§ 1617-A — Video lottery gaming

New York § 1617-A

• Jurisdiction: New York
• Law TAX: Tax
• Art. 34: New York State Lottery For Education

Text

§ 1617-a. Video lottery gaming. a. The gaming commission is hereby\nauthorized to license, pursuant to rules and regulations to be\npromulgated by the gaming commission, the operation of video lottery\ngaming at;\n (1) Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs\nracetracks;\n (2) any other racetrack licensed pursuant to article three of the\nracing, pari-mutuel wagering and breeding law located in a county or\ncounties in which video lottery gaming has been authorized pursuant to\nlocal law, excluding the licensed racetrack commonly referred to in\narticle three of the racing, pari-mutuel wagering and breeding law as\nthe "New York state exposition" held in Onondaga county and the\nracetracks of the non-profit racing association known as Belmont Park\nracetrack and the Saratoga thoroughbred racetrack;\n (3) a maximum of two facilities, which shall be vendors for all\npurposes under this article established within region three of zone one\nas defined by section one thousand three hundred ten of the racing,\npari-mutuel wagering and breeding law, one each operated by a\ncorporation established pursuant to section five hundred two of the\nracing, pari-mutuel wagering and breeding law in the Suffolk region and\nthe Nassau region to be located within a facility authorized pursuant to\nsections one thousand eight or one thousand nine of the racing,\npari-mutuel wagering and breeding law, provided however, that in the\nNassau region such facility shall not exceed one thousand video lottery\ngaming devices and in the Suffolk region such facility shall not exceed\ntwo thousand video lottery gaming devices; and\n (4) Aqueduct racetrack, within the lottery terminal facility, pursuant\nto an agreement between the corporation established pursuant to section\nfive hundred two of the racing, pari-mutuel wagering and breeding law in\nthe Nassau region and the operator of video lottery gaming at Aqueduct\nracetrack, when such agreement is approved by the gaming commission and\nas long as such agreement is in place, and when such agreement is\naccompanied by a detailed spending plan for the corporation established\npursuant to section five hundred two of the racing, pari-mutuel wagering\nand breeding law in the Nassau region, which includes a plan for the\ntimely payment of liabilities due to the franchised corporation, and\nwhen such video lottery devices are hosted by the operator of video\nlottery gaming at Aqueduct racetrack on behalf of the corporation\nestablished pursuant to section five hundred two of the racing,\npari-mutuel wagering and breeding law in the Nassau region in lieu of\nthe development of a facility in Nassau county as authorized by\nparagraph three of subdivision a of this section. Such agreement reached\nby the parties shall identify the agency principally responsible for\nfunding, approving or undertaking any actions of such agreement.\nProvided, however, nothing in this paragraph shall infringe upon the\nrights of the corporation established pursuant to section five hundred\ntwo of the racing, pari-mutuel wagering and breeding law in the Nassau\nregion to develop a facility pursuant to paragraph three of this\nsubdivision upon the expiration, termination, or withdrawal of such\nagreement.\n (5) At a facility located in Orange county to be operated by the\nentity otherwise licensed to operate video lottery gaming at Monticello\nracetrack, provided that: (i) such licensed entity is no longer\noperating video lottery gaming at Monticello racetrack and provided that\nMonticello racetrack is conducting racing operations; (ii) such facility\nin Orange county is not sited within a thirty mile radius of the video\nlottery gaming facility at Yonkers racetrack; and (iii) the licensed\nentity, its subsidiaries and affiliates, including the entity licensed\nto operate a commercial gaming facility in Sullivan county, and the\nentity licensed to operate video lottery gaming at Yonkers racetrack\nenter into a mitigation agreement, to be approved by the gaming\ncommission, which shall include, but not be limited to, terms that\nrequire: (A) the operator of the facility in Orange county to make an\nannual payment to the entity licensed to operate video lottery gaming or\ncommercial gaming at Yonkers racetrack to account for the effects that\nsiting such facility in Orange county would likely have on the gross\ngaming revenue of the entity licensed to operate at Yonkers racetrack;\n(B) employment levels at the affected facilities; and (C) that upon\nexpiration or termination of the agreement, the authority to operate\nvideo lottery gaming in Orange county shall cease. Notwithstanding any\nother provision of this subdivision, at no time shall an entity\noperating video lottery gaming in Orange county be permitted to apply\nfor or receive a license to operate a commercial gaming facility in that\ncounty.\n (6) Notwithstanding any other provision of law to the contrary, as a\ncondition of the license to operate a video lottery gaming facility\nlocated in Orange county, such operator shall provide an annual\ncertification to the New York state gaming commission that the staffing\nlevels at a commercial gaming facility located in zone two, region one\npursuant to section thirteen hundred ten of the racing, pari-mutuel\nwagering and breeding law (or any successor commercial gaming facility\nlocated in said region) are no less than one thousand four hundred\nseventy-three full-time, permanent employees. In furtherance of and\nwithout limiting the foregoing, the licensee for the commercial gaming\nfacility located in zone two, region one pursuant to section thirteen\nhundred ten of the racing, pari-mutuel wagering and breeding law (or any\nsuccessor commercial gaming facility located in such region) shall not\nconduct any mass, involuntary layoff events that would trigger worker\nadjustment and retraining notification (WARN) act notifications pursuant\nto article twenty-five-A of the labor law or otherwise result in the\nemployment levels at such facility dropping below levels mandated by\nthis section. For purposes of this section, "full-time, permanent\nemployee" shall mean an employee who has worked at the facility for a\nminimum of thirty-five hours per week for not less than four consecutive\nweeks and who is entitled to receive the usual and customary fringe\nbenefits extended to other employees with comparable rank and duties; or\ntwo part-time employees who have worked at the facility for a combined\nminimum of thirty-five hours per week for not less than four consecutive\nweeks and who are entitled to receive the usual and customary fringe\nbenefits extended to other employees with comparable rank and duties.\n (7) The village of Monticello, Sullivan county, the town of Thompson,\nSullivan county, and Sullivan county shall continue to receive\nassistance payments made pursuant to section fifty-four-l of the state\nfinance law.\n b. Such rules and regulations shall provide, as a condition of\nlicensure, that racetracks to be licensed are certified to be in\ncompliance with all state and local fire and safety codes, that the\ngaming commission is afforded adequate space, infrastructure, and\namenities consistent with industry standards for such video lottery\ngaming operations as found at racetracks in other states, that racetrack\nemployees involved in the operation of video lottery gaming pursuant to\nthis section are licensed by the gaming commission and such other terms\nand conditions of licensure as the gaming commission may establish.\nNotwithstanding any inconsistent provision of law, video lottery gaming\nat a racetrack pursuant to this section shall be deemed an approved\nactivity for such racetrack under the relevant city, county, town, or\nvillage land use or zoning ordinances, rules, or regulations. No entity\nlicensed by the gaming commission operating video lottery gaming\npursuant to this section may house such gaming activity in a structure\ndeemed or approved by the division as "temporary" for a duration of\nlonger than eighteen-months. Nothing in this section shall prohibit the\ngaming commission from licensing an entity to operate video lottery\ngaming at an existing racetrack as authorized in this subdivision\nwhether or not a different entity is licensed to conduct horse racing\nand pari-mutuel wagering at such racetrack pursuant to article two or\nthree of the racing, pari-mutuel wagering and breeding law.\n The gaming commission shall establish standards for approval of the\ntemporary and permanent physical layout and construction of any facility\nor building devoted to a video lottery gaming operation. In reviewing\nsuch application for the construction or reconstruction of facilities\nrelated or devoted to the operation or housing of video lottery gaming\noperations, the gaming commission shall ensure that such facility:\n (1) possesses superior consumer amenities and conveniences to\nencourage and attract the patronage of tourists and other visitors from\nacross the region, state, and nation.\n (2) has adequate motor vehicle parking facilities to satisfy patron\nrequirements.\n (3) has a physical layout and location that facilitates access to and\nfrom the horse racing track portion of such facility to encourage\npatronage of live horse racing events that are conducted at such track.\n c. The terminals authorized pursuant to paragraph four of subdivision\na of this section shall:\n (i) be deemed as operated by the corporation established pursuant to\nsection five hundred two of the racing, pari-mutuel wagering and\nbreeding law in the Nassau region for the purposes of section sixteen\nhundred twelve of this chapter and the distributions therefrom made as\nif the video lottery devices were located in Nassau county;\n (ii) consist exclusively of electronic table games, unless otherwise\napproved by the gaming commission and the director of the division of\nthe budget; and\n (iii) be individually designated as hosted.\n d. Notwithstanding any law, rule or regulation to the contrary, absent\nthe enactment of sufficient alternative revenue sources for the\nfranchised corporation in a chapter of law providing a statutory plan\nfor the prospective not-for-profit governing structure of The New York\nRacing Association, Inc., any agreement for the operation of terminals\nauthorized pursuant to paragraph four of subdivision a of this section\nshall require the operator of video lottery gaming at Aqueduct racetrack\nto maintain racing support for general thoroughbred racing operations\nand capital expenditures from video lottery gaming at Aqueduct\nracetrack, at the same level realized in two thousand thirteen, to be\nadjusted by the consumer price index for all urban consumers, as\npublished annually by the United States department of labor, bureau of\nlabor statistics.\n e. Video lottery gaming shall only be permitted for no more than\ntwenty consecutive hours per day and on no day shall such operation be\nconducted past 6:00 a.m.\n f. The gaming commission shall promulgate such rules and regulations\nas may be necessary for the implementation of video lottery gaming in\naccordance with the provisions of this section and paragraph five of\nsubdivision a of section sixteen hundred twelve of this article.\n g. All workers engaged in the construction, reconstruction,\ndevelopment, rehabilitation, or maintenance of any area for the purpose\nof the installation, maintenance, or removal of video lottery gaming\nterminals shall be subject to the provisions of articles eight and nine\nof the labor law to the extent provided in such articles.\n h. The gaming commission shall not approve the construction or\nalteration of any facility or building devoted to the operation or\nhousing of video lottery gaming until the person or entity selected to\noperate such video lottery gaming shall have submitted to the gaming\ncommission a statement of the location of the proposed facility or\nbuilding, together with a plan of such racetrack, and plans of all\nexisting buildings, seating stands and other structures on the grounds\nof such racetrack, in such form as the gaming commission may prescribe,\nand such plans shall have been approved by the gaming commission. The\ngaming commission, at the expense of the applicant, may order such\nengineering examination thereof as the gaming commission may deem\nnecessary. Such construction or alteration may be made only with the\napproval of the gaming commission and after examination and inspection\nof the plans thereof and the issuance of a permit by the gaming\ncommission.\n i. (1) The gaming commission may administer a free play allowance\nprogram to offer players or prospective players of video lottery games\nfree play credits for the purpose of increasing revenues earned by the\nvideo lottery gaming program for the support of education. For the\npurposes of this subdivision, "free play allowance credit" means a\nspecified dollar amount that (i) may be used by a player to play a video\nlottery game without paying any other consideration, and (ii) is not\nused in the calculation of total revenue wagered after payout of prizes.\n (2) For each video lottery gaming facility, the gaming commission\nshall authorize the use of free play allowance credits if the operator\nof such facility submits a written plan for the use of the free play\nallowance that the gaming commission determines is designed to increase\nthe amount of revenue earned by video lottery gaming at such facility\nfor the support of education.\n (3) For each video lottery facility, the annual value of the free play\nallowance credits authorized for use by the operator pursuant to this\nsubdivision shall not exceed an amount equal to fifteen percent of the\ntotal amount wagered on video lottery games after payout of prizes. The\ngaming commission shall establish procedures to assure that free play\nallowance credits do not exceed such amount.\n (4) The gaming commission, in conjunction with the director of the\nbudget, may suspend the use of free play allowance credits authorized\npursuant to this subdivision whenever they jointly determine that the\nuse of free play allowance credits are not effective in increasing the\namount of revenue earned for the support of education, and such use may\nnot be resumed unless the operator of such facility submits a new or\nrevised written plan for the use of the free play allowance that the\ngaming commission determines is designed more effectively to produce an\nincrease in the amount of revenue earned by video lottery gaming at such\nfacility for the support of education.\n (5) Nothing in this subdivision shall be deemed to prohibit the\noperator of a video lottery facility from offering free play credits to\nplayers or prospective players of video lottery games when the value of\nsuch free play credits is included in the calculation of the total\namount wagered on video lottery games and the total amount wagered after\npayout of prizes, and the operator of such facility pays the gaming\ncommission the full amount due as the result of such calculations.\n (6) The gaming commission may amend the contract with the provider of\nthe central computer system that controls the video lottery network\nduring the term of such contract in effect on the effective date of this\nsubdivision to provide additional consideration to such provider in an\namount determined by the gaming commission to be necessary to compensate\nfor (i) processing free play allowance transactions and (ii) system\nupdates and modifications otherwise needed as of such effective date.\n j. Every video lottery gaming license, and every renewal license,\nshall be valid for a period of five years, except that video lottery\ngaming licenses issued before the effective date of this subdivision\nshall be for a term expiring on the applicant's next birthday following\nJune thirtieth, two thousand fourteen.\n The gaming commission may decline to renew any license after notice\nand an opportunity for hearing if it determines that:\n (1) the licensee has violated section one thousand six hundred seven\nof this article;\n (2) the licensee has violated any rule, regulation or order of the\ngaming commission;\n (3) the applicant or its officers, directors or significant\nstockholders, as determined by the gaming commission, have been\nconvicted of a crime involving moral turpitude; or\n (4) that the character or fitness of the licensee and its officers,\ndirectors, and significant stockholders, as determined by the gaming\ncommission is such that the participation of the applicant in video\nlottery gaming or related activities would be inconsistent with the\npublic interest, convenience or necessity or with the best interests of\nvideo lottery gaming generally.\n k. The gaming commission, subject to notice and an opportunity for\nhearing, may revoke, suspend, and condition the license of the video\nlottery gaming licensee, order the video lottery gaming licensee to\nterminate the continued appointment, position or employment of officers\nand directors, or order the video lottery gaming licensee to require\nsignificant stockholders to divest themselves of all interests in the\nvideo lottery gaming licensee.\n