US Laws, Codes, Statutes & Cases

 
    § 907. 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 state racing and
  wagering board 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  board  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 board for
  the combination of on-track and off-track wagers made in New York state.
    b.  In  this  regard  the  board  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 regarding foreign wagers, that for
  computational  purposes  all  foreign  wagers  to  be  combined  will be
  converted  into  American  dollars  at  the  prevailing  exchange  rates
  established  by  a  money  center bank on the date of the race (although
  breakage   will   be   computed   consistent   with   foreign   currency
  denominations);  that  other  than the variations caused by retention or
  breakage computations that all odds and pay-outs will  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 board; that all entities
  whose wagers are so  combined  have  agreed  that  the  odds  and  final
  pay-offs  will  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 will
  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 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 board.
    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  board  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 board. 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 will be reduced as may be appropriate and such
  operator will 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  will  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 board 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 board 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 will 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  will  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
  board  will  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 board.
    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.