The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                11144--A

                          I N  A S S E M B L Y

                              June 8, 2018
                               ___________

Introduced  by  COMMITTEE  ON  RULES -- (at request of M. of A. Pretlow,
  Santabarbara, Lupardo, Hooper, Walker, B. Miller,  Murray,  DenDekker,
  Garbarino,  D. Rosenthal,  Weprin)  --  read  once and referred to the
  Committee  on  Racing  and  Wagering  --  committee  discharged,  bill
  amended,  ordered reprinted as amended and recommitted to said commit-
  tee

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

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 1367 of the racing, pari-mutuel wagering and breed-
ing law, as added by chapter 174 of the laws of 2013, is amended to read
as follows:
  § 1367. Sports wagering. 1. As used in this section:
  (a) "AFFILIATE" MEANS ANY OFF-TRACK  BETTING  CORPORATION,  FRANCHISED
CORPORATION,  OR  RACE  TRACK  LICENSED  PURSUANT TO THIS CHAPTER, 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  SECTION  THIRTEEN
HUNDRED SIXTY-SEVEN-A OF THIS TITLE;
  (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)  "BRAND"  MEANS  THE  NAME  AND  LOGO ON THE INTERFACE OF A MOBILE
APPLICATION OR INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER
WHICH AUTHORIZED SPORTS BETTORS USE TO ACCESS A SPORTS BETTING PLATFORM;

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

                                                           LBD14923-20-8

A. 11144--A                         2

  (E) "Casino" means a licensed gaming facility  at  which  gambling  is
conducted pursuant to the provisions of this article;
  [(b)]  (F)  "Commission"  means the commission established pursuant to
section one hundred two of this chapter;
  [(c)] (G) "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;
  (H)  "EXCHANGE  WAGERING" MEANS A FORM OF WAGERING IN WHICH AN AUTHOR-
IZED SPORTS BETTOR, ON THE ONE HAND, AND ONE OR MORE  AUTHORIZED  SPORTS
BETTORS,  A  CASINO  OR AN AGENT OR AN OPERATOR, ON THE OTHER HAND PLACE
IDENTICALLY OPPOSING SPORTS WAGERS ON AN EXCHANGE OPERATED BY  A  CASINO
OR AN AGENT OR AN OPERATOR;
  (I)  "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)] (J) "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;
  (K)  "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;
  (L)  "IN-PLAY  SPORTS  WAGER"  MEANS A SPORTS WAGER PLACED ON A SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
  (M) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO  SPORTS  POOL
WITH ANOTHER CASINO SPORTS POOL;
  (N) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (O) "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;
  (P)  "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;
  (Q)  "Operator"  means  a casino which has elected to operate a sports
pool OR THE AGENT OF SUCH LICENSED GAMING FACILITY;
  [(e)] (R) "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;
  (S) "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

A. 11144--A                         3

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;
  [(f)]  (T)  "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)]  (U) "REGISTERED SPORTS GOVERNING BODY" MEANS A SPORTS GOVERNING
BODY THAT IS HEADQUARTERED IN THE UNITED STATES AND WHO  HAS  REGISTERED
WITH  THE  COMMISSION TO RECEIVE ROYALTY FEE REVENUE IN SUCH FORM AS THE
COMMISSION MAY REQUIRE;
  (V) "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)]   (W)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (X) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
  (i)]  (Y) "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;
  (Z) "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.
ANY WAGER THROUGH ELECTRONIC COMMUNICATION IS DEEMED MADE AT  THE  PHYS-
ICAL  LOCATION  OF  THE SERVER OR OTHER EQUIPMENT USED BY AN OPERATOR TO
ACCEPT MOBILE  SPORTS  WAGERING.    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;
  (AA)  "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

A. 11144--A                         4

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 OPER-
ATOR.  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;
  (BB)  "Sports  wagering lounge" means an area wherein a sports pool is
operated;
  (CC) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT  IS  DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
  (DD) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER; AND
  (EE)  "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

A. 11144--A                         5

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] AN AGENT 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 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;

A. 11144--A                         6

  (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
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 IN SPORTS BETTING ROYALTY REVENUE
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  ROYALTY  FEE  OF  ONE-FIFTH (.20) OF ONE PERCENT OF THE AMOUNT
WAGERED ON  SPORTS  EVENTS  CONDUCTED  BY  REGISTERED  SPORTS  GOVERNING
BODIES.    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  REGISTERED SPORT
GOVERNING BODY'S SPORTS EVENTS.
  (B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH  YEAR,  A  REGISTERED
SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE ROYALTY
FEE  FUNDS  REMITTED  BY  CASINOS IN THE PREVIOUS CALENDAR YEAR ON THEIR
RESPECTIVE SPORTS EVENTS.  WITHIN THIRTY DAYS OF  SUBMITTING  ITS  CLAIM
FOR  DISBURSEMENT,  THE REGISTERED SPORTS GOVERNING BODY SHALL MEET WITH
THE COMMISSION TO PROVIDE THE  COMMISSION  WITH  EVIDENCE  OF  POLICIES,
PROCEDURES  AND  TRAINING  PROGRAMS  IT  HAS  IMPLEMENTED TO PROTECT THE
INTEGRITY OF ITS SPORTS EVENTS.
  (C) WITHIN THIRTY DAYS OF  ITS  MEETING  WITH  THE  REGISTERED  SPORTS
GOVERNING  BODY,  THE  COMMISSION  SHALL  APPROVE  A  TIMELY  CLAIM  FOR
DISBURSEMENT.

A. 11144--A                         7

  (D) THE COMMISSION'S MEETING WITH A REGISTERED SPORTS  GOVERNING  BODY
UNDER  PARAGRAPH  (B) OF THIS SUBDIVISION, SHALL BE CLOSED TO THE PUBLIC
AND EXEMPT FROM THE OPEN MEETINGS LAW.  ANY  EVIDENCE  PROVIDED  TO  THE
COMMISSION UNDER PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE CONFIDENTIAL
AND EXEMPT FROM DISCLOSURE UNDER THE STATE FREEDOM OF INFORMATION LAW.
  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
FOUR  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 FOUR 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
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-

A. 11144--A                         8

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)  CASINOS  SHALL  MAINTAIN RECORDS OF SPORTS WAGERING OPERATIONS IN
ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.  THESE  REGU-
LATIONS  SHALL,  AT  A  MINIMUM, REQUIRE A CASINO TO ADOPT PROCEDURES TO
OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL WHO PLAC-
ES ANY SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER ON A
SPORTS EVENT WHILE PHYSICALLY PRESENT IN A  CASINO  OR  USING  A  MOBILE
SPORTS BETTING KIOSK AT AN AFFILIATE.
  (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
MATION.
  (D)  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.

A. 11144--A                         9

  (E) CASINOS SHALL PROMPTLY REPORT TO THE  COMMISSION  ANY  INFORMATION
RELATING TO:
  (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  PROMPTLY  REPORT INFORMATION RELATING TO
CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV)  OF  THIS  PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (F) 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.
  (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
BETTING  ACTIVITY,  MATCH  FIXING,  AND  OTHER  CONDUCT  THAT CORRUPTS A
BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF  FINANCIAL
GAIN.
  (H)  THE  COMMISSION  SHALL STUDY THE POTENTIAL FOR THE CREATION OF AN
INTERSTATE DATABASE OF ALL SPORTS WAGERING INFORMATION FOR  THE  PURPOSE
OF  INTEGRITY  MONITORING, AND SHALL CREATE A FINAL REPORT REGARDING ALL
FINDINGS AND RECOMMENDATIONS TO BE  DELIVERED  UPON  COMPLETION  OF  ALL
OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO
THOUSAND  NINETEEN, TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE
TEMPORARY PRESIDENT OF THE SENATE.
  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.

A. 11144--A                        10

  (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 THIRTEEN
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) THE COMMISSION SHALL PROMULGATE REGULATIONS TO ALLOW AN AUTHORIZED
SPORTS  BETTOR  TO FILE A COMPLAINT ALLEGING AN UNDERPAYMENT OR NON-PAY-
MENT OF A WINNING SPORTS WAGER. ANY SUCH REGULATIONS SHALL PROVIDE  THAT
THE COMMISSION UTILIZE THE STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA
RELATING  TO  A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT
SPORTS GOVERNING BODY IN DETERMINING THE VALIDITY OF SUCH CLAIM.
  17. A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW,  OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  18.  SPORTS  WAGERING  CONDUCTED  PURSUANT  TO  THE PROVISIONS OF THIS
SECTION IS HEREBY AUTHORIZED.
  19. THE CONDUCT OF SPORTS WAGERING IN VIOLATION  OF  THIS  SECTION  IS
PROHIBITED.
  20. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI-
CLE  TWO  HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON, FIRM, CORPO-
RATION, 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 ARIS-
ING 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.
  (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 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. (A) EXCEPT AS  PROVIDED  IN  THIS
SUBDIVISION,  THE  TERMS IN THIS SECTION SHALL HAVE THE SAME MEANINGS AS
SUCH TERMS ARE DEFINED IN SUBDIVISION ONE OF  SECTION  THIRTEEN  HUNDRED
SIXTY-SEVEN OF THIS TITLE.
  (B) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT-
FORM INCLUDING AN AGENT.
  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 ONE MOBILE SPORTS WAGERING PLATFORM AND BRAND PROVIDED THAT SUCH
PLATFORM AND BRAND HAS BEEN REVIEWED AND APPROVED BY THE  COMMISSION.  A

A. 11144--A                        11

CASINO  MAY  CONTRACT WITH AN INDEPENDENT OPERATOR TO PROVIDE ITS MOBILE
SPORTS WAGERING PLATFORM.
  (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 AN OPERATOR TO PROVIDE
ITS MOBILE SPORTS WAGERING  PLATFORM  AND  BRAND,  SUCH  OPERATOR  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
  (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;

A. 11144--A                        12

  (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 EXCHANGE WAGERING 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 EXCHANGE WAGERING  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.
  (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.
  (J) ALL MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN  COMPLIANCE  WITH
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
  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 MOBILE SPORTS WAGERING
PLATFORMS OFFERED BY THE CASINO.
  (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

A. 11144--A                        13

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.  AUTHORIZED SPORTS BETTORS MAY PLACE  ACCOUNT
WAGERS, AND PLACE AND REDEEM NON-ACCOUNT CASH WAGERS, AT SUCH KIOSKS.
  (E)  ALL  AGREEMENTS  ENTERED  INTO  BETWEEN CASINOS AND AFFILIATES IN
RELATION TO THE PROVISIONS OF THIS SECTION  SHALL  BE  APPROVED  BY  THE
COMMISSION PRIOR TO TAKING EFFECT AND SHALL INCLUDE A PLAN FOR THE TIME-
LY PAYMENT OF LIABILITIES DUE TO THE AFFILIATE UNDER THE AGREEMENT.
  §  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. Paragraph (a) of subdivision 2-a of section 1009 of  the  racing,
pari-mutuel  wagering and breeding law, as amended by chapter 626 of the
laws of 1986, is amended to read as follows:
  (a) In Sullivan, Greene and Ulster counties  AND  WITHIN  THE  CAPITAL
DISTRICT  REGION  AS  DEFINED  BY  PARAGRAPH  (E)  OF SUBDIVISION ONE OF
SECTION FIVE HUNDRED NINETEEN OF THIS CHAPTER, the board shall determine
the number of such projects to be located in privately owned  hotels  in
such  counties for the exclusive use of the hotel guests.  NOTWITHSTAND-
ING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION,
AN ADMISSION FEE SHALL NOT BE REQUIRED  FOR  ANY  DEMONSTRATION  PROJECT
AUTHORIZED  IN SUCH AREAS IN A GAMING FACILITY AS DEFINED IN SUBDIVISION
TWENTY-THREE OF SECTION THIRTEEN HUNDRED ONE OF THIS  CHAPTER.  PROVIDED
HOWEVER,  ON  ANY  DAY WHEN A REGIONAL HARNESS TRACK LOCATED IN SARATOGA
COUNTY CONDUCTS A LIVE RACE MEETING,  THE  DEMONSTRATION  FACILITY  WILL
PREDOMINANTLY  DISPLAY THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK. IN
THE EVENT OF A CONFLICT WITH THE BROADCAST OF  THE  LIVE  VIDEO  FROM  A
FRANCHISE  CORPORATION RACETRACK, THE DEMONSTRATION PROJECT FACILITY MAY
CHOOSE TO SHOW THE FRANCHISE  CORPORATION  SIGNAL  INSTEAD  AND  SHOW  A
REPLAY  OF THE REGIONAL HARNESS TRACK RACE MEETING IMMEDIATELY FOLLOWING
COMPLETION OF THE FRANCHISE CORPORATION RACE.
  § 6. 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.
  § 7. 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.