The Senate Racing, Gaming and Wagering Committee is chomping at the bit to review critical horse racing legislation this session.

The 10-person committee, headed by Sen. Willliam Larkin (R-Orange/Ulster), expects to see a bill concerning the franchise with the New York Racing Association (NYRA) in the coming weeks, as the Jan. 23 deadline for an interim agreement looms.

But NYRA is only one of many critical topics he expects to take up this year.
“The issues are NYRA, VLTs [video lottery terminals], casinos and the distribution of the profits,” Larkin said, adding later, “We need to make some decision on the OTBs [Off Track Betting].”
Last year was a busy one for the committee, which took the unusual step of holding three committee meetings in public, including one at Belmont Park, as a way to put pressure on the proposal from Gov. Eliot Spitzer (D) to extend NYRA’s racing franchise for 30 years. Republicans were critical of the contract length and of the inclusion of a bailout of the hundreds of millions of dollars of debt the organization has accumulated.

Spitzer has indicated he supports VLTs in Aqueduct but did not include them in the interim agreement for Belmont.

Concerning casinos, Larkin said he wants three gaming licenses that are available for Indian casinos used, but their approval is being held up by the Department of the Interior in Washington.
Finally, New York City Mayor Michael Bloomberg (Unaffil.) wants the OTBs throughout the city to close, arguing that the city would need to subsidize them were they to remain open next year. Any change in the OTB formula would have to be cleared in legislation that would pass through the State Senate committee.

Larkin said he has been in conversations about the NYRA deal with staffers of Spitzer and Senate Majority Leader Joseph Bruno (R-Rensselaer) who are trying to hammer out a final agreement. The committee, as a body, however, is not involved. A final deal, if reached, would be presented to the committee for approval but not much in the way of review.

This is typical in Albany, the ranking Democrat, Sen. John Sabini (D-Queens), said.

“Like most committees in the State Senate, an agenda is handed to you and you vote up or down. There is little discussion or ability to help craft the legislation,” he said.

Albany Law School professor Bennett Liebman said the majority leader, too, has a strong say in any legislation before the committee.

“Because of Sen. Bruno’s interest in horse racing and because he represents Saratoga Springs, Sen. Bruno has considerable influence on all horse racing legislation in the Senate,” he said.

The committee, with six Republicans and four Democrats, is essentially supportive of gaming. Members generally agreed that the proceedings do not tend to get too caught up in partisan arguments.

Liebman said Larkin is considered an amiable legislator who seeks to mediate between interests.

“Much of the industry is engaged in fighting other parts of the industry. What Sen. Larkin does is look to find consensus legislation,” he said.

The politics of the members are defined more by their geography and what tracks and interests they represent, than party, members said.
Sen. Thomas Libous (R-Tioga/Broome/ Chenango) wants the Assembly to pass legislation approved by the Senate that would provide more money to owners of racing-gaming tracks such as Tioga Downs, which is in his district.

That legislation is held up in the Assembly, amid speculation that because Assembly Democrats want to see better terms for the horsemen included.
But Libous said it was not as simple as Democrats supporting the horsemen and Republicans looking out for the track owners.

“Rather than say the committee has political divides, really it’s more we all have our own interests. If you have a track in your district and you are a legislator then you care about that track,” he said. “Does that mean I dislike horsemen? No, I need horsemen to run Tioga Downs.”

Sen. Craig Johnson (D-Nassau), who became the newest member when appointed in December, represents Belmont Park.

He, along with the Republican leadership, was not debating whether VLTs should be installed. His concern was how much revenue should return to the district.
“Before we make a decision, we must make sure the money and revenue generated by the VLTs go back into the Elmont and Floral Park communities,” he said.
Currently, the State Constitution permits games of chance, such as lotteries, VLTs and wagering on horses, but not games of skill, like poker.

Sabini has proposed legislation to permit cash prizes for social games of poker in restaurants and bars. Libous agreed that broader gambling in the state should be explored, despite the stiff competition that idea is getting from neighboring states.

“Maybe Texas Hold ’Em parlors or whatever,” Libous said. “Everything needs to need to be looked at.”