Section 1009. Simulcast theaters

1. The board may authorize and approve
  eight licenses, except that any approval of a license for  a  franchised
  corporation  shall  not decrease the number of licenses available, as of
  July first, nineteen hundred ninety to any other eligible operator under
  subdivision two of this section, for the operation of simulcast theaters
  as defined in section one thousand one of this article. One such license
  shall only be approved for the regional  off-track  betting  corporation
  defined  by  paragraph  b  of  subdivision  one  of section five hundred
  nineteen of this chapter.
    2.  Such  a  simulcast  theater,  pursuant  to  a  license  issued  in
  accordance  with the provisions of this section and section one thousand
  three of this article may be owned or leased, and operated, (a)  by  one
  or  more  racing  associations  or  corporations;  (b)  by  the regional
  off-track betting corporation of the region where such simulcast theater
  facility  is  to  be  located;  (c)  jointly  by  one  or  more   racing
  associations   or   corporations  and  the  regional  off-track  betting
  corporation of the region where such simulcast theater facility is to be
  located; or (d) by a franchised corporation; provided, however, that for
  the purposes of paragraph (a) of subdivision two-a of this  section,  an
  entity  authorized  by  paragraph (b) or (c) of this subdivision to own,
  lease or operate a simulcast theater  may,  pursuant  to  a  competitive
  bidding  procedure  carried out in accordance with rules and regulations
  issued by the board, select  another  person,  firm  or  corporation  to
  operate  or  jointly own or lease such facility and enter into a written
  agreement with such person, firm or corporation provided that such party
  shall be subject to the licensing requirements of the board.
    2-a.  Notwithstanding  the  provisions  of  subdivision  one  of  this
  section,  the  board  may authorize one or more licenses, as provided in
  paragraphs (b) and (c) of subdivision two of this section, to enter into
  a written agreement with another person, firm or corporation to  jointly
  operate  or  lease  such  facility  for  the  operation  of simulcast at
  entertainment theaters as special demonstration projects for purposes of
  stimulating economic development, employment opportunities and state and
  local  revenues.  Such  demonstration  projects  shall  be  licensed  in
  accordance  with  all  applicable  laws,  rules  and regulations of this
  article.
    (a) In Sullivan, Greene and Ulster counties the board shall  determine
  the  number  of such projects to be located in privately owned hotels in
  such counties for the exclusive use of the hotel guests.
    (b) The board may additionally  authorize  one  special  demonstration
  project within the city of New York.
    The   regional   off-track   betting   corporations   operating   such
  demonstration facilities within New York city may  elect  to  apply  the
  provisions of section five hundred thirty-two of this chapter in lieu of
  any admission charges.
    3.  Any  application  for  such  license  shall  be  subject  to those
  conditions set forth in  section  one  thousand  three  and  shall  also
  include:
    a. A written agreement between the sending tracks and the applicant;
    b. Letters of consent to the application from any regional track which
  is  not  a  party  to  the operation of the proposed theater unless such
  track is located more than  forty  miles  from  the  proposed  simulcast
  theater;  and  a  copy  of  any agreement between the applicant and such
  corporation pursuant to which such consent has been  given,  subject  to
  the  provision  of subdivision two of section one thousand seven of this
  article. Notwithstanding the foregoing, the Nassau region may  apply  to
  locate  one  simulcast  theater within Nassau County without a letter of
  consent from the operator of the regional track  provided  the  proposed

  simulcast  theater  is not within fifteen miles of the closest border of
  any racing facility operated by a franchised corporation.
    c.  Except for an application from a franchised corporation to operate
  within the Suffolk region, Nassau  region,  New  York  City  region,  or
  Westchester  county  in the absence of enabling legislation, a letter of
  consent  to  the  application  from  the  regional   off-track   betting
  corporation of the region where such simulcast theater facility is to be
  located  if  such  corporation  is  not  a party to the operation of the
  proposed theater.
    d. If such theater is to be jointly operated by  one  or  more  racing
  associations  or  corporations  or by one or more racing associations or
  corporations and the  regional  off-track  betting  corporation  of  the
  region  where  such  simulcast theater is to be located or if the costs,
  revenues and/or net profits from the operation of such facility  are  to
  be  allocated  among  more  than  one  such  party,  a copy of a written
  agreement among such corporations or associations as to the  rights  and
  responsibilities of each such party and the provisions pursuant to which
  costs, revenues and/or net profits are to be allocated.
    e.  A  copy of a resolution adopted by the governing body of the city,
  town or village in  which  the  proposed  simulcast  theater  is  to  be
  located,  approving  the application and requesting that the application
  for the proposed simulcasting theater be approved.  In  a  city  of  one
  million  or more, approval of the mayor shall also be required. Approval
  of the governing body of the county  and  the  county  executive  within
  which  such  municipality  is  located  shall  also  be required. If the
  proposed facility is to be located wholly within a village, approval  by
  the  governing  body  of  the town or towns within which such village is
  located shall also be required.
    f.  An  application  from  a  franchised  corporation  shall  not   be
  considered  by  a  city  of  one  million or more, earlier than eighteen
  months after this provision shall have become law.
    4. Notwithstanding any inconsistent provisions of  this  chapter,  the
  sums  retained  by  any  associations  or  corporations  from  the total
  deposits in pools wagered on simulcast  racing  events  at  a  simulcast
  theater as provided in subdivision one of this section shall be equal to
  the rates of retained percentage applicable to the sending track.
    a.  Of  the  sums  retained  by  the  operator  as  provided  in  this
  subdivision, the pari-mutuel tax shall be levied at the following  rates
  plus twenty per centum of the breaks: from wagers on thoroughbred races,
  eight-tenths  of  one per centum of pools generated from regular wagers;
  one and three-tenths per centum of pools generated from multiple wagers;
  two and eight-tenths per centum of pools generated  from  exotic  wagers
  and  three  and one-half per centum of pools generated from super exotic
  wagers; and from wagers on harness races, one-half of one per centum  of
  pools  generated  from regular wagers; one per centum of pools generated
  from multiple wagers; two and one-half per  centum  of  pools  generated
  from  exotic  wagers  and three per centum of pools generated from super
  exotic wagers;
    b.  Of  the  sums  retained  by  the  operator  as  provided  in  this
  subdivision,  an  amount  equal to one per centum of daily pools derived
  from  bets  on  simulcasts  of  harness  races  shall  be  paid  to  the
  agriculture  and  New York state horse breeding development fund, and an
  amount equal to one-half of one per centum of daily pools  derived  from
  bets  on simulcasts of running races shall be paid to the New York state
  thoroughbred breeding and development fund.
    c. The payment of the state tax imposed by this section shall be  made
  to the commissioner of taxation and finance at such regular intervals as
  the  commissioner  of  taxation  and  finance  may require, and shall be

  accompanied by a report, under oath, which sets forth  such  information
  as  the  commissioner  of taxation and finance may require. A penalty of
  five per centum and interest at the rate of one  per  centum  per  month
  from  the date the report is required to be filed to the date of payment
  of the tax shall be payable in case any tax imposed by this  section  is
  not  paid  when  due.  If  the  commissioner  of  taxation  and  finance
  determines that any moneys received under this paragraph  were  paid  in
  error,  the  commissioner  may  cause  the  same  to be refunded without
  interest out of any moneys collected thereunder, provided an application
  therefor is filed with the commissioner within one year  from  the  time
  the  erroneous payment was made. Such taxes, interest and penalties when
  collected, after the deduction of refunds  of  taxes  erroneously  paid,
  shall  be  paid  by  the  commissioner  of taxation and finance into the
  general fund of the state treasury.
    d. The operator shall pay to  the  racing  and  wagering  board  as  a
  regulatory  fee,  which  fee  is  hereby levied, fifty hundredths of one
  percent of the total daily pools.
    4-a. Notwithstanding any inconsistent provision of  this  chapter,  of
  the  sums received by a sending track, a portion shall be distributed to
  purses in  accordance  with  a  written  agreement  between  the  racing
  association  or  corporation  operating  such  track  and the horsemen's
  organization  representing  owners  and  trainers  at  such  track,   as
  determined  by the board. In the absence of such an agreement, fifty per
  centum of the sums received by a sending track shall be  distributed  to
  purses.
    5.  a. An admission fee to simulcast theaters shall be charged and the
  amount of such admission fee shall be subject to  the  approval  of  the
  racing and wagering board.
    b.  Such  admission  fee  shall  be  subject  to a state admission tax
  imposed at the rate of four per centum of the  admission  fee.  The  tax
  shall  be  administered  by the commissioner of taxation and finance and
  the provisions of section three hundred six of this chapter relating  to
  the  administration  and  collection  of the tax imposed by such section
  shall apply to the tax imposed by this paragraph, in the same manner and
  with the same force and effect as if the language of such provisions had
  been incorporated in full into this paragraph and had expressly referred
  to the tax imposed by this paragraph, except to the extent that any such
  provision is either inconsistent with a provision of this  paragraph  or
  is not relevant to this paragraph.
    c. Any county (except a county wholly within a city) or city, or both,
  in  which  a  simulcast  theater  is  located,  is hereby authorized and
  empowered to adopt and amend local laws imposing a tax on such admission
  fee at a rate not to exceed fifteen per centum of the admission fee. The
  provisions  of  article  eight  of  this   chapter   relating   to   the
  administration  and  collection of the taxes authorized to be imposed by
  such article (including the  provisions  relating  to  judicial  review)
  shall  apply  to  a  tax  imposed  pursuant  to  the  authority  of this
  paragraph, in the same manner and with the same force and effect  as  if
  the  language of such provisions had been incorporated in full into this
  paragraph and had expressly referred to a tax authorized to  be  imposed
  pursuant to this paragraph, except to the extent that any such provision
  is  either  inconsistent  with  a  provision of this paragraph or is not
  relevant to this paragraph.
    6. The size, location and operation of a simulcast  theater  shall  be
  subject  to  local  zoning ordinances and the approval of the racing and
  wagering board.
    7. The sale of food and beverages shall be subject to  the  applicable
  state and local alcoholic beverage control laws and sales taxes.

    8.  All  wagers resulting from the simulcast of racing events pursuant
  to this section shall be combined with wagers at the sending track so as
  to produce common pari-mutuel betting pools for the calculation of  odds
  and  the  determination of payouts from such pool, which payout shall be
  the  same  for  all  winning tickets, irrespective of whether a wager is
  placed at a sending track or a simulcast theater.
    9.  Each  license  to  operate  a  simulcast  theater  is  subject  to
  suspension as provided in section one thousand four of this article.
    10.  The operator may contract with the city, town or village in which
  the simulcast theater is located to pay to such municipality a  sum  not
  to exceed one percent of pools generated from all wagers at such theater
  in lieu of any other local tax.
    11.  The  provisions  of section one thousand thirteen of this chapter
  shall  apply  to  any  disputes  with  regard  to  the  requirements  of
  subdivision  three  of  this  section  provided,  however,  that binding
  arbitration shall not be a remedy if the proposed simulcast  theater  is
  less than forty miles from a regional track.