2015 New York Laws
TAX - Tax
Article 34 - (Tax) NEW YORK STATE LOTTERY FOR EDUCATION
1617-A - Video lottery gaming.

 1617-a.  Video  lottery  gaming.  a.  The division of the lottery is
  hereby authorized to license, pursuant to rules and  regulations  to  be
  promulgated  by  the  division  of  the  lottery, the operation of video
  lottery gaming at  Aqueduct,  Monticello,  Yonkers,  Finger  Lakes,  and
  Vernon  Downs racetracks, or at any other racetrack licensed pursuant to
  article three of the racing, pari-mutuel wagering and breeding law  that
  are  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.
  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 division is afforded
  adequate space, infrastructure, and amenities consistent  with  industry
  standards  for  such  video  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 racing
  and  wagering board, and such other terms and conditions of licensure as
  the division 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  division  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 division 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  division,  in  consultation  with  the racing and wagering board,
  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  division,
  in  consultation  with  the racing and wagering board, 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.
(4)  at  a  maximum  of two facilities, neither to exceed one thousand
  video lottery gaming devices, 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.  The  facilities   authorized
  pursuant  to  this  paragraph  shall  be deemed vendors for all purposes
  under this article.
b.  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.
c.  The division 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.
d.  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  terminals
  shall  be  subject  to  the provisions of articles eight and nine of the
  labor law to the extent provided in such articles.
e. The division 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 division 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
  division may prescribe, and such plans shall have been approved  by  the
  division.  The division, at the expense of the applicant, may order such
  engineering examination thereof as the division may deem necessary. Such
  construction or alteration may be made only with  the  approval  of  the
  division  and  after examination and inspection of the plans thereof and
  the issuance of a permit therefor by the division.
f. (1) The division 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  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 facility, the division 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
  division 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
  division  shall  establish procedures to assure that free play allowance
  credits do not exceed such amount.
(4) The division, 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  division
  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 division
  the full amount due as the result of such calculations.
(6) The division 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 division 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.
g. Every video lottery gaming  license,  and  every  renewal  license,
  shall  be  valid  for  a  period of five years, except that video 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 gaming generally.
(h) The gaming commission, subject to notice and  an  opportunity  for
  hearing,  may  revoke,  suspend,  and condition the license of the video
  gaming licensee, order  the  video  gaming  licensee  to  terminate  the
  continued appointment, position or employment of officers and directors,
  or  order  the video gaming licensee to require significant stockholders
  to divest themselves of all interests in the video gaming licensee.