S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9198
 
                           I N  A S S E M B L Y
 
                             February 14, 2024
                                ___________
 
 Introduced  by M. of A. PRETLOW -- read once and referred to the Commit-
   tee on Racing and Wagering
 
 AN ACT to amend the racing, pari-mutuel wagering and  breeding  law,  in
   relation  to interactive gaming; and to amend the tax law, in relation
   to interactive lottery gaming
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  1367-a  of  the racing, pari-mutuel wagering and
 breeding law is amended by  adding  a  new  subdivision  8  to  read  as
 follows:
   8.  NO  ADDITIONAL  MOBILE  SPORTS  WAGERING  LICENSES SHALL BE ISSUED
 PURSUANT TO THIS SECTION SUBSEQUENT TO  THE  CONVERSION  OF  ANY  MOBILE
 SPORTS  WAGERING  PLATFORM  PROVIDER  LICENSE  TO  AN INTERACTIVE GAMING
 LICENSE, AS SET FORTH IN SUBDIVISION  TWO  OF  SECTION  FIFTEEN  HUNDRED
 THREE OF THIS CHAPTER.
   §  2. Section 104 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 25 to read as follows:
   25. TO REGULATE INTERACTIVE GAMING IN NEW YORK STATE.
   § 3. Section 1311 of the racing, pari-mutuel wagering and breeding law
 is amended by adding a new subdivision 4 to read as follows:
   4. AS A CONDITION FOR CONTINUED LICENSURE, LICENSEES SHALL BE REQUIRED
 TO HOUSE UPON THE PHYSICAL PREMISES OF THE LICENSED GAMING FACILITY,  AN
 INTERACTIVE GAMING LICENSEE'S SERVER OR OTHER EQUIPMENT USED FOR RECEIV-
 ING  INTERACTIVE GAMING WAGERS PURSUANT TO ARTICLE FIFTEEN OF THIS CHAP-
 TER; PROVIDED HOWEVER, THAT SUCH  LICENSEE  SHALL  BE  ENTITLED  TO  THE
 REASONABLE  AND ACTUAL COSTS, AS DETERMINED BY THE GAMING COMMISSION, OF
 PHYSICALLY HOUSING AND SECURING SUCH SERVER OR OTHER EQUIPMENT USED  FOR
 INTERACTIVE  GAMING  AT  SUCH  LICENSEE'S LICENSED GAMING FACILITY. SUCH
 REASONABLE AND ACTUAL COSTS OF  PHYSICALLY  HOUSING  AND  SECURING  SUCH
 SERVER OR OTHER EQUIPMENT USED FOR RECEIVING INTERACTIVE GAMING SHALL BE
 SPLIT EQUALLY AMONG ALL ENTITIES REQUIRING SUCH PHYSICAL HOUSING.
   §  4.  The racing, pari-mutuel wagering and breeding law is amended by
 adding a new article 15 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14042-04-4
              

 A. 9198                             2
 
                                ARTICLE 15
                            INTERACTIVE GAMING
 SECTION 1500. LEGISLATIVE INTENT AND FINDINGS.
         1501. DEFINITIONS.
         1502. ELIGIBILITY TO CONDUCT INTERACTIVE GAMING.
         1503. ENTITY LICENSING.
         1504. INDIVIDUAL, ENTERPRISE AND VENDOR LICENSING.
         1505. REQUIREMENTS  FOR  CONDUCT  AND  OPERATION  OF INTERACTIVE
                 GAMING.
         1506. TAXATION AND FEES.
         1507. RESPONSIBLE GAMING REQUIREMENTS.
   § 1500. LEGISLATIVE INTENT AND FINDINGS. SECTION NINE OF  ARTICLE  ONE
 OF  THE  NEW  YORK  STATE CONSTITUTION WAS RECENTLY AMENDED AND PROVIDES
 "CASINO GAMBLING AT NO MORE THAN  SEVEN  FACILITIES  AS  AUTHORIZED  AND
 PRESCRIBED  BY  THE LEGISLATURE SHALL HEREAFTER BE AUTHORIZED OR ALLOWED
 WITHIN THIS STATE". IT HAS BEEN, AND CONTINUES TO BE, THE SENSE  OF  THE
 LEGISLATURE  THAT  THIS  PROVISION  IS NOT CONTRAVENED BY A STATUTE THAT
 AUTHORIZES THE ACCEPTANCE OF A WAGER BY AN  INDIVIDUAL  LOCATED  IN  NEW
 YORK  STATE  WHO IS BETTING BY VIRTUAL OR ELECTRONIC MEANS AND THE WAGER
 IS ACCEPTED THROUGH EQUIPMENT LOCATED WITHIN A LICENSED GAMING FACILITY;
 PROVIDED THAT ANY SUCH WAGER MEETS OTHER SAFEGUARDS  ENSURING  THAT  THE
 PLAIN  TEXT  OF THIS PROVISION IS HONORED IN SUCH STRUCTURE. INTERACTIVE
 GAMING IS NOW LEGAL IN SEVEN STATES, INCLUDING THE BORDERING  STATES  OF
 NEW JERSEY, PENNSYLVANIA, AND CONNECTICUT, WHILE IT IS PERMITTED ONLY IN
 PERSON  IN  NEW  YORK  AT  FOUR UPSTATE COMMERCIAL GAMING FACILITIES AND
 NATIVE AMERICAN CLASS III  GAMING  FACILITIES.  THE  LEGISLATURE  HEREBY
 FINDS AND DECLARES THAT AN INTERACTIVE GAMING WAGER THAT IS MADE THROUGH
 VIRTUAL OR ELECTRONIC MEANS FROM A LOCATION WITHIN NEW YORK STATE AND IS
 TRANSMITTED  TO  AND  ACCEPTED  BY  ELECTRONIC  EQUIPMENT  LOCATED  AT A
 LICENSED GAMING FACILITY, INCLUDING WITHOUT LIMITATION, A COMPUTER SERV-
 ER LOCATED AT SUCH LICENSED GAMING FACILITY, IS A  WAGER  MADE  AT  SUCH
 LICENSED  GAMING  FACILITY,  NOTWITHSTANDING ANY PROVISIONS OF THE PENAL
 LAW TO THE CONTRARY.
   § 1501. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE,  THE  FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "AUTHORIZED INTERACTIVE GAME" MEANS: (A) ANY INTERNET-BASED VERSION
 OR  SUBSTANTIAL  EQUIVALENT  OF  A TABLE GAME, SLOT MACHINE CONSTITUTING
 SPINNING REELS, POKER TOURNAMENT, OR ANY OTHER  GAME  AS  SET  FORTH  IN
 SUBDIVISION  FOUR,  NINETEEN,  THIRTY-EIGHT, THIRTY-NINE OR FORTY-ONE OF
 SECTION THIRTEEN HUNDRED ONE OF THIS CHAPTER AND APPROVED BY THE COMMIS-
 SION, INCLUDING, BUT NOT LIMITED TO LIVE-DEALER GAMES IN WHICH  INDIVID-
 UALS  WAGER  MONEY OR SOMETHING OF MONETARY VALUE, AND WHICH IS ACCESSED
 BY A COMPUTER OR MOBILE DEVICE WHICH IS CONNECTED TO  THE  INTERNET.  AN
 AUTHORIZED  INTERACTIVE  GAME  MAY  INCLUDE  GAMING TOURNAMENTS IN WHICH
 PLAYERS COMPETE AGAINST ONE ANOTHER IN ONE OR MORE OF THE GAMES  AUTHOR-
 IZED HEREIN OR BY THE COMMISSION OR IN APPROVED VARIATIONS OR COMPOSITES
 THEREOF  IF  SUCH  TOURNAMENTS  ARE AUTHORIZED; OR (B) ANY VIDEO LOTTERY
 TERMINAL GAMES  CURRENTLY  AUTHORIZED  BY  THE  COMMISSION  PURSUANT  TO
 SECTION ONE THOUSAND SIX HUNDRED SEVENTEEN-A OF THE TAX LAW.
   2.  "AUTHORIZED  PARTICIPANT"  MEANS  AN  INDIVIDUAL WHO IS PHYSICALLY
 PRESENT IN THE STATE OF NEW YORK  WHEN  PLACING  AN  INTERACTIVE  GAMING
 WAGER,  WHO  IS  AT  LEAST TWENTY-ONE YEARS OF AGE, WHO IS AUTHORIZED TO
 PARTICIPATE IN GAMING PURSUANT TO ARTICLE THIRTEEN OF THIS CHAPTER,  AND
 WHO  PARTICIPATES  IN  INTERACTIVE  GAMING  OFFERED  BY  A CASINO, VIDEO
 LOTTERY TERMINAL FACILITY OR OPERATOR.  ALL  INTERACTIVE  GAMING  WAGERS
 PLACED  IN  ACCORDANCE  WITH  THIS ARTICLE SHALL BE CONSIDERED PLACED OR
 A. 9198                             3
 
 OTHERWISE MADE WHEN RECEIVED BY THE CASINO OR OPERATOR AT  THE  LICENSED
 GAMING  FACILITY,  REGARDLESS  OF  THE AUTHORIZED PARTICIPANT'S PHYSICAL
 LOCATION AT THE TIME SUCH WAGER IS INITIATED. THE  INTERMEDIATE  ROUTING
 OF  ELECTRONIC  DATA IN CONNECTION WITH MOBILE WAGERING SHALL NOT DETER-
 MINE THE LOCATION OR LOCATIONS IN WHICH A WAGER IS INITIATED,  RECEIVED,
 OR OTHERWISE MADE.
   3. "COMMISSION" MEANS THE NEW YORK STATE GAMING COMMISSION.
   4.  "COMPETITIVE  EVENT"  MEANS ANY EVENT IN WHICH TWO OR MORE CONTES-
 TANTS ARE COMPETING IN AN EVENT IN WHICH A WINNER IS DETERMINED  AT  THE
 CONCLUSION OF SUCH EVENT.
   5.  "GAMING  FACILITY"  MEANS  THE  PREMISES  APPROVED  UNDER A GAMING
 LICENSE, WHICH INCLUDES A GAMING AREA AND ANY OTHER NON-GAMING STRUCTURE
 RELATED TO THE GAMING AREA AND MAY INCLUDE, BUT SHALL NOT BE LIMITED TO,
 HOTELS, RESTAURANTS OR OTHER AMENITIES.
   6. "INTERACTIVE GAMING" MEANS WAGERING ON AUTHORIZED CASINO  OR  VIDEO
 LOTTERY  TERMINAL  GAMES  ONLINE  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; PROVIDED, HOWEVER,  SUCH  TERM
 SHALL NOT INCLUDE THE INTERNET LOTTERY PROGRAM AS AUTHORIZED PURSUANT TO
 SECTION SIXTEEN HUNDRED SEVENTEEN-B OF THE TAX LAW.
   7.  "INTERACTIVE  GAMING  LICENSEE" MEANS A QUALIFYING ENTITY THAT HAS
 BEEN AUTHORIZED BY THE NEW  YORK  STATE  GAMING  COMMISSION  TO  CONDUCT
 INTERACTIVE GAMING.
   8.  "INTERACTIVE  GROSS  GAMING REVENUE" MEANS THE AMOUNT EQUAL TO THE
 TOTAL OF ALL INTERACTIVE GAMING WAGERS THAT AN INTERACTIVE GAMING LICEN-
 SEE COLLECTS FROM ALL AUTHORIZED PARTICIPANTS, LESS  THE  TOTAL  OF  ALL
 SUMS  PAID  OUT  AS  WINNINGS  TO ALL AUTHORIZED PARTICIPANTS, PROVIDED,
 HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS  TO  AUTHORIZED
 PARTICIPANTS  SHALL  NOT  INCLUDE THE FOLLOWING: (A) THE CASH EQUIVALENT
 VALUE OF ANY MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE;  AND  (B)
 THE  VALUE  OF  ALL  BONUSES OR PROMOTIONS PROVIDED, IN THE FIRST TWELVE
 MONTHS AFTER  AN  INTERACTIVE  GAMING  LICENSEE  BEGINS  OPERATIONS,  TO
 AUTHORIZED PARTICIPANTS AS AN INCENTIVE TO PLACE OR AS A RESULT OF THEIR
 HAVING  PLACED  INTERACTIVE GAMING WAGERS, NOT TO EXCEED 1.75 PERCENT OF
 THE TOTAL AMOUNT OF ALL INTERACTIVE GAMING WAGERS PLACED WITH THE INTER-
 ACTIVE GAMING LICENSEE DURING EACH MONTH.
   9. "INTERACTIVE GAMING WAGER" MEANS CASH OR CASH  EQUIVALENT  THAT  IS
 PAID BY AN AUTHORIZED PARTICIPANT TO A CASINO OR OPERATOR TO PARTICIPATE
 IN  INTERACTIVE  GAMING  OFFERED  BY SUCH CASINO, VIDEO LOTTERY TERMINAL
 FACILITY OR OPERATOR. ANY WAGER THROUGH ELECTRONIC  COMMUNICATION  SHALL
 BE  DEEMED TO TAKE PLACE AT THE PHYSICAL LOCATION OF THE SERVER OR OTHER
 EQUIPMENT USED BY AN INTERACTIVE GAMING LICENSEE TO  ACCEPT  INTERACTIVE
 GAMING  WAGERING,  REGARDLESS  OF  THE AUTHORIZED PARTICIPANT'S PHYSICAL
 LOCATION WITHIN THE STATE AT THE TIME SUCH WAGER IS INITIATED.
   10. "LIVE DEALER GAMES" MEANS AUTHORIZED  CASINO  GAMES  CONDUCTED  BY
 LIVE  STUDIO  DEALERS  OR OTHER PHYSICAL GAMING EQUIPMENT, SUCH AS AUTO-
 MATED ROULETTE WHEELS, BALL BLOWERS OR GAMING DEVICES,  OR  BOTH,  IN  A
 LIVE  GAME  ENVIRONMENT  IN  WHICH  THE AUTHORIZED PARTICIPANTS HAVE THE
 ABILITY TO PARTICIPATE IN  GAME  PLAY  AND  COMMUNICATE  GAME  DECISIONS
 THROUGH  AN AUTHORIZED INTERACTIVE GAMING WAGERING PLATFORM. LIVE DEALER
 GAMES INCLUDE, BUT ARE NOT LIMITED TO, LIVE CARD GAMES, LIVE TABLE GAMES
 AND OTHER LIVE AUTHORIZED CASINO GAMES.
   11. "LIVE GAMING STUDIO" MEANS A PHYSICAL LOCATION IN NEW  YORK  STATE
 THAT  UTILIZES  LIVE  VIDEO  STREAMING  TECHNOLOGY TO PROVIDE AUTHORIZED
 A. 9198                             4
 
 CASINO GAMES TO  A  PLAYER'S  INTERACTIVE  GAMING  DEVICE  OR  MULTI-USE
 COMPUTING DEVICE.
   12. "LIVE STUDIO DEALER" MEANS NATURAL PERSONS, THAT LEAD TABLE GAMES,
 INCLUDING  BLACKJACK,  CRAPS, KENO, POKER, ROULETTE AND OTHER AUTHORIZED
 CASINO GAMES WHILE ASSISTING AUTHORIZED PARTICIPANTS  WITH  GAME-RELATED
 NEEDS,  THAT  DISTRIBUTE  CARDS,  DICE AND OTHER EQUIPMENT TO AUTHORIZED
 PARTICIPANTS ACCORDING TO THE TABLE AND OTHER AUTHORIZED GAMES, AND THAT
 MONITOR GAME PACE AND PLAY.
   13. "PROHIBITED PARTICIPANT" MEANS: (A) ANY OFFICER OR EMPLOYEE OF THE
 COMMISSION; (B) ANY PRINCIPAL OR KEY EMPLOYEE OF A  CASINO,  INTERACTIVE
 GAMING  LICENSEE,  AND ITS AFFILIATES, EXCEPT AS MAY BE PERMITTED BY THE
 COMMISSION; (C) ANY CASINO GAMING OR NON-GAMING EMPLOYEE AT  THE  CASINO
 THAT  EMPLOYS  SUCH  PERSON AND ANY GAMING OR NON-GAMING EMPLOYEE OF THE
 INTERACTIVE GAMING LICENSEE THAT EMPLOYS SUCH PERSON; (D)  ANY  CONTRAC-
 TOR,  SUBCONTRACTOR, OR CONSULTANT, OR OFFICER OR EMPLOYEE OF A CONTRAC-
 TOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO OR AN INTERACTIVE  GAMING
 LICENSEE  IF SUCH PERSON IS DIRECTLY INVOLVED IN THE OPERATION OR OBSER-
 VATION OF INTERACTIVE GAMING, OR THE PROCESSING  OF  INTERACTIVE  GAMING
 CLAIMS  OR  PAYMENTS;  (E)  ANY  PERSON  SUBJECT  TO A CONTRACT WITH THE
 COMMISSION IF SUCH CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON
 FROM PARTICIPATING IN INTERACTIVE GAMING; (F) ANY SPOUSE, CHILD, SIBLING
 OR PARENT RESIDING IN THE PRINCIPAL PLACE OF ABODE OF ANY OF THE FOREGO-
 ING PERSONS AT THE SAME CASINO OR INTERACTIVE GAMING LICENSEE WHERE  THE
 FOREGOING PERSON IS PROHIBITED FROM PARTICIPATING IN INTERACTIVE GAMING;
 (G)  ANY  INDIVIDUAL  PLACING  A  WAGER AS AN AGENT OR PROXY FOR ANOTHER
 PERSON KNOWN TO BE A PROHIBITED PARTICIPANT; OR  (H)  ANY  PERSON  UNDER
 TWENTY-ONE YEARS OF AGE.
   14. "QUALIFYING ENTITY" MEANS (A) A DESTINATION RESORT CASINO LICENSED
 UNDER  ARTICLE  THIRTEEN  OF  THIS CHAPTER; (B) A VIDEO LOTTERY TERMINAL
 FACILITY AUTHORIZED UNDER PARAGRAPHS ONE AND TWO  OF  SUBDIVISION  A  OF
 SECTION  SIXTEEN HUNDRED SEVENTEEN-A OF THE TAX LAW, OR AUTHORIZED UNDER
 PARAGRAPH FIVE OF SUBDIVISION A OF SECTION SIXTEEN  HUNDRED  SEVENTEEN-A
 OF THE TAX LAW; (C) A FEDERALLY RECOGNIZED INDIAN TRIBE THAT HAS ENTERED
 INTO  A TRIBAL-STATE GAMING COMPACT IN ACCORDANCE WITH THE INDIAN GAMING
 REGULATORY ACT THAT IS IN EFFECT AND HAS BEEN RATIFIED BY THE  STATE  OF
 NEW  YORK;  OR (D) A MOBILE SPORTS WAGERING PLATFORM PROVIDER, INCLUSIVE
 OF THE SPORTS WAGERING OPERATORS THE PLATFORM UTILIZES, SELECTED BY  THE
 COMMISSION  TO  CONDUCT  MOBILE  SPORTS WAGERING PURSUANT TO SUBDIVISION
 SEVEN OF SECTION THIRTEEN HUNDRED  SIXTY-SEVEN-A  OF  THIS  CHAPTER  AND
 SECTION  FIFTEEN  HUNDRED  THREE  OF  THIS ARTICLE. AN UNLICENSED ENTITY
 OFFERING GAMES OR CONTESTS THAT REQUIRE A LICENSE  OR  TEMPORARY  PERMIT
 ISSUED  BY  THE  COMMISSION  UNDER  ARTICLE THIRTEEN OR FOURTEEN OF THIS
 CHAPTER WITHIN THE PREVIOUS THREE YEARS OF THE EFFECTIVE  DATE  OF  THIS
 ARTICLE SHALL BE INELIGIBLE TO RECEIVE AN INTERACTIVE GAMING LICENSE.
   § 1502. ELIGIBILITY  TO CONDUCT INTERACTIVE GAMING. 1. ONLY A QUALIFY-
 ING ENTITY IN GOOD STANDING WITH THE COMMISSION OR,  IF  THE  QUALIFYING
 ENTITY IS AN INDIAN TRIBE, THOSE EXECUTIVE AGENCIES WITH WHICH IT OTHER-
 WISE  INTERACTS,  SHALL BE ELIGIBLE TO CONDUCT INTERACTIVE GAMING IN THE
 STATE.
   2. NO QUALIFYING ENTITY SHALL ADMINISTER, MANAGE,  OR  OTHERWISE  MAKE
 AVAILABLE  AN INTERACTIVE GAMING PLATFORM TO PERSONS LOCATED IN NEW YORK
 STATE UNLESS IT HAS PROVIDED  NOTICE  OF  INTENT  TO  OFFER  INTERACTIVE
 GAMING  TO  THE  COMMISSION  PURSUANT  TO THIS SECTION. ADDITIONALLY, NO
 ENTITY SHALL ADVERTISE OR PROMOTE AN UNLICENSED INTERACTIVE GAMING PLAT-
 FORM TO PERSONS LOCATED IN THE STATE OF NEW YORK.
 A. 9198                             5
 
   3. (A) PRIOR TO THE COMMISSION APPROVING AN INTERACTIVE GAMING  LICEN-
 SEE  UNDER  SECTION  FIFTEEN  HUNDRED  THREE OF THIS ARTICLE TO COMMENCE
 OPERATIONS, THE COMMISSION SHALL CONDUCT A  COMPREHENSIVE  INVESTIGATION
 OF THE APPLICANT TO DETERMINE WHETHER THE APPLICANT OR ANY OF ITS AFFIL-
 IATES, INCLUDING ENTITIES UNDER COMMON CONTROL, IS KNOWINGLY (I) ACCEPT-
 ING  REVENUE,  DIRECTLY  OR INDIRECTLY, DERIVED FROM ANY JURISDICTION ON
 THE "BLACK LIST OF MONEY LAUNDERING COUNTRIES"  AS  ESTABLISHED  BY  THE
 FINANCIAL  ACTION TASK FORCE (FATF), OR (II) ANY JURISDICTION DESIGNATED
 AS A STATE SPONSOR OF TERRORISM BY THE UNITED STATES; PROVIDED, HOWEVER,
 THAT THIS SHALL NOT AFFECT THE COMMISSION'S EXISTING STATUTORY AUTHORITY
 TO EVALUATE AN APPLICANT'S SUITABILITY.
   (B) THE COMMISSION SHALL NOT APPROVE AN INTERACTIVE GAMING LICENSEE TO
 COMMENCE OPERATIONS IF THE COMMISSION DETERMINES THAT THE  APPLICANT  OR
 ANY OF ITS AFFILIATES, INCLUDING ENTITIES UNDER COMMON CONTROL, IS KNOW-
 INGLY  (I)  ACCEPTING  REVENUE, DIRECTLY OR INDIRECTLY, DERIVED FROM ANY
 JURISDICTION ON THE "BLACK LIST OF MONEY LAUNDERING COUNTRIES" AS ESTAB-
 LISHED BY THE FINANCIAL ACTION TASK FORCE (FATF), OR (II) ANY  JURISDIC-
 TION DESIGNATED AS A STATE SPONSOR OF TERRORISM BY THE UNITED STATES.
   (C) IF AT ANY TIME DURING LICENSURE THE COMMISSION DETERMINES THAT THE
 LICENSEE  OR  ANY  OF  ITS  AFFILIATES,  INCLUDING ENTITIES UNDER COMMON
 CONTROL, IS KNOWINGLY ACCEPTING REVENUE, DIRECTLY OR INDIRECTLY, DERIVED
 FROM ANY JURISDICTION ON THE "BLACK LIST OF MONEY LAUNDERING  COUNTRIES"
 AS  ESTABLISHED BY THE FINANCIAL ACTION TASK FORCE (FATF), OR ANY JURIS-
 DICTION DESIGNATED AS A STATE SPONSOR OF TERRORISM BY THE UNITED STATES,
 THE COMMISSION SHALL IMPOSE A  PENALTY  OF  LICENSE  REVOCATION  IF  THE
 COMMISSION DETERMINES, AFTER NOTICE AND AN OPPORTUNITY FOR HEARING, THAT
 IT  WOULD  FURTHER THE PUBLIC INTEREST TO DISCONTINUE SUCH OPERATIONS OF
 THE INTERACTIVE GAMING LICENSEE.
   (D) PRIOR TO THE COMMISSION APPROVING AN INTERACTIVE  GAMING  LICENSEE
 UNDER  SECTION  FIFTEEN  HUNDRED THREE OF THIS ARTICLE TO COMMENCE OPER-
 ATIONS, AND UPON EACH LICENSE RENEWAL, THE COMMISSION SHALL REQUIRE EACH
 APPLICANT TO SUPPLY A DISCLOSURE OF ALL JURISDICTIONS WITHIN WHICH IT OR
 ITS AFFILIATES KNOWINGLY CONDUCT  OPERATIONS.    SUCH  DISCLOSURE  SHALL
 PERTAIN  TO ANY JURISDICTION WITHIN WHICH AN APPLICANT OR ITS AFFILIATES
 KNOWINGLY ACCEPTED REVENUE FOR THE SUPPLY OF INTERACTIVE GAMING, INCLUD-
 ING BUT NOT LIMITED TO ONLINE WAGERS OR OTHER CONSIDERATION  RELATED  TO
 ONLINE  WAGERING, DIRECTLY OR INDIRECTLY, WITHIN THE TWELVE-MONTH PERIOD
 PRECEDING THE LICENSE APPLICATION OR RENEWAL.  A  MATERIAL  MISREPRESEN-
 TATION  OR  OMISSION  ON  THE DISCLOSURE SHALL, IN THE DISCRETION OF THE
 COMMISSION, RESULT IN DENIAL OF AN APPLICATION FOR AN INTERACTIVE GAMING
 LICENSE AND/OR  DISCIPLINARY  ACTION,  INCLUDING,  BUT  NOT  LIMITED  TO
 SUSPENSION  OR  REVOCATION  OF  THE  LICENSE  AND PENALTIES FOR OFFICERS
 AND/OR BOARD MEMBERS OF THE LICENSEE; PROVIDED HOWEVER, THAT FOR  EXIST-
 ING  LICENSEES,  IF  THE COMMISSION DETERMINES THAT IT WOULD FURTHER THE
 PUBLIC INTEREST TO DISCONTINUE SUCH OPERATIONS OF THE INTERACTIVE GAMING
 LICENSEE AND ISSUE A PENALTY OF LICENSE REVOCATION, SUCH LICENSEE  SHALL
 BE ENTITLED TO A NOTICE AND OPPORTUNITY FOR HEARING.
   4.  LICENSES  AUTHORIZED UNDER THIS ARTICLE SHALL REMAIN IN EFFECT FOR
 UP TO TEN YEARS FROM THE DATE ISSUED. THE COMMISSION SHALL  ESTABLISH  A
 PROCESS FOR RENEWAL.
   5.  THE COMMISSION SHALL PUBLISH A LIST OF ALL LICENSEES AUTHORIZED TO
 OFFER INTERACTIVE GAMING IN NEW YORK STATE PURSUANT TO THIS  SECTION  ON
 THE COMMISSION'S WEBSITE FOR PUBLIC USE.
   6. EACH INTERACTIVE GAMING LICENSEE SHALL OFFER NO MORE THAN ONE INDI-
 VIDUALLY BRANDED SKIN.
 A. 9198                             6
 
   7.  NOTICES  OF INTENT TO OFFER INTERACTIVE GAMING SENT TO THE COMMIS-
 SION BY A QUALIFIED ENTITY SHALL BE ACTED UPON BY THE COMMISSION PROMPT-
 LY, WITH AUTHORIZATION TO COMMENCE OPERATIONS BEING ISSUED OR DENIED  NO
 MORE THAN NINETY DAYS AFTER RECEIPT OF THE PETITION.
   8.  TO  MEET  THE  DEFINITION  OF A QUALIFYING ENTITY, AN INDIAN TRIBE
 SHALL ENTER INTO AN AGREEMENT WITH THE COMMISSION WITH RESPECT TO INTER-
 ACTIVE GAMING:
   (A) TO FOLLOW THE REQUIREMENTS IMPOSED ON INTERACTIVE GAMING LICENSEES
 UNDER THIS SECTION AND SECTION THIRTEEN HUNDRED  SIXTY-SEVEN-A  OF  THIS
 CHAPTER WITH RESPECT TO THE INDIAN TRIBE'S INTERACTIVE GAMING; TO ADHERE
 TO  THE  REGULATIONS  PROMULGATED  BY  THE  COMMISSION  PURSUANT TO THIS
 SECTION WITH RESPECT TO INTERACTIVE GAMING, AND TO SUBMIT TO THE COMMIS-
 SION'S ENFORCEMENT OF THIS SECTION AND SECTION THIRTEEN  HUNDRED  SIXTY-
 SEVEN-A  OF  THIS  CHAPTER  AND  REGULATIONS PROMULGATED THEREUNDER WITH
 RESPECT TO INTERACTIVE GAMING, INCLUDING  BY  WAIVING  TRIBAL  SOVEREIGN
 IMMUNITY  FOR  THE SOLE AND LIMITED PURPOSE OF SUCH ENFORCEMENT. NOTHING
 HEREIN SHALL BE CONSTRUED AS REQUIRING AN INDIAN  TRIBE'S  AGREEMENT  TO
 ADHERE  TO  THE  REQUIREMENTS OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF
 THIS CHAPTER FOR GAMING CONDUCTED ON TRIBAL  LANDS  AS  A  CONDITION  OF
 OFFERING INTERACTIVE GAMING UNDER THIS SECTION;
   (B)  TO  WAIVE  THE INDIAN TRIBE'S EXCLUSIVE GEOGRAPHIC RIGHT TO OFFER
 AND CONDUCT INTERACTIVE GAMING, BUT NOT OTHERWISE;
   (C) TO REMIT PAYMENT TO THE STATE EQUAL TO TAX ON  INTERACTIVE  GAMING
 REVENUE  IMPOSED  UNDER SECTION FIFTEEN HUNDRED SIX OF THIS ARTICLE WITH
 RESPECT TO INTERACTIVE GAMING;
   (D) NOT TO OFFER OR TO CONDUCT MOBILE GAMING  OTHER  THAN  INTERACTIVE
 GAMING  PURSUANT  TO THIS SECTION UNLESS SUCH MOBILE GAMING IS OTHERWISE
 AUTHORIZED BY STATE OR FEDERAL LAW; AND
   (E) TO LOCATE THE SERVER OR OTHER EQUIPMENT USED BY THE  INDIAN  TRIBE
 OR  ITS  AGENT TO ACCEPT INTERACTIVE GAMING AT A CASINO THAT HAS APPLIED
 FOR AND IS ELIGIBLE TO REGISTER AS AN INTERACTIVE GAMING LICENSEE AND TO
 PAY THE ACTUAL COST OF HOSTING THE SERVER OR OTHER EQUIPMENT  AS  DETER-
 MINED BY THE COMMISSION.
   9.  NO  INTERACTIVE  GAMING  MAY BE CONDUCTED WITHIN AN INDIAN TRIBE'S
 EXCLUSIVE GEOGRAPHIC  AREA  UNLESS  SUCH  INDIAN  TRIBE  WITH  EXCLUSIVE
 GEOGRAPHIC  RIGHT  TO  THAT  AREA IS REGISTERED AS AN INTERACTIVE GAMING
 LICENSEE. INTERACTIVE GAMING LICENSEES SHALL USE GEO-LOCATION  AND  GEO-
 FENCING TECHNOLOGY TO ENSURE THAT INTERACTIVE GAMING IS NOT AVAILABLE TO
 PERSONS  WHO  ARE  PHYSICALLY  LOCATED  IN  AN  INDIAN TRIBE'S EXCLUSIVE
 GEOGRAPHIC AREA, UNLESS SUCH  INDIAN  TRIBE  WITH  EXCLUSIVE  GEOGRAPHIC
 RIGHT TO THAT AREA IS REGISTERED AS AN INTERACTIVE GAMING LICENSEE UNDER
 THIS SECTION.
   § 1503. ENTITY  LICENSING.  1.  A  QUALIFYING  ENTITY SHALL RECEIVE AN
 INTERACTIVE GAMING LICENSE  UPON  COMMISSION  APPROVAL.  AN  INTERACTIVE
 GAMING  LICENSEE  SHALL  NOT COMMENCE INTERACTIVE GAMING UNTIL SUCH TIME
 THAT THE COMMISSION HAS PROMULGATED RULES AND REGULATIONS  AND  PROVIDED
 APPROVAL  TO AN INTERACTIVE GAMING LICENSEE TO COMMENCE OPERATIONS. SUCH
 RULES AND REGULATIONS SHALL BE PROMULGATED, AND  APPROVAL  ISSUED  IN  A
 TIMELY  MANNER,  BUT NO LATER THAN ONE HUNDRED TWENTY DAYS FOLLOWING THE
 EFFECTIVE DATE OF THIS ARTICLE.
   2. A QUALIFYING ENTITY SHALL NOT INCUR  ANY  ADDITIONAL  LICENSING  OR
 ADMINISTRATIVE  FEES,  OR  ADDITIONAL  EXPENSES  RELATED  TO INTERACTIVE
 GAMING OUTSIDE OF THOSE SET FORTH IN THIS SECTION.
   3. AS A CONDITION OF LICENSING, THE COMMISSION SHALL REQUIRE THAT EACH
 CASINO, VIDEO  LOTTERY  TERMINAL  FACILITY  OR  OPERATOR  AUTHORIZED  TO
 CONDUCT  MOBILE  INTERACTIVE  GAMING  WAGERING PAY A ONE-TIME FEE OF TWO
 A. 9198                             7
 
 MILLION DOLLARS. AS A CONDITION OF APPROVAL OF ANY INDEPENDENT  CONTRAC-
 TOR TO PROVIDE AN OPERATOR'S MOBILE INTERACTIVE GAMING WAGERING PLATFORM
 AND  DISPLAY ITS BRAND, THE COMMISSION SHALL REQUIRE THAT SUCH INDEPEND-
 ENT CONTRACTOR PAY A ONE-TIME FEE OF TEN MILLION DOLLARS.
   4. A QUALIFYING ENTITY MAY IMMEDIATELY AND INDEFINITELY CONDUCT INTER-
 ACTIVE  GAMING  UPON  THE  EFFECTIVE  DATE  OF THIS ARTICLE. INTERACTIVE
 GAMING MAY BE CONDUCTED BY THE MEANS PRESCRIBED IN THIS ARTICLE PURSUANT
 TO REGULATIONS GOVERNING GAME RULES AND OPERATION FOR  SPORTS  WAGERING,
 SLOT  MACHINES,  POKER,  TABLE  GAMES,  OR  ANY OTHER GAME AS DEFINED IN
 SUBDIVISION FOUR, NINETEEN, THIRTY-EIGHT, THIRTY-NINE, OR  FORTY-ONE  OF
 SECTION  THIRTEEN  HUNDRED  ONE OF THIS CHAPTER UNTIL SUCH TIME THAT THE
 COMMISSION HAS ADOPTED RULES RELATED TO THE  CONDUCT  AND  OPERATION  OF
 INTERACTIVE GAMES.
   § 1504. INDIVIDUAL,  ENTERPRISE AND VENDOR LICENSING. EACH INTERACTIVE
 GAMING LICENSEE MAY CONTRACT  WITH  AN  ENTITY  TO  CONDUCT  INTERACTIVE
 GAMING, IN ACCORDANCE WITH THE REGULATIONS OF THE COMMISSION. SUCH ENTI-
 TY  SHALL  OBTAIN  A  LICENSE  AS  A  CASINO  VENDOR ENTERPRISE PRIOR TO
 EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE SHALL BE ISSUED  PURSU-
 ANT  TO THE PROVISIONS OF SECTIONS THIRTEEN HUNDRED TWENTY-SIX AND THIR-
 TEEN HUNDRED TWENTY-SEVEN OF THIS CHAPTER AND  IN  ACCORDANCE  WITH  THE
 REGULATIONS PROMULGATED BY THE COMMISSION.
   § 1505. REQUIREMENTS  FOR CONDUCT AND OPERATION OF INTERACTIVE GAMING.
 1.  THE LIVE GAMING STUDIO USED TO CONDUCT LIVE DEALER GAMES  SHALL  NOT
 BE  REQUIRED  TO BE LOCATED WITHIN THE PREMISES OF A GAMING FACILITY, AS
 DEFINED IN SUBDIVISION TWENTY-THREE OF SECTION THIRTEEN HUNDRED  ONE  OF
 THIS CHAPTER, BUT MUST BE LOCATED WITHIN THE STATE OF NEW YORK.
   2.  AN  APPLICANT  FOR  AN INTERACTIVE GAMING LICENSE SHALL PRODUCE AN
 AFFIDAVIT STATING IT SHALL ENTER INTO A LABOR PEACE AGREEMENT WITH LABOR
 ORGANIZATIONS THAT ARE ACTIVELY ENGAGED IN REPRESENTING OR ATTEMPTING TO
 REPRESENT GAMING OR HOSPITALITY INDUSTRY  WORKERS  IN  THE  STATE  AS  A
 MANDATORY  COMPONENT  OF  ITS  APPLICATION  FOR  AN  INTERACTIVE  GAMING
 LICENSE; PROVIDED HOWEVER, THAT IF SUCH APPLICANT ALREADY  HAS  A  LABOR
 PEACE  AGREEMENT PERTAINING TO ITS EXISTING OPERATIONS, SUCH LABOR PEACE
 AGREEMENT MAY SATISFY THE REQUIREMENTS OF THIS SUBDIVISION  SO  LONG  AS
 SUCH  LABOR  PEACE AGREEMENT IS UPDATED TO PERTAIN TO INTERACTIVE GAMING
 OPERATIONS AUTHORIZED UNDER THIS ARTICLE.  IN ORDER FOR  THE  COMMISSION
 TO  ISSUE AN INTERACTIVE GAMING LICENSE AND FOR ANY OPERATIONS INVOLVING
 LIVE STUDIO DEALERS TO COMMENCE, THE APPLICANT FOR AN INTERACTIVE GAMING
 LICENSE MUST PRODUCE DOCUMENTATION THAT IT  HAS  ENTERED  INTO  A  LABOR
 PEACE AGREEMENT WITH EACH LABOR ORGANIZATION THAT IS ACTIVELY ENGAGED IN
 REPRESENTING AND ATTEMPTING TO REPRESENT GAMING AND HOSPITALITY INDUSTRY
 WORKERS  IN THE STATE. THE COMMISSION SHALL MAKE THE MAINTENANCE OF SUCH
 A LABOR PEACE AGREEMENT AN ONGOING MATERIAL CONDITION  OF  LICENSURE  AS
 LONG  AS  THE INTERACTIVE GAMING LICENSEE MAKES USE OF LIVE STUDIO DEAL-
 ERS. A LICENSE HOLDER SHALL, AS A CONDITION OF ITS LICENSE, ENSURE  THAT
 OPERATIONS  AT  A  LIVE GAMING STUDIO THAT INVOLVE GAMING OR HOSPITALITY
 INDUSTRY EMPLOYEES OR  ARE  CONDUCTED  BY  CONTRACTORS,  SUBCONTRACTORS,
 LICENSEES,  ASSIGNEES, TENANTS OR SUBTENANTS SHALL BE DONE UNDER A LABOR
 PEACE AGREEMENT CONTAINING THE SAME  PROVISIONS  AS  SPECIFIED  IN  THIS
 SUBDIVISION.
   3.  ADVERTISEMENTS  FOR  CONTESTS AND PRIZES OFFERED BY AN INTERACTIVE
 GAMING LICENSEE SHALL NOT TARGET PROHIBITED PARTICIPANTS, PERSONS  UNDER
 TWENTY-ONE YEARS OF AGE, OR SELF-EXCLUDED PERSONS.
   4.  INTERACTIVE GAMING LICENSEES SHALL DEVELOP AND PROMINENTLY DISPLAY
 PROCEDURES ON THE MAIN PAGE OF SUCH INTERACTIVE GAMING LICENSEE'S  PLAT-
 FORM  FOR THE FILING OF A COMPLAINT BY AN AUTHORIZED PARTICIPANT AGAINST
 A. 9198                             8
 
 SUCH INTERACTIVE GAMING LICENSEE. AN INITIAL RESPONSE SHALL BE GIVEN  BY
 SUCH  INTERACTIVE  GAMING LICENSEE TO SUCH AUTHORIZED PARTICIPANT FILING
 THE COMPLAINT WITHIN FORTY-EIGHT HOURS OF RECEIPT. A  COMPLETE  RESPONSE
 SHALL  BE  GIVEN  BY SUCH INTERACTIVE GAMING LICENSEE TO SUCH AUTHORIZED
 PARTICIPANT FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS OF RECEIPT. AN
 AUTHORIZED PARTICIPANT MAY FILE A COMPLAINT ALLEGING A VIOLATION OF  THE
 PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
   5. INTERACTIVE GAMING LICENSEES SHALL MAINTAIN RECORDS OF ALL ACCOUNTS
 BELONGING  TO  AUTHORIZED  PARTICIPANTS  AND  RETAIN SUCH RECORDS OF ALL
 TRANSACTIONS IN SUCH ACCOUNTS FOR THE PRECEDING  FIVE  YEARS,  PROVIDED,
 HOWEVER,  THAT SUCH RECORDS BELONGING TO AN AUTHORIZED PARTICIPANT SHALL
 BE READILY ACCESSIBLE AND DOWNLOADABLE, WITHOUT COST, BY SUCH AUTHORIZED
 PARTICIPANT.
   6. THE SERVER OR OTHER EQUIPMENT  WHICH  IS  USED  BY  AN  INTERACTIVE
 GAMING LICENSEE TO ACCEPT INTERACTIVE GAMING SHALL BE PHYSICALLY LOCATED
 IN  THE  LICENSED  GAMING  FACILITY AND BE LIMITED TO INTERACTIVE GAMING
 RELATED ACTIVITIES IN ACCORDANCE WITH  REGULATIONS  PROMULGATED  BY  THE
 COMMISSION.
   7.  ALL  INTERACTIVE GAMING INITIATED IN THIS STATE SHALL BE DEEMED TO
 TAKE PLACE AT THE LICENSED GAMING FACILITY WHERE  THE  SERVER  OR  OTHER
 EQUIPMENT  USED  BY AN INTERACTIVE GAMING LICENSEE TO ACCEPT INTERACTIVE
 GAMING IS LOCATED, REGARDLESS OF THE AUTHORIZED  PARTICIPANT'S  PHYSICAL
 LOCATION WITHIN THIS STATE.
   8.  SUBJECT  TO REGULATIONS PROMULGATED BY THE COMMISSION, AN INTERAC-
 TIVE GAMING LICENSEE MAY ALLOW FOR AUTHORIZED PARTICIPANTS TO SIGN UP TO
 CREATE AND FUND ACCOUNTS ON ITS INTERACTIVE GAMING PLATFORM. AN INTERAC-
 TIVE GAMING LICENSEE SHALL ADOPT REASONABLE PROCEDURES  TO  ENSURE  THAT
 AUTHORIZED PARTICIPANTS HAVE NO MORE THAN ONE INTERACTIVE GAMING ACCOUNT
 WITH  THE  INTERACTIVE GAMING LICENSEE. HOWEVER, NOTHING IN THIS ARTICLE
 SHALL PROHIBIT THE USE OF A SINGLE ACCOUNT FOR A MOBILE SPORTS  WAGERING
 ACCOUNT  UNDER  SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS CHAPTER AND
 AN INTERACTIVE GAMING  ACCOUNT  SET  FORTH  PURSUANT  TO  THIS  ARTICLE;
 PROVIDED  HOWEVER, THAT INTERACTIVE GAMING LICENSEES SHALL KEEP SEPARATE
 AND DISTINCT RECORDS OF MOBILE SPORTS WAGERING ACTIVITY AND  INTERACTIVE
 GAMING  ACTIVITY  ON  SUCH  ACCOUNTS  PURSUANT  TO RULES AND REGULATIONS
 PROMULGATED BY THE COMMISSION.
   9. AUTHORIZED PARTICIPANTS MAY DEPOSIT AND WITHDRAW FUNDS TO AND  FROM
 THEIR  ACCOUNT  ON AN INTERACTIVE GAMING PLATFORM THROUGH ELECTRONICALLY
 RECOGNIZED PAYMENT METHODS, INCLUDING BUT NOT LIMITED  TO  CREDIT  CARDS
 AND  DEBIT  CARDS,  OR  VIA  ANY OTHER MEANS APPROVED BY THE COMMISSION;
 PROVIDED, HOWEVER, THAT IN  THE  CASE  OF  CREDIT  CARD  PAYMENTS,  EACH
 AUTHORIZED  PARTICIPANT'S  ACCOUNT  PER  LICENSEE  SHALL BE LIMITED TO A
 CREDIT CARD SPENDING AMOUNT OF TWO THOUSAND  FIVE  HUNDRED  DOLLARS  PER
 YEAR;  AND  PROVIDED  FURTHER,  HOWEVER,  THAT SUCH LIMITATION SHALL NOT
 APPLY TO OTHER PAYMENT METHODS OR TO DEBIT CARDS. NO INTERACTIVE  GAMING
 LICENSEE  SHALL BE AUTHORIZED TO PROVIDE A LINE OF CREDIT TO ANY AUTHOR-
 IZED PARTICIPANT.
   10. THE COMMISSION, BY REGULATION, MAY AUTHORIZE  AND  PROMULGATE  ANY
 RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
 AGENCIES THEREOF TO (A) ENABLE PATRONS IN THOSE STATES TO PARTICIPATE IN
 INTERACTIVE  GAMING  OFFERED  BY  LICENSEES  UNDER  THIS ARTICLE, OR (B)
 ENABLE PATRONS IN  THIS  STATE  TO  PARTICIPATE  IN  INTERACTIVE  GAMING
 OFFERED BY LICENSEES UNDER THE LAWS OF THOSE OTHER STATES, PROVIDED THAT
 SUCH  OTHER STATE OR AUTHORIZED AGENCY APPLIES SUITABILITY STANDARDS AND
 REVIEW MATERIALLY CONSISTENT WITH THE PROVISIONS OF THIS ARTICLE.
 A. 9198                             9
 
   11. ANY REGULATIONS  ADOPTED  PURSUANT  TO  SUBDIVISION  TEN  OF  THIS
 SECTION  MUST  SET FORTH PROVISIONS THAT ADDRESS (A) ANY ARRANGEMENTS TO
 SHARE REVENUE BETWEEN NEW YORK AND ANY  OTHER  STATE  OR  AGENCY  WITHIN
 ANOTHER  STATE, AND (B) ARRANGEMENTS TO ENSURE THE INTEGRITY OF INTERAC-
 TIVE GAMING OFFERED PURSUANT TO ANY SUCH AGREEMENT AND THE PROTECTION OF
 PATRONS LOCATED IN THIS STATE.
   § 1506. TAXATION AND FEES. 1. FOR THE PRIVILEGE OF CONDUCTING INTERAC-
 TIVE  GAMING  IN THE STATE, INTERACTIVE GAMING LICENSEES SHALL PAY A TAX
 EQUIVALENT TO THIRTY AND ONE-HALF PERCENT OF BASE TAXABLE  GROSS  GAMING
 REVENUE  DERIVED FROM INTERACTIVE GAMING. INTERACTIVE GAMING TAX REVENUE
 SHALL BE SEPARATELY MAINTAINED AND RETURNED TO  THE  STATE  FOR  DEPOSIT
 INTO THE STATE LOTTERY FUND FOR EDUCATION AID.
   2.  FROM  THE STATE TAX COLLECTED, THE COMMISSION SHALL DISTRIBUTE, IN
 CONJUNCTION WITH THE OFFICE OF ADDICTION SERVICES AND  SUPPORTS,  ELEVEN
 MILLION  DOLLARS  ANNUALLY  FOR PROBLEM GAMBLING EDUCATION AND TREATMENT
 PURPOSES.
   3. (A) IN EACH FISCAL  YEAR  IN  WHICH  INTERACTIVE  GAMING  LICENSEES
 ACCEPT  INTERACTIVE  GAMING WAGERS, THE COMMISSION SHALL PAY, ON A QUAR-
 TERLY BASIS, ONE-QUARTER OF ONE-TENTH OF ONE PERCENT OF THAT TAX IMPOSED
 ON INTERACTIVE GAMING BY THIS SECTION TO  A  FUND  ESTABLISHED  FOR  THE
 PURPOSE OF EMPLOYEE TRAINING, RESPONSIBLE GAMING TRAINING AND EDUCATION,
 HEALTH,  AND DEVELOPMENT; PROVIDED HOWEVER, THAT THE AMOUNT BUDGETED FOR
 SUCH A PROGRAM SHALL BE NO LESS THAN  TWENTY-FIVE  MILLION  DOLLARS  FOR
 EACH FISCAL YEAR.
   (B)  AN INDIVIDUAL MUST BE AN EMPLOYEE OF A LICENSED COMMERCIAL GAMING
 FACILITY REPRESENTED BY A LABOR  ORGANIZATION  HAVING  A  VALID  PROJECT
 LABOR  AGREEMENT  TO  BE AN ELIGIBLE PARTICIPANT IN SUCH FUND. SUCH FUND
 SHALL BE ADMINISTERED BY THE REPRESENTATIVE LABOR ORGANIZATION OR ORGAN-
 IZATIONS HAVING A VALID PROJECT LABOR AGREEMENT.
   § 1507. RESPONSIBLE GAMING REQUIREMENTS. 1.  AS A CONDITION OF  LICEN-
 SURE, EACH OPERATOR SHALL IMPLEMENT THE FOLLOWING MEASURES:
   (A)  LIMIT  EACH AUTHORIZED PARTICIPANT TO ONE ACTIVE AND CONTINUOUSLY
 USED ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR  SHOULD
 HAVE  KNOWN  TO  BE  A  PROHIBITED  BETTOR, FROM MAINTAINING ACCOUNTS OR
 PARTICIPATING IN ANY INTERACTIVE GAMING WAGERING OFFERED BY SUCH  OPERA-
 TOR;
   (B)  ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
 CERTAINTY, THAT AUTHORIZED PARTICIPANTS ARE  PHYSICALLY  LOCATED  WITHIN
 THE STATE WHEN ENGAGING IN MOBILE INTERACTIVE GAMING WAGERING;
   (C)  PROHIBIT PERSONS UNDER TWENTY-ONE YEARS OF AGE FROM PARTICIPATING
 IN ANY MOBILE INTERACTIVE GAMING WAGERING;
   (D) ENABLE AUTHORIZED PARTICIPANTS TO EXCLUDE THEMSELVES FROM INTERAC-
 TIVE GAMING WAGERING AND TAKE REASONABLE STEPS TO PREVENT  SUCH  BETTORS
 FROM ENGAGING IN WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
   (E)  PERMIT ANY AUTHORIZED PARTICIPANT 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;
   (F)  IMPLEMENT  MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY OF
 AUTHORIZED PARTICIPANTS AND THEIR ACCOUNTS;
   (G) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERNING
 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;
   (H) PERMIT ACCOUNT HOLDERS TO ESTABLISH SELF-EXCLUSION  GAMING  LIMITS
 ON  A DAILY, WEEKLY, AND MONTHLY BASIS THAT ENABLE THE ACCOUNT HOLDER TO
 A. 9198                            10

 IDENTIFY THE MAXIMUM AMOUNT OF  MONEY  AN  ACCOUNT  HOLDER  MAY  DEPOSIT
 DURING SUCH PERIOD OF TIME;
   (I)  MAINTAIN A PUBLICLY ACCESSIBLE INTERNET PAGE DEDICATED TO RESPON-
 SIBLE PLAY, A LINK TO WHICH SHALL APPEAR ON THE OPERATOR'S  WEBSITE  AND
 IN  ANY MOBILE APPLICATION OR ELECTRONIC PLATFORM ON WHICH AN AUTHORIZED
 PARTICIPANT MAY PLACE WAGERS. SUCH RESPONSIBLE PLAY PAGE  SHALL  INCLUDE
 (I)  A STATEMENT OF THE INTERACTIVE GAMING LICENSEE'S POLICY AND COMMIT-
 MENT TO RESPONSIBLE GAMING, INFORMATION REGARDING, OR LINKS TO  INFORMA-
 TION  REGARDING,  THE  RISKS  ASSOCIATED WITH GAMBLING AND THE POTENTIAL
 SIGNS OF PROBLEM GAMING; (II) THE AVAILABILITY OF SELF-IMPOSED RESPONSI-
 BLE GAMING LIMITS; (III) A LINK TO A PROBLEM GAMING  WEBPAGE  MAINTAINED
 BY  THE  OFFICE  OF ADDICTION SERVICES AND SUPPORTS; AND (IV) SUCH OTHER
 INFORMATION OR STATEMENTS AS THE COMMISSION MAY REQUIRE BY RULE;
   (J) SUBMIT ANNUALLY A RESPONSIBLE GAMING PLAN TO THE  COMMISSION.  THE
 COMMISSION SHALL PUBLISH THE REQUIREMENTS FOR THE PLAN;
   (K)  ENSURE  NO  WAGERING SHALL BE BASED ON GAME TYPES NOT APPROVED BY
 THE COMMISSION;
   (L) WHEN AN ACCOUNT HOLDER'S LIFETIME  DEPOSITS  EXCEED  TWO  THOUSAND
 FIVE  HUNDRED DOLLARS, THE INTERACTIVE GAMING LICENSEE SHALL PREVENT ANY
 WAGERING UNTIL THE PATRON ACKNOWLEDGES THAT THE ACCOUNT HOLDER  HAS  MET
 THE  DEPOSIT  THRESHOLD  AND  MAY  ELECT TO ESTABLISH RESPONSIBLE GAMING
 LIMITS OR CLOSE THE ACCOUNT, AND THE ACCOUNT HOLDER HAS RECEIVED DISCLO-
 SURES FROM THE MOBILE SPORTS WAGERING OPERATOR CONCERNING PROBLEM GAMBL-
 ING RESOURCES. ONCE A PATRON HAS REACHED THEIR  LIFETIME  DEPOSIT,  SUCH
 PATRON SHALL ANNUALLY MAKE THE ACKNOWLEDGEMENT REQUIRED BY THIS SUBDIVI-
 SION;
   (M)  SUBMIT  ANNUALLY  A  PROBLEM GAMING PLAN THAT WAS APPROVED BY THE
 COMMISSION IN CONSULTATION WITH THE OFFICE  OF  ADDICTION  SERVICES  AND
 SUPPORTS  THAT  INCLUDES (I) THE OBJECTIVES OF AND TIMETABLES FOR IMPLE-
 MENTING SUCH PLAN; (II) IDENTIFICATION OF THE  PERSONS  RESPONSIBLE  FOR
 IMPLEMENTING AND MAINTAINING SUCH PLAN; (III) PROCEDURES FOR IDENTIFYING
 USERS  WITH  SUSPECTED OR KNOWN PROBLEM GAMING BEHAVIOR; (IV) PROCEDURES
 FOR PROVIDING INFORMATION TO USERS CONCERNING PROBLEM GAMING IDENTIFICA-
 TION AND RESOURCES; (V) PROCEDURES TO PREVENT GAMING  BY  PERSONS  UNDER
 TWENTY-ONE  YEARS  OF AGE AND SELF-EXCLUDED PERSONS; AND (VI) SUCH OTHER
 PROBLEM GAMING INFORMATION AS THE COMMISSION MAY REQUIRE BY RULE;
   (N) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF  WINNING  IN  ADVER-
 TISEMENTS  OR  UPON PLACEMENT OF AN INTERACTIVE GAMING WAGER, MAKE CLEAR
 AND  CONSPICUOUS  STATEMENTS  THAT  ARE  NOT  INACCURATE  OR  MISLEADING
 CONCERNING THE CHANCES OF WINNING AND THE NUMBER OF WINNERS;
   (O)  OFFER  INTRODUCTORY  PROCEDURES  FOR AUTHORIZED PARTICIPANTS THAT
 SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE  OF  INTERACTIVE  GAMING
 LICENSEES' WEBSITES OR APPLICATIONS THAT EXPLAIN INTERACTIVE GAMING; AND
   (P)  OFFER  ALL  AUTHORIZED  PARTICIPANTS ACCESS TO HIS OR HER ACCOUNT
 HISTORY AND ACCOUNT DETAILS.
   2. INTERACTIVE GAMING LICENSEES SHALL NOT OFFER ANY INTERACTIVE GAMING
 WAGER BASED ON ANY ACTIVITY, GAME, OR OTHER EVENT THAT IS DEEMED PROHIB-
 ITED OR AGAINST PUBLIC POLICY BY THE COMMISSION.
   3. ALL INTERACTIVE GAMING SHALL BE CONDUCTED IN COMPLIANCE  WITH  THIS
 ARTICLE.
   4.  THE  COMMISSION,  IN  CONJUNCTION  WITH  THE  OFFICE  OF ADDICTION
 SERVICES AND SUPPORTS, SHALL ANNUALLY  PREPARE  AND  DISTRIBUTE  TO  THE
 GOVERNOR  AND  THE  LEGISLATURE  A  REPORT  ON THE IMPACT OF INTERACTIVE
 GAMING ON PROBLEM GAMBLERS IN NEW YORK, INCLUDING, TO THE EXTENT PRACTI-
 CABLE, AN ANALYSIS OF DEMOGRAPHICS WHICH ARE DISPROPORTIONATELY IMPACTED
 BY PROBLEM GAMBLING. THE  COSTS  ASSOCIATED  WITH  THE  PREPARATION  AND
 A. 9198                            11
 
 DISTRIBUTION  OF SUCH REPORT SHALL BE BORNE BY INTERACTIVE GAMING LICEN-
 SEES AND THE COMMISSION SHALL BE AUTHORIZED  TO  ASSESS  A  FEE  AGAINST
 INTERACTIVE  GAMING  LICENSEES FOR THESE PURPOSES. THE COMMISSION, OR IN
 THE  CASE  THAT  AN  INDEPENDENT INTEGRITY MONITOR HAS BEEN ESTABLISHED,
 SUCH INDEPENDENT INTEGRITY MONITOR, SHALL ALSO REPORT BIANNUALLY TO  THE
 GOVERNOR  AND  THE LEGISLATURE ON THE EFFECTIVENESS OF THE STATUTORY AND
 REGULATORY CONTROLS IN PLACE TO  ENSURE  THE  INTEGRITY  OF  INTERACTIVE
 GAMING OPERATIONS.
   §  5.  Section 1602 of the tax law is amended by adding a new subdivi-
 sion 7 to read as follows:
   7. "INTERACTIVE LOTTERY GAMING" MEANS WAGERING ON  AUTHORIZED  LOTTERY
 GAMES  ONLINE  BY  ANY  SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT
 LIMITED TO, COMMUNICATION THROUGH  INTERNET  WEBSITES,  ACCESSED  VIA  A
 MOBILE  DEVICE,  TABLET OR LAPTOP OR DESKTOP COMPUTER, AND MOBILE DEVICE
 APPLICATIONS. AN INTERACTIVE  LOTTERY  GAME  SHALL  INCLUDE  ANY  LAWFUL
 LOTTERY  GAME AUTHORIZED BY THE COMMISSION INCLUDING JOINT, MULTI-JURIS-
 DICTION AND OUT-OF-STATE LOTTERY GAMES, DAILY NUMBER GAMES, LOTTO GAMES,
 QUICK DRAW AND INSTANT CASH.
   § 6. Paragraph 1 of subdivision c of section 1612 of the tax  law,  as
 amended  by  chapter  174  of  the  laws  of 2013, is amended to read as
 follows:
   1. The  specifications  for  INTERACTIVE  LOTTERY  AND  video  lottery
 gaming,  including any joint, multi-jurisdiction, and out-of-state video
 lottery gaming, shall be designed in such a manner as to pay prizes that
 average no less than [ninety] FORTY PERCENT,  BUT  NO  MORE  THAN  SIXTY
 percent of sales.
   §  7. The tax law is amended by adding a new section 1617-b to read as
 follows:
   § 1617-B. INTERACTIVE LOTTERY TICKETS.  THE  DIVISION  OF  LOTTERY  IS
 HEREBY   AUTHORIZED TO CONDUCT SALES OF LOTTERY TICKETS ON THE INTERNET,
 PURSUANT TO RULES AND REGULATIONS TO BE PROMULGATED BY THE  DIVISION  OF
 LOTTERY,  WHICH SHALL BE KNOWN AS INTERACTIVE LOTTERY TICKETS. EXCEPT AS
 OTHERWISE PERMITTED PURSUANT TO SECTION  SIXTEEN  HUNDRED  SEVENTEEN  OF
 THIS ARTICLE, THE DIVISION SHALL RESTRICT INTERACTIVE LOTTERY TICKETS TO
 TRANSACTIONS INITIATED AND RECEIVED OR OTHERWISE MADE EXCLUSIVELY WITHIN
 THE STATE OF NEW YORK.
   § 8. This act shall take effect immediately.