2023 New York Laws › PML - Racing, Pari-Mutuel Wagering and Breeding Law › Article 9 - Miscellaneous › 904 - On-Track Wagers on the Kentucky Derby, the Preakness and the Breeders' Cup.

§  904.  On-track  wagers on the Kentucky Derby, the Preakness and the
  Breeders' Cup. 1. Notwithstanding any  inconsistent  provision  of  this
  chapter,  whenever  a  regional  off-track  betting  corporation accepts
  wagers on  and  displays  the  simulcast  of  the  Kentucky  Derby,  the
  Preakness  or  races  known  as  the "Breeders' Cup", any corporation or
  association conducting pari-mutuel betting pursuant to this chapter  may
  elect  to  accept  wagers  on  and display the simulcast of the Kentucky
  Derby, the Preakness and the races known as the Breeders' Cup. Upon such
  election:
a. The applicable state tax provided for in  paragraphs  a  and  b  of
  subdivision  one  of  section  five hundred twenty-seven of this chapter
  shall be one-half percent for regular, multiple  and  exotic  bets.  Any
  harness  racing  or  association  or corporation, or thoroughbred racing
  corporation authorized  pursuant  to  this  section  shall  pay  to  the
  commission  as  a regulatory fee, which fee is hereby levied, six-tenths
  of one percent of the total daily pari-mutuel pools.
b. The system  of  on  and  off-track  betting  shall  result  in  the
  combination  of  all  off-track  wagers  with  on-track  wagers so as to
  produce common pari-mutuel betting pools. Provided,  however,  that  the
  commission  may  authorize  separate  pari-mutuel wagering pools for any
  corporation or association  electing  to  accept  such  wagers,  if  the
  commission determines that a common on and off-track pari-mutuel betting
  pool,  due  to  limitations in existing computer systems and information
  transmission and receiving capacities cannot practically be accomplished
  so as to maximize a reasonable number of  separate  wagering  interests.
  The resulting separate pools for regional off-track betting corporations
  shall  be  subject  to the limitations set forth in subdivision eight of
  section five hundred twenty-three of this chapter.
c.  Every  association  and  corporation  shall  distribute  all  sums
  deposited  in  any  pari-mutuel  pool  to the holders of winning tickets
  therein, providing such tickets be presented for  payment  before  April
  first  of  the year following the year of their purchase, less an amount
  that it shall retain at the same rate established by the  sending  track
  plus the breaks.
d.  For  a  franchised  corporation,  the  applicable  state  tax  and
  distributions to purses and the New York state thoroughbred breeding and
  development fund shall be the same amounts as provided  in  section  two
  hundred  thirty-eight  of  this  chapter  provided,  however,  that upon
  election of any corporation to accept such wagers, no additional amounts
  may be withheld as provided in section two hundred thirty-seven of  this
  chapter.
e.  For  any  corporation  licensed  pursuant  to  article two of this
  chapter, the applicable state tax shall be one percent  of  all  wagers,
  the  amount  payable  to  the thoroughbred breeding and development fund
  shall be one-half of one percent and distribution  to  purses  shall  be
  fifty  percent  of  the amount retained by the track after all statutory
  and contracted payments are made. No additional amounts may be  withheld
  as provided in section two hundred thirty-seven of this chapter.
f.  For  any  association  or corporation licensed pursuant to article
  three of this chapter, the applicable state tax shall be one percent  of
  all  wagers,  the  amount  payable  to  the  thoroughbred  breeding  and
  development fund shall be one-half of one percent and  distributions  to
  purses  shall  be  one and three-quarters percent. No additional amounts
  may be withheld as provided in section three hundred  nineteen  of  this
  chapter.  For  the  purposes  of purse distributions, any association or
  corporation located in the Western Off-Track Betting Region shall  remit
  said  distributions to the thoroughbred track located within said region

  and all other  corporations  or  associations  shall  remit  said  purse
  distributions to a franchised corporation.
Notwithstanding  any  other  provision of law, any such association or
  corporation conducting pari-mutuel wagering on races run by a franchised
  corporation on the days when they are accepting wagers on  the  Kentucky
  Derby,  the Preakness or the Breeders' Cup shall pay a state pari-mutuel
  tax of one percent of all such wagers in lieu  of  the  tax  imposed  by
  paragraph  a  of subdivision three of section one thousand seven of this
  chapter.
2. The  commission  shall  approve  an  application  from  any  racing
  corporation  or  association pursuant to subdivision one of this section
  to accept on-track wagers and display  the  simulcast  of  the  Kentucky
  Derby  or  the Preakness provided, however, that no application shall be
  approved by the board that it determines may cause a  reduction  of  the
  total number of racing events normally conducted at the track on a daily
  basis.
2-a.  The  commission  shall  approve  an  application from any racing
  corporation or association pursuant to subdivision one of  this  section
  to  accept on-track wagers on the Breeders' Cup races, and, in instances
  where the application contemplates the on-track display of simulcasts of
  and wagering on the entire card of Breeders' Cup races,  the  commission
  shall authorize, for that day, a reduction of the total number of racing
  events  normally  conducted  at the track on a daily basis provided that
  the total number of live racing events conducted at the track shall  not
  be less than two.
3. Every racing association or corporation authorized to accept wagers
  on  the  Kentucky  Derby, the Preakness or the Breeders' Cup pursuant to
  subdivision one of this section shall  be  subject  to  all  appropriate
  provisions  of this chapter pursuant to the conduct of a race meeting by
  such association or corporation.
4. Notwithstanding any other provision  of  law,  whenever  a  harness
  racing  association  or  corporation is receiving the simulcast of races
  run  at  a  thoroughbred  racing  corporation,   such   harness   racing
  association  may  also  receive the telecast of and accept wagers on any
  out of state  races  which  are  telecast  to  the  thoroughbred  racing
  corporation. Pools resulting from wagers in the out of state races shall
  be  combined  with  the  appropriate pools resulting from wagers on such
  races at the thoroughbred racing corporation.