NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8374A
SPONSOR: Stern TITLE OF BILL: An act to amend the racing, pari-mutuel wagering and
breeding law and the tax law, in relation to allowing Suffolk and Nassau
off-track betting corporations to host additional video lottery gaming
devices
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to allow the Suffolk and Nassau off-
track betting corporations to install and operate up to 2,000 video
lottery gaming terminals.
SUMMARY OF PROVISIONS:
Section 1: Amends Section 503 of the racing, pari-mutuel wagering and
breeding law by adding a new subdivision 10-a.
Section 2: Amends subdivision 14 of section 503 of the racing, pari-mu-
tuel wagering and breeding law, as added by section 3 of part S S of
chapter 60 of the laws of 2016.
Section 3: Amends subparagraph (ii) of paragraph 1 of subdivision b of
section 1612 of the tax law, as added by section 1 of part EE of chapter
59 of the laws of 2019.
Section 4: Amends paragraph 3 of subdivision a of section 1617-a of the
tax law, as added by section 1 of part SS of chapter 60 of the laws of
2016.
Section 5: Sets the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
Amends the title of the bill.
Amends the language in Section 1 to state that the Suffolk region can
install and operate up to two thousand video lottery gaming terminals.
Adds a new Section 2 amending subdivision 14 of section 503 of the
racing, pari-mutuel wagering and breeding law, as added by section 3 of
part SS of chapter 60 of the laws of 2016.
Re-numbers the subsequent sections 3 to 5.
Amends the language in Section 3 (formerly Section 2) to state that the
vendor's fees generated from the additional one thousand video lottery
gaming terminals, to be paid to the county of Suffolk, shall be used in
equal amounts by the county of Suffolk for economic development and
clean water infrastructure.
Amends the language in Section 4 (formerly Section 3) to state that the
Nassau region and the Suffolk region shall not exceed two thousand video
lottery gaming devices.
Amends the effective date in Section 5 (formerly Section 4) to the
sixtieth day after this act shall have become a law.
JUSTIFICATION:
Under current New York State law, both the Suffolk region off-track
betting corporation and the Nassau region off-track betting corporation
are only permitted to install and operate up to 1,000 video lottery
gaming devices. This bill would give both of these off-track betting
corporations the ability to install and operate up to 2,000 video
lottery gaming devices, which estimates show could possibly generate
over twice as much funding for State education.
Specifically, it has been estimated that Suffolk County alone could
receive an additional $15,000,000 to $20,000,000 in much needed recur-
ring annual revenue. The facility housing these devices in Suffolk Coun-
ty has one of the highest Win Per Unit (WPU) rates in both New York
State and the country, generating upwards of $100,000,000 in funding for
State education. Nassau County can expect to generate similar amounts of
annual recurring revenue as well.
PRIOR LEGISLATIVE HISTORY:
New Bill.
FISCAL IMPLICATIONS:
No cost to the state. However, it is estimated that this act will gener-
ate millions of dollars in revenue for Suffolk County and Nassau County
as well as the state.
EFFECTIVE DATE:
This act shall take effect on the sixtieth day after it shall have
become a law.
STATE OF NEW YORK
________________________________________________________________________
8374--A
2019-2020 Regular Sessions
IN ASSEMBLY
June 15, 2019
___________
Introduced by M. of A. STERN, JEAN-PIERRE -- read once and referred to
the Committee on Racing and Wagering -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the racing, pari-mutuel wagering and breeding law and
the tax law, in relation to allowing Suffolk and Nassau off-track
betting corporations to host additional video lottery gaming devices
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 503 of the racing, pari-mutuel wagering and breed-
2 ing law is amended by adding a new subdivision 10-a to read as follows:
3 10-a. In the Suffolk region, to install and operate up to two thousand
4 video lottery gaming terminals at a corporation's facility which is
5 licensed pursuant to section one thousand eight or one thousand nine of
6 this chapter;
7 § 2. Subdivision 14 of section 503 of the racing, pari-mutuel wagering
8 and breeding law, as added by section 3 of part SS of chapter 60 of the
9 laws of 2016, is amended to read as follows:
10 14. Nassau regional off-track betting is authorized to enter into and
11 perform an agreement pursuant to paragraph four of subdivision a of
12 section sixteen hundred seventeen-a of the tax law to have up to two
13 thousand video lottery terminals authorized pursuant to paragraph three
14 of subdivision a of section sixteen hundred seventeen-a of the tax law
15 hosted within the Aqueduct video lottery terminal facility.
16 § 3. The opening paragraph of subparagraph (ii) of paragraph 1 of
17 subdivision b of section 1612 of the tax law, as added by section 1 of
18 part EE of chapter 59 of the laws of 2019, is amended to read as
19 follows:
20 less a vendor's fee the amount of which is to be paid for serving as a
21 lottery agent to the track operator of a vendor track or the operator of
22 any other video lottery gaming facility authorized pursuant to section
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13300-08-9
A. 8374--A 2
1 sixteen hundred seventeen-a of this article; and in the Suffolk region,
2 less vendor's fees generated from the additional one thousand video
3 lottery gaming terminals, authorized pursuant to paragraph three of
4 subdivision a of section one thousand six hundred seventeen-a of this
5 article, to be paid to the county of Suffolk and which fees shall be
6 used in equal amounts by the county of Suffolk for economic development
7 and clean water infrastructure. The amount of the vendor's fee shall be
8 calculated as follows:
9 § 4. Paragraph 3 of subdivision a of section 1617-a of the tax law, as
10 added by section 1 of part SS of chapter 60 of the laws of 2016, is
11 amended to read as follows:
12 (3) a maximum of two facilities, which shall be vendors for all
13 purposes under this article[, neither to exceed one thousand video
14 lottery gaming devices,] established within region three of zone one as
15 defined by section one thousand three hundred ten of the racing, pari-
16 mutuel wagering and breeding law, one each operated by a corporation
17 established pursuant to section five hundred two of the racing, pari-mu-
18 tuel wagering and breeding law in the Suffolk region and the Nassau
19 region to be located within a facility authorized pursuant to sections
20 one thousand eight or one thousand nine of the racing, pari-mutuel
21 wagering and breeding law, provided however, that in the Nassau region
22 such facility shall not exceed two thousand video lottery gaming devices
23 and in the Suffolk region such facility shall not exceed two thousand
24 video lottery gaming devices; and
25 § 5. This act shall take effect on the sixtieth day after it shall
26 have become a law.
