2023 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 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, provided however, that in the
Nassau region such facility shall not exceed one thousand video  lottery
gaming  devices and in the Suffolk region such facility shall not exceed
two thousand video lottery gaming devices; 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.