Provides for the amount to be paid by off-track betting corporations to regional harness tracks from out-of-state and out-of-country simulcast revenue.
Summary
This bill amends New York’s racing, pari-mutuel wagering and breeding law to change how off-track betting corporations (OTBs) must make payments to regional harness tracks from revenue generated by out-of-state and out-of-country thoroughbred simulcasting. Under current law, OTBs that conduct nighttime simulcasting can be required to make payments tied to a maintenance-of-effort schedule. The bill replaces that language with a new payment formula tied to statewide wagering handle after 7:30 p.m. on those simulcasts, but only when that handle exceeds $100 million in a calendar year.
The required payment would be phased down over time: 2% of the OTB’s proportionate share of excess handle through 2025, 1.5% in 2026, 1% in 2027, and 0.5% in 2028, with no additional payment obligation beginning in 2029. If a region has more than one harness track, the payment is divided based on each track’s share of live harness-race handle from the prior year. The bill also requires that 50% of the money received by each track be used exclusively to increase purses, stakes, and prizes at that track, and it excludes certain New York customer wagering through licensed multi-jurisdictional account wagering providers from the handle calculation.
Impact
The bill would amend section 1017 of the Racing, Pari-Mutuel Wagering and Breeding Law, altering the statutory payment obligations of off-track betting corporations to regional harness tracks. It would create a declining, time-limited payment schedule tied to excess simulcast handle and would eliminate the obligation entirely after 2028. The measure also affects how payments are allocated among multiple harness tracks in a region and imposes a restricted-use requirement on half of the funds received, directing them to purses, stakes, and prizes.
Sentiment
Based on the bill text and the absence of recorded committee discussion or votes, the available context suggests a straightforward industry-focused proposal rather than a highly publicized or controversial measure. The bill appears designed to provide a structured revenue stream for regional harness tracks while gradually reducing the burden on off-track betting corporations over time. No formal vote history or transcript comments are available to indicate broader support or opposition.
Contention
The main points of potential contention are the reduced and sunsetted payment obligation, which may be viewed by harness tracks as insufficient or by OTBs as still too burdensome, depending on their revenue exposure. Another likely issue is the threshold-based trigger tied to statewide handle, which could be debated for how it affects when payments are owed and whether the exclusion for certain account-wagering handle is appropriate. The allocation rule for regions with multiple harness tracks and the requirement that 50% of funds be used for purses, stakes, and prizes may also draw attention from track operators and racing stakeholders.
Requires an off-track betting corporation that accepts wagers on the simulcasts of thoroughbred races from out-of-state or out-of-country to pay to its regional harness track or tracks an amount equal to three percent of handle generated from the acceptance of such wagers from out-of-state or out-of-country thoroughbred tracks after 7:30 P.M.
Requires an off-track betting corporation that accepts wagers on the simulcasts of thoroughbred races from out-of-state or out-of-country to pay to its regional harness track or tracks an amount equal to three percent of handle generated from the acceptance of such wagers from out-of-state or out-of-country thoroughbred tracks after 7:30 P.M.
Prohibits regional off-track betting corporations from providing items of value exceeding fifteen dollars to any board member, officer, or employee of the corporation, any contractor, subcontractor, consultant, or other agent of the corporation, or any spouse, child, sibling or parent of such persons; adds reporting requirements for regional off-track betting corporations.