Brian Conley

The Commission discussed several key items, including the status of commercial casino licensing and the remittance of license fees. Updates were provided regarding Governor Hochul's state of the state address and the 2027 fiscal budget proposal, focusing on curbing illegal gambling access for youth, implementing biometric controls, and addressing gambling addiction. The Commission also reviewed and adopted legislative proposals concerning pari-mutuel tax laws, capital acquisition funds, and racing employee licensing. Additionally, rules were adopted for various lottery games, including the consolidation of rules for general applicability, the introduction of a new 'Millionaire for Life' draw game, and measures to mitigate risks associated with bulk purchase attempts in lottery games.

The Commission discussed the status of the downstate casino licensing process, including fee remittances and completion bond requirements. The Executive Director provided updates on the Governor's State of the State address, which included directives for implementing biometric safeguards to prevent youth access to betting apps and new tools for identifying gambling addiction. The Commission also reviewed and adopted several lottery rule amendments, including consolidation of game play language, conforming amendments for various lottery games, and the repeal of discontinued games. Additionally, the Commission considered a new multi-jurisdictional draw game, addressed bulk ticket purchase risks, proposed new Powerball features, and discussed regulatory matters regarding professional sports wagering and third-party monitor requirements for commercial casino licensees.

The Commission meeting focused on several regulatory updates and legislative matters. The Executive Director provided updates on the Resorts World commercial casino development, including construction, licensing, and installation progress, as well as an update on the state budget process, specifically related to parimutuel tax law amendments and horse racing regulations. The Commission discussed Problem Gambling Awareness Month, with a focus on implementing stricter controls to prevent underage gambling, including biometric age verification for betting applications. There was also a significant discussion regarding prediction markets, the failure of federal-level regulation in that area, and the Commission's ongoing efforts to differentiate state-regulated gaming. Finally, the commission addressed concerns regarding proposition betting and the lack of substantive responses from various sports leagues regarding manipulation risks.

The agenda for the meeting included the establishment of a quorum and the report of the Executive Director, who provided updates on downstate casino licensing, including fee remittance and bond submissions. The Executive Director also detailed Governor Hochul's directives regarding restricting youth access to betting apps, possibly using biometrics, and curbing gambling addiction through technology utilization. The Commission addressed several rulemaking items, including the adoption of amendments to consolidate and conform various Lottery Rules, the repeal of the discontinued Monopoly Millionaires' Club game, and the adoption of new rules for the Millionaire for Life lottery game and rules mitigating bulk ticket purchases. Further proposals covered adding a Powerball Double Play feature and repealing the Cash 4 Life draw game. New business included setting the competition bond for the additional casino licensee, directing staff to communicate with leagues regarding professional sports proposition wagers, discussing concerns triggering third-party monitor requirements for licensees, and reviewing McCann's planned campaigns.

The meeting convened following the establishment of the New York State Franchise Oversight Board, consisting of five members, requiring three for a quorum. Discussions included noting the resignation of a long-serving member. Key business involved the adoption of previous minutes and the decision to dispense with the quarterly financial results review in favor of focusing on the 2026 proposed operating budget and capital expense plan reviews, as required by law. The budget review highlighted that 2026 is a transition year with frontloaded investment for the new Belmont facility, projecting a $7 million loss primarily due to capturing $13 million in new expenses without offsetting revenue until 2027. Significant discussion focused on revenue projections, specifically a $13 million decrease in on-track revenue due to a tax law change affecting high-value players, which is partially offset by anticipated growth in export wagering. Labor and operating expenses showed increases related to the New Belmont project. Furthermore, the board discussed updates to race days, moving from 190 to a proposed 196, and a detailed plan to address Computer Assisted Wagering (CAW) volatility by implementing volume caps one minute before post time and developing volatility metrics in conjunction with the TRPB. Finally, the closure of live racing at Aqueduct on June 28, 2026, was noted, with plans for commemorative TV coverage and a final day party.