NY Rac, Pari-Mut Wag & Breeding L § 905 (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 9 - Miscellaneous 905 - Combination of New York Wagers With Wagers Made in Other States or Foreign Countries.

§ 905. Combination of New York wagers with wagers made in other states or  foreign countries. 1. The combination of New York wagers with wagers of the same type made in other states or  foreign  countries  is  hereby authorized  pursuant to rules and regulations of the commission so as to produce a common pari-mutuel pool for the calculation of  odds  and  the determination  of pay-outs from such pool, which payout shall be, as far as may be consistent herewith, the same for all  winning  bets  of  such type  irrespective  of  whether  a  wager  is placed in this state or in another state or foreign country.   2. The combination of wagers on New York races. a. The commission  may authorize  the  combination  of  out-of-state or foreign wagers on horse races in New York state with the same type of wagers made  in  New  York state  at  the  site  of  the  statewide  interface  designated  by  the commission for the combination of on-track and off-track wagers made  in New York state.   b.  In  this  regard  the commission shall enact rules and regulations including but not limited to insuring the following standards: that  the out-of-state  or foreign wagering operator is duly authorized to conduct such wagering by the laws of  the  applicable  out-of-state  or  foreign government and is of satisfactory ethical and financial repute; that all such  wagers  are  made  in a format consistent with the format for such wagers in New York state  as  to  number  of  betting  entries  and  the combination of such entries into coupled entries and fields; that if the laws  of  such  other  state or foreign country permit, that such wagers shall be subject to  the  identical  retention  and  breakage  rates  as pertain  at the site of the New York interface; that if the laws of such other state or foreign country prescribe a retention  or  breakage  rate different  from  that  in New York state it would not be contrary to the public interest to compute odds and payouts  for  such  out-of-state  or foreign  wagers  consistent with such law; that if it is consistent with the public interest to compute odds and payouts for such out-of-state or foreign wagers according to retention or breakage rates  different  from those  in  New  York  state,  that the site of the New York interface is ready and able to  carry  out  such  computations  consistent  with  the formulas  hereinafter prescribed; that in regard to foreign wagers, that for computational purposes all foreign wagers to be  combined  shall  be converted  into  American  dollars  at  the  prevailing  exchange  rates established by a money center bank on the date  of  the  race  (although breakage   shall   be   computed   consistent   with   foreign  currency denominations); that other than the variations caused  by  retention  or breakage  computations  that all odds and pay-outs shall be computed and calculated,  refunds  or   cancellations   awarded   or   allowed,   and overpayments  or  underpayments  corrected solely in accordance with the applicable rules in New York state whose laws shall govern all  disputes pertinent  thereto; that the means, methods and times of transmission of wagering data necessary to the proper implementation of this subdivision shall be as prescribed and approved by the commission; that all entities whose wagers are so  combined  have  agreed  that  the  odds  and  final pay-offs  shall  be  computed  in accordance with the data available for computation at the site of the statewide interface at the start  of  the race  and  that  pay-off  computations  in accordance therewith shall be final regardless of mistakes in transmission or failures to transmit  or receive  all wagers and that the out-of-state or foreign operators shall be solely responsible for claims asserted in that regard for wagers made through such  operators;  that  the  out-of-state  or  foreign  operator consents  to  be  subject  to  audit by the commissioner of taxation and finance or his or her designee to verify the accuracy  and  completeness of all wagers required to be transmitted by it hereunder; and such other  rules  and regulations as may be deemed necessary and appropriate by the commission.   c.  If  different retention or breakage rates than those prevailing at the site of the New York interface are prescribed by the laws  governing such  out-of-state  or  foreign  betting operator, and the commission is satisfied that it would not be contrary to the public interest to accept such wagers for combination with New York wagers,  calculations  of  the current odds and final pay-off prices shall be made as follows:  (i) All New York state and out-of-state and foreign wagers of the same type shall be combined into single pools for calculation.  (ii)  As many tentative payout prices as there are different retention and breakage rates applicable (including the prevailing New  York  rate) shall  be  calculated  on the basis of returning the appropriate rate of return, less breaks after imposition of each such rate of retention  and breaks.  (iii) To each such out-of-state or foreign operator shall be allocated an amount sufficient for it to pay the appropriate pay-off to holders of winning  wagers  placed  with  it together with the applicable retention amount on its total wagers.  (iv) To each New York operator shall be allocated an amount sufficient for it to pay the appropriate  pay-off  to  holders  of  winning  wagers placed with it together with the applicable New York retention amount on its total wagers.  (v)  The  total amount of the combined pool less the combined total of all allocations as determined in subparagraphs (iii) and  (iv)  of  this paragraph shall be credited to a special breakage account. The amount in such account giving appropriate weight to rates established for breakage shall be allocated as breaks among all operators in the combined pool in accordance  with  the  rules and regulations of the commission. Should a minus pool eventuate in which the total combined pool is insufficient to reimburse each operator for the allocation due to it then the allocation due to each such operator shall be reduced as  may  be  appropriate  and such operator shall be responsible for satisfying its liability from its own operating capital.   d.  No  tax  or  surcharge  shall  be  imposed  by  this  state on any out-of-state or foreign wagering operator participating in any  combined pool  herein.  Nothing  in  this  paragraph,  however,  shall impair the imposition of any tax or charge  by  this  state  on  the  consideration received from an out-of-state or foreign operator by a New York operator for  its  consent  to  wagering on its races, transmitting the simulcast thereof, or the agreeing to combination of bets into its pools.   e. The operator of the  site  of  the  statewide  interface  shall  be responsible  for  the  actual  collection  or  transmittal  of  funds in settlement of the liabilities of  all  operators  participating  in  the combined pool.   f.  Nothing  herein  shall  entitle  any  operator  or person claiming therefrom to participation in any share  of  the  retention  or  payouts allocated to another operator participating in the combined pool.   g.  Nothing  herein shall affect the validity of any surcharge imposed upon the winning pay-offs computed herein as may be  prescribed  by  the laws of this state or another state or foreign country.   h. Nothing herein shall be construed to authorize or prescribe any act contrary to federal law.   3.  Combining New York wagers on horse races conducted in other states or foreign countries with wagers on such races made elsewhere.   a. The commission may authorize the combination of wagers made in  New York  state upon the outcome of out-of-state or foreign horse races with wagers made upon such races  elsewhere  in  accordance  with  rules  and  regulations  of the commission which shall include but not be limited to the following provisions:  (i)  that  if  such  combination is authorized that all New York state operators must participate therein to assure uniform New York  odds  and pay-outs;  (ii)  that  if  the out-of-state or foreign computation is made on the basis of different retention or breakage rates and (A) such out-of-state or foreign laws do  not  permit  New  York  wagers  to  be  computed  in accordance  with  New  York  retention  and  breakage  rates,  that such variation does not exceed twenty percent and shall be allocated pro rata among winning wagers in New York state and recipients of such  retention and  breakage  rates  in  New York state, or (B) if such out-of-state or foreign laws do permit New York bets to be computed in  accordance  with New  York  retention and breakage rates that such rates shall be applied and that the out-of-state or foreign operator doing such calculations is willing and able to properly perform such function;  (iii) that the out-of-state or foreign rules governing such wagers are understandable to New York wagerers and in  the  best  judgment  of  the commission  shall  not deviate substantially from customary and standard pari-mutuel practice in general;  (iv) that the New York operators are able to perform such transmission and computer retrieval functions as may be required;  (v) that such combination will enhance the  best  interest  of  racing generally; and  (vi)  such  other rules and regulations as may be deemed necessary and appropriate by the commission.   b. Nothing herein shall be construed to authorize or prescribe any act contrary to federal law.   4. In those instances in which the retention rates of the out-of-state track are different from the retention rates authorized in this section, distribution to each of the entities entitled to receive  payment  under section  five  hundred twenty-seven or article ten of this chapter after payment  of  state  taxes  and  regulatory  fees   shall   be   adjusted proportionately  in an appropriate manner to account for higher or lower retention rates. For purposes of  determining  payment  on  out-of-state wagers  the retention rate shall be the amount sufficient to pay holders of winning  wagers  plus  any  payments  required  to  be  made  to  the out-of-state track which exceeds two per centum of handle.