N.Y. Comp. Codes R. & Regs. tit. 9, § 4410.4 – Off-track pick three pool conducted solely off-track.

(a) When approved by the commission after filing of the required written consent of the track affected, an off-track betting pool designated a pick three pool may be conducted by one or a combination of off-track betting corporations in a single off-track pool, which pool is not combined with any pool at a track.
(b) The pick three (or other approved name) is a form of pari-mutuel wagering conducted by an off-track betting corporation on three consecutive races run at any track, specifically designated as the pick three races by the commission. Each bettor selects, in order, the first placed horse in each of the three races designated and advertised by the corporation as the pick three races, in the order so designated by the commission.
(c) The pick three is not a parlay and has no connection with nor relation to the other betting pools for the respective races. The pick three pool shall be held entirely separate from all other pools and is no part of a daily double, exacta, triple or other wagering pool.
(d) Resale of pick three tickets from one individual to another is prohibited, shall be grounds for ejection, and may be deemed illegal gambling.
(e) Races in which pick three pools shall be conducted shall be approved by the commission and shall be clearly designated in the program and racing cards issued by the corporation.
(f) The design of the pick three tickets shall be clearly and immediately distinguishable from other pari-mutuel tickets.
1. (1) If a horse is scratched or declared a nonstarter in any of the three races designated as the pick three races before the running of the first of those races, no further pick three tickets may be issued designating such horse and all pick three tickets previously issued designating such horse shall be refunded and the money deducted from the gross pool.
2. (2) Should any horse be scratched or declared a nonstarter in any race of the designated pick three races, the race in which the late scratch has occurred will be declared “no race” for purposes of the pick three pool only, and the net pools shall be distributed equally to the holders of tickets who have designated the winners of the remaining pick three races.
  (h) Failure to select winning combination.
3. (1) If no pick three ticket is sold combining the winners of the three races, all pick three tickets designating two winners shall be considered winning tickets and the net pool distributed equally to holders of said tickets.
4. (2) If no pick three ticket is sold combining the winners of either three or two races of the pick three races, all pick three tickets designating one winner shall be considered winning tickets and the net pool distributed equally to holders of said tickets.
5. (3) If no pick three ticket is sold designating any winner to win in the designated pick three races, the pick three shall be declared off and the gross pool refunded.
6. (4) If any of the designated races are cancelled or declared “no race,” the pick three will be determined by the winners of the remaining race or races.
  (i) Dead heats.
  In the event of a dead heat for win in any or all pick three races, all pick three tickets designating either horse to win in said race or races shall be eligible for participation in the remaining pick three races, and the net pool shall be equally distributed to the winners, that is, the net pool will be divided by the total amount represented by all winning tickets and the resulting price, per dollar, and after breakage, shall be the payoff price, which shall be uniform for any winning combination.
(g) Scratch.
(j) In the event of occurrences not encompassed with the explicit provisions of this Part, distribution shall be formulated on the basis of established pari-mutuel practice and in accordance with the distribution philosophy set forth in this section; provided, nevertheless, that if full distribution of the pool is made on the basis of outstanding tickets, the method of formulation announced by the corporation and upon which basis payments have been made shall be deemed conclusively correct and not subject to review.
(k) Copies of this section shall be made available free of charge to the public in each betting facility of the corporation.
(l) Placing of horses shall follow the official placing for betting purposes at the track and such placing shall be conclusive for distribution purposes herein.