2023 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.