Section 907. Proposition Wagers

1.  a.  Every  racing  association or
  corporation licensed or franchised in accordance with article two, three
  or four of this chapter shall have the authority  to  offer  proposition
  wagering  on  its  own  races.  For  the  purposes  of  this  section, a
  proposition wager shall mean pari-mutuel wagers, approved by the  racing
  and  wagering  board, that are based on the results of a live horse race
  or a series of horse races. Proposition wagers may  include  pari-mutuel
  wagers  on  the  leading  trainers, drivers, or jockeys during an entire
  race meeting and pari-mutuel wagers on the  leading  trainers,  drivers,
  and jockeys competing on a single program in one or more stakes races or
  in  races that award purses of one hundred thousand dollars or more. The
  board shall promulgate rules and regulations to administer  the  conduct
  and offering of proposition wagers. The board, in promulgating rules and
  regulations  to  implement  this  section  and  in approving proposition
  wagers, shall consider: (i) the class of the race or races that  are  to
  be  the  subject  of  the  wager,  (ii)  whether the rules governing the
  proposition wager are  comprehensible  to  bettors,  (iii)  whether  the
  outcome  of  the  wager is subject to potential manipulation or abuse by
  third parties or by licensees of the board,  (iv)  the  length  of  time
  between  the time that the bets are placed and the time that the outcome
  of the bets will be determined, and (v)  whether  authorization  of  the
  wager will enhance the best interests of New York racing generally.
    b.  The  total  percentage  deducted from a proposition wager shall be
  fifteen per centum of the total amount handled in the  pari-mutuel  pool
  for  those  wagers, or, at the request of the association or corporation
  offering the proposition wager, and with the approval of the racing  and
  wagering  board,  a  lower percentage range of between seven and fifteen
  per centum may be designated.
    c. Out of the  amount  retained  by  the  association  or  corporation
  offering  the  proposition  wager,  there  shall be paid as a tax to the
  commissioner of taxation and finance .25 per centum of the total  amount
  handled  in the pari-mutuel pool for these wagers plus twenty per centum
  of the breaks as defined in  subdivision  one  of  section  two  hundred
  thirty-eight of this chapter.
    d.  (i)  A racing association or corporation licensed or franchised in
  accordance with article two of this chapter shall pay an amount equal to
  .5 per centum of the total pools from proposition wagers to the New York
  state thoroughbred breeding and development fund.
    (ii) A racing association or corporation licensed in  accordance  with
  article three of this chapter shall pay an amount equal to .5 per centum
  of  the  total  pools from proposition wagers to the agriculture and New
  York state horse breeding development fund.
    (iii) A racing association or corporation licensed in accordance  with
  article  four of this chapter shall pay an amount equal to .5 per centum
  of the total pools from proposition wagers to the New York state quarter
  horse breeding and development fund.
    e. After distributions have been made pursuant to paragraphs c  and  d
  of  this  subdivision,  fifty  per  centum of the amount retained by the
  association or corporation on proposition wagers shall be distributed to
  purses. Fifty per centum of compensation received by the association  or
  corporation,  on  account  of proposition wagering on races conducted by
  such association or corporation, from simulcast facilities or  off-track
  betting  facilities,  whether  or  not  located  in  New  York, shall be
  distributed to purses.
    2. a. A guest facility may enter into a contract with the host  racing
  association  or  corporation  to  offer wagering on the same proposition
  wagers offered by the host racing association. As used in this  section,
  a  guest  facility shall mean any regional off-track betting corporation

  or an in-state facility accepting  pari-mutuel  wagers  other  than  the
  facility where the subject races are run.
    b.  The  retention  rate  of  a  guest  facility  offering proposition
  wagering shall be the same as the retention rate utilized  by  the  host
  racing  association  or corporation. The amount to be paid as a tax by a
  guest facility shall be the same as that paid pursuant to paragraph c of
  subdivision one of this section.
    c. (i) Guest facilities licensed under section one thousand  seven  of
  this chapter which are also licensed or enfranchised racing associations
  or  corporations  under  article two of this chapter shall pay an amount
  equal to .5 per centum of total pools from proposition wagers to the New
  York state thoroughbred breeding and development fund.
    (ii) Guest facilities licensed under section  one  thousand  seven  of
  this   chapter  which  are  also  licensed  as  racing  associations  or
  corporations under article three of this chapter  shall  pay  an  amount
  equal  to  .5  per  centum of total pools from proposition wagers to the
  agriculture and New York state horse breeding and development fund.
    (iii) Guest facilities licensed under section one  thousand  seven  of
  this   chapter  which  are  also  licensed  as  racing  associations  or
  corporations under article four of this  chapter  shall  pay  an  amount
  equal to .5 per centum of total pools from proposition wagers to the New
  York state quarter horse breeding and development fund.
    (iv)  Guest  facilities  which  are  not also licensed or enfranchised
  under article two, three or four of this chapter  shall  pay  an  amount
  equal to .5 per centum of total pools from proposition wagers (A) to the
  New  York  state  thoroughbred breeding and development fund if the host
  track is a thoroughbred track, (B) to the agriculture and New York state
  horse breeding and development fund if  the  host  track  is  a  harness
  track,  (C) to the New York state quarter horse breeding and development
  fund if the host track is a quarter horse track and (D) to the New  York
  state  thoroughbred  breeding  and  development  fund if the proposition
  wagers are based on a mix of thoroughbred and quarter  horse  races.  If
  there  is  no  association or corporation licensed under article four of
  this  chapter,  the  distribution  of  funds  that  would  otherwise  be
  distributed to the New York state quarter horse breeding and development
  fund  shall  be  divided equally between the New York state thoroughbred
  breeding and development fund and the agriculture  and  New  York  state
  horse breeding and development fund.
    d.  Guest  facilities  which  are also licensed or enfranchised racing
  associations  or  corporations  shall,  after  distributions  are   made
  pursuant  to  paragraphs a, b and c of this subdivision shall distribute
  fifty per centum of their remaining retention to purses.
    e.  Every  racing  corporation,  off-track  betting  corporation,   or
  operator  of  a  simulcast  theater shall pay to the racing and wagering
  board as a regulatory fee,  which  fee  is  hereby  levied,  thirty-nine
  hundredths  of  one  per  centum of the total daily on-track pari-mutuel
  pools of such association or corporation or other entity of  proposition
  wagers.
    * NB Repealed June 30, 2009