§ 109-b. Rebates. 1. For the purposes of this section, "rebate" shall mean a portion of pari-mutuel wagers, otherwise payable to an entity conducting pari-mutuel betting, that is paid to holders of pari-mutuel wagering tickets and that reduces the amount otherwise payable to such entity, including, but not limited to, refunds to holders of pari-mutuel wagering tickets of any portion or percentage of the full face value of a pari-mutuel wager, paying a bonus on a winning pari-mutuel ticket, awards of merchandise, services such as meals, parking, admission, seating and programs, free or reduced cost pari-mutuel wagers, monetary awards, or any other benefit that the state gaming commission deems appropriate to reward horse racing patrons for their patronage at race meetings.

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2. The state gaming commission, upon application of an entity authorized to conduct pari-mutuel betting, may approve the payment of rebates by such entity for a rebate program, subject to the following requirements:

a. the applicant discloses the extent of the rebate program. Such disclosure shall include a listing of the monetary value of all rebates paid to bettors during the previous calendar year, and the terms and conditions governing the award of rebates to bettors;

b. the applicant provides assurances that the values of the rebates are determined solely by (i) attendance at one or more race meetings, (ii) the amount wagered by a bettor, (iii) the amount payable to the entity on each wager, or (iv) how frequently a bettor wagers;

c. the entity maintains records of all wagers subject to a rebate, for a period of not less than three years; and

d. the applicant demonstrates that such rebates are in the best interests of horse racing.