BILL NUMBER: S7787
SPONSOR: ADDABBO
 
TITLE OF BILL:
An act to amend the racing, pari-mutuel wagering and breeding law, in
relation to host counties and host municipalities of commercial gaming
facilities
 
PURPOSE:
To ensure that the counties and municipalities that currently host New
York's four commercial upstate casinos are not negatively financially
impacted by the licensing of additional downstate casinos.
 
SUMMARY OF PROVISIONS:
Section 1 would amend subdivision 1 of section 1352 of the racing, pari-
mutuel wagering and breeding law to require taxes being collected from
downstate casinos licensed under Article 2-a of the of the racing, pari-
mutuel wagering and breeding law are available to ensure that the
upstate counties and municipalities that host commercial casinos
licensed under Article 2 of the racing, pari-mutuel wagering and breed-
ing law do not receive any less aid than they receive pursuant to
subparagraph b of paragraph 3 of section ninety-seven once commercial
casino operations have commenced for the downstate facilities licensed
under Article 2-a.
Section 2 provides for an immediate effective date.
 
JUSTIFICATION:
2013 - Commercial Casino Gaming Legalized in NY
2015 - Upstate Casino Licenses Awarded
2016 - Commercial Casino Operations Commenced for Upstate Facilities
Current New York state law requires 10 percent of the State's gross tax
revenue from each Upstate Casino be split between the host county and
host municipality
Once downstate casinos are operating, this bill requires that taxes
being collected by the state from the downstate casinos go to ensure no
host county or municipality for upstate casinos collects less money in
aid than they did before downstate casinos were operational. This does
not change the tax rate for any casinos
This does not require any downstate facility to pay any additional money
beyond the taxes already set in statute
This bill only requires taxes being collected from downstate casinos be
directed to hold host upstate counties and host municipalities harmless
to the extent necessary required to offset a reduction in gross gaming
revenue being collected from upstate facilities and directed to host
municipalities
The State estimates between $462-$826 million in annual tax revenue from
downstate casinos. This bill would redirect taxes, as needed, based on a
reduction in taxes being collected from upstate gross gaming revenue as
a direct result of downstate licenses becoming operational.
 
LEGISLATIVE HISTORY:
New Bill.
 
FISCAL IMPLICATIONS:
Approximately $1 million - $3 million
 
EFFECTIVE DATE:
This act shall take effect immediately.