Bill Text: CA SB1390 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Gambling: sports wagering.

Spectrum: Bipartisan Bill

Status: (Engrossed - Dead) 2012-08-16 - Set, second hearing. Held in committee and under submission. [SB1390 Detail]

Download: California-2011-SB1390-Amended.html

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BILL NUMBER: SB 1390	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 9, 2012
	AMENDED IN SENATE  MARCH 28, 2012

INTRODUCED BY   Senator Wright

                        FEBRUARY 24, 2012

   An act to add Chapter 4.7 (commencing with Section 19750) to
Division 8 of the Business and Professions Code, and to amend
Sections 336.9 and 337a of the Penal Code, relating to sports
wagering.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1390, as amended, Wright. Sports wagering.
   The California Constitution prohibits various gaming activities
within the state, including casino-style gaming, but authorizes the
Governor, subject to ratification by the Legislature, to negotiate
and conclude compacts for the operation of slot machines and the
conduct of lottery games and banking and percentage card games by
federally recognized Indian tribes on Indian lands in California in
accordance with federal law. The California Constitution also
authorizes the Legislature to provide for the regulation of horse
racing, charitable bingo games, the California State Lottery, and
charitable raffles.
   Existing law prohibits a person, whether or not for gain, hire, or
reward, from making a betting pool or placing a bet or wager on the
result of any contest or event, including a sporting event, as
specified.
   The Gambling Control Act provides for the licensure of certain
individuals and establishments that conduct controlled games, as
defined, and for the regulation of these gambling activities by the
California Gambling Control Commission. Existing law provides for the
enforcement of those regulations by the Department of Justice. Any
violation of these provisions is punishable as a misdemeanor, as
specified.
   The Horse Racing Law provides for the licensure of every person
who participates in, or has anything to do with, the racing of
horses, and every employee of a parimutuel department by the
California Horse Racing Board. The board is responsible for adopting
rules and regulations for the protection of the public, the control
of horse racing, and parimutuel wagering, as well as enforcing all
laws, rules, and regulations dealing with horse racing and parimutuel
wagering. The law permits the board to authorize an association
licensed to conduct a racing meeting to also operate a satellite
wagering facility at its racetrack inclosure, and for fairs to locate
a satellite wagering facility at their fairgrounds, under specified
conditions. Any violation of these provisions is punishable as a
misdemeanor.
   This bill would authorize the owner or operator of a gambling
establishment, horse racing track, or satellite wagering facility,
with a current license, to conduct wagering on professional and
collegiate sports or athletic events by applying to the 
Department of Justice   California Gambling Control
Commission  or the California Horse Racing Board, as specified,
for authorization to conduct sports wagering. The bill would require
the  department   commission  and the board
to adopt regulations to implement these provisions. The bill would
require the department to  make investigations related to
  , among other things, investigate any request made by
the board or the commission in connection with an application for
 authorization  of applicants   ,  and
 to investigate  alleged violations of  these
  the above  provisions. Any violation of 
the   these  provisions would be punishable as a
crime. By creating a new crime, the bill would impose a
state-mandated local program.
   Existing federal law, the Indian Gaming Regulatory Act, provides
for the negotiation and execution of tribal-state gaming compacts for
the purpose of authorizing certain types of gaming on Indian lands
within a state. The California Constitution authorizes the Governor
to negotiate and conclude compacts, subject to ratification by the
Legislature. Existing law expressly ratifies a number of tribal-state
gaming compacts, and amendments of tribal-state gaming compacts,
between the State of California and specified Indian tribes.
   This bill would provide that a federally recognized Indian tribe
may conduct sports wagering on Indian lands consistent with the
requirements of the federal Indian Gaming Regulatory Act, and under
terms no more stringent than those applicable to any other owner or
operator in the state.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 4.7 (commencing with Section 19750) is added to
Division 8 of the Business and Professions Code, to read:
      CHAPTER 4.7.  SPORTS WAGERING


   19750.  The following entities may conduct wagering on
professional and collegiate sports or athletic events as authorized
pursuant to this chapter:
   (a) The owner or operator of a gambling establishment with a
current license issued  by the California Gambling Control
Commission  pursuant to Chapter 5 (commencing with Section
19800).
   (b) The owner or operator of a horse racing track or satellite
wagering facility with a current license issued by the California
Horse Racing Board pursuant to Chapter 4 (commencing with Section
19400).
   19751.  A federally recognized Indian tribe may conduct sports
wagering on Indian lands consistent with the requirements of the
Indian Gaming Regulatory Act of 1988 (18 U.S.C. Secs. 1166 to 1168,
incl., and 25 U.S.C. Sec. 2701 et seq.), and under terms no more
stringent than those applicable to any other owner or operator in the
state.
   19752.  As used in this chapter, the following definitions shall
apply:
   (a) "Board" means the California Horse Racing Board.
   (b) "Commission" means the California Gambling Control Commission.

   (c) "Department" means the Department of Justice.
   (d) "Licensed operator" means any of the entities listed in
Section 19750 that is authorized pursuant to this chapter to conduct
sports wagering.
   (e) "Sports event" shall include any professional sports or
athletic event, and any collegiate sports or athletic event.
   (f) "Sports wagering" means the business of accepting wagers on a
sports event by any legal system or method of wagering, including,
but not limited to, exchange wagering, parlays, over and under, money
line, and straight bets.
   19754.  (a) (1) An owner or operator of a gambling establishment
seeking to conduct sports wagering shall apply to the 
department   commission  for authorization to
conduct sports wagering.
   (2) An owner or operator of a horse racing track or satellite
wagering facility seeking to conduct sports wagering shall apply to
the board for authorization to conduct sports wagering.
   (b) The board or the  department   commission
 , as the case may be, shall hear and decide promptly, and in
reasonable order, all applications to conduct sports wagering from
owners and operators of licensed gambling establishments, licensed
horse racing tracks, and satellite wagering facilities. Authorization
to conduct sports wagering shall not be unreasonably withheld for
any applicant that is in good standing and has a current license
issued pursuant to Chapter 4 (commencing with Section 19400) or
Chapter 5 (commencing with Section 19800).
   19756.  (a) Application for authorization to conduct sports
wagering shall be made on forms furnished by the board and the
 department   commission  .
   (b) The application for authorization to conduct sports wagering
shall include all of the following:
   (1) The name of the licensee.
   (2) The name and location of the gambling establishment, horse
racing track, or satellite wagering facility.
   (3) The names of all persons directly or indirectly interested in
the business and the nature of the interest.
   (4) A description of the proposed sports wagering operation.
   (5) Any other information and details the board or the 
department   commission  may require in order to
discharge its duty properly.
   19758.  (a) The board and the  department  
commission  shall adopt regulations for the administration and
enforcement of this chapter.
   (b) The board and the  department  
commission  shall consult with each other, and the 
commission   department  , in the adoption of
regulations pursuant to this section, and may adopt joint
regulations.
   19760.  The regulations adopted by the board and the 
department   commission  shall do all of the
following:
   (a) Provide for the approval of wagering rules and equipment by
the department to ensure fairness to the public and compliance with
state law, including, but not limited to, all of the following:
   (1) Acceptance of wagers on a series of sports events.
   (2) Types of wagering tickets that may be used.
   (3) The method of issuing tickets.
   (b) Govern all of the following:
   (1) The extension of credit.
   (2) The cashing, deposit, and redemption of checks or other
negotiable instruments.
   (3) The amount of cash reserves to be maintained by licensed
operators to cover winning wagers.
   (4) The provision of reliable records, accounts, and reports of
transactions, operations, and events, including reports to the
department, the method of accounting to be used by licensed
operators, and the types of records required to be maintained.
   19762.  (a) The sports wagering authorized pursuant to this
chapter may be conducted only at the gambling establishment,
horseracing track, or satellite facility of the licensed operator, or
on Indian lands consistent with the federal Indian Gaming Regulatory
Act of 1988 (18 U.S.C. Secs. 1166 to 1168, incl., and 25 U.S.C. Sec.
2701 et seq.).
   (b) The licensed operators of horse racing tracks, satellite
wagering facilities, and gambling establishments may enter into an
agreement to jointly conduct a sports wagering operation. Any joint
sports wagering operation authorized pursuant to this subdivision
shall be conducted only at a horse racing track.
   19764.  A licensed operator shall not accept a wager on a sports
event from any person who is not physically present at the facility
where the sports wagering is conducted.
   19766.  A licensed operator shall establish the odds it will pay
on wagers placed on sports events.
   19768.  (a) A licensed operator shall not conduct any sports
wagering in violation of any provision of this chapter, any
regulation adopted pursuant to this chapter, or any governing local
ordinance.
   (b) Any person who willfully violates any provision of this
chapter is guilty of a misdemeanor.
   19770.  (a) The department shall have all of the following
responsibilities:
   (1) To investigate any request  to   made by
 the board or the  department for  
commission in connection with  an  application for 
authorization pursuant to this chapter. The department may recommend
the denial or the limitation, conditioning, or restriction of any
authorization.
   (2) To monitor the conduct of all licensed operators and other
persons having a material involvement, directly or indirectly, with a
sports wagering operation.
   (3) To investigate suspected violations of this chapter.
   (4) To investigate complaints that are lodged against licensed
operators, or other persons associated with a sports wagering
operation, by members of the public.
   (5) To initiate, where appropriate, disciplinary actions. In
connection with any disciplinary action, the department may seek
restriction, limitation, suspension, or revocation of any license,
permit, authorization, or approval pursuant to this chapter, Chapter
4 (commencing with Section 19400), or Chapter 5 (commencing with
Section 19800), or the imposition of any fine upon any person
licensed, permitted, authorized, or approved pursuant to those
chapters.
   (6) To adopt regulations reasonably related to its functions and
duties as specified in this chapter.
   (b) The department has all powers necessary and proper to enable
it to carry out fully and effectually its duties and responsibilities
specified in this chapter.
   19772.  (a) The department shall make appropriate investigations
as follows:
   (1) To determine whether there has been any violation of this
chapter or any regulations adopted under this chapter.
   (2) To determine any facts, conditions, practices, or matters that
it may deem necessary or proper to aid in the enforcement of this
chapter or any regulation adopted under this chapter.
   (3) To aid in adopting regulations.
   (b) If, after any investigation, the department is satisfied that
a license, permit, authorization, or approval pursuant to this
chapter, Chapter 4 (commencing with Section 19400), or Chapter 5
(commencing with Section 19800) should be suspended or revoked, it
shall file an accusation in accordance with Chapter 5 (commencing
with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
   (c) In addition to any action that the board or 
department   commission  may take against a
license, permit, finding of suitability, or approval, the board or
 department   commission  may also require
the payment of fines or penalties. However, no fine imposed shall
exceed twenty thousand dollars ($20,000) for each separate violation
of any provision of this chapter or any regulation adopted under this
chapter.
  SEC. 2.  Section 336.9 of the Penal Code is amended to read:
   336.9.  (a) Notwithstanding Section 337a, and except as provided
in subdivision (b), any person who, not for gain, hire, or reward
other than that at stake under conditions available to every
participant, knowingly participates in any of the ways specified in
paragraph (2), (3), (4), (5), or (6) of subdivision (a) of Section
337a in any bet, bets, wager, wagers, or betting pool or pools made
between the person and any other person or group of persons who are
not acting for gain, hire, or reward, other than that at stake under
conditions available to every participant, upon the result of any
lawful trial, or purported trial, or contest, or purported contest,
of skill, speed, or power of endurance of person or animal, or
between persons, animals, or mechanical apparatus, is guilty of an
infraction, punishable by a fine not to exceed two hundred fifty
dollars ($250).
   (b) Subdivision (a) does not apply to any of the following
situations:
   (1) Any bet, bets, wager, wagers, or betting pool or pools made
online.
   (2) Betting pools with more than two thousand five hundred dollars
($2,500) at stake.
   (3) Any sports wagering authorized pursuant to Chapter 4.7
(commencing with Section 19750) of Division 8 of the Business and
Professions Code.
  SEC. 3.  Section 337a of the Penal Code is amended to read:
   337a.  (a) Except as provided in Section 336.9 and as authorized
pursuant to Chapter 4.7 (commencing with Section 19750) of Division 8
of the Business and Professions Code, every person who engages in
one of the following offenses, shall be punished for a first offense
by imprisonment in a county jail for a period of not more than one
year or in the state prison, or by a fine not to exceed five thousand
dollars ($5,000), or by both imprisonment and fine:
   (1) Pool selling or bookmaking, with or without writing, at any
time or place.
   (2) Whether for gain, hire, reward, or gratuitously, or otherwise,
keeps or occupies, for any period of time whatsoever, any room,
shed, tenement, tent, booth, building, float, vessel, place, stand
 ,  or enclosure, of any kind, or any part thereof, with a
book or books, paper or papers, apparatus, device  ,  or
paraphernalia, for the purpose of recording or registering any bet or
bets, any purported bet or bets, wager or wagers, any purported
wager or wagers, selling pools, or purported pools, upon the result,
or purported result, of any trial, purported trial, contest, or
purported contest, of skill, speed  ,  or power of endurance
of person or animal, or between persons, animals, or mechanical
apparatus, or upon the result, or purported result, of any lot,
chance, casualty, unknown  ,  or contingent event
whatsoever.
   (3) Whether for gain, hire, reward, or gratuitously, or otherwise,
receives, holds, or forwards, or purports or pretends to receive,
hold, or forward, in any manner whatsoever, any money, thing  ,
 or consideration of value, or the equivalent or memorandum
thereof, staked, pledged, bet  ,  or wagered, or to be
staked, pledged, bet  ,  or wagered, or offered for the
purpose of being staked, pledged, bet  ,  or wagered, upon
the result, or purported result, of any trial, or purported trial, or
contest, or purported contest, of skill, speed  ,  or power
of endurance of person or animal, or between persons, animals, or
mechanical apparatus, or upon the result, or purported result, of any
lot, chance, casualty, unknown  ,  or contingent event
whatsoever.
   (4) Whether for gain, hire, reward, or gratuitously, or otherwise,
at any time or place, records, or registers any bet or bets, wager
or wagers, upon the result, or purported result, of any trial, or
purported trial, or contest, or purported contest, of skill, speed
 ,  or power of endurance of person or animal, or between
persons, animals, or mechanical apparatus, or upon the result, or
purported result, of any lot, chance, casualty, unknown  , 
or contingent event whatsoever.
   (5) Being the owner, lessee  ,  or occupant of any room,
shed, tenement, tent, booth, building, float, vessel, place, stand,
enclosure  ,  or grounds, or any part thereof, whether for
gain, hire, reward, or gratuitously, or otherwise, permits that space
to be used or occupied for any purpose, or in any manner prohibited
by paragraph (1), (2), (3), or (4).
   (6) Lays, makes, offers  ,  or accepts any bet or bets,
or wager or wagers, upon the result, or purported result, of any
trial, or purported trial, or contest, or purported contest, of
skill, speed  ,  or power of endurance of person or animal,
or between persons, animals, or mechanical apparatus.
   (b) In any accusatory pleading charging a violation of this
section, if the defendant has been once previously convicted of a
violation of any subdivision of this section, the previous conviction
shall be charged in the accusatory pleading, and, if the previous
conviction is found to be true by the jury, upon a jury trial, or by
the court, upon a court trial, or is admitted by the defendant, the
defendant shall, if he or she is not imprisoned in the state prison,
be imprisoned in the county jail for a period of not more than one
year and pay a fine of not less than one thousand dollars ($1,000)
and not to exceed ten thousand dollars ($10,000). Nothing in this
paragraph shall prohibit a court from placing a person subject to
this subdivision on probation. However, that person shall be required
to pay a fine of not less than one thousand dollars ($1,000) nor
more than ten thousand dollars ($10,000) or be imprisoned in the
county jail for a period of not more than one year, as a condition
thereof. In no event does the court have the power to absolve a
person convicted pursuant to this subdivision from either being
imprisoned or from paying a fine of not less than one thousand
dollars ($1,000) and not more than ten thousand dollars ($10,000).
   (c) In any accusatory pleading charging a violation of this
section, if the defendant has been previously convicted two or more
times of a violation of any subdivision of this section, each
previous conviction shall be charged in the accusatory pleadings. If
two or more of the previous convictions are found to be true by the
jury, upon a jury trial, or by the court, upon a court trial, or are
admitted by the defendant, the defendant shall, if he or she is not
imprisoned in the state prison, be imprisoned in the county jail for
a period of not more than one year or pay a fine of not less than one
thousand dollars ($1,000) nor more than fifteen thousand dollars
($15,000), or be punished by both imprisonment and fine. Nothing in
this paragraph shall prohibit a court from placing a person subject
to this subdivision on probation. However, that person shall be
required to pay a fine of not less than one thousand dollars ($1,000)
nor more than fifteen thousand dollars ($15,000), or be imprisoned
in the county jail for a period of not more than one year as a
condition thereof. In no event does the court have the power to
absolve a person convicted and subject to this subdivision from
either being imprisoned or from paying a fine of not more than
fifteen thousand dollars ($15,000).
   (d) Except where the existence of a previous conviction of any
subdivision of this section was not admitted or not found to be true
pursuant to this section, or the court finds that a prior conviction
was invalid, the court shall not strike or dismiss any prior
convictions alleged in the information or indictment.
   (e) This section applies not only to persons who commit any of the
acts designated in paragraphs (1) to (6), inclusive, of subdivision
(a), as a business or occupation, but also applies to every person
who in a single instance engages in any one of the acts specified in
paragraphs (1) to (6), inclusive, of subdivision (a).
  SEC. 4.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.