View Full Version : NY Law Update

Track Collector
08-22-2013, 04:39 PM
Does anyone have the latest on the nasty amendment NY OTBs and Horsemen attached to a recent bill which will result in a 5% surcharge on all bets made by NY residents with an out-of-state ADW? Last I heard it was to take effect Jan. 1st, 2014. Maybe Jeff Platt can weigh in on this one.

Seems to me this would have a huge negative impact to many NY players, and that there would be a tremendous push-back.

Looks like NY has joined CA where the belief is that protectionism works better than free market, and sc**w the players. :ThmbDown::ThmbDown::ThmbDown:


Jeff P
08-22-2013, 06:47 PM
Here's a link to the NY State Assembly site for the bill:

The bill was signed on 7/30/2013.

"Highlights" of the bill.... <roll eyes...>

Requires each ADW to pay a significant license fee in order to do business in the state of NY.

Imposes a 5% market origin fee on the handle of NY residents wagered through licensed ADWs.


If you live in NY:

Expect your rebates to be cut.

If you wager on NY races:

Expect pool size at NY tracks (even NYRA) to be negatively impacted. (Source market fee works just like a takeout increase.)

Also, expect the free marketplace (number of ADW choices) you currently enjoy to change for the worse. In my opinion, this bill puts ADWs in a position of having to choose between paying a significant license fee or dropping their NY customers.

My guess is that many will opt to drop their NY customers rather than pay the State of NY a significant license fee.



08-23-2013, 06:09 PM
Does it say what the license fee would be? I tried to find it but gave up.

Jeff P
08-24-2013, 04:37 PM
I've been told the license fee for an ADW to do business in NY will be a flat $20k per year plus 5% of handle.

(Someone please correct me if this is not the case.)



08-24-2013, 05:07 PM
Intelligence on parade - only in NY, home of the morons.

Jeff P
08-24-2013, 06:08 PM
DRF article... New York to add 5-cent fee to bets made with out-of-state companies:

SARATOGA SPRINGS, N.Y. A law set to go into effect Jan. 1 in New York will require out-of-state account-wagering operators to pay a 5-cent fee for every dollar wagered through their operations by a New York resident, with the brunt of those fees going to their New York competitors.
I'm curious about the bolded text in the above quote...


Will the bigger out of state ADWs who are negatively impacted by this law go to court and issue a challenge from an antitrust standpoint?



08-24-2013, 06:47 PM
Let's hope so.
That is pure stealing.
The Hallmark of NY politics.