NEW YORK STATE SENATE
MEMORANDUM IN SUPPORT OF LEGISLATION
Submitted In Accordance with Senate Rule VI, #1
SENATE NO: 4174 SPONSOR:
William J. Larkin, Jr.
TITLE OF BILL:
AN ACT to amend the business corporation law, in relation to requiring
any foreign corporation providing gambling or wagering over the Internet
to be authorized to do business In this state,
PURPOSE OF BILL:
Requires foreign corporations providing gambling or wagering over the
internet to file for authorization to do business in this state with the
secretary of state.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill adds a new paragraph a-1 to section 1301 of the
Business Corporation Law which would require a foreign corporation
providing gambling or wagering services in this state to register with
the Department of State.
Section 2 provides for the effective date.
As of the date of drafting this memorandum (4/3/97), approximately 16
companies offer interactive wagering programs on the internet. All
of these companies are situated in foreign counties (le: Grenada, Anguilla
and St. Kitts to mention a few) and market their services to New York State
This bill would require Internet gambling companies to register as a
foreign corporation doing business in New York so that residents of this
State may easily reach such corporations for service of process.
This act shall take effect on the 19th day after it shall have become