2023 New York Laws › TAX - Tax › Article 34 - New York State Lottery for Education › 1612 - Disposition of Revenues.

§  1612.  Disposition  of  revenues. a. The division shall pay into an
account, to be known as the  lottery  prize  account,  under  the  joint
custody  of  the comptroller and the commissioner, within one week after
collection of sales receipts from a lottery game, such moneys  necessary
for  the  payment  of  lottery  prizes  but  not to exceed the following
percentages, plus interest earned thereon:
(1) sixty percent of the total amount for which tickets have been sold
for a lawful lottery game introduced on or after the effective  date  of
this paragraph, subject to the following provisions:
(A) such game shall be available only on premises occupied by licensed
lottery sales agents, subject to the following provisions:
(i)  if  the  licensee  does not hold a license issued pursuant to the
alcoholic  beverage  control  law  to  sell  alcoholic   beverages   for
consumption  on  the  premises,  then  the  premises must have a minimum
square footage greater than two thousand five hundred square feet;
(ii) notwithstanding the foregoing  provisions,  television  equipment
that  automatically  displays  the  results  of  such  drawings  may  be
installed and used without regard to the square footage if such premises
are used as:
(I) a commercial bowling establishment, or
(II) a facility authorized under the racing, pari-mutuel wagering  and
breeding law to accept pari-mutuel wagers;
(B) the rules for the operation of such game shall be as prescribed by
regulations  promulgated  and adopted by the division, provided however,
that such rules shall provide that no person under the age of twenty-one
may participate in such games on the premises of a licensee who holds  a
license  issued  pursuant  to the alcoholic beverage control law to sell
alcoholic beverages for consumption  on  the  premises;  and,  provided,
further,  that such regulations may be revised on an emergency basis not
later than ninety days after the enactment of this paragraph in order to
conform such regulations to the requirements of this paragraph; or
(2) sixty-four and one-fourth percent of the total  amount  for  which
tickets  have  been  sold  for  the  "Instant  Cash"  game  in which the
participant purchases a preprinted ticket on  which  dollar  amounts  or
symbols  are  concealed on the face or the back of such ticket, provided
however up to five new games may be  offered  during  the  fiscal  year,
seventy-four  and  one-fourth  percent  of  the  total  amount for which
tickets have been sold for such five  games  in  which  the  participant
purchases  a  preprinted  ticket  on which dollar amounts or symbols are
concealed on the face or the back of such ticket; or
(3) fifty-five percent of the total amount for which tickets have been
sold for any joint, multi-jurisdiction, and out-of-state lottery  except
as  otherwise provided in paragraph one of subdivision b of this section
for any joint, multi-jurisdiction, out-of-state video lottery gaming; or
(4) fifty percent of the total amount for which tickets have been sold
for games known as: (A) the "Daily Numbers Game" or  "Win  4",  discrete
games  in  which  the  participants select no more than three or four of
their own numbers to match with three  or  four  numbers  drawn  by  the
commission  for purposes of determining winners of such games, (B) "Pick
10", offered no more than twice daily, in which participants select from
a specified field of numbers a subset of ten numbers to match against  a
subset  of  numbers  to  be  drawn  by the commission from such field of
numbers for the purpose of determining winners of such game,  (C)  "Take
5",  offered no more than twice daily, in which participants select from
a specified field of numbers a subset of five numbers to match against a
subset of five numbers to be drawn by the commission from such field  of
numbers for purposes of determining winners of such game; or
(5) forty percent of the total amount for which tickets have been sold
for:  (A)  "Lotto", offered no more than twice daily, a discrete game in
which all participants select a specific subset of numbers  to  match  a
specific  subset  of  numbers,  as  prescribed  by rules and regulations
promulgated  and adopted by the commission, from a larger specific field
of numbers, as also prescribed by such rules  and  regulations  and  (B)
with  the  exception  of  the  game  described  in paragraph one of this
subdivision, such other state-operated lottery games that the commission
may introduce, offered no more than twice daily, commencing on or  after
forty-five  days  following  the  official  publication of the rules and
regulations for such game.
(6) the commission shall make a report on the  revenues  derived  from
the  additional lottery drawings pursuant to paragraphs four and five of
this subdivision and shall submit  such  report  to  the  governor,  the
speaker  of  the  assembly, and the temporary president of the senate by
the first day of March two thousand twenty-two.
The moneys in the lottery prize account shall  be  paid  out  of  such
account  on  the  audit  and  warrant  of  the  comptroller  on vouchers
certified or approved by the director or  his  or  her  duly  designated
official.
Prize  money  derived  from ticket sales receipts of a particular game
and deposited in the  lottery  prize  account  in  accordance  with  the
percentages  set  forth  above  may  be used to pay prizes in such game.
Balances in the lottery prize account identified by individual games may
be carried over from one fiscal year to the next to ensure proper payout
of games.
b. 1. Notwithstanding section one  hundred  twenty-one  of  the  state
finance  law,  on  or  before  the  twentieth  day  of  each  month, the
commission shall pay into the state treasury, to the credit of the state
lottery fund created by section ninety-two-c of the state  finance  law,
not  less  than forty-five percent of the total amount for which tickets
have been sold for games defined in paragraph five of subdivision  a  of
this  section  during  the  preceding  month,  not  less than forty-five
percent of the total amount for which tickets have  be  sold  for  games
defined  in  paragraph  four of subdivision a of this section during the
preceding month, not less than thirty-five percent of the  total  amount
for which tickets have been sold for games defined in paragraph three of
subdivision  a of this section during the preceding month, not less than
twenty and three-fourths percent of the total amount for  which  tickets
have  been  sold  for games defined in paragraph two of subdivision a of
this section during the preceding month, provided however that for games
with a prize payout of seventy-four and one-fourth percent of the  total
amount  for  which  tickets have been sold, the commission shall pay not
less than ten and three-fourths percent of sales into the state treasury
and not less than twenty-five percent of  the  total  amount  for  which
tickets have been sold for games defined in paragraph one of subdivision
a  of  this  section  during the preceding month; and the balance of the
total revenue after payout for prizes for games known as "video  lottery
gaming," including any joint, multi-jurisdiction, and out-of-state video
lottery  gaming, (i) less ten percent of the total revenue wagered after
payout for  prizes  to  be  retained  by  the  division  for  operation,
administration, and procurement purposes;
(ii) less a vendor's fee the amount of which is to be paid for serving
as  a  lottery  agent  to  the  track  operator of a vendor track or the
operator of any other video lottery gaming facility authorized  pursuant
to  section  sixteen  hundred seventeen-a of this article. The amount of
the vendor's fee shall be calculated as follows:
(A) when a vendor track is located  within  development  zone  one  as
defined  by  section  thirteen  hundred  ten  of the racing, pari-mutuel
wagering and breeding law, at a rate of thirty-nine and one-half percent
of the total revenue wagered at the vendor track after payout for prizes
pursuant to this chapter;
(B)  when  a  vendor  track  is  located within zone two as defined by
section thirteen hundred ten of the  racing,  pari-mutuel  wagering  and
breeding  law, the rate of the total revenue wagered at the vendor track
after payout for prizes pursuant to this chapter shall be as follows:
(1) forty-three and one-half percent for a vendor track  located  more
than  fifteen  miles but less than fifty miles from a destination resort
gaming facility authorized pursuant to article thirteen of  the  racing,
pari-mutuel wagering and breeding law;
(2) forty-nine percent for a vendor track located within fifteen miles
of  a  destination resort gaming facility authorized pursuant to article
thirteen of the racing, pari-mutuel wagering and breeding law;
(3) fifty-one percent for vendor track located more than fifteen miles
but less than fifty miles  from  a  Native  American  class  III  gaming
facility as defined in 25 U.S.C. §2703(8);
(4)  fifty-six percent for a vendor track located within fifteen miles
of a Native American class III gaming facility as defined  in  25  U.S.C
§2703(8);
(5)  forty-nine percent for a video lottery gaming facility authorized
pursuant to paragraph five of subdivision a of section  sixteen  hundred
seventeen-a of this article;
(B-1)  Notwithstanding  subparagraph  (B)  of  this paragraph, for the
period commencing on April first, two thousand nineteen  and  ending  on
March  thirty-first,  two  thousand  twenty,  for a vendor track that is
located within Ontario County, such vendor fee shall be thirty-seven and
one-half percent of the total revenue wagered at the vendor track  after
payout for prizes pursuant to this chapter;
(B-2)  Notwithstanding  subparagraph  (B)  of  this paragraph, for the
period commencing on April first, two thousand nineteen  and  ending  on
March  thirty-first  two  thousand  twenty,  for  a vendor track that is
located within Saratoga County, such vendor fee shall be thirty-nine and
one-half percent of the total revenue wagered at the vendor track  after
payout for prizes pursuant to this chapter;
(C) when a video lottery facility is located at Aqueduct racetrack, at
a  rate  of  fifty  percent  of  the  total revenue wagered at the video
lottery gaming  facility  after  payout  for  prizes  pursuant  to  this
chapter;
(D)  when  a video lottery gaming facility is located in either Nassau
or Suffolk  counties  and  is  operated  by  a  corporation  established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and  breeding  law, at a rate of forty-five percent of the total revenue
wagered at the video lottery gaming facility  after  payout  for  prizes
pursuant to this chapter.
(iii)  less  any  additional  vendor's  fees. Additional vendor's fees
shall be calculated as follows:
(A) when a vendor track is located within region one  and  is  located
within Orange county or region two of development zone two, as such zone
is  defined  in  section thirteen hundred ten of the racing, pari-mutuel
wagering and breeding law, or is  located  within  region  six  of  such
development   zone  two  and  is  located  within  Ontario  county,  the
additional vendor fee received by the vendor track shall  be  calculated
pursuant  to  subclause  one  of  this  clause;  provided, however, such
additional vendor fee shall not exceed ten percent.
(1) The additional vendor fee is a percentage  of  the  total  revenue
wagered  at  the  vendor  track after payout for prizes pursuant to this
chapter. That percentage is calculated by subtracting the effective  tax
rate  on  all  taxable  gross  gaming  revenue paid by a gaming facility
within  the  same region as the vendor track from the percentage that is
ninety percent less than the percentage of  the  vendor  track's  vendor
fee.  For  purposes  of  this clause, Seneca and Wayne counties shall be
deemed to be located within region six of development zone two.
(2) The additional vendor fee  paid  pursuant  to  this  clause  shall
commence  with  the  state  fiscal  year  beginning  on April first, two
thousand nineteen and shall be paid to a  vendor  track  no  later  than
ninety  days  after  the close of the fiscal year. The additional vendor
fee authorized by this clause shall only be applied to  revenue  wagered
at  a  vendor  track  while a gaming facility in the same region as that
vendor track is open and operating pursuant to an operation  certificate
issued  pursuant  to  section thirteen hundred thirty-one of the racing,
pari-mutuel wagering and breeding law.
* (B) for a vendor track that is located within Oneida county,  within
fifteen  miles  of  a  Native  American  class III gaming facility, such
additional vendor fee shall be six and four-tenths percent of the  total
revenue  wagered  at the vendor after payout for prizes pursuant to this
chapter. The vendor track shall forfeit this additional vendor  fee  for
any time period that the vendor track does not maintain at least seventy
percent  of  full-time equivalent employees as they employed in the year
two thousand sixteen.
* NB Repealed March 31, 2027
1-a. (i) Notwithstanding any provision of law  to  the  contrary,  any
operators  of a vendor track or the operators of any other video lottery
gaming facility eligible to receive  a  capital  award  as  of  December
thirty-first,  two thousand eighteen shall deposit from their vendor fee
into a segregated account an amount equal to four percent of  the  first
sixty-two  million  five  hundred thousand dollars of revenue wagered at
the vendor track after payout for prizes pursuant to this chapter to  be
used  exclusively  for  capital  investments, except for Aqueduct, which
shall deposit an amount equal to four percent of all revenue wagered  at
the  video  lottery  gaming facility after payout for prizes pursuant to
this chapter into a segregated account for capital investments.
(ii) Vendor tracks  and  video  lottery  gaming  facilities  shall  be
permitted  to  withdraw funds for projects approved by the commission to
improve the facilities of the  vendor  track  or  video  lottery  gaming
facility  which  enhance  or  maintain the video lottery gaming facility
including,  but  not  limited  to  hotels,  other  lodging   facilities,
entertainment  facilities,  retail facilities, dining facilities, events
arenas, parking garages and other improvements and  amenities  customary
to  a  gaming  facility,  provided, however, the vendor tracks and video
lottery gaming facilities shall  be  permitted  to  withdraw  funds  for
unreimbursed capital awards approved prior to the effective date of this
subparagraph.
(iii) Any proceeds from the divestiture of any assets acquired through
these  capital  funds  or any prior capital award must be deposited into
this segregated account, provided that if  the  vendor  track  or  video
lottery  gaming facility ceases use of such asset for gaming purposes or
transfers the asset to a related  party,  such  vendor  track  or  video
lottery gaming facility shall deposit an amount equal to the fair market
value of that asset into the account.
(iv)  In  the  event  a  vendor track or video lottery gaming facility
ceases gaming operations, any balance  in  the  account  along  with  an
amount  equal to the value of all remaining assets acquired through this

fund or prior capital awards shall be returned to the state for  deposit
into  the  state  lottery  fund  for education aid, except for Aqueduct,
which shall return to the state for deposit into the state lottery  fund
for  education  aid all amounts in excess of the amount needed to fund a
project pursuant to an agreement  with  the  operator  to  construct  an
expansion  of  the  facility, hotel, and convention and exhibition space
requiring a minimum capital investment of three hundred million  dollars
and any subsequent amendments to such agreement.
(v)  The  comptroller  or  his  legally  authorized  representative is
authorized  to  audit  any  and  all  expenditures  made  out  of  these
segregated capital accounts.
(vi)  Notwithstanding subparagraphs (i) through (v) of this paragraph,
a vendor track located in Ontario county may withdraw up to two  million
dollars  from this account for the purpose of constructing a turf course
at the vendor track and may  withdraw  up  to  six  million  dollars  in
calendar  year two thousand nineteen for the purpose of covering ongoing
operating expenses.
(vii)  Notwithstanding  subparagraphs  (i)  through   (vi)   of   this
paragraph, a vendor track located within Saratoga county may withdraw up
to  three million dollars in calendar year two thousand nineteen for the
purpose of covering ongoing operating expenses.
(viii) Any balance remaining in the capital award account of a  vendor
track or operator or any other video lottery gaming facility as of March
thirty-first,  two  thousand  nineteen  shall be transferred for deposit
into a segregated account established by this subparagraph.
1-b. Notwithstanding any provision of law to the contrary,  free  play
allowance  credits  authorized by the division pursuant to subdivision i
of section sixteen hundred seventeen-a of  this  article  shall  not  be
included in the calculation of the total amount wagered on video lottery
games,  the total amount wagered after payout of prizes, the vendor fees
payable to the  operators  of  video  lottery  gaming  facilities,  fees
payable to the division's video lottery gaming equipment contractors, or
racing support payments.
1-c.  Notwithstanding  any  provision  of  law  to  the  contrary, the
operator of a vendor track or the operator of any  other  video  lottery
gaming  facility shall fund a marketing and promotion program out of the
vendor's fee. Each operator shall submit an annual  marketing  plan  for
the  review  and  approval  of  the  commission  and  any other required
documents  detailing  promotional  activities  as  prescribed   by   the
commission.   The   commission  shall  have  the  right  to  reject  any
advertisement or promotion that does not properly represent the  mission
or interests of the lottery or its programs.
2.  As  consideration  for  the  operation  of  a video lottery gaming
facility, the  division,  shall  cause  the  investment  in  the  racing
industry  of  a portion of the vendor fee received pursuant to paragraph
one of this subdivision in the manner set  forth  in  this  subdivision.
With  the  exception  of  Aqueduct  racetrack,  a  video  lottery gaming
facility authorized pursuant to  paragraph  five  of  subdivision  a  of
section sixteen hundred seventeen-a of this article or a facility in the
county  of  Nassau  or  Suffolk  operated  by  a corporation established
pursuant to section five hundred two of the racing, pari-mutuel wagering
and breeding law, each such track shall dedicate a portion of its vendor
fees, received pursuant to clause (A), (B), (B-1), (B-2), (C), or (D) of
subparagraph (ii) of paragraph one of this subdivision, for the  purpose
of  enhancing  purses  at  such  track,  in an amount equal to eight and
three-quarters percent of the total revenue wagered at the vendor  track
after  pay  out  for  prizes. One percent of the gross purse enhancement
amount, as required by this subdivision, shall be  paid  to  the  gaming

commission  to  be  used exclusively to promote and ensure equine health
and safety in New York. Any  portion  of  such  funding  to  the  gaming
commission  unused  during  a fiscal year shall be returned to the video
lottery  gaming  operators  on  a  pro rata basis in accordance with the
amounts originally contributed by each operator and shall  be  used  for
the  purpose of enhancing purses at such track. One and one-half percent
of the gross purse  enhancement  amount  at  a  thoroughbred  track,  as
required  by  this  subdivision, shall be paid to an account established
pursuant to section two hundred twenty-one-a of the racing,  pari-mutuel
wagering  and  breeding  law  to  be  used exclusively to provide health
insurance for jockeys. In  addition,  with  the  exception  of  Aqueduct
racetrack,  a  video  lottery  gaming  facility  authorized  pursuant to
paragraph five of subdivision a of section sixteen  hundred  seventeen-a
of  this  article  or  a  facility  in  the  county of Nassau or Suffolk
operated by a corporation established pursuant to section  five  hundred
two  of  the  racing,  pari-mutuel  wagering  and  breeding law, one and
one-quarter percent of total revenue wagered at the vendor  track  after
pay  out for prizes, received pursuant to clause (A), (B), (B-1), (B-2),
(C), or (D) of subparagraph (ii) of paragraph one of  this  subdivision,
shall  be distributed to the appropriate breeding fund for the manner of
racing conducted by such track.
Provided, further, that nothing in this paragraph shall  prevent  each
track  from  entering  into an agreement, not to exceed five years, with
the organization authorized to represent its  horsemen  to  increase  or
decrease  the portion of its vendor fee dedicated to enhancing purses at
such track during the years of participation by such track, or  to  race
fewer dates than required herein.
3.  Nothing  in  paragraph  two  of  this subdivision shall affect any
agreement in effect on or before the effective date of  this  paragraph,
except  that  the  obligation  to  pay funds to the gaming commission to
promote and ensure equine health and safety and the  obligation  to  pay
funds  to  an  account  established  pursuant  to  section  two  hundred
twenty-one-a of the racing, pari-mutuel wagering and breeding law to  be
used exclusively to provide health insurance for jockeys shall supersede
any provision to the contrary in any such agreement.
c.  1.  The  specifications  for  video  lottery gaming, including any
joint, multi-jurisdiction, and out-of-state video lottery gaming,  shall
be  designed in such a manner as to pay prizes that average no less than
ninety percent of sales.
2. Of the ten percent retained  by  the  division  for  administrative
purposes,  any amounts beyond that which are necessary for the operation
and administration of this pilot  program  shall  be  deposited  in  the
lottery education account.
d.  Notwithstanding  any  law, rule or regulation to the contrary, any
successor to the New York Racing Association, Inc. with respect  to  the
operation  and maintenance of video lottery gaming at Aqueduct racetrack
shall be deemed the successor to the New York Racing  Association,  Inc.
for purposes of being subject to existing contracts and loan agreements,
if  any,  entered into by the New York Racing Association, Inc. directly
related to the construction, operation, management and  distribution  of
revenues of the video lottery gaming facility at Aqueduct racetrack.
e.  The  video  lottery  gaming  operator  selected to operate a video
lottery terminal facility at Aqueduct will be subject to a memorandum of
understanding between the governor, temporary president  of  the  senate
and  the  speaker  of  the assembly. Notwithstanding subparagraph (i) of
paragraph a of subdivision eight of section two hundred  twelve  of  the
racing, pari-mutuel wagering and breeding law, the state, pursuant to an
agreement  with  the  video  lottery  gaming operator to operate a video

lottery terminal facility at Aqueduct, may authorize, as  part  of  such
agreement  or  in  conjunction  with  such  agreement  at the time it is
executed, additional development at the Aqueduct  racing  facility.  The
selection  will be made in consultation with the franchised corporation,
but is not  subject  to  such  corporation's  approval.  The  franchised
corporation  shall not be eligible to compete to operate or to operate a
video lottery terminal facility at Aqueduct. The state will use its best
efforts to ensure that the video lottery terminal facility  at  Aqueduct
is opened as soon as is practicable and will, if practicable, pursue the
construction  of a temporary video lottery terminal facility at Aqueduct
subject to staying within  an  agreed  budget  for  such  video  lottery
terminal  facility  and subject to such temporary facility not having an
adverse impact on opening of the  permanent  facility  at  Aqueduct.  To
facilitate  the opening of the video lottery gaming facility at Aqueduct
as soon as is practicable, the division of the lottery  may  extend  the
term of any existing contract related to the video lottery system.
f.  As  consideration  for  the  operation of the video lottery gaming
facility at Aqueduct racetrack, the division shall cause the  investment
in the racing industry of the following percentages of the vendor fee to
be deposited or paid, as follows:
1.  Six  and  one-half  percent  of  the total wagered after payout of
prizes for the first year  of  operation  of  video  lottery  gaming  at
Aqueduct  racetrack,  seven percent of the total wagered after payout of
prizes for the second year of operation, and seven and one-half  percent
of  the  total  wagered  after  payout  of  prizes for the third year of
operation and  thereafter,  for  the  purpose  of  enhancing  purses  at
Aqueduct racetrack, Belmont Park racetrack and Saratoga race course. One
percent  of  the  gross  purse  enhancement  amount, as required by this
subdivision,  shall  be  paid  to  the  gaming  commission  to  be  used
exclusively  to promote and ensure equine health and safety in New York.
Any portion of such funding to the gaming  commission  unused  during  a
fiscal year shall be returned on a pro rata basis in accordance with the
amounts  originally  contributed  and  shall  be used for the purpose of
enhancing purses at such tracks. One and one-half percent of  the  gross
purse enhancement amount, as required by this subdivision, shall be paid
to  an  account established pursuant to section two hundred twenty-one-a
of the  racing,  pari-mutuel  wagering  and  breeding  law  to  be  used
exclusively to provide health insurance for jockeys.
2.  One  percent  of  the total wagered after payout of prizes for the
first year of operation of video lottery gaming at  Aqueduct  racetrack,
one  and one-quarter percent of the total wagered after payout of prizes
for the second year of operation, and one and one-half  percent  of  the
total wagered after payout of prizes for the third year of operation and
thereafter,  for  an  appropriate breeding fund for the manner of racing
conducted at Aqueduct racetrack, Belmont  Park  racetrack  and  Saratoga
race course.
3.  (i)  Four  percent  of  the  total revenue wagered after payout of
prizes to be deposited into an account  of  the  franchised  corporation
established   pursuant  to  section  two  hundred  six  of  the  racing,
pari-mutuel  wagering  and  breeding  law  to  be   used   for   capital
expenditures  in  maintaining  and upgrading Aqueduct racetrack, Belmont
Park racetrack  and  Saratoga  race  course.  Capital  expenditures  may
include   funding   the   construction  of  and  initially  equipping  a
state-based equine drug testing  and  research  laboratory  to  be  used
pursuant to subdivision seven of section nine hundred two of the racing,
pari-mutuel wagering and breeding law.
(ii)  Notwithstanding subparagraph (i) of this paragraph, in the event
the  state  provides  funds  to  the  franchised  corporation  for   the

renovation  of  Belmont Park racetrack, out of the amount payable to the
franchised corporation for capital expenditures pursuant to subparagraph
(i) of this paragraph during any state fiscal year, an  amount  pursuant
to  the  repayment  agreement  between  the  state  and  the  franchised
corporation shall instead be deposited into  the  miscellaneous  capital
projects  fund,  New York racing capital improvement fund as required to
repay the state for funds provided for the renovation  of  Belmont  Park
racetrack. Any amount payable to the franchised corporation in any state
fiscal  year  for  capital  expenditures pursuant to subparagraph (i) of
this paragraph in  excess  of  the  amount  pursuant  to  the  repayment
agreement  between  the  state  and  the franchised corporation shall be
deposited pursuant to subparagraph (i) of this paragraph. Once the state
has been fully reimbursed for the costs related  to  the  renovation  of
Belmont  Park  racetrack,  this  subparagraph  shall no longer apply and
subparagraph (i) of this paragraph shall apply.
4. Three percent of the total revenue wagered after payout for  prizes
to   be   deposited  into  an  account  of  the  franchised  corporation
established  pursuant  to  section  two  hundred  six  of  the   racing,
pari-mutuel   wagering   and   breeding  law  to  be  used  for  general
thoroughbred racing  operations  at  Aqueduct  racetrack,  Belmont  Park
racetrack and Saratoga race course.
5.  Paragraphs  one,  two, three and four of this subdivision shall be
known collectively as the "racing support payments".
f-1. As consideration for operation of video lottery  gaming  facility
located in the county of Nassau or Suffolk and operated by a corporation
established  pursuant  to  section  five  hundred  two  of  the  racing,
pari-mutuel wagering and breeding law,  the  division  shall  cause  the
investment  in  the  racing industry of the following percentages of the
vendor fee to be deposited or paid as follows:
1. Two and three tenths percent of the total wagered after  payout  of
prizes  for  the  purpose  of  enhancing  purses  at Aqueduct racetrack,
Belmont Park racetrack and Saratoga race course, provided, however, that
any amount that is in excess of the amount necessary to  maintain  purse
support  from  video  lottery gaming at Aqueduct racetrack, Belmont Park
racetrack and Saratoga race course 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, shall instead be returned to the
commission.
2. five tenths percent of the total wagered after payout of prizes for
the appropriate breeding fund for  the  manner  of  racing  at  Aqueduct
racetrack,  Belmont  Park  racetrack and Saratoga race course, provided,
however, that any amount that is in excess of the  amount  necessary  to
maintain payments 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, shall
instead be returned to the commission.
3. (i) one and three tenths percent of the total revenue wagered after
payout  of  prizes  to  be  deposited  into an account of the franchised
corporation established pursuant to  section  two  hundred  six  of  the
racing,  pari-mutuel  wagering  and  breeding law to be used for capital
expenditures in maintaining and upgrading  Aqueduct  racetrack,  Belmont
Park  racetrack  and  Saratoga  race course, provided, however, that any
amount that is in excess of the amount necessary  to  maintain  payments
for 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,
shall instead be returned to the commission.
(ii)  Notwithstanding subparagraph (i) of this paragraph, in the event
the  state  provides  funds  to  the  franchised  corporation  for   the
renovation  of  Belmont  Park  racetrack,  and  in  the event the amount
deposited  pursuant  to  subparagraph  (ii)  of   paragraph   three   of
subdivision  f  of  this  section  is  insufficient to make the required
repayment pursuant to such subparagraph during any state fiscal year, an
amount payable to the franchised corporation  for  capital  expenditures
pursuant  to  subparagraph  (i)  of  this  paragraph  shall  instead  be
deposited into the miscellaneous capital projects fund, New York  racing
capital improvement fund to the extent necessary, when combined with the
amount  set forth in subparagraph (ii) of paragraph three of subdivision
f of this section, to make any required repayment of funds  provided  by
the  state  related  to  the renovation of Belmont Park racetrack during
such fiscal year. Any amount payable to the  franchised  corporation  in
any  state fiscal year for capital expenditures pursuant to subparagraph
(i) of this paragraph in excess of the amount pursuant to the  repayment
agreement  between  the  state  and  the franchised corporation shall be
deposited pursuant to subparagraph (i) of this paragraph. Once the state
has been fully reimbursed for such costs related to  the  renovation  of
Belmont  Park  racetrack,  this  subparagraph  shall no longer apply and
subparagraph (i) of this paragraph shall apply.
4. Nine tenths percent of the total revenue wagered after  payout  for
prizes  to  be  deposited  into an account of the franchised corporation
established  pursuant  to  section  two  hundred  six  of  the   racing,
pari-mutuel   wagering   and   breeding  law  to  be  used  for  general
thoroughbred racing  operations  at  Aqueduct  racetrack,  Belmont  Park
racetrack  and  Saratoga race course, provided, however, that any amount
that is in excess of the  amount  necessary  to  maintain  payments  for
general  thoroughbred  racing  operations  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, shall instead be returned to the commission.
g. In the event the state elects to construct a video lottery terminal
facility  at the Aqueduct racetrack, all video lottery terminal revenues
payable to the video lottery gaming operator at the  Aqueduct  racetrack
remaining  after  payment  of the racing support payments shall first be
used to repay the state's advances for (i) confirmation of  the  chapter
eleven  plan  of  reorganization  and  cash  advances for the franchised
corporation's operations following confirmation of  the  chapter  eleven
plan  of  reorganization  and  (ii)  the amount expended by the state to
construct such video lottery terminal  facility  at  Aqueduct  racetrack
pursuant  to  an agreement with the state. Subparagraphs (i) and (ii) of
this paragraph shall be defined as the  state  advance  amount  and  the
amounts payable to the division of the lottery.
h.  As  consideration  for  the  operation  of  a video lottery gaming
facility  located  in  Orange  county,  the  division  shall  cause  the
investment  in  the  racing  industry  at  the following amount from the
vendor fee to be paid as follows:
As amount to the horsemen  for  purses  at  a  licensed  racetrack  in
Sullivan  county  in an amount equal to eight and three-quarters percent
of the total revenue wagered at the video lottery gaming facility, after
pay out for prizes. The facility located in Orange county, as defined in
paragraph five of subdivision a of section sixteen  hundred  seventeen-a
of  this  article  shall  pay to the horsemen at a licensed racetrack at
Yonkers racetrack an amount to maintain purses for such horsemen at  the

same  dollar levels realized in two thousand eighteen, 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. In
addition,  one  and  one-quarter percent of total revenue wagered at the
video lottery  gaming  facility  after  pay  out  for  prizes,  received
pursuant  to  clause  (B)  of  subparagraph  (ii)  of  paragraph  one of
subdivision b of this section, shall be distributed to  the  appropriate
breeding  fund  for  the manner of racing conducted by such track. In no
circumstance shall net proceeds of the lottery, including  the  proceeds
from  video  lottery  gaming,  be  used  for  the payment of non-lottery
expenses of the gaming commission, administrative or otherwise.