NY Tax L § 1617-A (2021)
2021 New York Laws TAX - Tax Article 34 - New York State Lottery for Education 1617-A - Video Lottery Gaming.

§ 1617-a.  Video  lottery  gaming.  a. The gaming commission is hereby authorized  to  license,  pursuant  to  rules  and  regulations  to   be promulgated  by  the  gaming  commission, the operation of video lottery gaming at;  (1) Aqueduct, Monticello, Yonkers,  Finger  Lakes,  and  Vernon  Downs racetracks;  (2)  any  other  racetrack  licensed  pursuant to article three of the racing, pari-mutuel wagering and breeding law located  in  a  county  or counties  in  which video lottery gaming has been authorized pursuant to local law, excluding the licensed  racetrack  commonly  referred  to  in article  three  of  the racing, pari-mutuel wagering and breeding law as the "New  York  state  exposition"  held  in  Onondaga  county  and  the racetracks  of  the  non-profit racing association known as Belmont Park racetrack and the Saratoga thoroughbred racetrack;  (3) a maximum of two  facilities,  which  shall  be  vendors  for  all purposes  under  this  article,  neither  to  exceed  one thousand video lottery gaming devices, established within region three of zone  one  as defined  by  section  one  thousand  three  hundred  ten  of the racing, pari-mutuel  wagering  and  breeding  law,  one  each  operated   by   a corporation  established  pursuant  to  section  five hundred two of the racing, pari-mutuel wagering and breeding law in the Suffolk region  and the Nassau region to be located within a facility authorized pursuant to sections  one  thousand  eight  or  one  thousand  nine  of  the racing, pari-mutuel wagering and breeding law; and  (4) Aqueduct racetrack, within the lottery terminal facility, pursuant to an agreement between the corporation established pursuant to  section five hundred two of the racing, pari-mutuel wagering and breeding law in the  Nassau  region and the operator of video lottery gaming at Aqueduct racetrack, when such agreement is approved by the gaming commission  and as  long  as  such  agreement  is  in  place, and when such agreement is accompanied by a detailed spending plan for the corporation  established pursuant to section five hundred two of the racing, pari-mutuel wagering and  breeding  law  in  the Nassau region, which includes a plan for the timely payment of liabilities due to  the  franchised  corporation,  and when  such  video  lottery  devices  are hosted by the operator of video lottery gaming at  Aqueduct  racetrack  on  behalf  of  the  corporation established  pursuant  to  section  five  hundred  two  of  the  racing, pari-mutuel wagering and breeding law in the Nassau region  in  lieu  of the  development  of  a  facility  in  Nassau  county  as  authorized by paragraph three of subdivision a of this section. Such agreement reached by the parties shall identify the  agency  principally  responsible  for funding,  approving  or  undertaking  any  actions  of  such  agreement. Provided, however, nothing in this paragraph  shall  infringe  upon  the rights  of  the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in  the  Nassau region  to  develop  a  facility  pursuant  to  paragraph  three of this subdivision upon the expiration,  termination,  or  withdrawal  of  such agreement.  (5)  At  a  facility  located  in  Orange county to be operated by the entity otherwise licensed to operate video lottery gaming at  Monticello racetrack,  provided  that:  (i)  such  licensed  entity  is  no  longer operating video lottery gaming at Monticello racetrack and provided that Monticello racetrack is conducting racing operations; (ii) such facility in Orange county is not sited within a thirty mile radius of  the  video lottery  gaming  facility  at  Yonkers racetrack; and (iii) the licensed entity, its subsidiaries and affiliates, including the  entity  licensed to  operate  a  commercial  gaming  facility in Sullivan county, and the entity licensed to operate video lottery  gaming  at  Yonkers  racetrack  enter  into  a  mitigation  agreement,  to  be  approved  by  the gaming commission, which shall include, but  not  be  limited  to,  terms  that require:  (A)  the  operator of the facility in Orange county to make an annual payment to the entity licensed to operate video lottery gaming or commercial  gaming  at Yonkers racetrack to account for the effects that siting such facility in Orange county would likely  have  on  the  gross gaming  revenue  of the entity licensed to operate at Yonkers racetrack; (B) employment levels at the affected  facilities;  and  (C)  that  upon expiration  or  termination  of  the agreement, the authority to operate video lottery gaming in Orange county shall cease.  Notwithstanding  any other  provision  of  this  subdivision,  at  no  time  shall  an entity operating video lottery gaming in Orange county be  permitted  to  apply for or receive a license to operate a commercial gaming facility in that county.  (6)  Notwithstanding  any other provision of law to the contrary, as a condition of the license to operate  a  video  lottery  gaming  facility located  in  Orange  county,  such  operator  shall  provide  an  annual certification to the New York state gaming commission that the  staffing levels  at  a commercial gaming facility located in zone two, region one pursuant to section thirteen hundred  ten  of  the  racing,  pari-mutuel wagering  and  breeding law (or any successor commercial gaming facility located in said region) are no  less  than  one  thousand  four  hundred seventy-three  full-time,  permanent  employees.  In  furtherance of and without limiting the foregoing, the licensee for the  commercial  gaming facility  located  in  zone two, region one pursuant to section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law (or any successor commercial gaming facility located in such region)  shall  not conduct  any  mass,  involuntary layoff events that would trigger worker adjustment and retraining notification (WARN) act notifications pursuant to article twenty-five-A of the labor law or  otherwise  result  in  the employment  levels  at  such  facility dropping below levels mandated by this section.  For  purposes  of  this  section,  "full-time,  permanent employee"  shall  mean  an employee who has worked at the facility for a minimum of thirty-five hours per week for not less than four consecutive weeks and who is entitled to receive  the  usual  and  customary  fringe benefits extended to other employees with comparable rank and duties; or two  part-time  employees who have worked at the facility for a combined minimum of thirty-five hours per week for not less than four consecutive weeks and who are entitled to receive the  usual  and  customary  fringe benefits extended to other employees with comparable rank and duties.  (7)  The village of Monticello, Sullivan county, the town of Thompson, Sullivan  county,  and  Sullivan  county  shall  continue   to   receive assistance  payments  made pursuant to section fifty-four-l of the state finance law.   b. Such rules  and  regulations  shall  provide,  as  a  condition  of licensure,  that  racetracks  to  be  licensed  are  certified  to be in compliance with all state and local fire  and  safety  codes,  that  the gaming  commission  is  afforded  adequate  space,  infrastructure,  and amenities consistent with industry  standards  for  such  video  lottery gaming operations as found at racetracks in other states, that racetrack employees  involved in the operation of video lottery gaming pursuant to this section are licensed by the gaming commission and such other  terms and  conditions  of  licensure  as  the gaming commission may establish. Notwithstanding any inconsistent provision of law, video lottery  gaming at  a  racetrack  pursuant  to  this section shall be deemed an approved activity for such racetrack under the relevant city,  county,  town,  or village  land use or zoning ordinances, rules, or regulations. No entity licensed  by  the  gaming  commission  operating  video  lottery  gaming  pursuant  to  this section may house such gaming activity in a structure deemed or approved by the division as  "temporary"  for  a  duration  of longer  than eighteen-months. Nothing in this section shall prohibit the gaming  commission  from  licensing  an  entity to operate video lottery gaming at an  existing  racetrack  as  authorized  in  this  subdivision whether  or  not  a different entity is licensed to conduct horse racing and pari-mutuel wagering at such racetrack pursuant to  article  two  or three of the racing, pari-mutuel wagering and breeding law.   The  gaming  commission  shall establish standards for approval of the temporary and permanent physical layout and construction of any facility or building devoted to a video lottery gaming  operation.  In  reviewing such  application  for  the construction or reconstruction of facilities related or devoted to the operation or housing of video  lottery  gaming operations, the gaming commission shall ensure that such facility:  (1)   possesses   superior  consumer  amenities  and  conveniences  to encourage and attract the patronage of tourists and other visitors  from across the region, state, and nation.  (2)  has  adequate  motor vehicle parking facilities to satisfy patron requirements.  (3) has a physical layout and location that facilitates access to  and from  the  horse  racing  track  portion  of  such facility to encourage patronage of live horse racing events that are conducted at such track.   c. The terminals authorized pursuant to paragraph four of  subdivision a of this section shall:  (i)  be  deemed as operated by the corporation established pursuant to section five  hundred  two  of  the  racing,  pari-mutuel  wagering  and breeding  law  in  the Nassau region for the purposes of section sixteen hundred twelve of this chapter and the distributions therefrom  made  as if the video lottery devices were located in Nassau county;  (ii)  consist  exclusively of electronic table games, unless otherwise approved by the gaming commission and the director of  the  division  of the budget; and  (iii) be individually designated as hosted.   d. Notwithstanding any law, rule or regulation to the contrary, absent the   enactment  of  sufficient  alternative  revenue  sources  for  the franchised corporation in a chapter of law providing  a  statutory  plan for  the  prospective not-for-profit governing structure of The New York Racing Association, Inc., any agreement for the operation  of  terminals authorized  pursuant  to paragraph four of subdivision a of this section shall require the operator of video lottery gaming at Aqueduct racetrack to maintain racing support for general  thoroughbred  racing  operations and   capital   expenditures  from  video  lottery  gaming  at  Aqueduct racetrack, at the same level realized in two thousand  thirteen,  to  be adjusted  by  the  consumer  price  index  for  all  urban consumers, as published annually by the United States department of labor,  bureau  of labor statistics.   e.  Video  lottery  gaming  shall  only  be permitted for no more than twenty consecutive hours per day and on no day shall such  operation  be conducted past 6:00 a.m.   f.  The  gaming commission shall promulgate such rules and regulations as may be necessary for the implementation of video  lottery  gaming  in accordance  with  the  provisions  of this section and paragraph five of subdivision a of section sixteen hundred twelve of this article.   g.  All  workers  engaged   in   the   construction,   reconstruction, development,  rehabilitation, or maintenance of any area for the purpose of the installation, maintenance, or removal  of  video  lottery  gaming terminals  shall be subject to the provisions of articles eight and nine of the labor law to the extent provided in such articles.    h. The  gaming  commission  shall  not  approve  the  construction  or alteration  of  any  facility  or  building  devoted to the operation or housing of video lottery gaming until the person or entity  selected  to operate  such  video  lottery  gaming shall have submitted to the gaming commission  a  statement  of  the  location  of the proposed facility or building, together with a plan of  such  racetrack,  and  plans  of  all existing  buildings,  seating stands and other structures on the grounds of such racetrack, in such form as the gaming commission may  prescribe, and  such  plans  shall have been approved by the gaming commission. The gaming commission, at the expense  of  the  applicant,  may  order  such engineering  examination  thereof  as  the  gaming  commission  may deem necessary. Such construction or alteration may be  made  only  with  the approval  of  the gaming commission and after examination and inspection of the plans thereof  and  the  issuance  of  a  permit  by  the  gaming commission.   i.  (1)  The  gaming  commission  may administer a free play allowance program to offer players or prospective players of video  lottery  games free  play  credits for the purpose of increasing revenues earned by the video lottery gaming program for  the  support  of  education.  For  the purposes  of  this  subdivision,  "free  play  allowance credit" means a specified dollar amount that (i) may be used by a player to play a video lottery game without paying any other consideration,  and  (ii)  is  not used in the calculation of total revenue wagered after payout of prizes.  (2)  For  each  video  lottery  gaming facility, the gaming commission shall authorize the use of free play allowance credits if  the  operator of  such  facility  submits  a written plan for the use of the free play allowance that the gaming commission determines is designed to  increase the  amount  of  revenue earned by video lottery gaming at such facility for the support of education.  (3) For each video lottery facility, the annual value of the free play allowance credits authorized for use by the operator  pursuant  to  this subdivision  shall  not exceed an amount equal to fifteen percent of the total amount wagered on video lottery games after payout of prizes.  The gaming  commission  shall  establish procedures to assure that free play allowance credits do not exceed such amount.  (4) The gaming commission, in conjunction with  the  director  of  the budget,  may  suspend  the use of free play allowance credits authorized pursuant to this subdivision whenever they jointly  determine  that  the use  of  free play allowance credits are not effective in increasing the amount of revenue earned for the support of education, and such use  may not  be  resumed  unless  the operator of such facility submits a new or revised written plan for the use of the free  play  allowance  that  the gaming  commission determines is designed more effectively to produce an increase in the amount of revenue earned by video lottery gaming at such facility for the support of education.  (5) Nothing in this  subdivision  shall  be  deemed  to  prohibit  the operator  of a video lottery facility from offering free play credits to players or prospective players of video lottery games when the value  of such  free  play  credits  is  included  in the calculation of the total amount wagered on video lottery games and the total amount wagered after payout of prizes, and the operator of  such  facility  pays  the  gaming commission the full amount due as the result of such calculations.  (6)  The gaming commission may amend the contract with the provider of the central computer system that  controls  the  video  lottery  network during the term of such contract in effect on the effective date of this subdivision  to  provide additional consideration to such provider in an amount determined by the gaming commission to be necessary to compensate  for (i) processing free play  allowance  transactions  and  (ii)  system updates and modifications otherwise needed as of such effective date.   j.  Every  video  lottery  gaming  license, and every renewal license, shall be valid for a period of five years,  except  that  video  lottery gaming  licenses  issued  before  the effective date of this subdivision shall be for a term expiring on the applicant's next birthday  following June thirtieth, two thousand fourteen.   The  gaming  commission  may decline to renew any license after notice and an opportunity for hearing if it determines that:  (1) the licensee has violated section one thousand six  hundred  seven of this article;  (2)  the  licensee  has  violated any rule, regulation or order of the gaming commission;  (3)  the  applicant  or  its  officers,   directors   or   significant stockholders,   as  determined  by  the  gaming  commission,  have  been convicted of a crime involving moral turpitude; or  (4) that the character or fitness of the licensee  and  its  officers, directors,  and  significant  stockholders,  as determined by the gaming commission is such that the participation  of  the  applicant  in  video lottery  gaming  or  related  activities  would be inconsistent with the public interest, convenience or necessity or with the best interests  of video lottery gaming generally.   k.  The  gaming  commission,  subject to notice and an opportunity for hearing, may revoke, suspend, and condition the  license  of  the  video lottery  gaming  licensee,  order  the  video lottery gaming licensee to terminate the continued appointment, position or employment of  officers and  directors,  or  order  the video lottery gaming licensee to require significant stockholders to divest themselves of all  interests  in  the video lottery gaming licensee.