§ 1003 — Licenses for simulcast facilities

§ 1003. Licenses for simulcast facilities. 1. (a) Any racing\nassociation or corporation or regional off-track betting corporation,\nauthorized to conduct pari-mutuel wagering under this chapter, desiring\nto display the simulcast of horse races on which pari-mutuel betting\nshall be permitted in the manner and subject to the conditions provided\nfor in this article may apply to the commission for a license so to do.\nApplications for licenses shall be in such form as may be prescribed by\nthe commission and shall contain such information or other material or\nevidence as the commission may require. No license shall be issued by\nthe commission authorizing the simulcast transmission of thoroughbred\nraces from a track located in Suffolk county. The fee for such licenses\nshall be five hundred dollars per simulcast facility and for account\nwagering licensees that do not operate either a simulcast facility that\nis open to the public within the state of New York or a licensed\nracetrack within the state, twenty thousand dollars per year payable by\nthe licensee to the commission for deposit into the general fund. Except\nas provided in this section, the commission shall not approve any\napplication to conduct simulcasting into individual or group residences,\nhomes or other areas for the purposes of or in connection with\npari-mutuel wagering. The commission may approve simulcasting into\nresidences, homes or other areas to be conducted jointly by one or more\nregional off-track betting corporations and one or more of the\nfollowing: a franchised corporation, thoroughbred racing corporation or\na harness racing corporation or association; provided (i) the\nsimulcasting consists only of those races on which pari-mutuel betting\nis authorized by this chapter at one or more simulcast facilities for\neach of the contracting off-track betting corporations which shall\ninclude wagers made in accordance with section one thousand fifteen, one\nthousand sixteen and one thousand seventeen of this article; provided\nfurther that the contract provisions or other simulcast arrangements for\nsuch simulcast facility shall be no less favorable than those in effect\non January first, two thousand five; (ii) that each off-track betting\ncorporation having within its geographic boundaries such residences,\nhomes or other areas technically capable of receiving the simulcast\nsignal shall be a contracting party; (iii) the distribution of revenues\nshall be subject to contractual agreement of the parties except that\nstatutory payments to non-contracting parties, if any, may not be\nreduced; provided, however, that nothing herein to the contrary shall\nprevent a track from televising its races on an irregular basis\nprimarily for promotional or marketing purposes as found by the\ncommission. For purposes of this paragraph, the provisions of section\none thousand thirteen of this article shall not apply. Any agreement\nauthorizing an in-home simulcasting experiment commencing prior to May\nfifteenth, nineteen hundred ninety-five, may, and all its terms, be\nextended until June thirtieth, two thousand twenty-six; provided,\nhowever, that any party to such agreement may elect to terminate such\nagreement upon conveying written notice to all other parties of such\nagreement at least forty-five days prior to the effective date of the\ntermination, via registered mail. Any party to an agreement receiving\nsuch notice of an intent to terminate, may request the commission to\nmediate between the parties new terms and conditions in a replacement\nagreement between the parties as will permit continuation of an in-home\nexperiment until June thirtieth, two thousand twenty-six; and (iv) no\nin-home simulcasting in the thoroughbred special betting district shall\noccur without the approval of the regional thoroughbred track.\n (b) Any agreement authorizing in-home simulcasting pursuant to this\nsection shall be in writing, and upon written request, a copy shall be\nprovided to the representative horsemen's group of the racing\nassociation or corporation that is party to said agreement. Such\nagreement shall include a categorical statement of new and incremental\nexpenses directly related and attributable to the conduct of in-home\nsimulcasting. The representative horsemen's group may, within thirty\ndays of receiving the agreement, petition the commission for a\ndetermination as to the appropriateness and reasonableness of any\nexpenses attributed by either the racing association or corporation or\nthe off-track betting corporation.\n 2. Before the commission may grant such license, the commission shall\nreview and approve a plan of operation submitted by such applicant\nincluding, but not limited to the following information:\n a. A feasibility study denoting the revenue earnings expected from the\nsimulcast facility and the costs expected to operate such facility. No\nfeasibility study shall be received for a simulcast facility that is\napplying to renew its license. The form of the feasibility study shall\nbe prescribed by the commission and may include:\n (i) the number of simulcast races to be displayed;\n (ii) the types of wagering to be offered;\n (iii) the level of attendance expected and the area from which such\nattendance will be drawn;\n (iv) the level of anticipated wagering activity;\n (v) the source and amount of revenues expected from other than\npari-mutuel wagering;\n (vi) the cost of operating the simulcast facility and the\nidentification of costs to be amortized and the method of amortization\nof such costs;\n (vii) the amount and source of revenues needed for financing the\nsimulcast facility;\n (viii) the probable impact of the proposed operation on revenues to\nlocal government;\n b. The security measures to be employed to protect the facility, to\ncontrol crowds, to safeguard the transmission of the simulcast signals\nand to control the transmission of wagering data to effectuate common\nwagering pools;\n c. The type of data processing, communication and transmission\nequipment to be utilized;\n d. The description of the management groups responsible for the\noperation of the simulcast facility;\n e. The system of accounts to maintain a separate record of revenues\ncollected by the simulcast facility, the distribution of such revenues\nand the accounting of costs relative to the simulcast operation;\n f. The location of the facility and a written confirmation from\nappropriate local officials that the location of such facility and the\nnumber of patrons expected to occupy such facility are in compliance\nwith all applicable local ordinances;\n g. The written agreements and letters of consent between specified\nparties pursuant to sections one thousand seven, one thousand eight and\none thousand nine of this article.\n 3. Within forty-five days of receipt of the plan of operation provided\nin subdivision two of this section, the commission shall issue an order\napproving the plan, approving it with modifications or denying approval,\nin which latter case the commission shall state its reasons therefor.\nWithin such period the commission may request additional information or\nsuggest amendments. If the commission fails to approve the plan, the\napplicant may request a public hearing to be held within thirty days of\nthe issuance of an order denying it. The commission shall issue its\nfinal determination within ten days of such hearing. The applicant may\nsubmit an amended application no sooner than thirty days after a denial.\n 4. No racing association, franchised corporation or corporation or\nregional off-track betting corporation shall be allowed to operate a\nsimulcast facility except according to the provisions of an approved\nplan of operation. No change in such plan of operation may occur until\nan amendment proposing a change to the plan is approved by the\ncommission. A plan of operation may be amended from time to time at the\nrequest of either the operator or the commission. The operator shall\nhave the right to be heard concerning any amendment to the plan and the\ncommission shall dispose of such proposed amendments as expeditiously as\npracticable, but no later than thirty days following submission by the\noperator or, in the case of amendments proposed by the commission,\nobjection by the operator.\n 5. For the purpose of maintaining proper control over simulcasts\nconducted pursuant to this article, the commission shall license any\nperson, association or corporation participating in simulcasting, as the\ncommission may by rule prescribe, including, if the commission deem it\nnecessary so to do, any or all persons, associations or corporations who\ncreate, distribute, transmit or display simulcast signals. In the case\nof thoroughbred racing simulcasting or harness racing simulcasting, such\nlicenses shall be issued in accordance with and subject to the\nprovisions governing licenses for participants and employees in article\ntwo or article three of this chapter as may be applicable to such type\nof racing.\n