SGC-19-15-00017-P Permits Coupled Entries with Thoroughbred Superfecta Wagering

5/13/15 N.Y. St. Reg. SGC-19-15-00017-P

NEW YORK STATE REGISTER

VOLUME XXXVII, ISSUE 19

May 13, 2015

RULE MAKING ACTIVITIES

NEW YORK STATE GAMING COMMISSION

PROPOSED RULE MAKING

NO HEARING(S) SCHEDULED

 

I.D No. SGC-19-15-00017-P

Permits Coupled Entries with Thoroughbred Superfecta Wagering

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

Proposed Action:

Renumbering and amendment of section 4011.22 to section 4011.21; addition of new section 4011.22 to Title 9 NYCRR.

Statutory authority:

Racing, Pari-Mutual Wagering and Breeding Law, sections 103(2), 104(1), (19) and 122

Subject:

Permits coupled entries with thoroughbred superfecta wagering.

Purpose:

To improve wagering opportunities in thoroughbred horse racing.

Text of proposed rule:

Section 4011.22 of 9 NYCRR would be renumbered and amended to read as follows:

THE TRIFECTA

§ [4011.22] 4011.21. Trifecta.

(a) The object of the trifecta is to select in order, the first-, second- and third-place horses in a designated trifecta race. The trifecta pool shall be held entirely separate from all other pools and has no relation to any other pool.

(b) Races in which trifecta betting shall be conducted shall be approved by the commission and be clearly designated in the program.

(c) If a horse is scratched or excused from racing or betting no further tickets shall be sold designating such horse and all tickets previously sold designating such horse shall be refunded and the money deducted from the pool.

(d)(1) If no ticket is sold designating, in order, the first three horses or only two horses finish, the net pool shall be distributed equally among holders of tickets designating the first two horses in order[;].

(2) [if] If no ticket is sold designating, in order, the first two horses or only one horse finishes, the net pool shall be distributed equally among holders of tickets designating the [first] horse to win.

[(e)] (3) If no ticket is sold designating the winner to win, the trifecta shall be declared off and the gross pool refunded. An announcement of such possibility shall be made as soon as the pool closes.

[(f)] (e) Dead heat. In the event of a dead heat, all tickets designating the correct order of finish, crediting each horse in a dead heat as finishing in [either position] any of the dead-heat positions, shall be winning tickets[ and distribution]. Distribution shall be in accordance with established pari-mutuel practice relative to dead heats, i.e., separate price calculations for different combinations.

[(g)] (f) Coupled entries and fields are permitted in trifecta races. In such races no wagers may be accepted or issued (including “wheel” or “box” type bets) that couple the same coupled entry or the same field in the same combination.

[(h)] (g) The numbers of the first three horses as made official shall constitute the winning combination, except that where two or more such horses are part of the same coupled entry or field only the best finishing position attained by such coupled entry or field horses shall be considered for pay-off purposes and the next best finishing horses not part of such coupled entry or field shall be selected to determine the winning trifecta combination.

[(i)] (h) No trifecta wagering shall be conducted on any race having fewer than five betting entries. If fewer than five betting entries start, the trifecta shall be declared off and the gross pool refunded. The commission's steward may, in the exercise of discretion to protect the wagering public, require that there be at least six betting entries for the conduct of trifecta wagering.

A new section 4011.22 would be added to 9 NYCRR to read as follows:

THE SUPERFECTA

§ 4011.22. Superfecta.

(a) The object of the superfecta is to select in order, the first-, second-, third- and fourth-place horses in a designated superfecta race. The superfecta pool shall be held entirely separate from all other pools and has no relation to any other pool.

(b) Races in which superfecta betting shall be conducted shall be approved by the commission and be clearly designated in the program.

(c) If a horse is scratched or excused from racing or betting no further tickets shall be sold designating such horse and all tickets previously sold designating such horse shall be refunded and the money deducted from the pool.

(d)(1) If no ticket is sold designating, in order, the first four horses or only three horses finish, the net pool shall be distributed equally among holders of tickets designating the first three horses in order.

(2) If no ticket is sold designating, in order, the first three horses or only two horses finish, the net pool shall be distributed equally among holders of tickets designating the first two horses in order.

(3) If no ticket is sold designating, in order, the first two horses or only one horse finishes, the net pool shall be distributed equally among holders of tickets designating the horse to win.

(4) If no ticket is sold designating the winner to win, the superfecta shall be declared off and the gross pool refunded. An announcement of such possibility shall be made as soon as the pool closes.

(f) Dead heat. In the event of a dead heat, all tickets designating the correct order of finish, crediting each horse in a dead heat as finishing in any of the dead-heat positions, shall be winning tickets. Distribution shall be in accordance with established pari-mutuel practice relative to dead heats, i.e., separate price calculations for different combinations.

(g) Coupled entries and fields are permitted in superfecta races. In such races no wagers may be accepted or issued (including “wheel” or “box” type bets) that couple the same coupled entry or the same field in the same combination.

(h) The numbers of the first four horses as made official shall constitute the winning combination, except that where two or more such horses are part of the same coupled entry or field only the best finishing position attained by such coupled entry or field horses shall be considered for pay-off purposes and the next best finishing horses not part of such coupled entry or field shall be selected to determine the winning superfecta combination.

(i) No superfecta wagering shall be conducted on any race having fewer than five betting entries. If fewer than five betting entries start, the superfecta shall be declared off and the gross pool refunded. The commission's steward may, in the exercise of discretion to protect the wagering public, require that there be at least six betting entries for the conduct of superfecta wagering.

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

Kristen Buckley, Acting Secretary, New York State Gaming Commission, One Broadway Center, PO Box 7500, Schenectady, New York 12305-7500, [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 sections 103(2), 104(1), 104(19) and 122. Under Section 103(2), the Commission is responsible to supervise, regulate, and administer 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. Section 122 continues previous rules and regulations of the legacy New York State Racing and Wagering Board, subject to the authority of the Commission to modify or abrogate such rules and regulations.

2. Legislative Objectives: To improve wagering opportunities in thoroughbred pari-mutuel racing.

3. Needs and Benefits: This rulemaking will add an explicit superfecta wagering rule for thoroughbred racing to Part 4011 of 9 NYCRR. The new rule will be numbered Section 4011.22 and an existing Section 4011.22 will be renumbered as Section 4011.21.

Under this proposal, the Commission would permit a racetrack operator to offer superfecta wagering without special permission of the Commission and modernize the type of superfecta wagering that may be offered to expand the wagering opportunities.

When the Commission authorized superfecta wagers in March 1998, it did so with a rule, 9 NYCRR 4011.28, that allowed a racetrack operator to offer wagers not fully described in the Commission rules, provided that permission was granted by the Commission and such additional type of wager was defined in the model rules of the Association of Racing Commissioners International, Inc. (“ARCI”). In particular, the Commission incorporated by reference the December 1996 version of the ARCI model rules that permitted superfecta wagering. Since then, superfecta wagering has become widely accepted and ARCI has modified its superfecta wagering model rule.

The proposal would allow a racetrack operator to offer superfecta wagering without requesting special permission for this wager. This type of wager would be fully described in the Commission rules, instead, and the description would reflect the current ARCI model rule which, for example, now permits coupled entries in a superfecta race.

This proposal will streamline the process of offering wagering opportunities for New York racetrack operators. It will allow more superfecta wagering opportunities by permitting this wager, in which the first four horses must be selected in the correct order of finish, when the field includes coupled entries. A coupled entry is the combining of the wager on one horse with other horses that have common ownership or training, such that a single wager in attributed to all linked horses. The proposal provides if a bettor selects a coupled entry in a superfecta wager, then only the best finishing of the coupled horses is included in determining the order of finish of the horses for such wager. This allows the racetrack operator to offer superfecta wagering when there are coupled entries, in conformance with the modern ARCI model rule.

As a result, this proposal would provide more superfecta wagering opportunities for thoroughbred pari-mutuel racing bettors and generate more handle and revenue for the racetrack operator and for local and state government.

4. Costs:

(a) Costs to regulated parties for the implementation of and continuing compliance with the rule: This amendment would 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. There will be no costs to local governments because they do not regulate pari-mutuel racing activities.

(c) The information, including the source(s) of such information and the methodology upon which the cost analysis is based: The Commission has determined that no costs will be imposed because the rule does not create any mandatory new duty or obligation.

5. Local Government Mandates: None. The Commission is the only governmental entity authorized to regulate pari-mutuel horse racing activities.

6. Paperwork: The Commission will lessen the paperwork faced by thoroughbred racetrack operators by eliminating the requirement of special permission to offer superfecta wagers.

7. Duplication: None.

8. Alternatives: The Commission considered not proposing this rule. The outdated ARCI superfecta wagering rule does permit superfecta wagering, but not as much because of its archaic requirement that coupled entries are not permitted. Other racetrack operators in other jurisdictions successfully offer the modern ARCI version of this rule, however, and the Commission concluded that New York thoroughbred racetrack operators and those who prefer to wager on New York racing should have the enhanced opportunities to offer or wager on New York superfecta races.

9. Federal Standards: None.

10. Compliance Schedule: The proposed rule does not create any additional requirements with which regulated persons must comply.

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 only authorizes the thoroughbred racetrack operators in New York to offer superfecta wagering when the field includes coupled entries, the combination of more than one horse as a single wagering selection when the horses are owned or trained in common. The proposal will allow superfecta wagering with coupled entries by counting only the best finishing of the coupled horses for such wagers. No regulated party will need a period to cure a pending matter because there is no penalty enhancement.

Such regulation will serve the best interests of thoroughbred racing by increasing 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.