VLT progress in NY

The New York State Senate passed two important bills on Thursday, March 17, that are intended to correct the current video lottery terminal (VLT) legislation and make installation of the machines viable at all racetracks.



The current VLT legislation was passed in 2003, but to date only four of the eight tracks permitted to run the machines have installed them, including Monticello, Saratoga Harness and Buffalo Raceway.



From the beginning, racetrack operators have voiced concerns that they could not afford to operate VLTs at the legislated revenue splits.



This prompted Jeff Gural, a breeder, track owner and Harness Horse Breeders director, to spearhead a movement to "fix" the legislation by giving racetracks a larger vendor's fee and dedicating a portion of revenue for marketing and promotion, something currently absent from the law.



Senate Bill 2594, the so-called "Gural Bill," was sponsored by Senator William Larkin, Chairman of the Racing and Wagering Committee, and passed by a 50-5 margin.



"I'm very pleased that we're finally making progress and it shows what can happen when an industry joins together and tries to get something done," said Gural. "We are hopeful that the Assembly and Governor will now follow suit."



The bill is for 15 years and allows for racetracks to receive a vendor fee of 32 percent on the first $50 million of revenue from VLTs, 29 percent on the next $100 million and 26 percent thereafter. From these percentages, tracks will contract directly with horsemen's associations and the breeders for the percentages going to track purses and the Sire Stakes program, consistent with the existing law. Racetracks will also receive an additional marketing allowance of eight percent on the first $100 million of revenue and five percent thereafter to be used for promotional purposes.



Senate Bill 2594 has the support of all track owners, all horsemen's organizations, and both the Thoroughbred and harness horse breeders organizations.



"If passed by the Assembly and signed into law, this will insure a strong breeding and racing program in New York State for many years to come," said Robert A. Brooks, Harness Horse Breeders executive director. "We are confident that should this become law, it will allow all racetracks, particularly Yonkers Raceway, to open and operate VLTs in the near future. It will also allow the New York Sire Stakes to continue as the premier program in the country."



The second bill that was passed, Senate Bill 3276, the so-called "Governor's Bill," was also introduced by Sen. Larkin and was carried by a 48-7 vote.



This alternate plan calls for the racetracks to receive a fixed vendor's fee of 20.25 percent. Tracks will also enter into a 10-year contract with the State Lottery Division, funded by an annual appropriation from the general fund, for an additional marketing and promotion allowance of up to 13.75 percent. From the marketing allowance, tracks would distribute funds to track purses and the breeders on the following schedule:



Purses years 1-3 7.5%

years 4-5 7.75%

years 6-10 10%



Breeders years 1-5 1.25%

years 6-10 1.5%



These percentages are the maximum allowed and are subject to negotiations with the racetracks. The remainder of the marketing allowance will be used for promotion, but will be capped at $3 million per track per year.



Both bills will now be forwarded to the Assembly for consideration. It is anticipated that the "Gural Bill" will be sponsored by Assemblyman J. Gary Pretlow, the new Chairman of the Assembly Committee on Racing and Wagering who also represents Yonkers Raceway.--Harness Horse Breeders of New York

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