Bill Text: NY S00017 | 2019-2020 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Provides for regulation of sports betting and mobile sports wagering; defines terms; implements a tax equivalent to eight and one-half percent of sports wagering gross revenue; requires reporting; provides for civil penalties for violations; makes related provisions.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed) 2019-06-17 - referred to codes [S00017 Detail]

Download: New_York-2019-S00017-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          17--B

                               2019-2020 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 9, 2019
                                       ___________

        Introduced  by  Sens.  ADDABBO,  FUNKE,  RAMOS -- read twice and ordered
          printed, and when printed to be committed to the Committee on  Racing,
          Gaming  and  Wagering  --  committee discharged, bill amended, ordered
          reprinted as amended and recommitted to  said  committee  --  reported
          favorably  from  said  committee  and  committed  to  the Committee on
          Finance -- committee discharged, bill amended,  ordered  reprinted  as
          amended and recommitted to said committee

        AN  ACT  to  amend the racing, pari-mutuel wagering and breeding law, in
          relation to regulation of sports betting

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. Section 1367 of the racing, pari-mutuel wagering and breed-
     2  ing law, as added by chapter 174 of the laws of 2013, is amended to read
     3  as follows:
     4    § 1367. Sports wagering. 1. As used in this section:
     5    (a)  "Affiliate"  means  any off-track betting corporation, franchised
     6  corporation, or race track licensed pursuant to this chapter, an  opera-
     7  tor  of  video  lottery  gaming at Aqueduct licensed pursuant to section
     8  sixteen hundred seventeen-a of the  tax  law,  which  has  an  affiliate
     9  agreement  with a casino pursuant to section thirteen hundred sixty-sev-
    10  en-a of this title. In a county that does not have an  "affiliate",  any
    11  professional  sports  stadium  or  arena  in that county may serve as an
    12  affiliate;
    13    (b) "Agent" means an entity that is party to a contract with a  casino
    14  authorized to operate a sports pool and is approved by the commission to
    15  operate a sports pool on behalf of such casino;
    16    (c)  "Authorized  sports bettor" means an individual who is physically
    17  present in this state when placing a sports wager, who is not a  prohib-
    18  ited  sports  bettor,  that participates in sports wagering offered by a
    19  casino.  All sports wagers placed in accordance with  this  section  are

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05498-12-9

        S. 17--B                            2

     1  considered placed or otherwise made when received by the operator at the
     2  licensed  gaming  facility, regardless of the authorized sports bettor's
     3  physical location at the time the sports wager is initiated.  The inter-
     4  mediate  routing  of  electronic  data  in connection with mobile sports
     5  wagering shall not determine the location or locations in which a  wager
     6  is initiated, received or otherwise made;
     7    (d)  "Brand"  means  the  name  and  logo on the interface of a mobile
     8  application or internet website accessed via a mobile device or computer
     9  which authorized sports bettors use to access a sports betting platform;
    10    (e) "Casino" means a licensed gaming facility  at  which  gambling  is
    11  conducted pursuant to the provisions of this article;
    12    [(b)]  (f)  "Commission"  means the commission established pursuant to
    13  section one hundred two of this chapter;
    14    [(c)] (g) "Collegiate sport  or  athletic  event"  means  a  sport  or
    15  athletic  event  offered  or sponsored by or played in connection with a
    16  public or private institution that offers  educational  services  beyond
    17  the secondary level;
    18    [(d)]  (h)  "Exchange  wagering"  means a form of wagering in which an
    19  authorized sports bettor, on the one hand, and one  or  more  authorized
    20  sports  bettors,  a casino or an agent or an operator, on the other hand
    21  place identically opposing sports wagers on an exchange  operated  by  a
    22  casino or an agent or an operator;
    23    (i)  "Global risk management" means the direction, management, consul-
    24  tation and/or instruction for purposes of managing risks associated with
    25  sports wagering conducted pursuant to  this  section  and  includes  the
    26  setting  and  adjustment  of  betting  lines, point spreads, or odds and
    27  whether to place layoff bets as permitted by this section;
    28    (j) "High school sport or athletic event" means a  sport  or  athletic
    29  event  offered  or sponsored by or played in connection with a public or
    30  private institution that offers  education  services  at  the  secondary
    31  level;
    32    (k)  "Horse  racing event" means any sport or athletic event conducted
    33  in New York state subject to the  provisions  of  articles  two,  three,
    34  four,  five,  six, nine, ten and eleven of this chapter, or any sport or
    35  athletic event conducted outside of New York state, which  if  conducted
    36  in New York state would be subject to the provisions of this chapter;
    37    (l)  "In-play  sports  wager"  means a sports wager placed on a sports
    38  event after the sports event has begun and before it ends;
    39    (m) "Layoff bet" means a sports wager placed by a casino  sports  pool
    40  with another casino sports pool;
    41    (n) "Minor" means any person under the age of twenty-one years;
    42    (o) "Mobile sports wagering platform" or "platform" means the combina-
    43  tion  of  hardware, software, and data networks used to manage, adminis-
    44  ter, or control sports wagering and any associated wagers accessible  by
    45  any electronic means including mobile applications and internet websites
    46  accessed via a mobile device or computer;
    47    (p)  "Official  league  data" means statistics, results, outcomes, and
    48  other data relating to a sporting event that have been obtained from the
    49  relevant sports governing body or an entity expressly authorized by  the
    50  sports governing body to provide such information to casinos;
    51    (q)  "Operator"  means  a casino which has elected to operate a sports
    52  pool (or agent of such casino) or an Indian Tribe (or an agent  of  such
    53  Indian  Tribe)  that  has  entered into a tribal-state gaming compact in
    54  accordance with the Indian Gaming Regulatory Act 25 U.S.C. 2710, that is
    55  in effect and has been ratified by the state  and  has  entered  into  a

        S. 17--B                            3

     1  sports  wagering  agreement  pursuant to section thirteen hundred sixty-
     2  seven-a of this title;
     3    [(e)]  (r)  "Professional  sport  or athletic event" means an event at
     4  which two or more persons participate in sports or athletic  events  and
     5  receive  compensation  in  excess  of  actual expenses for their partic-
     6  ipation in such event;
     7    (s) "Professional sports stadium or arena" means a venue that regular-
     8  ly hosts professional sports events, as defined in this section;
     9    [(f)] (t) "Prohibited sports bettor" means:
    10    (i) any officer or employee of the commission;
    11    (ii) any principal or key employee of a casino or operator, except  as
    12  may be permitted by the commission for good cause shown;
    13    (iii)  any  casino  gaming  or  non-gaming employee at the casino that
    14  employs such person and at any operator that has an agreement with  that
    15  casino;
    16    (iv)  any  contractor,  subcontractor,  or  consultant,  or officer or
    17  employee of a contractor, subcontractor, or consultant, of a  casino  if
    18  such  person  is  directly  involved  in the operation or observation of
    19  sports  wagering,  or  the  processing  of  sports  wagering  claims  or
    20  payments;
    21    (v)  Any  person  subject  to  a  contract with the commission if such
    22  contract contains a provision prohibiting such person from participating
    23  in sports wagering;
    24    (vi) Any spouse, child, brother, sister or parent residing as a member
    25  of the same household in the principal place of  abode  of  any  of  the
    26  foregoing  persons  at  the  same  casino  where the foregoing person is
    27  prohibited from participating in sports wagering;
    28    (vii) any individual with access to non-public  confidential  informa-
    29  tion about sports wagering;
    30    (viii)  any  amateur  or  professional  athlete if the sports wager is
    31  based on any sport or athletic event overseen by  the  athlete's  sports
    32  governing body;
    33    (ix)  any sports agent, owner or employee of a team, player and umpire
    34  union personnel, and employee referee, coach or  official  of  a  sports
    35  governing  body,  if  the sports wager is based on any sport or athletic
    36  event overseen by the individual's sports governing body;
    37    (x) any individual placing a wager as an agent or proxy for an  other-
    38  wise prohibited sports bettor; or
    39    (xi) any minor;
    40    (u)  "Prohibited  sports event" means any collegiate sport or athletic
    41  event that takes place in New York or a sport or athletic event in which
    42  any New York college team participates regardless  of  where  the  event
    43  takes place, or high school sport or athletic event;
    44    [(g)]  (v) "Registered sports governing body" means a sports governing
    45  body that is headquartered in the United States and who  has  registered
    46  with  the  commission to receive royalty fee revenue in such form as the
    47  commission may require;
    48    (w) "Sports event" means any professional sport or athletic event  and
    49  any collegiate sport or athletic event, except a prohibited sports event
    50  or a horse racing event;
    51    [(h)]   (x)  "Sports  governing  body"  means  the  organization  that
    52  prescribes final rules and enforces codes of conduct with respect  to  a
    53  sporting event and participants therein;
    54    (y) "Sports pool" means the business of accepting wagers on any sports
    55  event by any system or method of wagering; [and

        S. 17--B                            4

     1    (i)]  (z) "Sports wager" means cash or cash equivalent that is paid by
     2  an authorized sports bettor to a casino to participate in sports  wager-
     3  ing offered by such casino;
     4    (aa)  "Sports  wagering"  means  wagering  on  sporting  events or any
     5  portion thereof, or on the individual performance statistics of athletes
     6  participating in a sporting event, or combination of sporting events, by
     7  any system or method of wagering, including, but not limited to, in-per-
     8  son communication and electronic communication through internet websites
     9  accessed via a mobile device or computer and mobile device applications.
    10  Any wager through electronic communication shall be deemed to take place
    11  at the physical location of the server or other  equipment  used  by  an
    12  operator  to accept mobile sports wagering, regardless of the authorized
    13  sports bettor's physical location within the state at the time the wager
    14  is initiated.   The term "sports wagering" shall  include,  but  is  not
    15  limited  to,  single-game  bets,  teaser bets, parlays, over-under bets,
    16  money line, pools, exchange wagering, in-game  wagering,  in-play  bets,
    17  proposition bets and straight bets;
    18    (bb)  "Sports  wagering  gross revenue" means: (i) the amount equal to
    19  the total of all sports wagers not  attributable  to  prohibited  sports
    20  events that an operator collects from all players, less the total of all
    21  sums  not  attributable to prohibited sports events paid out as winnings
    22  to all sports bettors, however, that the total of all sums paid  out  as
    23  winnings  to  sports bettors shall not include the cash equivalent value
    24  of any merchandise or thing of value awarded as a prize, or (ii) in  the
    25  case  of  exchange  wagering pursuant to this section, the commission on
    26  winning sports wagers by authorized sports bettors retained by the oper-
    27  ator. The issuance to or wagering by  authorized  sports  bettors  at  a
    28  casino  of  any  promotional  gaming credit shall not be taxable for the
    29  purposes of determining sports wagering gross revenue;
    30    (cc) "Sports wagering lounge" means an area wherein a sports  pool  is
    31  operated;
    32    (dd)  "Tier  one sports wager" means a sports wager that is determined
    33  solely by the final score or final outcome of the sports event;
    34    (ee) "Tier two sports wager" means an in-play sports wager that is not
    35  a tier one sports wager;
    36    (ff) "Tier three sports wager" means a sports wager that is neither  a
    37  tier one nor a tier two sports wager; and
    38    (gg)  "Indian Tribe" means an Indian Tribe (or an agent of such tribe)
    39  that has entered into a tribal-state gaming compact in  accordance  with
    40  the  Indian  Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168,
    41  inclusive, and 25 U.S.C. Sec. 2701 et seq.) which has been  ratified  by
    42  the state.
    43    2.  [No gaming facility may conduct sports wagering until such time as
    44  there has been a change in federal law authorizing such or upon a ruling
    45  of a court of competent jurisdiction that such activity is lawful.
    46    3.] (a) In addition  to  authorized  gaming  activities,  a  [licensed
    47  gaming  facility] casino may [when authorized by subdivision two of this
    48  section] operate a sports pool upon the approval of the  commission  and
    49  in  accordance  with the provisions of this section and applicable regu-
    50  lations promulgated pursuant to this article. The commission shall  hear
    51  and  decide  promptly  and  in  reasonable  order all applications for a
    52  license to operate a sports pool, shall have the general  responsibility
    53  for  the  implementation of this section and shall have all other duties
    54  specified in this section with regard to the operation of a sports pool.
    55  The license to operate a sports pool shall be in addition to  any  other
    56  license  required to be issued to operate a [gaming facility] casino. No

        S. 17--B                            5

     1  license to operate a sports pool shall be issued by  the  commission  to
     2  any  entity unless it has established its financial stability, integrity
     3  and responsibility and its good character, honesty and integrity.
     4    No  later  than five years after the date of the issuance of a license
     5  and every five years thereafter or within such  lesser  periods  as  the
     6  commission  may  direct,  a licensee shall submit to the commission such
     7  documentation  or  information  as  the  commission  may  by  regulation
     8  require, to demonstrate to the satisfaction of the executive director of
     9  the  commission  that the licensee continues to meet the requirements of
    10  the law and regulations.
    11    (b) As a condition of licensure the commission shall require that each
    12  agent authorized to conduct sports wagering pay a one-time fee of twelve
    13  million dollars. Such fee shall be paid within  thirty  days  of  gaming
    14  commission  approval  prior  to  license issuance and deposited into the
    15  commercial gaming revenue fund established pursuant to section  thirteen
    16  hundred fifty-two of this article.
    17    (c)  A  sports  pool  shall  be  operated  in a sports wagering lounge
    18  located at a casino.  The  lounge  shall  conform  to  all  requirements
    19  concerning  square  footage,  design,  equipment,  security measures and
    20  related matters which the commission shall by regulation prescribe.
    21    [(c)] (d) The operator of a sports pool shall establish or display the
    22  odds at which wagers may be placed on sports events.
    23    [(d)] (e) An operator shall accept wagers on sports events  only  from
    24  persons  physically  present  in  the sports wagering lounge, or through
    25  mobile sports wagering offered  pursuant  to  section  thirteen  hundred
    26  sixty-seven-a  of this title. A person placing a wager shall be at least
    27  twenty-one years of age.
    28    [(e)] (f) An operator may also accept  layoff  bets  as  long  as  the
    29  authorized sports pool places such wagers with another authorized sports
    30  pool or pools in accordance with regulations of the commission. A sports
    31  pool that places a layoff bet shall inform the sports pool accepting the
    32  wager that the wager is being placed by a sports pool and shall disclose
    33  its identity.
    34    (g)  An  operator  may  utilize global risk management pursuant to the
    35  approval of the commission.
    36    (h) An operator shall not admit into the sports  wagering  lounge,  or
    37  accept wagers from, any person whose name appears on the exclusion list.
    38    [(f)]  (i)  The  holder  of  a  license  to  operate a sports pool may
    39  contract with [an entity] an agent to conduct any or all aspects of that
    40  operation, or the operation of mobile sports wagering  offered  pursuant
    41  to  section  thirteen hundred sixty-seven-a of this title, including but
    42  not limited to brand, marketing and customer service, in accordance with
    43  the regulations of the commission. [That entity] Each agent shall obtain
    44  a license as a casino vendor enterprise prior to the  execution  of  any
    45  such  contract,  and  such  license  shall  be  issued  pursuant  to the
    46  provisions of section one thousand three hundred  twenty-seven  of  this
    47  article  and  in  accordance  with  the  regulations  promulgated by the
    48  commission.
    49    [(g)] (j) If any provision of this article or its application  to  any
    50  person  or circumstance is held invalid, the invalidity shall not affect
    51  other provisions or applications of this  article  which  can  be  given
    52  effect without the invalid provision or application, and to this end the
    53  provisions of this article are severable.
    54    [4.]  3.  (a) All persons employed directly in wagering-related activ-
    55  ities conducted within a sports wagering lounge shall be licensed  as  a
    56  casino key employee or registered as a gaming employee, as determined by

        S. 17--B                            6

     1  the commission. All other employees who are working in the sports wager-
     2  ing  lounge may be required to be registered, if appropriate, in accord-
     3  ance with regulations of the commission.
     4    (b)  Each operator of a sports pool shall designate one or more casino
     5  key employees who shall be responsible for the operation of  the  sports
     6  pool.  At  least  one  such casino key employee shall be on the premises
     7  whenever sports wagering is conducted.
     8    [5.] 4. Except as otherwise provided by this article,  the  commission
     9  shall  have  the  authority  to regulate sports pools and the conduct of
    10  sports wagering under this article to the same extent that  the  commis-
    11  sion  regulates other gaming. No casino shall be authorized to operate a
    12  sports pool unless  it  has  produced  information,  documentation,  and
    13  assurances  concerning its financial background and resources, including
    14  cash reserves, that are sufficient to demonstrate that it has the finan-
    15  cial stability, integrity, and responsibility to operate a sports  pool.
    16  In  developing  rules and regulations applicable to sports wagering, the
    17  commission shall examine the regulations  implemented  in  other  states
    18  where  sports  wagering  is  conducted and shall, as far as practicable,
    19  adopt a similar regulatory framework. The  commission  shall  promulgate
    20  regulations  necessary  to  carry  out  the  provisions of this section,
    21  including, but not limited to, regulations governing the:
    22    (a) amount of cash reserves to be maintained  by  operators  to  cover
    23  winning wagers;
    24    (b) acceptance of wagers on a series of sports events;
    25    (c)  maximum  wagers which may be accepted by an operator from any one
    26  patron on any one sports event;
    27    (d) type of wagering tickets which may be used;
    28    (e) method of issuing tickets;
    29    (f) method of accounting to be used by operators;
    30    (g) types of records which shall be kept;
    31    (h) use of credit and checks by [patrons] authorized sports bettors;
    32    (i) the process by which a casino may place a layoff bet;
    33    (j) the use of global risk management;
    34    (k) type of system for wagering; and
    35    [(j)] (l) protections for a person placing a wager.
    36    [6.] 5. Each operator shall adopt comprehensive house rules  governing
    37  sports  wagering  transactions  with  its  [patrons]  authorized  sports
    38  bettors. The rules shall specify the  amounts  to  be  paid  on  winning
    39  wagers  and  the  effect of schedule changes.  The house rules, together
    40  with any other information the commission deems  appropriate,  shall  be
    41  conspicuously  displayed  in  the sports wagering lounge and included in
    42  the terms and conditions of the  account  wagering  system,  and  copies
    43  shall be made readily available to [patrons] authorized sports bettors.
    44    6. (a) Each casino that offers sports wagering shall annually submit a
    45  report  to the commission no later than the twenty-eighth of February of
    46  each year, which shall include the following information:
    47    (i) the total amount of sports wagers received from authorized  sports
    48  bettors;
    49    (ii) the total amount of prizes awarded to authorized sports bettors;
    50    (iii)  the  total  amount of sports wagering gross revenue received by
    51  the casino;
    52    (iv) the total amount contributed in sports  betting  royalty  revenue
    53  pursuant to subdivision eight of this section;
    54    (v)  the  total  amount  of  wagers  received on each sports governing
    55  body's sporting events;
    56    (vi) the number of accounts held by authorized sports bettors;

        S. 17--B                            7

     1    (vii) the total number of new accounts established  in  the  preceding
     2  year,  as well as the total number of accounts permanently closed in the
     3  preceding year;
     4    (viii) the total number of authorized sports bettors that requested to
     5  exclude themselves from sports wagering; and
     6    (ix) any additional information that the commission deems necessary to
     7  carry out the provisions of this article.
     8    (b) Upon the submission of such annual report, to such extent that the
     9  commission  deems  it to be in the public interest, the commission shall
    10  be authorized to conduct a financial audit of any casino, at  any  time,
    11  to ensure compliance with this article.
    12    (c) The commission shall annually publish a report based on the aggre-
    13  gate  information  provided  by all casinos pursuant to paragraph (a) of
    14  this subdivision, which shall be published on the  commission's  website
    15  no  later  than  one  hundred  eighty  days  after  the deadline for the
    16  submission of individual reports as specified in such paragraph (a).
    17    7. (a) Within thirty days of the end of each calendar quarter, a casi-
    18  no offering sports wagering shall  remit  to  the  commission  a  sports
    19  wagering  royalty  fee  of  one-fifth (.20) of one percent of the amount
    20  wagered on  sports  events  conducted  by  registered  sports  governing
    21  bodies.    The  fee  shall  be  remitted on a form as the commission may
    22  require, on which the casino shall identify the percentage  of  wagering
    23  during  the  reporting  period  attributable  to  each  registered sport
    24  governing body's sports events.
    25    (b) No later than the thirtieth of April of each  year,  a  registered
    26  sports governing body may submit a claim for disbursement of the royalty
    27  fee  funds  remitted  by  casinos in the previous calendar year on their
    28  respective sports events.  Within thirty days of  submitting  its  claim
    29  for  disbursement,  the registered sports governing body shall meet with
    30  the commission to provide the  commission  with  evidence  of  policies,
    31  procedures  and  training  programs  it  has  implemented to protect the
    32  integrity of its sports events.
    33    (c) Within thirty days of  its  meeting  with  the  registered  sports
    34  governing  body,  the  commission  shall  approve  a  timely  claim  for
    35  disbursement.
    36    (d) Before any registered sports governing body may receive  any  such
    37  disbursement  of the royalty fee funds, such sports governing body shall
    38  have in place procedures or processes that  address  the  protection  of
    39  athletes,  players,  umpires,  referees, club officials and personnel or
    40  officials of such sports league and members of their families and  asso-
    41  ciates  from physical attacks, verbal threats, or other forms of harass-
    42  ment occurring in the workplace or elsewhere.
    43    8. For the privilege of conducting sports wagering in the state, casi-
    44  nos shall pay a tax equivalent to eight and one-half  percent  of  their
    45  sports  wagering  gross revenue, excluding sports wagering gross revenue
    46  attributed to mobile sports wagering offered pursuant to  section  thir-
    47  teen hundred sixty-seven-a of this title. Casinos shall pay a tax equiv-
    48  alent  of  twelve  percent of their sports wagering gross revenue attri-
    49  buted to mobile sports wagering offered  pursuant  to  section  thirteen
    50  hundred sixty-seven-a of this title.
    51    9.  The  commission  shall pay into the commercial gaming revenue fund
    52  established pursuant to section ninety-seven-nnnn of the  state  finance
    53  law  eighty-five  percent  of the state tax imposed by this section; any
    54  interest and penalties imposed  by  the  commission  relating  to  those
    55  taxes;  all  penalties  levied  and collected by the commission; and the
    56  appropriate funds, cash or prizes forfeited from  sports  wagering.  The

        S. 17--B                            8

     1  commission shall pay into the commercial gaming fund five percent of the
     2  state tax imposed by this section to be distributed for problem gambling
     3  education  and treatment purposes pursuant to paragraph a of subdivision
     4  four  of section ninety-seven-nnnn of the state finance law. The commis-
     5  sion shall pay into the commercial gaming fund five percent of the state
     6  tax imposed by this section to be distributed for the cost of regulation
     7  pursuant to paragraph c of subdivision four of section ninety-seven-nnnn
     8  of the state finance law.  The commission shall pay into the  commercial
     9  gaming  fund five percent of the state tax imposed by this section to be
    10  distributed in the same formula as market  origin  credits  pursuant  to
    11  section  one  hundred  fifteen-b  of  this chapter. The commission shall
    12  require at least monthly deposits by the casino of any payments pursuant
    13  to subdivision eight of this section, at such times, under  such  condi-
    14  tions,  and  in  such  depositories  as shall be prescribed by the state
    15  comptroller. The deposits shall be deposited to the credit of the  state
    16  commercial  gaming  revenue fund. The commission shall require a monthly
    17  report and reconciliation statement to be filed with it on or before the
    18  tenth day of each month, with respect to  gross  revenues  and  deposits
    19  received and made, respectively, during the preceding month.
    20    10.  The  commission  may perform audits of the books and records of a
    21  casino, at such times and intervals as it  deems  appropriate,  for  the
    22  purpose  of  determining  the  sufficiency  of tax payments. If a return
    23  required with regard to obligations imposed is not filed, or if a return
    24  when filed or is determined by the commission to be incorrect or  insuf-
    25  ficient  with or without an audit, the amount of tax due shall be deter-
    26  mined by the commission. Notice of such determination shall be given  to
    27  the  casino  liable for the payment of the tax. Such determination shall
    28  finally and irrevocably fix the tax unless the casino against whom it is
    29  assessed, within thirty days after receiving  notice  of  such  determi-
    30  nation,  shall  apply to the commission for a hearing in accordance with
    31  the regulations of the commission.
    32    11. Nothing in this section shall apply to interactive fantasy  sports
    33  offered  pursuant  to article fourteen of this chapter.  Nothing in this
    34  section authorizes any entity that conducts interactive  fantasy  sports
    35  offered  pursuant  to article fourteen of this chapter to conduct sports
    36  wagering unless it separately qualifies for, and obtains,  authorization
    37  pursuant to this section.
    38    12.  A  casino that is also licensed under article three of this chap-
    39  ter, and must maintain racing pursuant to paragraph (b)  of  subdivision
    40  one  of  section  thirteen  hundred fifty-five of this chapter, shall be
    41  allowed to offer pari-mutuel wagering on horse racing events in  accord-
    42  ance  with  their  license under article three of this chapter. Notwith-
    43  standing subparagraph (ii) of paragraph c of subdivision two of  section
    44  one  thousand  eight  of  this  chapter, a casino located in the city of
    45  Schenectady shall be allowed to  offer  pari-mutuel  wagering  on  horse
    46  racing  events, provided such wagering is conducted by the regional off-
    47  track betting corporation in such region as the casino is  located.  Any
    48  other  casino  shall  be  allowed to offer pari-mutuel wagering on horse
    49  racing events, provided such wagering is conducted by the regional  off-
    50  track  betting corporation in such region as the casino is located.  Any
    51  physical location where pari-mutuel wagering on horse racing  events  is
    52  offered by a casino and conducted by a regional off-track betting corpo-
    53  ration  in  accordance  with  this  subdivision  shall be deemed to be a
    54  branch location of the regional off-track betting corporation in accord-
    55  ance with section one thousand eight of this  chapter.    Mobile  sports
    56  betting  kiosks located on the premises of affiliates in accordance with

        S. 17--B                            9

     1  paragraph (d) of subdivision five of section thirteen hundred sixty-sev-
     2  en-a of this chapter shall not be allowed to offer pari-mutuel  wagering
     3  on horse racing events.
     4    13.  A sports governing body may notify the commission that it desires
     5  to restrict, limit, or  exclude  wagering  on  its  sporting  events  by
     6  providing  notice  in the form and manner as the commission may require.
     7  Upon receiving such notice, the commission shall review the  request  in
     8  good  faith,  seek  input from the casinos on such a request, and if the
     9  commission deems it appropriate, promulgate regulations to restrict such
    10  sports wagering. If the commission denies a request, the sports  govern-
    11  ing  body  shall  be afforded notice and the right to be heard and offer
    12  proof in opposition to such determination in accordance with  the  regu-
    13  lations  of  the  commission.  Offering  or  taking  wagers  contrary to
    14  restrictions promulgated by  the  commission  is  a  violation  of  this
    15  section.  In  the  event that the request is in relation to an emergency
    16  situation, the executive director  of  the  commission  may  temporarily
    17  prohibit  the  specific  wager  in question until the commission has the
    18  opportunity to issue temporary regulations addressing the issue.
    19    14. (a) The commission shall  designate  the  division  of  the  state
    20  police  to  have primary responsibility for conducting, or assisting the
    21  commission in conducting, investigations into abnormal betting activity,
    22  match fixing, and other conduct that corrupts a  betting  outcome  of  a
    23  sporting event or events for purposes of financial gain.
    24    (b)  Casinos  shall  maintain records of sports wagering operations in
    25  accordance with regulations promulgated by the commission.  These  regu-
    26  lations  shall,  at  a  minimum, require a casino to adopt procedures to
    27  obtain personally identifiable information from any individual who plac-
    28  es any single wager in an amount of ten thousand dollars or greater.
    29    (c) The commission shall cooperate with a sports  governing  body  and
    30  casinos  to ensure the timely, efficient, and accurate sharing of infor-
    31  mation.
    32    (d) The commission and casinos  shall  cooperate  with  investigations
    33  conducted  by  sports  governing  bodies  or  law  enforcement agencies,
    34  including but not limited to providing or facilitating the provision  of
    35  account-level  betting  information and audio or video files relating to
    36  persons placing wagers; provided, however, that the casino  be  required
    37  to share any personally identifiable information of an authorized sports
    38  bettor  with  a sports governing body only pursuant to an order to do so
    39  by the commission or a law enforcement  agency  or  court  of  competent
    40  jurisdiction.
    41    (e)  Casinos  shall  promptly report to the commission any information
    42  relating to:
    43    (i) criminal or disciplinary proceedings commenced against the  casino
    44  in connection with its operations;
    45    (ii) abnormal betting activity or patterns that may indicate a concern
    46  with the integrity of a sporting event or events;
    47    (iii)  any  potential  breach  of the relevant sports governing body's
    48  internal rules and codes of conduct pertaining to  sports  wagering,  as
    49  they have been provided by the sports governing body to the casino;
    50    (iv)  any  other conduct that corrupts a betting outcome of a sporting
    51  event or events for purposes of financial gain, including match  fixing;
    52  and
    53    (v)  suspicious or illegal wagering activities, including use of funds
    54  derived from illegal  activity,  wagers  to  conceal  or  launder  funds
    55  derived  from  illegal  activity,  using  agents  to place wagers, using
    56  confidential non-public information, and using false identification.

        S. 17--B                           10

     1    The commission shall also  promptly  report  information  relating  to
     2  conduct  described  in  subparagraphs (ii), (iii) and (iv) of this para-
     3  graph to the relevant sports governing body.
     4    (f) Casinos shall maintain the confidentiality of information provided
     5  by  a sports governing body to the casino, unless disclosure is required
     6  by this section, the commission, other law, or court order.
     7    (g) The commission, by regulation, may authorize  and  promulgate  any
     8  rules necessary to implement agreements with other states, or authorized
     9  agencies  thereof  to  enable  the  sharing of information to facilitate
    10  integrity monitoring and the conduct  of  investigations  into  abnormal
    11  betting  activity,  match  fixing,  and  other  conduct  that corrupts a
    12  betting outcome of a sporting event or events for purposes of  financial
    13  gain.
    14    (h)  The  commission  shall study the potential for the creation of an
    15  interstate database of all sports wagering information for  the  purpose
    16  of  integrity  monitoring, and shall create a final report regarding all
    17  findings and recommendations to be  delivered  upon  completion  of  all
    18  objectives described herein, but in no event later than March first, two
    19  thousand  twenty,  to  the governor, the speaker of the assembly and the
    20  temporary president of the senate.
    21    15. (a) Casinos shall use whatever data source they  deem  appropriate
    22  for  determining the result of sports wagering involving tier one sports
    23  wagers.
    24    (b) Casinos shall only use official league data in all sports wagering
    25  involving tier two sports wagers, if the relevant sports governing  body
    26  possesses  a feed of official league data, and makes such feed available
    27  for purchase by the casinos on commercially reasonable terms  as  deter-
    28  mined by the commission.
    29    (c)  A sports governing body may notify the commission that it desires
    30  to require casinos to  use  official  league  data  in  sports  wagering
    31  involving  specific  tier three sports wagers by providing notice in the
    32  form and manner as the  commission  may  require.  Upon  receiving  such
    33  notice,  the  commission  shall  review the request, seek input from the
    34  casinos on such a request, and if the commission deems  it  appropriate,
    35  promulgate regulations to require casinos to use official league data on
    36  sports  wagering involving such tier three sports wagers if the relevant
    37  sports governing body possesses a feed  of  official  league  data,  and
    38  makes  such  feed  available for purchase by the casinos on commercially
    39  reasonable terms as determined by the commission.
    40    (d) When determining whether or not a supplier of official league data
    41  is offering commercially reasonable terms, the commission shall consider
    42  the amount charged by the supplier of official  league  data  to  gaming
    43  operators  in other jurisdictions. This information shall be provided to
    44  the commission by the supplier of official league data upon  request  of
    45  the commission. Any entity providing data to a casino for the purpose of
    46  tier  two  sports wagers, other than a supplier of official league data,
    47  shall obtain a license as a casino vendor enterprise  and  such  license
    48  shall  be  issued pursuant to the provisions of section thirteen hundred
    49  twenty-seven of this article and  in  accordance  with  the  regulations
    50  promulgated by the commission.
    51    (e)  No  casino  shall enter into an agreement with a sports governing
    52  body or an entity expressly authorized  to  distribute  official  league
    53  data to be the exclusive recipient of their official league data.
    54    (f) The commission shall promulgate regulations to allow an authorized
    55  sports  bettor  to file a complaint alleging an underpayment or non-pay-
    56  ment of a winning sports wager. Any such regulations shall provide  that

        S. 17--B                           11

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

        S. 17--B                           12

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

        S. 17--B                           13

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

        S. 17--B                           14

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

        S. 17--B                           15

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

        S. 17--B                           16

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

        S. 17--B                           17

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

        S. 17--B                           18

     1    §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
     2  is amended by adding a new subdivision 24 to read as follows:
     3    24. To regulate sports wagering in New York state.
     4    §  4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager-
     5  ing and breeding law, as added by chapter 237 of the laws  of  2016,  is
     6  amended to read as follows:
     7    15.  "Prohibited  sports  event"  shall  mean any [collegiate sport or
     8  athletic event, any] high school sport or athletic event  or  any  horse
     9  racing event.
    10    §  5. Severability clause. If any provision of this act or application
    11  thereof shall for any reason be  adjudged  by  any  court  of  competent
    12  jurisdiction  to  be invalid, such judgment shall not affect, impair, or
    13  invalidate the remainder of the act, but shall be confined in its opera-
    14  tion to the provision thereof directly involved in  the  controversy  in
    15  which the judgment shall have been rendered.
    16    § 6. This act shall take effect immediately.
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