Bill Text: FL H0077 | 2011 | Regular Session | Introduced

---

Bill Title: Internet Poker

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2011-05-07 - Indefinitely postponed and withdrawn from consideration [H0077 Detail]

Download: Florida-2011-H0077-Introduced.html

---

HB 77

1	A bill to be entitled
2	An act relating to Internet poker; creating the "Internet
3	Poker Consumer Protection and Revenue Generation Act of
4	2011"; providing for intrastate Internet poker to be
5	provided to the public by cardroom operators through a
6	state Internet poker network operated by licensed Internet
7	poker hub operators; creating s. 849.087, F.S.; providing
8	legislative intent; providing definitions; authorizing
9	participation in and operation of intrastate Internet
10	poker; providing for the Division of Pari-mutuel Wagering
11	of the Department of Business and Professional Regulation
12	to administer the act and regulate the operation of a
13	state Internet poker network, Internet poker hub
14	operators, cardroom affiliates, and the playing of
15	intrastate Internet poker; authorizing the division to
16	adopt rules, conduct investigations and monitor
17	operations, review books and accounts and records, suspend
18	or revoke any license or permit for a violation, take
19	testimony, issue summons and subpoenas, monitor and ensure
20	the proper collection of taxes and fees, and monitor and
21	ensure that the playing of Internet poker is conducted
22	fairly and that player information is protected by
23	Internet poker hub operators; requiring Internet poker hub
24	operators to be licensed; providing qualifications and
25	conditions for licensure; providing application
26	requirements; providing for an advance payment to be
27	credited toward taxes; providing initial and renewal
28	license fees; providing for selection of Internet poker
29	hub operators through competitive procurement process;
30	requiring payment of certain cost and refund of amount
31	collected in excess of the cost; requiring a surety bond;
32	providing for a contract between the state and the poker
33	hub operator; requiring the division to annually determine
34	need for additional operators; providing for a cardroom
35	affiliate license to be issued to a cardroom operator to
36	provide intrastate Internet poker for play; providing for
37	applications for the affiliate license and renewal
38	thereof; providing conditions for licensure and renewal of
39	licensure as an affiliate; requiring reporting to and
40	approval by the division of a change of ownership of the
41	affiliate licensee; prohibiting certain acts by an
42	affiliate; providing a fee; providing for employee and
43	business occupational licenses; requiring certain
44	employees of and certain companies doing business with a
45	cardroom affiliate or an Internet poker hub operator to
46	hold an appropriate occupational license; prohibiting such
47	operator or affiliate from employing or allowing to be
48	employed such a person or doing business with such a
49	company if that person or company does not hold an
50	occupational license; directing the division to adopt
51	rules regarding Internet poker hub operator, cardroom
52	affiliate, and occupational licenses and renewal of such
53	licenses; providing a fee for occupational license and
54	renewal thereof; providing penalties for failure to pay
55	the fee; exempting from licensure a person holding a valid
56	individual cardroom occupational license; providing
57	grounds for the division to deny an application for or
58	revoke, suspend, or place conditions or restrictions on or
59	refuse to renew such occupational license; requiring
60	fingerprints; providing procedures for processing
61	fingerprints and conducting a criminal history records
62	check and for payment of costs; providing for citations
63	and civil penalties; providing requirements to register
64	and play intrastate Internet poker; providing for an
65	Internet Poker Self-Exclusion Form; requiring the Internet
66	poker hub operator to exclude from play any person who has
67	completed such form; providing for maintenance of the form
68	and distribution to cardroom affiliates and the division;
69	requiring the Internet poker hub operator to display a
70	link to the website offering services related to the
71	prevention of compulsive and addictive gambling; limiting
72	liability; providing requirements for approval of games to
73	be offered to players; providing requirements for all
74	offered games and game results and games not completed;
75	providing requirements to minimize fraud and cheating;
76	prohibiting action for damages against the Internet poker
77	hub operator to prevent fraud or cheating under certain
78	circumstances; providing requirements for player
79	eligibility and registration and player accounts;
80	authorizing the Internet poker hub operator to suspend or
81	revoke player accounts; providing requirements for poker
82	hub operations; requiring the Internet poker hub operator
83	to establish a book of accounts, regularly audit financial
84	records, and make the records available to the division;
85	providing technical system requirements; requiring the
86	Internet poker hub operator to define, document, and
87	implement certain methodologies relating to its systems;
88	requiring the Internet poker hub operator to maintain such
89	documentation for a certain period of time; providing for
90	player participation fees; prohibiting certain
91	relationships and acts by employees of the division and
92	occupational license holders and certain relatives;
93	authorizing conduct of proposed and authorized games;
94	prohibiting a person who has not attained a certain age
95	from holding an Internet poker occupational license or
96	engaging in any game conducted; prohibiting offering
97	Internet poker to persons located in the state except in
98	compliance with law; providing that an entity that has
99	accepted any wager on any online gambling activity from a
100	Florida resident since a certain date is not eligible to
101	apply for licensure and participate in intrastate Internet
102	poker in Florida for a specified period of time;
103	prohibiting false statements; prohibiting manipulation of
104	Internet poker play and operations; providing civil and
105	criminal penalties; providing for disposition of fines
106	collected; providing for license fees to be paid by the
107	Internet poker hub operator and cardroom affiliates;
108	providing for disposition and accounting of fees
109	collected; providing for an advance payment by the
110	Internet poker hub operator to be credited toward taxes;
111	providing for the tax rate and procedures for payment;
112	requiring payments to be accompanied by a report showing
113	all intrastate Internet poker activities for the preceding
114	calendar month and containing such other information as
115	prescribed by the division; providing penalties for
116	failure to pay taxes and penalties; providing for use of
117	certain deposits; providing for distribution of moneys
118	received from Internet poker hub operations; providing
119	grounds for the division to deny a license or the renewal
120	thereof or suspend or revoke a license; providing
121	penalties; authorizing the division to adopt rules;
122	providing for administration of the act and regulation of
123	the intrastate Internet poker industry; providing an
124	effective date.
125
126	Be It Enacted by the Legislature of the State of Florida:
127
128	Section 1.  This act may be cited as the "Internet Poker
129	Consumer Protection and Revenue Generation Act of 2011."
130	Section 2.  Section 849.087, Florida Statutes, is created
131	to read:
132	849.087  Intrastate Internet poker authorized.-
133	(1)  LEGISLATIVE INTENT.-It is the intent of the
134	Legislature to create a framework for the state to regulate
135	intrastate Internet poker that can ensure consumer protections
136	and additional revenue to the state by authorizing,
137	implementing, and creating a licensing and regulatory structure
138	and system of intrastate Internet poker to:
139	(a)  Provide that intrastate Internet poker is only offered
140	for play in a manner that is lawful under the federal Unlawful
141	Internet Gaming Enforcement Act of 2006, which authorizes a
142	state to regulate and conduct intrastate Internet gambling, such
143	as poker.
144	(b)  Provide a new source of revenue that will generate
145	additional positive economic benefits to the state through the
146	authorization of lawful and regulated intrastate Internet poker
147	in Florida instead of flowing offshore to unregulated foreign
148	operators and markets.
149	(c)  Create a contractual relationship with one or more
150	Internet poker hub operators with the technical expertise to
151	ensure that wagering authorized by this section is only offered
152	to registered players who are at least 18 years of age and
153	physically present within the borders of this state at the time
154	of play.
155	(d)  Provide for a competitive procurement process to
156	select one or more Internet poker hub operators that are
157	qualified to be licensed by the state and meet all statutory,
158	regulatory, and contractual requirements of the state while
159	protecting registered poker players.
160	(e)  Provide for a licensed cardroom operator to become a
161	licensed provider of intrastate Internet poker through Internet
162	poker hub operators.
163	(f)  Ensure that the state is able to collect all taxes and
164	fees from the play of intrastate Internet poker.
165	(g)  Create a system to protect each registered poker
166	player's private information and prevent fraud and identity
167	theft and ensure that the player's financial transactions are
168	processed in a secure and transparent fashion.
169	(h)  Ensure that the regulatory agency has unlimited access
170	to the premises and records of the Internet poker hub operators
171	and cardroom affiliates to ensure strict compliance with its
172	regulations concerning credit authorization, account access, and
173	other security provisions.
174	(i)  Require the Internet poker hub operators to provide
175	accessible customer service to registered poker players.
176	(j)  Require the Internet poker hub operator's Internet
177	site to contain information relating to problem gambling,
178	including a telephone number that an individual may call to seek
179	information and assistance for a potential gambling addiction.
180	(2)  DEFINITIONS.-Unless otherwise clearly required by the
181	context, as used in this section:
182	(a)  "Authorized game" means a game or series of games of
183	poker which are played in a nonbanking manner on a state
184	Internet poker network.
185	(b)  "Cardroom affiliate" means a licensed cardroom
186	operator as defined in s. 849.086 who maintains an Internet site
187	as a portal into a state Internet poker network.
188	(c)  "Convicted" means having been found guilty, regardless
189	of adjudication, as a result of a jury verdict, nonjury trial,
190	or entry of a plea of guilty or nolo contendere.
191	(d)  "Department" means the Department of Business and
192	Professional Regulation.
193	(e)  "Division" means the Division of Pari-mutuel Wagering
194	of the department.
195	(f)  "Gross receipts" means the total amount of money
196	received by an Internet poker hub operator from registered
197	players for participation in authorized games.
198	(g)  "Internet poker hub operator" or "poker hub operator"
199	means a computer system operator that is licensed by the state
200	and contracts with the state to operate a state Internet poker
201	network.
202	(h)  "Intrastate Internet poker" means authorized games of
203	poker played over the Internet by registered players who are
204	physically present within the borders of this state at the time
205	of play.
206	(i)  "Liquidity" means the total number of registered
207	players available in a state Internet poker network.
208	(j)  "Nonbanking game" means an authorized game in which an
209	Internet poker hub operator or cardroom affiliate is not a
210	participant and has no financial stake in the outcome of the
211	authorized game.
212	(k)  "Player incentives" means any bonuses, rewards,
213	prizes, or other types of promotional items provided to a
214	registered player by an Internet poker hub operator or cardroom
215	affiliate as an incentive to begin or continue playing on a
216	state Internet poker network.
217	(l)  "Rake" means a set fee or percentage of the pot
218	assessed by an Internet poker hub operator for providing the
219	Internet poker services to registered players for the right to
220	participate in an authorized game conducted by the poker hub
221	operator.
222	(m)  "Registered player" means a person who is registered
223	with a poker hub operator under this section to participate in
224	an authorized game conducted on a state Internet poker network.
225	(n)  "State Internet poker network" means a computer system
226	operated by one or more Internet poker hub operators that
227	authorizes the playing of and wagering on intrastate Internet
228	poker by registered players through the website portals of
229	cardroom affiliates.
230	(o)  "Tournament fee" means a set fee assessed to
231	registered players by an Internet poker hub operator for
232	providing the Internet poker tournament services.
233	(3)  INTRASTATE INTERNET POKER AUTHORIZED.-
234	(a)  Under the Unlawful Internet Gaming Enforcement Act of
235	2006, a state is authorized to regulate and conduct intrastate
236	Internet poker as long as all players and the online wagering
237	activities are located within the state.
238	(b)  Notwithstanding any other provision of law, a person
239	in Florida may participate as a registered player in an
240	authorized game or tournament provided on a state Internet poker
241	network by a cardroom affiliate or may operate a state Internet
242	poker network as an Internet poker hub operator described in
243	this section if such game and poker operations are conducted
244	strictly in accordance with the provisions of this section and
245	federal law.
246	(4)  AUTHORITY OF DIVISION.-The division shall administer
247	this section and regulate the operation of a state Internet
248	poker network, the Internet poker hub operators, the cardroom
249	affiliates, and the play of intrastate Internet poker under this
250	section and the rules adopted pursuant to this section, and is
251	authorized to:
252	(a)  Adopt rules related to Internet poker, including, but
253	not limited to, rules governing the issuance of operator and
254	individual occupational licenses to Internet poker hub
255	operators, cardroom affiliates, and their employees; operation
256	of a state Internet poker network and technical system
257	requirements; security of the financial information of
258	registered players and registered player accounts; bonuses,
259	awards, promotions, and other incentives to registered players;
260	recordkeeping and reporting requirements; the distribution of
261	Internet poker income; and the imposition and collection of all
262	fees and taxes imposed by this section.
263	(b)  Conduct investigations and monitor operation of a
264	state Internet poker network and the playing of authorized games
265	on a network.
266	(c)  Review the books, accounts, and records of any current
267	or former Internet poker hub operator or cardroom affiliate.
268	(d)  Suspend or revoke any license or permit, after
269	hearing, for any violation of this section or the rules adopted
270	pursuant to this section.
271	(e)  Take testimony, issue summons and subpoenas for any
272	witness, and issue subpoenas duces tecum in connection with any
273	matter within its jurisdiction.
274	(f)  Monitor and ensure proper collection of taxes and fees
275	imposed by this section. The internal controls of Internet poker
276	hub operators shall ensure no compromise of revenue to the
277	state. The division shall monitor, audit, and verify the cash
278	flow and accounting of a state Internet poker network revenue
279	for any given operating day.
280	(g)  Monitor and ensure that the playing of Internet poker
281	is conducted fairly and that all personal and financial
282	information provided by registered players is protected by the
283	Internet poker hub operators.
284	(5)  INTERNET POKER HUB OPERATOR LICENSE REQUIRED;
285	APPLICATION; FEES.-A person may not operate as an Internet poker
286	hub operator in this state unless the person holds a valid
287	Internet poker hub operator license issued under this section.
288	(a)  Only a person holding a valid Internet poker license
289	issued by the division may provide intrastate Internet poker for
290	play to registered players.
291	(b)  An Internet poker hub operator must be an entity
292	authorized to conduct business in this state.
293	(c)  A person seeking a license or renewal of a license to
294	operate as an Internet poker hub operator shall make application
295	on forms prescribed by the division. Applications for Internet
296	poker hub operator licenses shall contain all of the information
297	the division, by rule, determines is required to ensure
298	eligibility under this section.
299	(d)  As a condition of licensure and to maintain continued
300	authority to conduct intrastate Internet poker, an Internet
301	poker hub operator licensee must provide the documentation
302	required under this section on a timely basis to the division
303	and the documentation must be appropriate, current, and
304	accurate. A change in ownership or interest of an Internet poker
305	hub operator licensee of 5 percent or more of the stock or other
306	evidence of ownership or equity in an Internet poker hub
307	operator licensee or any parent corporation or other business
308	entity that in any way owns or controls an Internet poker hub
309	operator licensee must be approved by the division before the
310	change, unless the owner is an existing holder of the license
311	who was previously approved by the division. A change in
312	ownership or interest of an Internet poker hub operator licensee
313	of less than 5 percent, unless the change results in a
314	cumulative total of 5 percent or more, must be reported to the
315	division within 20 days after the change. The division may then
316	conduct an investigation to ensure that the license is properly
317	updated to show the change in ownership or interest. Reporting
318	is not required under this paragraph if the person is holding 5
319	percent or less of the equity or securities of a corporate owner
320	of an Internet poker hub operator licensee that has its
321	securities registered pursuant to s. 12 of the Securities
322	Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if the
323	corporation or entity files with the United States Securities
324	and Exchange Commission the reports required by s. 13 of that
325	act or if the securities of the corporation or entity are
326	regularly traded on an established securities market in the
327	United States. A change in ownership or interest of less than 5
328	percent which results in a cumulative ownership or interest of 5
329	percent or more must be approved by the division before the
330	change, unless the owner is an existing holder of the license
331	who was previously approved by the division.
332	(e)1.  Upon the awarding of a contract to be an Internet
333	poker hub operator by the division under subsection (6), an
334	Internet poker hub operator licensee shall pay to the division a
335	nonrefundable payment of $10 million. This payment shall be
336	treated as an advance payment to the state by each Internet
337	poker hub operator and shall be credited against the tax on
338	monthly gross receipts derived from the play of intrastate
339	Internet poker under paragraph (25)(a) until the original amount
340	is recouped by each Internet poker hub operator.
341	2.  Upon the submission of the initial application for an
342	Internet poker hub operator license, and annually thereafter, on
343	the anniversary date of the issuance of the initial license, an
344	Internet poker hub operator licensee shall pay a nonrefundable
345	license fee of $500,000 for the succeeding 12 months of
346	licensure to fund the division's regulation and oversight of the
347	operation and play of intrastate Internet poker. All funds
348	received under this paragraph shall be deposited by the division
349	with the Chief Financial Officer to the credit of the Pari-
350	mutuel Wagering Trust Fund.
351	(6)  SELECTION OF AN INTERNET POKER HUB OPERATOR BY
352	COMPETITIVE PROCUREMENT PROCESS.-The division shall, subject to
353	a competitive procurement process, select no more than three
354	Internet poker hub operator applicants that meet the licensure
355	and technical requirements and expertise to provide services for
356	lawful intrastate Internet poker games in Florida. The
357	applicants must demonstrate the ability to ensure that
358	intrastate Internet poker is only offered to registered players
359	who are at least 18 years of age and who are physically present
360	within the borders of this state at the time of play.
361	(7)  QUALIFICATIONS FOR AN INTERNET POKER HUB OPERATOR.-For
362	the purposes of this section, the division shall consider all of
363	the following as minimum qualifications to determine whether an
364	Internet poker hub operator applicant or any subcontractor
365	included in the hub operator applicant's state application is
366	legally, technically, and financially qualified to become the
367	state's Internet poker hub operator:
368	(a)  The applicant or subcontractor is an entity authorized
369	to conduct business in this state.
370	(b)  The applicant or subcontractor has not accepted any
371	wager of money or other consideration on any online gambling
372	activity, including poker, from any Florida resident since
373	October 13, 2006. However, this paragraph does not disqualify an
374	applicant or subcontractor who accepts online pari-mutuel wagers
375	from any Florida resident through a legal online pari-mutuel
376	wagering entity authorized in another state.
377	(c)  The applicant's or subcontractor's executives and key
378	employees meet the requirements to obtain intrastate Internet
379	poker occupational licenses from the division, as set forth in
380	subsection (12).
381	(d)  The applicant or subcontractor has a contract or is
382	licensed to operate gaming or lottery activities in one or more
383	jurisdictions within the United States.
384	(e)  The applicant or subcontractor has existing and
385	established experience with Internet gaming, or is licensed to
386	conduct Internet gaming activities, in one or more jurisdictions
387	outside the United States where Internet gaming is legal and
388	regulated.
389	(f)  The applicant, the applicant's subcontractors, and all
390	entities with an ownership interest in the applicant or the
391	applicant's subcontractors have demonstrated compliance with all
392	federal and state laws in the jurisdictions in which they
393	provide services.
394	(g)  The applicant has provided all necessary documentation
395	and information relating to all proposed subcontractors of the
396	applicant.
397	(h)  The applicant has provided a description of how it
398	will facilitate compliance with all of the standards set forth
399	in this section, including, but not limited to, those for:
400	1.  Registered player processes and requirements relating
401	to intrastate play, age verification, and exclusion of problem
402	gamblers.
403	2.  Network system requirements, including, but not limited
404	to, connectivity, hardware, software, anti-fraud systems, virus
405	prevention, data protection, access controls, firewalls,
406	disaster recovery, and redundancy.
407	3.  Gaming systems, including, but not limited to, hardware
408	and software that ensures that: games are legal, games are
409	independent and fair, game and betting rules are available to
410	all registered players, and all data used for the conduct of
411	each game is randomly generated and unpredictable.
412	4.  Ongoing auditing by the division and accounting
413	systems, including, but not limited to, those for registered
414	player accounts, participation fees, distribution of funds to
415	registered players, and distribution of revenue to the state.
416	(i)  The applicant has provided all other documentation or
417	information that the division, by rule, has determined is
418	required to ensure that the applicant is legally, technically,
419	and financially qualified to enter into a contract to become the
420	state's Internet poker hub operator.
421	(8)  SUBMISSION OF THE APPLICATION FOR AN INTERNET POKER
422	HUB OPERATOR; FEES.-In addition to demonstrating that the
423	applicant is legally, technically, and financially qualified to
424	become an Internet poker hub operator in the state, the
425	applicant must describe how it will fulfill the contractual role
426	envisaged by this section. The applicant shall provide all of
427	the following:
428	(a)  All necessary documentation and information relating
429	to the applicant and its direct and indirect owners, including,
430	but not limited to:
431	1.  Documentation that the entity is authorized to conduct
432	business in this state and other founding documents.
433	2.  Current and historical audited financial and accounting
434	records.
435	3.  Any and all documents relating to legal and regulatory
436	proceedings in this state and other jurisdictions involving the
437	applicant.
438	4.  Any and all documents relating to the applicant's
439	business history, including all state and federal tax filings.
440	5.  Any and all documents relating to the nature and
441	sources of the applicant's financing.
442	6.  Any and all documentation that demonstrates that the
443	applicant is financially qualified to perform the obligations of
444	an Internet poker hub operator as described in this section.
445	7.  Any other documentation or information that the
446	division, by rule, determines is required to ensure eligibility.
447	(b)  All necessary documentation and information relating
448	to all proposed subcontractors of the Internet poker hub
449	operator applicant, including, but not limited to:
450	1.  A description of the services to be provided by each
451	subcontractor.
452	2.  Information for each subcontractor as set forth in this
453	section.
454	3.  Any other documentation or information that the
455	division, by rule, determines is required to ensure eligibility.
456	(c)  A description as to how the applicant will facilitate
457	compliance with all of the standards set forth in this section,
458	including, but not limited to, those for:
459	1.  Registered player requirements relating to:
460	a.  Intrastate play.
461	b.  Age verification.
462	c.  Exclusion of problem gamblers.
463	2.  Network system requirements, including, but not limited
464	to:
465	a.  Connectivity.
466	b.  Hardware.
467	c.  Software.
468	d.  Anti-fraud systems.
469	e.  Virus prevention.
470	f.  Data protection.
471	g.  Access controls.
472	h.  Firewalls.
473	i.  Disaster recovery.
474	j.  Redundancy.
475	3.  Gaming systems, including, but not limited to, hardware
476	and software that ensures that:
477	a.  Games are legal.
478	b.  Games are independent and fair.
479	c.  Game and betting rules are available to all registered
480	players.
481	d.  All data used for the conduct of each game is randomly
482	generated and unpredictable.
483	4.  Accounting systems, including, but not limited to,
484	those for:
485	a.  Registered player accounts.
486	b.  Participation fees.
487	c.  Transparency and reporting to the division.
488	d.  Distribution of revenue to the state, funds pursuant to
489	contract, and funds to registered players.
490	e.  Ongoing auditing.
491	(d)  A description of the games and services the applicant
492	proposes to offer to registered players.
493	(e)  A description by the applicant of how it will ensure
494	that registered players are at least 18 years of age or older
495	and facilitate registered player protections and resolution of
496	player disputes.
497	(f)  Upon submission of the initial application and
498	proposal, an initial filing fee of $25,000 to compensate the
499	division for reasonably anticipated costs to be incurred to
500	conduct a comprehensive investigation of the applicant to
501	determine if the applicant is legally, technically, and
502	financially qualified to become the state's Internet poker hub
503	operator and is suitable for licensure. The division shall, by
504	rule, require the applicant to make an additional payment if
505	necessary to complete the investigation; however, the total
506	amount collected under this paragraph may not exceed the actual
507	cost incurred to conduct the investigation. The division shall,
508	by rule, set a procedure for refunding any amount of the filing
509	fee and additional payment collected under this paragraph which
510	is not used to cover the cost of the investigation.
511	(9)  ANNUAL BOND REQUIRED.-The holder of a license to be an
512	Internet poker hub operator in the state shall be financially
513	and otherwise responsible for the operation of a state Internet
514	poker network and for the conduct of any employee involved in
515	the operation of the online poker network. Before the issuance
516	of an Internet poker hub operator license, each qualified
517	applicant for such a license must provide evidence of a surety
518	bond in the amount of $1 million, payable to the state, for each
519	year that the licensee is licensed to be an Internet poker hub
520	operator in the state. The bond shall be issued by a surety or
521	sureties authorized to do business in the state and approved by
522	the division and the Chief Financial Officer in his or her
523	capacity as treasurer of the division. The bond shall guarantee
524	that an Internet poker hub operator fulfills all financial
525	requirements of the contract. Such bond shall be kept in full
526	force and effect by an Internet poker hub operator during the
527	term of the license.
528	(10)  OBLIGATION OF AN INTERNET POKER HUB OPERATOR.-An
529	Internet poker hub operator shall comply with the terms of its
530	contract with the state and this section.
531	(a)  The accepted proposal agreed to by the division, on
532	behalf of the state, and an Internet poker hub operator
533	applicant shall govern the interpretation of the contract
534	creating a contractual relationship entered into between the
535	state and the Internet poker hub operator.
536	(b)  The contract between the state and an Internet poker
537	hub operator is for a 5-year period and may be renewed for a
538	period equal to the original contract, if agreed to by both
539	parties.
540	(c)  The contract between the state and an Internet poker
541	hub operator may be amended by mutual written agreement of the
542	division and the Internet poker hub operator.
543	(d)  If this section is amended, an Internet poker hub
544	operator may declare the contract null and void within 60 days
545	after the effective date of the amendment and must provide at
546	least 90 days' prior written notice to the division of such
547	intent; otherwise, the Internet poker hub operator agrees to be
548	bound by the amendments to this section adopted after the terms
549	of the contract are established.
550	(e)  In the event of commercial infeasibility due to a
551	change in federal law rendering the provision of intrastate
552	poker services illegal, an Internet poker hub operator may
553	abandon the contract after providing the division with at least
554	90 days' prior written notice of its intent to end the contract
555	and a statement explaining its interpretation that continuing to
556	provide services under the contract is commercially infeasible.
557	(f)  If a dispute arises between the parties to the
558	contract, either the division or the Internet poker hub operator
559	may go through an administrative law or circuit court for an
560	initial interpretation of the contract and the rights and
561	responsibilities in the contract.
562	(g)  After each year of operation of intrastate Internet
563	poker in the state, the division shall review and evaluate the
564	current level of liquidity in the state Internet poker network
565	to determine if there is a need to authorize additional Internet
566	poker hub operators. If the division finds there is sufficient
567	evidence to support authorizing additional Internet poker hub
568	operators, then the division may select additional Internet
569	poker hub operators pursuant to subsection (6) and may authorize
570	additional Internet poker hub operators based on the
571	qualifications specified in subsection (7). However,
572	notwithstanding the power to authorize additional Internet poker
573	hub operators under this paragraph, only three Internet poker
574	hub operators may operate at any one time in the state.
575	(11)  CARDROOM AFFILIATE LICENSE REQUIRED; APPLICATION;
576	FEES.-A cardroom affiliate license may only be issued to a
577	cardroom operator who is licensed under s. 849.086, actively
578	operates a cardroom with a minimum of 10 licensed tables, and
579	complies with all the requirements of s. 849.086 and the rules
580	adopted pursuant to that section.
581	(a)  Only those persons holding a valid cardroom affiliate
582	license issued by the division may provide intrastate Internet
583	poker for play to registered players through its website.
584	(b)  After the initial cardroom affiliate license is
585	granted, the annual application for the renewal of that license
586	shall be made in conjunction with the applicant's annual
587	application for its cardroom and pari-mutuel licenses under s.
588	849.086 and chapter 550, respectively.
589	(c)  A person seeking a license or renewal of a license to
590	operate as a cardroom affiliate shall make the application on
591	forms prescribed by the division. An application for a cardroom
592	affiliate license shall contain all of the information the
593	division, by rule, determines is required to ensure eligibility.
594	(d)  As a condition of licensure and to maintain continued
595	authority for the conduct of intrastate Internet poker, the
596	cardroom affiliate licensee must provide the documentation
597	required under this section on a timely basis to the division
598	and the documentation must be appropriate, current, and
599	accurate. A change in ownership or interest of a cardroom
600	affiliate licensee of 5 percent or more of the stock or other
601	evidence of ownership or equity in the cardroom affiliate
602	licensee or any parent corporation or other business entity that
603	in any way owns or controls the cardroom affiliate licensee must
604	be approved by the division prior to the change, unless the
605	owner is an existing holder of the license who was previously
606	approved by the division. A change in ownership or interest of a
607	cardroom affiliate licensee of less than 5 percent, unless the
608	change results in a cumulative total of 5 percent or more, must
609	be reported to the division within 20 days after the change. The
610	division may then conduct an investigation to ensure that the
611	license is properly updated to show the change in ownership or
612	interest. Reporting is not required under this paragraph if the
613	person is holding 5 percent or less of the equity or securities
614	of a corporate owner of the cardroom affiliate licensee that has
615	its securities registered pursuant to s. 12 of the Securities
616	Exchange Act of 1934, 15 U.S.C. ss. 78a-78kk, and if the
617	corporation or entity files with the United States Securities
618	and Exchange Commission the reports required by s. 13 of that
619	act or if the securities of the corporation or entity are
620	regularly traded on an established securities market in the
621	United States. A change in ownership or interest of less than 5
622	percent which results in a cumulative ownership or interest of 5
623	percent or more must be approved by the division before the
624	change, unless the owner is an existing holder of the license
625	who was previously approved by the division.
626	(e)  As a condition of eligibility for license renewal, a
627	cardroom affiliate must have an active and operating portal and
628	must have contributed at least 5 percent of the total revenue
629	generated from the play of intrastate Internet poker from the
630	previous state fiscal year, as determined by the division.
631	(f)  A cardroom affiliate licensee may not sell or lease
632	all or any portion of its cardroom licensed under s. 849.086 to
633	any person or entity, or contract with any person or entity to
634	operate its website, conduct marketing or promotional
635	activities, or conduct any other aspects of business associated
636	with the play of poker under s. 849.086 or intrastate Internet
637	poker under this section, that does not meet and comply with all
638	requirements and provisions of this section and s. 849.086.
639	(g)  The annual cardroom affiliate license fee shall be
640	$1,000. The annual license fee shall be deposited by the
641	division with the Chief Financial Officer to the credit of the
642	Pari-mutuel Wagering Trust Fund.
643	(h)  The division shall adopt rules regarding cardroom
644	affiliate licenses and renewals.
645	(12)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;
646	APPLICATION; FEES.-
647	(a)  A person employed by or otherwise working for an
648	Internet poker hub operator or a cardroom affiliate in any
649	capacity related to and while conducting intrastate Internet
650	poker operations must hold a valid occupational license issued
651	by the division.
652	(b)  An Internet poker hub operator or a cardroom affiliate
653	may not employ or allow to be employed any person in any
654	capacity related to the operation of intrastate Internet poker
655	unless the person holds a valid occupational license.
656	(c)  An Internet poker hub operator or cardroom affiliate
657	may not contract with, or otherwise do business with, a business
658	required to hold a valid intrastate Internet poker business
659	occupational license, unless the business holds such a valid
660	license.
661	(d)  A proprietorship, partnership, corporation,
662	subcontractor, or other entity must obtain a valid intrastate
663	Internet poker business occupational license issued by the
664	division to partner with, contract with, be associated with, or
665	participate in the conduct of intrastate Internet poker
666	operations with an Internet poker hub operator or a cardroom
667	affiliate.
668	(e)  The division shall establish, by rule, a schedule for
669	the annual renewal of Internet poker hub operator and cardroom
670	affiliate occupational licenses. Intrastate Internet poker
671	occupational licenses are not transferable.
672	(f)  A person seeking an intrastate Internet poker
673	occupational license, or renewal of such a license, shall make
674	the application on forms prescribed by the division and include
675	payment of the appropriate application fee. An application for
676	an intrastate Internet poker occupational license shall contain
677	all of the information the division, by rule, determines is
678	required to ensure eligibility under this section.
679	(g)  The division shall adopt rules regarding intrastate
680	Internet poker occupational licenses and renewals.
681	(h)  An intrastate Internet poker occupational license is
682	valid for the same term as a pari-mutuel occupational license
683	issued under s. 550.105(1).
684	(i)  Pursuant to rules adopted by the division, any person
685	may apply for and, if qualified, be issued an intrastate
686	Internet poker occupational license valid for a period of 3
687	years upon payment of the full occupational license fee for each
688	of the 3 years for which the license is issued. The intrastate
689	Internet poker occupational license is valid during its
690	specified term at any Internet poker hub operator or a cardroom
691	affiliate where intrastate Internet poker is authorized to be
692	conducted.
693	(j)  The intrastate Internet poker occupational license fee
694	for initial application and annual renewal shall be determined
695	by rule of the division but may not exceed $50 for an
696	occupational license for an employee of an Internet poker hub
697	operator or a cardroom affiliate licensee or $1,000 for a
698	business occupational license for nonemployees of the licensee
699	providing goods or services to an Internet poker hub operator or
700	a cardroom affiliate occupational licensee. Failure to pay the
701	required fee constitutes grounds for disciplinary action by the
702	division against an Internet poker hub operator or a cardroom
703	affiliate occupational licensee.
704	(k)  A person holding a valid individual cardroom
705	occupational license issued by the division under s. 849.086(6)
706	is not required to obtain an individual employee occupational
707	license under this subsection.
708	(13)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE DENIAL,
709	REVOCATION, SUSPENSION, LIMITATION, OR NONRENEWAL.-The division
710	may:
711	(a)  Deny an application for, or revoke, suspend, or place
712	conditions or restrictions on, a license of a person or entity
713	that has been refused a license by any other state gaming
714	commission, governmental department, agency, or other authority
715	exercising regulatory jurisdiction over the gaming of another
716	state or jurisdiction.
717	(b)  Deny an application for, or suspend or place
718	conditions or restrictions on, a license of any person or entity
719	that is under suspension or has unpaid fines in another state or
720	jurisdiction.
721	(c)  Deny, suspend, revoke, or refuse to renew any Internet
722	poker hub operator or cardroom affiliate occupational license if
723	the applicant for the license or the licensee has violated this
724	section or the rules of the division governing the conduct of
725	persons connected with the play of intrastate Internet poker.
726	(d)  Deny, suspend, revoke, or refuse to renew any Internet
727	poker hub operator or cardroom affiliate occupational license if
728	the applicant for the license or the licensee has been convicted
729	in this state, in any other state, or under the laws of the
730	United States of a capital felony, a felony, or an offense in
731	any other state that would be a felony under the laws of this
732	state involving arson; trafficking in, conspiracy to traffic in,
733	smuggling, importing, conspiracy to smuggle or import, or
734	delivery, sale, or distribution of a controlled substance;
735	racketeering; or a crime involving a lack of good moral
736	character, or has had a gaming license revoked by this state or
737	any other jurisdiction for any gaming-related offense.
738	(e)  Deny, revoke, or refuse to renew any Internet poker
739	hub operator or cardroom affiliate occupational license if the
740	applicant for the license or the licensee has been convicted of
741	a felony or misdemeanor in this state, in any other state, or
742	under the laws of the United States if such felony or
743	misdemeanor is related to gambling or bookmaking as described in
744	s. 849.25.
745	(14)  BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE;
746	FINGERPRINTS; FEES; CITATIONS.-
747	(a)  A person employed by or working with an Internet poker
748	hub operator or a cardroom affiliate must submit fingerprints
749	for a criminal history record check and may not have been
750	convicted of any disqualifying criminal offense specified in
751	subsection (7). Division employees and law enforcement officers
752	assigned by their employing agencies to work within the premises
753	as part of their official duties are excluded from the criminal
754	history record check requirements under this subsection.
755	(b)  Fingerprints for all intrastate Internet poker
756	occupational license applications shall be taken in a manner
757	approved by the division upon initial application, or as
758	required thereafter by rule of the division, and shall be
759	submitted electronically to the Department of Law Enforcement
760	for state processing. The Department of Law Enforcement shall
761	forward the fingerprints to the Federal Bureau of Investigation
762	for national processing. The results of the criminal history
763	record check shall be returned to the division for purposes of
764	screening. The division requirements under this subsection shall
765	be instituted in consultation with the Department of Law
766	Enforcement.
767	(c)  The cost of processing fingerprints and conducting a
768	criminal history record check for an intrastate Internet poker
769	occupational license shall be borne by the person being checked.
770	The Department of Law Enforcement may invoice the division for
771	the fingerprints submitted each month.
772	(d)  All fingerprints submitted to the Department of Law
773	Enforcement and required by this section shall be retained by
774	the Department of Law Enforcement and entered into the statewide
775	automated fingerprint identification system as authorized by s.
776	943.05(2)(b) and shall be available for all purposes and uses
777	authorized for arrest fingerprint cards entered into the
778	statewide automated fingerprint identification system under s.
779	943.051.
780	(e)  The Department of Law Enforcement shall search all
781	arrest fingerprints received under s. 943.051 against the
782	fingerprints retained in the statewide automated fingerprint
783	identification system. Any arrest record that is identified with
784	the retained fingerprints of a person subject to the criminal
785	history screening requirements of this section shall be reported
786	to the division. Each licensed facility shall pay a fee to the
787	division for the cost of retention of the fingerprints and the
788	ongoing searches under this paragraph. The division shall
789	forward the payment to the Department of Law Enforcement. The
790	amount of the fee to be imposed for performing these searches
791	and the procedures for the retention of licensee fingerprints
792	shall be as established by rule of the Department of Law
793	Enforcement. The division shall inform the Department of Law
794	Enforcement of any change in the license status of licensees
795	whose fingerprints are retained under paragraph (d).
796	(f)  The division shall request the Department of Law
797	Enforcement to forward the fingerprints to the Federal Bureau of
798	Investigation for a national criminal history records check
799	every 3 years following issuance of a license. If the
800	fingerprints of a person who is licensed have not been retained
801	by the Department of Law Enforcement, the person must file a
802	complete set of fingerprints as provided for in paragraph (a).
803	The division shall collect the fees for the cost of the national
804	criminal history record check under this paragraph and shall
805	forward the payment to the Department of Law Enforcement. The
806	cost of processing fingerprints and conducting a criminal
807	history record check under this paragraph for an intrastate
808	Internet poker occupational license shall be borne by the person
809	being checked. The Department of Law Enforcement may invoice the
810	division for the fingerprints submitted each month. Under
811	penalty of perjury, each person who is licensed or who is
812	fingerprinted as required by this subsection must agree to
813	inform the division within 48 hours if he or she is convicted of
814	or has entered a plea of guilty or nolo contendere to any
815	disqualifying offense, regardless of adjudication.
816	(g)  All moneys collected under this subsection shall be
817	deposited into the Pari-mutuel Wagering Trust Fund.
818	(h)  The division may deny, revoke, or suspend any
819	occupational license if the applicant or holder of the license
820	accumulates unpaid obligations, defaults in obligations, or
821	issues drafts or checks that are dishonored or for which payment
822	is refused without reasonable cause.
823	(i)  The division may fine or suspend, revoke, or place
824	conditions upon the license of any licensee who provides false
825	information under oath regarding an application for a license or
826	an investigation by the division.
827	(j)  The division may impose a civil fine of up to $10,000
828	for each violation of this section or the rules of the division
829	in addition to or in lieu of any other penalty provided for in
830	this subsection. The division may adopt a penalty schedule for
831	violations of this section or any rule adopted pursuant to this
832	section for which it would impose a fine in lieu of a suspension
833	and adopt rules allowing for the issuance of citations,
834	including procedures to address such citations, to persons who
835	violate such rules. In addition to any other penalty provided by
836	law, the division may exclude from all licensed pari-mutuel,
837	cardroom, and slot machine facilities in this state, for a
838	period not to exceed the period of suspension, revocation, or
839	ineligibility, any person whose occupational license application
840	has been declared ineligible to hold an occupational license or
841	whose occupational license has been suspended or revoked by the
842	division.
843	(15)  REGISTERED PLAYERS; ELIGIBILITY.-
844	(a)  All registered players must be located within this
845	state at the time of play of intrastate Internet poker.
846	(b)  A person who has not attained 18 years of age may not
847	be a registered player or play intrastate Internet poker.
848	(c)  All Internet poker hub operators and cardroom
849	affiliates shall exclude from play any person who has submitted
850	a completed Internet Poker Self-Exclusion Form.
851	1.  All Internet poker hub operators and cardroom
852	affiliates shall have an Internet Poker Self-Exclusion Form
853	available online and accessible on the Internet page that is
854	displayed when:
855	a.  A person opens the Internet page to register as a
856	registered player; or
857	b.  A registered player accesses the first page of the
858	Internet page prior to playing.
859	2.  Upon receipt of a completed Internet Poker Self-
860	Exclusion Form, an Internet poker hub operator or cardroom
861	affiliate shall immediately provide a copy of the completed form
862	to each Internet poker hub operator, each cardroom affiliate,
863	and the division. The division shall ensure that all other
864	cardroom affiliates exclude the person from the play of
865	intrastate Internet poker.
866	3.  Each Internet poker hub operator and cardroom affiliate
867	shall retain the original form to identify persons who request
868	to be excluded from play.
869	4.  Each Internet poker hub operator and cardroom affiliate
870	shall prominently display a link to the website of a responsible
871	gaming organization that is under contract with the division
872	pursuant to s. 551.118(2) for services related to the prevention
873	of compulsive and addictive gambling.
874	5.  A person may not bring any action against an Internet
875	poker hub operator or a cardroom affiliate for negligence or any
876	other claim if a person who has filled out an Internet Poker
877	Self-Exclusion Form gains access and plays despite the request
878	to be excluded.
879	(16)  INTRASTATE INTERNET POKER; AUTHORIZED GAMES.-
880	(a)  In order to offer a specific game of poker for play,
881	an Internet poker hub operator shall provide the division with:
882	1.  A description of any game of poker and the betting
883	rules it proposes to offer to registered players; and
884	2.  Documentation relating to development and testing of
885	the game's software.
886	(b)  Upon submission of the information required in
887	paragraph (a), an Internet poker hub operator may begin offering
888	the game. If the division does not object to the proposed game
889	of poker within 30 days after receipt of the submission, the
890	game will considered authorized and the Internet poker hub
891	operator submitting the proposal may continue to offer the game
892	to registered players.
893	(c)  Games and betting events shall be operated strictly in
894	accordance with the specified game and betting rules.
895	(d)  An Internet poker hub operator shall ensure that the
896	authorized games of poker are fair. For each proposed or
897	authorized game offered for play, the gaming system shall
898	display the following information:
899	1.  The name of the game.
900	2.  Any restrictions on play.
901	3.  The rules of the game.
902	4.  All instructions on how to play.
903	5.  The unit and total bets permitted.
904	6.  The registered player's current account balance, which
905	shall be updated in real time.
906	7.  Any other information that an Internet poker hub
907	operator determines is necessary for the registered player to
908	have in real time to compete fairly in the proposed or
909	authorized game.
910	(e)  All proposed and authorized game results shall be
911	conducted in such a fashion that:
912	1.  Data used to create results shall be unpredictable such
913	that it is infeasible to predict the next occurrence in a game,
914	given complete knowledge of the algorithm or hardware generating
915	the sequence, and all previously generated numbers.
916	2.  The game or any game event outcome shall not be
917	affected by the effective bandwidth, link utilization, bit error
918	rate, or other characteristic of the communications channel
919	between the gaming system and the playing device used by the
920	player.
921	(f)  An Internet poker hub operator shall deploy controls
922	and technology to ensure the ability to minimize fraud or
923	cheating through collusion, such as external exchange of
924	information between different players, or any other means.
925	1.  If an Internet poker hub operator becomes aware that
926	fraud or cheating is taking place or has taken place, it shall
927	immediately take steps to stop such activities and inform the
928	division of all relevant facts.
929	2.  An Internet poker hub operator shall immediately inform
930	the division of any complaints and investigate whether the
931	complaints are true and shall expeditiously act to prevent
932	further fraud or collusion from taking place on the Internet
933	poker hub. An Internet poker hub operator shall report the
934	results of the investigation in writing to the division within
935	24 hours after the complaint and shall continue to report every
936	24 hours until its investigation is concluded. This paragraph
937	does not prevent the division from conducting an independent
938	investigation or initiating an administrative action to protect
939	registered players from fraud and collusion on the Internet
940	poker hub site and does not prohibit a registered player, the
941	Internet poker hub operator, a cardroom affiliate, or the
942	division from reporting suspected criminal activities to law
943	enforcement officials.
944	3.  A registered player may not bring an action for damages
945	against an Internet poker hub operator for attempting to prevent
946	fraud or cheating if the Internet poker hub operator can
947	demonstrate that it acted to prevent such actions as soon as it
948	became aware of them.
949	(g)  If the gaming server or software does not allow a game
950	to be completed, the hand shall be voided and all funds relating
951	to the incomplete hand shall be returned to the registered
952	player's account.
953	(17)  REGISTERED PLAYER ACCOUNTS.-
954	(a)  An Internet poker hub operator shall register players
955	and establish registered player accounts prior to play and shall
956	ensure that personally identifiable information is accessible to
957	players and regulators but is otherwise secure.
958	(b)  A person may not participate in any game on a state
959	Internet poker network unless the person is registered as a
960	player and holds an account.
961	(c)  Accounts may be established in person or by mail,
962	telephone, or any electronic means.
963	(d)  To register and establish an account, a person must
964	provide the following registration information:
965	1.  First name and surname.
966	2.  Principal residence address.
967	3.  Telephone number.
968	4.  Social security number.
969	5.  Legal identification or certification to prove that the
970	person is at least 18 years of age.
971	6.  Valid email address.
972	7.  The source of funds to be used to establish the account
973	after the registration process is complete.
974	(e)  An individual may not register for more than three
975	registered player accounts per calendar year. A registered
976	player may not have more than three registered player accounts
977	at any time.
978	(f)  Prior to completing the registration process, an
979	Internet poker hub operator shall explain to the person in a
980	conspicuous fashion the privacy policies of the Internet poker
981	hub, and the person must assent to the following policies:
982	1.  Personal identifying information will not be shared
983	with any nongovernment third parties except for licensed
984	subcontractors of an Internet poker hub operator for the sole
985	purpose of permitting registered players to participate in games
986	on the Internet poker hub or upon receipt of a court order to
987	subpoena such information from the Internet poker hub.
988	2.  All personally identifiable information about
989	registered players will be shared with the division, the
990	Department of Law Enforcement, and any other governmental agency
991	that receives a court order to subpoena such information.
992	(g)  An Internet poker hub operator shall also require that
993	a person agree to the terms of a use agreement applying to
994	registered players.
995	(h)  An Internet poker hub operator shall provide a
996	registered player with the means to update the information
997	provided in paragraph (d).
998	(i)  An Internet poker hub operator may revoke the accounts
999	of a registered player for the following reasons:
1000	1.  The registered player provided false information in the
1001	registration process;
1002	2.  The registered player has not updated registration
1003	information to keep it current; or
1004	3.  The registered player has violated an Internet poker
1005	hub operator's terms of use agreement.
1006	(j)  An Internet poker hub operator may suspend or revoke
1007	the account of a registered player if the operator suspects the
1008	registered player has participated in illegal activity on a
1009	state Internet poker network.
1010	(k)  An Internet poker hub operator shall establish and
1011	maintain an account for each registered player. An Internet
1012	poker hub operator shall:
1013	1.  Provide a means for a registered player to put funds
1014	into an account; however, a registered player may not increase
1015	the amount in an account after a game has started and before its
1016	completion.
1017	2.  Maintain records on the balance of each registered
1018	player's account.
1019	3.  Prohibit a registered player from placing a wager
1020	unless the player's account has sufficient funds to cover the
1021	amount of the wager.
1022	4.  Not provide credit to a registered player's account or
1023	act as an agent for a credit provider to facilitate the
1024	provision of funds.
1025	5.  Provide a means for a registered player to transfer
1026	money out of the player's account.
1027	(l)  An Internet poker hub operator shall put in place
1028	other systems that provide registered players with the ability
1029	to control aspects of their play. Upon registration and at each
1030	time when a registered player logs on to a state Internet poker
1031	network, an Internet poker hub operator shall permit the
1032	registered player to adjust the player's play settings to:
1033	1.  Set a limit on the deposits that can be made per day;
1034	2.  Set a limit on the amount that can be wagered within a
1035	specified period of time;
1036	3.  Set a limit on the losses that may incur within a
1037	specified period of time;
1038	4.  Set a limit on the amount of time that can be played
1039	after logging on to the Internet poker hub; or
1040	5.  Prevent the Internet poker hub from allowing the
1041	registered player to play for a definite or indefinite period of
1042	time.
1043	(m)  During play, in order to assist a registered player to
1044	decide whether to suspend play, the registered player's screen
1045	shall:
1046	1.  Indicate how long the player has been playing;
1047	2.  Indicate the player's winnings or losses since the time
1048	of last logging in;
1049	3.  Give an option to the player to end the session or
1050	return to the game; and
1051	4.  Require the player to confirm that the player has read
1052	the message.
1053	(18)  REGISTERED PLAYER ACCOUNTS; RECORDS AND REPORTS.-
1054	(a)  An Internet poker hub operator shall establish a book
1055	of accounts, regularly audit, and make all financial records
1056	available to the division. An Internet poker hub operator shall
1057	demonstrate that it has a system of maintaining records and
1058	reports that are readily available to the division. The records
1059	and reports shall include the following:
1060	1.  Monthly auditable and aggregate financial statements of
1061	gaming transactions.
1062	2.  Calculation of all fees payable to government.
1063	3.  The identity of players.
1064	4.  The balance on the player's account at the start of a
1065	session of play.
1066	5.  The wagers placed on each game time stamped by the
1067	games server.
1068	6.  The result of each game time stamped by the games
1069	server.
1070	7.  The amount won or lost by the player.
1071	8.  The balance on the player's account at the end of the
1072	game.
1073	(b)  An Internet poker hub operator shall reconcile all
1074	data logs files regarding the registered players' accounts on a
1075	monthly basis.
1076	(19)  INTERNET POKER HUB OPERATOR; TECHNICAL SYSTEMS
1077	REQUIREMENTS.-
1078	(a)  An Internet poker hub operator shall put in place
1079	technical systems that materially aid the division in fulfilling
1080	its regulatory, consumer protection, and revenue-raising
1081	functions and allow the division unrestricted access to and the
1082	right to inspect the technical systems.
1083	(b)  An Internet poker hub operator shall ensure that the
1084	network is protected from manipulation or tampering to affect
1085	the random probabilities of winning plays.
1086	(c)  An Internet poker hub operator shall define and
1087	document its methodology for the following:
1088	1.  The development, implementation, and maintenance of
1089	gaming software in a manner representative of industry best
1090	practice standards.
1091	2.  Server connectivity requirements that include:
1092	a.  Minimum game server connectivity requirements that
1093	ensure players are protected from losses due to connectivity
1094	problems.
1095	b.  The system's ability to recover all transactions
1096	involving player funds in the event of a failure or malfunction.
1097	c.  Aborted game procedures.
1098	3.  Ability of the system to recover all information
1099	required for viewing a game interrupted due to loss of
1100	connectivity.
1101	4.  Consumer protection requirements.
1102	5.  Responsible advertising, marketing, and promotion that
1103	ensure that players are not misled through advertising or
1104	promotional activities, and will ensure that the terms and
1105	conditions of their promotions are followed.
1106	6.  Anti-money-laundering controls.
1107	7.  Preventive and detective controls addressing money
1108	laundering and fraud risks which shall be documented and
1109	implemented.
1110	(d)  An Internet poker hub operator shall retain all such
1111	documentation for at least 12 months.
1112	(20)  FEE FOR PARTICIPATION.-An Internet poker hub operator
1113	shall charge a fee or a tournament fee to registered players for
1114	the right to participate in authorized games or tournaments
1115	conducted on a state Internet poker network. The participation
1116	fee may be a per-hand charge, a flat fee, an hourly rate, or a
1117	rake subject to the posted maximum amount but may not be based
1118	on the amount won by players. The fee shall be designated and
1119	conspicuously posted on the registered player's screen prior to
1120	the start of each proposed or authorized game.
1121	(21)  PROHIBITED RELATIONSHIPS.-
1122	(a)  A proprietorship, partnership, corporation,
1123	subcontractor, or other entity must obtain a valid intrastate
1124	Internet poker business occupational license issued by the
1125	division to partner with, contract with, be associated with, or
1126	participate in the conduct of intrastate Internet poker
1127	operations with an Internet poker hub operator or a cardroom
1128	affiliate.
1129	(b)  A person employed by or performing any function on
1130	behalf of the division may not:
1131	1.  Be an officer, director, owner, or employee of any
1132	person or entity licensed by the division.
1133	2.  Have or hold any interest, direct or indirect, in or
1134	engage in any commerce or business relationship with any person
1135	licensed by the division.
1136	(c)  An employee of the division or a relative living in
1137	the same household as the employee may not play at any time on a
1138	state Internet poker network.
1139	(d)  An occupational licensee of an Internet poker hub
1140	operator or a relative living in the same household as the
1141	occupational licensee may not play at any time on a state
1142	Internet poker network. This paragraph does not apply to an
1143	occupational licensee of a cardroom affiliate.
1144	(22)  PROHIBITED ACTS; PENALTIES.-
1145	(a)  An Internet poker hub operator may conduct any
1146	proposed or authorized game under subsection (16) unless
1147	specifically prohibited by the division or by this section.
1148	(b)  A person who has not attained 18 years of age may not
1149	hold an intrastate Internet poker occupational license or engage
1150	in any game conducted therein.
1151	(c)  It is a violation of the laws of this state for any
1152	entity to offer Internet poker for free or for money or any
1153	other consideration to individuals present in this state unless
1154	that entity can demonstrate that it is in compliance with the
1155	laws and tax regulations of the United States and of this state.
1156	(d)  Any entity that has accepted any wager of money or
1157	other consideration on any online gambling activity, including
1158	poker, from any Florida resident since October 13, 2006, is not
1159	eligible to apply for licensure and participate in intrastate
1160	Internet poker in this state for a period of 3 years after the
1161	effective date of this act.
1162	(e)  Except as otherwise provided by law and in addition to
1163	any other penalty, any person who knowingly makes or causes to
1164	be made, or aids, assists, or procures another to make, a false
1165	statement in any report, disclosure, application, or any other
1166	document required under this section or any rule adopted under
1167	this section is subject to an administrative fine of up to
1168	$10,000.
1169	(f)  Any person who manipulates or attempts to manipulate
1170	the outcome, payoff, or operation of the play of intrastate
1171	Internet poker by tampering, collusion, or fraud, or by the use
1172	of any object, instrument, or device, by any means, commits a
1173	felony of the third degree, punishable as provided in s.
1174	775.082, s. 775.083, or s. 775.084.
1175	(g)  All penalties imposed and collected under this
1176	subsection shall be deposited into the Pari-mutuel Wagering
1177	Trust Fund.
1178	(23)  LICENSE FEES.-
1179	(a)  Upon the submission of the initial application for an
1180	Internet poker hub operator license and annually thereafter, on
1181	the anniversary date of the issuance of the initial license, an
1182	Internet poker hub operator licensee shall pay a nonrefundable
1183	license fee of $500,000 for the succeeding 12 months of
1184	licensure.
1185	(b)  Upon submission of the initial application for a
1186	cardroom affiliate license and annually thereafter, as
1187	prescribed by the division, the licensee shall pay to the
1188	division a nonrefundable license fee of $1,000 for the
1189	succeeding 12 months of licensure.
1190	(c)  The license fees required under this subsection shall
1191	be deposited into the Pari-mutuel Wagering Trust Fund to be used
1192	by the division for the regulation, investigations, and
1193	enforcement of the intrastate Internet poker provisions under
1194	this section. These payments shall be accounted for separately
1195	from taxes or fees paid pursuant to chapters 550 and 551 and s.
1196	849.086.
1197	(24)  ADVANCE PAYMENT BY AN INTERNET POKER HUB OPERATOR.-
1198	Upon the awarding of a contract to be an Internet poker hub
1199	operator by the division under subsection (6), an Internet poker
1200	hub operator licensee shall pay to the division a nonrefundable
1201	payment of $10 million. This payment shall be treated as an
1202	advance payment to the state by each Internet poker hub operator
1203	and shall be credited against the tax on monthly gross receipts
1204	derived from the play of intrastate Internet poker under
1205	paragraph (25)(a) until the original amount is recouped by each
1206	Internet poker hub operator.
1207	(25)  TAX RATE; OTHER PAYMENTS; PENALTIES.-
1208	(a)  Each Internet poker hub operator shall pay a tax to
1209	the state of 10 percent of the operator's monthly gross receipts
1210	derived from the play of intrastate Internet poker. However, an
1211	Internet poker hub operator shall pay no taxes under this
1212	paragraph until the full amount of the advance payment made by
1213	that poker hub operator under subsection (24) has been credited
1214	against the tax. Credit of the advance payment toward the tax
1215	shall be made upon receipt by the division of the monthly report
1216	required under paragraph (b).
1217	(b)  The gross receipts tax imposed by this section shall
1218	be paid to the division. Each Internet poker hub operator shall
1219	remit the gross receipts tax and licensee fees to the division
1220	to be deposited with the Chief Financial Officer, to the credit
1221	of the Pari-mutuel Wagering Trust Fund. Such payments shall be
1222	remitted to the division by electronic funds transfer on the 5th
1223	day of each calendar month for taxes and fees imposed for the
1224	preceding month's intrastate Internet poker activities.
1225	Licensees shall file a report under oath by the 5th day of each
1226	calendar month for all taxes remitted during the preceding
1227	calendar month. Such payments shall be accompanied by a report
1228	under oath showing all intrastate Internet poker activities for
1229	the preceding calendar month and such other information as may
1230	be prescribed by the division.
1231	(c)  A licensee who fails to make tax payments as required
1232	under this section is subject to an administrative penalty of up
1233	to $10,000 for each day the tax payment is not remitted. All
1234	penalties imposed and collected under this subsection shall be
1235	deposited in the Pari-mutuel Wagering Trust Fund. If a licensee
1236	fails to pay penalties imposed by order of the division under
1237	this subsection, the division may suspend, revoke, or refuse to
1238	renew the license of an Internet poker hub operator or cardroom
1239	affiliate.
1240	(d)  All of the moneys deposited in the Pari-mutuel
1241	Wagering Trust Fund under this section shall be utilized and
1242	distributed in the manner specified in s. 550.135(1) and (2).
1243	(26)  DISTRIBUTION OF INCOME DERIVED FROM THE PLAY OF
1244	INTERNET POKER.-
1245	(a)  After the tax on the monthly gross receipts derived
1246	from the play of intrastate Internet poker is paid to the state
1247	as specified under subsection (25), the remaining monthly gross
1248	receipts shall be distributed by the Internet poker hub
1249	operators as follows:
1250	1.  Seventy percent shall be distributed to eligible
1251	licensed cardrooms and cardroom affiliates.
1252	a.  Before distribution under sub-subparagraph b., if the
1253	amount to be distributed under this subparagraph for a specific
1254	month is greater than $35,000 multiplied by the number of
1255	cardrooms eligible to be cardroom affiliates for that month,
1256	each licensed cardroom operator as defined in s. 894.086 that
1257	did not participate as a cardroom affiliate for that month shall
1258	receive a payment for that month of $20,833, and the remaining
1259	sum shall be distributed pursuant to sub-subparagraph b.
1260	b.(I)  Fifty percent shall be divided and distributed among
1261	the cardroom affiliates based on each cardroom affiliate's total
1262	rake generated from the play of authorized games defined in s.
1263	849.086(2)(a) for the previous state fiscal year divided by the
1264	total previous year's rake for all the cardroom affiliates, as
1265	determined by the division.
1266	(II)  Fifty percent shall be divided and distributed to the
1267	cardroom affiliates based on the amount wagered for the previous
1268	month through each cardroom affiliate's portal as determined by
1269	the division, divided by the total amount wagered for the
1270	previous month through all cardroom affiliates' portals.
1271	c.  If two or more cardroom affiliates join together to
1272	operate a portal for purposes of sub-sub-subparagraphs b.(I) and
1273	(II), their portal wagers and previous year's rake shall be
1274	combined.
1275	d.  Each greyhound and each jai alai permitholder that
1276	receives payments under this subparagraph shall use at least 4
1277	percent of its monthly gross receipts from the play of
1278	intrastate Internet poker to supplement greyhound purses or jai
1279	alai prize money, respectively, by the permitholder's next
1280	ensuing pari-mutuel meet. Each thoroughbred, quarter horse, or
1281	harness horse permitholder that is licensed as a cardroom
1282	affiliate shall use at least 50 percent of the permitholder's
1283	monthly net proceeds from the play of intrastate Internet poker
1284	as follows: 47 percent to supplement purses and 3 percent to
1285	supplement breeders' awards by the permitholder's next ensuing
1286	race meet.
1287	2.  Twenty-five percent shall be retained by the Internet
1288	poker hub operators from which they shall pay all costs for the
1289	intrastate Internet poker hub operations.
1290	3.  Four percent shall be retained by the Internet poker
1291	hub operators to fund statewide advertising, marketing, and
1292	promotion of the play of intrastate Internet poker on a state
1293	Internet poker network. The division shall perform an annual
1294	audit to verify that the Internet poker hub operators use such
1295	funds solely for the statewide advertising, marketing, and
1296	promotion of the play of intrastate Internet poker on a state
1297	Internet poker network.
1298	4.  One percent shall fund services related to the
1299	prevention and treatment of compulsive and addictive gambling
1300	provided by the entity that is under contract with the division
1301	under s. 551.118(2). The division shall be responsible for the
1302	distribution and audit of the funds under this subparagraph.
1303	(b)  The distribution of the preceding monthly gross
1304	receipts shall be by the 20th day of each calendar month.
1305	(c)  The division shall ensure that all distributions are
1306	made in accordance with this section and may adopt rules to
1307	ensure the implementation and proper distribution of funds.
1308	(d)  This subsection does not prevent individual cardrooms
1309	or a number of cardroom affiliates from joining together in a
1310	coalition for the purpose of the marketing and promotion of the
1311	play of intrastate Internet poker on a state Internet poker
1312	network.
1313	(27)  SUSPENSION, REVOCATION, OR DENIAL OF LICENSE; FINE.-
1314	(a)  The division may deny a license or the renewal of a
1315	license, or may suspend or revoke any license, when the
1316	applicant has: violated or failed to comply with section or any
1317	rule adopted pursuant to this section; knowingly caused, aided,
1318	abetted, or conspired with another to cause any person to
1319	violate this section or any rule adopted pursuant to this
1320	section; or obtained a license or permit by fraud,
1321	misrepresentation, or concealment; or if the holder of the
1322	license is no longer eligible under this section.
1323	(b)  If a cardroom affiliate's pari-mutuel permit or
1324	license is suspended or revoked by the division pursuant to
1325	chapter 550, or its cardroom operator's license is suspended or
1326	revoked by the division pursuant to s. 849.086, the division
1327	may, but is not required to, suspend or revoke the cardroom
1328	affiliate's license. If a cardroom affiliate's license is
1329	suspended or revoked under this section, the division may, but
1330	is not required to, suspend or revoke the licensee's cardroom
1331	operator's license.
1332	(c)  Notwithstanding any other provision of this section,
1333	the division may impose an administrative fine not to exceed
1334	$10,000 for each violation against any person who has violated
1335	or failed to comply with this section or any rule adopted
1336	pursuant to this section.
1337	(28)  PENALTIES.-The division may revoke or suspend any
1338	Internet poker hub operator license or cardroom affiliate
1339	license issued under this section upon the willful violation by
1340	the licensee of this section or any rule adopted pursuant to
1341	this section. In lieu of suspending or revoking the license, the
1342	division may impose an administrative fine, not exceeding
1343	$100,000 for each count or separate offense, upon an Internet
1344	poker hub operator or a cardroom affiliate for willfully
1345	violating this section or any rule adopted pursuant to this
1346	section. All penalties imposed and collected under this section
1347	shall be deposited into the Pari-mutuel Wagering Trust Fund.
1348	(29)  RULEMAKING.-The division may adopt rules pursuant to
1349	ss. 120.536(1) and 120.54 to administer the provisions of this
1350	section.
1351	(30)  LEGISLATIVE AUTHORITY; ADMINISTRATION OF SECTION.-The
1352	Legislature finds and declares that it has exclusive authority
1353	over the conduct of intrastate Internet poker in this state.
1354	Only the Division of Pari-mutuel Wagering and other authorized
1355	state agencies shall administer this section and regulate the
1356	intrastate Internet poker industry in the state, including
1357	operation of all Internet poker hub operators and cardroom
1358	affiliates, play of authorized games, and the Internet poker
1359	computer systems authorized in this section, as provided by law
1360	and rules adopted by the division.
1361	Section 3.  This act shall take effect July 1, 2011.

CODING: Words stricken are deletions; words underlined are additions.