Internet gambling on horse races would become legal under a measure given final approval by the New York state Legislature.

The bill popped out during the final days of the Legislature's 2006 session that, with the looming fight over the New York Racing Association franchise, has been strangely devoid of major racing-related measures. Another bill working through the legislative houses that is raising eyebrows would permit owners of harness tracks to race horses at their own facilities – a prohibition enacted in New York in 1974 over conflict-of-interest concerns.

The internet wagering bill received final approval late on June 20. Pushed heavily by New York City Off Track Betting Corp., the legislation amends current New York law that permits residents to open telephone wagering accounts at OTBs and racetracks. The new measure adds cell phones and the Internet to the ways in which bettors can wager on horse races.

Proponents say the measure merely keeps up with modern communication advances that were not envisioned when the current telephone account wagering law was adopted in 1980. The measure, which still needs approval from Gov. George Pataki, would be in effect until June 30, 2009.

The legislation requires that all protections now in place with telephone wagering be extended to the Internet, such as banning bets paid for by credit card. The measure only permits in-state wagering.

"This bill should help to reduce the cost of placing a bet because the transaction cost of placing a bet over the Internet to a New York race track or OTB is much lower than placing a bet via a telephone that is answered by an OTB consumer representative,'' states a legislative memo in support of the measure. "The reduction in the transaction costs will allow race track facilities and OTBs to earn greater profits and to pay more money to winning bettors and to support the operation of state and local governments.''

Meanwhile, the harness track measure has been approved by the state Senate, but not the Assembly. New York officials – concerned about racetrack corruption issues – in the 1970s included a prohibition from track owners or officials to race their horses at facilities they own or supervise.

The new legislation would relax the ban on individuals who are corporate officers, directors, and executives at harness tracks from running their own horses in races at the facilities. The measure comes shortly after the opening of Tioga Downs in upstate New York, whose principles include harness horse owners.

"Many of horse racing's most prominent owners are people who do not merely take a spectators role in the industry. These people have worked in the industry for years and have developed a love for the sport. If afforded the chance, many owners would cherish the opportunity to enter horses into races and participate first hand,'' states a legislative memo in support of the measure.

"I am glad that both houses have passed a bill that brings the law in line with what racing fans and most industry players agree must be part of the future of racing,'' said New York City OTB Chairman Raymond V. Casey. "OTB has always been about delivering convenience to its players, and we hope this bill becomes law and we can continue to do that in a modern manner.''

"This bill only recognizes that telecommunications convergence is real and is here,'' he added.

Courtesy of: news.bloodhorse.com