Here is the rule, from the NYS Racing and Wagering Board website:
THOROUGHBRED
Sections 4009.21 and 4115.10 of Title 9E NYCRR are amended to read as follows:
4009.21 Refund -- non-starter.
(a) When a horse starts. Every horse shall be considered a starter when the stall gates open on the signal of the starter, unless the stewards declare a horse or horses non-starters because, in their opinion, the horses’ chances were compromised leaving the starting gate. If so, all bets on the non-starters will be refunded unless the horse wins. For placing and program purposes, the non-starters will be considered to have run for purse only.
(b) If it be determined by the stewards that a horse is declared a non-starter, the money bet on the horse shall be refunded; if such horse is part of an entry or field, such circumstances shall be treated as a scratch for wagering as provided in section 4009.20 of this Part, notwithstanding the placing of any remaining part of the entry or field.
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