GOVERNOR SPITZER, MAJORITY LEADER BRUNO, SPEAKER SILVER, AND THE NEW YORK RACING ASSOCIATION REACH AGREEMENT ON STATE RACING FRANCHISE
Governor Eliot Spitzer, Senate Majority Leader Joseph L. Bruno, Assembly Speaker Sheldon Silver, and the New York Racing Association (NYRA) today announced an agreement awarding the state’s racing franchise to operate Aqueduct Racetrack, Belmont Park, and Saratoga Race Course to the New York Racing Association.
(Media-Newswire.com) - Governor Eliot Spitzer, Senate Majority Leader Joseph L. Bruno, Assembly Speaker Sheldon Silver, and the New York Racing Association ( NYRA ) today announced an agreement awarding the state’s racing franchise to operate Aqueduct Racetrack, Belmont Park, and Saratoga Race Course to the New York Racing Association.
This agreement ensures that racing will continue at Aqueduct, Belmont, and Saratoga, and allows the installation of a Video Lottery Terminal ( VLT ) facility at Aqueduct to proceed. Additionally, Vernon Downs will be able to reopen and a shutdown of Tioga Downs will be averted. These and other racetracks around the state are vital to many local economies and generate essential funding for New York’s education system, and today’s announcement will help preserve this for years to come.
“Thoroughbred racing plays an important role in our economy, employing thousands of New Yorkers around the state,” said Governor Spitzer. “Today we have reached an agreement that represents the best vision for the future of the horseracing industry, and will ensure that operations at these tracks will continue uninterrupted and have the financial resources they need to thrive in the future.”
Senate Majority Leader Joseph L. Bruno said: “I am pleased that we have reached a final agreement on the future of thoroughbred horse racing in New York State that meets the basic goals we outlined at the beginning of this process, including greater accountability and increased oversight to ensure the integrity of racing, and creation of a new racing model that reforms the status quo. Most importantly to local residents and countless racing fans across the country, this agreement preserves the unique historic character of Saratoga, the crown jewel of racing. I am also pleased that we have finally reached an agreement that would provide harness tracks with the additional resources they need to be more competitive so they can be more successful in attracting fans and generating additional funds that can be used for education in this State. I commend Senator Larkin, the Chair of the Senate's Racing, Gaming and Wagering Committee, for his leadership in helping us achieve the best result possible for 19 million New Yorkers, ensuring that New York continues to be home to the best horse racing in the world.”
Assembly Speaker Sheldon Silver said: “Assembly Racing and Wagering Committee Chair Gary Pretlow and I have remained committed since last summer to bring about a sensible and fiscally sound agreement on the future of thoroughbred and harness racing that provides for greater accountability and transparency and firmly establishes state ownership of Aqueduct, Belmont and Saratoga. This legislation transforms NYRA and provides vital support and necessary oversight of an industry that is an important part of local economies throughout New York State.”
Assembly Minority Leader Jim Tedisco said: “I am pleased that after a year and a few months, we have finally reached what I and others believe is an agreement on NYRA. It is good news for local taxpayers, the horsemen, the breeders, racing enthusiasts and for the future of racing in New York State. Especially important is that this agreement reflects fundamental core values, including protecting Saratoga taxpayers and the integrity of our local racing product, along with preserving the cultural and historical character of our race track.”
C. Steven Duncker, Chairman, NYRA Board of Trustees said: “This legislation contains the key components needed for us not only to emerge from bankruptcy, but also to improve upon what is already the best racing in the world. We thank the Governor, Speaker of the Assembly and Senate Majority Leader for their diligent work and their commitment to this vital issue for New York State.”
The length of the franchise will be 25 years. The board of the newly reconstituted New York Racing Association will include 25 members. Fourteen of the board members will be appointed by the existing NYRA Board of Directors. Eleven will be governmental appointees, seven of which will be appointed by the Governor, two of which will be appointed by the Senate Majority Leader, and two of which will be appointed by the Speaker of the Assembly. Among the Governor’s appointees will be one representative each from four important stakeholder groups in the racing industry: breeders, horsemen, organized labor and the OTBs.
The agreement also includes increased transparency and accountability measures. Every four years, a Franchise Oversight Board will evaluate NYRA’s operations to assess whether it has met certain financial and performance benchmarks. The Franchise Oversight Board will include five appointees. Three will be appointed by the Governor, one will be appointed by the Speaker of the Assembly, and one will be appointed by the Senate Majority Leader.
Under the agreement, NYRA will relinquish all current or future claims of ownership rights for the tracks or facilities it operates. The State will advance $105 million in financial support which will be provided to assist NYRA in emerging from bankruptcy proceedings. This advance will be recouped by future VLT revenues from a new VLT facility at Aqueduct. In addition, the bill authorizes the expenditure of up to $250 million for construction of a VLT facility in the event that the State elects to operate the facility itself. These funds would also be recouped by future VLT revenues from a new VLT facility at Aqueduct.
The State is in negotiations with interested private parties to build and operate the VLT facility at Aqueduct, which would relieve the State of the need to expend State funds for the construction of the facility. The State expects to conclude these negotiations within approximately 30 days. Installation of VLTs at Aqueduct is expected to generate over $300 million annually for education in the State.
The bill also provides increased commissions and capital allowances to racetracks in New York State that operate VLT facilities. A number of these tracks are in financial difficulty and needed the financial relief provided by the increased commission revenue and capital allowances to continue operations. Specifically, the owner of Vernon Downs, which employs over 300 people and closed last week, has stated that the track will reopen as a result of passage of the bill.
Senator Bill Larkin, Chairman of the Senate Committee on Racing, Gaming and Wagering, said: “This agreement lays the foundation for the future of racing in New York State and establishes a framework for gaming opportunities that will generate critical funding for education and local governments. On its own, thoroughbred racing in New York creates 17,000 jobs statewide, and has a $1.4 billion annual impact on the state's economy. In order to ensure the integrity of racing in New York State, this plan creates an important Franchise Oversight Board which will monitor the way the state-owned thoroughbred racetracks are run at Aqueduct, Belmont, and Saratoga. In addition, Local Advisory Boards will be established to gather input from the local communities surrounding the tracks. Overall, this legislation protects localities, future revenue, the racing industry in general and those whose livelihoods depend upon it.”
Assemblyman J. Gary Pretlow, Chairman of the Assembly Racing and Wagering Committee said: “The actions we are taking today will ensure the future of the racing industry in New York State. I am pleased that the long negotiations allowed all sides to work out the finer points and bring forward legislation which will make New York’s racing industry operations more open, transparent and accountable. The agreement reached today protects the industry, labor and the more than 40,000 employees across the state. This newly-reconstructed board successfully brings all of the stakeholders to the table.”
Senator Serphin R. Maltese said: “From the beginning, I have been opposed to any agreement that would have led to the sale of Aqueduct Racetrack. I am pleased that this agreement not only protects, but enhances racing at historic Aqueduct and mandates that the surrounding community is included in decision making.”
Assemblywoman Audrey Pheffer said: “Protecting and maintaining Aqueduct has always been a very important part of these negotiations. We were able to recognize the varied interests of our community and the employees of Aqueduct Racetrack. For the residents of my district, our concerns about maintaining our amenities and strong sense of community have been addressed through this agreement.”
Although this bill does not directly address the issue of New York State’s Off-Track Betting organizations, the Governor and legislative leaders have agreed to address issues affecting the OTBs before the end of this legislative session.
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