Prohibits wagers on a horse racing event unless such racing event is offered pursuant to a fixed odds sports wagering agreement; authorizes agreements between a mobile sports wagering operator and an affiliate to locate self-service sports betting kiosks upon the premises of the affiliate.
STATE OF NEW YORK
________________________________________________________________________
3562
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Racing and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, in
relation to wagers on certain horse racing events and authorizing
agreements between a mobile sports wagering operator and an affiliate
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 1367 of the racing, pari-mutuel
2 wagering and breeding law is amended by adding three new paragraphs
3 (dd), (ee) and (ff) to read as follows:
4 (dd) "Horse racing event" means any sport or athletic event conducted
5 in New York state subject to the provisions of article two, three, five,
6 nine, or ten of this chapter, as well as any sport or athletic event
7 conducted outside of New York state, which if conducted in New York
8 state, would be subject to the provisions of such articles.
9 (ee) "Affiliate" means any off-track betting corporation, professional
10 sports stadium or arena, automobile racing facility that hosts a
11 national association for stock car auto racing national touring race,
12 franchised corporation, thoroughbred racing corporation or other race
13 track licensed pursuant to this chapter, or an operator of video lottery
14 gaming at Aqueduct licensed pursuant to section sixteen hundred seven-
15 teen-a of the tax law, which has an affiliate agreement with a mobile
16 sports wagering operator pursuant to section thirteen hundred sixty-sev-
17 en-a of this title.
18 (ff) "Fixed odds sports wagering agreement" means an agreement between
19 a mobile sports wagering operator or mobile sports wagering licensee and
20 an entity that possesses a license awarded pursuant to article two or
21 three of this chapter that has the authority to conduct pari-mutuel
22 wagering on the form of racing involved in the relevant horse racing
23 event and subject to the approval of the commission.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06819-01-3
A. 3562 2
1 § 2. Paragraph (s) of subdivision 1 of section 1367 of the racing,
2 pari-mutuel wagering and breeding law, as amended by section 3 of part Y
3 of chapter 59 of the laws of 2021, is amended to read as follows:
4 (s) "Prohibited sports event" means (i) a sport or athletic event in
5 which any New York college team participates regardless of where the
6 event takes place, [or] (ii) a high school sport or athletic event, or
7 (iii) a horse racing event. [The] Notwithstanding the foregoing, the
8 following shall not be considered prohibited sports events: [(i)] a
9 collegiate tournament, [and (ii)] a sports event within such tournament
10 so long as no New York college team is participating in that particular
11 sports event, and a horse racing event that is offered pursuant to a
12 fixed odds sports wagering agreement;
13 § 3. Subdivision 2 of section 1367 of the racing, pari-mutuel wager-
14 ing and breeding law is amended by adding a new paragraph (e-1) to read
15 as follows:
16 (e-1)(i)(1) A mobile sports wagering operator or mobile sports wager-
17 ing licensee may accept a fixed odds wager on a horse racing event if
18 such mobile sports wagering operator or mobile sports wagering licensee
19 has entered into a fixed odds sports wagering agreement with an entity
20 that has the authority to provide the content of such horse racing event
21 pursuant to article two or three of this chapter. In furtherance of any
22 fixed odds sports wagering agreement, an entity that holds a franchise
23 or license pursuant to article two of this chapter may only offer
24 content involving thoroughbred races and an entity that holds a license
25 pursuant to article three of this chapter may only offer content involv-
26 ing standardbred races.
27 (2) All fixed odds sports wagering agreements must be approved by the
28 commission prior to taking effect. Any content offered pursuant to an
29 approved fixed odds sports wagering agreement shall subsequently be made
30 available to any interested mobile sports wagering operator or mobile
31 sports wagering licensee on commercially reasonable terms, as determined
32 by the commission.
33 (ii) Any holder of a pari-mutuel wagering franchise or license pursu-
34 ant to article two or three of this chapter that enters into a fixed
35 odds sports wagering agreement shall separately maintain an agreement
36 with the applicable horsemen's association, setting forth the type of
37 wagers that may be placed on a horse racing event and the manner in
38 which revenue generated pursuant to the agreement or agreements with the
39 mobile sports wagering operator or mobile sports wagering licensee shall
40 be distributed.
41 § 4. Section 1367-a of the racing, pari-mutuel wagering and breeding
42 law is amended by adding a new subdivision 8 to read as follows:
43 8. (a) For purposes of this subdivision, an "affiliate agreement"
44 shall mean an agreement entered into between an affiliate and an opera-
45 tor, mobile sports wagering operator, or mobile sports wagering licensee
46 to locate self-service sports betting kiosks that are owned, operated
47 and maintained by the operator, mobile sports wagering operator, or
48 mobile sports wagering licensee, and connected via the internet to the
49 mobile sports wagering operator or licensee's server or other equipment
50 used to accept mobile sports wagers at a licensed gaming facility pursu-
51 ant to this section upon the premises of the affiliate. Authorized
52 sports bettors may place account wagers, place and redeem non-account
53 cash wagers, and deposit and withdraw account funds at such kiosks.
54 (b) All affiliate agreements shall be subject to regulations promul-
55 gated by the commission and must be approved by the commission prior to
56 taking effect. Any such affiliate agreement shall include a plan for the
A. 3562 3
1 timely payment of liabilities due to the affiliate under the agreement;
2 provided, however, that such payment of liabilities related to a wager
3 shall take place no later than sixty days after a wager is received at a
4 kiosk; and provided further, that the commission shall not approve any
5 such agreement between a mobile sports wagering operator and a profes-
6 sional sports stadium or arena until six months after the effective date
7 of this paragraph. For purposes of this paragraph, "liabilities" shall
8 not include any potential winnings.
9 § 5. This act shall take effect on the ninetieth day after it shall
10 have become a law. Effective immediately, the addition, amendment and/or
11 repeal of any rule or regulation necessary for the implementation of
12 this act on its effective date are authorized to be made and completed
13 on or before such effective date.
