A09198 Summary:

Amd §§1367-a, 104 & 1311, add Art 15 §§1500 - 1507, RWB L; amd §§1602 & 1612, add §1617-b, Tax L
Authorizes interactive gaming and interactive lottery gaming in the state of New York.
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A09198 Actions:

02/14/2024referred to racing and wagering
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A09198 Committee Votes:

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A09198 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                    February 14, 2024
        Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
          tee on Racing and Wagering
        AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
          relation  to interactive gaming; and to amend the tax law, in relation
          to interactive lottery gaming
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Section  1367-a  of  the racing, pari-mutuel wagering and
     2  breeding law is amended by  adding  a  new  subdivision  8  to  read  as
     3  follows:
     4    8.  No  additional  mobile  sports  wagering  licenses shall be issued
     5  pursuant to this section subsequent to  the  conversion  of  any  mobile
     6  sports  wagering  platform  provider  license  to  an interactive gaming
     7  license, as set forth in subdivision  two  of  section  fifteen  hundred
     8  three of this chapter.
     9    §  2. Section 104 of the racing, pari-mutuel wagering and breeding law
    10  is amended by adding a new subdivision 25 to read as follows:
    11    25. To regulate interactive gaming in New York state.
    12    § 3. Section 1311 of the racing, pari-mutuel wagering and breeding law
    13  is amended by adding a new subdivision 4 to read as follows:
    14    4. As a condition for continued licensure, licensees shall be required
    15  to house upon the physical premises of the licensed gaming facility,  an
    16  interactive gaming licensee's server or other equipment used for receiv-
    17  ing  interactive gaming wagers pursuant to article fifteen of this chap-
    18  ter; provided however, that such  licensee  shall  be  entitled  to  the
    19  reasonable  and actual costs, as determined by the gaming commission, of
    20  physically housing and securing such server or other equipment used  for
    21  interactive  gaming  at  such  licensee's licensed gaming facility. Such
    22  reasonable and actual costs of  physically  housing  and  securing  such
    23  server or other equipment used for receiving interactive gaming shall be
    24  split equally among all entities requiring such physical housing.
    25    §  4.  The racing, pari-mutuel wagering and breeding law is amended by
    26  adding a new article 15 to read as follows:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 9198                             2
     1                                 ARTICLE 15
     2                             INTERACTIVE GAMING
     3  Section 1500. Legislative intent and findings.
     4          1501. Definitions.
     5          1502. Eligibility to conduct interactive gaming.
     6          1503. Entity licensing.
     7          1504. Individual, enterprise and vendor licensing.
     8          1505. Requirements  for  conduct  and  operation  of interactive
     9                  gaming.
    10          1506. Taxation and fees.
    11          1507. Responsible gaming requirements.
    12    § 1500. Legislative intent and findings. Section nine of  article  one
    13  of  the  New  York  state constitution was recently amended and provides
    14  "casino gambling at no more than  seven  facilities  as  authorized  and
    15  prescribed  by  the legislature shall hereafter be authorized or allowed
    16  within this state". It has been, and continues to be, the sense  of  the
    17  legislature  that  this  provision  is not contravened by a statute that
    18  authorizes the acceptance of a wager by an  individual  located  in  New
    19  York  state  who is betting by virtual or electronic means and the wager
    20  is accepted through equipment located within a licensed gaming facility;
    21  provided that any such wager meets other safeguards  ensuring  that  the
    22  plain  text  of this provision is honored in such structure. Interactive
    23  gaming is now legal in seven states, including the bordering  states  of
    24  New Jersey, Pennsylvania, and Connecticut, while it is permitted only in
    25  person  in  New  York  at  four upstate commercial gaming facilities and
    26  Native American class III  gaming  facilities.  The  legislature  hereby
    27  finds and declares that an interactive gaming wager that is made through
    28  virtual or electronic means from a location within New York state and is
    29  transmitted  to  and  accepted  by  electronic  equipment  located  at a
    30  licensed gaming facility, including without limitation, a computer serv-
    31  er located at such licensed gaming facility, is a  wager  made  at  such
    32  licensed  gaming  facility,  notwithstanding any provisions of the penal
    33  law to the contrary.
    34    § 1501. Definitions. For the purposes of this article,  the  following
    35  terms shall have the following meanings:
    36    1. "Authorized interactive game" means: (a) any internet-based version
    37  or  substantial  equivalent  of  a table game, slot machine constituting
    38  spinning reels, poker tournament, or any other  game  as  set  forth  in
    39  subdivision  four,  nineteen,  thirty-eight, thirty-nine or forty-one of
    40  section thirteen hundred one of this chapter and approved by the commis-
    41  sion, including, but not limited to live-dealer games in which  individ-
    42  uals  wager  money or something of monetary value, and which is accessed
    43  by a computer or mobile device which is connected to  the  internet.  An
    44  authorized  interactive  game  may  include  gaming tournaments in which
    45  players compete against one another in one or more of the games  author-
    46  ized herein or by the commission or in approved variations or composites
    47  thereof  if  such  tournaments  are authorized; or (b) any video lottery
    48  terminal games  currently  authorized  by  the  commission  pursuant  to
    49  section one thousand six hundred seventeen-a of the tax law.
    50    2.  "Authorized  participant"  means  an  individual who is physically
    51  present in the state of New York  when  placing  an  interactive  gaming
    52  wager,  who  is  at  least twenty-one years of age, who is authorized to
    53  participate in gaming pursuant to article thirteen of this chapter,  and
    54  who  participates  in  interactive  gaming  offered  by  a casino, video
    55  lottery terminal facility or operator.  All  interactive  gaming  wagers
    56  placed  in  accordance  with  this article shall be considered placed or

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     1  otherwise made when received by the casino or operator at  the  licensed
     2  gaming  facility,  regardless  of  the authorized participant's physical
     3  location at the time such wager is initiated. The  intermediate  routing
     4  of  electronic  data in connection with mobile wagering shall not deter-
     5  mine the location or locations in which a wager is initiated,  received,
     6  or otherwise made.
     7    3. "Commission" means the New York state gaming commission.
     8    4.  "Competitive  event"  means any event in which two or more contes-
     9  tants are competing in an event in which a winner is determined  at  the
    10  conclusion of such event.
    11    5.  "Gaming  facility"  means  the  premises  approved  under a gaming
    12  license, which includes a gaming area and any other non-gaming structure
    13  related to the gaming area and may include, but shall not be limited to,
    14  hotels, restaurants or other amenities.
    15    6. "Interactive gaming" means wagering on authorized casino  or  video
    16  lottery  terminal  games  online  by  any  system or method of wagering,
    17  including, but not limited to, in-person  communication  and  electronic
    18  communication  through internet websites accessed via a mobile device or
    19  computer, and mobile device applications; provided, however,  such  term
    20  shall not include the internet lottery program as authorized pursuant to
    21  section sixteen hundred seventeen-b of the tax law.
    22    7.  "Interactive  gaming  licensee" means a qualifying entity that has
    23  been authorized by the New  York  state  gaming  commission  to  conduct
    24  interactive gaming.
    25    8.  "Interactive  gross  gaming revenue" means the amount equal to the
    26  total of all interactive gaming wagers that an interactive gaming licen-
    27  see collects from all authorized participants, less  the  total  of  all
    28  sums  paid  out  as  winnings  to all authorized participants, provided,
    29  however, that the total of all sums paid out as winnings  to  authorized
    30  participants  shall  not  include the following: (a) the cash equivalent
    31  value of any merchandise or thing of value awarded as a prize;  and  (b)
    32  the  value  of  all  bonuses or promotions provided, in the first twelve
    33  months after  an  interactive  gaming  licensee  begins  operations,  to
    34  authorized participants as an incentive to place or as a result of their
    35  having  placed  interactive gaming wagers, not to exceed 1.75 percent of
    36  the total amount of all interactive gaming wagers placed with the inter-
    37  active gaming licensee during each month.
    38    9. "Interactive gaming wager" means cash or cash  equivalent  that  is
    39  paid by an authorized participant to a casino or operator to participate
    40  in  interactive  gaming  offered  by such casino, video lottery terminal
    41  facility or operator. Any wager through electronic  communication  shall
    42  be  deemed to take place at the physical location of the server or other
    43  equipment used by an interactive gaming licensee to  accept  interactive
    44  gaming  wagering,  regardless  of  the authorized participant's physical
    45  location within the state at the time such wager is initiated.
    46    10. "Live dealer games" means authorized  casino  games  conducted  by
    47  live  studio  dealers  or other physical gaming equipment, such as auto-
    48  mated roulette wheels, ball blowers or gaming devices,  or  both,  in  a
    49  live  game  environment  in  which  the authorized participants have the
    50  ability to participate in  game  play  and  communicate  game  decisions
    51  through  an authorized interactive gaming wagering platform. Live dealer
    52  games include, but are not limited to, live card games, live table games
    53  and other live authorized casino games.
    54    11. "Live gaming studio" means a physical location in New  York  state
    55  that  utilizes  live  video  streaming  technology to provide authorized

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     1  casino games to  a  player's  interactive  gaming  device  or  multi-use
     2  computing device.
     3    12. "Live studio dealer" means natural persons, that lead table games,
     4  including  blackjack,  craps, keno, poker, roulette and other authorized
     5  casino games while assisting authorized participants  with  game-related
     6  needs,  that  distribute  cards,  dice and other equipment to authorized
     7  participants according to the table and other authorized games, and that
     8  monitor game pace and play.
     9    13. "Prohibited participant" means: (a) any officer or employee of the
    10  commission; (b) any principal or key employee of a  casino,  interactive
    11  gaming  licensee,  and its affiliates, except as may be permitted by the
    12  commission; (c) any casino gaming or non-gaming employee at  the  casino
    13  that  employs  such  person and any gaming or non-gaming employee of the
    14  interactive gaming licensee that employs such person; (d)  any  contrac-
    15  tor,  subcontractor, or consultant, or officer or employee of a contrac-
    16  tor, subcontractor, or consultant, of a casino or an interactive  gaming
    17  licensee  if such person is directly involved in the operation or obser-
    18  vation of interactive gaming, or the processing  of  interactive  gaming
    19  claims  or  payments;  (e)  any  person  subject  to a contract with the
    20  commission if such contract contains a provision prohibiting such person
    21  from participating in interactive gaming; (f) any spouse, child, sibling
    22  or parent residing in the principal place of abode of any of the forego-
    23  ing persons at the same casino or interactive gaming licensee where  the
    24  foregoing person is prohibited from participating in interactive gaming;
    25  (g)  any  individual  placing  a  wager as an agent or proxy for another
    26  person known to be a prohibited participant; or  (h)  any  person  under
    27  twenty-one years of age.
    28    14. "Qualifying entity" means (a) a destination resort casino licensed
    29  under  article  thirteen  of  this chapter; (b) a video lottery terminal
    30  facility authorized under paragraphs one and two  of  subdivision  a  of
    31  section  sixteen hundred seventeen-a of the tax law, or authorized under
    32  paragraph five of subdivision a of section sixteen  hundred  seventeen-a
    33  of the tax law; (c) a federally recognized Indian tribe that has entered
    34  into  a tribal-state gaming compact in accordance with the Indian Gaming
    35  Regulatory Act that is in effect and has been ratified by the  state  of
    36  New  York;  or (d) a mobile sports wagering platform provider, inclusive
    37  of the sports wagering operators the platform utilizes, selected by  the
    38  commission  to  conduct  mobile  sports wagering pursuant to subdivision
    39  seven of section thirteen hundred  sixty-seven-a  of  this  chapter  and
    40  section  fifteen  hundred  three  of  this article. An unlicensed entity
    41  offering games or contests that require a license  or  temporary  permit
    42  issued  by  the  commission  under  article thirteen or fourteen of this
    43  chapter within the previous three years of the effective  date  of  this
    44  article shall be ineligible to receive an interactive gaming license.
    45    § 1502. Eligibility  to conduct interactive gaming. 1. Only a qualify-
    46  ing entity in good standing with the commission or,  if  the  qualifying
    47  entity is an Indian tribe, those executive agencies with which it other-
    48  wise  interacts,  shall be eligible to conduct interactive gaming in the
    49  state.
    50    2. No qualifying entity shall administer, manage,  or  otherwise  make
    51  available  an interactive gaming platform to persons located in New York
    52  state unless it has provided  notice  of  intent  to  offer  interactive
    53  gaming  to  the  commission  pursuant  to this section. Additionally, no
    54  entity shall advertise or promote an unlicensed interactive gaming plat-
    55  form to persons located in the state of New York.

        A. 9198                             5
     1    3. (a) Prior to the commission approving an interactive gaming  licen-
     2  see  under  section  fifteen  hundred  three of this article to commence
     3  operations, the commission shall conduct a  comprehensive  investigation
     4  of the applicant to determine whether the applicant or any of its affil-
     5  iates, including entities under common control, is knowingly (i) accept-
     6  ing  revenue,  directly  or indirectly, derived from any jurisdiction on
     7  the "Black List of Money Laundering Countries"  as  established  by  the
     8  Financial  Action Task Force (FATF), or (ii) any jurisdiction designated
     9  as a state sponsor of terrorism by the United States; provided, however,
    10  that this shall not affect the commission's existing statutory authority
    11  to evaluate an applicant's suitability.
    12    (b) The commission shall not approve an interactive gaming licensee to
    13  commence operations if the commission determines that the  applicant  or
    14  any of its affiliates, including entities under common control, is know-
    15  ingly  (i)  accepting  revenue, directly or indirectly, derived from any
    16  jurisdiction on the "Black List of Money Laundering Countries" as estab-
    17  lished by the Financial Action Task Force (FATF), or (ii) any  jurisdic-
    18  tion designated as a state sponsor of terrorism by the United States.
    19    (c) If at any time during licensure the commission determines that the
    20  licensee  or  any  of  its  affiliates,  including entities under common
    21  control, is knowingly accepting revenue, directly or indirectly, derived
    22  from any jurisdiction on the "Black List of Money Laundering  Countries"
    23  as  established by the Financial Action Task Force (FATF), or any juris-
    24  diction designated as a state sponsor of terrorism by the United States,
    25  the commission shall impose a  penalty  of  license  revocation  if  the
    26  commission determines, after notice and an opportunity for hearing, that
    27  it  would  further the public interest to discontinue such operations of
    28  the interactive gaming licensee.
    29    (d) Prior to the commission approving an interactive  gaming  licensee
    30  under  section  fifteen  hundred three of this article to commence oper-
    31  ations, and upon each license renewal, the commission shall require each
    32  applicant to supply a disclosure of all jurisdictions within which it or
    33  its affiliates knowingly conduct  operations.    Such  disclosure  shall
    34  pertain  to any jurisdiction within which an applicant or its affiliates
    35  knowingly accepted revenue for the supply of interactive gaming, includ-
    36  ing but not limited to online wagers or other consideration  related  to
    37  online  wagering, directly or indirectly, within the twelve-month period
    38  preceding the license application or renewal.  A  material  misrepresen-
    39  tation  or  omission  on  the disclosure shall, in the discretion of the
    40  commission, result in denial of an application for an interactive gaming
    41  license and/or  disciplinary  action,  including,  but  not  limited  to
    42  suspension  or  revocation  of  the  license  and penalties for officers
    43  and/or board members of the licensee; provided however, that for  exist-
    44  ing  licensees,  if  the commission determines that it would further the
    45  public interest to discontinue such operations of the interactive gaming
    46  licensee and issue a penalty of license revocation, such licensee  shall
    47  be entitled to a notice and opportunity for hearing.
    48    4.  Licenses  authorized under this article shall remain in effect for
    49  up to ten years from the date issued. The commission shall  establish  a
    50  process for renewal.
    51    5.  The commission shall publish a list of all licensees authorized to
    52  offer interactive gaming in New York state pursuant to this  section  on
    53  the commission's website for public use.
    54    6. Each interactive gaming licensee shall offer no more than one indi-
    55  vidually branded skin.

        A. 9198                             6
     1    7.  Notices  of intent to offer interactive gaming sent to the commis-
     2  sion by a qualified entity shall be acted upon by the commission prompt-
     3  ly, with authorization to commence operations being issued or denied  no
     4  more than ninety days after receipt of the petition.
     5    8.  To  meet  the  definition  of a qualifying entity, an Indian Tribe
     6  shall enter into an agreement with the commission with respect to inter-
     7  active gaming:
     8    (a) to follow the requirements imposed on interactive gaming licensees
     9  under this section and section thirteen hundred  sixty-seven-a  of  this
    10  chapter with respect to the Indian Tribe's interactive gaming; to adhere
    11  to  the  regulations  promulgated  by  the  commission  pursuant to this
    12  section with respect to interactive gaming, and to submit to the commis-
    13  sion's enforcement of this section and section thirteen  hundred  sixty-
    14  seven-a  of  this  chapter  and  regulations promulgated thereunder with
    15  respect to interactive gaming, including  by  waiving  tribal  sovereign
    16  immunity  for  the sole and limited purpose of such enforcement. Nothing
    17  herein shall be construed as requiring an Indian  Tribe's  agreement  to
    18  adhere  to  the  requirements of section thirteen hundred sixty-seven of
    19  this chapter for gaming conducted on tribal  lands  as  a  condition  of
    20  offering interactive gaming under this section;
    21    (b)  to  waive  the Indian Tribe's exclusive geographic right to offer
    22  and conduct interactive gaming, but not otherwise;
    23    (c) to remit payment to the state equal to tax on  interactive  gaming
    24  revenue  imposed  under section fifteen hundred six of this article with
    25  respect to interactive gaming;
    26    (d) not to offer or to conduct mobile gaming  other  than  interactive
    27  gaming  pursuant  to this section unless such mobile gaming is otherwise
    28  authorized by state or federal law; and
    29    (e) to locate the server or other equipment used by the  Indian  Tribe
    30  or  its  agent to accept interactive gaming at a casino that has applied
    31  for and is eligible to register as an interactive gaming licensee and to
    32  pay the actual cost of hosting the server or other equipment  as  deter-
    33  mined by the commission.
    34    9.  No  interactive  gaming  may be conducted within an Indian Tribe's
    35  exclusive geographic  area  unless  such  Indian  Tribe  with  exclusive
    36  geographic  right  to  that  area is registered as an interactive gaming
    37  licensee. Interactive gaming licensees shall use geo-location  and  geo-
    38  fencing technology to ensure that interactive gaming is not available to
    39  persons  who  are  physically  located  in  an  Indian Tribe's exclusive
    40  geographic area, unless such  Indian  Tribe  with  exclusive  geographic
    41  right to that area is registered as an interactive gaming licensee under
    42  this section.
    43    § 1503. Entity  licensing.  1.  A  qualifying  entity shall receive an
    44  interactive gaming license  upon  commission  approval.  An  interactive
    45  gaming  licensee  shall  not commence interactive gaming until such time
    46  that the commission has promulgated rules and regulations  and  provided
    47  approval  to an interactive gaming licensee to commence operations. Such
    48  rules and regulations shall be promulgated, and  approval  issued  in  a
    49  timely  manner,  but no later than one hundred twenty days following the
    50  effective date of this article.
    51    2. A qualifying entity shall not incur  any  additional  licensing  or
    52  administrative  fees,  or  additional  expenses  related  to interactive
    53  gaming outside of those set forth in this section.
    54    3. As a condition of licensing, the commission shall require that each
    55  casino, video  lottery  terminal  facility  or  operator  authorized  to
    56  conduct  mobile  interactive  gaming  wagering pay a one-time fee of two

        A. 9198                             7
     1  million dollars. As a condition of approval of any independent  contrac-
     2  tor to provide an operator's mobile interactive gaming wagering platform
     3  and  display its brand, the commission shall require that such independ-
     4  ent contractor pay a one-time fee of ten million dollars.
     5    4. A qualifying entity may immediately and indefinitely conduct inter-
     6  active  gaming  upon  the  effective  date  of this article. Interactive
     7  gaming may be conducted by the means prescribed in this article pursuant
     8  to regulations governing game rules and operation for  sports  wagering,
     9  slot  machines,  poker,  table  games,  or  any other game as defined in
    10  subdivision four, nineteen, thirty-eight, thirty-nine, or  forty-one  of
    11  section  thirteen  hundred  one of this chapter until such time that the
    12  commission has adopted rules related to the  conduct  and  operation  of
    13  interactive games.
    14    § 1504. Individual,  enterprise and vendor licensing. Each interactive
    15  gaming licensee may contract  with  an  entity  to  conduct  interactive
    16  gaming, in accordance with the regulations of the commission. Such enti-
    17  ty  shall  obtain  a  license  as  a  casino  vendor enterprise prior to
    18  execution of any such contract, and such license shall be issued  pursu-
    19  ant  to the provisions of sections thirteen hundred twenty-six and thir-
    20  teen hundred twenty-seven of this chapter and  in  accordance  with  the
    21  regulations promulgated by the commission.
    22    § 1505. Requirements  for conduct and operation of interactive gaming.
    23  1.  The live gaming studio used to conduct live dealer games  shall  not
    24  be  required  to be located within the premises of a gaming facility, as
    25  defined in subdivision twenty-three of section thirteen hundred  one  of
    26  this chapter, but must be located within the state of New York.
    27    2.  An  applicant  for  an interactive gaming license shall produce an
    28  affidavit stating it shall enter into a labor peace agreement with labor
    29  organizations that are actively engaged in representing or attempting to
    30  represent gaming or hospitality industry  workers  in  the  state  as  a
    31  mandatory  component  of  its  application  for  an  interactive  gaming
    32  license; provided however, that if such applicant already  has  a  labor
    33  peace  agreement pertaining to its existing operations, such labor peace
    34  agreement may satisfy the requirements of this subdivision  so  long  as
    35  such  labor  peace agreement is updated to pertain to interactive gaming
    36  operations authorized under this article.  In order for  the  commission
    37  to  issue an interactive gaming license and for any operations involving
    38  live studio dealers to commence, the applicant for an interactive gaming
    39  license must produce documentation that it  has  entered  into  a  labor
    40  peace agreement with each labor organization that is actively engaged in
    41  representing and attempting to represent gaming and hospitality industry
    42  workers  in the state. The commission shall make the maintenance of such
    43  a labor peace agreement an ongoing material condition  of  licensure  as
    44  long  as  the interactive gaming licensee makes use of live studio deal-
    45  ers. A license holder shall, as a condition of its license, ensure  that
    46  operations  at  a  live gaming studio that involve gaming or hospitality
    47  industry employees or  are  conducted  by  contractors,  subcontractors,
    48  licensees,  assignees, tenants or subtenants shall be done under a labor
    49  peace agreement containing the same  provisions  as  specified  in  this
    50  subdivision.
    51    3.  Advertisements  for  contests and prizes offered by an interactive
    52  gaming licensee shall not target prohibited participants, persons  under
    53  twenty-one years of age, or self-excluded persons.
    54    4.  Interactive gaming licensees shall develop and prominently display
    55  procedures on the main page of such interactive gaming licensee's  plat-
    56  form  for the filing of a complaint by an authorized participant against

        A. 9198                             8
     1  such interactive gaming licensee. An initial response shall be given  by
     2  such  interactive  gaming licensee to such authorized participant filing
     3  the complaint within forty-eight hours of receipt. A  complete  response
     4  shall  be  given  by such interactive gaming licensee to such authorized
     5  participant filing the complaint within ten business days of receipt. An
     6  authorized participant may file a complaint alleging a violation of  the
     7  provisions of this article with the commission.
     8    5. Interactive gaming licensees shall maintain records of all accounts
     9  belonging  to  authorized  participants  and  retain such records of all
    10  transactions in such accounts for the preceding  five  years,  provided,
    11  however,  that such records belonging to an authorized participant shall
    12  be readily accessible and downloadable, without cost, by such authorized
    13  participant.
    14    6. The server or other equipment  which  is  used  by  an  interactive
    15  gaming licensee to accept interactive gaming shall be physically located
    16  in  the  licensed  gaming  facility and be limited to interactive gaming
    17  related activities in accordance with  regulations  promulgated  by  the
    18  commission.
    19    7.  All  interactive gaming initiated in this state shall be deemed to
    20  take place at the licensed gaming facility where  the  server  or  other
    21  equipment  used  by an interactive gaming licensee to accept interactive
    22  gaming is located, regardless of the authorized  participant's  physical
    23  location within this state.
    24    8.  Subject  to regulations promulgated by the commission, an interac-
    25  tive gaming licensee may allow for authorized participants to sign up to
    26  create and fund accounts on its interactive gaming platform. An interac-
    27  tive gaming licensee shall adopt reasonable procedures  to  ensure  that
    28  authorized participants have no more than one interactive gaming account
    29  with  the  interactive gaming licensee. However, nothing in this article
    30  shall prohibit the use of a single account for a mobile sports  wagering
    31  account  under  section thirteen hundred sixty-seven of this chapter and
    32  an interactive gaming  account  set  forth  pursuant  to  this  article;
    33  provided  however, that interactive gaming licensees shall keep separate
    34  and distinct records of mobile sports wagering activity and  interactive
    35  gaming  activity  on  such  accounts  pursuant  to rules and regulations
    36  promulgated by the commission.
    37    9. Authorized participants may deposit and withdraw funds to and  from
    38  their  account  on an interactive gaming platform through electronically
    39  recognized payment methods, including but not limited  to  credit  cards
    40  and  debit  cards,  or  via  any other means approved by the commission;
    41  provided, however, that in  the  case  of  credit  card  payments,  each
    42  authorized  participant's  account  per  licensee  shall be limited to a
    43  credit card spending amount of two thousand  five  hundred  dollars  per
    44  year;  and  provided  further,  however,  that such limitation shall not
    45  apply to other payment methods or to debit cards. No interactive  gaming
    46  licensee  shall be authorized to provide a line of credit to any author-
    47  ized participant.
    48    10. The commission, by regulation, may authorize  and  promulgate  any
    49  rules necessary to implement agreements with other states, or authorized
    50  agencies thereof to (a) enable patrons in those states to participate in
    51  interactive  gaming  offered  by  licensees  under  this article, or (b)
    52  enable patrons in  this  state  to  participate  in  interactive  gaming
    53  offered by licensees under the laws of those other states, provided that
    54  such  other state or authorized agency applies suitability standards and
    55  review materially consistent with the provisions of this article.

        A. 9198                             9
     1    11. Any regulations  adopted  pursuant  to  subdivision  ten  of  this
     2  section  must  set forth provisions that address (a) any arrangements to
     3  share revenue between New York and any  other  state  or  agency  within
     4  another  state, and (b) arrangements to ensure the integrity of interac-
     5  tive gaming offered pursuant to any such agreement and the protection of
     6  patrons located in this state.
     7    § 1506. Taxation and fees. 1. For the privilege of conducting interac-
     8  tive  gaming  in the state, interactive gaming licensees shall pay a tax
     9  equivalent to thirty and one-half percent of base taxable  gross  gaming
    10  revenue  derived from interactive gaming. Interactive gaming tax revenue
    11  shall be separately maintained and returned to  the  state  for  deposit
    12  into the state lottery fund for education aid.
    13    2.  From  the state tax collected, the commission shall distribute, in
    14  conjunction with the office of addiction services and  supports,  eleven
    15  million  dollars  annually  for problem gambling education and treatment
    16  purposes.
    17    3. (a) In each fiscal  year  in  which  interactive  gaming  licensees
    18  accept  interactive  gaming wagers, the commission shall pay, on a quar-
    19  terly basis, one-quarter of one-tenth of one percent of that tax imposed
    20  on interactive gaming by this section to  a  fund  established  for  the
    21  purpose of employee training, responsible gaming training and education,
    22  health,  and development; provided however, that the amount budgeted for
    23  such a program shall be no less than  twenty-five  million  dollars  for
    24  each fiscal year.
    25    (b)  An individual must be an employee of a licensed commercial gaming
    26  facility represented by a labor  organization  having  a  valid  project
    27  labor  agreement  to  be an eligible participant in such fund. Such fund
    28  shall be administered by the representative labor organization or organ-
    29  izations having a valid project labor agreement.
    30    § 1507. Responsible gaming requirements. 1.  As a condition of  licen-
    31  sure, each operator shall implement the following measures:
    32    (a)  limit  each authorized participant to one active and continuously
    33  used account on their platform, and prevent anyone they know, or  should
    34  have  known  to  be  a  prohibited  bettor, from maintaining accounts or
    35  participating in any interactive gaming wagering offered by such  opera-
    36  tor;
    37    (b)  adopt appropriate safeguards to ensure, to a reasonable degree of
    38  certainty, that authorized participants are  physically  located  within
    39  the state when engaging in mobile interactive gaming wagering;
    40    (c)  prohibit persons under twenty-one years of age from participating
    41  in any mobile interactive gaming wagering;
    42    (d) enable authorized participants to exclude themselves from interac-
    43  tive gaming wagering and take reasonable steps to prevent  such  bettors
    44  from engaging in wagering from which they have excluded themselves;
    45    (e)  permit any authorized participant to permanently close an account
    46  registered to such bettor, on any and all platforms  supported  by  such
    47  operator, at any time and for any reason;
    48    (f)  implement  measures to protect the privacy and online security of
    49  authorized participants and their accounts;
    50    (g) list on each website, in a prominent place, information concerning
    51  assistance for compulsive play in New York state, including a  toll-free
    52  number  directing  callers  to  reputable  resources  containing further
    53  information, which shall be free of charge;
    54    (h) permit account holders to establish self-exclusion  gaming  limits
    55  on  a daily, weekly, and monthly basis that enable the account holder to

        A. 9198                            10

     1  identify the maximum amount of  money  an  account  holder  may  deposit
     2  during such period of time;
     3    (i)  maintain a publicly accessible internet page dedicated to respon-
     4  sible play, a link to which shall appear on the operator's  website  and
     5  in  any mobile application or electronic platform on which an authorized
     6  participant may place wagers. Such responsible play page  shall  include
     7  (i)  a statement of the interactive gaming licensee's policy and commit-
     8  ment to responsible gaming, information regarding, or links to  informa-
     9  tion  regarding,  the  risks  associated with gambling and the potential
    10  signs of problem gaming; (ii) the availability of self-imposed responsi-
    11  ble gaming limits; (iii) a link to a problem gaming  webpage  maintained
    12  by  the  office  of addiction services and supports; and (iv) such other
    13  information or statements as the commission may require by rule;
    14    (j) submit annually a responsible gaming plan to the  commission.  The
    15  commission shall publish the requirements for the plan;
    16    (k)  ensure  no  wagering shall be based on game types not approved by
    17  the commission;
    18    (l) when an account holder's lifetime  deposits  exceed  two  thousand
    19  five  hundred dollars, the interactive gaming licensee shall prevent any
    20  wagering until the patron acknowledges that the account holder  has  met
    21  the  deposit  threshold  and  may  elect to establish responsible gaming
    22  limits or close the account, and the account holder has received disclo-
    23  sures from the mobile sports wagering operator concerning problem gambl-
    24  ing resources. Once a patron has reached their  lifetime  deposit,  such
    25  patron shall annually make the acknowledgement required by this subdivi-
    26  sion;
    27    (m)  submit  annually  a  problem gaming plan that was approved by the
    28  commission in consultation with the office  of  addiction  services  and
    29  supports  that  includes (i) the objectives of and timetables for imple-
    30  menting such plan; (ii) identification of the  persons  responsible  for
    31  implementing and maintaining such plan; (iii) procedures for identifying
    32  users  with  suspected or known problem gaming behavior; (iv) procedures
    33  for providing information to users concerning problem gaming identifica-
    34  tion and resources; (v) procedures to prevent gaming  by  persons  under
    35  twenty-one  years  of age and self-excluded persons; and (vi) such other
    36  problem gaming information as the commission may require by rule;
    37    (n) when referencing the chances or likelihood of  winning  in  adver-
    38  tisements  or  upon placement of an interactive gaming wager, make clear
    39  and  conspicuous  statements  that  are  not  inaccurate  or  misleading
    40  concerning the chances of winning and the number of winners;
    41    (o)  offer  introductory  procedures  for authorized participants that
    42  shall be prominently displayed on the main page  of  interactive  gaming
    43  licensees' websites or applications that explain interactive gaming; and
    44    (p)  offer  all  authorized  participants access to his or her account
    45  history and account details.
    46    2. Interactive gaming licensees shall not offer any interactive gaming
    47  wager based on any activity, game, or other event that is deemed prohib-
    48  ited or against public policy by the commission.
    49    3. All interactive gaming shall be conducted in compliance  with  this
    50  article.
    51    4.  The  commission,  in  conjunction  with  the  office  of addiction
    52  services and supports, shall annually  prepare  and  distribute  to  the
    53  governor  and  the  legislature  a  report  on the impact of interactive
    54  gaming on problem gamblers in New York, including, to the extent practi-
    55  cable, an analysis of demographics which are disproportionately impacted
    56  by problem gambling. The  costs  associated  with  the  preparation  and

        A. 9198                            11
     1  distribution  of such report shall be borne by interactive gaming licen-
     2  sees and the commission shall be authorized  to  assess  a  fee  against
     3  interactive  gaming  licensees for these purposes. The commission, or in
     4  the  case  that  an  independent integrity monitor has been established,
     5  such independent integrity monitor, shall also report biannually to  the
     6  governor  and  the legislature on the effectiveness of the statutory and
     7  regulatory controls in place to  ensure  the  integrity  of  interactive
     8  gaming operations.
     9    §  5.  Section 1602 of the tax law is amended by adding a new subdivi-
    10  sion 7 to read as follows:
    11    7. "Interactive lottery gaming" means wagering on  authorized  lottery
    12  games  online  by  any  system or method of wagering, including, but not
    13  limited to, communication through  internet  websites,  accessed  via  a
    14  mobile  device,  tablet or laptop or desktop computer, and mobile device
    15  applications. An interactive  lottery  game  shall  include  any  lawful
    16  lottery  game authorized by the commission including joint, multi-juris-
    17  diction and out-of-state lottery games, daily number games, lotto games,
    18  quick draw and instant cash.
    19    § 6. Paragraph 1 of subdivision c of section 1612 of the tax  law,  as
    20  amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
    21  follows:
    22    1. The  specifications  for  interactive  lottery  and  video  lottery
    23  gaming,  including any joint, multi-jurisdiction, and out-of-state video
    24  lottery gaming, shall be designed in such a manner as to pay prizes that
    25  average no less than [ninety] forty percent,  but  no  more  than  sixty
    26  percent of sales.
    27    §  7. The tax law is amended by adding a new section 1617-b to read as
    28  follows:
    29    § 1617-b. Interactive lottery tickets.  The  division  of  lottery  is
    30  hereby   authorized to conduct sales of lottery tickets on the internet,
    31  pursuant to rules and regulations to be promulgated by the  division  of
    32  lottery,  which shall be known as interactive lottery tickets. Except as
    33  otherwise permitted pursuant to section  sixteen  hundred  seventeen  of
    34  this article, the division shall restrict interactive lottery tickets to
    35  transactions initiated and received or otherwise made exclusively within
    36  the state of New York.
    37    § 8. This act shall take effect immediately.
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