NY A42001

Creates the New York Racing Network, Inc., a corporation to be incorporated by the franchised corporation, thoroughbred racing corporations, and harness racing corporations to conduct off-track pari-mutuel wagering and display simulcast horse races including internet video streaming.

Transfers ownership of all telephone betting and telephone wagering accounts from the New York City Off-Track Betting Corporation to the New York Racing Network, Inc., and permits the corporation to affiliate only with the Racing Network for telephone and internet wagering.

Reduces the New York City Off-Track Betting Corporation's payments to in-state tracks on out-of-state wagers by 50% in the first fiscal year, declining to 20% in subsequent years, with reductions phasing out if annual handle exceeds $620 million.

Reduces pari-mutuel tax payments by the Off-Track Betting Corporation by 50%, with reductions declining based on annual handle levels, from 42.5% down to 0% as handle increases from $600 million to over $640 million.

Authorizes video lottery facility operators to offer subsidized free play credits equal to 7.5-10% of total wagered amounts (depending on track type), which are excluded from revenue calculations for vendor fees and racing support payments.