A06113 Summary:

BILL NOA06113C
 
SAME ASSAME AS S00017-D
 
SPONSORPretlow
 
COSPNSRTague, Schmitt, Joyner, Woerner, Santabarbara, Lupardo, Pheffer Amato, Dilan, Weprin, Perry, Fall, Aubry, Stirpe, Taylor, DenDekker, Burke
 
MLTSPNSRHevesi, Pichardo, Rosenthal D, Rozic, Simotas, Stern, Vanel
 
Amd 1367, 104 & 1401, 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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A06113 Actions:

BILL NOA06113C
 
02/28/2019referred to racing and wagering
05/02/2019amend and recommit to racing and wagering
05/02/2019print number 6113a
05/29/2019reported referred to codes
06/06/2019amend and recommit to codes
06/06/2019print number 6113b
06/17/2019amend and recommit to codes
06/17/2019print number 6113c
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A06113 Committee Votes:

RACING AND WAGERING Chair:Pretlow DATE:05/29/2019AYE/NAY:8/3 Action: Favorable refer to committee Codes
PretlowAyeLiPetriNay
GuntherAyeGarbarinoNay
MillerAyeLawrenceNay
SolagesAye
WoernerAye
SantabarbaraAye
Pheffer AmatoAye
VanelAye

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A06113 Floor Votes:

There are no votes for this bill in this legislative session.
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A06113 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6113--C
 
                               2019-2020 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 28, 2019
                                       ___________
 
        Introduced  by M. of A. PRETLOW, TAGUE, SCHMITT, JOYNER, WOERNER, SANTA-
          BARBARA, LUPARDO, PHEFFER AMATO, DILAN, WEPRIN,  PERRY,  FALL,  AUBRY,
          STIRPE,  TAYLOR,  DenDEKKER,  BURKE  -- Multi-Sponsored by -- M. of A.
          HEVESI, PICHARDO, D. ROSENTHAL, ROZIC, SIMOTAS, STERN, VANEL  --  read
          once and referred to the Committee on Racing and Wagering -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee -- reported and referred to the Committee on Codes
          -- committee discharged, bill amended, ordered  reprinted  as  amended
          and  recommitted to said committee -- again reported from said commit-
          tee with amendments, ordered reprinted as amended and  recommitted  to
          said committee
 
        AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
          relation to regulation of sports betting
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 1367 of the racing, pari-mutuel wagering and breed-
     2  ing law, as added by chapter 174 of the laws of 2013, is amended to read
     3  as follows:
     4    § 1367. Sports wagering. 1. As used in this section:
     5    (a)  "Affiliate"  means  any off-track betting corporation, franchised
     6  corporation, or race track licensed pursuant to this chapter, an  opera-
     7  tor  of  video  lottery  gaming at Aqueduct licensed pursuant to section
     8  sixteen hundred seventeen-a of the  tax  law,  which  has  an  affiliate
     9  agreement  with a casino pursuant to section thirteen hundred sixty-sev-
    10  en-a of this title.  Any professional sports stadium or arena may  serve
    11  as an affiliate;
    12    (b)  "Agent" means an entity that is party to a contract with a casino
    13  authorized to operate a sports pool and is approved by the commission to
    14  operate a sports pool on behalf of such casino;
    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-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05498-19-9

        A. 6113--C                          2
 
     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

        A. 6113--C                          3
 
     1  relevant sports governing body or an entity expressly authorized by  the
     2  sports governing body to provide such information to casinos;
     3    (r)  "Operator"  means  a casino which has elected to operate a sports
     4  pool (or agent of such casino) or an Indian Tribe (or an agent  of  such
     5  Indian  Tribe)  that  has  entered into a tribal-state gaming compact in
     6  accordance with the Indian Gaming Regulatory Act 25 U.S.C. 2710, that is
     7  in effect and has been ratified by the state  and  has  entered  into  a
     8  sports  wagering  agreement  pursuant to section thirteen hundred sixty-
     9  seven-a of this title;
    10    (s) "Persons who present sporting contests" includes sports  governing
    11  bodies and associations, their members and affiliates, and other persons
    12  who present sporting contests to the public;
    13    [(e)]  (t)  "Professional  sport  or athletic event" means an event at
    14  which two or more persons participate in sports or athletic  events  and
    15  receive  compensation  in  excess  of  actual expenses for their partic-
    16  ipation in such event;
    17    (u) "Prohibited conduct" means any statement, action, and other commu-
    18  nication intended to influence, manipulate, or control a betting outcome
    19  of a sporting contest or of any individual occurrence or performance  in
    20  a  sporting contest in exchange for financial gain or to avoid financial
    21  or physical harm. "Prohibited conduct" includes statements, actions, and
    22  communications made to a covered person by a  third  party,  such  as  a
    23  family member or through social media;
    24    (v)  "Professional sports stadium or arena" means a stadium, ballpark,
    25  or arena that is the permanent home of a professional sports team  play-
    26  ing  at  the  highest  professional level in its sport and has a seating
    27  capacity for such contests exceeding fifteen thousand seats;
    28    [(f)] (w) "Prohibited sports bettor" means:
    29    (i) any officer or employee of the commission;
    30    (ii) any principal or key employee of a casino or operator, except  as
    31  may be permitted by the commission for good cause shown;
    32    (iii)  any  casino  gaming  or  non-gaming employee at the casino that
    33  employs such person and at any operator that has an agreement with  that
    34  casino;
    35    (iv)  any  contractor,  subcontractor,  or  consultant,  or officer or
    36  employee of a contractor, subcontractor, or consultant, of a  casino  if
    37  such  person  is  directly  involved  in the operation or observation of
    38  sports  wagering,  or  the  processing  of  sports  wagering  claims  or
    39  payments;
    40    (v)  Any  person  subject  to  a  contract with the commission if such
    41  contract contains a provision prohibiting such person from participating
    42  in sports wagering;
    43    (vi) Any spouse, child, brother, sister or parent residing as a member
    44  of the same household in the principal place of  abode  of  any  of  the
    45  foregoing  persons  at  the  same  casino  where the foregoing person is
    46  prohibited from participating in sports wagering;
    47    (vii) any individual with access to non-public  confidential  informa-
    48  tion about sports wagering;
    49    (viii)  any  amateur  or  professional  athlete if the sports wager is
    50  based on any sport or athletic event overseen by  the  athlete's  sports
    51  governing body;
    52    (ix)  any sports agent, owner or employee of a team, player and umpire
    53  union personnel, and employee referee, coach or  official  of  a  sports
    54  governing  body,  if  the sports wager is based on any sport or athletic
    55  event overseen by the individual's sports governing body;

        A. 6113--C                          4
 
     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    (x)  "Prohibited  sports event" means any collegiate sport or athletic
     5  event that takes place in New York or a sport or athletic event in which
     6  any New York college team participates regardless  of  where  the  event
     7  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

        A. 6113--C                          5
 
     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    2.  [No gaming facility may conduct sports wagering until such time as
     7  there has been a change in federal law authorizing such or upon a ruling
     8  of a court of competent jurisdiction that such activity is lawful.
     9    3.] (a) In addition  to  authorized  gaming  activities,  a  [licensed
    10  gaming  facility] casino may [when authorized by subdivision two of this
    11  section] operate a sports pool upon the approval of the  commission  and
    12  in  accordance  with the provisions of this section and applicable regu-
    13  lations promulgated pursuant to this article. The commission shall  hear
    14  and  decide  promptly  and  in  reasonable  order all applications for a
    15  license to operate a sports pool, shall have the general  responsibility
    16  for  the  implementation of this section and shall have all other duties
    17  specified in this section with regard to the operation of a sports pool.
    18  The license to operate a sports pool shall be in addition to  any  other
    19  license  required to be issued to operate a [gaming facility] casino. No
    20  license to operate a sports pool shall be issued by  the  commission  to
    21  any  entity unless it has established its financial stability, integrity
    22  and responsibility and its good character, honesty and integrity.
    23    No later than five years after the date of the issuance of  a  license
    24  and  every  five  years  thereafter or within such lesser periods as the
    25  commission may direct, a licensee shall submit to  the  commission  such
    26  documentation  or  information  as  the  commission  may  by  regulation
    27  require, to demonstrate to the satisfaction of the executive director of
    28  the commission that the licensee continues to meet the  requirements  of
    29  the law and regulations.
    30    (b) As a condition of licensure the commission shall require that each
    31  agent authorized to conduct sports wagering pay a one-time fee of twelve
    32  million  dollars.  Such  fee  shall be paid within thirty days of gaming
    33  commission approval prior to license issuance  and  deposited  into  the
    34  commercial  gaming revenue fund established pursuant to section thirteen
    35  hundred fifty-two of this article.
    36    (c) A sports pool shall  be  operated  in  a  sports  wagering  lounge
    37  located  at  a  casino.  The  lounge  shall  conform to all requirements
    38  concerning square footage,  design,  equipment,  security  measures  and
    39  related matters which the commission shall by regulation prescribe.
    40    [(c)] (d) The operator of a sports pool shall establish or display the
    41  odds at which wagers may be placed on sports events.
    42    [(d)]  (e)  An operator shall accept wagers on sports events only from
    43  persons physically present in the sports  wagering  lounge,  or  through
    44  mobile  sports  wagering  offered  pursuant  to section thirteen hundred
    45  sixty-seven-a of this title. A person placing a wager shall be at  least
    46  twenty-one years of age.
    47    [(e)]  (f)  An  operator  may  also  accept layoff bets as long as the
    48  authorized sports pool places such wagers with another authorized sports
    49  pool or pools in accordance with regulations of the commission. A sports
    50  pool that places a layoff bet shall inform the sports pool accepting the
    51  wager that the wager is being placed by a sports pool and shall disclose
    52  its identity.
    53    (g) An operator may utilize global risk  management  pursuant  to  the
    54  approval of the commission.
    55    (h)  An  operator  shall not admit into the sports wagering lounge, or
    56  accept wagers from, any person whose name appears on the exclusion list.

        A. 6113--C                          6

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

        A. 6113--C                          7
 
     1  bettors. The rules shall specify the  amounts  to  be  paid  on  winning
     2  wagers  and  the  effect of schedule changes.  The house rules, together
     3  with any other information the commission deems  appropriate,  shall  be
     4  conspicuously  displayed  in  the sports wagering lounge and included in
     5  the terms and conditions of the  account  wagering  system,  and  copies
     6  shall be made readily available to [patrons] authorized sports bettors.
     7    6. (a) Each casino that offers sports wagering shall annually submit a
     8  report  to the commission no later than the twenty-eighth of February of
     9  each year, which shall include the following information:
    10    (i) the total amount of sports wagers received from authorized  sports
    11  bettors;
    12    (ii) the total amount of prizes awarded to authorized sports bettors;
    13    (iii)  the  total  amount of sports wagering gross revenue received by
    14  the casino;
    15    (iv) the total amount contributed in sports  betting  royalty  revenue
    16  pursuant to subdivision eight of this section;
    17    (v)  the  total  amount  of  wagers  received on each sports governing
    18  body's sporting events;
    19    (vi) the number of accounts held by authorized sports bettors;
    20    (vii) the total number of new accounts established  in  the  preceding
    21  year,  as well as the total number of accounts permanently closed in the
    22  preceding year;
    23    (viii) the total number of authorized sports bettors that requested to
    24  exclude themselves from sports wagering; and
    25    (ix) any additional information that the commission deems necessary to
    26  carry out the provisions of this article.
    27    (b) Upon the submission of such annual report, to such extent that the
    28  commission deems it to be in the public interest, the  commission  shall
    29  be  authorized  to conduct a financial audit of any casino, at any time,
    30  to ensure compliance with this article.
    31    (c) The commission shall annually publish a report based on the aggre-
    32  gate information provided by all casinos pursuant to  paragraph  (a)  of
    33  this  subdivision,  which shall be published on the commission's website
    34  no later than one  hundred  eighty  days  after  the  deadline  for  the
    35  submission of individual reports as specified in such paragraph (a).
    36    7. (a) Within thirty days of the end of each calendar quarter, a casi-
    37  no  offering  sports  wagering  shall  remit  to the commission a sports
    38  wagering royalty fee of one-fifth (.20) of one  percent  of  the  amount
    39  wagered  on  sports  events  conducted  by  registered  sports governing
    40  bodies.  The fee shall be remitted on  a  form  as  the  commission  may
    41  require,  on  which the casino shall identify the percentage of wagering
    42  during the  reporting  period  attributable  to  each  registered  sport
    43  governing body's sports events.
    44    (b)  No  later  than the thirtieth of April of each year, a registered
    45  sports governing body may submit a claim for disbursement of the royalty
    46  fee funds remitted by casinos in the previous  calendar  year  on  their
    47  respective  sports  events.   Within thirty days of submitting its claim
    48  for disbursement, the registered sports governing body shall  meet  with
    49  the  commission  to  provide  the  commission with evidence of policies,
    50  procedures and training programs  it  has  implemented  to  protect  the
    51  integrity of its sports events.
    52    (c)  Within  thirty  days  of  its  meeting with the registered sports
    53  governing  body,  the  commission  shall  approve  a  timely  claim  for
    54  disbursement.
    55    (d)  (i) Persons who present sporting contests shall have authority to
    56  remove spectators and others from any facility for violation any  appli-

        A. 6113--C                          8
 
     1  cable  codes  of  conduct,  and to deny persons access to all facilities
     2  they control, to revoke season tickets or comparable  licenses,  and  to
     3  share  information  about  such persons with others who present sporting
     4  contests and with the appropriate jurisdictions' law enforcement author-
     5  ities.
     6    (ii) Persons who present sporting contests shall provide notice to the
     7  general  public  and  those  who attend sporting contests or visit their
     8  facilities of any applicable codes of conduct and the  potential  penal-
     9  ties for violating such codes.
    10    8. For the privilege of conducting sports wagering in the state, casi-
    11  nos  shall  pay  a tax equivalent to eight and one-half percent of their
    12  sports wagering gross revenue, excluding sports wagering  gross  revenue
    13  attributed  to  mobile sports wagering offered pursuant to section thir-
    14  teen hundred sixty-seven-a of this title. Casinos shall pay a tax equiv-
    15  alent of twelve percent of their sports wagering  gross  revenue  attri-
    16  buted  to  mobile  sports  wagering offered pursuant to section thirteen
    17  hundred sixty-seven-a of this title.
    18    9. The commission shall pay into the commercial  gaming  revenue  fund
    19  established  pursuant  to section ninety-seven-nnnn of the state finance
    20  law eighty-five percent of the state tax imposed by  this  section;  any
    21  interest  and  penalties  imposed  by  the  commission relating to those
    22  taxes; all penalties levied and collected by  the  commission;  and  the
    23  appropriate  funds,  cash  or prizes forfeited from sports wagering. The
    24  commission shall pay into the commercial gaming fund five percent of the
    25  state tax imposed by this section to be distributed for problem gambling
    26  education and treatment purposes pursuant to paragraph a of  subdivision
    27  four  of section ninety-seven-nnnn of the state finance law. The commis-
    28  sion shall pay into the commercial gaming fund five percent of the state
    29  tax imposed by this section to be distributed for the cost of regulation
    30  pursuant to paragraph c of subdivision four of section ninety-seven-nnnn
    31  of the state finance law.  The commission shall pay into the  commercial
    32  gaming  fund five percent of the state tax imposed by this section to be
    33  distributed in the same formula as market  origin  credits  pursuant  to
    34  section  one  hundred  fifteen-b  of  this chapter. The commission shall
    35  require at least monthly deposits by the casino of any payments pursuant
    36  to subdivision eight of this section, at such times, under  such  condi-
    37  tions,  and  in  such  depositories  as shall be prescribed by the state
    38  comptroller. The deposits shall be deposited to the credit of the  state
    39  commercial  gaming  revenue fund. The commission shall require a monthly
    40  report and reconciliation statement to be filed with it on or before the
    41  tenth day of each month, with respect to  gross  revenues  and  deposits
    42  received and made, respectively, during the preceding month.
    43    10.  The  commission  may perform audits of the books and records of a
    44  casino, at such times and intervals as it  deems  appropriate,  for  the
    45  purpose  of  determining  the  sufficiency  of tax payments. If a return
    46  required with regard to obligations imposed is not filed, or if a return
    47  when filed or is determined by the commission to be incorrect or  insuf-
    48  ficient  with or without an audit, the amount of tax due shall be deter-
    49  mined by the commission. Notice of such determination shall be given  to
    50  the  casino  liable for the payment of the tax. Such determination shall
    51  finally and irrevocably fix the tax unless the casino against whom it is
    52  assessed, within thirty days after receiving  notice  of  such  determi-
    53  nation,  shall  apply to the commission for a hearing in accordance with
    54  the regulations of the commission.
    55    11. Nothing in this section shall apply to interactive fantasy  sports
    56  offered  pursuant  to article fourteen of this chapter.  Nothing in this

        A. 6113--C                          9
 
     1  section authorizes any entity that conducts interactive  fantasy  sports
     2  offered  pursuant  to article fourteen of this chapter to conduct sports
     3  wagering unless it separately qualifies for, and obtains,  authorization
     4  pursuant to this section.
     5    12.  A  casino that is also licensed under article three of this chap-
     6  ter, and must maintain racing pursuant to paragraph (b)  of  subdivision
     7  one  of  section  thirteen  hundred fifty-five of this article, shall be
     8  allowed to offer pari-mutuel wagering on horse racing events in  accord-
     9  ance  with  their  license under article three of this chapter. Notwith-
    10  standing subparagraph (ii) of paragraph c of subdivision two of  section
    11  one  thousand  eight  of  this  chapter, a casino located in the city of
    12  Schenectady shall be allowed to  offer  pari-mutuel  wagering  on  horse
    13  racing  events, provided such wagering is conducted by the regional off-
    14  track betting corporation in such region as the casino is  located.  Any
    15  other  casino  shall  be  allowed to offer pari-mutuel wagering on horse
    16  racing events, provided such wagering is conducted by the regional  off-
    17  track  betting corporation in such region as the casino is located.  Any
    18  physical location where pari-mutuel wagering on horse racing  events  is
    19  offered by a casino and conducted by a regional off-track betting corpo-
    20  ration  in  accordance  with  this  subdivision  shall be deemed to be a
    21  branch location of the regional off-track betting corporation in accord-
    22  ance with section one thousand eight of this  chapter.    Mobile  sports
    23  betting  kiosks located on the premises of affiliates in accordance with
    24  paragraph (d) of subdivision five of section thirteen hundred sixty-sev-
    25  en-a of this title shall not be allowed to offer pari-mutuel wagering on
    26  horse racing events.
    27    13. A sports governing body may notify the commission that it  desires
    28  to  restrict,  limit,  or  exclude  wagering  on  its sporting events by
    29  providing notice in the form and manner as the commission  may  require.
    30  Upon  receiving  such notice, the commission shall review the request in
    31  good faith, seek input from the casinos on such a request,  and  if  the
    32  commission deems it appropriate, promulgate regulations to restrict such
    33  sports  wagering. If the commission denies a request, the sports govern-
    34  ing body shall be afforded notice and the right to be  heard  and  offer
    35  proof  in  opposition to such determination in accordance with the regu-
    36  lations of  the  commission.  Offering  or  taking  wagers  contrary  to
    37  restrictions  promulgated  by  the  commission  is  a  violation of this
    38  section. In the event that the request is in relation  to  an  emergency
    39  situation,  the  executive  director  of  the commission may temporarily
    40  prohibit the specific wager in question until  the  commission  has  the
    41  opportunity to issue temporary regulations addressing the issue.
    42    14.  (a)  The  commission  shall  designate  the division of the state
    43  police to have primary responsibility for conducting, or  assisting  the
    44  commission in conducting, investigations into abnormal betting activity,
    45  match  fixing,  and  other  conduct that corrupts a betting outcome of a
    46  sporting event or events for purposes of financial gain.
    47    (b) Casinos shall maintain records of sports  wagering  operations  in
    48  accordance  with  regulations promulgated by the commission. These regu-
    49  lations shall, at a minimum, require a casino  to  adopt  procedures  to
    50  obtain personally identifiable information from any individual who plac-
    51  es any single wager in an amount of ten thousand dollars or greater.
    52    (c)  The  commission  shall cooperate with a sports governing body and
    53  casinos to ensure the timely, efficient, and accurate sharing of  infor-
    54  mation.
    55    (d)  The  commission  and  casinos shall cooperate with investigations
    56  conducted by  sports  governing  bodies  or  law  enforcement  agencies,

        A. 6113--C                         10
 
     1  including  but not limited to providing or facilitating the provision of
     2  account-level betting information and audio or video files  relating  to
     3  persons  placing  wagers; provided, however, that the casino be required
     4  to share any personally identifiable information of an authorized sports
     5  bettor  with  a sports governing body only pursuant to an order to do so
     6  by the commission or a law enforcement  agency  or  court  of  competent
     7  jurisdiction.
     8    (e)  Casinos  shall  promptly report to the commission any information
     9  relating to:
    10    (i) criminal or disciplinary proceedings commenced against the  casino
    11  in connection with its operations;
    12    (ii) abnormal betting activity or patterns that may indicate a concern
    13  with the integrity of a sporting event or events;
    14    (iii)  any  potential  breach  of the relevant sports governing body's
    15  internal rules and codes of conduct pertaining to  sports  wagering,  as
    16  they have been provided by the sports governing body to the casino;
    17    (iv)  any  other conduct that corrupts a betting outcome of a sporting
    18  event or events for purposes of financial gain, including match  fixing;
    19  and
    20    (v)  suspicious or illegal wagering activities, including use of funds
    21  derived from illegal  activity,  wagers  to  conceal  or  launder  funds
    22  derived  from  illegal  activity,  using  agents  to place wagers, using
    23  confidential non-public information, and using false identification.
    24    The commission shall also  promptly  report  information  relating  to
    25  conduct  described  in  subparagraphs (ii), (iii) and (iv) of this para-
    26  graph to the relevant sports governing body.
    27    (f) Casinos shall maintain the confidentiality of information provided
    28  by a sports governing body to the casino, unless disclosure is  required
    29  by this section, the commission, other law, or court order.
    30    (g)  The  commission,  by regulation, may authorize and promulgate any
    31  rules necessary to implement agreements with other states, or authorized
    32  agencies thereof to enable the  sharing  of  information  to  facilitate
    33  integrity  monitoring  and  the  conduct of investigations into abnormal
    34  betting activity, match  fixing,  and  other  conduct  that  corrupts  a
    35  betting  outcome of a sporting event or events for purposes of financial
    36  gain.
    37    (h) The commission shall study the potential for the  creation  of  an
    38  interstate  database  of all sports wagering information for the purpose
    39  of integrity monitoring, and shall create a final report  regarding  all
    40  findings  and  recommendations  to  be  delivered upon completion of all
    41  objectives described herein, but in no event later than March first, two
    42  thousand twenty, to the governor, the speaker of the  assembly  and  the
    43  temporary president of the senate.
    44    (i)  The  commission  shall  investigate all reasonable allegations of
    45  prohibited conduct and refer any allegations it deems  credible  to  the
    46  appropriate law enforcement entity.
    47    (j) The commission shall establish a hotline or other method of commu-
    48  nication  that  allows  any  person to confidentially report information
    49  about prohibited conduct to the commission. The identity of  any  person
    50  reporting prohibited conduct to the commission shall remain confidential
    51  unless that person authorizes disclosure of his or her identity or until
    52  such  time  as  the  allegation of prohibited conduct is referred to law
    53  enforcement.
    54    15. (a) Casinos shall use whatever data source they  deem  appropriate
    55  for  determining the result of sports wagering involving tier one sports
    56  wagers.

        A. 6113--C                         11
 
     1    (b) Casinos shall only use official league data in all sports wagering
     2  involving tier two sports wagers, if the relevant sports governing  body
     3  possesses  a feed of official league data, and makes such feed available
     4  for purchase by the casinos on commercially reasonable terms  as  deter-
     5  mined by the commission.
     6    (c)  A sports governing body may notify the commission that it desires
     7  to require casinos to  use  official  league  data  in  sports  wagering
     8  involving  specific  tier three sports wagers by providing notice in the
     9  form and manner as the  commission  may  require.  Upon  receiving  such
    10  notice,  the  commission  shall  review the request, seek input from the
    11  casinos on such a request, and if the commission deems  it  appropriate,
    12  promulgate regulations to require casinos to use official league data on
    13  sports  wagering involving such tier three sports wagers if the relevant
    14  sports governing body possesses a feed  of  official  league  data,  and
    15  makes  such  feed  available for purchase by the casinos on commercially
    16  reasonable terms as determined by the commission.
    17    (d) When determining whether or not a supplier of official league data
    18  is offering commercially reasonable terms, the commission shall consider
    19  the amount charged by the supplier of official  league  data  to  gaming
    20  operators  in other jurisdictions. This information shall be provided to
    21  the commission by the supplier of official league data upon  request  of
    22  the commission. Any entity providing data to a casino for the purpose of
    23  tier  two sports wagers shall obtain a license as a casino vendor enter-
    24  prise and such license shall be issued pursuant  to  the  provisions  of
    25  section  thirteen hundred twenty-seven of this article and in accordance
    26  with the regulations promulgated by the commission.
    27    (e) No casino shall enter into an agreement with  a  sports  governing
    28  body  or  an  entity  expressly authorized to distribute official league
    29  data to be the exclusive recipient of their official league data.
    30    (f) The commission shall promulgate regulations to allow an authorized
    31  sports bettor to file a complaint alleging an underpayment  or  non-pay-
    32  ment  of a winning sports wager. Any such regulations shall provide that
    33  the commission utilize the statistics, results, outcomes, and other data
    34  relating to a sporting event that have been obtained from  the  relevant
    35  sports governing body in determining the validity of such claim.
    36    16.  A casino shall not permit sports wagering by anyone they know, or
    37  should have known, to be a prohibited sports bettor.
    38    17. Sports wagering conducted  pursuant  to  the  provisions  of  this
    39  section is hereby authorized.
    40    18.  The commission shall promulgate rules that require an operator to
    41  implement responsible gaming programs that include comprehensive employ-
    42  ee trainings on responding to circumstances in which individuals present
    43  signs of a gambling addiction and requirements for casinos and operators
    44  under section thirteen hundred sixty-seven-a of this  title  to  assess,
    45  prevent,  and  address  problem gaming by users under the age of thirty.
    46  The commission shall establish a hotline or  other  method  of  communi-
    47  cation  that  will allow any person to confidentially report information
    48  about prohibited conduct to the commission. The commission shall promul-
    49  gate rules governing the investigation and resolution of a charge of any
    50  person purported to have engaged in prohibited conduct.
    51    19. The conduct of sports wagering in violation  of  this  section  is
    52  prohibited.
    53    20. (a) In addition to any criminal penalties provided for under arti-
    54  cle  two  hundred twenty-five of the penal law, any person, firm, corpo-
    55  ration, association, agent, or employee, who is not authorized to  offer
    56  sports  wagering  under  this section or section thirteen hundred sixty-

        A. 6113--C                         12
 
     1  seven-a of this title, and who knowingly offers  or  attempts  to  offer
     2  sports  wagering  or  mobile sports wagering in New York shall be liable
     3  for a civil penalty of not more than one hundred  thousand  dollars  for
     4  each  violation, not to exceed five million dollars for violations aris-
     5  ing out of the same transaction or occurrence, which shall accrue to the
     6  state and may be recovered in a civil action brought by the commission.
     7    (b) Any person, firm, corporation, association, agent, or employee who
     8  knowingly violates any procedure  implemented  under  this  section,  or
     9  section  thirteen  hundred  sixty-seven-a of this title, shall be liable
    10  for a civil penalty of not more than  five  thousand  dollars  for  each
    11  violation,  not  to exceed fifty thousand dollars for violations arising
    12  out of the same transaction or occurrence, which  shall  accrue  to  the
    13  state and may be recovered in a civil action brought by the commission.
    14    §  2.  The racing, pari-mutuel wagering and breeding law is amended by
    15  adding a new section 1367-a to read as follows:
    16    § 1367-a. Mobile sports wagering. 1. (a) Except as  provided  in  this
    17  subdivision,  the  terms in this section shall have the same meanings as
    18  such terms are defined in subdivision one of  section  thirteen  hundred
    19  sixty-seven of this title.
    20    (b)  "Operator" for purposes of this section, means a casino which has
    21  elected to offer a mobile sports wagering platform, an Indian Tribe  (or
    22  agent  of such Indian Tribe) that has entered into a tribal-state gaming
    23  compact in accordance with the Indian Gaming Regulatory Act,  25  U.S.C.
    24  2710,  that  is  in  effect  and  has been ratified by the state and has
    25  entered into a sports wagering agreement to operate with the  commission
    26  pursuant  to this section, or the agent of such licensed gaming facility
    27  or such Indian Tribe.
    28    2. (a) No casino shall administer, manage, or otherwise make available
    29  a mobile sports wagering platform to persons located in New  York  state
    30  unless registered with the commission pursuant to this section. A casino
    31  may use one mobile sports wagering platform and brand provided that such
    32  platform  and  brand has been reviewed and approved by the commission. A
    33  casino may contract with an independent operator to provide  its  mobile
    34  sports wagering platform. The independent operator may display its brand
    35  on the platform in addition to the casino's brand.
    36    (b)  Registrations issued by the commission shall remain in effect for
    37  five years. The commission shall establish a process for renewal.
    38    (c) The commission shall publish a list of all operators  and  casinos
    39  registered to offer mobile sports wagering in New York state pursuant to
    40  this section on the commission's website for public use.
    41    3.  In  the  event that a casino contracts with an operator to provide
    42  its mobile sports wagering  platform  and  brand,  such  operator  shall
    43  obtain a license as a casino vendor enterprise prior to the execution of
    44  any  such  contract,  and  such  license shall be issued pursuant to the
    45  provisions of section thirteen hundred twenty-seven of this article  and
    46  in accordance with the regulations promulgated by the commission.
    47    3-a.  (a)  As  a condition of registration as an operator, each casino
    48  shall agree, upon request of an Indian Tribe that has not  entered  into
    49  an  agreement for mobile sports wagering with another casino, to provide
    50  a site for a mobile sports wagering server and related equipment for the
    51  Indian Tribe as directed by the commission, at no  cost  to  the  Indian
    52  Tribe  except  the direct and actual cost of hosting the server or other
    53  equipment used by the Indian Tribe as determined by the commission.
    54    (b) As a condition of registration as an operator in New  York  state,
    55  an  Indian  Tribe shall enter into an agreement with the commission with
    56  respect to mobile sports wagering:

        A. 6113--C                         13
 
     1    (i) To follow the requirements imposed on casinos and operators  under
     2  this section and section thirteen hundred sixty-seven of this title with
     3  respect  to  the Indian Tribe's mobile sports wagering; to adhere to the
     4  regulations promulgated by the commission pursuant to this section  with
     5  respect  to  mobile  sports  wagering, and to submit to the commission's
     6  enforcement of this section and section thirteen hundred sixty-seven  of
     7  this title and regulations promulgated thereunder with respect to mobile
     8  sports  wagering, including by waiving tribal sovereign immunity for the
     9  sole and limited purpose of such enforcement. Nothing  herein  shall  be
    10  construed  as  requiring  an  Indian  Tribe's agreement to adhere to the
    11  requirements of section thirteen hundred sixty-seven of this  title  for
    12  gaming  conducted  on  tribal  lands  as  a condition of offering mobile
    13  sports wagering under this section;
    14    (ii) To waive the Indian Tribe's exclusive geographic right  to  offer
    15  and conduct mobile sports wagering, but not otherwise;
    16    (iii)  To  remit  payment to the state equal to tax on sports wagering
    17  revenue imposed under section thirteen hundred sixty-seven of this title
    18  with respect to mobile sports wagering;
    19    (iv) Not to offer or to conduct mobile gaming other than mobile sports
    20  wagering pursuant to this section unless such mobile gaming is otherwise
    21  authorized by state or federal law; and
    22    (v) To locate the server or other equipment used by the  Indian  Tribe
    23  or  its agent to accept mobile sports wagering at a casino as defined in
    24  paragraph (d) of subdivision one of section thirteen hundred sixty-seven
    25  of this title that has applied for and is eligible  to  register  as  an
    26  operator  of  mobile sports wagering pursuant to this section and to pay
    27  the actual cost of hosting the server or other equipment  as  determined
    28  by the commission.
    29    (c) All agreements entered into casinos and Indian Tribes with respect
    30  to hosting mobile sports wagering platforms for an Indian Tribe:
    31    (i)  Must  be  approved  by  the commission prior to taking effect and
    32  before registration of the casino or Indian Tribe as an  operator  under
    33  this section;
    34    (ii)  Must  provide that the Indian Tribe may, at its sole discretion,
    35  terminate the agreement and all commitments,  undertakings  and  waivers
    36  made  by  the  Indian  Tribe  thereunder, except that the Indian Tribe's
    37  waiver of its exclusive geographic right to  offer  and  conduct  mobile
    38  sports wagering shall survive the termination of the agreement;
    39    (iii)  Shall  be limited in applicability solely to the Indian Tribe's
    40  operation of mobile sports betting and shall not  extend  to  any  other
    41  operation or activity of the Indian Tribe; and
    42    (iv)  Shall not create any rights or privileges to any third party who
    43  is not a party to the agreement, except that the commission  shall  have
    44  the  power  to enforce the agreement including by revoking or suspending
    45  the registration of a party that fails to comply  with  its  obligations
    46  under the agreement.
    47    (d)  No  mobile  sports  wagering  may  be  conducted within an Indian
    48  Tribe's exclusive geographic area unless the Indian Tribe with exclusive
    49  geographic right to that area is registered as an  operator  under  this
    50  section.  Operators shall use geo-location and geo-fencing technology to
    51  ensure that mobile sports wagering is not available to persons  who  are
    52  physically  located  in  an  Indian  Tribe's  exclusive geographic area,
    53  unless the Indian Tribe with exclusive geographic right to that area  is
    54  registered as an operator under this section.
    55    3-b.(a)  The  commission shall promulgate regulations to implement the
    56  provisions of this section, including:

        A. 6113--C                         14
 
     1    (i) the development of the initial form of the application for  regis-
     2  tration;
     3    (ii) responsible protections with regard to compulsive play safeguards
     4  for fair play;
     5    (iii)  requiring  that operators adopt controls to prevent minors from
     6  creating accounts and placing wagers;
     7    (iv) requiring that operators adopt controls to maintain the efficien-
     8  cy of self-exclusion limits; and
     9    (v) requiring that operators utilize commercially  reasonable  techno-
    10  logical means of verifying account holders' identities.
    11    (b) The commission shall prescribe the initial form of the application
    12  for registration, for operators, which shall require, but not be limited
    13  to:
    14    (i) the full name and principal address of the operator;
    15    (ii) if a corporation, the name of the state in which incorporated and
    16  the  full  names and addresses of any partner, officer, director, share-
    17  holder holding ten  percent  or  more  equity,  and  ultimate  equitable
    18  owners;
    19    (iii)  if  a  business entity other than a corporation, the full names
    20  and addresses of the principals,  partners,  shareholders  holding  five
    21  percent or more equity, and ultimate equitable owners;
    22    (iv)  whether such corporation or entity files information and reports
    23  with the United States Securities and Exchange Commission as required by
    24  section thirteen of the Securities Exchange Act of 1934,  15  U.S.C.  §§
    25  78a-78kk;  or  whether  the  securities of the corporation or entity are
    26  regularly traded on an  established  securities  market  in  the  United
    27  States;
    28    (v)  the type and estimated number of contests to be conducted annual-
    29  ly; and
    30    (vi) a statement of the assets and liabilities of the operator.
    31    (c) The commission may require the full names  and  addresses  of  the
    32  officers  and  directors  of  any creditor of the operator, and of those
    33  stockholders who hold more than ten percent of the stock of  the  credi-
    34  tor.
    35    (d)  Upon receipt of an application for registration for each individ-
    36  ual listed on such application as an officer or director, the commission
    37  shall submit to the division of criminal justice services a set of fing-
    38  erprints, and the division of criminal justice services  processing  fee
    39  imposed  pursuant  to subdivision eight-a of section eight hundred thir-
    40  ty-seven of the executive law and any fee imposed by the federal  bureau
    41  of  investigation.  Upon  receipt  of  the fingerprints, the division of
    42  criminal justice services shall promptly forward a set of  the  individ-
    43  ual's  fingerprints  to  the  federal  bureau  of  investigation for the
    44  purpose of a nationwide  criminal  history  record  check  to  determine
    45  whether  such individual has been convicted of a criminal offense in any
    46  state other than New York or in a federal jurisdiction. The division  of
    47  criminal  justice services shall promptly provide the requested criminal
    48  history information to the commission. For the purposes of this section,
    49  the term "criminal history information"  shall  mean  a  record  of  all
    50  convictions  of crimes and any pending criminal charges maintained on an
    51  individual by the division of criminal justice services and the  federal
    52  bureau  of  investigation. All such criminal history information sent to
    53  the commission pursuant to this subdivision shall  be  confidential  and
    54  shall not be published or in any way disclosed to persons other than the
    55  commission, unless otherwise authorized by law.

        A. 6113--C                         15
 
     1    (e) Upon receipt of criminal history information pursuant to paragraph
     2  (d)  of  this  subdivision, the commission shall make a determination to
     3  approve or deny an application for registration; provided, however, that
     4  before making a determination on such application, the commission  shall
     5  provide  the  subject of the record with a copy of such criminal history
     6  information and a copy of article twenty-three-A of the  correction  law
     7  and  inform such prospective applicant seeking to be credentialed of his
     8  or her right to seek correction of any incorrect  information  contained
     9  in  such  criminal  history  information pursuant to the regulations and
    10  procedures established by the division  of  criminal  justice  services.
    11  The  commission shall deny any application for registration, or suspend,
    12  refuse to renew, or revoke any existing registration issued pursuant  to
    13  this  article,  upon the finding that the operator or registrant, or any
    14  partner, officer, director, or shareholder:
    15    (i) has knowingly made a false  statement  of  material  fact  or  has
    16  deliberately  failed to disclose any information required by the commis-
    17  sion;
    18    (ii) has had a gaming registration or license  denied,  suspended,  or
    19  revoked in any other state or country for just cause;
    20    (iii)  has  legally defaulted in the payment of any obligation or debt
    21  due to any state or political subdivision; or
    22    (iv) has at any time knowingly failed to comply with  any  requirement
    23  outlined in this section, any other provision of this article, any regu-
    24  lations  promulgated by the commission or any additional requirements of
    25  the commission.
    26    (f) All determinations to approve or deny an application  pursuant  to
    27  this  article shall be performed in a manner consistent with subdivision
    28  sixteen of section two hundred ninety-six of the executive law and arti-
    29  cle twenty-three-A of the correction law. When the commission denies  an
    30  application,  the  operator shall be afforded notice and the right to be
    31  heard and offer proof in opposition to such determination in  accordance
    32  with the regulations of the commission.
    33    4. (a) As a condition of registration in New York state, each operator
    34  shall implement the following measures:
    35    (i) limit each authorized sports bettor to one active and continuously
    36  used  account on their platform, and prevent anyone they know, or should
    37  have known to be a prohibited sports bettor from maintaining accounts or
    38  participating in any sports wagering offered by such operator;
    39    (ii) adopt appropriate safeguards to ensure, to a reasonable degree of
    40  certainty, that authorized sports bettors are physically located  within
    41  the state when engaging in mobile sports betting;
    42    (iii) prohibit minors from participating in any sports wagering, which
    43  includes:
    44    (1)  if  an operator becomes or is made aware that a minor has created
    45  an account, or accessed the account  of  another,  such  operator  shall
    46  promptly,  within  no  more  than  two business days, refund any deposit
    47  received from the minor, whether or not the  minor  has  engaged  in  or
    48  attempted  to  engage  in  sports  wagering; provided, however, that any
    49  refund may be offset by any prizes already awarded;
    50    (2) each operator shall provide parental control procedures  to  allow
    51  parents  or guardians to exclude minors from access to any sports wager-
    52  ing or platform. Such procedures shall include  a  toll-free  number  to
    53  call for help in establishing such parental controls; and
    54    (3)  each  operator  shall  take  appropriate steps to confirm that an
    55  individual opening an account is not a minor;

        A. 6113--C                         16

     1    (iv) when referencing the chances or likelihood of winning  in  adver-
     2  tisements  or upon placement of a sports wager, make clear and conspicu-
     3  ous statements that are not  inaccurate  or  misleading  concerning  the
     4  chances of winning and the number of winners;
     5    (v) enable authorized sports bettors to exclude themselves from sports
     6  wagering and take reasonable steps to prevent such bettors from engaging
     7  in sports wagering from which they have excluded themselves;
     8    (vi)  permit  any  authorized  sports  bettor  to permanently close an
     9  account registered to such bettor, on any and all platforms supported by
    10  such operator, at any time and for any reason;
    11    (vii) offer introductory procedures  for  authorized  sports  bettors,
    12  that  shall  be  prominently displayed on the main page of such operator
    13  platform, that explain sports wagering;
    14    (viii) implement measures to protect the privacy and  online  security
    15  of authorized sports bettors and their accounts;
    16    (ix)  offer all authorized sports bettors access to his or her account
    17  history and account details;
    18    (x) ensure authorized sports bettors' funds are protected upon deposit
    19  and segregated from the operating funds of such operator  and  otherwise
    20  protected  from  corporate  insolvency,  financial  risk, or criminal or
    21  civil actions against such operator;
    22    (xi) list on each website, in a prominent place, information  concern-
    23  ing  assistance for compulsive play in New York state, including a toll-
    24  free number directing callers to reputable resources containing  further
    25  information, which shall be free of charge;
    26    (xii)  ensure no sports wagering shall be based on a prohibited sports
    27  event;
    28    (xiii) permit  account  holders  to  establish  self-exclusion  gaming
    29  limits  on  a  daily,  weekly, and monthly basis that enable the account
    30  holder to identify the maximum amount of money  an  account  holder  may
    31  deposit during such period of time;
    32    (xiv)  when  an account holder's lifetime deposits exceed two thousand
    33  five hundred dollars, the operator shall prevent any wagering until  the
    34  patron  immediately acknowledges, and acknowledges each year thereafter,
    35  that the account holder has met the deposit threshold and may  elect  to
    36  establish  responsible  gaming  limits  or  close  the  account, and the
    37  account holder has received disclosures  from  the  operator  concerning
    38  problem gambling resources;
    39    (xv) maintain a publicly accessible internet page dedicated to respon-
    40  sible play, a link to which must appear on the operator's website and in
    41  any  mobile  application  or  electronic  platform on which a bettor may
    42  place wagers. The responsible play page shall include:  a  statement  of
    43  the  operator's policy and commitment to responsible gaming; information
    44  regarding, or links to information regarding, the risks associated  with
    45  gambling  and the potential signs of problem gaming; the availability of
    46  self-imposed responsible gaining limits; a   link to  a  problem  gaming
    47  webpage  maintained  by  the  office  of  alcohol  and   substance abuse
    48  services; and such other information or statements as the commission may
    49  require by rule; and
    50    (xvi) submit annually a problem gaming plan  to  the  commission  that
    51  includes:  the  objectives  of and timetables for implementing the plan;
    52  identification of the persons responsible for implementing and maintain-
    53  ing the plan; procedures for identifying users with suspected  or  known
    54  problem  gaming  behavior; procedures for providing information to users
    55  concerning problem gaming identification and  resources;  procedures  to

        A. 6113--C                         17
 
     1  prevent gaming by minors and self-excluded persons; and such other prob-
     2  lem gaming information as the commission may require by rule.
     3    (b)  Operators  shall  not directly or indirectly operate, promote, or
     4  advertise any platform or sports wagering to persons located in New York
     5  state unless registered pursuant to this article.
     6    (c) Operators shall not offer any sports wagering based on any prohib-
     7  ited sports event.
     8    (d) Operators shall not permit sports wagering by anyone they know, or
     9  should have known, to be a prohibited sports bettor.
    10    (e) Advertisements for contests and  prizes  offered  by  an  operator
    11  shall  not  target  prohibited  sports bettors, minors, or self-excluded
    12  persons.
    13    (f) Operators shall prohibit the use of third-party scripts or script-
    14  ing programs for any exchange wagering contest and ensure that  measures
    15  are  in  place  to deter, detect and, to the extent reasonably possible,
    16  prevent cheating, including collusion, and the use of cheating  devices,
    17  including  use of software programs that submit exchange wagering sports
    18  wagers unless otherwise approved by the commission.
    19    (g) Operators shall develop and prominently display procedures on  the
    20  main  page  of such operator's platform for the filing of a complaint by
    21  an authorized sports bettor against such operator. An  initial  response
    22  shall  be  given  by  such  operator to such bettor filing the complaint
    23  within forty-eight hours. A complete response shall  be  given  by  such
    24  operator  to  such bettor filing the complaint within ten business days.
    25  An authorized sports bettor may file a complaint alleging a violation of
    26  the provisions of this article with the commission.
    27    (h) Operators shall maintain records  of  all  accounts  belonging  to
    28  authorized sports bettors and retain such records of all transactions in
    29  such accounts for the preceding five years.
    30    (i)  The  server  or  other  equipment which is used by an operator to
    31  accept mobile sports wagering shall be located in  the  licensed  gaming
    32  facility in accordance with regulations promulgated by the commission.
    33    (j) All mobile sports wagering initiated in this state shall be deemed
    34  to  take place at the licensed gaming facility where the server or other
    35  equipment used by an  operator  to  accept  mobile  sports  wagering  is
    36  located,  regardless of the authorized sports bettor's physical location
    37  within this state.
    38    (k) All mobile sports wagering shall be conducted in  compliance  with
    39  this section and section thirteen hundred sixty-seven of this title.
    40    (l)  Permit  an  Indian Tribe pursuant to paragraph (a) of subdivision
    41  three-a of this section to place at the  licensed  gaming  facility  the
    42  server  or  other  equipment by which the Indian Tribe may accept mobile
    43  sports wagering, and to make commercially reasonable  accommodations  as
    44  may be necessary to place and operate the Indian Tribe's server or other
    45  equipment.
    46    5.  (a)  Subject to regulations promulgated by the commission, casinos
    47  may enter into agreements with operators  or  affiliates  to  allow  for
    48  authorized  bettors  to  sign  up  to create and fund accounts on mobile
    49  sports wagering platforms offered by the casino.
    50    (b) Authorized sports bettors may sign up to create their account on a
    51  mobile sports wagering platform in person at a casino, or an  affiliate,
    52  or through an operators internet website accessed via a mobile device or
    53  computer, or mobile device applications.
    54    (c)  Authorized sports bettors may deposit and withdraw funds in their
    55  account on a mobile sports wagering platform in person at a  casino,  or

        A. 6113--C                         18
 
     1  an  affiliate,  electronically  recognized  payment  methods, or via 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  provided, however, that the commission shall not approve any such agree-
    14  ment between a casino and a racetrack licensed pursuant to this  chapter
    15  or  an operator of video lottery gaming at Aqueduct licensed pursuant to
    16  section one thousand six hundred  seventeen-a  of  the  tax  law,  until
    17  twelve  months after the effective date of this paragraph; and provided,
    18  further, that the  commission  shall  not  approve  any  such  agreement
    19  between a casino and a professional sports stadium or arena, until twen-
    20  ty months after the effective date of this paragraph.
    21    6.  The  commission  shall  annually cause a report to be prepared and
    22  distributed to the governor and the legislature on the impact of  mobile
    23  sports  wagering  on  problem  gamblers  in  New  York. The report shall
    24  include an assessment of problem gaming among persons under the  age  of
    25  thirty.  The report shall be prepared by a non-governmental organization
    26  or entity with expertise in serving the needs of persons  with  gambling
    27  addictions.  The  report  shall  be  prepared  and distributed under the
    28  supervision of and in coordination with the commission. The costs  asso-
    29  ciated  with  the  preparation  and  distribution of the report shall be
    30  borne by operators and the commission shall be authorized  to  assess  a
    31  fee  against  operators  for  these  purposes. The commission shall also
    32  report periodically to the governor and the legislature  on  the  effec-
    33  tiveness of the statutory and regulatory controls in place to ensure the
    34  integrity of mobile sports wagering operations.
    35    §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
    36  is amended by adding a new subdivision 24 to read as follows:
    37    24. To regulate sports wagering in New York state.
    38    § 4. Severability clause. If any provision of this act or  application
    39  thereof  shall  for  any  reason  be  adjudged by any court of competent
    40  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
    41  invalidate the remainder of the act, but shall be confined in its opera-
    42  tion  to  the  provision thereof directly involved in the controversy in
    43  which the judgment shall have been rendered.
    44    § 5. This act shall take effect immediately.
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