SGC-07-16-00011-P Thoroughbred Pick-Four, Pick-Five and Pick-Six Wagers

2/17/16 N.Y. St. Reg. SGC-07-16-00011-P

NEW YORK STATE REGISTER

VOLUME XXXVIII, ISSUE 7

February 17, 2016

RULE MAKING ACTIVITIES

NEW YORK STATE GAMING COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. SGC-07-16-00011-P

Thoroughbred Pick-Four, Pick-Five and Pick-Six Wagers

PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:

Proposed Action:

Amendment of sections 4011.23 and 4011.26; renumbering of section 4011.24 to 4011.23; and addition of section 4011.25 to Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutuel Wagering and Breeding Law, sections 103(2), 104(1) and (19)

Subject:

Thoroughbred pick-four, pick-five and pick-six wagers.

Purpose:

To standardize and improve the pick-four, pick-five and pick-six wagers in thoroughbred racing.

Substance of proposed rule (Full text is posted at the following State website:https://www.gaming.ny.gov)

Section 4011.23. Pick-six pools.

This section is renumbered as § 4011.26, changes in style are made, new subdivisions (b), (c), (d), (e), (i), (k), (n) (o), (p) and (x) are added and other amendments are made, often to conform the structure of the section to the sections governing the pick-four and pick-five rules. A new subdivision (a) defines the wager and requires written approval from the commission concerning scheduling of pick-six contests, the designation of the method used and the amount of any cap to be set on the carryover. The subdivision also requires that any changes to the approved pick-six format require prior approval from the commission. A new subdivision (b) sets forth that the pick-six wager is separate from other types of wagers. A new subdivision (c) prohibits the re-sale of pick-six tickets. A new subdivision (d) requires the clear designation of which races are part of pick-six wagering. A new subdivision (e) requires a distinguishing design for pick-six tickets. A new subdivision (f) (formerly subdivision (g)) provides that should a programmed starter be scratched or declared a nonstarter in any pick-six race before the start of the first pick-six race, affected bettors may select another betting interest or cancel the wager before the start of the first pick-six race, or else a designated horse will be substituted for the scratched or nonstarting horse. In the new subdivision (g) (formerly subdivision (b)), the amendments make it possible for a bettor to win the major pool, by correctly selecting the winner in all six races, when there has been a surface transfer from turf in more than one of the pick-six races. The amendment allows for as many as three surface transfer races, which are deemed a win for all bettors (“all win”), when the bettor correctly selects all the other races. In subdivision (h), if a designated race is cancelled for pari-mutuel wagering before the first pick-six race is made official, then the pick-six wagers are deemed cancelled and the gross pool will be refunded to the bettors. A new subdivision (i) is added for when there are surface transfers in one or more designated races in the pick-six pool. The former subdivision (f) is redesignated as subdivision (j). A new subdivision (k) is added in regard to carryovers. The former subdivision (d) is redesignated as subdivision (l) and stylistic changes are made. The former subdivision (e) is redesignated as subdivision (m) and stylistic changes are made. A new subdivision (n) concerns suspension of pick-six wagering, with the prior approval of the commission. A new subdivision (o) concerns prohibition of display of will-pays. A new subdivision (p) concerns distribution occurrences not encompassed within the explicit provisions of section 4011.26. The former subdivision (j) is redesignated as subdivision (q) and stylistic changes are made. The former subdivision (n) is redesignated as subdivision (r) and stylistic changes are made. The former subdivision (o) is deleted, as the substance of it is superseded by the new subdivision (p). The former subdivision (m) is redesignated as subdivision (s) and stylistic changes are made. The former subdivision (l) is redesignated as subdivision (t) and stylistic changes are made. The former subdivision (q) is redesignated as subdivision (u) and stylistic changes are made. The former subdivision (k) is redesignated as subdivision (v) and stylistic changes are made. The former subdivision (i) is redesignated as subdivision (w) and stylistic changes are made. The new subdivision (x) requires the track to make copies of section 4011.26 available to the public free of charge in the public betting area of the track.

Section 4011.24. WIN-3. This section is renumbered as § 4011.23.

Section 4011.25. Pick-five pools.

A new section 4011.25 is added, called pick-five pools. The section was reserved. The provisions for this wager are generally consistent with those for pick-six pools except that there is no minor pool. The pick-five requires a bettor to select the winner of five designated races. Provisions are made for dead heats, final or other designated distributions at a race meeting, scratched horses, cancelled races and surface transfers. The retention rate for the pick-five pool is 15 percent.

Section 4011.26. Pick-four pools.

This section is renumbered as § 4011.24, changes in style are made, new subdivisions (h), (i), (p) and (r) are added and other amendments are made. Subdivision (a) defines the wager and requires written approval from the commission concerning scheduling of pick-four contests and the designation of the method used. The subdivision also provides that any changes to the approved pick-six format require prior approval from the commission. Stylistic changes are made in subdivisions (b), (c), (d) and (e). In subdivision (f), the designated substitute wager, should a betting entry or field be scratched from a pick-four race, when there is a tie among remaining horses for most money wagered on the horse in the win pool, is defined as the horse among those tied that has the lowest program number rather than on which the most money is wagered in the place pool. Also, an affected bettor is authorized to choose between cancelling a wager or selecting another horse when a horse selected to win a designated race is scratched before the first race of the pick-four, and otherwise the wager for such race is construed as a bet on a different horse, determined by rule, for such race. Stylistic changes are made in subdivision (g) and paragraph (5) is redesignated as a new subdivision (i) and amended to specify that bettors who select the winners in the greatest number of races run on the originally scheduled surface will share the net pool when there is a surface change in one or more of the designated races in the pick-four, and if there are no such winners then the entire pool for such program is refunded. A new subdivision (h) is added for when there are cancellations in the designated races in the pick-four pool. The new rules specify when a pick-four with race cancellations will result in a distribution of the net pool or in a cancellation of the pick-four pool and a refund of wagers. The former subdivision (h) is redesignated as subdivision (j). Subdivisions (k) through (o) would be reserved, in order to further consistency in the designation of similar subdivisions across the pick-four, pick-five and pick-six rules. The former subdivision (i) is redesignated as subdivision (p) and stylistic changes are made. A new subdivision (q) concerns posting of winning combinations. A new subdivision (r) concerns non-transferability of pick-four tickets. Subdivisions (s) through (w) would be reserved, in order to further consistency in the designation of similar subdivisions across the pick-four, pick-five and pick-six rules.

The former subdivision (j) would be redesignated as subdivision (x).

Text of proposed rule and any required statements and analyses may be obtained from:

Kristen M. Buckley, New York State Gaming Commission, 1 Broadway Center, P.O. Box 7500, Schenectady, New York 12301, [phone], email:[e-mail]

Data, views or arguments may be submitted to:

Same as above.

Public comment will be received until:

45 days after publication of this notice.

Regulatory Impact Statement

1. Statutory authority: The New York State Gaming Commission (“Commission”) is authorized to promulgate these rules pursuant to Racing Pari-Mutuel Wagering and Breeding Law (“Racing Law”) Sections 103(2) and 104 (1, 19). Under Section 103(2), the Commission is responsible for supervising, regulating and administering all horse racing and pari-mutuel wagering activities in the State. Subdivision (1) of Section 104 confers upon the Commission general jurisdiction over all such gaming activities within the State and over the corporations, associations and persons engaged in such activities. Subdivision (19) of Section 104 authorizes the Commission to promulgate any rules and regulations that it deems necessary to carry out its responsibilities.

2. Legislative objectives: To enable the Commission to preserve the integrity of pari-mutuel racing while generating reasonable revenue for the support of government.

3. Needs and benefits: This rule making proposes to amend the Commission’s thoroughbred pick-four and pick-six wagering rules to be more consistent and attractive to bettors, and to add a thoroughbred pick-five type of wager that is only incorporated by reference under current rules. This should result in more wagering activity, more entertainment for racing fans, and greater revenue for government.

The proposal would set forth how special circumstances (cancelled races, scratched horses, and surface changes) affect each of these wagers. It would increase a bettor’s chances of winning under some circumstances that currently result in a cancellation of the pool, and make such wagers more attractive to bettors by returning the full amount wagered when appropriate in unusual cases. The proposal will put a full description of the pick-five wager in the Commission rules. Finally, the proposal would reorganize these wagers into serial order and make changes in style to make the rules more clear.

The WIN-3 pool, currently 9 NYCRR § 4011.24, would be renumbered section 4011.23. No other amendments are proposed to the WIN-3 pool.

The pick-four pool, section 4011.26, would be renumbered section 4011.24. Subdivision (f) of the rule would be amended to simplify the designation of a substitute wager, when a horse is scratched before a pick-four race. When a betting entry or field is scratched in a pick-four race, the rule designates the favorite horse in the win pool as a substitute wager for the bettors whose horse was scratched. Currently, if two or more horses were tied for most money wagered in the win pool, the tie-breaker is the most money wagered on such horses in the place pool. The amendment will replace the place-pool tie-breaker by designating the substitute wager as the horse, from among those tied in the win pool, with the lowest program number. This will be easier to understand and administer, should such a situation arise, and be consistent with the rule for pick-six wagers. Subdivision (f) would also be amended to provide a bettor with the choice, should such a scratch occur before the first race of the pick-four pool, to select a different substitute horse or to surrender the ticket and receive a refund. If neither option is exercised before the first race, then the bettor will be given a substitute horse as described above. This amendment will give bettors more control and generate greater interest in the pick-four wager.

Paragraph (5) of subdivision (g) would be renumbered subdivision (i) for pick-four surface transfers. A new subdivision (h) for race cancellations would also be added. Both subdivisions would be amended to improve pick-four wagers. When a pick-four race is changed from the turf to another racing surface, it results in all pick-four bettors being credited with a win (“all win”) in such race. The proposal would require that winning bettors must pick at least one horse that wins in a race run on the originally scheduled surface to share in the net pool (amount bet less take-out). If none does, then the gross pool (total amount wagered for such program) will be refunded. Currently, when the only wins are an “all win” race, the bettors share the net pool. The proposal would also provide that when a pick-four race is cancelled before the first race of the pick-four pool, or more than two pick-four races are cancelled, the pick-four wager will be cancelled and the gross pool refunded. Under the current rule, even if only one race is not cancelled the net pool would be paid to bettors rather than a refund of the gross pool. These amendments will make the pick-four rule more attractive to bettors and consistent with the pick-five and pick-six wagers.

A new section 4011.25, currently a reserved rule number, would be added for pick-five pools. The pick-five wager is currently conducted as an “additional authorized wager” under section 4011.28, which cross-references an outside document (a December 1996 national model rule), together with modifications approved by the stewards. A pick-five wager requires the correct selection of the winning horses in every designated race. The pick-six wager also has a minor pool for bettors who select five of six winners. The pick-four wager sometimes pays bettors who select the greatest number of winners. Thus, the pick-five is easier to win (by picking five winners) than a pick-six wager, and the pick-five has carry-overs that can generate very large prizes unlike a pick-four wager. The pick-five has provisions for when a bettor’s selected horse is scratched, a race is changed from the turf to another surface, or a pick-five race is cancelled. This type of wager has been recently offered at thoroughbred tracks and has generated greater fan interest than the pick-four or pick-six, and the wager would now be included in the body of the Commission rules.

The pick-six pool, currently in section 4011.23, would be renumbered section 4011.26. Subdivision (b) would be amended to change the major pool winners when there has been a surface transfer that changes every wager on that race into a winner (“all-win”). Currently, the major pool is paid to bettors who win the six designated races with either one “all-win” or no surface transfers. The proposal would amend this by allowing as many as three “all wins.” This will make the pick-six wager more attractive to bettors because when there are surface transfers during a race day with a pick-six wager, it is common for more than one race to be changed, with the result under the current rule that no bettors can win the pick-six major pool even when the other races are correctly selected. (Under the current and amended rules, should no bettor win the major pool it is carried over and added to the major pool in the next scheduled pick-six wagering pool.)

Subdivision (g) would be amended to provide bettors the choice, should a scratch of their selected horse occur before the pick-six races begin, of accepting the designated substitute horse or, before the first race of the pick-six pool is run, selecting a different substitute horse or surrendering the ticket for a refund. This amendment will allow such bettors to continue to play this wager. Under the current rule, the racetrack operator would refund such pick-six wagers.

The proposal would amend subdivision (h) to apply to race cancellations, providing that the pick-six pool wagers will be cancelled when a pick-six race is cancelled before any such races begin, and a new subdivision (i) would be added for surface transfers. The proposal would make similar amendments to those for the pick-four and pick-five wagers. This subdivision replaces paragraph (2) of subdivision (h), which provides only that surface transfer races are considered “all wins.” These amendments will create an easier set of rules for the wagering public.

Finally, the proposal makes various changes in style to clarify the rules.

4. Costs:

(a) Costs to regulated parties for the implementation of and continuing compliance with the rule: These amendments will not add any new mandated costs to the existing rules.

(b) Costs to the agency, the state and local governments for the implementation and continuation of the rule: None. The amendments will not add any new costs. There will be no costs to local government because the Commission is the only governmental entity authorized to regulate pari-mutuel harness racing.

(c) The information, including the source(s) of such information and the methodology upon which the cost analysis is based: N/A.

5. Local government mandates: None. The Commission is the only governmental entity authorized to regulate pari-mutuel thoroughbred racing activities.

6. Paperwork: There will be no additional paperwork.

7. Duplication: No relevant rules or other legal requirements of the state and/or federal government exist that duplicate, overlap or conflict with this rule.

8. Alternatives: The Commission considered no other alternatives. The proposed rule changes were drafted in consultation with wagering officials at the New York Racing Association, Inc. (“NYRA”) and are supported by NYRA.

9. Federal standards: There are no minimum standards of the Federal government for this or a similar subject area.

10. Compliance schedule: The Commission believes that regulated persons will be able to achieve compliance with the rule upon adoption of this rule.

Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement

A regulatory flexibility analysis for small business and local governments, a rural area flexibility analysis, and a job impact statement are not required for this rulemaking proposal because it will not adversely affect small businesses, local governments, rural areas, or jobs.

This proposal revises the Commission’s pari-mutuel wagering rules in regard to the pick-four, pick-five and pick-six wagers on thoroughbred horse races to make the wagers more attractive to bettors and easier to understand. Such regulation will serve the best interests of thoroughbred racing by improving the wagering opportunities that racetrack operators may offer to the wagering public. This rule will not impose an adverse economic impact or reporting, record keeping, or other compliance requirements on small businesses in rural or urban areas or on employment opportunities. No local government activities are involved.