurisdiction that such activity is
21 lawful. The state gaming commission shall notify the legislative bill
22 drafting commission upon the occurrence of the change in federal law or
23 upon the ruling of a court of competent jurisdiction in order that the
24 commission may maintain an accurate and timely effective data base of
25 the official text of the laws of the state of New York in furtherance of
26 effecting the provisions of section 44 of the legislative law and
27 section 70-b of the public officers law;
28 (d) section thirty-five of this act shall be deemed to have been in
29 full force and effect on and after April 1, 2013;
30 (e) notwithstanding the foregoing, sections thirty-two, thirty-three,
31 thirty-four, forty-one and forty-two of this act, shall only be effec-
32 tive in the event that an amendment to the constitution to authorize
33 casino gambling is defeated.
34 (f) section forty through forty-eight of this act shall take effect
35 January 1, 2014; except that the New York state gaming commission may
36 accept and review applications for licenses for account wagering and for
37 multi-jurisdictional account wagering providers commencing on October 1,
38 2013.