§ 1009 — Simulcast theaters

§ 1009. Simulcast theaters. 1. The commission may authorize and\napprove eight licenses, except that any approval of a license for a\nfranchised corporation shall not decrease the number of licenses\navailable, as of July first, nineteen hundred ninety to any other\neligible operator under subdivision two of this section, for the\noperation of simulcast theaters as defined in section one thousand one\nof this article. One such license shall only be approved for the\nregional off-track betting corporation defined by paragraph b of\nsubdivision one of section five hundred nineteen of this chapter.\n 2. Such a simulcast theater, pursuant to a license issued in\naccordance with the provisions of this section and section one thousand\nthree of this article may be owned or leased, and operated, (a) by one\nor more racing associations or corporations; (b) by the regional\noff-track betting corporation of the region where such simulcast theater\nfacility is to be located; (c) jointly by one or more racing\nassociations or corporations and the regional off-track betting\ncorporation of the region where such simulcast theater facility is to be\nlocated; or (d) by a franchised corporation; provided, however, that for\nthe purposes of paragraph (a) of subdivision two-a of this section, an\nentity authorized by paragraph (b) or (c) of this subdivision to own,\nlease or operate a simulcast theater may, pursuant to a competitive\nbidding procedure carried out in accordance with rules and regulations\nissued by the commission, select another person, firm or corporation to\noperate or jointly own or lease such facility and enter into a written\nagreement with such person, firm or corporation provided that such party\nshall be subject to the licensing requirements of the commission.\n 2-a. Notwithstanding the provisions of subdivision one of this\nsection, the commission may authorize one or more licenses, as provided\nin paragraphs (b) and (c) of subdivision two of this section, to enter\ninto a written agreement with another person, firm or corporation to\njointly operate or lease such facility for the operation of simulcast at\nentertainment theaters as special demonstration projects for purposes of\nstimulating economic development, employment opportunities and state and\nlocal revenues. Such demonstration projects shall be licensed in\naccordance with all applicable laws, rules and regulations of this\narticle.\n (a) In Sullivan, Greene and Ulster counties the commission shall\ndetermine the number of such projects to be located in privately owned\nhotels in such counties for the exclusive use of the hotel guests.\n (b) The commission may additionally authorize one special\ndemonstration project within the city of New York.\n (c) The commission may authorize a special demonstration project to be\nlocated in any facility licensed pursuant to article thirteen of this\nchapter in Schenectady county. Notwithstanding the provisions of\nparagraph a of subdivision five of this section, an admission fee shall\nnot be required for a demonstration project authorized in this\nparagraph. On any day when a regional harness track conducts a live race\nmeeting, a demonstration facility within that region shall predominantly\ndisplay the live video of such regional harness track.\n The regional off-track betting corporations operating such\ndemonstration facilities within New York city may elect to apply the\nprovisions of section five hundred thirty-two of this chapter in lieu of\nany admission charges.\n 3. Any application for such license shall be subject to those\nconditions set forth in section one thousand three and shall also\ninclude:\n a. A written agreement between the sending tracks and the applicant;\n b. Letters of consent to the application from any regional track that\nis not a party to the operation of the proposed theater unless such\ntrack is located more than forty miles from the proposed simulcast\ntheater; and a copy of any agreement between the applicant and such\ncorporation pursuant to which such consent has been given, subject to\nthe provision of subdivision two of section one thousand seven of this\narticle. Notwithstanding the foregoing, the Nassau region may apply to\nlocate one simulcast theater within Nassau County without a letter of\nconsent from the operator of the regional track provided the proposed\nsimulcast theater is not within fifteen miles of the closest border of\nany racing facility operated by a franchised corporation.\n c. Except for an application from a franchised corporation to operate\nwithin the Suffolk region, Nassau region, New York City region, or\nWestchester county in the absence of enabling legislation, a letter of\nconsent to the application from the regional off-track betting\ncorporation of the region where such simulcast theater facility is to be\nlocated if such corporation is not a party to the operation of the\nproposed theater.\n d. If such theater is to be jointly operated by one or more racing\nassociations or corporations or by one or more racing associations or\ncorporations and the regional off-track betting corporation of the\nregion where such simulcast theater is to be located or if the costs,\nrevenues and/or net profits from the operation of such facility are to\nbe allocated among more than one such party, a copy of a written\nagreement among such corporations or associations as to the rights and\nresponsibilities of each such party and the provisions pursuant to which\ncosts, revenues and/or net profits are to be allocated.\n e. A copy of a resolution adopted by the governing body of the city,\ntown or village in which the proposed simulcast theater is to be\nlocated, approving the application and requesting that the application\nfor the proposed simulcasting theater be approved. In a city of one\nmillion or more, approval of the mayor shall also be required. Approval\nof the governing body of the county and the county executive within\nwhich such municipality is located shall also be required. If the\nproposed facility is to be located wholly within a village, approval by\nthe governing body of the town or towns within which such village is\nlocated shall also be required.\n f. An application from a franchised corporation shall not be\nconsidered by a city of one million or more, earlier than eighteen\nmonths after this provision shall have become law.\n 4. Notwithstanding any inconsistent provisions of this chapter, the\nsums retained by any associations or corporations from the total\ndeposits in pools wagered on simulcast racing events at a simulcast\ntheater as provided in subdivision one of this section shall be equal to\nthe rates of retained percentage applicable to the sending track.\n a. Of the sums retained by the operator as provided in this\nsubdivision, the pari-mutuel tax shall be levied at the following rates\nplus twenty percent of the breaks: from wagers on thoroughbred races,\neight-tenths of one percent of pools generated from regular wagers; one\nand three-tenths percent of pools generated from multiple wagers; two\nand eight-tenths percent of pools generated from exotic wagers; and\nthree and one-half percent of pools generated from super exotic wagers;\nand from wagers on harness races, one-half of one percent of pools\ngenerated from regular wagers; one percent of pools generated from\nmultiple wagers; two and one-half percent of pools generated from exotic\nwagers and three percent of pools generated from super exotic wagers.\n b. Of the sums retained by the operator as provided in this\nsubdivision, an amount equal to one percent of daily pools derived from\nbets on simulcasts of harness races shall be paid to the agriculture and\nNew York state horse breeding development fund, and an amount equal to\none-half of one percent of daily pools derived from bets on simulcasts\nof running races shall be paid to the New York state thoroughbred\nbreeding and development fund.\n c. The payment of the state tax imposed by this section shall be made\nto the commissioner of taxation and finance at such regular intervals as\nthe commissioner of taxation and finance may require, and shall be\naccompanied by a report, under oath, that sets forth such information as\nthe commissioner of taxation and finance may require. A penalty of five\npercent and interest at the rate of one percent per month from the date\nthe report is required to be filed to the date of payment of the tax\nshall be payable in case any tax imposed by this section is not paid\nwhen due. If the commissioner of taxation and finance determines that\nany moneys received under this paragraph were paid in error, the\ncommissioner may cause the same to be refunded without interest out of\nany moneys collected thereunder, provided an application therefor is\nfiled with the commissioner within one year from the time the erroneous\npayment was made. Such taxes, interest and penalties when collected,\nafter the deduction of refunds of taxes erroneously paid, shall be paid\nby the commissioner of taxation and finance into the general fund of the\nstate treasury.\n d. The operator shall pay to the commission as a regulatory fee, which\nfee is hereby levied, six-tenths of one percent of the total daily\npools.\n 4-a. Notwithstanding any inconsistent provision of this chapter, of\nthe sums received by a sending track, a portion shall be distributed to\npurses in accordance with a written agreement between the racing\nassociation or corporation operating such track and the horsemen's\norganization representing owners and trainers at such track, as\ndetermined by the commission. In the absence of such an agreement, fifty\npercent of the sums received by a sending track shall be distributed to\npurses.\n 5. a. An admission fee to simulcast theaters shall be charged and the\namount of such admission fee shall be subject to the approval of the\ncommission.\n c. Any county (except a county wholly within a city) or city, or both,\nin which a simulcast theater is located, is hereby authorized and\nempowered to adopt and amend local laws imposing a tax on such admission\nfee at a rate not to exceed fifteen percent of the admission fee. The\nprovisions of article eight of this chapter relating to the\nadministration and collection of the taxes authorized to be imposed by\nsuch article (including the provisions relating to judicial review)\nshall apply to a tax imposed pursuant to the authority of this\nparagraph, in the same manner and with the same force and effect as if\nthe language of such provisions had been incorporated in full into this\nparagraph and had expressly referred to a tax authorized to be imposed\npursuant to this paragraph, except to the extent that any such provision\nis either inconsistent with a provision of this paragraph or is not\nrelevant to this paragraph.\n 6. The size, location and operation of a simulcast theater shall be\nsubject to local zoning ordinances and the approval of the commission.\n 7. The sale of food and beverages shall be subject to the applicable\nstate and local alcoholic beverage control laws and sales taxes.\n 8. All wagers resulting from the simulcast of racing events pursuant\nto this section shall be combined with wagers at the sending track so as\nto produce common pari-mutuel betting pools for the calculation of odds\nand the determination of payouts from such pool, which payout shall be\nthe same for all winning tickets, irrespective of whether a wager is\nplaced at a sending track or a simulcast theater.\n 9. Each license to operate a simulcast theater is subject to\nsuspension as provided in section one thousand four of this article.\n 10. The operator may contract with the city, town or village in which\nthe simulcast theater is located to pay to such municipality a sum not\nto exceed one percent of pools generated from all wagers at such theater\nin lieu of any other local tax.\n 11. The provisions of section one thousand thirteen of this chapter\nshall apply to any disputes with regard to the requirements of\nsubdivision three of this section provided, however, that binding\narbitration shall not be a remedy if the proposed simulcast theater is\nless than forty miles from a regional track.\n