BILL NUMBER: S6594
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the tax law, in relation to the investment of funds
wagered on video lottery gaming for certain horse races; to repeal
certain provisions of the tax law relating thereto; and to repeal para-
graph (b) of subdivision 1 of section 1355 of the racing, pari-mutuel
wagering and breeding law relating thereto
 
PURPOSE:
This legislation will end racing subsidies in New York State and invest
the revenue generated from video lottery gaming facilities at racetracks
to education and communities throughout the state.
 
SUMMARY OF PROVISIONS:
Section 1 amends subdivision f of Section 1612 of the Tax Law to include
depositing funds for educational purposes.
Section 2 amends paragraph 1-b of subdivision b of Section 1612 of the
Tax Law to include language of education support payments.
Section 3 amends subdivision f-1 of Section 1612 of the Tax Law to
include depositing funds for educational purposes.
Section 4 amends the opening paragraph of paragraph 2 of subdivision b
of Section 1612 of the Tax Law to include language for economic develop-
ment, job creation, and workforce protections in counties that host
video lottery gaming facilities.
Section 5 repeals paragraph 3 of subdivision b of Section 1612 of the
Tax Law.
Section 6 amends subdivision h of Section 1612 of the Tax Law to include
depositing funds for educational purposes.
Section 7 amends paragraph 5 of subdivision a of Section 1617-A of the
Tax Law.
Section 8 repeals paragraph (b) of subdivision 1 of Section 1355 of the
Racing, Pari-mutuel Wagering and Breeding Law.
Section 9 is the severability clause. Section 10 is the effective date.
 
JUSTIFICATION:
Attendance at horse racing venues in New York State has sharply declined
over the years. While the summer racing season at Saratoga remains popu-
lar, stands at Yonkers Raceway, Aqueduct Racetrack and others are prac-
tically empty. The decline in the popularity of horse racing in recent
years has been partly attributed to the public's increasing disapproval
of cruelty within the industry, evidenced by doping scandals and the
high numbers of injuries and deaths. Despite horse racing's diminishing
attraction, New York State continues to provide millions of dollars in
subsidies each year to prop up the industry. Other states, including
Kentucky, California, Illinois, and Texas do not provide state subsidies
to their racing industry.
Each year, approximately $250 million in revenue generated by the
state's casino industry is diverted to support the horse racing indus-
try. This revenue would be better spent investing in New York State's
education system as well as economic development in communities where
racing occurs. A 2021 Marist poll found that just 9.% of New Yorkers
support state subsidies of horse racing, and as the horse racing indus-
try continues to decline in popularity, it is time to reinvest these
subsidies in areas that will truly help New Yorkers.
 
LEGISLATIVE HISTORY:
2023-2024: S.5438 - Referred to Racing, Gaming and Wagering/A.1162 -
Referred to Ways and Means
2021-2022: S.8485 - Referred to Racing, Gaming and Wagering/A.8468-A -
Amend and Recommit to Ways and Means
 
STATE AND LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S6594: 1612 tax law, 1612(b) tax law, 1612(h) tax law, 1617-a tax law, 1617-a(a) tax law