LBD14923-03-8
S. 7900--A 2
[(b)] (E) "Commission" means the commission established pursuant to
section one hundred two of this chapter;
[(c)] (F) "Collegiate sport or athletic event" means a sport or
athletic event offered or sponsored by or played in connection with a
public or private institution that offers educational services beyond
the secondary level;
(G) "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL-
TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH
SPORTS WAGERING CONDUCTED PURSUANT TO THIS SECTION AND INCLUDES THE
SETTING AND ADJUSTMENT OF BETTING LINES, POINT SPREADS, OR ODDS AND
WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION;
[(d)] (H) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A SPORT OR
ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A
PUBLIC OR PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT THE
SECONDARY LEVEL;
(I) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLES TWO, THREE,
FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR
ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
(J) "IN-PLAY SPORTS WAGER" MEANS A SPORTS WAGER PLACED ON A SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
(K) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO SPORTS POOL
WITH ANOTHER CASINO SPORTS POOL;
(L) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
(M) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY
ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER;
(N) "OFFICIAL LEAGUE DATA" MEANS STATISTICS, RESULTS, OUTCOMES, AND
OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE
RELEVANT SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE
SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
(O) "Operator" means a casino which has elected to operate a sports
pool;
[(e)] (P) "Professional sport or athletic event" means an event at
which two or more persons participate in sports or athletic events and
receive compensation in excess of actual expenses for their partic-
ipation in such event;
(Q) "PROHIBITED SPORTS BETTOR" MEANS:
(I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
(II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
(III) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT THE CASINO THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
(IV) ANY CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR
EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF
SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSERVATION OF
SPORTS WAGERING, OR THE PROCESSING OF SPORTS WAGERING CLAIMS OR
PAYMENTS;
(V) ANY PERSON SUBJECT TO A CONTRACT WITH THE COMMISSION IF SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;
S. 7900--A 3
(VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE
FOREGOING PERSONS AT THE SAME CASINO WHERE THE FOREGOING PERSON IS
PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
(VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA-
TION ABOUT SPORTS WAGERING;
(VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE IF THE SPORTS WAGER IS
BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS
GOVERNING BODY;
(IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE
UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR OFFICIAL OF A SPORTS
GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
(X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
(XI) ANY MINOR;
[(f)] (R) "Prohibited sports event" means any [collegiate sport or
athletic event that takes place in New York or a sport or athletic event
in which any New York college team participates regardless of where the
event takes place] HIGH SCHOOL SPORT OR ATHLETIC EVENT;
[(g)] (S) "Sports event" means any professional sport or athletic
event and any collegiate sport or athletic event, except a prohibited
sports event OR A HORSE RACING EVENT;
[(h)] (T) "SPORTS GOVERNING BODY" MEANS THE ORGANIZATION THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A
SPORTING EVENT AND PARTICIPANTS THEREIN;
(U) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
(i)] (V) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY
AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGER-
ING OFFERED BY SUCH CASINO;
(W) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON
COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
THE TERM "SPORTS WAGERING" SHALL INCLUDE, BUT IS NOT LIMITED TO,
SINGLE-GAME BETS, TEASER BETS, PARLAYS, OVER-UNDER BETS, MONEYLINE,
POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION
BETS AND STRAIGHT BETS;
(X) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF
EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE COMMISSION ON WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY
PROMOTIONAL GAMING CREDIT SHALL NOT BE TAXABLE FOR THE PURPOSES OF
DETERMINING SPORTS WAGERING GROSS REVENUE;
(Y) "Sports wagering lounge" means an area wherein a sports pool is
operated;
S. 7900--A 4
(Z) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
(AA) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER; AND
(BB) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER A
TIER ONE NOR A TIER TWO SPORTS WAGER.
2. No gaming facility may conduct sports wagering until such time as
there has been a change in federal law authorizing such or upon a ruling
of a court of competent jurisdiction that such activity is lawful.
3. (a) In addition to authorized gaming activities, a licensed gaming
facility may when authorized by subdivision two of this section operate
a sports pool upon the approval of the commission and in accordance with
the provisions of this section and applicable regulations promulgated
pursuant to this article. The commission shall hear and decide promptly
and in reasonable order all applications for a license to operate a
sports pool, shall have the general responsibility for the implementa-
tion of this section and shall have all other duties specified in this
section with regard to the operation of a sports pool. The license to
operate a sports pool shall be in addition to any other license required
to be issued to operate a gaming facility. No license to operate a
sports pool shall be issued by the commission to any entity unless it
has established its financial stability, integrity and responsibility
and its good character, honesty and integrity.
No later than five years after the date of the issuance of a license
and every five years thereafter or within such lesser periods as the
commission may direct, a licensee shall submit to the commission such
documentation or information as the commission may by regulation
require, to demonstrate to the satisfaction of the executive director of
the commission that the licensee continues to meet the requirements of
the law and regulations.
(b) A sports pool shall be operated in a sports wagering lounge
located at a casino. The lounge shall conform to all requirements
concerning square footage, design, equipment, security measures and
related matters which the commission shall by regulation prescribe.
(c) The operator of a sports pool shall establish or display the odds
at which wagers may be placed on sports events.
(d) An operator shall accept wagers on sports events only from persons
physically present in the sports wagering lounge, OR THROUGH MOBILE
SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV-
EN-A OF THIS TITLE. A person placing a wager shall be at least twenty-
one years of age.
(e) AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE AUTHORIZED
SPORTS POOL PLACES SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR
POOLS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSION. A SPORTS POOL
THAT PLACES A LAYOFF BET SHALL INFORM THE SPORTS POOL ACCEPTING THE
WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE
ITS IDENTITY.
(F) AN OPERATOR MAY UTILIZE GLOBAL RISK MANAGEMENT PURSUANT TO THE
APPROVAL OF THE COMMISSION.
(G) An operator shall not admit into the sports wagering lounge, or
accept wagers from, any person whose name appears on the exclusion list.
[(f)] (H) The holder of a license to operate a sports pool may
contract with [an entity] ONE OR MORE AGENTS to conduct ANY OR ALL
ASPECTS OF that operation, OR THE OPERATION OF MOBILE SPORTS WAGERING
OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS
TITLE, INCLUDING BUT NOT LIMITED TO BRAND, MARKETING AND CUSTOMER
S. 7900--A 5
SERVICE, in accordance with the regulations of the commission. [That
entity] EACH AGENT shall obtain a license as a casino vendor enterprise
prior to the execution of any such contract, and such license shall be
issued pursuant to the provisions of section one thousand three hundred
twenty-seven of this article and in accordance with the regulations
promulgated by the commission.
[(g)] (I) If any provision of this article or its application to any
person or circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this article which can be given
effect without the invalid provision or application, and to this end the
provisions of this article are severable.
4. (a) All persons employed directly in wagering-related activities
conducted within a sports wagering lounge shall be licensed as a casino
key employee or registered as a gaming employee, as determined by the
commission. All other employees who are working in the sports wagering
lounge may be required to be registered, if appropriate, in accordance
with regulations of the commission.
(b) Each operator of a sports pool shall designate one or more casino
key employees who shall be responsible for the operation of the sports
pool. At least one such casino key employee shall be on the premises
whenever sports wagering is conducted.
5. Except as otherwise provided by this article, the commission shall
have the authority to regulate sports pools and the conduct of sports
wagering under this article to the same extent that the commission regu-
lates other gaming. No casino shall be authorized to operate a sports
pool unless it has produced information, documentation, and assurances
concerning its financial background and resources, including cash
reserves, that are sufficient to demonstrate that it has the financial
stability, integrity, and responsibility to operate a sports pool. In
developing rules and regulations applicable to sports wagering, the
commission shall examine the regulations implemented in other states
where sports wagering is conducted and shall, as far as practicable,
adopt a similar regulatory framework. The commission shall promulgate
regulations necessary to carry out the provisions of this section,
including, but not limited to, regulations governing the:
(a) amount of cash reserves to be maintained by operators to cover
winning wagers;
(b) acceptance of wagers on a series of sports events;
(c) maximum wagers which may be accepted by an operator from any one
patron on any one sports event;
(d) type of wagering tickets which may be used;
(e) method of issuing tickets;
(f) method of accounting to be used by operators;
(g) types of records which shall be kept;
(h) use of credit and checks by patrons;
(i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
(J) THE USE OF GLOBAL RISK MANAGEMENT;
(K) type of system for wagering; and
[(j)] (L) protections for a person placing a wager.
6. Each operator shall adopt comprehensive house rules governing
sports wagering transactions with its [patrons] AUTHORIZED SPORTS
BETTORS. The rules shall specify the amounts to be paid on winning
wagers and the effect of schedule changes. The house rules, together
with any other information the commission deems appropriate, shall be
conspicuously displayed in the sports wagering lounge and included in
S. 7900--A 6
the terms and conditions of the account wagering system, and copies
shall be made readily available to patrons.
7. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
(I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED SPORTS
BETTORS;
(II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
(III) THE TOTAL AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY
THE CASINO;
(IV) THE TOTAL AMOUNT CONTRIBUTED TO THE SPORT BETTING INTEGRITY FUND
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
(V) THE TOTAL AMOUNT OF WAGERS RECEIVED ON EACH SPORTS GOVERNING
BODY'S SPORTING EVENTS;
(VI) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT REQUESTED TO
EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND
(VII) ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
(B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL
BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT ANY TIME,
TO ENSURE COMPLIANCE WITH THIS ARTICLE.
(C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE INFORMATION PROVIDED BY ALL CASINOS PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE
NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE DEADLINE FOR THE
SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A).
8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
NO OFFERING SPORTS WAGERING SHALL REMIT TO THE COMMISSION A SPORTS
WAGERING INTEGRITY FEE OF UP TO ONE-QUARTER OF ONE PERCENT OF THE AMOUNT
WAGERED ON SPORTS EVENTS, HOWEVER, IN NO CASE SHALL THE INTEGRITY FEE BE
GREATER THAN TWO PERCENT OF THE CASINO'S SPORTS WAGERING GROSS REVENUE.
THE FEE SHALL BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON
WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF WAGERING DURING THE
REPORTING PERIOD ATTRIBUTABLE TO EACH SPORT GOVERNING BODY'S SPORTS
EVENTS.
(B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH YEAR, A SPORTS
GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE INTEGRITY
FUNDS REMITTED BY CASINOS IN THE PREVIOUS CALENDAR YEAR IN PRO RATA
PROPORTION OF THE TOTAL AMOUNT WAGERED ON THEIR RESPECTIVE SPORTS EVENTS
TO REIMBURSE THE SPORTS GOVERNING BODY FOR EXPENSES INCURRED FOR INTEG-
RITY OPERATIONS. ELIGIBLE EXPENSES SHALL INCLUDE, BUT NOT BE LIMITED
TO, INTEGRITY MONITORING EXPENSES, EXPENSES INCURRED RELATED TO INTEGRI-
TY INVESTIGATIONS, PUBLIC RELATIONS EXPENSES ASSOCIATED WITH INTEGRITY
ISSUES, AND ANY OTHER ELIGIBLE EXPENSES APPROVED BY THE COMMISSION.
(C) EACH SPORTS GOVERNING BODY WHICH RECEIVES IN EXCESS OF FIFTY-THOU-
SAND DOLLARS ANNUALLY FROM THE INTEGRITY FEE SHALL ANNUALLY SUBMIT A
REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
(I) THE TOTAL AMOUNT OF INTEGRITY FUND REIMBURSEMENT RECEIVED FROM NEW
YORK;
(II) A DETAILED SUMMARY OF THE FINAL DISPOSITIONS OF INTEGRITY INVES-
TIGATIONS WHERE IT WAS DETERMINED THAT MISCONDUCT TOOK PLACE;
(III) ANY ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
S. 7900--A 7
(D) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL
BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY SPORTS GOVERNING BODY,
AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE.
(E) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE INFORMATION PROVIDED BY ALL SPORTS GOVERNING BODIES PURSUANT TO
PARAGRAPH (C) OF THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE
COMMISSION'S WEBSITE NO LATER THAN ONE HUNDRED EIGHTY DAYS AFTER THE
DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN PARA-
GRAPH (C) OF THIS SUBDIVISION.
(F) AT THE END OF THE YEAR, ANY UNCLAIMED INTEGRITY FEE REVENUE SHALL
BE DISTRIBUTED TO THE SPORTS GOVERNING BODIES WHICH WERE APPROVED TO
RECEIVE FUNDING, ON A PRO RATA BASIS.
9. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI-
NOS SHALL PAY A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR
SPORTS WAGERING GROSS REVENUE.
10. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING REVENUE FUND
ESTABLISHED PURSUANT TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE
LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION; ANY
INTEREST AND PENALTIES IMPOSED BY THE COMMISSION RELATING TO THOSE
TAXES; ALL PENALTIES LEVIED AND COLLECTED BY THE COMMISSION; AND THE
APPROPRIATE FUNDS, CASH OR PRIZES FORFEITED FROM SPORTS WAGERING. THE
COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF SUBDIVISION
FIVE OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW. THE COMMISSION SHALL PAY INTO THE COMMERCIAL
GAMING FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET ORIGIN CREDITS PURSUANT TO
SECTION ONE HUNDRED FIFTEEN-B OF THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES, UNDER SUCH CONDI-
TIONS, AND IN SUCH DEPOSITORIES AS SHALL BE PRESCRIBED BY THE STATE
COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE STATE
COMMERCIAL GAMING REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY
REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE
TENTH DAY OF EACH MONTH, WITH RESPECT TO GROSS REVENUES AND DEPOSITS
RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
11. THE COMMISSION MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A
CASINO, AT SUCH TIMES AND INTERVALS AS IT DEEMS APPROPRIATE, FOR THE
PURPOSE OF DETERMINING THE SUFFICIENCY OF TAX PAYMENTS. IF A RETURN
REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN
WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR INSUF-
FICIENT WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER-
MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN TO
THE CASINO LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL
FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS
ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING NOTICE OF SUCH DETERMI-
NATION, SHALL APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH
THE REGULATIONS OF THE COMMISSION.
12. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY SPORTS
OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER. NOTHING IN THIS
SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE FANTASY SPORTS
S. 7900--A 8
OFFERED PURSUANT TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS
WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION
PURSUANT TO THIS SECTION.
13. A CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF THIS CHAP-
TER, AND MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
ONE OF SECTION THIRTEEN HUNDRED FIFTY-FIVE OF THIS CHAPTER, SHALL BE
ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN ACCORD-
ANCE WITH THEIR LICENSE UNDER ARTICLE THREE OF THIS CHAPTER. NOTWITH-
STANDING SUBPARAGRAPH (II) OF PARAGRAPH C OF SUBDIVISION TWO OF SECTION
ONE THOUSAND EIGHT OF THIS CHAPTER, A CASINO LOCATED IN THE CITY OF
SCHENECTADY SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE
RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF-
TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY
OTHER CASINO SHALL BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE
RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF-
TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED. ANY
PHYSICAL LOCATION WHERE PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IS
OFFERED BY A CASINO AND CONDUCTED BY A REGIONAL OFF-TRACK BETTING CORPO-
RATION IN ACCORDANCE WITH THIS SUBDIVISION SHALL BE DEEMED TO BE A
BRANCH LOCATION OF THE REGIONAL OFF-TRACK BETTING CORPORATION IN ACCORD-
ANCE WITH SECTION ONE THOUSAND EIGHT OF THIS CHAPTER. MOBILE SPORTS
BETTING KIOSKS LOCATED ON THE PREMISES OF AFFILIATES IN ACCORDANCE WITH
PARAGRAPH (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED SIXTY-SEV-
EN-A OF THIS CHAPTER SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL WAGERING
ON HORSE RACING EVENTS.
14. A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO RESTRICT, LIMIT, OR EXCLUDE WAGERING ON ITS SPORTING EVENTS BY
PROVIDING NOTICE IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE.
UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST IN
GOOD FAITH, SEEK INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE
COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH
SPORTS WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS GOVERN-
ING BODY SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER
PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH THE REGU-
LATIONS OF THE COMMISSION. OFFERING OR TAKING WAGERS CONTRARY TO
RESTRICTIONS PROMULGATED BY THE COMMISSION IS A VIOLATION OF THIS
SECTION. IN THE EVENT THAT THE REQUEST IS IN RELATION TO AN EMERGENCY
SITUATION, THE EXECUTIVE DIRECTOR OF THE COMMISSION MAY TEMPORARILY
PROHIBIT THE SPECIFIC WAGER IN QUESTION UNTIL THE COMMISSION HAS THE
OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE.
15. (A) THE COMMISSION SHALL DESIGNATE THE DIVISION OF THE STATE
POLICE TO HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE
COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
(B) THE COMMISSION AND CASINOS SHALL COOPERATE WITH INVESTIGATIONS
CONDUCTED BY SPORTS GOVERNING BODIES OR LAW ENFORCEMENT AGENCIES,
INCLUDING BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF
ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES RELATING TO
PERSONS PLACING WAGERS; PROVIDED, HOWEVER, THAT THE CASINO BE REQUIRED
TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS
BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO
BY THE COMMISSION OR A LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT
JURISDICTION.
(C) CASINOS SHALL IMMEDIATELY REPORT TO THE COMMISSION ANY INFORMATION
RELATING TO:
S. 7900--A 9
(I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO
IN CONNECTION WITH ITS OPERATIONS;
(II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
(III) ANY POTENTIAL BREACH OF THE RELEVANT SPORTS GOVERNING BODY'S
INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
(IV) ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING
EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING;
AND
(V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS
DERIVED FROM ILLEGAL ACTIVITY, WAGERS TO CONCEAL OR LAUNDER FUNDS
DERIVED FROM ILLEGAL ACTIVITY, USING AGENTS TO PLACE WAGERS, USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
THE COMMISSION SHALL ALSO IMMEDIATELY REPORT INFORMATION RELATING TO
CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
(D) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
(E) THE COMMISSION, BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES THEREOF TO ENABLE THE SHARING OF INFORMATION TO FACILITATE
INTEGRITY MONITORING AND THE CONDUCT OF INVESTIGATIONS INTO ABNORMAL
BETTING ACTIVITY, MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A
BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL
GAIN.
16. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY DEEM APPROPRIATE
FOR DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS
WAGERS.
(B) CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGERING
INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT SPORTS GOVERNING BODY
POSSESSES A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE
FOR PURCHASE BY THE CASINOS ON COMMERCIALLY REASONABLE TERMS AS DETER-
MINED BY THE COMMISSION.
(C) A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA IN SPORTS WAGERING
INVOLVING SPECIFIC TIER THREE SPORTS WAGERS BY PROVIDING NOTICE IN THE
FORM AND MANNER AS THE COMMISSION MAY REQUIRE. UPON RECEIVING SUCH
NOTICE, THE COMMISSION SHALL REVIEW THE REQUEST, SEEK INPUT FROM THE
CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS IT APPROPRIATE,
PROMULGATE REGULATIONS TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA ON
SPORTS WAGERING INVOLVING SUCH TIER THREE SPORTS WAGERS IF THE RELEVANT
SPORTS GOVERNING BODY POSSESSES A FEED OF OFFICIAL LEAGUE DATA, AND
MAKES SUCH FEED AVAILABLE FOR PURCHASE BY THE CASINOS ON COMMERCIALLY
REASONABLE TERMS AS DETERMINED BY THE COMMISSION.
(D) WHEN DETERMINING WHETHER OR NOT A SUPPLIER OF OFFICIAL LEAGUE DATA
IS OFFERING COMMERCIALLY REASONABLE TERMS, THE COMMISSION SHALL CONSIDER
THE AMOUNT CHARGED BY THE SUPPLIER OF OFFICIAL LEAGUE DATA TO GAMING
OPERATORS IN OTHER JURISDICTIONS. THIS INFORMATION SHALL BE PROVIDED TO
THE COMMISSION BY THE SUPPLIER OF OFFICIAL LEAGUE DATA UPON REQUEST OF
THE COMMISSION. ANY ENTITY PROVIDING DATA TO A CASINO FOR THE PURPOSE OF
TIER TWO SPORTS WAGERS, OTHER THAN A SUPPLIER OF OFFICIAL LEAGUE DATA,
SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE AND SUCH LICENSE
SHALL BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE
S. 7900--A 10
HUNDRED TWENTY-SEVEN OF THIS ARTICLE AND IN ACCORDANCE WITH THE REGU-
LATIONS PROMULGATED BY THE COMMISSION.
(E) NO CASINO SHALL ENTER INTO AN AGREEMENT WITH A SPORTS GOVERNING
BODY OR AN ENTITY EXPRESSLY AUTHORIZED TO DISTRIBUTE OFFICIAL LEAGUE
DATA TO BE THE EXCLUSIVE RECIPIENT OF THEIR OFFICIAL LEAGUE DATA.
(F) IF AN ERROR OCCURS IN THE PAYMENT OF A SPORTS WAGER THE CASINO
SHALL BEAR THE COST OF ANY OVERPAYMENT. IN THE EVENT OF UNDER-PAYMENT OR
NON-PAYMENT OF A WAGER ALLEGED BY AN AUTHORIZED SPORTS BETTOR TO BE A
WINNING WAGER:
(I) THE CASINO SHALL ACCEPT TIMELY CLAIMS, PAY EACH CLAIM, OR A PART
THEREOF, WHICH IT DETERMINES TO BE VALID; NOTICE SHALL BE GIVEN TO ANY
CLAIMANT WHOSE CLAIM IS REJECTED.
(II) ANY AUTHORIZED SPORTS BETTOR WHOSE CLAIM IS REJECTED BY THE CASI-
NO MAY, WITHIN FIFTEEN DAYS FROM THE DATE NOTICE OF REJECTION IS
RECEIVED, REQUEST THE COMMISSION TO DETERMINE THE VALIDITY OF THE CLAIM.
THE FAILURE TO FILE SUCH A REQUEST WITH THE BOARD WITHIN FIFTEEN DAYS
SHALL CONSTITUTE A WAIVER OF THE CLAIM, PROVIDED THE CLAIMANT HAS
RECEIVED NOTICE OF A RIGHT TO APPEAL TO THE COMMISSION.
(III) A HEARING BEFORE THE COMMISSION SHALL BE HELD ON EACH CLAIM
TIMELY FILED, AND THE COMMISSION MAY DETERMINE A CLAIM TO BE VALID, IN
WHOLE OR IN PART, AND THEREAFTER ORDER THE CASINO TO MAKE PAYMENT
ACCORDINGLY. IN DETERMINING WHETHER A CLAIM IS VALID THE COMMISSION
SHALL UTILIZE THE STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA RELATING
TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT SPORTS
GOVERNING BODY. ANY SUCH DETERMINATION SHALL BE FINAL AND BINDING ON
ALL PARTIES.
(IV) CLAIMS NOT FILED WITH THE CASINO WITHIN THIRTY DAYS INCLUSIVE OF
THE DATE ON WHICH THE UNDER-PAYMENT WAS DISCOVERED SHALL BE DEEMED
WAIVED, AND THE CASINO SHALL HAVE NO FURTHER LIABILITY THEREFOR.
17. (A) CASINOS SHALL MAINTAIN RECORDS OF ALL BETS AND WAGERS PLACED,
INCLUDING PERSONALLY IDENTIFIABLE INFORMATION OF THE MOBILE SPORTS
WAGERING BETTOR, AMOUNT AND TYPE OF BET, TIME THE BET WAS PLACED,
LOCATION OF THE BET, INCLUDING IP ADDRESS IF APPLICABLE, THE OUTCOME OF
THE BET, RECORDS OF ABNORMAL BETTING ACTIVITY, AND VIDEO CAMERA
RECORDINGS IN THE CASE OF IN-PERSON WAGERS FOR AT LEAST THREE YEARS
AFTER THE SPORTING EVENT OCCURS AND MAKE SUCH DATA AVAILABLE FOR
INSPECTION UPON REQUEST OF THE COMMISSION OR AS REQUIRED BY COURT ORDER.
(B) IF A SPORTS GOVERNING BODY HAS NOTIFIED THE COMMISSION THAT REAL-
TIME INFORMATION SHARING FOR WAGERS PLACED ON SPORTING EVENTS IS NECES-
SARY AND DESIRABLE, CASINOS SHALL SHARE IN REAL TIME, AT THE ACCOUNT-
LEVEL, AND IN PSEUDONYMOUS FORM, THE INFORMATION REQUIRED TO BE RETAINED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION (OTHER THAN VIDEO FILES)
WITH THE COMMISSION, AND THE COMMISSION SHALL SHARE IN REAL TIME THE
INFORMATION WITH THE SPORTS GOVERNING BODY OR ITS DESIGNEE WITH RESPECT
TO WAGERS ON ITS SPORTING EVENTS.
(C) THE COMMISSION SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF INFOR-
MATION.
18. A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
19. SPORTS WAGERING CONDUCTED PURSUANT TO THE PROVISIONS OF THIS
SECTION IS HEREBY AUTHORIZED.
20. THE CONDUCT OF SPORTS WAGERING IN VIOLATION OF THIS SECTION IS
PROHIBITED.
21. ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY VIOLATES ANY PROCEDURE IMPLEMENTED UNDER THIS SECTION, OR
S. 7900--A 11
SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH
VIOLATION, NOT TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING
OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
§ 2. The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 1367-a to read as follows:
§ 1367-A. MOBILE SPORTS WAGERING. 1. AS USED IN THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "AFFILIATE" MEANS ANY OFF-TRACK BETTING CORPORATION, FRANCHISED
CORPORATION, OR RACE TRACK LICENSED PURSUANT TO THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW, OR AN OPERATOR OF VIDEO LOTTERY GAMING AT
AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE
TAX LAW, WHICH HAS A MOBILE SPORTS WAGERING AGREEMENT WITH A CASINO
PURSUANT TO THIS SECTION;
(B) "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A
LICENSED GAMING FACILITY AUTHORIZED TO OPERATE A SPORTS POOL AND IS
APPROVED BY THE COMMISSION TO OPERATE A SPORTS POOL ON BEHALF OF SUCH
LICENSED GAMING FACILITY;
(C) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY
PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB-
ITED SPORTS BETTOR, THAT PARTICIPATES IN SPORTS WAGERING OFFERED BY A
CASINO. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH
MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN
WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE;
(D) "CASINO" MEANS A LICENSED GAMING FACILITY AT WHICH GAMBLING IS
CONDUCTED PURSUANT TO THE PROVISIONS OF THIS ARTICLE OR THE AGENT OF
SUCH LICENSED GAMING FACILITY;
(E) "COLLEGIATE SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC
EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR
PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES BEYOND THE SECONDARY
LEVEL;
(F) "COMMISSION" MEANS THE COMMISSION ESTABLISHED PURSUANT TO SECTION
ONE HUNDRED TWO OF THIS CHAPTER;
(G) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC
EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR
PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES AT THE SECONDARY
LEVEL;
(H) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
IN NEW YORK STATE SUBJECT TO THE PROVISIONS OF ARTICLES TWO, THREE,
FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR
ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
(I) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
(J) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY
ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER;
(K) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT-
FORM INCLUDING AN AGENT;
(L) "PROFESSIONAL SPORT OR ATHLETIC EVENT" MEANS AN EVENT AT WHICH TWO
OR MORE PERSONS PARTICIPATE IN SPORTS OR ATHLETIC EVENTS AND RECEIVE
COMPENSATION IN EXCESS OF ACTUAL EXPENSES FOR THEIR PARTICIPATION IN
SUCH EVENT;
(M) "PROHIBITED SPORTS BETTOR" MEANS:
S. 7900--A 12
(I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
(II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
(III) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT THE CASINO THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
(IV) ANY CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR
EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF
SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSERVATION OF
SPORTS WAGERING, OR THE PROCESSING OF SPORTS WAGERING CLAIMS OR
PAYMENTS;
(V) ANY PERSON SUBJECT TO A CONTRACT WITH THE COMMISSION IF SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;
(VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE
FOREGOING PERSONS AT THE SAME CASINO WHERE THE FOREGOING PERSON IS
PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
(VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA-
TION ABOUT SPORTS WAGERING;
(VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE IF THE SPORTS WAGER IS
BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS
GOVERNING BODY;
(IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE
UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR OFFICIAL OF A SPORTS
GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
(X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
(XI) ANY MINOR;
(N) "PROHIBITED SPORTS EVENT" MEANS ANY HIGH SCHOOL SPORT OR ATHLETIC
EVENT;
(O) "SPORTS EVENT" MEANS ANY PROFESSIONAL SPORT OR ATHLETIC EVENT AND
ANY COLLEGIATE SPORT OR ATHLETIC EVENT, EXCEPT A PROHIBITED SPORTS
EVENTS OR A HORSE RACING EVENT;
(P) "SPORTS GOVERNING BODY" MEANS THE ORGANIZATION THAT PRESCRIBES
FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A SPORTING
EVENT AND PARTICIPANTS THEREIN;
(Q) "SPORTS POOL" MEANS THE BUSINESS OF ACCEPTING WAGERS ON ANY SPORTS
EVENT BY ANY SYSTEM OR METHOD OF WAGERING;
(R) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN
AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGERING
OFFERED BY SUCH CASINO;
(S) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON
COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
THE TERM "SPORTS WAGERING" SHALL INCLUDE, BUT IS NOT LIMITED TO,
SINGLE-GAME BETS, TEASER BETS, PARLAYS, OVER-UNDER BETS, MONEYLINE,
POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION
BETS AND STRAIGHT BETS; AND
(T) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS
S. 7900--A 13
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE; OR (II) IN THE CASE OF
EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE COMMISSION ON WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY
PROMOTIONAL GAMING CREDITS SHALL NOT BE TAXABLE FOR THE PURPOSES OF
DETERMINING SPORTS WAGERING GROSS REVENUE.
2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY USE MULTIPLE MOBILE SPORTS WAGERING PLATFORMS PROVIDED THAT EACH
PLATFORM HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO MAY
CONTRACT WITH ONE OR MORE INDEPENDENT OPERATORS TO PROVIDE ITS MOBILE
SPORTS WAGERING PLATFORMS, BUT SHALL NOT CONTRACT WITH MORE THAN THREE
INDEPENDENT OPERATORS.
(B) REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
(C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS REGISTERED TO
OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION
ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
(D) THE COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT THE
PROVISIONS OF THIS SECTION, INCLUDING THE DEVELOPMENT OF THE INITIAL
FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE
FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK
STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE PROTECTIONS
WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
3. IN THE EVENT THAT A CASINO CONTRACTS WITH ONE OR MORE INDEPENDENT
OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING PLATFORMS, EACH INDE-
PENDENT ENTITY SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE
PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE SHALL BE
ISSUED PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED
TWENTY-SEVEN OF THIS ARTICLE AND IN ACCORDANCE WITH THE REGULATIONS
PROMULGATED BY THE COMMISSION.
4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
(I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR SHOULD
HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR
PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;
(II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED WITHIN
THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
(III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
INCLUDES:
(1) IF AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED
AN ACCOUNT, OR ACCESSED THE ACCOUNT OF ANOTHER, SUCH OPERATOR SHALL
PROMPTLY, WITHIN NO MORE THAN TWO BUSINESS DAYS, REFUND ANY DEPOSIT
RECEIVED FROM THE MINOR, WHETHER OR NOT THE MINOR HAS ENGAGED IN OR
ATTEMPTED TO ENGAGE IN SPORTS WAGERING; PROVIDED, HOWEVER, THAT ANY
REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
(2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES TO ALLOW
PARENTS OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER-
ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE A TOLL-FREE NUMBER TO
CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
S. 7900--A 14
(3) EACH OPERATOR SHALL TAKE APPROPRIATE STEPS TO CONFIRM THAT AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;
(IV) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER-
TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND CONSPICU-
OUS STATEMENTS THAT ARE NOT INACCURATE OR MISLEADING CONCERNING THE
CHANCES OF WINNING AND THE NUMBER OF WINNERS;
(V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS
WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING
IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
(VI) PERMIT ANY AUTHORIZED SPORTS BETTOR TO PERMANENTLY CLOSE AN
ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY
SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON;
(VII) OFFER INTRODUCTORY PROCEDURES FOR AUTHORIZED SPORTS BETTORS,
THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE OF SUCH OPERATOR
PLATFORM, THAT EXPLAIN SPORTS WAGERING;
(VIII) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY
OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS;
(IX) OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT
HISTORY AND ACCOUNT DETAILS;
(X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT
AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH OPERATOR AND OTHERWISE
PROTECTED FROM CORPORATE INSOLVENCY, FINANCIAL RISK, OR CRIMINAL OR
CIVIL ACTIONS AGAINST SUCH OPERATOR;
(XI) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERN-
ING ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL-
FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING FURTHER
INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND
(XII) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS
EVENT.
(B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
(C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
(D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
(E) ADVERTISEMENTS FOR CONTESTS AND PRIZES OFFERED BY AN OPERATOR
SHALL NOT TARGET PROHIBITED SPORTS BETTORS, MINORS, OR SELF-EXCLUDED
PERSONS.
(F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING PROGRAMS FOR ANY CONTEST AND ENSURE THAT MEASURES ARE IN PLACE TO
DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT CHEATING,
INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES, INCLUDING USE OF
SOFTWARE PROGRAMS THAT SUBMIT SPORTS WAGERS UNLESS OTHERWISE APPROVED BY
THE COMMISSION.
(G) OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE
MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A COMPLAINT BY
AN AUTHORIZED SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE
SHALL BE GIVEN BY SUCH OPERATOR TO SUCH BETTOR FILING THE COMPLAINT
WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL BE GIVEN BY SUCH
OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
(H) OPERATORS SHALL MAINTAIN RECORDS OF ALL ACCOUNTS BELONGING TO
AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.
S. 7900--A 15
(I) THE SERVER OR OTHER EQUIPMENT WHICH IS USED BY AN OPERATOR TO
ACCEPT MOBILE SPORTS WAGERING SHALL BE LOCATED IN THE LICENSED GAMING
FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.
5. (A) SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO ALLOW FOR AUTHORIZED
BETTORS TO SIGN UP TO CREATE AND FUND ACCOUNTS ON THEIR MOBILE SPORTS
WAGERING PLATFORM OR PLATFORMS.
(B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF
A CASINO, OR THROUGH INTERNET WEBSITES ACCESSED VIA A MOBILE DEVICE OR
COMPUTER, OR MOBILE DEVICE APPLICATIONS.
(C) AUTHORIZED SPORTS BETTORS MAY DEPOSIT AND WITHDRAW FUNDS IN THEIR
ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN
AFFILIATE OF A CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY
OTHER MEANS APPROVED BY THE COMMISSION.
(D) IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION,
CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE
MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED AND MAINTAINED
BY THE CASINO, AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE
PREMISES OF THE AFFILIATE.
§ 3. Section 104 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 24 to read as follows:
24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE.
§ 4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 237 of the laws of 2016, is
amended to read as follows:
15. "Prohibited sports event" shall mean any [collegiate sport or
athletic event, any] high school sport or athletic event or any horse
racing event.
§ 5. Severability clause. If any provision of this act or application
thereof shall for any reason be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder of the act, but shall be confined in its opera-
tion to the provision thereof directly involved in the controversy in
which the judgment shall have been rendered.
§ 6. This act shall take effect on the same date and in the same
manner as section 1367 of the racing, pari-mutuel wagering and breeding
law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
of 2013, takes effect.
