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A11144 Summary:

BILL NOA11144A
 
SAME ASSAME AS S07900-C
 
SPONSORPretlow
 
COSPNSRSantabarbara, Lupardo, Hooper, Walker, Miller B, Murray, Brabenec, Tague, DenDekker, Garbarino, Rosenthal D, Weprin
 
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.
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A11144 Actions:

BILL NOA11144A
 
06/08/2018referred to racing and wagering
06/18/2018amend and recommit to racing and wagering
06/18/2018print number 11144a
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A11144 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                        11144--A
 
                   IN ASSEMBLY
 
                                      June 8, 2018
                                       ___________
 
        Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Pretlow,
          Santabarbara, Lupardo, Hooper, Walker, B. Miller,  Murray,  DenDekker,
          Garbarino,  D. Rosenthal,  Weprin)  --  read  once and referred to the
          Committee  on  Racing  and  Wagering  --  committee  discharged,  bill
          amended,  ordered reprinted as amended and recommitted to said commit-
          tee

        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;
    21    (d)  "Brand"  means  the  name  and  logo on the interface of a mobile
    22  application or internet website accessed via a mobile device or computer
    23  which authorized sports bettors use to access a sports betting platform;
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14923-20-8

        A. 11144--A                         2
 
     1    (e) "Casino" means a licensed gaming facility  at  which  gambling  is
     2  conducted pursuant to the provisions of this article;
     3    [(b)]  (f)  "Commission"  means the commission established pursuant to
     4  section one hundred two of this chapter;
     5    [(c)] (g) "Collegiate sport  or  athletic  event"  means  a  sport  or
     6  athletic  event  offered  or sponsored by or played in connection with a
     7  public or private institution that offers  educational  services  beyond
     8  the secondary level;
     9    (h)  "Exchange  wagering" means a form of wagering in which an author-
    10  ized sports bettor, on the one hand, and one or more  authorized  sports
    11  bettors,  a  casino  or an agent or an operator, on the other hand place
    12  identically opposing sports wagers on an exchange operated by  a  casino
    13  or an agent or an operator;
    14    (i)  "Global risk management" means the direction, management, consul-
    15  tation and/or instruction for purposes of managing risks associated with
    16  sports wagering conducted pursuant to  this  section  and  includes  the
    17  setting  and  adjustment  of  betting  lines, point spreads, or odds and
    18  whether to place layoff bets as permitted by this section;
    19    [(d)] (j) "High school sport or  athletic  event"  means  a  sport  or
    20  athletic  event  offered  or sponsored by or played in connection with a
    21  public or private institution that  offers  education  services  at  the
    22  secondary level;
    23    (k)  "Horse  racing event" means any sport or athletic event conducted
    24  in New York state subject to the  provisions  of  articles  two,  three,
    25  four,  five,  six, nine, ten and eleven of this chapter, or any sport or
    26  athletic event conducted outside of New York state, which  if  conducted
    27  in New York state would be subject to the provisions of this chapter;
    28    (l)  "In-play  sports  wager"  means a sports wager placed on a sports
    29  event after the sports event has begun and before it ends;
    30    (m) "Layoff bet" means a sports wager placed by a casino  sports  pool
    31  with another casino sports pool;
    32    (n) "Minor" means any person under the age of twenty-one years;
    33    (o) "Mobile sports wagering platform" or "platform" means the combina-
    34  tion  of  hardware, software, and data networks used to manage, adminis-
    35  ter, or control sports wagering and any associated wagers accessible  by
    36  any electronic means including mobile applications and internet websites
    37  accessed via a mobile device or computer;
    38    (p)  "Official  league  data" means statistics, results, outcomes, and
    39  other data relating to a sporting event that have been obtained from the
    40  relevant sports governing body or an entity expressly authorized by  the
    41  sports governing body to provide such information to casinos;
    42    (q)  "Operator"  means  a casino which has elected to operate a sports
    43  pool or the agent of such licensed gaming facility;
    44    [(e)] (r) "Professional sport or athletic event"  means  an  event  at
    45  which  two  or more persons participate in sports or athletic events and
    46  receive compensation in excess of  actual  expenses  for  their  partic-
    47  ipation in such event;
    48    (s) "Prohibited sports bettor" means:
    49    (i) any officer or employee of the commission;
    50    (ii) any principal or key employee of a casino or affiliate, except as
    51  may be permitted by the commission for good cause shown;
    52    (iii)  any  casino  gaming  or  non-gaming employee at the casino that
    53  employs such person and at any affiliate that has an agreement with that
    54  casino;
    55    (iv) any contractor,  subcontractor,  or  consultant,  or  officer  or
    56  employee  of  a contractor, subcontractor, or consultant, of a casino if

        A. 11144--A                         3
 
     1  such person is directly involved in  the  operation  or  observation  of
     2  sports  wagering,  or  the  processing  of  sports  wagering  claims  or
     3  payments;
     4    (v)  Any  person  subject  to  a  contract with the commission if such
     5  contract contains a provision prohibiting such person from participating
     6  in sports wagering;
     7    (vi) Any spouse, child, brother, sister or parent residing as a member
     8  of the same household in the principal place of  abode  of  any  of  the
     9  foregoing  persons  at  the  same  casino  where the foregoing person is
    10  prohibited from participating in sports wagering;
    11    (vii) any individual with access to non-public  confidential  informa-
    12  tion about sports wagering;
    13    (viii)  any  amateur  or  professional  athlete if the sports wager is
    14  based on any sport or athletic event overseen by  the  athlete's  sports
    15  governing body;
    16    (ix)  any sports agent, owner or employee of a team, player and umpire
    17  union personnel, and employee referee, coach or  official  of  a  sports
    18  governing  body,  if  the sports wager is based on any sport or athletic
    19  event overseen by the individual's sports governing body;
    20    (x) any individual placing a wager as an agent or proxy for an  other-
    21  wise prohibited sports bettor; or
    22    (xi) any minor;
    23    [(f)]  (t)  "Prohibited  sports  event" means any [collegiate sport or
    24  athletic event that takes place in New York or a sport or athletic event
    25  in which any New York college team participates regardless of where  the
    26  event takes place] high school sport or athletic event;
    27    [(g)]  (u) "Registered sports governing body" means a sports governing
    28  body that is headquartered in the United States and who  has  registered
    29  with  the  commission to receive royalty fee revenue in such form as the
    30  commission may require;
    31    (v) "Sports event" means any professional sport or athletic event  and
    32  any collegiate sport or athletic event, except a prohibited sports event
    33  or a horse racing event;
    34    [(h)]   (w)  "Sports  governing  body"  means  the  organization  that
    35  prescribes final rules and enforces codes of conduct with respect  to  a
    36  sporting event and participants therein;
    37    (x) "Sports pool" means the business of accepting wagers on any sports
    38  event by any system or method of wagering; [and
    39    (i)]  (y) "Sports wager" means cash or cash equivalent that is paid by
    40  an authorized sports bettor to a casino to participate in sports  wager-
    41  ing offered by such casino;
    42    (z) "Sports wagering" means wagering on sporting events or any portion
    43  thereof, or on the individual performance statistics of athletes partic-
    44  ipating  in  a sporting event, or combination of sporting events, by any
    45  system or method of wagering, including, but not limited  to,  in-person
    46  communication  and  electronic  communication  through internet websites
    47  accessed via a mobile device or computer and mobile device applications.
    48  Any wager through electronic communication is deemed made at  the  phys-
    49  ical  location  of  the server or other equipment used by an operator to
    50  accept mobile  sports  wagering.    The  term  "sports  wagering"  shall
    51  include,  but is not limited to, single-game bets, teaser bets, parlays,
    52  over-under bets, moneyline, pools, exchange wagering, in-game  wagering,
    53  in-play bets, proposition bets and straight bets;
    54    (aa)  "Sports  wagering  gross revenue" means: (i) the amount equal to
    55  the total of all sports wagers not  attributable  to  prohibited  sports
    56  events that an operator collects from all players, less the total of all

        A. 11144--A                         4
 
     1  sums  not  attributable to prohibited sports events paid out as winnings
     2  to all sports bettors, however, that the total of all sums paid  out  as
     3  winnings  to  sports bettors shall not include the cash equivalent value
     4  of  any merchandise or thing of value awarded as a prize, or (ii) in the
     5  case of exchange wagering pursuant to this section,  the  commission  on
     6  winning sports wagers by authorized sports bettors retained by the oper-
     7  ator.  The  issuance  to  or  wagering by authorized sports bettors at a
     8  casino of any promotional gaming credit shall not  be  taxable  for  the
     9  purposes of determining sports wagering gross revenue;
    10    (bb)  "Sports  wagering lounge" means an area wherein a sports pool is
    11  operated;
    12    (cc) "Tier one sports wager" means a sports wager that  is  determined
    13  solely by the final score or final outcome of the sports event;
    14    (dd) "Tier two sports wager" means an in-play sports wager that is not
    15  a tier one sports wager; and
    16    (ee)  "Tier three sports wager" means a sports wager that is neither a
    17  tier one nor a tier two sports wager.
    18    2. No gaming facility may conduct sports wagering until such  time  as
    19  there has been a change in federal law authorizing such or upon a ruling
    20  of a court of competent jurisdiction that such activity is lawful.
    21    3.  (a) In addition to authorized gaming activities, a licensed gaming
    22  facility may when authorized by subdivision two of this section  operate
    23  a sports pool upon the approval of the commission and in accordance with
    24  the  provisions  of  this section and applicable regulations promulgated
    25  pursuant to this article. The commission shall hear and decide  promptly
    26  and  in  reasonable  order  all  applications for a license to operate a
    27  sports pool, shall have the general responsibility for  the  implementa-
    28  tion  of  this section and shall have all other duties specified in this
    29  section with regard to the operation of a sports pool.  The  license  to
    30  operate a sports pool shall be in addition to any other license required
    31  to  be  issued  to  operate  a  gaming facility. No license to operate a
    32  sports pool shall be issued by the commission to any  entity  unless  it
    33  has  established  its  financial stability, integrity and responsibility
    34  and its good character, honesty and integrity.
    35    No later than five years after the date of the issuance of  a  license
    36  and  every  five  years  thereafter or within such lesser periods as the
    37  commission may direct, a licensee shall submit to  the  commission  such
    38  documentation  or  information  as  the  commission  may  by  regulation
    39  require, to demonstrate to the satisfaction of the executive director of
    40  the commission that the licensee continues to meet the  requirements  of
    41  the law and regulations.
    42    (b)  A  sports  pool  shall  be  operated  in a sports wagering lounge
    43  located at a casino.  The  lounge  shall  conform  to  all  requirements
    44  concerning  square  footage,  design,  equipment,  security measures and
    45  related matters which the commission shall by regulation prescribe.
    46    (c) The operator of a sports pool shall establish or display the  odds
    47  at which wagers may be placed on sports events.
    48    (d) An operator shall accept wagers on sports events only from persons
    49  physically  present  in  the  sports  wagering lounge, or through mobile
    50  sports wagering offered pursuant to section thirteen hundred  sixty-sev-
    51  en-a  of  this title. A person placing a wager shall be at least twenty-
    52  one years of age.
    53    (e) An operator may also accept layoff bets as long as the  authorized
    54  sports  pool  places  such wagers with another authorized sports pool or
    55  pools in accordance with regulations of the commission.  A  sports  pool
    56  that  places  a  layoff  bet  shall inform the sports pool accepting the

        A. 11144--A                         5
 
     1  wager that the wager is being placed by a sports pool and shall disclose
     2  its identity.
     3    (f)  An  operator  may  utilize global risk management pursuant to the
     4  approval of the commission.
     5    (g) An operator shall not admit into the sports  wagering  lounge,  or
     6  accept wagers from, any person whose name appears on the exclusion list.
     7    [(f)]  (h)  The  holder  of  a  license  to  operate a sports pool may
     8  contract with [an entity] an agent to conduct any or all aspects of that
     9  operation, or the operation of mobile sports wagering  offered  pursuant
    10  to  section  thirteen hundred sixty-seven-a of this title, including but
    11  not limited to brand, marketing and customer service, in accordance with
    12  the regulations of the commission. [That entity] Each agent shall obtain
    13  a license as a casino vendor enterprise prior to the  execution  of  any
    14  such  contract,  and  such  license  shall  be  issued  pursuant  to the
    15  provisions of section one thousand three hundred  twenty-seven  of  this
    16  article  and  in  accordance  with  the  regulations  promulgated by the
    17  commission.
    18    [(g)] (i) If any provision of this article or its application  to  any
    19  person  or circumstance is held invalid, the invalidity shall not affect
    20  other provisions or applications of this  article  which  can  be  given
    21  effect without the invalid provision or application, and to this end the
    22  provisions of this article are severable.
    23    4.  (a)  All  persons employed directly in wagering-related activities
    24  conducted within a sports wagering lounge shall be licensed as a  casino
    25  key  employee  or  registered as a gaming employee, as determined by the
    26  commission. All other employees who are working in the  sports  wagering
    27  lounge  may  be required to be registered, if appropriate, in accordance
    28  with regulations of the commission.
    29    (b) Each operator of a sports pool shall designate one or more  casino
    30  key  employees  who shall be responsible for the operation of the sports
    31  pool. At least one such casino key employee shall  be  on  the  premises
    32  whenever sports wagering is conducted.
    33    5.  Except as otherwise provided by this article, the commission shall
    34  have the authority to regulate sports pools and the  conduct  of  sports
    35  wagering under this article to the same extent that the commission regu-
    36  lates  other  gaming.  No casino shall be authorized to operate a sports
    37  pool unless it has produced information, documentation,  and  assurances
    38  concerning  its  financial  background  and  resources,  including  cash
    39  reserves, that are sufficient to demonstrate that it has  the  financial
    40  stability,  integrity,  and  responsibility to operate a sports pool. In
    41  developing rules and regulations  applicable  to  sports  wagering,  the
    42  commission  shall  examine  the  regulations implemented in other states
    43  where sports wagering is conducted and shall,  as  far  as  practicable,
    44  adopt  a  similar  regulatory framework. The commission shall promulgate
    45  regulations necessary to carry  out  the  provisions  of  this  section,
    46  including, but not limited to, regulations governing the:
    47    (a)  amount  of  cash  reserves to be maintained by operators to cover
    48  winning wagers;
    49    (b) acceptance of wagers on a series of sports events;
    50    (c) maximum wagers which may be accepted by an operator from  any  one
    51  patron on any one sports event;
    52    (d) type of wagering tickets which may be used;
    53    (e) method of issuing tickets;
    54    (f) method of accounting to be used by operators;
    55    (g) types of records which shall be kept;
    56    (h) use of credit and checks by patrons;

        A. 11144--A                         6
 
     1    (i) the process by which a casino may place a layoff bet;
     2    (j) the use of global risk management;
     3    (k) type of system for wagering; and
     4    [(j)] (l) protections for a person placing a wager.
     5    6.  Each  operator  shall  adopt  comprehensive  house rules governing
     6  sports  wagering  transactions  with  its  [patrons]  authorized  sports
     7  bettors.  The  rules  shall  specify  the  amounts to be paid on winning
     8  wagers and the effect of schedule changes.   The house  rules,  together
     9  with  any  other  information the commission deems appropriate, shall be
    10  conspicuously displayed in the sports wagering lounge  and  included  in
    11  the  terms  and  conditions  of  the account wagering system, and copies
    12  shall be made readily available to patrons.
    13    7. (a) Each casino that offers sports wagering shall annually submit a
    14  report to the commission no later than the twenty-eighth of February  of
    15  each year, which shall include the following information:
    16    (i)  the total amount of sports wagers received from authorized sports
    17  bettors;
    18    (ii) the total amount of prizes awarded to authorized sports bettors;
    19    (iii) the total amount of sports wagering gross  revenue  received  by
    20  the casino;
    21    (iv)  the  total  amount contributed in sports betting royalty revenue
    22  pursuant to subdivision eight of this section;
    23    (v) the total amount of  wagers  received  on  each  sports  governing
    24  body's sporting events;
    25    (vi)  the  total number of authorized sports bettors that requested to
    26  exclude themselves from sports wagering; and
    27    (vii) any additional information that the commission  deems  necessary
    28  to carry out the provisions of this article.
    29    (b) Upon the submission of such annual report, to such extent that the
    30  commission  deems  it to be in the public interest, the commission shall
    31  be authorized to conduct a financial audit of any casino, at  any  time,
    32  to ensure compliance with this article.
    33    (c) The commission shall annually publish a report based on the aggre-
    34  gate  information  provided  by all casinos pursuant to paragraph (a) of
    35  this subdivision, which shall be published on the  commission's  website
    36  no  later  than  one  hundred  eighty  days  after  the deadline for the
    37  submission of individual reports as specified in such paragraph (a).
    38    8. (a) Within thirty days of the end of each calendar quarter, a casi-
    39  no offering sports wagering shall  remit  to  the  commission  a  sports
    40  wagering  royalty  fee  of  one-fifth (.20) of one percent of the amount
    41  wagered on  sports  events  conducted  by  registered  sports  governing
    42  bodies.    The  fee  shall  be  remitted on a form as the commission may
    43  require, on which the casino shall identify the percentage  of  wagering
    44  during  the  reporting  period  attributable  to  each  registered sport
    45  governing body's sports events.
    46    (b) No later than the thirtieth of April of each  year,  a  registered
    47  sports governing body may submit a claim for disbursement of the royalty
    48  fee  funds  remitted  by  casinos in the previous calendar year on their
    49  respective sports events.  Within thirty days of  submitting  its  claim
    50  for  disbursement,  the registered sports governing body shall meet with
    51  the commission to provide the  commission  with  evidence  of  policies,
    52  procedures  and  training  programs  it  has  implemented to protect the
    53  integrity of its sports events.
    54    (c) Within thirty days of  its  meeting  with  the  registered  sports
    55  governing  body,  the  commission  shall  approve  a  timely  claim  for
    56  disbursement.

        A. 11144--A                         7
 
     1    (d) The commission's meeting with a registered sports  governing  body
     2  under  paragraph  (b) of this subdivision, shall be closed to the public
     3  and exempt from the open meetings law.  Any  evidence  provided  to  the
     4  commission under paragraph (b) of this subdivision shall be confidential
     5  and exempt from disclosure under the state freedom of information law.
     6    9. For the privilege of conducting sports wagering in the state, casi-
     7  nos  shall  pay  a tax equivalent to eight and one-half percent of their
     8  sports wagering gross revenue.
     9    10. The commission shall pay into the commercial gaming  revenue  fund
    10  established  pursuant  to section ninety-seven-nnnn of the state finance
    11  law eighty-five percent of the state tax imposed by  this  section;  any
    12  interest  and  penalties  imposed  by  the  commission relating to those
    13  taxes; all penalties levied and collected by  the  commission;  and  the
    14  appropriate  funds,  cash  or prizes forfeited from sports wagering. The
    15  commission shall pay into the commercial gaming fund five percent of the
    16  state tax imposed by this section to be distributed for problem gambling
    17  education and treatment purposes pursuant to paragraph a of  subdivision
    18  four  of section ninety-seven-nnnn of the state finance law. The commis-
    19  sion shall pay into the commercial gaming fund five percent of the state
    20  tax imposed by this section to be distributed for the cost of regulation
    21  pursuant to paragraph c of subdivision four of section ninety-seven-nnnn
    22  of the state finance law.  The commission shall pay into the  commercial
    23  gaming  fund five percent of the state tax imposed by this section to be
    24  distributed in the same formula as market  origin  credits  pursuant  to
    25  section  one  hundred  fifteen-b  of  this chapter. The commission shall
    26  require at least monthly deposits by the casino of any payments pursuant
    27  to subdivision nine of this section, at such times,  under  such  condi-
    28  tions,  and  in  such  depositories  as shall be prescribed by the state
    29  comptroller. The deposits shall be deposited to the credit of the  state
    30  commercial  gaming  revenue fund. The commission shall require a monthly
    31  report and reconciliation statement to be filed with it on or before the
    32  tenth day of each month, with respect to  gross  revenues  and  deposits
    33  received and made, respectively, during the preceding month.
    34    11.  The  commission  may perform audits of the books and records of a
    35  casino, at such times and intervals as it  deems  appropriate,  for  the
    36  purpose  of  determining  the  sufficiency  of tax payments. If a return
    37  required with regard to obligations imposed is not filed, or if a return
    38  when filed or is determined by the commission to be incorrect or  insuf-
    39  ficient  with or without an audit, the amount of tax due shall be deter-
    40  mined by the commission. Notice of such determination shall be given  to
    41  the  casino  liable for the payment of the tax. Such determination shall
    42  finally and irrevocably fix the tax unless the casino against whom it is
    43  assessed, within thirty days after receiving  notice  of  such  determi-
    44  nation,  shall  apply to the commission for a hearing in accordance with
    45  the regulations of the commission.
    46    12. Nothing in this section shall apply to interactive fantasy  sports
    47  offered  pursuant  to article fourteen of this chapter.  Nothing in this
    48  section authorizes any entity that conducts interactive  fantasy  sports
    49  offered  pursuant  to article fourteen of this chapter to conduct sports
    50  wagering unless it separately qualifies for, and obtains,  authorization
    51  pursuant to this section.
    52    13.  A  casino that is also licensed under article three of this chap-
    53  ter, and must maintain racing pursuant to paragraph (b)  of  subdivision
    54  one  of  section  thirteen  hundred fifty-five of this chapter, shall be
    55  allowed to offer pari-mutuel wagering on horse racing events in  accord-
    56  ance  with  their  license under article three of this chapter. Notwith-

        A. 11144--A                         8
 
     1  standing subparagraph (ii) of paragraph c of subdivision two of  section
     2  one  thousand  eight  of  this  chapter, a casino located in the city of
     3  Schenectady shall be allowed to  offer  pari-mutuel  wagering  on  horse
     4  racing  events, provided such wagering is conducted by the regional off-
     5  track betting corporation in such region as the casino is  located.  Any
     6  other  casino  shall  be  allowed to offer pari-mutuel wagering on horse
     7  racing events, provided such wagering is conducted by the regional  off-
     8  track  betting corporation in such region as the casino is located.  Any
     9  physical location where pari-mutuel wagering on horse racing  events  is
    10  offered by a casino and conducted by a regional off-track betting corpo-
    11  ration  in  accordance  with  this  subdivision  shall be deemed to be a
    12  branch location of the regional off-track betting corporation in accord-
    13  ance with section one thousand eight of this  chapter.    Mobile  sports
    14  betting  kiosks located on the premises of affiliates in accordance with
    15  paragraph (d) of subdivision five of section thirteen hundred sixty-sev-
    16  en-a of this chapter shall not be allowed to offer pari-mutuel  wagering
    17  on horse racing events.
    18    14.  A sports governing body may notify the commission that it desires
    19  to restrict, limit, or  exclude  wagering  on  its  sporting  events  by
    20  providing  notice  in the form and manner as the commission may require.
    21  Upon receiving such notice, the commission shall review the  request  in
    22  good  faith,  seek  input from the casinos on such a request, and if the
    23  commission deems it appropriate, promulgate regulations to restrict such
    24  sports wagering. If the commission denies a request, the sports  govern-
    25  ing  body  shall  be afforded notice and the right to be heard and offer
    26  proof in opposition to such determination in accordance with  the  regu-
    27  lations  of  the  commission.  Offering  or  taking  wagers  contrary to
    28  restrictions promulgated by  the  commission  is  a  violation  of  this
    29  section.  In  the  event that the request is in relation to an emergency
    30  situation, the executive director  of  the  commission  may  temporarily
    31  prohibit  the  specific  wager  in question until the commission has the
    32  opportunity to issue temporary regulations addressing the issue.
    33    15. (a) The commission shall  designate  the  division  of  the  state
    34  police  to  have primary responsibility for conducting, or assisting the
    35  commission in conducting, investigations into abnormal betting activity,
    36  match fixing, and other conduct that corrupts a  betting  outcome  of  a
    37  sporting event or events for purposes of financial gain.
    38    (b)  Casinos  shall  maintain records of sports wagering operations in
    39  accordance with regulations promulgated by the commission.  These  regu-
    40  lations  shall,  at  a  minimum, require a casino to adopt procedures to
    41  obtain personally identifiable information from any individual who plac-
    42  es any single wager in an amount of ten thousand dollars or greater on a
    43  sports event while physically present in a  casino  or  using  a  mobile
    44  sports betting kiosk at an affiliate.
    45    (c)  The  commission  shall cooperate with a sports governing body and
    46  casinos to ensure the timely, efficient, and accurate sharing of  infor-
    47  mation.
    48    (d)  The  commission  and  casinos shall cooperate with investigations
    49  conducted by  sports  governing  bodies  or  law  enforcement  agencies,
    50  including  but not limited to providing or facilitating the provision of
    51  account-level betting information and audio or video files  relating  to
    52  persons  placing  wagers; provided, however, that the casino be required
    53  to share any personally identifiable information of an authorized sports
    54  bettor with a sports governing body only pursuant to an order to  do  so
    55  by  the  commission  or  a  law enforcement agency or court of competent
    56  jurisdiction.

        A. 11144--A                         9
 
     1    (e) Casinos shall promptly report to the  commission  any  information
     2  relating to:
     3    (i)  criminal or disciplinary proceedings commenced against the casino
     4  in connection with its operations;
     5    (ii) abnormal betting activity or patterns that may indicate a concern
     6  with the integrity of a sporting event or events;
     7    (iii) any potential breach of the  relevant  sports  governing  body's
     8  internal  rules  and  codes of conduct pertaining to sports wagering, as
     9  they have been provided by the sports governing body to the casino;
    10    (iv) any other conduct that corrupts a betting outcome of  a  sporting
    11  event  or events for purposes of financial gain, including match fixing;
    12  and
    13    (v) suspicious or illegal wagering activities, including use of  funds
    14  derived  from  illegal  activity,  wagers  to  conceal  or launder funds
    15  derived from illegal activity,  using  agents  to  place  wagers,  using
    16  confidential non-public information, and using false identification.
    17    The  commission  shall  also  promptly  report information relating to
    18  conduct described in subparagraphs (ii), (iii) and (iv)  of  this  para-
    19  graph to the relevant sports governing body.
    20    (f) Casinos shall maintain the confidentiality of information provided
    21  by  a sports governing body to the casino, unless disclosure is required
    22  by this section, the commission, other law, or court order.
    23    (g) The commission, by regulation, may authorize  and  promulgate  any
    24  rules necessary to implement agreements with other states, or authorized
    25  agencies  thereof  to  enable  the  sharing of information to facilitate
    26  integrity monitoring and the conduct  of  investigations  into  abnormal
    27  betting  activity,  match  fixing,  and  other  conduct  that corrupts a
    28  betting outcome of a sporting event or events for purposes of  financial
    29  gain.
    30    (h)  The  commission  shall study the potential for the creation of an
    31  interstate database of all sports wagering information for  the  purpose
    32  of  integrity  monitoring, and shall create a final report regarding all
    33  findings and recommendations to be  delivered  upon  completion  of  all
    34  objectives described herein, but in no event later than March first, two
    35  thousand  nineteen, to the governor, the speaker of the assembly and the
    36  temporary president of the senate.
    37    16. (a) Casinos shall use whatever data source they  deem  appropriate
    38  for  determining the result of sports wagering involving tier one sports
    39  wagers.
    40    (b) Casinos shall only use official league data in all sports wagering
    41  involving tier two sports wagers, if the relevant sports governing  body
    42  possesses  a feed of official league data, and makes such feed available
    43  for purchase by the casinos on commercially reasonable terms  as  deter-
    44  mined by the commission.
    45    (c)  A sports governing body may notify the commission that it desires
    46  to require casinos to  use  official  league  data  in  sports  wagering
    47  involving  specific  tier three sports wagers by providing notice in the
    48  form and manner as the  commission  may  require.  Upon  receiving  such
    49  notice,  the  commission  shall  review the request, seek input from the
    50  casinos on such a request, and if the commission deems  it  appropriate,
    51  promulgate regulations to require casinos to use official league data on
    52  sports  wagering involving such tier three sports wagers if the relevant
    53  sports governing body possesses a feed  of  official  league  data,  and
    54  makes  such  feed  available for purchase by the casinos on commercially
    55  reasonable terms as determined by the commission.

        A. 11144--A                        10
 
     1    (d) When determining whether or not a supplier of official league data
     2  is offering commercially reasonable terms, the commission shall consider
     3  the amount charged by the supplier of official  league  data  to  gaming
     4  operators  in other jurisdictions. This information shall be provided to
     5  the  commission  by the supplier of official league data upon request of
     6  the commission.  Any entity providing data to a casino for  the  purpose
     7  of  tier  two  sports  wagers,  other than a supplier of official league
     8  data, shall obtain a license as a  casino  vendor  enterprise  and  such
     9  license  shall  be issued pursuant to the provisions of section thirteen
    10  hundred twenty-seven of this article and in accordance  with  the  regu-
    11  lations promulgated by the commission.
    12    (e)  No  casino  shall enter into an agreement with a sports governing
    13  body or an entity expressly authorized  to  distribute  official  league
    14  data to be the exclusive recipient of their official league data.
    15    (f) The commission shall promulgate regulations to allow an authorized
    16  sports  bettor  to file a complaint alleging an underpayment or non-pay-
    17  ment of a winning sports wager. Any such regulations shall provide  that
    18  the commission utilize the statistics, results, outcomes, and other data
    19  relating  to  a sporting event that have been obtained from the relevant
    20  sports governing body in determining the validity of such claim.
    21    17. A casino shall not permit sports wagering by anyone they know,  or
    22  should have known, to be a prohibited sports bettor.
    23    18.  Sports  wagering  conducted  pursuant  to  the provisions of this
    24  section is hereby authorized.
    25    19. The conduct of sports wagering in violation  of  this  section  is
    26  prohibited.
    27    20. (a) In addition to any criminal penalties provided for under arti-
    28  cle  two  hundred twenty-five of the penal law, any person, firm, corpo-
    29  ration, association, agent, or employee, who is not authorized to  offer
    30  sports  wagering  under  this section or section thirteen hundred sixty-
    31  seven-a of this title, and who knowingly offers  or  attempts  to  offer
    32  sports  wagering  or  mobile sports wagering in New York shall be liable
    33  for a civil penalty of not more than one hundred  thousand  dollars  for
    34  each  violation, not to exceed five million dollars for violations aris-
    35  ing out of the same transaction or occurrence, which shall accrue to the
    36  state and may be recovered in a civil action brought by the commission.
    37    (b) Any person, firm, corporation, association, agent, or employee who
    38  knowingly violates any procedure  implemented  under  this  section,  or
    39  section  thirteen  hundred  sixty-seven-a of this title, shall be liable
    40  for a civil penalty of not more than  five  thousand  dollars  for  each
    41  violation,  not  to exceed fifty thousand dollars for violations arising
    42  out of the same transaction or occurrence, which  shall  accrue  to  the
    43  state and may be recovered in a civil action brought by the commission.
    44    §  2.  The racing, pari-mutuel wagering and breeding law is amended by
    45  adding a new section 1367-a to read as follows:
    46    § 1367-a. Mobile sports wagering. 1. (a) Except as  provided  in  this
    47  subdivision,  the  terms in this section shall have the same meanings as
    48  such terms are defined in subdivision one of  section  thirteen  hundred
    49  sixty-seven of this title.
    50    (b) "Operator" means an entity offering a mobile sports wagering plat-
    51  form including an agent.
    52    2. (a) No casino shall administer, manage, or otherwise make available
    53  a  mobile  sports wagering platform to persons located in New York state
    54  unless registered with the commission pursuant to this section. A casino
    55  may use one mobile sports wagering platform and brand provided that such
    56  platform and brand has been reviewed and approved by the  commission.  A

        A. 11144--A                        11
 
     1  casino  may  contract with an independent operator to provide its mobile
     2  sports wagering platform.
     3    (b)  Registrations issued by the commission shall remain in effect for
     4  five years. The commission shall establish a process for renewal.
     5    (c) The commission shall publish a list of all casinos  registered  to
     6  offer  mobile sports wagering in New York state pursuant to this section
     7  on the commission's website for public use.
     8    (d) The commission  shall  promulgate  regulations  to  implement  the
     9  provisions  of  this  section,  including the development of the initial
    10  form of the application for registration. Such regulations shall provide
    11  for the registration and operation of mobile sports wagering in New York
    12  state and shall include, but not be limited to, responsible  protections
    13  with regard to compulsive play and safeguards for fair play.
    14    3.  In  the  event that a casino contracts with an operator to provide
    15  its mobile sports wagering  platform  and  brand,  such  operator  shall
    16  obtain a license as a casino vendor enterprise prior to the execution of
    17  any  such  contract,  and  such  license shall be issued pursuant to the
    18  provisions of section one thousand three hundred  twenty-seven  of  this
    19  article  and  in  accordance  with  the  regulations  promulgated by the
    20  commission.
    21    4. (a) As a condition of registration in New York state, each operator
    22  shall implement the following measures:
    23    (i) limit each authorized sports bettor to one active and continuously
    24  used account on their platform, and prevent anyone they know, or  should
    25  have known to be a prohibited sports bettor from maintaining accounts or
    26  participating in any sports wagering offered by such operator;
    27    (ii) adopt appropriate safeguards to ensure, to a reasonable degree of
    28  certainty,  that authorized sports bettors are physically located within
    29  the state when engaging in mobile sports betting;
    30    (iii) prohibit minors from participating in any sports wagering, which
    31  includes:
    32    (1) if an operator becomes or is made aware that a minor  has  created
    33  an  account,  or  accessed  the  account of another, such operator shall
    34  promptly, within no more than two  business  days,  refund  any  deposit
    35  received  from  the  minor,  whether  or not the minor has engaged in or
    36  attempted to engage in sports  wagering;  provided,  however,  that  any
    37  refund may be offset by any prizes already awarded;
    38    (2)  each  operator shall provide parental control procedures to allow
    39  parents or guardians to exclude minors from access to any sports  wager-
    40  ing  or  platform.  Such  procedures shall include a toll-free number to
    41  call for help in establishing such parental controls; and
    42    (3) each operator shall take appropriate  steps  to  confirm  that  an
    43  individual opening an account is not a minor;
    44    (iv)  when  referencing the chances or likelihood of winning in adver-
    45  tisements or upon placement of a sports wager, make clear and  conspicu-
    46  ous  statements  that  are  not  inaccurate or misleading concerning the
    47  chances of winning and the number of winners;
    48    (v) enable authorized sports bettors to exclude themselves from sports
    49  wagering and take reasonable steps to prevent such bettors from engaging
    50  in sports wagering from which they have excluded themselves;
    51    (vi) permit any authorized  sports  bettor  to  permanently  close  an
    52  account registered to such bettor, on any and all platforms supported by
    53  such operator, at any time and for any reason;
    54    (vii)  offer  introductory  procedures  for authorized sports bettors,
    55  that shall be prominently displayed on the main page  of  such  operator
    56  platform, that explain sports wagering;

        A. 11144--A                        12
 
     1    (viii)  implement  measures to protect the privacy and online security
     2  of authorized sports bettors and their accounts;
     3    (ix)  offer all authorized sports bettors access to his or her account
     4  history and account details;
     5    (x) ensure authorized sports bettors' funds are protected upon deposit
     6  and segregated from the operating funds of such operator  and  otherwise
     7  protected  from  corporate  insolvency,  financial  risk, or criminal or
     8  civil actions against such operator;
     9    (xi) list on each website, in a prominent place, information  concern-
    10  ing  assistance for compulsive play in New York state, including a toll-
    11  free number directing callers to reputable resources containing  further
    12  information, which shall be free of charge; and
    13    (xii)  ensure no sports wagering shall be based on a prohibited sports
    14  event.
    15    (b) Operators shall not directly or indirectly  operate,  promote,  or
    16  advertise any platform or sports wagering to persons located in New York
    17  state unless registered pursuant to this article.
    18    (c) Operators shall not offer any sports wagering based on any prohib-
    19  ited sports event.
    20    (d) Operators shall not permit sports wagering by anyone they know, or
    21  should have known, to be a prohibited sports bettor.
    22    (e)  Advertisements  for  contests  and  prizes offered by an operator
    23  shall not target prohibited sports  bettors,  minors,  or  self-excluded
    24  persons.
    25    (f) Operators shall prohibit the use of third-party scripts or script-
    26  ing  programs for any exchange wagering contest and ensure that measures
    27  are in place to deter, detect and, to the  extent  reasonably  possible,
    28  prevent  cheating, including collusion, and the use of cheating devices,
    29  including use of software programs that submit exchange wagering  sports
    30  wagers unless otherwise approved by the commission.
    31    (g)  Operators shall develop and prominently display procedures on the
    32  main page of such operator's platform for the filing of a  complaint  by
    33  an  authorized  sports bettor against such operator. An initial response
    34  shall be given by such operator to  such  bettor  filing  the  complaint
    35  within  forty-eight  hours.  A  complete response shall be given by such
    36  operator to such bettor filing the complaint within ten  business  days.
    37  An authorized sports bettor may file a complaint alleging a violation of
    38  the provisions of this article with the commission.
    39    (h)  Operators  shall  maintain  records  of all accounts belonging to
    40  authorized sports bettors and retain such records of all transactions in
    41  such accounts for the preceding five years.
    42    (i) The server or other equipment which is  used  by  an  operator  to
    43  accept  mobile  sports  wagering shall be located in the licensed gaming
    44  facility in accordance with regulations promulgated by the commission.
    45    (j) All mobile sports wagering shall be conducted in  compliance  with
    46  this section and section thirteen hundred sixty-seven of this title.
    47    5.  (a)  Subject to regulations promulgated by the commission, casinos
    48  may enter into  agreements  with  affiliates  to  allow  for  authorized
    49  bettors to sign up to create and fund accounts on mobile sports wagering
    50  platforms offered by the casino.
    51    (b) Authorized sports bettors may sign up to create their account on a
    52  mobile sports wagering platform in person at a casino or an affiliate of
    53  a  casino,  or through internet websites accessed via a mobile device or
    54  computer, or mobile device applications.
    55    (c) Authorized sports bettors may deposit and withdraw funds in  their
    56  account on a mobile sports wagering platform in person at a casino or an

        A. 11144--A                        13
 
     1  affiliate of a casino, electronically recognized payment methods, or any
     2  other means approved by the commission.
     3    (d)  In  accordance  with  regulations  promulgated by the commission,
     4  casinos may enter into agreements with affiliates to locate self-service
     5  mobile sports betting kiosks, which are owned, operated  and  maintained
     6  by  the  casino,  and connected via the internet to the casino, upon the
     7  premises of the affiliate.  Authorized sports bettors may place  account
     8  wagers, and place and redeem non-account cash wagers, at such kiosks.
     9    (e)  All  agreements  entered  into  between casinos and affiliates in
    10  relation to the provisions of this section  shall  be  approved  by  the
    11  commission prior to taking effect and shall include a plan for the time-
    12  ly payment of liabilities due to the affiliate under the agreement.
    13    §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
    14  is amended by adding a new subdivision 24 to read as follows:
    15    24. To regulate sports wagering in New York state.
    16    § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel  wager-
    17  ing  and  breeding  law, as added by chapter 237 of the laws of 2016, is
    18  amended to read as follows:
    19    15. "Prohibited sports event" shall  mean  any  [collegiate  sport  or
    20  athletic  event,  any]  high school sport or athletic event or any horse
    21  racing event.
    22    § 5. Paragraph (a) of subdivision 2-a of section 1009 of  the  racing,
    23  pari-mutuel  wagering and breeding law, as amended by chapter 626 of the
    24  laws of 1986, is amended to read as follows:
    25    (a) In Sullivan, Greene and Ulster counties  and  within  the  Capital
    26  District  region  as  defined  by  paragraph  (e)  of subdivision one of
    27  section five hundred nineteen of this chapter, the board shall determine
    28  the number of such projects to be located in privately owned  hotels  in
    29  such  counties for the exclusive use of the hotel guests.  Notwithstand-
    30  ing the provisions of paragraph (a) of subdivision five of this section,
    31  an admission fee shall not be required  for  any  demonstration  project
    32  authorized  in such areas in a gaming facility as defined in subdivision
    33  twenty-three of section thirteen hundred one of this  chapter.  Provided
    34  however,  on  any  day when a regional harness track located in Saratoga
    35  County conducts a live race meeting,  the  demonstration  facility  will
    36  predominantly  display the live video of such regional harness track. In
    37  the event of a conflict with the broadcast of  the  live  video  from  a
    38  franchise  corporation racetrack, the demonstration project facility may
    39  choose to show the franchise  corporation  signal  instead  and  show  a
    40  replay  of the regional harness track race meeting immediately following
    41  completion of the franchise corporation race.
    42    § 6. Severability clause. If any provision of this act or  application
    43  thereof  shall  for  any  reason  be  adjudged by any court of competent
    44  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    45  invalidate the remainder of the act, but shall be confined in its opera-
    46  tion  to  the  provision thereof directly involved in the controversy in
    47  which the judgment shall have been rendered.
    48    § 7. This act shall take effect on the  same  date  and  in  the  same
    49  manner  as section 1367 of the racing, pari-mutuel wagering and breeding
    50  law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
    51  of 2013, takes effect.
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