Friday, January 13, 2012
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STATEMENT REGARDING NYRA’S ADVANCED DEPOSIT WAGERING ACCOUNT FUNDING PRACTICES
OZONE PARK, N.Y. – The following is a response to the letter sent by Robert L. Megna, Chairman of the New York State Franchise Oversight Board, to New York State Racing and Wagering Board (NYSRWB) Chairman John Sabini, dated January 11, 2012, in regards to The New York Racing Association, Inc’s (NYRA) policies on its advanced deposit wagering account funding practices:
The funding policies for NYRA’s advanced deposit wagering program (NYRA Rewards) are in compliance with the law and pursuant to the procedures approved by the New York State Racing and Wagering Board. We refute any allegations that suggest otherwise, and stand by our advanced deposit wagering account funding practices. NYRA welcomes a review of our advanced deposit wagering account funding practices by the NYSRWB.
NYRA Rewards allows customers to make immediate deposits into their accounts of up to $1,000 per week via an electronic funds transfer, referred to as Express Funding. In order to be eligible for Express Funding, a customer must pass a negative check screening process conducted in accordance with financial industry standards using the latest technology available in the marketplace. NYRA screens all of its existing customers and all new customers for eligibility on each request transaction. This process was approved by the NYSRWB on February 26, 2008, and has been in place and followed by NYRA since.
Mr. Megna’s letter asks the NYSRWB to determine whether NYRA has extended credit for any wagering by customers in violation of the Racing, Pari-Mutuel Wagering, and Breeding law. If a customer makes an Express Funding deposit to NYRA with insufficient funds to cover the deposit, NYRA has not extended credit. Rather, the person making the deposit has committed a crime and NYRA has been the victim of fraud. If this occurs, NYRA rigorously pursues recompense from the customer and bank.
Furthermore, NYRA Rewards Express Funding is consistent with industry practices for advanced deposit wagering funding policies. Virtually all industry advanced deposit wagering programs, both within the State of
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