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SYRACUSE OPTION SYSTEM ILLEGAL « Attorney General of New York Renders Opinion Declaring Method Now in Use Clear Violation of the Penal Law — Herbert Swope Issues Statement ♦ ALBANY, N. Y., July 11. — The system of optional betting now being conducted by the Onondaga Racing Association at Syracuse is a violation of the penal law, according to an opinion rendered today by Attorney General John J. Bennett, Jr., upon the request of chairman Herbert Bayard Swope of the New York State Racing Commission. The opinion states that a portion of the grounds has been set aside and for the purpose of selling of "options" at prices of and for first, second or third place on particular horses in each race. "The evidence of the purchase of such an option is a receipt issued by the Onondaga Racing Association, Inc., showing the price paid, the number of horse and whether for first, second or third place. "As presently conducted, I understand that the association upon the close of the betting on each race, makes a compilation of the total amount of money taken in at the windows upon all the horses in the race, retains 10 per cent thereof for itself and apportions the remainder to be divided among the holders of options upon the horses finishing first, second or third in that race. Upon the amount of money placed at option, or, in reality, pooled or wagered upon such horses, depend the odds, or the amount at which the association will redeem the options. "The whole scheme is a thinly disguised system of pari-mutuel betting and, as such, violates the provisions of the state constitution article I, section 9 and section 986 of the penal law, which make pool selling a criminal offense. "It is my opinion, therefore, that the option system of betting under consideration violates the provisions of section 986 of the penal law, which makes it a misdemeanor for any person to engage in pool selling. "Without any question, the legislature has vested the State Racing Commission with broad and extensive power to supervise and regulate horse racing in this state. "I note from your letter that the Onondaga Racing Association, Inc., has not fully complied with the conditions upon which the commission granted it a license to conduct the present meeting. If that be so, or if the commission finds, upon satisfactory Continued on seventeenth page. SYRACUSE OPTIONS ILLEGAL Continued from first page. evidence, that the continuance of the license of the Onondaga Racing Association, Inc., shall not be deemed conducive to the interests of legitimate racing, the commission may cancel and revoke its license. However, under the terms of the statute, I think that such action should be taken only as the result of a hearing before the commission upon five days notice to the licensee." NEW YORK, N. Y., July 11.— Herbert Bayard Swope. chairman of the New York Racing Commission, issued the following statement today after learning of Attorney-General John J. Bennett, Jr.s ruling on the option system of betting employed by the Onondaga Racing Association at its current meeting at Syracuse: "As soon as the official text is received a further statement will be made. I have heard unofficially that the attorney-general has found the option system at Syracuse illegal. When the commission receives the text of the ruling we shall act. I am glad that the attorney-general has reached this conclusion for it will enable us to keep racing clean along the lines that have been ! followed since spring." I * , — ,
