Title 9 Part 4409

Pursuant to the authority of section 131 of chapter 439 of the Laws of 1974, and local law INT 544 of the New York City Council, a five percent surcharge on the portion of pari-mutuel wagering pools distributable to persons having placed bets at off-track betting facilities has been imposed upon all off-track pari-mutuel wagering in the State.

The surcharge plus the breaks will not be deducted from any pool if to do so would result in a payoff basis of less than $2.10 for a $2 wager. Thus, where a payout is greater than $2.10 but would be reduced to less than $2.10 upon deduction of the full surcharge, a surcharge will be imposed and deducted only insofar as such surcharge will allow a minimum payoff of $2.10 for each $2 wager.

To ensure the segregation of monies in the distributable pool on which the surcharge is imposed, all pools transmitted to racetracks must be maintained intact until the race results to which they relate are received by the Off-Track Betting Corporation, commission or other authorized organization from the racetrack. A payout report will be transmitted to such regional corporation, commission or organization, as the basis for the surcharge calculation.

All revenues derived from the surcharge plus the breaks shall be held separate and apart from any monies otherwise authorized to be retained from pari-mutuel pools and shall be separately distributed from monies for any other purpose.

All revenues received from the surcharge pursuant to section 532 of the Racing, Pari-Mutuel Wagering and Breeding Law shall be distributed in accordance with the provisions of section 532 and, as applicable, section 516 of such law.

Each regional corporation shall establish and maintain separate interest-bearing accounts in trust for distribution to the political subdivisions entitled thereto, and in banking institutions approved by the Comptroller of the State of New York, in which all surcharge revenues originating within such corporation shall be deposited on a calendar-week basis within three days after the end of such calendar week.

Disputes between any regional corporation, commission or other organization authorized to conduct off-track pari-mutuel betting in the State and any track or other person, association or corporation with respect to the collection or payment of the surcharge, shall be submitted in writing to the commission for determination.

All books, records and accounts relative to the collection or disposition of surcharge revenues by any regional corporation, commission or other organization authorized to conduct off-track pari-mutuel betting in this State shall be kept and preserved at the principal place of business of such corporation, commission or organization for a period of three years.