NY Law Update

[Track Collector]

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.

...

[Jeff P]

Here's a link to the NY State Assembly site for the bill:
http://assembly.state.ny.us/leg/?def...&Memo=Y&Text=Y

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.

Translation?

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.



-jp

.

[ScullyDog]

Does it say what the license fee would be? I tried to find it but gave up.

[Jeff P]

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.)


-jp

.

[Tom]

Intelligence on parade - only in NY, home of the morons.

[Jeff P]

DRF article... New York to add 5-cent fee to bets made with out-of-state companies:
http://www.drf.com/news/new-york-add...tate-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...

Specifically:

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?


-jp

.

[Tom]

Let's hope so.
That is pure stealing.
The Hallmark of NY politics.