New York Laws
Article 9 - Miscellaneous
905 - Combination of New York Wagers With Wagers Made in Other States or Foreign Countries.

(i) All New York state and out-of-state and foreign wagers of the same
type shall be combined into single pools for calculation.
(ii) As many tentative payout prices as there are different retention
and breakage rates applicable (including the prevailing New York rate)
shall be calculated on the basis of returning the appropriate rate of
return, less breaks after imposition of each such rate of retention and
breaks.
(iii) To each such out-of-state or foreign operator shall be allocated
an amount sufficient for it to pay the appropriate pay-off to holders of
winning wagers placed with it together with the applicable retention
amount on its total wagers.
(iv) To each New York operator shall be allocated an amount sufficient
for it to pay the appropriate pay-off to holders of winning wagers
placed with it together with the applicable New York retention amount on
its total wagers.
(v) The total amount of the combined pool less the combined total of
all allocations as determined in subparagraphs (iii) and (iv) of this
paragraph shall be credited to a special breakage account. The amount in
such account giving appropriate weight to rates established for breakage
shall be allocated as breaks among all operators in the combined pool in
accordance with the rules and regulations of the commission. Should a
minus pool eventuate in which the total combined pool is insufficient to
reimburse each operator for the allocation due to it then the allocation
due to each such operator shall be reduced as may be appropriate and
such operator shall be responsible for satisfying its liability from its
own operating capital.
d. No tax or surcharge shall be imposed by this state on any
out-of-state or foreign wagering operator participating in any combined
pool herein. Nothing in this paragraph, however, shall impair the
imposition of any tax or charge by this state on the consideration
received from an out-of-state or foreign operator by a New York operator
for its consent to wagering on its races, transmitting the simulcast
thereof, or the agreeing to combination of bets into its pools.
e. The operator of the site of the statewide interface shall be
responsible for the actual collection or transmittal of funds in
settlement of the liabilities of all operators participating in the
combined pool.
f. Nothing herein shall entitle any operator or person claiming
therefrom to participation in any share of the retention or payouts
allocated to another operator participating in the combined pool.
g. Nothing herein shall affect the validity of any surcharge imposed
upon the winning pay-offs computed herein as may be prescribed by the
laws of this state or another state or foreign country.
h. Nothing herein shall be construed to authorize or prescribe any act
contrary to federal law.
3. Combining New York wagers on horse races conducted in other states
or foreign countries with wagers on such races made elsewhere.
a. The commission may authorize the combination of wagers made in New
York state upon the outcome of out-of-state or foreign horse races with
wagers made upon such races elsewhere in accordance with rules and

regulations of the commission which shall include but not be limited to
the following provisions:
(i) that if such combination is authorized that all New York state
operators must participate therein to assure uniform New York odds and
pay-outs;
(ii) that if the out-of-state or foreign computation is made on the
basis of different retention or breakage rates and (A) such out-of-state
or foreign laws do not permit New York wagers to be computed in
accordance with New York retention and breakage rates, that such
variation does not exceed twenty percent and shall be allocated pro rata
among winning wagers in New York state and recipients of such retention
and breakage rates in New York state, or (B) if such out-of-state or
foreign laws do permit New York bets to be computed in accordance with
New York retention and breakage rates that such rates shall be applied
and that the out-of-state or foreign operator doing such calculations is
willing and able to properly perform such function;
(iii) that the out-of-state or foreign rules governing such wagers are
understandable to New York wagerers and in the best judgment of the
commission shall not deviate substantially from customary and standard
pari-mutuel practice in general;
(iv) that the New York operators are able to perform such transmission
and computer retrieval functions as may be required;
(v) that such combination will enhance the best interest of racing
generally; and
(vi) such other rules and regulations as may be deemed necessary and
appropriate by the commission.
b. Nothing herein shall be construed to authorize or prescribe any act
contrary to federal law.
4. In those instances in which the retention rates of the out-of-state
track are different from the retention rates authorized in this section,
distribution to each of the entities entitled to receive payment under
section five hundred twenty-seven or article ten of this chapter after
payment of state taxes and regulatory fees shall be adjusted
proportionately in an appropriate manner to account for higher or lower
retention rates. For purposes of determining payment on out-of-state
wagers the retention rate shall be the amount sufficient to pay holders
of winning wagers plus any payments required to be made to the
out-of-state track which exceeds two per centum of handle.