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S01183 Summary:

BILL NOS01183
 
SAME ASSAME AS UNI. A01257
 
SPONSORADDABBO
 
COSPNSRGAUGHRAN, JORDAN, MARTUCCI
 
MLTSPNSR
 
Amd §§1367 & 104, add §1367-a, RWB L
 
Provides for regulation of sports betting and mobile sports wagering; defines terms; implements a tax equivalent to eight and one-half percent of sports wagering gross revenue; requires reporting; provides for civil penalties for violations; makes related provisions.
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S01183 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
            S. 1183                                                  A. 1257
 
                               2021-2022 Regular Sessions
 
                SENATE - ASSEMBLY
 
                                     January 7, 2021
                                       ___________
 
        IN SENATE -- Introduced by Sen. ADDABBO -- read twice and ordered print-
          ed,  and  when  printed  to  be  committed to the Committee on Racing,
          Gaming and Wagering
 
        IN ASSEMBLY -- Introduced by M. of A. PRETLOW, TAGUE,  SCHMITT,  JOYNER,
          WOERNER,  SANTABARBARA,  LUPARDO, PHEFFER AMATO, DILAN, WEPRIN, PERRY,
          FALL, AUBRY, STIRPE, TAYLOR, BURKE, RAMOS, HYNDMAN, HUNTER, GOTTFRIED,
          DE LA ROSA --  Multi-Sponsored  by  --  M.  of  A.  HEVESI,  PICHARDO,
          D. ROSENTHAL,  ROZIC,  STERN,  VANEL  -- read once and referred to the
          Committee on Racing and Wagering
 
        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, paragraphs (b) and
     3  (d) of subdivision 3 as amended by section 1 of part X of chapter 59  of
     4  the laws of 2020, is amended to read as follows:
     5    § 1367. Sports wagering. 1. As used in this section:
     6    (a)  "Affiliate"  means  any off-track betting corporation, franchised
     7  corporation, or race track licensed pursuant to this chapter, an  opera-
     8  tor  of  video  lottery  gaming at Aqueduct licensed pursuant to section
     9  sixteen hundred seventeen-a of the  tax  law,  which  has  an  affiliate
    10  agreement  with a casino pursuant to section thirteen hundred sixty-sev-
    11  en-a of this title. Any professional sports stadium or arena  may  serve
    12  as an affiliate;
    13    (b)  "Agent" means an entity that is party to a contract with a casino
    14  authorized to operate a sports pool and is approved by the commission to
    15  operate a sports pool on behalf of such casino;
    16    (c) "Authorized sports bettor" means an individual who  is  physically
    17  present  in this state when placing a sports wager, who is not a prohib-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04631-03-1

        S. 1183                             2                            A. 1257
 
     1  ited sports bettor, that participates in sports wagering  offered  by  a
     2  casino.  All  sports  wagers  placed in accordance with this section are
     3  considered placed or otherwise made when received by the operator at the
     4  licensed  gaming  facility, regardless of the authorized sports bettor's
     5  physical location at the time the sports wager is initiated. The  inter-
     6  mediate  routing  of  electronic  data  in connection with mobile sports
     7  wagering shall not determine the location or locations in which a  wager
     8  is initiated, received or otherwise made;
     9    (d)  "Brand"  means  the  name  and  logo on the interface of a mobile
    10  application or internet website accessed via a mobile device or computer
    11  which authorized sports bettors use to access a sports betting platform;
    12    (e) "Casino" means a licensed gaming facility  at  which  gambling  is
    13  conducted pursuant to the provisions of this article;
    14    [(b)]  (f)  "Commission"  means the commission established pursuant to
    15  section one hundred two of this chapter;
    16    [(c)] (g) "Collegiate sport  or  athletic  event"  means  a  sport  or
    17  athletic  event  offered  or sponsored by or played in connection with a
    18  public or private institution that offers  educational  services  beyond
    19  the secondary level;
    20    [(d)]  (h)  "Covered  persons"  includes:  athletes; players; umpires;
    21  referees; officials; personnel associated with  players,  clubs,  teams,
    22  leagues,  and  athletic  associations;  medical professionals, including
    23  athletic trainers who provide services to athletes and players; and  the
    24  family  members  and associates of these persons where required to serve
    25  the purposes of this title;
    26    (i) "Exchange wagering" means a form of wagering in which  an  author-
    27  ized  sports  bettor, on the one hand, and one or more authorized sports
    28  bettors, a casino or an agent or an operator, on the  other  hand  place
    29  identically  opposing  sports wagers on an exchange operated by a casino
    30  or an agent or an operator;
    31    (j) "Global risk management" means the direction, management,  consul-
    32  tation and/or instruction for purposes of managing risks associated with
    33  sports  wagering  conducted  pursuant  to  this section and includes the
    34  setting and adjustment of betting lines,  point  spreads,  or  odds  and
    35  whether to place layoff bets as permitted by this section;
    36    (k)  "High  school  sport or athletic event" means a sport or athletic
    37  event offered or sponsored by or played in connection with a  public  or
    38  private  institution  that  offers  education  services at the secondary
    39  level;
    40    (l) "Horse racing event" means any sport or athletic  event  conducted
    41  in  New  York  state  subject  to the provisions of articles two, three,
    42  four, five, six, nine, ten and eleven of this chapter, or any  sport  or
    43  athletic  event  conducted outside of New York state, which if conducted
    44  in New York state would be subject to the provisions of this chapter;
    45    (m) "In-play sports wager" means a sports wager  placed  on  a  sports
    46  event after the sports event has begun and before it ends;
    47    (n)  "Layoff  bet" means a sports wager placed by a casino sports pool
    48  with another casino sports pool;
    49    (o) "Minor" means any person under the age of twenty-one years;
    50    (p) "Mobile sports wagering platform" or "platform" means the combina-
    51  tion of hardware, software, and data networks used to  manage,  adminis-
    52  ter,  or control sports wagering and any associated wagers accessible by
    53  any electronic means including mobile applications and internet websites
    54  accessed via a mobile device or computer;
    55    (q) "Official league data" means statistics,  results,  outcomes,  and
    56  other data relating to a sporting event that have been obtained from the

        S. 1183                             3                            A. 1257
 
     1  relevant  sports  governing  body  that  is  headquartered in the United
     2  States or an entity expressly authorized by the sports governing body to
     3  provide such information to casinos;
     4    (r)  "Operator"  means  a casino which has elected to operate a sports
     5  pool (or agent of such casino) or an Indian Tribe (or an agent  of  such
     6  Indian  Tribe)  that  has  entered into a tribal-state gaming compact in
     7  accordance with the Indian Gaming Regulatory Act 25 U.S.C. 2710, that is
     8  in effect and has been ratified by the state  and  has  entered  into  a
     9  sports  wagering  agreement  pursuant to section thirteen hundred sixty-
    10  seven-a of this title;
    11    (s) "Persons who present sporting contests" includes sports  governing
    12  bodies and associations, their members and affiliates, and other persons
    13  who present sporting contests to the public;
    14    [(e)]  (t)  "Professional  sport  or athletic event" means an event at
    15  which two or more persons participate in sports or athletic  events  and
    16  receive  compensation  in  excess  of  actual expenses for their partic-
    17  ipation in such event;
    18    (u) "Prohibited conduct" means any statement, action, and other commu-
    19  nication intended to influence, manipulate, or control a betting outcome
    20  of a sporting contest or of any individual occurrence or performance  in
    21  a  sporting contest in exchange for financial gain or to avoid financial
    22  or physical harm. "Prohibited conduct" includes statements, actions, and
    23  communications made to a covered person by a  third  party,  such  as  a
    24  family member or through social media;
    25    (v)  "Professional sports stadium or arena" means a stadium, ballpark,
    26  or arena that is the permanent home of a professional sports team  play-
    27  ing  at  the  highest  professional level in its sport and has a seating
    28  capacity for such contests exceeding fifteen thousand seats;
    29    (w) "Prohibited sports bettor" means:
    30    (i) any officer or employee of the commission;
    31    (ii) any principal or key employee of a casino or operator, except  as
    32  may be permitted by the commission for good cause shown;
    33    (iii)  any  casino  gaming  or  non-gaming employee at the casino that
    34  employs such person and at any operator that has an agreement with  that
    35  casino;
    36    (iv)  any  contractor,  subcontractor,  or  consultant,  or officer or
    37  employee of a contractor, subcontractor, or consultant, of a  casino  if
    38  such  person  is  directly  involved  in the operation or observation of
    39  sports  wagering,  or  the  processing  of  sports  wagering  claims  or
    40  payments;
    41    (v)  Any  person  subject  to  a  contract with the commission if such
    42  contract contains a provision prohibiting such person from participating
    43  in sports wagering;
    44    (vi) Any spouse, child, brother, sister or parent residing as a member
    45  of the same household in the principal place of  abode  of  any  of  the
    46  foregoing  persons  at  the  same  casino  where the foregoing person is
    47  prohibited from participating in sports wagering;
    48    (vii) any individual with access to non-public  confidential  informa-
    49  tion about sports wagering;
    50    (viii)  any  amateur  or  professional  athlete if the sports wager is
    51  based on any sport or athletic event overseen by  the  athlete's  sports
    52  governing body;
    53    (ix)  any sports agent, owner or employee of a team, player and umpire
    54  union personnel, and employee referee, coach or  official  of  a  sports
    55  governing  body,  if  the sports wager is based on any sport or athletic
    56  event overseen by the individual's sports governing body;

        S. 1183                             4                            A. 1257
 
     1    (x) any individual placing a wager as an agent or proxy for an  other-
     2  wise prohibited sports bettor; or
     3    (xi) any minor;
     4    [(f)]  (x)  "Prohibited  sports  event"  means any collegiate sport or
     5  athletic event that takes place in New York or a sport or athletic event
     6  in which any New York college team participates regardless of where  the
     7  event takes place, or high school sport or athletic event;
     8    [(g)]  (y) "Registered sports governing body" means a sports governing
     9  body that is headquartered in the United States and who  has  registered
    10  with  the  commission to receive royalty fee revenue in such form as the
    11  commission may require;
    12    (z) "Sports event" means any professional sport or athletic event  and
    13  any collegiate sport or athletic event, except a prohibited sports event
    14  or a horse racing event;
    15    [(h)]  (aa)  "Sports  governing  body"  means  the  organization  that
    16  prescribes final rules and enforces codes of conduct with respect  to  a
    17  sporting event and participants therein;
    18    (bb)  "Sports  pool"  means  the  business  of accepting wagers on any
    19  sports event by any system or method of wagering; [and
    20    (i)] (cc) "Sports wager" means cash or cash equivalent that is paid by
    21  an authorized sports bettor to a casino to participate in sports  wager-
    22  ing offered by such casino;
    23    (dd)  "Sports  wagering"  means  wagering  on  sporting  events or any
    24  portion thereof, or on the individual performance statistics of athletes
    25  participating in a sporting event, or combination of sporting events, by
    26  any system or method of wagering, including, but not limited to, in-per-
    27  son communication and electronic communication through internet websites
    28  accessed via a mobile device or computer and mobile device applications.
    29  Any wager through electronic communication shall be deemed to take place
    30  at the physical location of the server or other  equipment  used  by  an
    31  operator  to accept mobile sports wagering, regardless of the authorized
    32  sports bettor's physical location within the state at the time the wager
    33  is initiated. The term "sports  wagering"  shall  include,  but  is  not
    34  limited  to,  single-game  bets,  teaser bets, parlays, over-under bets,
    35  money line, pools, exchange wagering, in-game  wagering,  in-play  bets,
    36  proposition bets and straight bets;
    37    (ee)  "Sports  wagering  gross revenue" means: (i) the amount equal to
    38  the total of all sports wagers not  attributable  to  prohibited  sports
    39  events that an operator collects from all players, less the total of all
    40  sums  not  attributable to prohibited sports events paid out as winnings
    41  to all sports bettors, however, that the total of all sums paid  out  as
    42  winnings  to  sports bettors shall not include the cash equivalent value
    43  of any merchandise or thing of value awarded as a prize, or (ii) in  the
    44  case  of  exchange  wagering pursuant to this section, the commission on
    45  winning sports wagers by authorized sports bettors retained by the oper-
    46  ator. The issuance to or wagering by  authorized  sports  bettors  at  a
    47  casino  of  any  promotional  gaming credit shall not be taxable for the
    48  purposes of determining sports wagering gross revenue;
    49    (ff) "Sports wagering lounge" means an area wherein a sports  pool  is
    50  operated;
    51    (gg)  "Tier  one sports wager" means a sports wager that is determined
    52  solely by the final score or final outcome of the sports event;
    53    (hh) "Tier two sports wager" means an in-play sports wager that is not
    54  a tier one sports wager;
    55    (ii) "Tier three sports wager" means a sports wager that is neither  a
    56  tier one nor a tier two sports wager; and

        S. 1183                             5                            A. 1257

     1    (jj)  "Indian Tribe" means an Indian Tribe (or an agent of such tribe)
     2  that has entered into a tribal-state gaming compact in  accordance  with
     3  the  Indian  Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168,
     4  inclusive, and 25 U.S.C. Sec. 2701 et seq.) which has been  ratified  by
     5  the state;
     6    (kk) "Unusual betting activity" means abnormal betting activity exhib-
     7  ited by patrons and deemed by the casino or operation, pursuant to rules
     8  and  regulations promulgated by the commission, as a potential indicator
     9  of suspicious activity. Abnormal betting activity may  include,  but  is
    10  not limited to, the size of a patron's wager or increased betting volume
    11  on a particular event or wager type;
    12    (ll) "Suspicious betting activity" means unusual betting activity that
    13  cannot  be explained and is indicative of match fixing, the manipulation
    14  of an event, misuse of inside information, or other prohibited activity;
    15  and
    16    (mm) "Independent integrity monitor" means an  independent  individual
    17  or  entity  approved  by  the  commission  to receive reports of unusual
    18  betting activity from a casino or operator for the purpose of  assisting
    19  in identifying suspicious betting activity.
    20    2.  [No gaming facility may conduct sports wagering until such time as
    21  there has been a change in federal law authorizing such or upon a ruling
    22  of a court of competent jurisdiction that such activity is lawful.
    23    3.] (a) In addition  to  authorized  gaming  activities,  a  [licensed
    24  gaming  facility] casino may [when authorized by subdivision two of this
    25  section] operate a sports pool upon the approval of the  commission  and
    26  in  accordance  with the provisions of this section and applicable regu-
    27  lations promulgated pursuant to this article. The commission shall  hear
    28  and  decide  promptly  and  in  reasonable  order all applications for a
    29  license to operate a sports pool, shall have the general  responsibility
    30  for  the  implementation of this section and shall have all other duties
    31  specified in this section with regard to the operation of a sports pool.
    32  The license to operate a sports pool shall be in addition to  any  other
    33  license  required to be issued to operate a [gaming facility] casino. No
    34  license to operate a sports pool shall be issued by  the  commission  to
    35  any  entity unless it has established its financial stability, integrity
    36  and responsibility and its good character, honesty and integrity.
    37    No later than five years after the date of the issuance of  a  license
    38  and  every  five  years  thereafter or within such lesser periods as the
    39  commission may direct, a licensee shall submit to  the  commission  such
    40  documentation  or  information  as  the  commission  may  by  regulation
    41  require, to demonstrate to the satisfaction of the executive director of
    42  the commission that the licensee continues to meet the  requirements  of
    43  the law and regulations.
    44    (b) As a condition of licensure the commission shall require that each
    45  agent authorized to conduct sports wagering pay a one-time fee of twelve
    46  million  dollars.  Such  fee  shall be paid within thirty days of gaming
    47  commission approval prior to license issuance  and  deposited  into  the
    48  commercial  gaming revenue fund established pursuant to section thirteen
    49  hundred fifty-two of this article.
    50    (c) A sports pool shall  be  operated  in  a  sports  wagering  lounge
    51  located  at  a  casino.  The  lounge  shall  conform to all requirements
    52  concerning square footage,  design,  equipment,  security  measures  and
    53  related  matters  which  the  commission  shall by regulation prescribe.
    54  Provided, however, the commission may also approve additional  locations
    55  for a sports pool within the casino, in areas that have been approved by

        S. 1183                             6                            A. 1257
 
     1  the  commission  for  the  conduct  of other gaming, to be operated in a
     2  manner and methodology as regulation shall prescribe.
     3    [(c)] (d) The operator of a sports pool shall establish or display the
     4  odds at which wagers may be placed on sports events.
     5    [(d)]  (e)  An operator shall accept wagers on sports events only from
     6  persons physically present in the sports wagering lounge, through mobile
     7  sports wagering offered pursuant to section thirteen hundred  sixty-sev-
     8  en-a of this title, or any additional locations for a sports pool within
     9  the  casino, approved by the gaming commission. A person placing a wager
    10  shall be at least twenty-one years of age.
    11    [(e)] (f) An operator may also accept  layoff  bets  as  long  as  the
    12  authorized sports pool places such wagers with another authorized sports
    13  pool or pools in accordance with regulations of the commission. A sports
    14  pool that places a layoff bet shall inform the sports pool accepting the
    15  wager that the wager is being placed by a sports pool and shall disclose
    16  its identity.
    17    (g)  An  operator  may  utilize global risk management pursuant to the
    18  approval of the commission.
    19    (h) An operator shall not admit into the sports  wagering  lounge,  or
    20  accept wagers from, any person whose name appears on the exclusion list.
    21    [(f)]  (i)  The  holder  of  a  license  to  operate a sports pool may
    22  contract with an [entity] agent to conduct any or all  aspects  of  that
    23  operation,  or  the operation of mobile sports wagering offered pursuant
    24  to section thirteen hundred sixty-seven-a of this title,  including  but
    25  not limited to brand, marketing and customer service, in accordance with
    26  the regulations of the commission. [That entity] Each agent shall obtain
    27  a  license  as  a casino vendor enterprise prior to the execution of any
    28  such contract,  and  such  license  shall  be  issued  pursuant  to  the
    29  provisions  of  section  one thousand three hundred twenty-seven of this
    30  article and in  accordance  with  the  regulations  promulgated  by  the
    31  commission.
    32    [(g)]  (j)  If any provision of this article or its application to any
    33  person or circumstance is held invalid, the invalidity shall not  affect
    34  other  provisions  or  applications  of  this article which can be given
    35  effect without the invalid provision or application, and to this end the
    36  provisions of this article are severable.
    37    [4.] 3. (a) All persons employed directly in  wagering-related  activ-
    38  ities  conducted  within a sports wagering lounge shall be licensed as a
    39  casino key employee or registered as a gaming employee, as determined by
    40  the commission. All other employees who are working in the sports wager-
    41  ing lounge may be required to be registered, if appropriate, in  accord-
    42  ance with regulations of the commission.
    43    (b)  Each operator of a sports pool shall designate one or more casino
    44  key employees who shall be responsible for the operation of  the  sports
    45  pool.  At  least  one  such casino key employee shall be on the premises
    46  whenever sports wagering is conducted.
    47    [5.] 4. Except as otherwise provided by this article,  the  commission
    48  shall  have  the  authority  to regulate sports pools and the conduct of
    49  sports wagering under this article to the same extent that  the  commis-
    50  sion  regulates other gaming. No casino shall be authorized to operate a
    51  sports pool unless  it  has  produced  information,  documentation,  and
    52  assurances  concerning its financial background and resources, including
    53  cash reserves, that are sufficient to demonstrate that it has the finan-
    54  cial stability, integrity, and responsibility to operate a sports  pool.
    55  In  developing  rules and regulations applicable to sports wagering, the
    56  commission shall examine the regulations  implemented  in  other  states

        S. 1183                             7                            A. 1257
 
     1  where  sports  wagering  is  conducted and shall, as far as practicable,
     2  adopt a similar regulatory framework. The  commission  shall  promulgate
     3  regulations  necessary  to  carry  out  the  provisions of this section,
     4  including, but not limited to, regulations governing the:
     5    (a)  amount  of  cash  reserves to be maintained by operators to cover
     6  winning wagers;
     7    (b) acceptance of wagers on a series of sports events;
     8    (c) maximum wagers which may be accepted by an operator from  any  one
     9  patron on any one sports event;
    10    (d) type of wagering tickets which may be used;
    11    (e) method of issuing tickets;
    12    (f) method of accounting to be used by operators;
    13    (g) types of records which shall be kept;
    14    (h) use of credit and checks by [patrons] authorized sports bettors;
    15    (i) the process by which a casino may place a layoff bet;
    16    (j) the use of global risk management;
    17    (k) type of system for wagering; and
    18    [(j)] (l) protections for a person placing a wager.
    19    [6.]  5. Each operator shall adopt comprehensive house rules governing
    20  sports  wagering  transactions  with  its  [patrons]  authorized  sports
    21  bettors.    The  rules  shall  specify the amounts to be paid on winning
    22  wagers and the effect of schedule changes.   The house  rules,  together
    23  with  any  other  information the commission deems appropriate, shall be
    24  conspicuously displayed in the sports wagering lounge  and  included  in
    25  the  terms  and  conditions  of  the account wagering system, and copies
    26  shall be made readily available to [patrons] authorized sports bettors.
    27    6. (a) Each casino that offers sports wagering shall annually submit a
    28  report to the commission no later than the twenty-eighth of February  of
    29  each year, which shall include the following information:
    30    (i)  the total amount of sports wagers received from authorized sports
    31  bettors;
    32    (ii) the total amount of prizes awarded to authorized sports bettors;
    33    (iii) the total amount of sports wagering gross  revenue  received  by
    34  the casino;
    35    (iv)  the  total  amount contributed in sports betting royalty revenue
    36  pursuant to subdivision eight of this section;
    37    (v) the total amount of  wagers  received  on  each  sports  governing
    38  body's sporting events;
    39    (vi) the number of accounts held by authorized sports bettors;
    40    (vii)  the  total  number of new accounts established in the preceding
    41  year, as well as the total number of accounts permanently closed in  the
    42  preceding year;
    43    (viii) the total number of authorized sports bettors that requested to
    44  exclude themselves from sports wagering; and
    45    (ix) any additional information that the commission deems necessary to
    46  carry out the provisions of this article.
    47    (b) Upon the submission of such annual report, to such extent that the
    48  commission  deems  it to be in the public interest, the commission shall
    49  be authorized to conduct a financial audit of any casino, at  any  time,
    50  to ensure compliance with this article.
    51    (c) The commission shall annually publish a report based on the aggre-
    52  gate  information  provided  by all casinos pursuant to paragraph (a) of
    53  this subdivision, which shall be published on the  commission's  website
    54  no  later  than  one  hundred  eighty  days  after  the deadline for the
    55  submission of individual reports as specified in such paragraph (a).

        S. 1183                             8                            A. 1257
 
     1    7. (a) Within thirty days of the end of each calendar quarter, a casi-
     2  no offering sports wagering shall  remit  to  the  commission  a  sports
     3  wagering  royalty  fee  of  one-fifth (.20) of one percent of the amount
     4  wagered on  sports  events  conducted  by  registered  sports  governing
     5  bodies.    The  fee  shall  be  remitted on a form as the commission may
     6  require, on which the casino shall identify the percentage  of  wagering
     7  during  the  reporting  period  attributable  to  each  registered sport
     8  governing body's sports events.
     9    (b) No later than the thirtieth of April of each  year,  a  registered
    10  sports governing body may submit a claim for disbursement of the royalty
    11  fee  funds  remitted  by  casinos in the previous calendar year on their
    12  respective sports events. Within thirty days of submitting its claim for
    13  disbursement, the registered sports governing body shall meet  with  the
    14  commission  to  provide the commission with evidence of policies, proce-
    15  dures and training programs it has implemented to protect the  integrity
    16  of its sports events.
    17    (c)  Within  thirty  days  of  its  meeting with the registered sports
    18  governing  body,  the  commission  shall  approve  a  timely  claim  for
    19  disbursement.
    20    (d)  (i) Persons who present sporting contests shall have authority to
    21  remove spectators and others from any facility for violation any  appli-
    22  cable  codes  of  conduct,  and to deny persons access to all facilities
    23  they control, to revoke season tickets or comparable  licenses,  and  to
    24  share  information  about  such persons with others who present sporting
    25  contests and with the appropriate jurisdictions' law enforcement author-
    26  ities.
    27    (ii) Persons who present sporting contests shall provide notice to the
    28  general public and those who attend sporting  contests  or  visit  their
    29  facilities  of  any applicable codes of conduct and the potential penal-
    30  ties for violating such codes.
    31    8. For the privilege of conducting sports wagering in the state, casi-
    32  nos shall pay a tax equivalent to eight and one-half  percent  of  their
    33  sports  wagering  gross revenue, excluding sports wagering gross revenue
    34  attributed to mobile sports wagering offered pursuant to  section  thir-
    35  teen hundred sixty-seven-a of this title. Casinos shall pay a tax equiv-
    36  alent  of  twelve  percent of their sports wagering gross revenue attri-
    37  buted to mobile sports wagering offered  pursuant  to  section  thirteen
    38  hundred sixty-seven-a of this title.
    39    9.  The  commission  shall pay into the commercial gaming revenue fund
    40  established pursuant to section ninety-seven-nnnn of the  state  finance
    41  law  eighty-five  percent  of the state tax imposed by this section; any
    42  interest and penalties imposed  by  the  commission  relating  to  those
    43  taxes;  all  penalties  levied  and collected by the commission; and the
    44  appropriate funds, cash or prizes forfeited from  sports  wagering.  The
    45  commission shall pay into the commercial gaming fund five percent of the
    46  state tax imposed by this section to be distributed for problem gambling
    47  education  and treatment purposes pursuant to paragraph a of subdivision
    48  four of section ninety-seven-nnnn of the state finance law. The  commis-
    49  sion shall pay into the commercial gaming fund five percent of the state
    50  tax imposed by this section to be distributed for the cost of regulation
    51  pursuant to paragraph c of subdivision four of section ninety-seven-nnnn
    52  of  the  state finance law. The commission shall pay into the commercial
    53  gaming fund five percent of the state tax imposed by this section to  be
    54  distributed  in  the  same  formula as market origin credits pursuant to
    55  section one hundred fifteen-b of  this  chapter.  The  commission  shall
    56  require at least monthly deposits by the casino of any payments pursuant

        S. 1183                             9                            A. 1257
 
     1  to  subdivision  eight of this section, at such times, under such condi-
     2  tions, and in such depositories as shall  be  prescribed  by  the  state
     3  comptroller.  The deposits shall be deposited to the credit of the state
     4  commercial  gaming  revenue fund. The commission shall require a monthly
     5  report and reconciliation statement to be filed with it on or before the
     6  tenth day of each month, with respect to  gross  revenues  and  deposits
     7  received and made, respectively, during the preceding month.
     8    10.  The  commission  may perform audits of the books and records of a
     9  casino, at such times and intervals as it  deems  appropriate,  for  the
    10  purpose  of  determining  the  sufficiency  of tax payments. If a return
    11  required with regard to obligations imposed is not filed, or if a return
    12  when filed or is determined by the commission to be incorrect or  insuf-
    13  ficient  with or without an audit, the amount of tax due shall be deter-
    14  mined by the commission. Notice of such determination shall be given  to
    15  the  casino  liable for the payment of the tax. Such determination shall
    16  finally and irrevocably fix the tax unless the casino against whom it is
    17  assessed, within thirty days after receiving  notice  of  such  determi-
    18  nation,  shall  apply to the commission for a hearing in accordance with
    19  the regulations of the commission.
    20    11. Nothing in this section shall apply to interactive fantasy  sports
    21  offered  pursuant  to  article fourteen of this chapter. Nothing in this
    22  section authorizes any entity that conducts interactive  fantasy  sports
    23  offered  pursuant  to article fourteen of this chapter to conduct sports
    24  wagering unless it separately qualifies for, and obtains,  authorization
    25  pursuant to this section.
    26    12.  A  casino that is also licensed under article three of this chap-
    27  ter, and must maintain racing pursuant to paragraph (b)  of  subdivision
    28  one  of  section  thirteen  hundred fifty-five of this article, shall be
    29  allowed to offer pari-mutuel wagering on horse racing events in  accord-
    30  ance  with  their license under article three of this chapter.  Notwith-
    31  standing subparagraph (ii) of paragraph c of subdivision two of  section
    32  one  thousand  eight  of  this  chapter, a casino located in the city of
    33  Schenectady shall be allowed to  offer  pari-mutuel  wagering  on  horse
    34  racing  events, provided such wagering is conducted by the regional off-
    35  track betting corporation in such region as the casino is located.   Any
    36  other  casino  shall  be  allowed to offer pari-mutuel wagering on horse
    37  racing events, provided such wagering is conducted by the regional  off-
    38  track  betting corporation in such region as the casino is located.  Any
    39  physical location where pari-mutuel wagering on horse racing  events  is
    40  offered by a casino and conducted by a regional off-track betting corpo-
    41  ration  in  accordance  with  this  subdivision  shall be deemed to be a
    42  branch location of the regional off-track betting corporation in accord-
    43  ance with section one thousand eight  of  this  chapter.  Mobile  sports
    44  betting  kiosks located on the premises of affiliates in accordance with
    45  paragraph (d) of subdivision five of section thirteen hundred sixty-sev-
    46  en-a of this title shall not be allowed to offer pari-mutuel wagering on
    47  horse racing events.
    48    13. A sports governing body may notify the commission that it  desires
    49  to  restrict,  limit,  or  exclude  wagering  on  its sporting events by
    50  providing notice in the form and manner as the commission  may  require.
    51  Upon  receiving  such notice, the commission shall review the request in
    52  good faith, seek input from the casinos on such a request,  and  if  the
    53  commission deems it appropriate, promulgate regulations to restrict such
    54  sports  wagering. If the commission denies a request, the sports govern-
    55  ing body shall be afforded notice and the right to be  heard  and  offer
    56  proof  in  opposition to such determination in accordance with the regu-

        S. 1183                            10                            A. 1257
 
     1  lations of  the  commission.  Offering  or  taking  wagers  contrary  to
     2  restrictions  promulgated  by  the  commission  is  a  violation of this
     3  section. In the event that the request is in relation  to  an  emergency
     4  situation,  the  executive  director  of  the commission may temporarily
     5  prohibit the specific wager in question until  the  commission  has  the
     6  opportunity to issue temporary regulations addressing the issue.
     7    14.  (a)  The  commission  shall  designate  the division of the state
     8  police to have primary responsibility for conducting, or  assisting  the
     9  commission in conducting, investigations into abnormal betting activity,
    10  match  fixing,  and  other  conduct that corrupts a betting outcome of a
    11  sporting event or events for purposes of financial gain.
    12    (b) Casinos shall maintain records of sports  wagering  operations  in
    13  accordance  with  regulations promulgated by the commission. These regu-
    14  lations shall, at a minimum, require a casino  to  adopt  procedures  to
    15  obtain personally identifiable information from any individual who plac-
    16  es any single wager in an amount of ten thousand dollars or greater.
    17    (c)  The  commission  shall cooperate with a sports governing body and
    18  casinos to ensure the timely, efficient, and accurate sharing of  infor-
    19  mation.
    20    (d)  The  commission  and  casinos shall cooperate with investigations
    21  conducted by  sports  governing  bodies  or  law  enforcement  agencies,
    22  including  but not limited to providing or facilitating the provision of
    23  account-level betting information and audio or video files  relating  to
    24  persons  placing  wagers; provided, however, that the casino be required
    25  to share any personally identifiable information of an authorized sports
    26  bettor with a sports governing body only pursuant to an order to  do  so
    27  by  the  commission  or  a  law enforcement agency or court of competent
    28  jurisdiction.
    29    (e) Casinos and operators shall promptly report to the  commission  or
    30  third party integrity monitoring provider approved by the commission, as
    31  applicable  and  in accordance with rules and regulations established by
    32  the commission, any information relating to:
    33    (i) criminal or disciplinary proceedings commenced against the  casino
    34  in connection with its operations;
    35    (ii) abnormal betting activity or patterns that may indicate a concern
    36  with the integrity of a sporting event or events;
    37    (iii)  any  potential  breach  of the relevant sports governing body's
    38  internal rules and codes of conduct pertaining to  sports  wagering,  as
    39  they  have  been  provided by the sports governing body to the casino or
    40  the operator;
    41    (iv) any other conduct that corrupts a betting outcome of  a  sporting
    42  event  or events for purposes of financial gain, including match fixing;
    43  and
    44    (v) suspicious or illegal wagering activities, including use of  funds
    45  derived  from  illegal  activity,  wagers  to  conceal  or launder funds
    46  derived from illegal activity,  using  agents  to  place  wagers,  using
    47  confidential non-public information, and using false identification.
    48    The  commission  shall  also  promptly  report information relating to
    49  conduct described in subparagraphs (ii), (iii) and (iv)  of  this  para-
    50  graph to the relevant sports governing body.
    51    (vi) The commission shall be authorized to share any information under
    52  this  section  with  any  law enforcement entity, team, sports governing
    53  body, or regulatory agency the division deems appropriate. Such  sharing
    54  of information may include, but is not limited to, account level betting
    55  information  and  any audio or video files related to the investigation.
    56  Provided, however, the casino or operators may only be required to share

        S. 1183                            11                            A. 1257
 
     1  any personally identifiable information of an authorized  sports  bettor
     2  with  a  sports governing body only pursuant to an order to do so by the
     3  commission, a law enforcement agency or a court of  competent  jurisdic-
     4  tion.
     5    (f) The confidentiality of information shared between a sports govern-
     6  ing  body  and  a casino or operator shall be maintained pursuant to all
     7  applicable data privacy laws, unless  disclosure  is  required  by  this
     8  section,  the  commission,  other  law, or court order. Furthermore, the
     9  information shared between a sports governing body, a casino, an  opera-
    10  tor or any other party pursuant to this act may not be used for business
    11  or  marketing  purposes  by  the  recipient  without the express written
    12  approval of the party that provides such information.
    13    (g) The commission, by regulation, may authorize  and  promulgate  any
    14  rules necessary to implement agreements with other states, or authorized
    15  agencies  thereof  to  enable  the  sharing of information to facilitate
    16  integrity monitoring and the conduct  of  investigations  into  abnormal
    17  betting  activity,  match  fixing,  and  other  conduct  that corrupts a
    18  betting outcome of a sporting event or events for purposes of  financial
    19  gain.
    20    (h)  The  commission  shall study the potential for the creation of an
    21  interstate database of all sports wagering information for  the  purpose
    22  of  integrity  monitoring, and shall create a final report regarding all
    23  findings and recommendations to be  delivered  upon  completion  of  all
    24  objectives described herein, but in no event later than March first, two
    25  thousand  twenty-two,  to  the governor, the speaker of the assembly and
    26  the temporary president of the senate.
    27    (i) The commission shall investigate  all  reasonable  allegations  of
    28  prohibited  conduct  and  refer any allegations it deems credible to the
    29  appropriate law enforcement entity.
    30    (j) Any person who is (i) an athlete, coach, referee,  director  of  a
    31  sports  governing  body  or  any  of its member teams, a player or other
    32  personnel member, in or on any sports event overseen  by  that  person's
    33  sports governing body, (ii) holding a position of authority or influence
    34  sufficient  to  exert  influence  over  the  participants  in a sporting
    35  contest, including but  not  limited  to  coaches,  managers,  handlers,
    36  athletic  trainers,  or  (iii)  a person with access to certain types of
    37  non-public information on any sports event  overseen  by  that  person's
    38  sports  governing  body,  shall  not  be permitted to place a wager on a
    39  sports event that is overseen by that person's sports governing body  so
    40  long as that person has been identified as a prohibited sports bettor in
    41  any lists provided by the sports governing body to the commission, casi-
    42  nos,  and  operators.  Any  person  who violates this paragraph shall be
    43  guilty of a disorderly persons offense and shall be fined not less  than
    44  five hundred dollars and not more than one thousand dollars.
    45    (k)  Casinos  and  operators shall adopt procedures to prevent persons
    46  from wagering on sports events who are prohibited  from  placing  sports
    47  wagers. A casino or operator shall not accept wagers from any person:
    48    (i) whose name appears on the exclusion list maintained by the commis-
    49  sion and provided to the casino or operator;
    50    (ii)  whose  name appears on any self-exclusion list maintained by the
    51  commission and provided to the casino or operator;
    52    (iii) who is the operator, director, officer, owner,  or  employee  of
    53  the operator or casino or any relative thereof living in the same house-
    54  hold as such individual;
    55    (iv)  who has been identified in a list provided by the sports govern-
    56  ing body to the commission and casino or operator, that  identifies  the

        S. 1183                            12                            A. 1257
 
     1  individual  by  such personally identifiable information as specified by
     2  rules and regulations promulgated by the commission;
     3    (v) who is an agent or proxy for any other person; or
     4    (vi)  who  has  identified  themselves to the operator as a prohibited
     5  sports pool participant.
     6    (l) The commission shall establish a hotline or other method of commu-
     7  nication that allows any person  to  confidentially  report  information
     8  about  prohibited  conduct to the commission. The identity of any person
     9  reporting prohibited conduct to the commission shall remain confidential
    10  unless that person authorizes disclosure of his or her identity or until
    11  such time as the allegation of prohibited conduct  is  referred  to  law
    12  enforcement.
    13    15.  (a)  Casinos shall use whatever data source they deem appropriate
    14  for determining the result of sports wagering involving tier one  sports
    15  wagers.
    16    (b) Casinos shall only use official league data in all sports wagering
    17  involving  tier two sports wagers, if the relevant sports governing body
    18  is headquartered in the United States,  possesses  a  feed  of  official
    19  league  data,  and makes such feed available for purchase by the casinos
    20  on commercially reasonable terms as determined by the commission.
    21    (c) A sports governing body may notify the commission that it  desires
    22  to  require  casinos  to  use  official  league  data in sports wagering
    23  involving specific tier three sports wagers by providing notice  in  the
    24  form  and  manner  as  the  commission  may require. Upon receiving such
    25  notice, the commission shall review the request,  seek  input  from  the
    26  casinos  on  such a request, and if the commission deems it appropriate,
    27  promulgate regulations to require casinos to use official league data on
    28  sports wagering involving such tier three sports wagers if the  relevant
    29  sports  governing  body  possesses  a  feed of official league data, and
    30  makes such feed available for purchase by the  casinos  on  commercially
    31  reasonable terms as determined by the commission.
    32    (d) When determining whether or not a supplier of official league data
    33  is offering commercially reasonable terms, the commission shall consider
    34  the  amount  charged  by  the supplier of official league data to gaming
    35  operators in other jurisdictions. This information shall be provided  to
    36  the  commission  by the supplier of official league data upon request of
    37  the commission. Any entity providing data to a casino for the purpose of
    38  tier two sports wagers shall obtain a license as a casino vendor  enter-
    39  prise  and  such  license  shall be issued pursuant to the provisions of
    40  section thirteen hundred twenty-seven of this article and in  accordance
    41  with the regulations promulgated by the commission.
    42    (e)  No  casino  shall enter into an agreement with a sports governing
    43  body or an entity expressly authorized  to  distribute  official  league
    44  data to be the exclusive recipient of their official league data.
    45    (f) The commission shall promulgate regulations to allow an authorized
    46  sports  bettor  to file a complaint alleging an underpayment or non-pay-
    47  ment of a winning sports wager. Any such regulations shall provide  that
    48  the commission utilize the statistics, results, outcomes, and other data
    49  relating  to  a sporting event that have been obtained from the relevant
    50  sports governing body in determining the validity of such claim.
    51    16. A casino shall not permit sports wagering by anyone they know,  or
    52  should have known, to be a prohibited sports bettor.
    53    17.  Sports  wagering  conducted  pursuant  to  the provisions of this
    54  section is hereby authorized.
    55    18. The commission shall promulgate rules that require an operator  to
    56  implement responsible gaming programs that include comprehensive employ-

        S. 1183                            13                            A. 1257
 
     1  ee trainings on responding to circumstances in which individuals present
     2  signs of a gambling addiction and requirements for casinos and operators
     3  under  section  thirteen  hundred sixty-seven-a of this title to assess,
     4  prevent,  and  address  problem gaming by users under the age of thirty.
     5  The commission shall establish a hotline or  other  method  of  communi-
     6  cation  that  will allow any person to confidentially report information
     7  about prohibited conduct to the commission. The commission shall promul-
     8  gate rules governing the investigation and resolution of a charge of any
     9  person purported to have engaged in prohibited conduct.
    10    19. The conduct of sports wagering in violation  of  this  section  is
    11  prohibited.
    12    20. (a) In addition to any criminal penalties provided for under arti-
    13  cle  two  hundred twenty-five of the penal law, any person, firm, corpo-
    14  ration, association, agent, or employee, who is not authorized to  offer
    15  sports  wagering  under  this section or section thirteen hundred sixty-
    16  seven-a of this title, and who knowingly offers  or  attempts  to  offer
    17  sports  wagering  or  mobile sports wagering in New York shall be liable
    18  for a civil penalty of not more than one hundred  thousand  dollars  for
    19  each  violation, not to exceed five million dollars for violations aris-
    20  ing out of the same transaction or occurrence, which shall accrue to the
    21  state and may be recovered in a civil action brought by the commission.
    22    (b) Any person, firm, corporation, association, agent, or employee who
    23  knowingly violates any procedure  implemented  under  this  section,  or
    24  section  thirteen  hundred  sixty-seven-a of this title, shall be liable
    25  for a civil penalty of not more than  five  thousand  dollars  for  each
    26  violation,  not  to exceed fifty thousand dollars for violations arising
    27  out of the same transaction or occurrence, which  shall  accrue  to  the
    28  state and may be recovered in a civil action brought by the commission.
    29    §  2.  The racing, pari-mutuel wagering and breeding law is amended by
    30  adding a new section 1367-a to read as follows:
    31    § 1367-a. Mobile sports wagering. 1. (a) Except as  provided  in  this
    32  subdivision,  the  terms in this section shall have the same meanings as
    33  such terms are defined in subdivision one of  section  thirteen  hundred
    34  sixty-seven of this title.
    35    (b)  "Operator" for purposes of this section, means a casino which has
    36  elected to offer a mobile sports wagering platform, an Indian Tribe  (or
    37  agent  of such Indian Tribe) that has entered into a tribal-state gaming
    38  compact in accordance with the Indian Gaming Regulatory Act,  25  U.S.C.
    39  2710,  that  is  in  effect  and  has been ratified by the state and has
    40  entered into a sports wagering agreement to operate with the  commission
    41  pursuant  to this section, or the agent of such licensed gaming facility
    42  or such Indian Tribe.
    43    2. (a) No casino shall administer, manage, or otherwise make available
    44  a mobile sports wagering platform to persons located in New  York  state
    45  unless registered with the commission pursuant to this section. A casino
    46  may  use  up to two mobile sports wagering platforms and brands provided
    47  that such platforms and brands have been reviewed and  approved  by  the
    48  commission.  A  casino may contract with up to two independent operators
    49  to provide its mobile sports wagering platforms. An independent operator
    50  may display its brand on the platform in addition to the casino's brand.
    51    (b) Registrations issued by the commission shall remain in effect  for
    52  five years. The commission shall establish a process for renewal.
    53    (c)  The  commission shall publish a list of all operators and casinos
    54  registered to offer mobile sports wagering in New York state pursuant to
    55  this section on the commission's website for public use.

        S. 1183                            14                            A. 1257
 
     1    3. In the event that a casino contracts with an  operator  to  provide
     2  its  mobile  sports  wagering  platform  and  brand, such operator shall
     3  obtain a license as a casino vendor enterprise prior to the execution of
     4  any such contract, and such license shall  be  issued  pursuant  to  the
     5  provisions  of section thirteen hundred twenty-seven of this article and
     6  in accordance with the regulations promulgated by the commission.
     7    3-a. (a) As a condition of registration as an  operator,  each  casino
     8  shall  agree,  upon request of an Indian Tribe that has not entered into
     9  an agreement for mobile sports wagering with another casino, to  provide
    10  a site for a mobile sports wagering server and related equipment for the
    11  Indian  Tribe  as  directed  by the commission, at no cost to the Indian
    12  Tribe except the direct and actual cost of hosting the server  or  other
    13  equipment used by the Indian Tribe as determined by the commission.
    14    (b)  As  a condition of registration as an operator in New York state,
    15  an Indian Tribe shall enter into an agreement with the  commission  with
    16  respect to mobile sports wagering:
    17    (i)  To follow the requirements imposed on casinos and operators under
    18  this section and section thirteen hundred sixty-seven of this title with
    19  respect to the Indian Tribe's mobile sports wagering; to adhere  to  the
    20  regulations  promulgated by the commission pursuant to this section with
    21  respect to mobile sports wagering, and to  submit  to  the  commission's
    22  enforcement  of this section and section thirteen hundred sixty-seven of
    23  this title and regulations promulgated thereunder with respect to mobile
    24  sports wagering, including by waiving tribal sovereign immunity for  the
    25  sole  and  limited  purpose of such enforcement. Nothing herein shall be
    26  construed as requiring an Indian Tribe's  agreement  to  adhere  to  the
    27  requirements  of  section thirteen hundred sixty-seven of this title for
    28  gaming conducted on tribal lands  as  a  condition  of  offering  mobile
    29  sports wagering under this section;
    30    (ii)  To  waive the Indian Tribe's exclusive geographic right to offer
    31  and conduct mobile sports wagering, but not otherwise;
    32    (iii) To remit payment to the state equal to tax  on  sports  wagering
    33  revenue imposed under section thirteen hundred sixty-seven of this title
    34  with respect to mobile sports wagering;
    35    (iv) Not to offer or to conduct mobile gaming other than mobile sports
    36  wagering pursuant to this section unless such mobile gaming is otherwise
    37  authorized by state or federal law; and
    38    (v)  To  locate the server or other equipment used by the Indian Tribe
    39  or its agent to accept mobile sports wagering at a casino as defined  in
    40  paragraph (e) of subdivision one of section thirteen hundred sixty-seven
    41  of  this  title  that  has applied for and is eligible to register as an
    42  operator of mobile sports wagering pursuant to this section and  to  pay
    43  the  actual  cost of hosting the server or other equipment as determined
    44  by the commission.
    45    (c) All agreements entered into casinos and Indian Tribes with respect
    46  to hosting mobile sports wagering platforms for an Indian Tribe:
    47    (i) Must be approved by the commission  prior  to  taking  effect  and
    48  before  registration  of the casino or Indian Tribe as an operator under
    49  this section;
    50    (ii) Must provide that the Indian Tribe may, at its  sole  discretion,
    51  terminate  the  agreement  and all commitments, undertakings and waivers
    52  made by the Indian Tribe thereunder,  except  that  the  Indian  Tribe's
    53  waiver  of  its  exclusive  geographic right to offer and conduct mobile
    54  sports wagering shall survive the termination of the agreement;

        S. 1183                            15                            A. 1257
 
     1    (iii) Shall be limited in applicability solely to the  Indian  Tribe's
     2  operation  of  mobile  sports  betting and shall not extend to any other
     3  operation or activity of the Indian Tribe; and
     4    (iv)  Shall not create any rights or privileges to any third party who
     5  is not a party to the agreement, except that the commission  shall  have
     6  the  power  to enforce the agreement including by revoking or suspending
     7  the registration of a party that fails to comply  with  its  obligations
     8  under the agreement.
     9    (d)  No  mobile  sports  wagering  may  be  conducted within an Indian
    10  Tribe's exclusive geographic area unless the Indian Tribe with exclusive
    11  geographic right to that area is registered as an  operator  under  this
    12  section.  Operators shall use geo-location and geo-fencing technology to
    13  ensure that mobile sports wagering is not available to persons  who  are
    14  physically  located  in  an  Indian  Tribe's  exclusive geographic area,
    15  unless the Indian Tribe with exclusive geographic right to that area  is
    16  registered as an operator under this section.
    17    3-b.  (a) The commission shall promulgate regulations to implement the
    18  provisions of this section, including:
    19    (i) the development of the initial form of the application for  regis-
    20  tration;
    21    (ii) responsible protections with regard to compulsive play safeguards
    22  for fair play;
    23    (iii)  requiring  that operators adopt controls to prevent minors from
    24  creating accounts and placing wagers;
    25    (iv) requiring that operators adopt controls to maintain the efficien-
    26  cy of self-exclusion limits; and
    27    (v) requiring that operators utilize commercially  reasonable  techno-
    28  logical means of verifying account holders' identities.
    29    (b) The commission shall prescribe the initial form of the application
    30  for registration, for operators, which shall require, but not be limited
    31  to:
    32    (i) the full name and principal address of the operator;
    33    (ii) if a corporation, the name of the state in which incorporated and
    34  the  full  names and addresses of any partner, officer, director, share-
    35  holder holding ten  percent  or  more  equity,  and  ultimate  equitable
    36  owners;
    37    (iii)  if  a  business entity other than a corporation, the full names
    38  and addresses of the principals,  partners,  shareholders  holding  five
    39  percent or more equity, and ultimate equitable owners;
    40    (iv)  whether such corporation or entity files information and reports
    41  with the United States Securities and Exchange Commission as required by
    42  section thirteen of the Securities Exchange Act of 1934,  15  U.S.C.  §§
    43  78a-78kk;  or  whether  the  securities of the corporation or entity are
    44  regularly traded on an  established  securities  market  in  the  United
    45  States;
    46    (v)  the type and estimated number of contests to be conducted annual-
    47  ly; and
    48    (vi) a statement of the assets and liabilities of the operator.
    49    (c) The commission may require the full names  and  addresses  of  the
    50  officers  and  directors  of  any creditor of the operator, and of those
    51  stockholders who hold more than ten percent of the stock of  the  credi-
    52  tor.
    53    (d)  Upon receipt of an application for registration for each individ-
    54  ual listed on such application as an officer or director, the commission
    55  shall submit to the division of criminal justice services a set of fing-
    56  erprints, and the division of criminal justice services  processing  fee

        S. 1183                            16                            A. 1257
 
     1  imposed  pursuant  to subdivision eight-a of section eight hundred thir-
     2  ty-seven of the executive law and any fee imposed by the federal  bureau
     3  of  investigation.  Upon  receipt  of  the fingerprints, the division of
     4  criminal  justice  services shall promptly forward a set of the individ-
     5  ual's fingerprints to  the  federal  bureau  of  investigation  for  the
     6  purpose  of  a  nationwide  criminal  history  record check to determine
     7  whether such individual has been convicted of a criminal offense in  any
     8  state  other than New York or in a federal jurisdiction. The division of
     9  criminal justice services shall promptly provide the requested  criminal
    10  history information to the commission. For the purposes of this section,
    11  the  term  "criminal  history  information"  shall  mean a record of all
    12  convictions of crimes and any pending criminal charges maintained on  an
    13  individual  by the division of criminal justice services and the federal
    14  bureau of investigation. All such criminal history information  sent  to
    15  the  commission  pursuant  to this subdivision shall be confidential and
    16  shall not be published or in any way disclosed to persons other than the
    17  commission, unless otherwise authorized by law.
    18    (e) Upon receipt of criminal history information pursuant to paragraph
    19  (d) of this subdivision, the commission shall make  a  determination  to
    20  approve or deny an application for registration; provided, however, that
    21  before  making a determination on such application, the commission shall
    22  provide the subject of the record with a copy of such  criminal  history
    23  information  and  a copy of article twenty-three-A of the correction law
    24  and inform such prospective applicant seeking to be credentialed of  his
    25  or  her  right to seek correction of any incorrect information contained
    26  in such criminal history information pursuant  to  the  regulations  and
    27  procedures  established  by  the  division of criminal justice services.
    28  The commission shall deny any application for registration, or  suspend,
    29  refuse  to renew, or revoke any existing registration issued pursuant to
    30  this article, upon the finding that the operator or registrant,  or  any
    31  partner, officer, director, or shareholder:
    32    (i)  has  knowingly  made  a  false  statement of material fact or has
    33  deliberately failed to disclose any information required by the  commis-
    34  sion;
    35    (ii)  has  had  a gaming registration or license denied, suspended, or
    36  revoked in any other state or country for just cause;
    37    (iii) has legally defaulted in the payment of any obligation  or  debt
    38  due to any state or political subdivision; or
    39    (iv)  has  at any time knowingly failed to comply with any requirement
    40  outlined in this section, any other provision of this article, any regu-
    41  lations promulgated by the commission or any additional requirements  of
    42  the commission.
    43    (f)  All  determinations to approve or deny an application pursuant to
    44  this article shall be performed in a manner consistent with  subdivision
    45  sixteen of section two hundred ninety-six of the executive law and arti-
    46  cle  twenty-three-A of the correction law. When the commission denies an
    47  application, the operator shall be afforded notice and the right  to  be
    48  heard  and offer proof in opposition to such determination in accordance
    49  with the regulations of the commission.
    50    4. (a) As a condition of registration in New York state, each operator
    51  shall implement the following measures:
    52    (i) limit each authorized sports bettor to one active and continuously
    53  used account on their platform, and prevent anyone they know, or  should
    54  have known to be a prohibited sports bettor from maintaining accounts or
    55  participating in any sports wagering offered by such operator;

        S. 1183                            17                            A. 1257
 
     1    (ii) adopt appropriate safeguards to ensure, to a reasonable degree of
     2  certainty,  that authorized sports bettors are physically located within
     3  the state when engaging in mobile sports betting;
     4    (iii) prohibit minors from participating in any sports wagering, which
     5  includes:
     6    (1)  if  an operator becomes or is made aware that a minor has created
     7  an account, or accessed the account  of  another,  such  operator  shall
     8  promptly,  within  no  more  than  two business days, refund any deposit
     9  received from the minor, whether or not the  minor  has  engaged  in  or
    10  attempted  to  engage  in  sports  wagering; provided, however, that any
    11  refund may be offset by any prizes already awarded;
    12    (2) each operator shall provide parental control procedures  to  allow
    13  parents  or guardians to exclude minors from access to any sports wager-
    14  ing or platform. Such procedures shall include  a  toll-free  number  to
    15  call for help in establishing such parental controls; and
    16    (3)  each  operator  shall  take  appropriate steps to confirm that an
    17  individual opening an account is not a minor;
    18    (iv) when referencing the chances or likelihood of winning  in  adver-
    19  tisements  or upon placement of a sports wager, make clear and conspicu-
    20  ous statements that are not  inaccurate  or  misleading  concerning  the
    21  chances of winning and the number of winners;
    22    (v) enable authorized sports bettors to exclude themselves from sports
    23  wagering and take reasonable steps to prevent such bettors from engaging
    24  in sports wagering from which they have excluded themselves;
    25    (vi)  permit  any  authorized  sports  bettor  to permanently close an
    26  account registered to such bettor, on any and all platforms supported by
    27  such operator, at any time and for any reason;
    28    (vii) offer introductory procedures  for  authorized  sports  bettors,
    29  that  shall  be  prominently displayed on the main page of such operator
    30  platform, that explain sports wagering;
    31    (viii) implement measures to protect the privacy and  online  security
    32  of authorized sports bettors and their accounts;
    33    (ix)  offer all authorized sports bettors access to his or her account
    34  history and account details;
    35    (x) ensure authorized sports bettors' funds are protected upon deposit
    36  and segregated from the operating funds of such operator  and  otherwise
    37  protected  from  corporate  insolvency,  financial  risk, or criminal or
    38  civil actions against such operator;
    39    (xi) list on each website, in a prominent place, information  concern-
    40  ing  assistance for compulsive play in New York state, including a toll-
    41  free number directing callers to reputable resources containing  further
    42  information, which shall be free of charge;
    43    (xii)  ensure no sports wagering shall be based on a prohibited sports
    44  event;
    45    (xiii) permit  account  holders  to  establish  self-exclusion  gaming
    46  limits  on  a  daily,  weekly, and monthly basis that enable the account
    47  holder to identify the maximum amount of money  an  account  holder  may
    48  deposit during such period of time;
    49    (xiv)  when  an account holder's lifetime deposits exceed two thousand
    50  five hundred dollars, the operator shall prevent any wagering until  the
    51  patron  immediately acknowledges, and acknowledges each year thereafter,
    52  that the account holder has met the deposit threshold and may  elect  to
    53  establish  responsible  gaming  limits  or  close  the  account, and the
    54  account holder has received disclosures  from  the  operator  concerning
    55  problem gambling resources;

        S. 1183                            18                            A. 1257
 
     1    (xv) maintain a publicly accessible internet page dedicated to respon-
     2  sible play, a link to which must appear on the operator's website and in
     3  any  mobile  application  or  electronic  platform on which a bettor may
     4  place wagers. The responsible play page shall include:  a  statement  of
     5  the  operator's policy and commitment to responsible gaming; information
     6  regarding, or links to information regarding, the risks associated  with
     7  gambling  and the potential signs of problem gaming; the availability of
     8  self-imposed responsible gaining limits; a   link to  a  problem  gaming
     9  webpage maintained by the office of addiction services and supports; and
    10  such  other  information  or statements as the commission may require by
    11  rule; and
    12    (xvi) submit annually a problem gaming plan  to  the  commission  that
    13  includes:  the  objectives  of and timetables for implementing the plan;
    14  identification of the persons responsible for implementing and maintain-
    15  ing the plan; procedures for identifying users with suspected  or  known
    16  problem  gaming  behavior; procedures for providing information to users
    17  concerning problem gaming identification and  resources;  procedures  to
    18  prevent gaming by minors and self-excluded persons; and such other prob-
    19  lem gaming information as the commission may require by rule.
    20    (b)  Operators  shall  not directly or indirectly operate, promote, or
    21  advertise any platform or sports wagering to persons located in New York
    22  state unless registered pursuant to this article.
    23    (c) Operators shall not offer any sports wagering based on any prohib-
    24  ited sports event.
    25    (d) Operators shall not permit sports wagering by anyone they know, or
    26  should have known, to be a prohibited sports bettor.
    27    (e) Advertisements for contests and  prizes  offered  by  an  operator
    28  shall  not  target  prohibited  sports bettors, minors, or self-excluded
    29  persons.
    30    (f) Operators shall prohibit the use of third-party scripts or script-
    31  ing programs for any exchange wagering contest and ensure that  measures
    32  are  in  place  to deter, detect and, to the extent reasonably possible,
    33  prevent cheating, including collusion, and the use of cheating  devices,
    34  including  use of software programs that submit exchange wagering sports
    35  wagers unless otherwise approved by the commission.
    36    (g) Operators shall develop and prominently display procedures on  the
    37  main  page  of such operator's platform for the filing of a complaint by
    38  an authorized sports bettor against such operator. An  initial  response
    39  shall  be  given  by  such  operator to such bettor filing the complaint
    40  within forty-eight hours. A complete response shall  be  given  by  such
    41  operator  to  such bettor filing the complaint within ten business days.
    42  An authorized sports bettor may file a complaint alleging a violation of
    43  the provisions of this article with the commission.
    44    (h) Operators shall maintain records  of  all  accounts  belonging  to
    45  authorized sports bettors and retain such records of all transactions in
    46  such accounts for the preceding five years.
    47    (i)  The  server  or  other  equipment which is used by an operator to
    48  accept mobile sports wagering shall be located in  the  licensed  gaming
    49  facility in accordance with regulations promulgated by the commission.
    50    (j) All mobile sports wagering initiated in this state shall be deemed
    51  to  take place at the licensed gaming facility where the server or other
    52  equipment used by an  operator  to  accept  mobile  sports  wagering  is
    53  located,  regardless of the authorized sports bettor's physical location
    54  within this state.
    55    (k) All mobile sports wagering shall be conducted in  compliance  with
    56  this section and section thirteen hundred sixty-seven of this title.

        S. 1183                            19                            A. 1257

     1    (l)  Permit  an  Indian Tribe pursuant to paragraph (a) of subdivision
     2  three-a of this section to place at the  licensed  gaming  facility  the
     3  server  or  other  equipment by which the Indian Tribe may accept mobile
     4  sports wagering, and to make commercially reasonable  accommodations  as
     5  may be necessary to place and operate the Indian Tribe's server or other
     6  equipment.
     7    5.  (a)  Subject to regulations promulgated by the commission, casinos
     8  may enter into agreements with operators  or  affiliates  to  allow  for
     9  authorized  bettors  to  sign  up  to create and fund accounts on mobile
    10  sports wagering platforms offered by the casino.
    11    (b) Authorized sports bettors may sign up to create their account on a
    12  mobile sports wagering platform in person at a casino, or an  affiliate,
    13  or through an operators internet website accessed via a mobile device or
    14  computer, or mobile device applications.
    15    (c)  Authorized sports bettors may deposit and withdraw funds in their
    16  account on a mobile sports wagering platform in person at a  casino,  or
    17  an  affiliate,  electronically  recognized  payment  methods, or via any
    18  other means approved by the commission.
    19    (d) In accordance with  regulations  promulgated  by  the  commission,
    20  casinos may enter into agreements with affiliates to locate self-service
    21  mobile  sports  betting kiosks, which are owned, operated and maintained
    22  by the casino, and connected via the internet to the  casino,  upon  the
    23  premises  of the affiliate.  Authorized sports bettors may place account
    24  wagers, and place and redeem non-account cash wagers, at such kiosks.
    25    (e) All agreements entered into  between  casinos  and  affiliates  in
    26  relation  to  the  provisions  of  this section shall be approved by the
    27  commission prior to taking effect and shall include a plan for the time-
    28  ly payment of liabilities due to  the  affiliate  under  the  agreement;
    29  provided, however, that the commission shall not approve any such agree-
    30  ment  between a casino and a racetrack licensed pursuant to this chapter
    31  or an operator of video lottery gaming at Aqueduct licensed pursuant  to
    32  section  one  thousand  six  hundred  seventeen-a  of the tax law, until
    33  twelve months after the effective date of this paragraph; and  provided,
    34  further,  that  the  commission  shall  not  approve  any such agreement
    35  between a casino and a professional sports stadium or arena, until twen-
    36  ty months after the effective date of this paragraph.
    37    6. The commission shall annually cause a report  to  be  prepared  and
    38  distributed  to the governor and the legislature on the impact of mobile
    39  sports wagering on problem  gamblers  in  New  York.  The  report  shall
    40  include  an  assessment of problem gaming among persons under the age of
    41  thirty. The report shall be prepared by a non-governmental  organization
    42  or  entity  with expertise in serving the needs of persons with gambling
    43  addictions. The report shall  be  prepared  and  distributed  under  the
    44  supervision  of and in coordination with the commission. The costs asso-
    45  ciated with the preparation and distribution  of  the  report  shall  be
    46  borne  by  operators  and the commission shall be authorized to assess a
    47  fee against operators for these  purposes.  The  commission  shall  also
    48  report  periodically  to  the governor and the legislature on the effec-
    49  tiveness of the statutory and regulatory controls in place to ensure the
    50  integrity of mobile sports wagering operations.
    51    § 3. Section 104 of the racing, pari-mutuel wagering and breeding  law
    52  is amended by adding a new subdivision 24 to read as follows:
    53    24. To regulate sports wagering in New York state.
    54    §  4. Severability clause. If any provision of this act or application
    55  thereof shall for any reason be  adjudged  by  any  court  of  competent
    56  jurisdiction  to  be invalid, such judgment shall not affect, impair, or

        S. 1183                            20                            A. 1257
 
     1  invalidate the remainder of the act, but shall be confined in its opera-
     2  tion to the provision thereof directly involved in  the  controversy  in
     3  which the judgment shall have been rendered.
     4    § 5. This act shall take effect immediately.
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