2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 10 - Simulcast of Horse Races › 1009 - Simulcast Theaters.

§  1009.  Simulcast  theaters.  1.  The  commission  may authorize and
approve eight licenses, except that any approval  of  a  license  for  a
franchised  corporation  shall  not  decrease  the  number  of  licenses
available, as of July  first,  nineteen  hundred  ninety  to  any  other
eligible  operator  under  subdivision  two  of  this  section,  for the
operation of simulcast theaters as defined in section one  thousand  one
of  this  article.  One  such  license  shall  only  be approved for the
regional  off-track  betting  corporation  defined  by  paragraph  b  of
subdivision one of section five hundred nineteen of this chapter.
2.  Such  a  simulcast  theater,  pursuant  to  a  license  issued  in
accordance with the provisions of this section and section one  thousand
three  of  this article may be owned or leased, and operated, (a) by one
or more  racing  associations  or  corporations;  (b)  by  the  regional
off-track betting corporation of the region where such simulcast theater
facility   is  to  be  located;  (c)  jointly  by  one  or  more  racing
associations  or  corporations  and  the  regional   off-track   betting
corporation of the region where such simulcast theater facility is to be
located; or (d) by a franchised corporation; provided, however, that for
the  purposes  of paragraph (a) of subdivision two-a of this section, an
entity authorized by paragraph (b) or (c) of this  subdivision  to  own,
lease  or  operate  a  simulcast  theater may, pursuant to a competitive
bidding procedure carried out in accordance with rules  and  regulations
issued  by the commission, select another person, firm or corporation to
operate or jointly own or lease such facility and enter into  a  written
agreement with such person, firm or corporation provided that such party
shall be subject to the licensing requirements of the commission.
2-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this
section, the commission may authorize one or more licenses, as  provided
in  paragraphs  (b) and (c) of subdivision two of this section, to enter
into a written agreement with another person,  firm  or  corporation  to
jointly operate or lease such facility for the operation of simulcast at
entertainment theaters as special demonstration projects for purposes of
stimulating economic development, employment opportunities and state and
local  revenues.  Such  demonstration  projects  shall  be  licensed  in
accordance with all applicable  laws,  rules  and  regulations  of  this
article.
(a)  In  Sullivan,  Greene  and  Ulster  counties the commission shall
determine the number of such projects to be located in  privately  owned
hotels in such counties for the exclusive use of the hotel guests.
(b)   The   commission   may   additionally   authorize   one  special
demonstration project within the city of New York.
(c) The commission may authorize a special demonstration project to be
located in any facility licensed pursuant to article  thirteen  of  this
chapter   in  Schenectady  county.  Notwithstanding  the  provisions  of
paragraph a of subdivision five of this section, an admission fee  shall
not   be  required  for  a  demonstration  project  authorized  in  this
paragraph. On any day when a regional harness track conducts a live race
meeting, a demonstration facility within that region shall predominantly
display the live video of such regional harness track.
The   regional   off-track   betting   corporations   operating   such
demonstration  facilities  within  New  York city may elect to apply the
provisions of section five hundred thirty-two of this chapter in lieu of
any admission charges.
3. Any  application  for  such  license  shall  be  subject  to  those
conditions  set  forth  in  section  one  thousand  three and shall also
include:
a. A written agreement between the sending tracks and the applicant;
b. Letters of consent to the application from any regional track  that
is  not  a  party  to  the operation of the proposed theater unless such
track is located more than  forty  miles  from  the  proposed  simulcast
theater;  and  a  copy  of  any agreement between the applicant and such
corporation  pursuant  to  which such consent has been given, subject to
the provision of subdivision two of section one thousand seven  of  this
article.   Notwithstanding the foregoing, the Nassau region may apply to
locate one simulcast theater within Nassau County without  a  letter  of
consent  from  the  operator of the regional track provided the proposed
simulcast theater is not within fifteen miles of the closest  border  of
any racing facility operated by a franchised corporation.
c.  Except for an application from a franchised corporation to operate
within the Suffolk region, Nassau  region,  New  York  City  region,  or
Westchester  county  in the absence of enabling legislation, a letter of
consent  to  the  application  from  the  regional   off-track   betting
corporation of the region where such simulcast theater facility is to be
located  if  such  corporation  is  not  a party to the operation of the
proposed theater.
d. If such theater is to be jointly operated by  one  or  more  racing
associations  or  corporations  or by one or more racing associations or
corporations and the  regional  off-track  betting  corporation  of  the
region  where  such  simulcast theater is to be located or if the costs,
revenues and/or net profits from the operation of such facility  are  to
be  allocated  among  more  than  one  such  party,  a copy of a written
agreement among such corporations or associations as to the  rights  and
responsibilities of each such party and the provisions pursuant to which
costs, revenues and/or net profits are to be allocated.
e.  A  copy of a resolution adopted by the governing body of the city,
town or village in  which  the  proposed  simulcast  theater  is  to  be
located,  approving  the application and requesting that the application
for the proposed simulcasting theater be approved.  In  a  city  of  one
million  or more, approval of the mayor shall also be required. Approval
of the governing body of the county  and  the  county  executive  within
which  such  municipality  is  located  shall  also  be required. If the
proposed facility is to be located wholly within a village, approval  by
the  governing  body  of  the town or towns within which such village is
located shall also be required.
f.  An  application  from  a  franchised  corporation  shall  not   be
considered  by  a  city  of  one  million or more, earlier than eighteen
months after this provision shall have become law.
4. Notwithstanding any inconsistent provisions of  this  chapter,  the
sums  retained  by  any  associations  or  corporations  from  the total
deposits in pools wagered on simulcast  racing  events  at  a  simulcast
theater as provided in subdivision one of this section shall be equal to
the rates of retained percentage applicable to the sending track.
a.  Of  the  sums  retained  by  the  operator  as  provided  in  this
subdivision, the pari-mutuel tax shall be levied at the following  rates
plus  twenty  percent  of the breaks: from wagers on thoroughbred races,
eight-tenths of one percent of pools generated from regular wagers;  one
and  three-tenths  percent  of pools generated from multiple wagers; two
and eight-tenths percent of pools  generated  from  exotic  wagers;  and
three  and one-half percent of pools generated from super exotic wagers;
and from wagers on harness races,  one-half  of  one  percent  of  pools
generated  from  regular  wagers;  one  percent  of pools generated from
multiple wagers; two and one-half percent of pools generated from exotic
wagers and three percent of pools generated from super exotic wagers.
b.  Of  the  sums  retained  by  the  operator  as  provided  in  this
subdivision,  an amount equal to one percent of daily pools derived from

bets on simulcasts of harness races shall be paid to the agriculture and
New York state horse breeding development fund, and an amount  equal  to
one-half  of  one percent of daily pools derived from bets on simulcasts
of  running  races  shall  be  paid  to  the New York state thoroughbred
breeding and development fund.
c. The payment of the state tax imposed by this section shall be  made
to the commissioner of taxation and finance at such regular intervals as
the  commissioner  of  taxation  and  finance  may require, and shall be
accompanied by a report, under oath, that sets forth such information as
the commissioner of taxation and finance may require. A penalty of  five
percent  and interest at the rate of one percent per month from the date
the report is required to be filed to the date of  payment  of  the  tax
shall  be  payable  in  case any tax imposed by this section is not paid
when due. If the commissioner of taxation and  finance  determines  that
any  moneys  received  under  this  paragraph  were  paid  in error, the
commissioner may cause the same to be refunded without interest  out  of
any  moneys  collected  thereunder,  provided an application therefor is
filed with the commissioner within one year from the time the  erroneous
payment  was  made.  Such  taxes, interest and penalties when collected,
after the deduction of refunds of taxes erroneously paid, shall be  paid
by the commissioner of taxation and finance into the general fund of the
state treasury.
d. The operator shall pay to the commission as a regulatory fee, which
fee  is  hereby  levied,  six-tenths  of  one percent of the total daily
pools.
4-a. Notwithstanding any inconsistent provision of  this  chapter,  of
the  sums received by a sending track, a portion shall be distributed to
purses in  accordance  with  a  written  agreement  between  the  racing
association  or  corporation  operating  such  track  and the horsemen's
organization  representing  owners  and  trainers  at  such  track,   as
determined by the commission. In the absence of such an agreement, fifty
percent  of the sums received by a sending track shall be distributed to
purses.
5. a. An admission fee to simulcast theaters shall be charged and  the
amount  of  such  admission  fee shall be subject to the approval of the
commission.
c. Any county (except a county wholly within a city) or city, or both,
in which a simulcast  theater  is  located,  is  hereby  authorized  and
empowered to adopt and amend local laws imposing a tax on such admission
fee  at  a  rate not to exceed fifteen percent of the admission fee. The
provisions  of  article  eight  of  this   chapter   relating   to   the
administration  and  collection of the taxes authorized to be imposed by
such article (including the  provisions  relating  to  judicial  review)
shall  apply  to  a  tax  imposed  pursuant  to  the  authority  of this
paragraph, in the same manner and with the same force and effect  as  if
the  language of such provisions had been incorporated in full into this
paragraph and had expressly referred to a tax authorized to  be  imposed
pursuant to this paragraph, except to the extent that any such provision
is  either  inconsistent  with  a  provision of this paragraph or is not
relevant to this paragraph.
6. The size, location and operation of a simulcast  theater  shall  be
subject to local zoning ordinances and the approval of the commission.
7.  The  sale of food and beverages shall be subject to the applicable
state and local alcoholic beverage control laws and sales taxes.
8. All wagers resulting from the simulcast of racing  events  pursuant
to this section shall be combined with wagers at the sending track so as
to  produce common pari-mutuel betting pools for the calculation of odds
and the determination of payouts from such pool, which payout  shall  be

the  same  for  all  winning tickets, irrespective of whether a wager is
placed at a sending track or a simulcast theater.
9.  Each  license  to  operate  a  simulcast  theater  is  subject  to
suspension as provided in section one thousand four of this article.
10. The operator may contract with the city, town or village in  which
the  simulcast  theater is located to pay to such municipality a sum not
to exceed one percent of pools generated from all wagers at such theater
in lieu of any other local tax.
11. The provisions of section one thousand thirteen  of  this  chapter
shall  apply  to  any  disputes  with  regard  to  the  requirements  of
subdivision three  of  this  section  provided,  however,  that  binding
arbitration  shall  not be a remedy if the proposed simulcast theater is
less than forty miles from a regional track.