N.Y. Comp. Codes R. & Regs. tit. 9, § 4500.2 – Licensing account wagering.

(a) An account wagering licensee may offer a system of account wagering in which wagers and withdrawals are debited and winning payoffs and deposits are credited to an account held by an account wagering licensee on behalf of an account holder provided:
1. (1) prior commission approval is granted for the account wagering system, which shall be conducted in accordance with a written plan of operation submitted by such licensee and approved by the commission. Such plan of operation shall include, at a minimum:
  1. (i) systems of processing wagers;
  2. (ii) internal controls for account wagering;
  3. (iii) appropriate totalisator and accounting contracts that safeguard the transmission of wagering data;
  4. (iv) a plan for system security that includes but is not limited to the use of access encryption and firewalls;
  5. (v) account wagering rules; and
  6. (vi) a plan for a recording for each transaction on a system separate from the totalisator system;
2. (2) accounts are restricted for wagering and related purposes only; and
3. (3) the commission has duly licensed the account wagering provider.
(b) Account wagers that are accepted by a New York racing association, racing corporation or franchised corporation are deemed for distribution purposes to be on-track wagers of such wagering entities and not simulcast wagers. Account wagers that are accepted by any partnership or joint venture or other affiliation or contractual arrangement formed pursuant to Racing, Pari-Mutuel Wagering and Breeding Law section 1012(1) shall follow the distributional policy of Racing, Pari-Mutuel Wagering and Breeding Law section 1012(1) or 1012(1-a), whichever applies.
(c) In order to offer account wagering, the account wagering provider must be licensed annually by the commission to provide both simulcast wagering and account wagering services.
(d) An account wagering provider must obtain a separate account wagering license for each account wagering platform that such provider operates in conjunction with another entity or that such provider markets to bettors as a distinct wagering platform.
(e) Applications for annual licenses for simulcast and account wagering shall be made in a form and manner determined by the commission.
(f) The applicant shall submit the required application fees with its simulcast and account wagering license applications, as follows:
1. (1) Simulcast license fee. Each applicant shall pay an annual simulcast application fee in the amount prescribed by Racing, Pari-Mutuel Wagering and Breeding Law section 1003(1)(a). If the commission does not issue a simulcast license or approve a given facility, then the related application fee shall be refunded.
2. (2) Account wagering license fee. Each applicant shall pay an annual account wagering application fee of $2,000. Such fee shall be non-refundable, as prescribed by Racing, Pari-Mutuel Wagering and Breeding Law section 1012(3).
  An application for any license may be denied if the applicant has failed or refuses to pay the required application and related fees.
(g) In considering an application for a license, the commission shall review the application and issue licenses in accordance with the standards set forth in Racing, Pari-Mutuel Wagering and Breeding Law section 307(5)(a), which standards shall be applicable to the applicant and its related individuals and entities described in such provision.
(h) Pending final determination of any question, the commission may issue a temporary license upon such terms and conditions as it may deem necessary, desirable or proper to effectuate the provisions of the Racing, Pari-Mutuel Wagering and Breeding Law and this Part.
(i) A refusal to issue a license shall be subject to adjudication in accordance with the provisions of Part 4550 of this Chapter.