§ 1367. Sports wagering. 1. As used in this section and in section
thirteen hundred sixty-seven-a of this title:

(a) "Platform provider" means an entity selected by the commission to
conduct mobile sports wagering pursuant to a competitive bidding
process;

(b) "Authorized sports bettor" means an individual who is physically
present in this state when placing a sports wager, who is not a
prohibited sports bettor, and who participates in sports wagering
offered by a casino or a mobile sports wagering licensee;

(c) "Casino" means a licensed gaming facility at which gambling is
conducted pursuant to the provisions of this article;

(d) "Commission" means the New York state gaming commission
established pursuant to section one hundred two of this chapter;

(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 educational services beyond the
secondary level;

(f) "Covered persons" includes: athletes; players; umpires; referees;
officials; personnel associated with players, clubs, teams, leagues, and
athletic associations; medical professionals, including athletic
trainers, who provide services to athletes and players; and the family
members of these persons;

(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) "In-play sports wager" means a sports wager placed on a sports
event after the sports event has begun and before it ends;

(i) "Layoff bet" means a sports wager placed by a casino sports pool
with another casino sports pool;

(j) "Minor" means any person under the age of twenty-one years;

(k) "Mobile sports wagering platform" or "platform" means the
combination of hardware, software, and data networks used to manage,
administer, 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;

(l) "Mobile sports wagering operator" means a mobile sports wagering
skin which has been licensed by the commission to operate a sports pool
through a mobile sports wagering platform;

(m) "Mobile sports wagering licensee" means a platform provider and a
mobile sports wagering operator licensed by the commission;

(n) "Operator" means a casino which has elected to operate a sports
pool;

(o) "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;

(p) "Conduct potentially warranting further investigation" means any
statement, action, or other communication intended to unlawfully
influence, manipulate, or control a wagering outcome of a sporting
contest or performance in a sporting contest in exchange for a benefit
or to avoid financial or physical harm. "Conduct potentially warranting
further investigation" may include, but not be limited to, statements,
actions, and communications made to a covered person;

(q) "Professional sports stadium or arena" means a stadium, ballpark,
or arena in which a professional sport or athletic event occurs;

(r) "Prohibited sports bettor" means:

(i) any officer or employee of the commission;

(ii) any principal or key employee of a casino, mobile sports wagering
licensee, and its affiliates, except as may be permitted by the
commission;

(iii) any casino gaming or non-gaming employee at the casino that
employs such person and any gaming or non-gaming employee at the mobile
sports wagering licensee that employs such person;

(iv) any contractor, subcontractor, or consultant, or officer or
employee of a contractor, subcontractor, or consultant, of a casino or a
mobile sports wagering licensee 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, sibling or parent residing in the principal
place of abode of any of the foregoing persons at the same casino or
mobile sports wagering licensee where the foregoing person is prohibited
from participating in sports wagering;

(vii) any amateur or professional athlete if the sports wager is based
on any sport or athletic event that the athlete participates in at such
amateur or professional level;

(viii) any sports agent, owner or employee or independent contractor
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;

(ix) any individual placing a wager as an agent or proxy for another
person known to be a prohibited sports bettor; or

(x) any minor.

(s) "Prohibited sports event" means a sport or athletic event in which
any New York college team participates regardless of where the event
takes place, or high school sport or athletic event. The following shall
not be considered prohibited sports events: (i) a collegiate tournament,
and (ii) a sports event within such tournament so long as no New York
college team is participating in that particular sports event;

(t) "Sports event" means any professional sport or athletic event and
any collegiate sport or athletic event, except a prohibited sports
event;

(u) "Sports governing body" means the organization that prescribes
final rules and enforces codes of conduct with respect to a sporting
event and participants therein;

(v) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering;

(w) "Sports wager" means cash or cash equivalent that is paid by an
authorized sports bettor to a casino or a mobile sports wagering
licensee to participate in sports wagering offered by such casino or
mobile sports wagering licensee;

(x) "Sports wagering" means wagering on sporting events or any portion
thereof, or on the individual performance statistics of athletes
participating 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; provided however that sports wagers shall include, but are
not limited to, single-game bets, teaser bets, parlays, over-under bets,
money line, pools, in-game wagering, in-play bets, proposition bets, and
straight bets;

(y) "Sports wagering gross revenue" means: (i) the amount equal to the
total of all sports wagers not attributable to prohibited sports events
that a mobile sports wagering licensee collects from all sports bettors,
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;

(z) "Sports wagering lounge" means an area wherein a sports pool is
operated at a casino for placement of in-person wagers;

(aa) "Unusual wagering activity" means abnormal wagering activity
exhibited by patrons and deemed by the casino, the mobile sports
wagering licensee, or commission pursuant to rules and regulations
promulgated by the commission, as a potential indicator of suspicious
activity. Abnormal wagering activity may include, but is not limited to,
the size of a patron's wager or increased wagering volume on a
particular event or wager type;

(bb) "Suspicious wagering activity" means unusual wagering activity
that cannot be explained and is indicative of match fixing, the
manipulation of an event, misuse of inside information, or other
prohibited activity; and

(cc) "Independent integrity monitor" means an independent individual
or entity approved by the commission to receive reports of unusual
wagering activity from a casino, mobile sports wagering licensee, or
commission for the purpose of assisting in identifying suspicious
wagering activity.

2. (a) In addition to authorized gaming activities, a casino may
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 implementation 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 casino. 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.
Provided, however, the commission may also approve additional locations
for a sports pool within the casino, in areas that have been approved by
the commission for the conduct of other gaming, to be operated in a
manner and methodology as regulation shall 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, through mobile sports
wagering offered pursuant to section thirteen hundred sixty-seven-a of
this title, if such operator is also a mobile sports wagering licensee,
or any additional locations for a sports pool within the casino,
approved by the gaming commission. A person placing a wager shall be at
least twenty-one years of age.

(e) An operator or mobile sports wagering licensee 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 or mobile sports wagering licensee may utilize global
risk management pursuant to the approval of the commission.

(g) An operator or mobile sports wagering licensee shall not admit
into the sports wagering lounge, or accept wagers from, any person whose
name appears on the exclusion list.

(h) The holder of a license to operate a sports pool may contract with
an entity to conduct that operation, in accordance with the regulations
of the commission. That 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.

(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.

3. (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.

4. 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
regulates other gaming. No casino or mobile sports wagering licensee
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 casinos and mobile
sports wagering licensees to cover winning wagers;

(b) acceptance of wagers on a series of sports events;

(c) maximum wagers which may be accepted by a casino or mobile sports
wagering licensee 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 casinos and mobile sports
wagering licensees;

(g) types of records which shall be kept;

(h) use of credit and checks by authorized sports bettors;

(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

(l) protections for a person placing a wager.

5. Each casino and mobile sports wagering licensee shall adopt
comprehensive house rules governing sports wagering transactions with
its 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 the terms and conditions of the account wagering
system, and copies shall be made readily available to authorized sports
bettors. Mobile sports wagering operators shall develop and prominently
display procedures on the main page of such mobile sports wagering
operator's platform for the filing of complaints by authorized sports
bettors against such mobile sports wagering operator. An initial
response shall be given by such mobile sports wagering operator to such
bettor filing the complaint within forty-eight hours. A complete
response shall be given by such mobile sports wagering 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.

6. (a) Each casino and mobile sports wagering operator 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 or mobile sports wagering operator;

(iv) the total amount of wagers received on each sports governing
body's sporting events;

(v) the number of accounts held by authorized sports bettors;

(vi) the total number of new accounts established in the preceding
year, as well as the total number of accounts permanently closed in the
preceding year;

(vii) the total number of authorized sports bettors that requested to
exclude themselves in a prior year who participated in sports wagering;
and

(viii) any additional information that the commission deems necessary
to carry out the provisions of this article.

(b) The commission shall annually publish a report based on the
aggregate information provided by all casinos and mobile sports wagering
operators 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).

7. For the privilege of conducting sports wagering in the state,
casinos shall pay a tax equivalent to ten percent of their sports
wagering gross gaming revenue, excluding sports wagering gross gaming
revenue attributed to mobile sports wagering offered pursuant to section
thirteen hundred sixty-seven-a of this title. Platform providers shall
pay a tax constituting a certain percentage of the sports wagering gross
gaming revenue attributed to mobile sports wagering offered through such
platform provider's platform pursuant to section thirteen hundred
sixty-seven-a of this title; provided however, that such percentage
shall be determined pursuant to a competitive bidding process conducted
by the commission as outlined in subdivision seven of section thirteen
hundred sixty-seven-a of this title; and provided further, that such
percentage shall be no lower than twelve percent. When awarding a
license pursuant to section thirteen hundred sixty-seven-a of this
title, the commission may set graduated tax rates; provided however,
that any such tax rates may not be lower than the minimum rate
established in this subdivision.

8. Notwithstanding section thirteen hundred fifty-one of this article,
mobile sports wagering gross gaming revenue and tax revenue shall be
excluded from sports wagering gross gaming revenue and tax revenue.
Mobile sports wagering tax revenue shall be separately maintained and
returned to the state for deposit into the state lottery fund for
education aid except as otherwise provided in this subdivision. 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 shall
be deposited into the state lottery fund for education. In the first
fiscal year in which mobile sports wagering licensees commence
operations and accept mobile sports wagers pursuant to this section, the
commission shall pay into the commercial gaming fund one percent of the
state tax imposed on mobile sports wagering by this section to be
distributed for problem gambling education and treatment purposes
pursuant to paragraph a of subdivision four of section ninety-seven-nnnn
of the state finance law; provided however, that such amount shall be
equal to six million dollars for each fiscal year thereafter. In the
first fiscal year in which mobile sports wagering licensees commence
operations and accept mobile sports wagers pursuant to this section, the
commission shall pay one percent of the state tax imposed on mobile
sports wagering by this section to the general fund, a program to be
administered by the office of children and family services for a
statewide youth sports activities and education grant program for the
purpose of providing annual awards to sports programs for underserved
youth under the age of eighteen years; provided however, that such
amount shall be equal to five million dollars for each fiscal year
thereafter. The commission shall require at least monthly deposits by a
platform provider of any payments pursuant to subdivision seven of this
section, at such times, under such conditions, 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.

9. The commission may perform audits of the books and records of a
casino or mobile sports wagering licensee pursuant to section one
hundred four of this chapter.

10. 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
offered pursuant to article fourteen of this chapter to conduct sports
wagering unless it separately qualifies for, and obtains, authorization
pursuant to this section.

11. 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 or mobile sports wagering
licensees on such a request, and if the commission deems it appropriate,
promulgate regulations to restrict such sports wagering.

12. (a) When potential criminal activity is suspected by the
commission, the commission shall designate the division of the state
police to have primary responsibility for assisting the commission in
conducting investigations into unusual wagering activity, match fixing,
and other conduct that corrupts a wagering outcome of a sporting event
or events.

(b) Casinos and mobile sports wagering licensees shall maintain
records of sports wagering operations in accordance with regulations
promulgated by the commission. These regulations shall, at a minimum,
require a casino or mobile sports wagering operator to adopt procedures
to obtain personally identifiable information from any individual who
places any single wager in an amount of ten thousand dollars or greater
or making a potential payout or actual payout of ten thousand dollars or
greater on a winning wager.

(c) Casinos, mobile sports wagering licensees and sports governing
bodies shall cooperate with the commission to ensure the timely,
efficient, and accurate sharing of information.

(d) Casinos, mobile sports wagering licensees and sports governing
bodies shall cooperate with investigations conducted by the commission
or law enforcement agencies, including but not limited to providing or
facilitating the provision of account-level wagering information and
audio or video files relating to persons placing wagers; provided,
however, that the casino and mobile sports wagering operator shall not
be required to share any personally identifiable information of an
authorized sports bettor with any sports governing body unless ordered
to do so by the commission, a law enforcement agency or court of
competent jurisdiction.

(e) (i) Casinos and mobile sports wagering licensees shall promptly
report to the commission and any third party integrity monitoring
provider approved by the commission, as applicable and in accordance
with rules and regulations established by the commission, any
information relating to:

(1) criminal or disciplinary proceedings commenced against the casino
or mobile sports wagering licensee in connection with its operations;

(2) unusual wagering activity or patterns that may indicate a concern
with the integrity of a sporting event or events;

(3) 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 or
the mobile sports wagering operator;

(4) any other conduct that corrupts a wagering outcome of a sporting
event or events, including match fixing; and

(5) 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.

(ii) The commission may share information relating to conduct
described in clauses two, three and four of subparagraph (i) of this
paragraph with the relevant sports governing body.

(iii) The commission shall be authorized to share any information
under this section with any law enforcement entity, team, sports
governing body, or regulatory agency the commission deems appropriate.
Such sharing of information may include, but is not limited to, account
level wagering information and any audio or video files related to the
investigation.

(iv) A casino or mobile sports wagering licensee may 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, a law enforcement agency or a court of competent
jurisdiction.

(f) The confidentiality of information shared between a sports
governing body and a casino or a mobile sports wagering operator shall
be maintained pursuant to all applicable data privacy laws, unless
disclosure is required by this section, the commission, other law, or
court order. Furthermore, the information shared between a sports
governing body, a casino, a mobile sports wagering operator or any other
party pursuant to this act may not be used for business or marketing
purposes by the recipient without the express written approval of the
party that provides such information.

(g) 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
wagering activity, match fixing, and other conduct that corrupts a
wagering outcome of a sporting event or events.

(h) In the event of the creation of an entity that maintains an
interstate database of sports wagering information for the purpose of
integrity monitoring, the commission may share information and cooperate
with such entity pursuant to regulations promulgated by the commission.

(i) Casinos and mobile sports wagering licensees shall adopt
procedures to prevent persons from wagering on sports events who are
prohibited from placing sports wagers. A casino or mobile sports
wagering licensee shall not accept wagers from any person:

(i) whose name appears on the exclusion list maintained by the
commission and provided to the casino or mobile sports wagering
licensee;

(ii) whose name appears on any self-exclusion list maintained by the
commission and provided to the casino or mobile sports wagering
licensee;

(iii) who is the operator, director, officer, owner, or employee of
the casino or mobile sports wagering licensee or any spouse, child,
sibling or parent living in the same principal place of abode as such
individual;

(iv) who has been identified as a prohibited sports bettor in a list
provided by the sports governing body to the commission and casino or
mobile sports wagering operator, that identifies the individual by such
personally identifiable information as specified by rules and
regulations promulgated by the commission; or

(v) who is an agent or proxy for a prohibited sports bettor.

(j) The commission shall establish a method of communication, which
may include, but is not limited to a website form, that allows any
person to confidentially report information about conduct potentially
warranting further investigation to the commission. The identity of any
person reporting conduct potentially warranting further investigation to
the commission shall remain confidential unless that person authorizes
disclosure of his or her identity or until such time as the allegation
of conduct potentially warranting further investigation is referred to
law enforcement. The commission shall promulgate rules governing the
investigation and resolution of a charge of any person purported to have
engaged in conduct potentially warranting further investigation.

13. The commission shall promulgate rules that require a casino or
mobile sports wagering licensees to implement responsible gaming
programs that include comprehensive employee trainings on responding to
circumstances in which individuals present signs of a gambling addiction
and requirements for casinos and mobile sports wagering licensees under
section thirteen hundred sixty-seven-a of this title to assess, prevent,
and address problem gaming by such casino's or mobile sports wagering
licensee's users.

14. For purposes of wager determination, the commission shall provide
a preference for the use of official league data unless the use of other
objective wager determination criteria has been justified to the
satisfaction of the commission.

15. The conduct of sports wagering in violation of this section is
prohibited.

16. (a) In addition to any criminal penalties provided for under
article two hundred twenty-five of the penal law, any person, firm,
corporation, association, agent, or employee, who is not authorized to
offer sports wagering under this section or section thirteen hundred
sixty-seven-a of this title, and who knowingly offers or attempts to
offer sports wagering or mobile sports wagering in New York shall be
liable for a civil penalty of not more than one hundred thousand dollars
for each violation, not to exceed five million 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 attorney
general.

(b) Any person, firm, corporation, association, agent, or employee who
knowingly violates any procedure implemented under this section, or
section thirteen hundred sixty-seven-a of this title, shall be liable
for a civil penalty as described in section one hundred sixteen of this
chapter which shall accrue to the state and may be recovered in a civil
action brought by the commission.