§ 1617-a. Video lottery gaming. a. The gaming commission is hereby authorized to license, pursuant to rules and regulations to be promulgated by the gaming commission, the operation of video lottery gaming at;

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(1) Aqueduct, Monticello, Yonkers, Finger Lakes, and Vernon Downs racetracks;

(2) any other racetrack licensed pursuant to article three of the racing, pari-mutuel wagering and breeding law located in a county or counties in which video lottery gaming has been authorized pursuant to local law, excluding the licensed racetrack commonly referred to in article three of the racing, pari-mutuel wagering and breeding law as the "New York state exposition" held in Onondaga county and the racetracks of the non-profit racing association known as Belmont Park racetrack and the Saratoga thoroughbred racetrack;

(3) a maximum of two facilities, which shall be vendors for all purposes under this article established within region three of zone one as defined by section one thousand three hundred ten of the racing, pari-mutuel wagering and breeding law, one each operated by a corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Suffolk region and the Nassau region to be located within a facility authorized pursuant to sections one thousand eight or one thousand nine of the racing, pari-mutuel wagering and breeding law, provided however, that in the Nassau region such facility shall not exceed one thousand video lottery gaming devices and in the Suffolk region such facility shall not exceed two thousand video lottery gaming devices; and

(4) Aqueduct racetrack, within the lottery terminal facility, pursuant to an agreement between the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region and the operator of video lottery gaming at Aqueduct racetrack, when such agreement is approved by the gaming commission and as long as such agreement is in place, and when such agreement is accompanied by a detailed spending plan for the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region, which includes a plan for the timely payment of liabilities due to the franchised corporation, and when such video lottery devices are hosted by the operator of video lottery gaming at Aqueduct racetrack on behalf of the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region in lieu of the development of a facility in Nassau county as authorized by paragraph three of subdivision a of this section. Such agreement reached by the parties shall identify the agency principally responsible for funding, approving or undertaking any actions of such agreement. Provided, however, nothing in this paragraph shall infringe upon the rights of the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region to develop a facility pursuant to paragraph three of this subdivision upon the expiration, termination, or withdrawal of such agreement.

(5) At a facility located in Orange county to be operated by the entity otherwise licensed to operate video lottery gaming at Monticello racetrack, provided that: (i) such licensed entity is no longer operating video lottery gaming at Monticello racetrack and provided that Monticello racetrack is conducting racing operations; (ii) such facility in Orange county is not sited within a thirty mile radius of the video lottery gaming facility at Yonkers racetrack; and (iii) the licensed entity, its subsidiaries and affiliates, including the entity licensed to operate a commercial gaming facility in Sullivan county, and the entity licensed to operate video lottery gaming at Yonkers racetrack enter into a mitigation agreement, to be approved by the gaming commission, which shall include, but not be limited to, terms that require: (A) the operator of the facility in Orange county to make an annual payment to the entity licensed to operate video lottery gaming or commercial gaming at Yonkers racetrack to account for the effects that siting such facility in Orange county would likely have on the gross gaming revenue of the entity licensed to operate at Yonkers racetrack; (B) employment levels at the affected facilities; and (C) that upon expiration or termination of the agreement, the authority to operate video lottery gaming in Orange county shall cease. Notwithstanding any other provision of this subdivision, at no time shall an entity operating video lottery gaming in Orange county be permitted to apply for or receive a license to operate a commercial gaming facility in that county.

(6) Notwithstanding any other provision of law to the contrary, as a condition of the license to operate a video lottery gaming facility located in Orange county, such operator shall provide an annual certification to the New York state gaming commission that the staffing levels at a commercial gaming facility located in zone two, region one pursuant to section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law (or any successor commercial gaming facility located in said region) are no less than one thousand four hundred seventy-three full-time, permanent employees. In furtherance of and without limiting the foregoing, the licensee for the commercial gaming facility located in zone two, region one pursuant to section thirteen hundred ten of the racing, pari-mutuel wagering and breeding law (or any successor commercial gaming facility located in such region) shall not conduct any mass, involuntary layoff events that would trigger worker adjustment and retraining notification (WARN) act notifications pursuant to Article 25-A of the labor law or otherwise result in the employment levels at such facility dropping below levels mandated by this section. For purposes of this section, "full-time, permanent employee" shall mean an employee who has worked at the facility for a minimum of thirty-five hours per week for not less than four consecutive weeks and who is entitled to receive the usual and customary fringe benefits extended to other employees with comparable rank and duties; or two part-time employees who have worked at the facility for a combined minimum of thirty-five hours per week for not less than four consecutive weeks and who are entitled to receive the usual and customary fringe benefits extended to other employees with comparable rank and duties.

(7) The village of Monticello, Sullivan county, the town of Thompson, Sullivan county, and Sullivan county shall continue to receive assistance payments made pursuant to § 54-l of the state finance law.

b. Such rules and regulations shall provide, as a condition of licensure, that racetracks to be licensed are certified to be in compliance with all state and local fire and safety codes, that the gaming commission is afforded adequate space, infrastructure, and amenities consistent with industry standards for such video lottery gaming operations as found at racetracks in other states, that racetrack employees involved in the operation of video lottery gaming pursuant to this section are licensed by the gaming commission and such other terms and conditions of licensure as the gaming commission may establish. Notwithstanding any inconsistent provision of law, video lottery gaming at a racetrack pursuant to this section shall be deemed an approved activity for such racetrack under the relevant city, county, town, or village land use or zoning ordinances, rules, or regulations. No entity licensed by the gaming commission operating video lottery gaming pursuant to this section may house such gaming activity in a structure deemed or approved by the division as "temporary" for a duration of longer than eighteen-months. Nothing in this section shall prohibit the gaming commission from licensing an entity to operate video lottery gaming at an existing racetrack as authorized in this subdivision whether or not a different entity is licensed to conduct horse racing and pari-mutuel wagering at such racetrack pursuant to article two or three of the racing, pari-mutuel wagering and breeding law.

The gaming commission shall establish standards for approval of the temporary and permanent physical layout and construction of any facility or building devoted to a video lottery gaming operation. In reviewing such application for the construction or reconstruction of facilities related or devoted to the operation or housing of video lottery gaming operations, the gaming commission shall ensure that such facility:

(1) possesses superior consumer amenities and conveniences to encourage and attract the patronage of tourists and other visitors from across the region, state, and nation.

(2) has adequate motor vehicle parking facilities to satisfy patron requirements.

(3) has a physical layout and location that facilitates access to and from the horse racing track portion of such facility to encourage patronage of live horse racing events that are conducted at such track.

c. The terminals authorized pursuant to paragraph four of subdivision a of this section shall:

(i) be deemed as operated by the corporation established pursuant to section five hundred two of the racing, pari-mutuel wagering and breeding law in the Nassau region for the purposes of section sixteen hundred twelve of this chapter and the distributions therefrom made as if the video lottery devices were located in Nassau county;

(ii) consist exclusively of electronic table games, unless otherwise approved by the gaming commission and the director of the division of the budget; and

(iii) be individually designated as hosted.

d. Notwithstanding any law, rule or regulation to the contrary, absent the enactment of sufficient alternative revenue sources for the franchised corporation in a chapter of law providing a statutory plan for the prospective not-for-profit governing structure of The New York Racing Association, Inc., any agreement for the operation of terminals authorized pursuant to paragraph four of subdivision a of this section shall require the operator of video lottery gaming at Aqueduct racetrack to maintain racing support for general thoroughbred racing operations and capital expenditures from video lottery gaming at Aqueduct racetrack, at the same level realized in two thousand thirteen, to be adjusted by the consumer price index for all urban consumers, as published annually by the United States department of labor, bureau of labor statistics.

e. Video lottery gaming shall only be permitted for no more than twenty consecutive hours per day and on no day shall such operation be conducted past 6:00 a.m.

f. The gaming commission shall promulgate such rules and regulations as may be necessary for the implementation of video lottery gaming in accordance with the provisions of this section and paragraph five of subdivision a of section sixteen hundred twelve of this article.

g. All workers engaged in the construction, reconstruction, development, rehabilitation, or maintenance of any area for the purpose of the installation, maintenance, or removal of video lottery gaming terminals shall be subject to the provisions of articles eight and nine of the labor law to the extent provided in such articles.

h. The gaming commission shall not approve the construction or alteration of any facility or building devoted to the operation or housing of video lottery gaming until the person or entity selected to operate such video lottery gaming shall have submitted to the gaming commission a statement of the location of the proposed facility or building, together with a plan of such racetrack, and plans of all existing buildings, seating stands and other structures on the grounds of such racetrack, in such form as the gaming commission may prescribe, and such plans shall have been approved by the gaming commission. The gaming commission, at the expense of the applicant, may order such engineering examination thereof as the gaming commission may deem necessary. Such construction or alteration may be made only with the approval of the gaming commission and after examination and inspection of the plans thereof and the issuance of a permit by the gaming commission.

i. (1) The gaming commission may administer a free play allowance program to offer players or prospective players of video lottery games free play credits for the purpose of increasing revenues earned by the video lottery gaming program for the support of education. For the purposes of this subdivision, "free play allowance credit" means a specified dollar amount that (i) may be used by a player to play a video lottery game without paying any other consideration, and (ii) is not used in the calculation of total revenue wagered after payout of prizes.

(2) For each video lottery gaming facility, the gaming commission shall authorize the use of free play allowance credits if the operator of such facility submits a written plan for the use of the free play allowance that the gaming commission determines is designed to increase the amount of revenue earned by video lottery gaming at such facility for the support of education.

(3) For each video lottery facility, the annual value of the free play allowance credits authorized for use by the operator pursuant to this subdivision shall not exceed an amount equal to fifteen percent of the total amount wagered on video lottery games after payout of prizes. The gaming commission shall establish procedures to assure that free play allowance credits do not exceed such amount.

(4) The gaming commission, in conjunction with the director of the budget, may suspend the use of free play allowance credits authorized pursuant to this subdivision whenever they jointly determine that the use of free play allowance credits are not effective in increasing the amount of revenue earned for the support of education, and such use may not be resumed unless the operator of such facility submits a new or revised written plan for the use of the free play allowance that the gaming commission determines is designed more effectively to produce an increase in the amount of revenue earned by video lottery gaming at such facility for the support of education.

(5) Nothing in this subdivision shall be deemed to prohibit the operator of a video lottery facility from offering free play credits to players or prospective players of video lottery games when the value of such free play credits is included in the calculation of the total amount wagered on video lottery games and the total amount wagered after payout of prizes, and the operator of such facility pays the gaming commission the full amount due as the result of such calculations.

(6) The gaming commission may amend the contract with the provider of the central computer system that controls the video lottery network during the term of such contract in effect on the effective date of this subdivision to provide additional consideration to such provider in an amount determined by the gaming commission to be necessary to compensate for (i) processing free play allowance transactions and (ii) system updates and modifications otherwise needed as of such effective date.

j. Every video lottery gaming license, and every renewal license, shall be valid for a period of five years, except that video lottery gaming licenses issued before the effective date of this subdivision shall be for a term expiring on the applicant's next birthday following June thirtieth, two thousand fourteen.

The gaming commission may decline to renew any license after notice and an opportunity for hearing if it determines that:

(1) the licensee has violated section one thousand six hundred seven of this article;

(2) the licensee has violated any rule, regulation or order of the gaming commission;

(3) the applicant or its officers, directors or significant stockholders, as determined by the gaming commission, have been convicted of a crime involving moral turpitude; or

(4) that the character or fitness of the licensee and its officers, directors, and significant stockholders, as determined by the gaming commission is such that the participation of the applicant in video lottery gaming or related activities would be inconsistent with the public interest, convenience or necessity or with the best interests of video lottery gaming generally.

k. The gaming commission, subject to notice and an opportunity for hearing, may revoke, suspend, and condition the license of the video lottery gaming licensee, order the video lottery gaming licensee to terminate the continued appointment, position or employment of officers and directors, or order the video lottery gaming licensee to require significant stockholders to divest themselves of all interests in the video lottery gaming licensee.