Bill to Require Registration

19 March 1998
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.

JUSTIFICATION:

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 residents.

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.
 

EFFECTIVE DATE:

This act shall take effect on the 19th day after it shall have become a law.