N.Y. PML Law § 404

§ 404. Right to hold quarter horse race meetings and races. Any\ncorporation formed under the provisions of the pari-mutuel revenue law,\nand any corporation and association that shall have conducted quarter\nhorse race meetings during two years prior to the enactment of the\npari-mutuel revenue law, and any town or county fair association or\nother fair association shall have the power and the right to hold one or\nmore quarter horse race meetings in each year and to hold, maintain and\nconduct quarter horse races at such meetings. At such quarter horse race\nmeetings the corporation or association, or the owners of horses engaged\nin such races, or others who are not participants in the race, may\ncontribute purses, prizes, premiums or stakes to be contested for, but\nno person or persons other than the owner or owners of a horse or horses\ncontesting in a race shall have any pecuniary interest in a purse,\nprize, premium or stake contested for in such race, or be entitled to or\nreceive any portion thereof after such race is finished, and the whole\nof such purse, prize, premium or stake shall be allotted in accordance\nwith the terms and conditions of such race. Such power and right,\nhowever, shall not include the right to conduct pari-mutuel betting at\nsuch quarter horse race meetings except pursuant to license granted by\nthe commission pursuant to sections two hundred twenty-two through seven\nhundred five of this chapter.\n