•  Summary 
  •  
  •  Actions 
  •  
  •  Committee Votes 
  •  
  •  Floor Votes 
  •  
  •  Memo 
  •  
  •  Text 
  •  
  •  LFIN 
  •  
  •  Chamber Video/Transcript 

S07900 Summary:

BILL NOS07900C
 
SAME ASSAME AS A11144-A
 
SPONSORBONACIC
 
COSPNSRADDABBO, BROOKS, FUNKE, GOLDEN
 
MLTSPNSR
 
Amd 1367, 104, 1401 & 1009, add 1367-a, RWB L
 
Relates to regulation of sports betting and mobile sports wagering; implements a tax equivalent to eight and one-half percent of sports wagering gross revenue; requires reporting; provides for civil penalties for violations.
Go to top    

S07900 Actions:

BILL NOS07900C
 
03/07/2018REFERRED TO RACING, GAMING AND WAGERING
03/13/2018REPORTED AND COMMITTED TO FINANCE
05/21/2018AMEND AND RECOMMIT TO FINANCE
05/21/2018PRINT NUMBER 7900A
06/05/2018REPORTED AND COMMITTED TO RULES
06/11/2018AMEND AND RECOMMIT TO RULES
06/11/2018PRINT NUMBER 7900B
06/15/2018AMEND AND RECOMMIT TO RULES
06/15/2018PRINT NUMBER 7900C
Go to top

S07900 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7900--C
 
                    IN SENATE
 
                                      March 7, 2018
                                       ___________
 
        Introduced  by  Sens.  BONACIC,  ADDABBO,  BROOKS, FUNKE, GOLDEN -- read
          twice and ordered printed, and when printed to  be  committed  to  the
          Committee  on  Racing,  Gaming and Wagering -- reported favorably from
          said committee and committed to the Committee on Finance --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  reported  favorably  from  said committee and
          committed to the Committee on  Rules  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee --  committee  discharged,  bill  amended,  ordered  reprinted  as
          amended and recommitted to said committee
 
        AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
          relation to regulation of sports betting
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1367 of the racing, pari-mutuel wagering and breed-
     2  ing law, as added by chapter 174 of the laws of 2013, is amended to read
     3  as follows:
     4    § 1367. Sports wagering. 1. As used in this section:
     5    (a)  "Affiliate"  means  any off-track betting corporation, franchised
     6  corporation, or race track licensed pursuant  to  this  chapter,  or  an
     7  operator  of  video  lottery  gaming  at  Aqueduct  licensed pursuant to
     8  section sixteen hundred seventeen-a of the tax law, which has  a  mobile
     9  sports  wagering  agreement  with  a casino pursuant to section thirteen
    10  hundred sixty-seven-a of this title;
    11    (b) "Agent" means an entity  that  is  party  to  a  contract  with  a
    12  licensed  gaming  facility  authorized  to  operate a sports pool and is
    13  approved by the commission to operate a sports pool on  behalf  of  such
    14  licensed gaming facility;
    15    (c)  "Authorized  sports bettor" means an individual who is physically
    16  present in this state when placing a sports wager, who is not a  prohib-
    17  ited  sports  bettor,  that participates in sports wagering offered by a
    18  casino. The intermediate routing of electronic data in  connection  with
    19  mobile  sports wagering shall not determine the location or locations in
    20  which a wager is initiated, received or otherwise made;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14923-19-8

        S. 7900--C                          2
 
     1    (d) "Brand" means the name and logo  on  the  interface  of  a  mobile
     2  application or internet website accessed via a mobile device or computer
     3  which authorized sports bettors use to access a sports betting platform;
     4    (e)  "Casino"  means  a  licensed gaming facility at which gambling is
     5  conducted pursuant to the provisions of this article;
     6    [(b)] (f) "Commission" means the commission  established  pursuant  to
     7  section one hundred two of this chapter;
     8    [(c)]  (g)  "Collegiate  sport  or  athletic  event"  means a sport or
     9  athletic event offered or sponsored by or played in  connection  with  a
    10  public  or  private  institution that offers educational services beyond
    11  the secondary level;
    12    (h) "Exchange wagering" means a form of wagering in which  an  author-
    13  ized  sports  bettor, on the one hand, and one or more authorized sports
    14  bettors, a casino or an agent or an operator, on the  other  hand  place
    15  identically  opposing  sports wagers on an exchange operated by a casino
    16  or an agent or an operator;
    17    (i) "Global risk management" means the direction, management,  consul-
    18  tation and/or instruction for purposes of managing risks associated with
    19  sports  wagering  conducted  pursuant  to  this section and includes the
    20  setting and adjustment of betting lines,  point  spreads,  or  odds  and
    21  whether to place layoff bets as permitted by this section;
    22    [(d)]  (j)  "High  school  sport  or  athletic event" means a sport or
    23  athletic event offered or sponsored by or played in  connection  with  a
    24  public  or  private  institution  that  offers education services at the
    25  secondary level;
    26    (k) "Horse racing event" means any sport or athletic  event  conducted
    27  in  New  York  state  subject  to the provisions of articles two, three,
    28  four, five, six, nine, ten and eleven of this chapter, or any  sport  or
    29  athletic  event  conducted outside of New York state, which if conducted
    30  in New York state would be subject to the provisions of this chapter;
    31    (l) "In-play sports wager" means a sports wager  placed  on  a  sports
    32  event after the sports event has begun and before it ends;
    33    (m)  "Layoff  bet" means a sports wager placed by a casino sports pool
    34  with another casino sports pool;
    35    (n) "Minor" means any person under the age of twenty-one years;
    36    (o) "Mobile sports wagering platform" or "platform" means the combina-
    37  tion of hardware, software, and data networks used to  manage,  adminis-
    38  ter,  or control sports wagering and any associated wagers accessible by
    39  any electronic means including mobile applications and internet websites
    40  accessed via a mobile device or computer;
    41    (p) "Official league data" means statistics,  results,  outcomes,  and
    42  other data relating to a sporting event that have been obtained from the
    43  relevant  sports governing body or an entity expressly authorized by the
    44  sports governing body to provide such information to casinos;
    45    (q) "Operator" means a casino which has elected to  operate  a  sports
    46  pool or the agent of such licensed gaming facility;
    47    [(e)]  (r)  "Professional  sport  or athletic event" means an event at
    48  which two or more persons participate in sports or athletic  events  and
    49  receive  compensation  in  excess  of  actual expenses for their partic-
    50  ipation in such event;
    51    (s) "Prohibited sports bettor" means:
    52    (i) any officer or employee of the commission;
    53    (ii) any principal or key employee of a casino or affiliate, except as
    54  may be permitted by the commission for good cause shown;

        S. 7900--C                          3
 
     1    (iii) any casino gaming or non-gaming  employee  at  the  casino  that
     2  employs such person and at any affiliate that has an agreement with that
     3  casino;
     4    (iv)  any  contractor,  subcontractor,  or  consultant,  or officer or
     5  employee of a contractor, subcontractor, or consultant, of a  casino  if
     6  such  person  is  directly  involved  in the operation or observation of
     7  sports  wagering,  or  the  processing  of  sports  wagering  claims  or
     8  payments;
     9    (v)  Any  person  subject  to  a  contract with the commission if such
    10  contract contains a provision prohibiting such person from participating
    11  in sports wagering;
    12    (vi) Any spouse, child, brother, sister or parent residing as a member
    13  of the same household in the principal place of  abode  of  any  of  the
    14  foregoing  persons  at  the  same  casino  where the foregoing person is
    15  prohibited from participating in sports wagering;
    16    (vii) any individual with access to non-public  confidential  informa-
    17  tion about sports wagering;
    18    (viii)  any  amateur  or  professional  athlete if the sports wager is
    19  based on any sport or athletic event overseen by  the  athlete's  sports
    20  governing body;
    21    (ix)  any sports agent, owner or employee of a team, player and umpire
    22  union personnel, and employee referee, coach or  official  of  a  sports
    23  governing  body,  if  the sports wager is based on any sport or athletic
    24  event overseen by the individual's sports governing body;
    25    (x) any individual placing a wager as an agent or proxy for an  other-
    26  wise prohibited sports bettor; or
    27    (xi) any minor;
    28    [(f)]  (t)  "Prohibited  sports  event" means any [collegiate sport or
    29  athletic event that takes place in New York or a sport or athletic event
    30  in which any New York college team participates regardless of where  the
    31  event takes place] high school sport or athletic event;
    32    [(g)]  (u) "Registered sports governing body" means a sports governing
    33  body that is headquartered in the United States and who  has  registered
    34  with  the  commission to receive royalty fee revenue in such form as the
    35  commission may require;
    36    (v) "Sports event" means any professional sport or athletic event  and
    37  any collegiate sport or athletic event, except a prohibited sports event
    38  or a horse racing event;
    39    [(h)]   (w)  "Sports  governing  body"  means  the  organization  that
    40  prescribes final rules and enforces codes of conduct with respect  to  a
    41  sporting event and participants therein;
    42    (x) "Sports pool" means the business of accepting wagers on any sports
    43  event by any system or method of wagering; [and
    44    (i)]  (y) "Sports wager" means cash or cash equivalent that is paid by
    45  an authorized sports bettor to a casino to participate in sports  wager-
    46  ing offered by such casino;
    47    (z) "Sports wagering" means wagering on sporting events or any portion
    48  thereof, or on the individual performance statistics of athletes partic-
    49  ipating  in  a sporting event, or combination of sporting events, by any
    50  system or method of wagering, including, but not limited  to,  in-person
    51  communication  and  electronic  communication  through internet websites
    52  accessed via a mobile device or computer and mobile device applications.
    53  Any wager through electronic communication is deemed made at  the  phys-
    54  ical  location  of  the server or other equipment used by an operator to
    55  accept mobile  sports  wagering.    The  term  "sports  wagering"  shall
    56  include,  but is not limited to, single-game bets, teaser bets, parlays,

        S. 7900--C                          4
 
     1  over-under bets, moneyline, pools, exchange wagering, in-game  wagering,
     2  in-play bets, proposition bets and straight bets;
     3    (aa)  "Sports  wagering  gross revenue" means: (i) the amount equal to
     4  the total of all sports wagers not  attributable  to  prohibited  sports
     5  events that an operator collects from all players, less the total of all
     6  sums  not  attributable to prohibited sports events paid out as winnings
     7  to all sports bettors, however, that the total of all sums paid  out  as
     8  winnings  to  sports bettors shall not include the cash equivalent value
     9  of any merchandise or thing of value awarded as a prize, or (ii) in  the
    10  case  of  exchange  wagering pursuant to this section, the commission on
    11  winning sports wagers by authorized sports bettors retained by the oper-
    12  ator. The issuance to or wagering by  authorized  sports  bettors  at  a
    13  casino  of  any  promotional  gaming credit shall not be taxable for the
    14  purposes of determining sports wagering gross revenue;
    15    (bb) "Sports wagering lounge" means an area wherein a sports  pool  is
    16  operated;
    17    (cc)  "Tier  one sports wager" means a sports wager that is determined
    18  solely by the final score or final outcome of the sports event;
    19    (dd) "Tier two sports wager" means an in-play sports wager that is not
    20  a tier one sports wager; and
    21    (ee) "Tier three sports wager" means a sports wager that is neither  a
    22  tier one nor a tier two sports wager.
    23    2.  No  gaming facility may conduct sports wagering until such time as
    24  there has been a change in federal law authorizing such or upon a ruling
    25  of a court of competent jurisdiction that such activity is lawful.
    26    3. (a) In addition to authorized gaming activities, a licensed  gaming
    27  facility  may when authorized by subdivision two of this section operate
    28  a sports pool upon the approval of the commission and in accordance with
    29  the provisions of this section and  applicable  regulations  promulgated
    30  pursuant  to this article. The commission shall hear and decide promptly
    31  and in reasonable order all applications for  a  license  to  operate  a
    32  sports  pool,  shall have the general responsibility for the implementa-
    33  tion of this section and shall have all other duties specified  in  this
    34  section  with  regard  to the operation of a sports pool. The license to
    35  operate a sports pool shall be in addition to any other license required
    36  to be issued to operate a gaming  facility.  No  license  to  operate  a
    37  sports  pool  shall  be issued by the commission to any entity unless it
    38  has established its financial stability,  integrity  and  responsibility
    39  and its good character, honesty and integrity.
    40    No  later  than five years after the date of the issuance of a license
    41  and every five years thereafter or within such  lesser  periods  as  the
    42  commission  may  direct,  a licensee shall submit to the commission such
    43  documentation  or  information  as  the  commission  may  by  regulation
    44  require, to demonstrate to the satisfaction of the executive director of
    45  the  commission  that the licensee continues to meet the requirements of
    46  the law and regulations.
    47    (b) A sports pool shall  be  operated  in  a  sports  wagering  lounge
    48  located  at  a  casino.  The  lounge  shall  conform to all requirements
    49  concerning square footage,  design,  equipment,  security  measures  and
    50  related matters which the commission shall by regulation prescribe.
    51    (c)  The operator of a sports pool shall establish or display the odds
    52  at which wagers may be placed on sports events.
    53    (d) An operator shall accept wagers on sports events only from persons
    54  physically present in the sports  wagering  lounge,  or  through  mobile
    55  sports  wagering offered pursuant to section thirteen hundred sixty-sev-

        S. 7900--C                          5
 
     1  en-a of this title. A person placing a wager shall be at  least  twenty-
     2  one years of age.
     3    (e)  An operator may also accept layoff bets as long as the authorized
     4  sports pool places such wagers with another authorized  sports  pool  or
     5  pools  in  accordance  with regulations of the commission. A sports pool
     6  that places a layoff bet shall inform  the  sports  pool  accepting  the
     7  wager that the wager is being placed by a sports pool and shall disclose
     8  its identity.
     9    (f)  An  operator  may  utilize global risk management pursuant to the
    10  approval of the commission.
    11    (g) An operator shall not admit into the sports  wagering  lounge,  or
    12  accept wagers from, any person whose name appears on the exclusion list.
    13    [(f)]  (h)  The  holder  of  a  license  to  operate a sports pool may
    14  contract with [an entity] an agent to conduct any or all aspects of that
    15  operation, or the operation of mobile sports wagering  offered  pursuant
    16  to  section  thirteen hundred sixty-seven-a of this title, including but
    17  not limited to brand, marketing and customer service, in accordance with
    18  the regulations of the commission. [That entity] Each agent shall obtain
    19  a license as a casino vendor enterprise prior to the  execution  of  any
    20  such  contract,  and  such  license  shall  be  issued  pursuant  to the
    21  provisions of section one thousand three hundred  twenty-seven  of  this
    22  article  and  in  accordance  with  the  regulations  promulgated by the
    23  commission.
    24    [(g)] (i) If any provision of this article or its application  to  any
    25  person  or circumstance is held invalid, the invalidity shall not affect
    26  other provisions or applications of this  article  which  can  be  given
    27  effect without the invalid provision or application, and to this end the
    28  provisions of this article are severable.
    29    4.  (a)  All  persons employed directly in wagering-related activities
    30  conducted within a sports wagering lounge shall be licensed as a  casino
    31  key  employee  or  registered as a gaming employee, as determined by the
    32  commission. All other employees who are working in the  sports  wagering
    33  lounge  may  be required to be registered, if appropriate, in accordance
    34  with regulations of the commission.
    35    (b) Each operator of a sports pool shall designate one or more  casino
    36  key  employees  who shall be responsible for the operation of the sports
    37  pool. At least one such casino key employee shall  be  on  the  premises
    38  whenever sports wagering is conducted.
    39    5.  Except as otherwise provided by this article, the commission shall
    40  have the authority to regulate sports pools and the  conduct  of  sports
    41  wagering under this article to the same extent that the commission regu-
    42  lates  other  gaming.  No casino shall be authorized to operate a sports
    43  pool unless it has produced information, documentation,  and  assurances
    44  concerning  its  financial  background  and  resources,  including  cash
    45  reserves, that are sufficient to demonstrate that it has  the  financial
    46  stability,  integrity,  and  responsibility to operate a sports pool. In
    47  developing rules and regulations  applicable  to  sports  wagering,  the
    48  commission  shall  examine  the  regulations implemented in other states
    49  where sports wagering is conducted and shall,  as  far  as  practicable,
    50  adopt  a  similar  regulatory framework. The commission shall promulgate
    51  regulations necessary to carry  out  the  provisions  of  this  section,
    52  including, but not limited to, regulations governing the:
    53    (a)  amount  of  cash  reserves to be maintained by operators to cover
    54  winning wagers;
    55    (b) acceptance of wagers on a series of sports events;

        S. 7900--C                          6
 
     1    (c) maximum wagers which may be accepted by an operator from  any  one
     2  patron on any one sports event;
     3    (d) type of wagering tickets which may be used;
     4    (e) method of issuing tickets;
     5    (f) method of accounting to be used by operators;
     6    (g) types of records which shall be kept;
     7    (h) use of credit and checks by patrons;
     8    (i) the process by which a casino may place a layoff bet;
     9    (j) the use of global risk management;
    10    (k) type of system for wagering; and
    11    [(j)] (l) protections for a person placing a wager.
    12    6.  Each  operator  shall  adopt  comprehensive  house rules governing
    13  sports  wagering  transactions  with  its  [patrons]  authorized  sports
    14  bettors.  The  rules  shall  specify  the  amounts to be paid on winning
    15  wagers and the effect of schedule changes.   The house  rules,  together
    16  with  any  other  information the commission deems appropriate, shall be
    17  conspicuously displayed in the sports wagering lounge  and  included  in
    18  the  terms  and  conditions  of  the account wagering system, and copies
    19  shall be made readily available to patrons.
    20    7. (a) Each casino that offers sports wagering shall annually submit a
    21  report to the commission no later than the twenty-eighth of February  of
    22  each year, which shall include the following information:
    23    (i)  the total amount of sports wagers received from authorized sports
    24  bettors;
    25    (ii) the total amount of prizes awarded to authorized sports bettors;
    26    (iii) the total amount of sports wagering gross  revenue  received  by
    27  the casino;
    28    (iv)  the  total  amount contributed in sports betting royalty revenue
    29  pursuant to subdivision eight of this section;
    30    (v) the total amount of  wagers  received  on  each  sports  governing
    31  body's sporting events;
    32    (vi)  the  total number of authorized sports bettors that requested to
    33  exclude themselves from sports wagering; and
    34    (vii) any additional information that the commission  deems  necessary
    35  to carry out the provisions of this article.
    36    (b) Upon the submission of such annual report, to such extent that the
    37  commission  deems  it to be in the public interest, the commission shall
    38  be authorized to conduct a financial audit of any casino, at  any  time,
    39  to ensure compliance with this article.
    40    (c) The commission shall annually publish a report based on the aggre-
    41  gate  information  provided  by all casinos pursuant to paragraph (a) of
    42  this subdivision, which shall be published on the  commission's  website
    43  no  later  than  one  hundred  eighty  days  after  the deadline for the
    44  submission of individual reports as specified in such paragraph (a).
    45    8. (a) Within thirty days of the end of each calendar quarter, a casi-
    46  no offering sports wagering shall  remit  to  the  commission  a  sports
    47  wagering  royalty  fee  of  one-fifth (.20) of one percent of the amount
    48  wagered on  sports  events  conducted  by  registered  sports  governing
    49  bodies.    The  fee  shall  be  remitted on a form as the commission may
    50  require, on which the casino shall identify the percentage  of  wagering
    51  during  the  reporting  period  attributable  to  each  registered sport
    52  governing body's sports events.
    53    (b) No later than the thirtieth of April of each  year,  a  registered
    54  sports governing body may submit a claim for disbursement of the royalty
    55  fee  funds  remitted  by  casinos in the previous calendar year on their
    56  respective sports events.  Within thirty days of  submitting  its  claim

        S. 7900--C                          7
 
     1  for  disbursement,  the registered sports governing body shall meet with
     2  the commission to provide the  commission  with  evidence  of  policies,
     3  procedures  and  training  programs  it  has  implemented to protect the
     4  integrity of its sports events.
     5    (c)  Within  thirty  days  of  its  meeting with the registered sports
     6  governing  body,  the  commission  shall  approve  a  timely  claim  for
     7  disbursement.
     8    (d)  The  commission's meeting with a registered sports governing body
     9  under paragraph (b) of this subdivision, shall be closed to  the  public
    10  and  exempt  from  the  open  meetings law. Any evidence provided to the
    11  commission under paragraph (b) of this subdivision shall be confidential
    12  and exempt from disclosure under the state freedom of information law.
    13    9. For the privilege of conducting sports wagering in the state, casi-
    14  nos shall pay a tax equivalent to eight and one-half  percent  of  their
    15  sports wagering gross revenue.
    16    10.  The  commission shall pay into the commercial gaming revenue fund
    17  established pursuant to section ninety-seven-nnnn of the  state  finance
    18  law  eighty-five  percent  of the state tax imposed by this section; any
    19  interest and penalties imposed  by  the  commission  relating  to  those
    20  taxes;  all  penalties  levied  and collected by the commission; and the
    21  appropriate funds, cash or prizes forfeited from  sports  wagering.  The
    22  commission shall pay into the commercial gaming fund five percent of the
    23  state tax imposed by this section to be distributed for problem gambling
    24  education  and treatment purposes pursuant to paragraph a of subdivision
    25  four of section ninety-seven-nnnn of the state finance law. The  commis-
    26  sion shall pay into the commercial gaming fund five percent of the state
    27  tax imposed by this section to be distributed for the cost of regulation
    28  pursuant to paragraph c of subdivision four of section ninety-seven-nnnn
    29  of  the state finance law.  The commission shall pay into the commercial
    30  gaming fund five percent of the state tax imposed by this section to  be
    31  distributed  in  the  same  formula as market origin credits pursuant to
    32  section one hundred fifteen-b of  this  chapter.  The  commission  shall
    33  require at least monthly deposits by the casino of any payments pursuant
    34  to  subdivision  nine  of this section, at such times, under such condi-
    35  tions, and in such depositories as shall  be  prescribed  by  the  state
    36  comptroller.  The deposits shall be deposited to the credit of the state
    37  commercial gaming revenue fund. The commission shall require  a  monthly
    38  report and reconciliation statement to be filed with it on or before the
    39  tenth  day  of  each  month, with respect to gross revenues and deposits
    40  received and made, respectively, during the preceding month.
    41    11. The commission may perform audits of the books and  records  of  a
    42  casino,  at  such  times  and intervals as it deems appropriate, for the
    43  purpose of determining the sufficiency of  tax  payments.  If  a  return
    44  required with regard to obligations imposed is not filed, or if a return
    45  when  filed or is determined by the commission to be incorrect or insuf-
    46  ficient with or without an audit, the amount of tax due shall be  deter-
    47  mined  by the commission. Notice of such determination shall be given to
    48  the casino liable for the payment of the tax. Such  determination  shall
    49  finally and irrevocably fix the tax unless the casino against whom it is
    50  assessed,  within  thirty  days  after receiving notice of such determi-
    51  nation, shall apply to the commission for a hearing in  accordance  with
    52  the regulations of the commission.
    53    12.  Nothing in this section shall apply to interactive fantasy sports
    54  offered pursuant to article fourteen of this chapter.   Nothing in  this
    55  section  authorizes  any entity that conducts interactive fantasy sports
    56  offered pursuant to article fourteen of this chapter to  conduct  sports

        S. 7900--C                          8
 
     1  wagering  unless it separately qualifies for, and obtains, authorization
     2  pursuant to this section.
     3    13.  A  casino that is also licensed under article three of this chap-
     4  ter, and must maintain racing pursuant to paragraph (b)  of  subdivision
     5  one  of  section  thirteen  hundred fifty-five of this chapter, shall be
     6  allowed to offer pari-mutuel wagering on horse racing events in  accord-
     7  ance  with  their  license under article three of this chapter. Notwith-
     8  standing subparagraph (ii) of paragraph c of subdivision two of  section
     9  one  thousand  eight  of  this  chapter, a casino located in the city of
    10  Schenectady shall be allowed to  offer  pari-mutuel  wagering  on  horse
    11  racing  events, provided such wagering is conducted by the regional off-
    12  track betting corporation in such region as the casino is  located.  Any
    13  other  casino  shall  be  allowed to offer pari-mutuel wagering on horse
    14  racing events, provided such wagering is conducted by the regional  off-
    15  track  betting corporation in such region as the casino is located.  Any
    16  physical location where pari-mutuel wagering on horse racing  events  is
    17  offered by a casino and conducted by a regional off-track betting corpo-
    18  ration  in  accordance  with  this  subdivision  shall be deemed to be a
    19  branch location of the regional off-track betting corporation in accord-
    20  ance with section one thousand eight of this  chapter.    Mobile  sports
    21  betting  kiosks located on the premises of affiliates in accordance with
    22  paragraph (d) of subdivision five of section thirteen hundred sixty-sev-
    23  en-a of this chapter shall not be allowed to offer pari-mutuel  wagering
    24  on horse racing events.
    25    14.  A sports governing body may notify the commission that it desires
    26  to restrict, limit, or  exclude  wagering  on  its  sporting  events  by
    27  providing  notice  in the form and manner as the commission may require.
    28  Upon receiving such notice, the commission shall review the  request  in
    29  good  faith,  seek  input from the casinos on such a request, and if the
    30  commission deems it appropriate, promulgate regulations to restrict such
    31  sports wagering. If the commission denies a request, the sports  govern-
    32  ing  body  shall  be afforded notice and the right to be heard and offer
    33  proof in opposition to such determination in accordance with  the  regu-
    34  lations  of  the  commission.  Offering  or  taking  wagers  contrary to
    35  restrictions promulgated by  the  commission  is  a  violation  of  this
    36  section.  In  the  event that the request is in relation to an emergency
    37  situation, the executive director  of  the  commission  may  temporarily
    38  prohibit  the  specific  wager  in question until the commission has the
    39  opportunity to issue temporary regulations addressing the issue.
    40    15. (a) The commission shall  designate  the  division  of  the  state
    41  police  to  have primary responsibility for conducting, or assisting the
    42  commission in conducting, investigations into abnormal betting activity,
    43  match fixing, and other conduct that corrupts a  betting  outcome  of  a
    44  sporting event or events for purposes of financial gain.
    45    (b)  Casinos  shall  maintain records of sports wagering operations in
    46  accordance with regulations promulgated by the commission.  These  regu-
    47  lations  shall,  at  a  minimum, require a casino to adopt procedures to
    48  obtain personally identifiable information from any individual who plac-
    49  es any single wager in an amount of ten thousand dollars or greater on a
    50  sports event while physically present in a  casino  or  using  a  mobile
    51  sports betting kiosk at an affiliate.
    52    (c)  The  commission  shall cooperate with a sports governing body and
    53  casinos to ensure the timely, efficient, and accurate sharing of  infor-
    54  mation.
    55    (d)  The  commission  and  casinos shall cooperate with investigations
    56  conducted by  sports  governing  bodies  or  law  enforcement  agencies,

        S. 7900--C                          9
 
     1  including  but not limited to providing or facilitating the provision of
     2  account-level betting information and audio or video files  relating  to
     3  persons  placing  wagers; provided, however, that the casino be required
     4  to share any personally identifiable information of an authorized sports
     5  bettor  with  a sports governing body only pursuant to an order to do so
     6  by the commission or a law enforcement  agency  or  court  of  competent
     7  jurisdiction.
     8    (e)  Casinos  shall  promptly report to the commission any information
     9  relating to:
    10    (i) criminal or disciplinary proceedings commenced against the  casino
    11  in connection with its operations;
    12    (ii) abnormal betting activity or patterns that may indicate a concern
    13  with the integrity of a sporting event or events;
    14    (iii)  any  potential  breach  of the relevant sports governing body's
    15  internal rules and codes of conduct pertaining to  sports  wagering,  as
    16  they have been provided by the sports governing body to the casino;
    17    (iv)  any  other conduct that corrupts a betting outcome of a sporting
    18  event or events for purposes of financial gain, including match  fixing;
    19  and
    20    (v)  suspicious or illegal wagering activities, including use of funds
    21  derived from illegal  activity,  wagers  to  conceal  or  launder  funds
    22  derived  from  illegal  activity,  using  agents  to place wagers, using
    23  confidential non-public information, and using false identification.
    24    The commission shall also  promptly  report  information  relating  to
    25  conduct  described  in  subparagraphs (ii), (iii) and (iv) of this para-
    26  graph to the relevant sports governing body.
    27    (f) Casinos shall maintain the confidentiality of information provided
    28  by a sports governing body to the casino, unless disclosure is  required
    29  by this section, the commission, other law, or court order.
    30    (g)  The  commission,  by regulation, may authorize and promulgate any
    31  rules necessary to implement agreements with other states, or authorized
    32  agencies thereof to enable the  sharing  of  information  to  facilitate
    33  integrity  monitoring  and  the  conduct of investigations into abnormal
    34  betting activity, match  fixing,  and  other  conduct  that  corrupts  a
    35  betting  outcome of a sporting event or events for purposes of financial
    36  gain.
    37    (h) The commission shall study the potential for the  creation  of  an
    38  interstate  database  of all sports wagering information for the purpose
    39  of integrity monitoring, and shall create a final report  regarding  all
    40  findings  and  recommendations  to  be  delivered upon completion of all
    41  objectives described herein, but in no event later than March first, two
    42  thousand nineteen, to the governor, the speaker of the assembly and  the
    43  temporary president of the senate.
    44    16.  (a)  Casinos shall use whatever data source they deem appropriate
    45  for determining the result of sports wagering involving tier one  sports
    46  wagers.
    47    (b) Casinos shall only use official league data in all sports wagering
    48  involving  tier two sports wagers, if the relevant sports governing body
    49  possesses a feed of official league data, and makes such feed  available
    50  for  purchase  by the casinos on commercially reasonable terms as deter-
    51  mined by the commission.
    52    (c) A sports governing body may notify the commission that it  desires
    53  to  require  casinos  to  use  official  league  data in sports wagering
    54  involving specific tier three sports wagers by providing notice  in  the
    55  form  and  manner  as  the  commission  may require. Upon receiving such
    56  notice, the commission shall review the request,  seek  input  from  the

        S. 7900--C                         10

     1  casinos  on  such a request, and if the commission deems it appropriate,
     2  promulgate regulations to require casinos to use official league data on
     3  sports wagering involving such tier three sports wagers if the  relevant
     4  sports  governing  body  possesses  a  feed of official league data, and
     5  makes such feed available for purchase by the  casinos  on  commercially
     6  reasonable terms as determined by the commission.
     7    (d) When determining whether or not a supplier of official league data
     8  is offering commercially reasonable terms, the commission shall consider
     9  the  amount  charged  by  the supplier of official league data to gaming
    10  operators in other jurisdictions. This information shall be provided  to
    11  the  commission  by the supplier of official league data upon request of
    12  the commission.  Any entity providing data to a casino for  the  purpose
    13  of  tier  two  sports  wagers,  other than a supplier of official league
    14  data, shall obtain a license as a  casino  vendor  enterprise  and  such
    15  license  shall  be issued pursuant to the provisions of section thirteen
    16  hundred twenty-seven of this article and in accordance  with  the  regu-
    17  lations promulgated by the commission.
    18    (e)  No  casino  shall enter into an agreement with a sports governing
    19  body or an entity expressly authorized  to  distribute  official  league
    20  data to be the exclusive recipient of their official league data.
    21    (f) The commission shall promulgate regulations to allow an authorized
    22  sports  bettor  to file a complaint alleging an underpayment or non-pay-
    23  ment of a winning sports wager. Any such regulations shall provide  that
    24  the commission utilize the statistics, results, outcomes, and other data
    25  relating  to  a sporting event that have been obtained from the relevant
    26  sports governing body in determining the validity of such claim.
    27    17. A casino shall not permit sports wagering by anyone they know,  or
    28  should have known, to be a prohibited sports bettor.
    29    18.  Sports  wagering  conducted  pursuant  to  the provisions of this
    30  section is hereby authorized.
    31    19. The conduct of sports wagering in violation  of  this  section  is
    32  prohibited.
    33    20. (a) In addition to any criminal penalties provided for under arti-
    34  cle  two  hundred twenty-five of the penal law, any person, firm, corpo-
    35  ration, association, agent, or employee, who is not authorized to  offer
    36  sports  wagering  under  this section or section thirteen hundred sixty-
    37  seven-a of this title, and who knowingly offers  or  attempts  to  offer
    38  sports  wagering  or  mobile sports wagering in New York shall be liable
    39  for a civil penalty of not more than one hundred  thousand  dollars  for
    40  each  violation, not to exceed five million dollars for violations aris-
    41  ing out of the same transaction or occurrence, which shall accrue to the
    42  state and may be recovered in a civil action brought by the commission.
    43    (b) Any person, firm, corporation, association, agent, or employee who
    44  knowingly violates any procedure  implemented  under  this  section,  or
    45  section  thirteen  hundred  sixty-seven-a of this title, shall be liable
    46  for a civil penalty of not more than  five  thousand  dollars  for  each
    47  violation,  not  to exceed fifty thousand dollars for violations arising
    48  out of the same transaction or occurrence, which  shall  accrue  to  the
    49  state and may be recovered in a civil action brought by the commission.
    50    §  2.  The racing, pari-mutuel wagering and breeding law is amended by
    51  adding a new section 1367-a to read as follows:
    52    § 1367-a. Mobile sports wagering. 1. (a) Except as  provided  in  this
    53  subdivision,  the  terms in this section shall have the same meanings as
    54  such terms are defined in subdivision one of  section  thirteen  hundred
    55  sixty-seven of this title.

        S. 7900--C                         11
 
     1    (b) "Operator" means an entity offering a mobile sports wagering plat-
     2  form including an agent.
     3    2. (a) No casino shall administer, manage, or otherwise make available
     4  a  mobile  sports wagering platform to persons located in New York state
     5  unless registered with the commission pursuant to this section. A casino
     6  may use one mobile sports wagering platform and brand provided that such
     7  platform and brand has been reviewed and approved by the  commission.  A
     8  casino  may  contract with an independent operator to provide its mobile
     9  sports wagering platform.
    10    (b) Registrations issued by the commission shall remain in effect  for
    11  five years. The commission shall establish a process for renewal.
    12    (c)  The  commission shall publish a list of all casinos registered to
    13  offer mobile sports wagering in New York state pursuant to this  section
    14  on the commission's website for public use.
    15    (d)  The  commission  shall  promulgate  regulations  to implement the
    16  provisions of this section, including the  development  of  the  initial
    17  form of the application for registration. Such regulations shall provide
    18  for the registration and operation of mobile sports wagering in New York
    19  state  and shall include, but not be limited to, responsible protections
    20  with regard to compulsive play and safeguards for fair play.
    21    3. In the event that a casino contracts with an  operator  to  provide
    22  its  mobile  sports  wagering  platform  and  brand, such operator shall
    23  obtain a license as a casino vendor enterprise prior to the execution of
    24  any such contract, and such license shall  be  issued  pursuant  to  the
    25  provisions  of  section  one thousand three hundred twenty-seven of this
    26  article and in  accordance  with  the  regulations  promulgated  by  the
    27  commission.
    28    4. (a) As a condition of registration in New York state, each operator
    29  shall implement the following measures:
    30    (i) limit each authorized sports bettor to one active and continuously
    31  used  account on their platform, and prevent anyone they know, or should
    32  have known to be a prohibited sports bettor from maintaining accounts or
    33  participating in any sports wagering offered by such operator;
    34    (ii) adopt appropriate safeguards to ensure, to a reasonable degree of
    35  certainty, that authorized sports bettors are physically located  within
    36  the state when engaging in mobile sports betting;
    37    (iii) prohibit minors from participating in any sports wagering, which
    38  includes:
    39    (1)  if  an operator becomes or is made aware that a minor has created
    40  an account, or accessed the account  of  another,  such  operator  shall
    41  promptly,  within  no  more  than  two business days, refund any deposit
    42  received from the minor, whether or not the  minor  has  engaged  in  or
    43  attempted  to  engage  in  sports  wagering; provided, however, that any
    44  refund may be offset by any prizes already awarded;
    45    (2) each operator shall provide parental control procedures  to  allow
    46  parents  or guardians to exclude minors from access to any sports wager-
    47  ing or platform. Such procedures shall include  a  toll-free  number  to
    48  call for help in establishing such parental controls; and
    49    (3)  each  operator  shall  take  appropriate steps to confirm that an
    50  individual opening an account is not a minor;
    51    (iv) when referencing the chances or likelihood of winning  in  adver-
    52  tisements  or upon placement of a sports wager, make clear and conspicu-
    53  ous statements that are not  inaccurate  or  misleading  concerning  the
    54  chances of winning and the number of winners;

        S. 7900--C                         12
 
     1    (v) enable authorized sports bettors to exclude themselves from sports
     2  wagering and take reasonable steps to prevent such bettors from engaging
     3  in sports wagering from which they have excluded themselves;
     4    (vi)  permit  any  authorized  sports  bettor  to permanently close an
     5  account registered to such bettor, on any and all platforms supported by
     6  such operator, at any time and for any reason;
     7    (vii) offer introductory procedures  for  authorized  sports  bettors,
     8  that  shall  be  prominently displayed on the main page of such operator
     9  platform, that explain sports wagering;
    10    (viii) implement measures to protect the privacy and  online  security
    11  of authorized sports bettors and their accounts;
    12    (ix)  offer all authorized sports bettors access to his or her account
    13  history and account details;
    14    (x) ensure authorized sports bettors' funds are protected upon deposit
    15  and segregated from the operating funds of such operator  and  otherwise
    16  protected  from  corporate  insolvency,  financial  risk, or criminal or
    17  civil actions against such operator;
    18    (xi) list on each website, in a prominent place, information  concern-
    19  ing  assistance for compulsive play in New York state, including a toll-
    20  free number directing callers to reputable resources containing  further
    21  information, which shall be free of charge; and
    22    (xii)  ensure no sports wagering shall be based on a prohibited sports
    23  event.
    24    (b) Operators shall not directly or indirectly  operate,  promote,  or
    25  advertise any platform or sports wagering to persons located in New York
    26  state unless registered pursuant to this article.
    27    (c) Operators shall not offer any sports wagering based on any prohib-
    28  ited sports event.
    29    (d) Operators shall not permit sports wagering by anyone they know, or
    30  should have known, to be a prohibited sports bettor.
    31    (e)  Advertisements  for  contests  and  prizes offered by an operator
    32  shall not target prohibited sports  bettors,  minors,  or  self-excluded
    33  persons.
    34    (f) Operators shall prohibit the use of third-party scripts or script-
    35  ing  programs for any exchange wagering contest and ensure that measures
    36  are in place to deter, detect and, to the  extent  reasonably  possible,
    37  prevent  cheating, including collusion, and the use of cheating devices,
    38  including use of software programs that submit exchange wagering  sports
    39  wagers unless otherwise approved by the commission.
    40    (g)  Operators shall develop and prominently display procedures on the
    41  main page of such operator's platform for the filing of a  complaint  by
    42  an  authorized  sports bettor against such operator. An initial response
    43  shall be given by such operator to  such  bettor  filing  the  complaint
    44  within  forty-eight  hours.  A  complete response shall be given by such
    45  operator to such bettor filing the complaint within ten  business  days.
    46  An authorized sports bettor may file a complaint alleging a violation of
    47  the provisions of this article with the commission.
    48    (h)  Operators  shall  maintain  records  of all accounts belonging to
    49  authorized sports bettors and retain such records of all transactions in
    50  such accounts for the preceding five years.
    51    (i) The server or other equipment which is  used  by  an  operator  to
    52  accept  mobile  sports  wagering shall be located in the licensed gaming
    53  facility in accordance with regulations promulgated by the commission.
    54    (j) All mobile sports wagering shall be conducted in  compliance  with
    55  this section and section thirteen hundred sixty-seven of this title.

        S. 7900--C                         13
 
     1    5.  (a)  Subject to regulations promulgated by the commission, casinos
     2  may enter into  agreements  with  affiliates  to  allow  for  authorized
     3  bettors to sign up to create and fund accounts on mobile sports wagering
     4  platforms offered by the casino.
     5    (b) Authorized sports bettors may sign up to create their account on a
     6  mobile sports wagering platform in person at a casino or an affiliate of
     7  a  casino,  or through internet websites accessed via a mobile device or
     8  computer, or mobile device applications.
     9    (c) Authorized sports bettors may deposit and withdraw funds in  their
    10  account on a mobile sports wagering platform in person at a casino or an
    11  affiliate of a casino, electronically recognized payment methods, or any
    12  other means approved by the commission.
    13    (d)  In  accordance  with  regulations  promulgated by the commission,
    14  casinos may enter into agreements with affiliates to locate self-service
    15  mobile sports betting kiosks, which are owned, operated  and  maintained
    16  by  the  casino,  and connected via the internet to the casino, upon the
    17  premises of the affiliate.  Authorized sports bettors may place  account
    18  wagers, and place and redeem non-account cash wagers, at such kiosks.
    19    (e)  All  agreements  entered  into  between casinos and affiliates in
    20  relation to the provisions of this section  shall  be  approved  by  the
    21  commission prior to taking effect and shall include a plan for the time-
    22  ly payment of liabilities due to the affiliate under the agreement.
    23    §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
    24  is amended by adding a new subdivision 24 to read as follows:
    25    24. To regulate sports wagering in New York state.
    26    § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel  wager-
    27  ing  and  breeding  law, as added by chapter 237 of the laws of 2016, is
    28  amended to read as follows:
    29    15. "Prohibited sports event" shall  mean  any  [collegiate  sport  or
    30  athletic  event,  any]  high school sport or athletic event or any horse
    31  racing event.
    32    § 5. Paragraph (a) of subdivision 2-a of section 1009 of  the  racing,
    33  pari-mutuel  wagering and breeding law, as amended by chapter 626 of the
    34  laws of 1986, is amended to read as follows:
    35    (a) In Sullivan, Greene and Ulster counties  and  within  the  Capital
    36  District  region  as  defined  by  paragraph  (e)  of subdivision one of
    37  section five hundred nineteen of this chapter, the board shall determine
    38  the number of such projects to be located in privately owned  hotels  in
    39  such  counties for the exclusive use of the hotel guests.  Notwithstand-
    40  ing the provisions of paragraph (a) of subdivision five of this section,
    41  an admission fee shall not be required  for  any  demonstration  project
    42  authorized  in such areas in a gaming facility as defined in subdivision
    43  twenty-three of section thirteen hundred one of this  chapter.  Provided
    44  however,  on  any  day when a regional harness track located in Saratoga
    45  County conducts a live race meeting,  the  demonstration  facility  will
    46  predominantly  display the live video of such regional harness track. In
    47  the event of a conflict with the broadcast of  the  live  video  from  a
    48  franchise  corporation racetrack, the demonstration project facility may
    49  choose to show the franchise  corporation  signal  instead  and  show  a
    50  replay  of the regional harness track race meeting immediately following
    51  completion of the franchise corporation race.
    52    § 6. Severability clause. If any provision of this act or  application
    53  thereof  shall  for  any  reason  be  adjudged by any court of competent
    54  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    55  invalidate the remainder of the act, but shall be confined in its opera-

        S. 7900--C                         14
 
     1  tion  to  the  provision thereof directly involved in the controversy in
     2  which the judgment shall have been rendered.
     3    §  7.  This  act  shall  take  effect on the same date and in the same
     4  manner as section 1367 of the racing, pari-mutuel wagering and  breeding
     5  law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
     6  of 2013, takes effect.
Go to top