Bill Text: NY A03634 | 2023-2024 | General Assembly | Introduced
Bill Title: Authorizes interactive gaming in the state of New York.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced) 2024-01-03 - referred to racing and wagering [A03634 Detail]
Download: New_York-2023-A03634-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3634 2023-2024 Regular Sessions IN ASSEMBLY February 3, 2023 ___________ Introduced by M. of A. PRETLOW -- read once and referred to the Commit- tee on Racing and Wagering AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to authorizing interactive gaming The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The racing, pari-mutuel wagering and breeding law is 2 amended by adding a new article 15 to read as follows: 3 ARTICLE 15 4 INTERACTIVE GAMING 5 Section 1500. Legislative intent and findings. 6 1501. Definitions. 7 1502. Authorization. 8 1503. Required safeguards. 9 1504. State taxes. 10 § 1500. Legislative intent and findings. Section nine of article one 11 of the New York state constitution was recently amended and provides 12 "casino gambling at no more than seven facilities as authorized and 13 prescribed by the legislature shall hereafter be authorized or allowed 14 within this state." It has been, and continues to be, the sense of the 15 legislature that this provision is not contravened by a statute that 16 authorizes the acceptance of a wager by an individual who is betting by 17 virtual or electronic means and the wager is accepted through equipment 18 located within a licensed gaming facility; provided that any such wager 19 meets other safeguards ensuring that the plain text of this provision is 20 honored in such structure. Interactive gaming is now legal online in 21 seven states, including the bordering states of New Jersey, Pennsylvania 22 and Connecticut, while it is permitted only in person in New York at 23 four upstate commercial gaming facilities and Native American class III 24 gaming facilities. The legislature hereby finds and declares that an 25 interactive gaming wager that is made through virtual or electronic EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06580-02-3A. 3634 2 1 means from a location within New York state and is transmitted to and 2 accepted by electronic equipment located at a licensed gaming facility, 3 including without limitation, a computer server located at such licensed 4 gaming facility, is a wager made at such licensed gaming facility, 5 notwithstanding any provisions of the penal law to the contrary. 6 § 1501. Definitions. As used in this article, the following terms 7 shall have the following meanings: 8 1. "Authorized game" means any casino slot or table game determined by 9 the commission to be compatible with the public interest and to be suit- 10 able for online use after an appropriate test or experimental period as 11 the commission may deem appropriate. An authorized game may include 12 gaming tournaments in which players compete against one another in one 13 or more of the games authorized herein or by the commission or in 14 approved variations or composites thereof if such tournaments are 15 authorized. 16 2. "Authorized participant" means an individual who is physically 17 present in the state of New York when placing an interactive gaming 18 wager, who is authorized to participate in gaming pursuant to article 19 thirteen of this chapter, and who participates in interactive gaming 20 offered by a casino or operator. All interactive gaming wagers placed in 21 accordance with this article shall be considered placed or otherwise 22 made when received by the casino or operator at the licensed gaming 23 facility, regardless of the authorized participant's physical location 24 at the time such wager is initiated. The intermediate routing of elec- 25 tronic data in connection with mobile wagering shall not determine the 26 location or locations in which a wager is initiated, received or other- 27 wise made. 28 3. "Commission" means the New York state gaming commission. 29 4. "Interactive gaming wager" means cash or cash equivalent that is 30 paid by an authorized sports bettor to a casino or operator to partic- 31 ipate in interactive gaming offered by such casino or operator. Any 32 wager through electronic communication shall be deemed to take place at 33 the physical location of the server or other equipment used by a casino 34 or operator to accept interactive gaming wagering, regardless of the 35 authorized participant's physical location within the state at the time 36 such wager is initiated. 37 5. "Interactive gaming" means wagering on authorized casino games 38 online by any system or method of wagering, including, but not limited 39 to, in-person communication and electronic communication through inter- 40 net websites accessed via a mobile device or computer, and mobile device 41 applications. 42 6. "Interactive gaming gross revenue" means the amount equal to the 43 total of all interactive gaming wagers that a casino or operator 44 collects from all authorized participants less the total of all sums 45 paid out as winnings to all participants, provided however, that the 46 total of all sums paid out as winnings shall not include the cash equiv- 47 alent value of any merchandise or thing of value awarded as a prize. The 48 issuance to or wagering by authorized participants of any promotional 49 gaming credit shall not be taxable for the purposes of determining 50 interactive gaming gross revenue. 51 7. "Interactive gaming wagering platform" means the combination of 52 hardware, software, and data networks used to manage, administer, or 53 control interactive gaming wagering and any associated wagers accessible 54 by any electronic means, including mobile applications and internet 55 websites accessed via a mobile device or computer.A. 3634 3 1 8. "Operator" means a casino or an Indian tribe that has entered into 2 a tribal-state gaming compact in accordance with the Indian Gaming Regu- 3 latory Act that is in effect and has been ratified by the state of New 4 York, and has entered into an interactive gaming wagering agreement with 5 the commission pursuant to section one thousand five hundred two of this 6 article. 7 § 1502. Authorization. 1. (a) No casino or operator shall administer, 8 manage or otherwise make available an interactive gaming wagering plat- 9 form to persons located in New York state unless authorized by and 10 registered with the commission pursuant to this section. A casino or 11 operator may use up to two mobile interactive gaming wagering platforms 12 and brands for authorized games, provided that such platform and brands 13 have been reviewed and approved by the commission. A casino or operator 14 may contract with up to two independent contractors to provide its 15 mobile interactive gaming wagering platforms. An independent contractor 16 may display its brand on the platform in addition to the casino or oper- 17 ator brand. 18 (b) As a condition of registration, the commission shall require that 19 each casino or operator authorized to conduct mobile interactive gaming 20 wagering pay a one-time fee of two million dollars. As a condition of 21 approval of any independent contractor to provide an operator's mobile 22 interactive gaming waging platform and display its brand, the commission 23 shall require that such independent contractor pay a one-time fee of ten 24 million dollars. 25 (c) Registrations issued by the commission shall remain in effect for 26 ten years. The commission shall establish and implement a process for 27 renewal. 28 (d) The commission shall publish a list of all casinos and operators 29 registered to offer mobile interactive gaming wagering in New York state 30 pursuant to this section on the commission's website for public use. 31 (e) The commission shall prescribe the form and manner of the applica- 32 tion for registration, which shall contain all information deemed neces- 33 sary and relevant by the commission to determine whether an applicant 34 should be authorized to conduct interactive gaming wagering. 35 2. (a) As a condition of registration as an operator, each casino 36 shall agree, upon request of an Indian tribe that has not entered into 37 an agreement for mobile interactive gaming wagering with another casino, 38 to provide a site for a mobile interactive gaming wagering server and 39 related equipment for such Indian tribe as directed by the commission, 40 at no cost to such Indian tribe except the direct and actual cost of 41 hosting the server or other equipment used by such Indian tribe, as 42 determined by the commission. 43 (b) As a condition of registration as an operator in New York state, 44 an Indian tribe shall enter into an agreement with the commission with 45 respect to mobile interactive gaming wagering: 46 (i) to follow the requirements imposed on casinos and operators under 47 this section with respect to such Indian tribe's mobile interactive 48 gaming wagering, to adhere to the regulations promulgated by the commis- 49 sion pursuant to this section with respect to mobile interactive gaming 50 wagering, and to submit to the commission's enforcement of this section 51 and regulations promulgated thereunder, including by waiving tribal 52 sovereign immunity for the sole and limited purpose of such enforcement; 53 (ii) to waiver such Indian tribe's exclusive geographic right to offer 54 and conduct mobile interactive gaming wagering, but not otherwise;A. 3634 4 1 (iii) to remit payment to the state equal to tax on interactive gaming 2 wagering revenue imposed pursuant to section one thousand five hundred 3 four of this article; 4 (iv) not to offer or to conduct any other mobile gaming unless such 5 mobile gaming is otherwise authorized by state or federal law; and 6 (v) to locate the server or other equipment used by such Indian tribe 7 to accept mobile interactive gaming wagering at a casino that has 8 applied for and is eligible to register as an operator of interactive 9 gaming wagering pursuant to this section and to pay the actual cost of 10 hosting the server or other equipment as determined by the commission. 11 (c) All agreements entered into by casinos and Indian tribes with 12 respect to hosting mobile interactive gaming wagering platforms for an 13 Indian tribe: 14 (i) shall be approved by the commission prior to taking effect and 15 before registration of such casino or Indian tribe as an operator pursu- 16 ant to this section; 17 (ii) shall provide that the Indian tribe may, at its sole discretion, 18 terminate such agreement with six months' notice, unless otherwise 19 agreed to in writing with such casino, and all commitments, undertakings 20 and waivers made by such Indian tribe thereunder, except that such Indi- 21 an tribe's waiver of its exclusive geographic right to offer and conduct 22 mobile interactive gaming wagering shall survive the termination of such 23 agreement; 24 (iii) shall be limited in applicability solely to such Indian tribe's 25 operation of mobile interactive gaming wagering and shall not extend to 26 any other operation or activity of such Indian tribe; and 27 (iv) shall not create any rights or privileges to any third party who 28 is not a party to such agreement, except that the commission shall have 29 the power to enforce such agreement, including by revoking or suspending 30 the registration of a party that fails to comply with its obligations 31 under such agreement. 32 (d) No mobile interactive gaming wagering may be conducted within an 33 Indian tribe's exclusive geographic area unless such Indian tribe with 34 exclusive geographic right to such area is registered as an operator 35 pursuant to this section. Operators shall use geo-location and geo-fenc- 36 ing technology to ensure that mobile interactive gaming wagering is not 37 available to persons who are physically located in an Indian tribe's 38 exclusive geographic area, unless such Indian tribe with exclusive 39 geographic right to that area is registered as an operator pursuant to 40 this section. 41 § 1503. Required safeguards. 1. As a condition of registration, each 42 operator shall implement the following measures: 43 (a) limit each authorized participant to one active and continuously 44 used account on their platform, and prevent anyone they know, or should 45 have known to be a prohibited bettor from maintaining accounts or 46 participating in any interactive gaming wagering offered by such opera- 47 tor; 48 (b) adopt appropriate safeguards to ensure, to a reasonable degree of 49 certainty, that authorized participants are physically located within 50 the state when engaging in mobile interactive gaming wagering; 51 (c) prohibit minors from participating in any mobile interactive 52 gaming wagering, which includes: 53 (i) if an operator becomes or is made aware that a minor has created 54 an account, or accessed the account of another, such operator shall 55 promptly, within no more than two business days, refund any deposit 56 received from the minor, whether or not the minor has engaged in orA. 3634 5 1 attempted to engage in interactive gaming wagering, provided however, 2 that any refund may be offset by any prizes already awarded; 3 (ii) each operator shall provide parental control procedures to allow 4 parents or guardians to exclude minors from access to any interactive 5 gaming wagering or platform. Such procedures shall include a toll-free 6 number to call for help in establishing such parental controls; and 7 (iii) each operator shall take appropriate steps to confirm that an 8 individual opening an account is not a minor; 9 (d) when referencing the chances or likelihood of winning in adver- 10 tisements or upon placement of an interactive gaming wager, make clear 11 and conspicuous statements that are not inaccurate or misleading 12 concerning the chances of winning and the number of winners; 13 (e) enable authorized participants to exclude themselves from interac- 14 tive gaming wagering and take reasonable steps to prevent such bettors 15 from engaging in wagering from which they have excluded themselves; 16 (f) permit any authorized participant to permanently close an account 17 registered to such bettor, on any and all platforms supported by such 18 operator, at any time and for any reason; 19 (g) offer introductory procedures for authorized participants that 20 explain interactive gaming wagering, which shall be prominently 21 displayed on the main page of such operator platform; 22 (h) implement measures to protect the privacy and online security of 23 authorized participants and their accounts; 24 (i) offer all authorized participants access to his or her account 25 history and account details; 26 (j) ensure authorized participants' funds are protected upon deposit 27 and segregated from the operating funds of such operator and otherwise 28 protected from corporate insolvency, financial risk, or criminal or 29 civil actions against such operator; 30 (k) list on each website, in a prominent place, information concerning 31 assistance for compulsive play in New York state, including a toll-free 32 number directing callers to reputable resources containing further 33 information, which shall be free of charge; 34 (l) permit account holders to establish self-exclusion gaming limits 35 on a daily, weekly, and monthly basis that enable the account holder to 36 identify the maximum amount of money an account holder may deposit 37 during such period of time; 38 (m) when an account holder's lifetime deposits exceed two thousand 39 five hundred dollars, the operator shall prevent any wagering until such 40 account holder immediately acknowledges, and acknowledges each year 41 thereafter, that he or she has met the deposit threshold and may elect 42 to establish responsible gaming limits or close the account, and such 43 account holder has received disclosures from the operator concerning 44 problem gambling resources; 45 (n) maintain a publicly accessible internet page dedicated to respon- 46 sible play, a link to which shall appear on the operator's website and 47 in any mobile application or electronic platform on which a bettor may 48 place wagers. The responsible play page shall include (i) a statement of 49 the operator's policy and commitment to responsible gaming; (ii) infor- 50 mation regarding, or links to information regarding, the risks associ- 51 ated with gambling and the potential signs of problem gaming; (iii) the 52 availability of self-imposed gaming limits; (iv) a link to a problem 53 gaming webpage maintained by the office of addiction services and 54 supports; and (v) such other information or statements as the commission 55 may require by rule; andA. 3634 6 1 (o) submit annually a problem gaming plan to the commission that 2 includes: (i) the objectives of and timetables for implementing such 3 plan; (ii) identification of the persons responsible for implementing 4 and maintaining such plan; (iii) procedures for identifying users with 5 suspected or known problem gaming behavior; (iv) procedures for provid- 6 ing information to users concerning problem gaming identification and 7 resources; (v) procedures to prevent gaming by minors and self-excluded 8 persons; and (vi) such other problem gaming information as the commis- 9 sion may require by rule. 10 2. The commission shall annually require a report to be prepared and 11 distributed to the governor and the legislature on the impact of mobile 12 interactive gaming wagering on problem gamblers in New York state. Such 13 report shall include an assessment of problem gaming among persons under 14 the age of thirty. Such report shall be prepared by a non-governmental 15 organization or entity with expertise in serving the needs of persons 16 with gambling addictions. Such report shall be prepared and distributed 17 under the supervision of and in coordination with the commission. The 18 costs associated with the preparation and distribution of such report 19 shall be borne by operators and the commission shall be authorized to 20 assess a fee against operators for such purposes. The commission shall 21 also report periodically to the governor and legislature on the effec- 22 tiveness of the statutory and regulatory controls in place to ensure the 23 integrity of mobile interactive gaming operations. 24 § 1504. State taxes. 1. For the privilege of conducting mobile inter- 25 active gaming wagering in the state, casinos and operators shall pay a 26 tax equivalent to twenty-five percent of interactive gaming gross reven- 27 ue attributed to interactive gaming wagering pursuant to section one 28 thousand five hundred two of this article. Mobile interactive gaming tax 29 revenue shall be separately maintained and returned to the state for 30 deposit into the state lottery fund for education aid, except as 31 provided for in subdivision two of this section. Any interest and penal- 32 ties imposed by the commission relating to such taxes, all penalties 33 levied and collected by the commission, and the appropriate funds, cash 34 or prizes forfeited from interactive gaming wagering shall be deposited 35 into the state lottery fund for education. 36 2. From the state tax collected pursuant to subdivision one of this 37 section, the commission shall distribute, in conjunction with the office 38 of addiction services and supports, eleven million dollars annually for 39 problem gambling education and treatment purposes. 40 § 2. This act shall take effect immediately.
