Section 906. Handicapping tournaments

1.  Notwithstanding  any  other
  provision of law, a thoroughbred racing corporation,  a  harness  racing
  corporation  or association, a regional off-track betting corporation or
  a combination thereof, may operate a handicapping  tournament  at  which
  the  participants  may  be  charged  an  entry  fee if the tournament is
  conducted in accordance with the provisions of this section.
    2. (a) The operator of a handicapping tournament shall distribute  all
  of  the  entry  fees as prizes to the winners of the tournament. Nothing
  herein shall preclude an operator from providing  additional  prizes  or
  promotions.
    (b)  The  board shall approve the rules and the payment of prizes of a
  handicapping tournament. No operator of a  handicapping  tournament  may
  accept  an  entry  fee for a tournament until the board has approved the
  rules and the payment of prizes of a handicapping tournament.
    (c) The horse races which are the subject of the  tournament  must  be
  races  on  which the operator of the tournament is authorized to conduct
  wagering. At least fifty percent of the races which are the  subject  of
  the tournament must be races run in New York state.
    3.   A   handicapping  tournament  operated  in  accordance  with  the
  provisions of this section shall be considered a contest  of  skill  and
  shall not be considered gambling.