NYRA Wagers: Corrected Payout Reimbursement Policy and Procedure

PURPOSE

Further to and regarding NYS Racing and Wagering Board (“RWB”) directive of

December 21, 2011, this document sets forth both policy & procedure for remediating and addressing reimbursement for account wagering (telephone and internet wagering) OTB customers, holders of qualifying un-cashed winning tickets (“OUTS ticket”), and other customers who can be identified through Account Wagering (“ADW”) and IRS reporting (collectively the “Customer”), within the time frame (from September 15, 2010 through December 18, 2011) directed by RWB based on New York Racing Association (“NYRA”) improperly charging a takeout rate of 26 percent -- 1 percentage point higher than allowed by law -- on the following exotic wagers: Trifecta, Pick 3, Pick 4, Grand Slam and Superfecta wagers.

Methods to request a credit for reimbursement for account wagering OTB customers, and other customers who can be identified through IRS reporting, or the bearer of an unexpired qualifying un-cashed winning ticket (by credit to account holders ADW account and for non-ADW account holder by a voucher), are noted in the below Policies. 

POLICY #1– and for all affected Suffolk OTB account wagering and W2G winning bettors/customers to submit a claim for reimbursement for correct payout                                                                                          

1.  On or after January 10, 2012 Suffolk OTB shall publish information on the claim procedure on the OTB website, telephone hold message, and post informational posters at all branches and Teletheaters. 

            a.  During the period September 15, 2010 through December 18, 2011, the New York Racing Association erroneously withheld an extra 1% from exotic wagering pools.  As a result, certain exotic payoffs were less than required (Trifecta, Pick 3, Pick 4, Grand Slam and  Superfecta wagers). Any customer with uncashed exotic winning wagers (Trifecta, Pick 3, Pick 4, Grand Slam and  Superfecta wagers) or paid winning exotic wagers (Trifecta, Pick 3, Pick 4, Grand Slam and Superfecta wagers) on NYRA racing from September 15, 2010 through December 12, 2011 that were placed via account wagering or were subject to IRS reporting requirements should complete and submit a claim for reimbursement of recalculated payoffs (“NYRA  Takeout Claim Form”).  Further information is available at the Suffolk OTB website, branch and teletheater locations or through Suffolk OTB Customer Service.

 2.  On or after February 17, 2012 (or such later date as NYRA provides to Suffolk OTB the recalculated payoffs), Suffolk OTB shall notify each identified affected Customer (a Customer who has submitted a NYRA Takeout Claim Form) of their potential claim. Such notice shall be in writing either by mail, or if email address is available, by electronic means.

3.  Credits are not automatic.  Customer must request their credit in writing and by filing a NYRA Takeout Claim Form and submitting such to the Suffolk OTB Customer Service Office. Most credits will be processed within ten (10) business days of receipt of such NYRA Takeout Claim Form but in no event later than March 30, 2012. Any unexpired qualifying un-cashed winning tickets submitted for payment shall be paid only after recalculated payoffs.

PROCEDURE

Account Wagering customers have access to account activity through website or a request of customer service to review wagering activity for NYRA exotic winning wagers as evidence to submit a claim. W-2G winning customers may request and will receive a copy of their W2G through a request of customer service as evidence to submit a claim.

1.      Pick up a NYRA Takeout Claim Form from the respective Suffolk OTB Branch, Teletheater or Customer Service Office OR

2.      Download and complete the NYRA Takeout Claim Form and mail or deliver to the Suffolk OTB Customer Service Office. OR

3.      Send a letter addressed to the Suffolk OTB Customer Service Office (5 Davids Drive, Hauppauge, NY 11788) to be received by Suffolk OTB  no later than March 1, 2012.

The NYRA Takeout Claim Form shall be in writing and shall contain all of the following:

1.  Requestor’s name;

2.  Requestor’s address;

3.  Requestor’s email address;

4.  Requestor’s telephone number;

5.  Requestor’s Social Security Number (if the amount generates IRS reporting);

6.  If the Requestor is an ADW accountholder, ID number;

7.  Requestor’s signature

Each completed NYRA Takeout Claim Form must be received by Suffolk OTB no later than 5pm on March 15, 2012 or the claim shall be considered barred.

1.  Customer Service shall receive and investigate all inquiries and claims for payment/reimbursement in accordance with this policy.

2.  All claims must be verified with W-2G reports and/or Account Wagering reports

3.  Customer Service shall recalculate all winning claims in accordance with NYRA recalculated payoffs to be provided by February 17, 2012 (or such later date as NYRA provides to Suffolk OTB the recalculated payoffs)

            a.  Customer Service shall authorize valid claims for payment

            b.  Customer Service shall issue a check request or account adjustment for claims. 

4.  Auditing shall review and approve all check requests and account adjustments prior to payment.

5.  All check requests and account adjustments shall be issued no later than March 30, 2012 and in accordance with Corporate Policy. 

POLICY #2– how Suffolk OTB will pay the bearer of an unexpired qualifying un-cashed winning ticket (“OUTS”) ticket until such time as the correct payoff amount is calculated by February 17, 2012

PROCEDURE

1.  On or before January 10, 2012, Suffolk OTB will instruct its tote provider to identify and claim all affected (“OUTS”) uncashed tickets for Trifecta, Pick 3, Pick 4, Grand Slam and Superfecta exotic wagers placed on NYRA races between September 15, 2010 and December 18, 2011.

2.  Upon presentation of any affected OUTS tickets, which will be identified based on the above, the Customer will:

            a.  Be paid the pre re-calculated payout amount; and

            b.  Complete the NYRA Takeout Claim Form for additional payment upon re-calculation of pools.

3.  Any amount to be credited to the Customer via re-calculated winnings following re- calculations of the winning pools shall be either credited to the Customer’s ADW account or issued via check to the Customer’s address on the NYRA Takeout Claim Form on or before March 30, 2012.

4.  Each completed NYRA Takeout Claim Form must be received by Suffolk OTB  no later than 5pm on March 15, 2012 or the claim shall be considered barred.

The above policies and procedures are with full reservation of all rights and remedies afforded to Suffolk OTB to challenge, contest and/or object to RWB’s directions.  Nothing contained herein shall be construed as an admission or concession that the costs incurred to implement these policies and procedures should be borne by Suffolk OTB as it is our position that NYRA shall pay all expenses incurred.