The New York State Senate

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

                                  7900

                            I N  S E N A T E

                              March 7, 2018
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Racing, Gaming and  Wager-
  ing

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) "Casino" means a licensed gaming facility  at  which  gambling  is
conducted  pursuant  to  the  provisions of this article OR THE AGENT OF
SUCH LICENSED GAMING FACILITY;
  [(b)] (E) "Commission" means the commission  established  pursuant  to
section one hundred two of this chapter;
  [(c)]  (F)  "Collegiate  sport  or  athletic  event"  means a sport or
athletic event offered or sponsored by or played in  connection  with  a

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD14923-02-8

S. 7900                             2

public  or  private  institution that offers educational services beyond
the secondary level;
  (G)  "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL-
TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH
SPORTS WAGERING CONDUCTED PURSUANT TO  THIS  SECTION  AND  INCLUDES  THE
SETTING  AND  ADJUSTMENT  OF  BETTING  LINES, POINT SPREADS, OR ODDS AND
WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION;
  [(d)] (H) "HIGH SCHOOL SPORT OR  ATHLETIC  EVENT"  MEANS  A  SPORT  OR
ATHLETIC  EVENT  OFFERED  OR SPONSORED BY OR PLAYED IN CONNECTION WITH A
PUBLIC OR PRIVATE INSTITUTION THAT  OFFERS  EDUCATION  SERVICES  AT  THE
SECONDARY LEVEL;
  (I)  "HORSE  RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
IN NEW YORK STATE SUBJECT TO THE  PROVISIONS  OF  ARTICLES  TWO,  THREE,
FOUR,  FIVE,  SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR
ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH  IF  CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
  (J)  "IN-PLAY  SPORTS  WAGER"  MEANS A SPORTS WAGER PLACED ON A SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
  (K) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO  SPORTS  POOL
WITH ANOTHER CASINO SPORTS POOL;
  (L) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (M) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION  OF  HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE  BY
ANY   ELECTRONIC   MEANS  INCLUDING  MOBILE  APPLICATIONS  AND  INTERNET
WEBSITES;
  (N) "OFFICIAL LEAGUE DATA" MEANS STATISTICS,  RESULTS,  OUTCOMES,  AND
OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE
RELEVANT  SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE
SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
  (O) "Operator" means a casino which has elected to  operate  a  sports
pool;
  [(e)]  (P)  "Professional  sport  or athletic event" means an event at
which two or more persons participate in sports or athletic  events  and
receive  compensation  in  excess  of  actual expenses for their partic-
ipation in such event;
  (Q) "PROHIBITED SPORTS BETTOR" MEANS:
  (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
  (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
  (III) ANY CASINO GAMING OR NON-GAMING  EMPLOYEE  AT  THE  CASINO  THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
  (IV)  ANY  CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR OFFICER OR
EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A  CASINO  IF
SUCH  PERSON  IS  DIRECTLY  INVOLVED  IN THE OPERATION OR OBSERVATION OF
SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
PAYMENTS;
  (V)  ANY  PERSON  SUBJECT  TO  A  CONTRACT WITH THE COMMISSION IF SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;
  (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;

S. 7900                             3

  (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC  CONFIDENTIAL  INFORMA-
TION ABOUT SPORTS WAGERING;
  (VIII)  ANY  AMATEUR  OR  PROFESSIONAL  ATHLETE IF THE SPORTS WAGER IS
BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY  THE  ATHLETE'S  SPORTS
GOVERNING BODY;
  (IX)  ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE
UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR  OFFICIAL  OF  A  SPORTS
GOVERNING  BODY,  IF  THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
  (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN  OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
  (XI) ANY MINOR;
  [(f)]  (R)  "Prohibited  sports  event" means any [collegiate sport or
athletic event that takes place in New York or a sport or athletic event
in which any New York college team participates regardless of where  the
event takes place] HIGH SCHOOL SPORT OR ATHLETIC EVENT;
  [(g)]  (S)  "Sports  event"  means  any professional sport or athletic
event and any collegiate sport or athletic event,  except  a  prohibited
sports event OR A HORSE RACING EVENT;
  [(h)]   (T)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (U) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
  (i)]  (V) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY
AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS  WAGER-
ING OFFERED BY SUCH CASINO;
  (W) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES AND
MOBILE  DEVICE  APPLICATIONS.  THE TERM "SPORTS WAGERING" SHALL INCLUDE,
BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS,  OVER-UN-
DER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY
BETS, PROPOSITION BETS AND STRAIGHT BETS;
  (X) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL  OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF  ALL  SUMS
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO  SPORTS  BETTORS  SHALL  NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF
EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE  COMMISSION  ON  WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE  TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY
PROMOTIONAL GAMING CREDIT SHALL NOT  BE  TAXABLE  FOR  THE  PURPOSES  OF
DETERMINING SPORTS WAGERING GROSS REVENUE;
  (Y)  "Sports  wagering  lounge" means an area wherein a sports pool is
operated;
  (Z) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER  THAT  IS  DETERMINED
SOLELY  BY  THE  FINAL  SCORE  OR  FINAL OUTCOME OF THE SPORTS EVENT AND
PLACED BEFORE THE SPORTS EVENT HAS BEGUN;
  (AA) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER; AND
  (BB) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER  A
TIER ONE NOR A TIER TWO SPORTS WAGER.

S. 7900                             4

  2.  No  gaming facility may conduct sports wagering until such time as
there has been a change in federal law authorizing such or upon a ruling
of a court of competent jurisdiction that such activity is lawful.
  3.  (a) In addition to authorized gaming activities, a licensed gaming
facility may when authorized by subdivision two of this section  operate
a sports pool upon the approval of the commission and in accordance with
the  provisions  of  this section and applicable regulations promulgated
pursuant to this article. The commission shall hear and decide  promptly
and  in  reasonable  order  all  applications for a license to operate a
sports pool, shall have the general responsibility for  the  implementa-
tion  of  this section and shall have all other duties specified in this
section with regard to the operation of a sports pool.  The  license  to
operate a sports pool shall be in addition to any other license required
to  be  issued  to  operate  a  gaming facility. No license to operate a
sports pool shall be issued by the commission to any  entity  unless  it
has  established  its  financial stability, integrity and responsibility
and its good character, honesty and integrity.
  No later than five years after the date of the issuance of  a  license
and  every  five  years  thereafter or within such lesser periods as the
commission may direct, a licensee shall submit to  the  commission  such
documentation  or  information  as  the  commission  may  by  regulation
require, to demonstrate to the satisfaction of the executive director of
the commission that the licensee continues to meet the  requirements  of
the law and regulations.
  (b)  A  sports  pool  shall  be  operated  in a sports wagering lounge
located at a casino.  The  lounge  shall  conform  to  all  requirements
concerning  square  footage,  design,  equipment,  security measures and
related matters which the commission shall by regulation prescribe.
  (c) The operator of a sports pool shall establish or display the  odds
at which wagers may be placed on sports events.
  (d) An operator shall accept wagers on sports events only from persons
physically  present  in  the  sports  wagering lounge, OR THROUGH MOBILE
SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED  SIXTY-SEV-
EN-A  OF  THIS TITLE. A person placing a wager shall be at least twenty-
one years of age.
  (e) AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE  AUTHORIZED
SPORTS  POOL  PLACES  SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR
POOLS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSION.  A  SPORTS  POOL
THAT  PLACES  A  LAYOFF  BET  SHALL INFORM THE SPORTS POOL ACCEPTING THE
WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE
ITS IDENTITY.
  (F) AN OPERATOR MAY UTILIZE GLOBAL RISK  MANAGEMENT  PURSUANT  TO  THE
APPROVAL OF THE COMMISSION.
  (G)  An  operator  shall not admit into the sports wagering lounge, or
accept wagers from, any person whose name appears on the exclusion list.
  [(f)] (H) The holder of  a  license  to  operate  a  sports  pool  may
contract  with  [an  entity]  ONE  OR  MORE AGENTS to conduct ANY OR ALL
ASPECTS OF that operation, OR THE OPERATION OF  MOBILE  SPORTS  WAGERING
OFFERED  PURSUANT  TO  SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS
TITLE, INCLUDING BUT  NOT  LIMITED  TO  BRAND,  MARKETING  AND  CUSTOMER
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.

S. 7900                             5

  [(g)] (I) If any provision of this article or its application  to  any
person  or circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this  article  which  can  be  given
effect without the invalid provision or application, and to this end the
provisions of this article are severable.
  4.  (a)  All  persons employed directly in wagering-related activities
conducted within a sports wagering lounge shall be licensed as a  casino
key  employee  or  registered as a gaming employee, as determined by the
commission. All other employees who are working in the  sports  wagering
lounge  may  be required to be registered, if appropriate, in accordance
with regulations of the commission.
  (b) Each operator of a sports pool shall designate one or more  casino
key  employees  who shall be responsible for the operation of the sports
pool. At least one such casino key employee shall  be  on  the  premises
whenever sports wagering is conducted.
  5.  Except as otherwise provided by this article, the commission shall
have the authority to regulate sports pools and the  conduct  of  sports
wagering under this article to the same extent that the commission regu-
lates  other  gaming.  No casino shall be authorized to operate a sports
pool unless it has produced information, documentation,  and  assurances
concerning  its  financial  background  and  resources,  including  cash
reserves, that are sufficient to demonstrate that it has  the  financial
stability,  integrity,  and  responsibility to operate a sports pool. In
developing rules and regulations  applicable  to  sports  wagering,  the
commission  shall  examine  the  regulations implemented in other states
where sports wagering is conducted and shall,  as  far  as  practicable,
adopt  a  similar  regulatory framework. The commission shall promulgate
regulations necessary to carry  out  the  provisions  of  this  section,
including, but not limited to, regulations governing the:
  (a)  amount  of  cash  reserves to be maintained by operators to cover
winning wagers;
  (b) acceptance of wagers on a series of sports events;
  (c) maximum wagers which may be accepted by an operator from  any  one
patron on any one sports event;
  (d) type of wagering tickets which may be used;
  (e) method of issuing tickets;
  (f) method of accounting to be used by operators;
  (g) types of records which shall be kept;
  (h) use of credit and checks by patrons;
  (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
  (J) THE USE OF GLOBAL RISK MANAGEMENT;
  (K) type of system for wagering; and
  [(j)] (L) protections for a person placing a wager.
  6.  Each  operator  shall  adopt  comprehensive  house rules governing
sports  wagering  transactions  with  its  [patrons]  AUTHORIZED  SPORTS
BETTORS.  The  rules  shall  specify  the  amounts to be paid on winning
wagers and the effect of schedule changes.   The house  rules,  together
with  any  other  information the commission deems appropriate, shall be
conspicuously displayed in the sports wagering lounge  and  included  in
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;

S. 7900                             6

  (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
  (III)  THE  TOTAL  AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY
THE CASINO;
  (IV) THE TOTAL AMOUNT CONTRIBUTED TO THE SPORT BETTING INTEGRITY  FUND
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V)  THE  TOTAL  AMOUNT  OF  WAGERS  RECEIVED ON EACH SPORTS GOVERNING
BODY'S SPORTING EVENTS;
  (VI) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT  REQUESTED  TO
EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND
  (VII)  ANY  ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE  COMMISSION  SHALL
BE  AUTHORIZED  TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT ANY TIME,
TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE INFORMATION PROVIDED BY ALL CASINOS PURSUANT TO  PARAGRAPH  (A)  OF
THIS  SUBDIVISION,  WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE
NO LATER THAN ONE  HUNDRED  EIGHTY  DAYS  AFTER  THE  DEADLINE  FOR  THE
SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A).
  8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
NO  OFFERING  SPORTS  WAGERING  SHALL  REMIT  TO THE COMMISSION A SPORTS
WAGERING INTEGRITY FEE OF UP TO ONE-QUARTER OF ONE PERCENT OF THE AMOUNT
WAGERED ON SPORTS EVENTS, HOWEVER, IN NO CASE SHALL THE INTEGRITY FEE BE
GREATER THAN TWO PERCENT OF THE CASINO'S SPORTS WAGERING GROSS  REVENUE.
THE  FEE  SHALL  BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON
WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF  WAGERING  DURING  THE
REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  SPORT GOVERNING BODY'S SPORTS
EVENTS.
  (B) NO LATER THAN THE THIRTIETH  OF  APRIL  OF  EACH  YEAR,  A  SPORTS
GOVERNING  BODY  MAY  SUBMIT  A  CLAIM FOR DISBURSEMENT OF THE INTEGRITY
FUNDS REMITTED BY CASINOS IN THE PREVIOUS  CALENDAR  YEAR  IN  PRO  RATA
PROPORTION OF THE TOTAL AMOUNT WAGERED ON THEIR RESPECTIVE SPORTS EVENTS
TO  REIMBURSE THE SPORTS GOVERNING BODY FOR EXPENSES INCURRED FOR INTEG-
RITY OPERATIONS.  ELIGIBLE EXPENSES SHALL INCLUDE, BUT  NOT  BE  LIMITED
TO, INTEGRITY MONITORING EXPENSES, EXPENSES INCURRED RELATED TO INTEGRI-
TY  INVESTIGATIONS,  PUBLIC RELATIONS EXPENSES ASSOCIATED WITH INTEGRITY
ISSUES, AND ANY OTHER ELIGIBLE EXPENSES APPROVED BY THE COMMISSION.
  (C) EACH SPORTS GOVERNING BODY WHICH RECEIVES IN EXCESS OF FIFTY-THOU-
SAND DOLLARS ANNUALLY FROM THE INTEGRITY FEE  SHALL  ANNUALLY  SUBMIT  A
REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I) THE TOTAL AMOUNT OF INTEGRITY FUND REIMBURSEMENT RECEIVED FROM NEW
YORK;
  (II) A DETAILED SUMMARY OF THE FINAL DISPOSITIONS OF INTEGRITY  INVES-
TIGATIONS WHERE IT WAS DETERMINED THAT MISCONDUCT TOOK PLACE;
  (III)  ANY  ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  (D) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE  COMMISSION  SHALL
BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY SPORTS GOVERNING BODY,
AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  (E) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE  INFORMATION  PROVIDED  BY  ALL SPORTS GOVERNING BODIES PURSUANT TO
PARAGRAPH (C) OF THIS SUBDIVISION,  WHICH  SHALL  BE  PUBLISHED  ON  THE
COMMISSION'S  WEBSITE  NO  LATER  THAN ONE HUNDRED EIGHTY DAYS AFTER THE

S. 7900                             7

DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN  PARA-
GRAPH (C) OF THIS SUBDIVISION.
  (F)  AT THE END OF THE YEAR, ANY UNCLAIMED INTEGRITY FEE REVENUE SHALL
BE DISTRIBUTED TO THE SPORTS GOVERNING BODIES  WHICH  WERE  APPROVED  TO
RECEIVE FUNDING, ON A PRO RATA BASIS.
  9. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI-
NOS  SHALL  PAY  A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR
SPORTS WAGERING GROSS REVENUE.
  10. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING  REVENUE  FUND
ESTABLISHED  PURSUANT  TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE
LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY  THIS  SECTION;  ANY
INTEREST  AND  PENALTIES  IMPOSED  BY  THE  COMMISSION RELATING TO THOSE
TAXES; ALL PENALTIES LEVIED AND COLLECTED BY  THE  COMMISSION;  AND  THE
APPROPRIATE  FUNDS,  CASH  OR PRIZES FORFEITED FROM SPORTS WAGERING. THE
COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
FIVE  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES,  UNDER  SUCH  CONDI-
TIONS,  AND  IN  SUCH  DEPOSITORIES  AS SHALL BE PRESCRIBED BY THE STATE
COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE  STATE
COMMERCIAL  GAMING  REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY
REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE
TENTH DAY OF EACH MONTH, WITH RESPECT TO  GROSS  REVENUES  AND  DEPOSITS
RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
  11.  THE  COMMISSION  MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A
CASINO, AT SUCH TIMES AND INTERVALS AS IT  DEEMS  APPROPRIATE,  FOR  THE
PURPOSE  OF  DETERMINING  THE  SUFFICIENCY  OF TAX PAYMENTS. IF A RETURN
REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN
WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR  INSUF-
FICIENT  WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER-
MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN  TO
THE  CASINO  LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL
FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS
ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING  NOTICE  OF  SUCH  DETERMI-
NATION,  SHALL  APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH
THE REGULATIONS OF THE COMMISSION.
  12. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY  SPORTS
OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER.  NOTHING IN THIS
SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE  FANTASY  SPORTS
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-

S. 7900                             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. IN THE EVENT  THAT
THE  COMMISSION  APPROVES  THE  LOCATION  OF  SELF-SERVICE MOBILE SPORTS
BETTING KIOSKS ON THE PREMISES OF AFFILIATES IN  ACCORDANCE  WITH  PARA-
GRAPH  (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A
OF THIS CHAPTER, SUCH KIOSKS SHALL NOT BE ALLOWED TO  OFFER  PARI-MUTUEL
WAGERING ON HORSE RACING EVENTS.
  14.  A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO RESTRICT, LIMIT, OR  EXCLUDE  WAGERING  ON  ITS  SPORTING  EVENTS  BY
PROVIDING  NOTICE  IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE.
UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE  REQUEST  IN
GOOD  FAITH,  SEEK  INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE
COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH
SPORTS WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS  GOVERN-
ING  BODY  SHALL  BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER
PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH  THE  REGU-
LATIONS  OF  THE  COMMISSION.  OFFERING  OR  TAKING  WAGERS  CONTRARY TO
RESTRICTIONS PROMULGATED BY  THE  COMMISSION  IS  A  VIOLATION  OF  THIS
SECTION.  IN  THE  EVENT THAT THE REQUEST IS IN RELATION TO AN EMERGENCY
SITUATION, THE EXECUTIVE DIRECTOR  OF  THE  COMMISSION  MAY  TEMPORARILY
PROHIBIT  THE  SPECIFIC  WAGER  IN QUESTION UNTIL THE COMMISSION HAS THE
OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE.
  15. (A) THE COMMISSION SHALL  DESIGNATE  THE  DIVISION  OF  THE  STATE
POLICE  TO  HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE
COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A  BETTING  OUTCOME  OF  A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
  (B)  THE  COMMISSION  AND  CASINOS SHALL COOPERATE WITH INVESTIGATIONS
CONDUCTED BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT  AGENCIES,
INCLUDING  BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF
ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES  RELATING  TO
PERSONS  PLACING  WAGERS; PROVIDED, HOWEVER, THAT THE CASINO BE REQUIRED
TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS
BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO  DO  SO
BY  THE  COMMISSION  OR  A  LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT
JURISDICTION.
  (C) CASINOS SHALL IMMEDIATELY REPORT TO THE COMMISSION ANY INFORMATION
RELATING TO:
  (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;

S. 7900                             9

  (IV)  ANY  OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING
EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH  FIXING;
AND
  (V)  SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS
DERIVED FROM ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR  LAUNDER  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  USING  AGENTS  TO PLACE WAGERS, USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
  THE COMMISSION SHALL ALSO IMMEDIATELY REPORT INFORMATION  RELATING  TO
CONDUCT  DESCRIBED  IN  SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (D) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS  REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  16.  CASINOS  SHALL USE WHATEVER DATA SOURCE THEY DEEM APPROPRIATE FOR
DETERMINING THE RESULT OF SPORTS  WAGERING  INVOLVING  TIER  ONE  SPORTS
WAGERS. CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGER-
ING  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. A SPORTS GOVERNING BODY MAY NOTI-
FY  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 CASI-
NOS 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. NO CASINO SHALL ENTER INTO AN AGREEMENT  WITH  A  SPORTS
GOVERNING  BODY  TO  BE THE EXCLUSIVE RECIPIENT OF THEIR OFFICIAL LEAGUE
DATA.
  17. (A) CASINOS SHALL MAINTAIN RECORDS OF ALL BETS AND WAGERS  PLACED,
INCLUDING  PERSONALLY  IDENTIFIABLE  INFORMATION  OF  THE  MOBILE SPORTS
WAGERING BETTOR, AMOUNT AND TYPE  OF  BET,  TIME  THE  BET  WAS  PLACED,
LOCATION  OF THE BET, INCLUDING IP ADDRESS IF APPLICABLE, THE OUTCOME OF
THE  BET,  RECORDS  OF  ABNORMAL  BETTING  ACTIVITY,  AND  VIDEO  CAMERA
RECORDINGS  IN  THE  CASE  OF  IN-PERSON WAGERS FOR AT LEAST THREE YEARS
AFTER THE SPORTING  EVENT  OCCURS  AND  MAKE  SUCH  DATA  AVAILABLE  FOR
INSPECTION UPON REQUEST OF THE COMMISSION OR AS REQUIRED BY COURT ORDER.
  (B)  IF A SPORTS GOVERNING BODY HAS NOTIFIED THE COMMISSION THAT REAL-
TIME INFORMATION SHARING FOR WAGERS PLACED ON SPORTING EVENTS IS  NECES-
SARY  AND  DESIRABLE,  CASINOS SHALL SHARE IN REAL TIME, AT THE ACCOUNT-
LEVEL, AND IN PSEUDONYMOUS FORM, THE INFORMATION REQUIRED TO BE RETAINED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION (OTHER THAN  VIDEO  FILES)
WITH  THE  COMMISSION,  AND  THE COMMISSION SHALL SHARE IN REAL TIME THE
INFORMATION WITH THE SPORTS GOVERNING BODY OR ITS DESIGNEE WITH  RESPECT
TO WAGERS ON ITS SPORTING EVENTS.
  (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
MATION.
  18.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  19. SPORTS WAGERING CONDUCTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS
SECTION IS HEREBY AUTHORIZED.
  20.  THE  CONDUCT  OF  SPORTS WAGERING IN VIOLATION OF THIS SECTION IS
PROHIBITED.

S. 7900                            10

  21. 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. AS  USED  IN  THIS  SECTION,  THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "AFFILIATE"  MEANS  ANY OFF-TRACK BETTING CORPORATION, FRANCHISED
CORPORATION, OR RACE TRACK LICENSED PURSUANT TO THE RACING,  PARI-MUTUEL
WAGERING  AND  BREEDING  LAW,  OR AN OPERATOR OF VIDEO LOTTERY GAMING AT
AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE
TAX LAW, WHICH HAS A MOBILE SPORTS  WAGERING  AGREEMENT  WITH  A  CASINO
PURSUANT TO THIS SECTION;
  (B)  "AGENT"  MEANS  AN  ENTITY  THAT  IS  PARTY  TO A CONTRACT WITH A
LICENSED GAMING FACILITY AUTHORIZED TO OPERATE  A  SPORTS  POOL  AND  IS
APPROVED  BY  THE  COMMISSION TO OPERATE A SPORTS POOL ON BEHALF OF SUCH
LICENSED GAMING FACILITY;
  (C) "AUTHORIZED SPORTS BETTOR" MEANS AN INDIVIDUAL WHO  IS  PHYSICALLY
PRESENT  IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A PROHIB-
ITED SPORTS BETTOR, THAT PARTICIPATES IN SPORTS WAGERING  OFFERED  BY  A
CASINO.  THE  INTERMEDIATE ROUTING OF ELECTRONIC DATA IN CONNECTION WITH
MOBILE SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS  IN
WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE;
  (D)  "CASINO"  MEANS  A  LICENSED GAMING FACILITY AT WHICH GAMBLING IS
CONDUCTED PURSUANT TO THE PROVISIONS OF THIS ARTICLE  OR  THE  AGENT  OF
SUCH LICENSED GAMING FACILITY;
  (E)  "COLLEGIATE  SPORT  OR  ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC
EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A  PUBLIC  OR
PRIVATE  INSTITUTION THAT OFFERS EDUCATION SERVICES BEYOND THE SECONDARY
LEVEL;
  (F) "COMMISSION" MEANS THE COMMISSION ESTABLISHED PURSUANT TO  SECTION
ONE HUNDRED TWO OF THIS CHAPTER;
  (G)  "HIGH  SCHOOL  SPORT OR ATHLETIC EVENT" MEANS A SPORT OR ATHLETIC
EVENT OFFERED OR SPONSORED BY OR PLAYED IN CONNECTION WITH A  PUBLIC  OR
PRIVATE  INSTITUTION  THAT  OFFERS  EDUCATION  SERVICES AT THE SECONDARY
LEVEL;
  (H) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC  EVENT  CONDUCTED
IN  NEW  YORK  STATE  SUBJECT  TO THE PROVISIONS OF ARTICLES TWO, THREE,
FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY  SPORT  OR
ATHLETIC  EVENT  CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
  (I) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (J) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO  MANAGE,  ADMINIS-
TER,  OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY
ANY  ELECTRONIC  MEANS  INCLUDING  MOBILE  APPLICATIONS   AND   INTERNET
WEBSITES;
  (K) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT-
FORM INCLUDING AN AGENT;
  (L) "PROFESSIONAL SPORT OR ATHLETIC EVENT" MEANS AN EVENT AT WHICH TWO
OR  MORE  PERSONS  PARTICIPATE  IN SPORTS OR ATHLETIC EVENTS AND RECEIVE

S. 7900                            11

COMPENSATION IN EXCESS OF ACTUAL EXPENSES  FOR  THEIR  PARTICIPATION  IN
SUCH EVENT;
  (M) "PROHIBITED SPORTS BETTOR" MEANS:
  (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
  (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
  (III)  ANY  CASINO  GAMING  OR  NON-GAMING EMPLOYEE AT THE CASINO THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
  (IV) ANY CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR  OFFICER  OR
EMPLOYEE  OF  A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF
SUCH PERSON IS DIRECTLY INVOLVED IN  THE  OPERATION  OR  OBSERVATION  OF
SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
PAYMENTS;
  (V) ANY PERSON SUBJECT TO A  CONTRACT  WITH  THE  COMMISSION  IF  SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;
  (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
OF  THE  SAME  HOUSEHOLD  IN  THE PRINCIPAL PLACE OF ABODE OF ANY OF THE
FOREGOING PERSONS AT THE SAME  CASINO  WHERE  THE  FOREGOING  PERSON  IS
PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
  (VII)  ANY  INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA-
TION ABOUT SPORTS WAGERING;
  (VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE  IF  THE  SPORTS  WAGER  IS
BASED  ON  ANY  SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS
GOVERNING BODY;
  (IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND  UMPIRE
UNION  PERSONNEL,  AND  EMPLOYEE  REFEREE, COACH OR OFFICIAL OF A SPORTS
GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY  SPORT  OR  ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
  (X)  ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
  (XI) ANY MINOR;
  (N) "PROHIBITED SPORTS EVENT" MEANS ANY HIGH SCHOOL SPORT OR  ATHLETIC
EVENT;
  (O)  "SPORTS EVENT" MEANS ANY PROFESSIONAL SPORT OR ATHLETIC EVENT AND
ANY COLLEGIATE SPORT OR  ATHLETIC  EVENT,  EXCEPT  A  PROHIBITED  SPORTS
EVENT;
  (P)  "SPORTS  GOVERNING  BODY"  MEANS THE ORGANIZATION THAT PRESCRIBES
FINAL RULES AND ENFORCES CODES OF CONDUCT WITH  RESPECT  TO  A  SPORTING
EVENT AND PARTICIPANTS THEREIN;
  (Q) "SPORTS POOL" MEANS THE BUSINESS OF ACCEPTING WAGERS ON ANY SPORTS
EVENT BY ANY SYSTEM OR METHOD OF WAGERING;
  (R)  "SPORTS  WAGER"  MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN
AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN  SPORTS  WAGERING
OFFERED BY SUCH CASINO;
  (S) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES AND
MOBILE  DEVICE  APPLICATIONS.  THE TERM "SPORTS WAGERING" SHALL INCLUDE,
BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS,  OVER-UN-
DER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY
BETS, PROPOSITION BETS AND STRAIGHT BETS; AND

S. 7900                            12

  (T) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL  OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF  ALL  SUMS
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO  SPORTS  BETTORS  SHALL  NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE; OR (II) IN THE CASE OF
EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE  COMMISSION  ON  WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE  TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY
PROMOTIONAL GAMING CREDITS SHALL NOT BE  TAXABLE  FOR  THE  PURPOSES  OF
DETERMINING SPORTS WAGERING GROSS REVENUE.
  2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A  MOBILE  SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY USE MULTIPLE MOBILE SPORTS WAGERING  PLATFORMS  PROVIDED  THAT  EACH
PLATFORM  HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO MAY
CONTRACT WITH ONE OR MORE INDEPENDENT OPERATORS TO  PROVIDE  ITS  MOBILE
SPORTS WAGERING PLATFORMS.
  (B)  REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS  REGISTERED  TO
OFFER  MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION
ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  (D) THE COMMISSION  SHALL  PROMULGATE  REGULATIONS  TO  IMPLEMENT  THE
PROVISIONS  OF  THIS  SECTION,  INCLUDING THE DEVELOPMENT OF THE INITIAL
FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE
FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK
STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE  PROTECTIONS
WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
  3.  IN  THE EVENT THAT A CASINO CONTRACTS WITH ONE OR MORE INDEPENDENT
OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING  PLATFORMS,  EACH  INDE-
PENDENT  ENTITY  SHALL  OBTAIN  A  LICENSE AS A CASINO VENDOR ENTERPRISE
PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE  SHALL  BE
ISSUED  PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED
TWENTY-SEVEN OF THIS ARTICLE AND  IN  ACCORDANCE  WITH  THE  REGULATIONS
PROMULGATED BY THE COMMISSION.
  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED ACCOUNT, 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-

S. 7900                            13

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;
  (VIII) IMPLEMENT MEASURES TO PROTECT THE PRIVACY AND  ONLINE  SECURITY
OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS;
  (IX)  OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT
HISTORY AND ACCOUNT DETAILS;
  (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT
AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH OPERATOR  AND  OTHERWISE
PROTECTED  FROM  CORPORATE  INSOLVENCY,  FINANCIAL  RISK, OR CRIMINAL OR
CIVIL ACTIONS AGAINST SUCH OPERATOR;
  (XI) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION  CONCERN-
ING  ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL-
FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING  FURTHER
INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND
  (XII)  ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS
EVENT.
  (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY  OPERATE,  PROMOTE,  OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E)  ADVERTISEMENTS  FOR  CONTESTS  AND  PRIZES OFFERED BY AN OPERATOR
SHALL NOT TARGET PROHIBITED SPORTS  BETTORS,  MINORS,  OR  SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING  PROGRAMS  FOR  ANY CONTEST AND ENSURE THAT MEASURES ARE IN PLACE TO
DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT  CHEATING,
INCLUDING  COLLUSION,  AND THE USE OF CHEATING DEVICES, INCLUDING USE OF
SOFTWARE PROGRAMS THAT SUBMIT SPORTS WAGERS UNLESS OTHERWISE APPROVED BY
THE COMMISSION.
  (G) OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON  THE
MAIN  PAGE  OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A COMPLAINT BY
AN AUTHORIZED SPORTS BETTOR AGAINST SUCH OPERATOR. AN  INITIAL  RESPONSE
SHALL  BE  GIVEN  BY  SUCH  OPERATOR TO SUCH BETTOR FILING THE COMPLAINT
WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL  BE  GIVEN  BY  SUCH
OPERATOR  TO  SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.

S. 7900                            14

  (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.
  5.  (A)  SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO  AGREEMENTS  WITH  AFFILIATES  TO  ALLOW  FOR  AUTHORIZED
BETTORS  TO  SIGN  UP TO CREATE AND FUND ACCOUNTS ON THEIR MOBILE SPORTS
WAGERING PLATFORM OR PLATFORMS.
  (B) AUTHORIZED SPORTS BETTORS MUST SIGN UP TO CREATE THEIR ACCOUNT  ON
A  MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE
OF A CASINO.
  (C) AUTHORIZED SPORTS BETTORS MAY DEPOSIT FUNDS IN THEIR ACCOUNT ON  A
MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF
A  CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY OTHER MEANS
APPROVED BY THE COMMISSION.
  (D) SUBJECT TO APPROVAL OF THE  COMMISSION,  AND  IN  ACCORDANCE  WITH
REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS MAY ENTER INTO AGREE-
MENTS  WITH  AFFILIATES  TO  LOCATE  SELF-SERVICE  MOBILE SPORTS BETTING
KIOSKS, WHICH ARE OWNED, OPERATED AND  MAINTAINED  BY  THE  CASINO,  AND
CONNECTED  VIA  THE  INTERNET  TO  THE  CASINO, UPON THE PREMISES OF THE
AFFILIATE.
  § 3. Section 104 of the racing, pari-mutuel wagering and breeding  law
is amended by adding a new subdivision 24 to read as follows:
  24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE.
  §  4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 237 of the laws  of  2016,  is
amended to read as follows:
  15.  "Prohibited  sports  event"  shall  mean any [collegiate sport or
athletic event, any] high school sport or athletic event  or  any  horse
racing event.
  §  5. Severability clause. If any provision of this act or application
thereof shall for any reason be  adjudged  by  any  court  of  competent
jurisdiction  to  be invalid, such judgment shall not affect, impair, or
invalidate the remainder of the act, but shall be confined in its opera-
tion to the provision thereof directly involved in  the  controversy  in
which the judgment shall have been rendered.
  §  6.  This  act  shall  take  effect on the same date and in the same
manner as section 1367 of the racing, pari-mutuel wagering and  breeding
law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
of 2013, takes effect.

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

                                 7900--A

                            I N  S E N A T E

                              March 7, 2018
                               ___________

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

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

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

  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)  "Casino"  means  a  licensed gaming facility at which gambling is
conducted pursuant to the provisions of this article  OR  THE  AGENT  OF
SUCH LICENSED GAMING FACILITY;

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

                                                           LBD14923-03-8

S. 7900--A                          2

  [(b)]  (E)  "Commission"  means the commission established pursuant to
section one hundred two of this chapter;
  [(c)]  (F)  "Collegiate  sport  or  athletic  event"  means a sport or
athletic event offered or sponsored by or played in  connection  with  a
public  or  private  institution that offers educational services beyond
the secondary level;
  (G) "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT,  CONSUL-
TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH
SPORTS  WAGERING  CONDUCTED  PURSUANT  TO  THIS SECTION AND INCLUDES THE
SETTING AND ADJUSTMENT OF BETTING LINES,  POINT  SPREADS,  OR  ODDS  AND
WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION;
  [(d)]  (H)  "HIGH  SCHOOL  SPORT  OR  ATHLETIC EVENT" MEANS A SPORT OR
ATHLETIC EVENT OFFERED OR SPONSORED BY OR PLAYED IN  CONNECTION  WITH  A
PUBLIC  OR  PRIVATE  INSTITUTION  THAT  OFFERS EDUCATION SERVICES AT THE
SECONDARY LEVEL;
  (I) "HORSE RACING EVENT" MEANS ANY SPORT OR ATHLETIC  EVENT  CONDUCTED
IN  NEW  YORK  STATE  SUBJECT  TO THE PROVISIONS OF ARTICLES TWO, THREE,
FOUR, FIVE, SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY  SPORT  OR
ATHLETIC  EVENT  CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH IF CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
  (J) "IN-PLAY SPORTS WAGER" MEANS A SPORTS WAGER  PLACED  ON  A  SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
  (K)  "LAYOFF  BET" MEANS A SPORTS WAGER PLACED BY A CASINO SPORTS POOL
WITH ANOTHER CASINO SPORTS POOL;
  (L) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (M) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION OF HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO  MANAGE,  ADMINIS-
TER,  OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE BY
ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER;
  (N) "OFFICIAL LEAGUE DATA" MEANS STATISTICS,  RESULTS,  OUTCOMES,  AND
OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE
RELEVANT  SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE
SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
  (O) "Operator" means a casino which has elected to  operate  a  sports
pool;
  [(e)]  (P)  "Professional  sport  or athletic event" means an event at
which two or more persons participate in sports or athletic  events  and
receive  compensation  in  excess  of  actual expenses for their partic-
ipation in such event;
  (Q) "PROHIBITED SPORTS BETTOR" MEANS:
  (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
  (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
  (III) ANY CASINO GAMING OR NON-GAMING  EMPLOYEE  AT  THE  CASINO  THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
  (IV)  ANY  CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR OFFICER OR
EMPLOYEE OF A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A  CASINO  IF
SUCH  PERSON  IS  DIRECTLY  INVOLVED  IN THE OPERATION OR OBSERVATION OF
SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
PAYMENTS;
  (V)  ANY  PERSON  SUBJECT  TO  A  CONTRACT WITH THE COMMISSION IF SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;

S. 7900--A                          3

  (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF  ABODE  OF  ANY  OF  THE
FOREGOING  PERSONS  AT  THE  SAME  CASINO  WHERE THE FOREGOING PERSON IS
PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
  (VII)  ANY  INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA-
TION ABOUT SPORTS WAGERING;
  (VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE  IF  THE  SPORTS  WAGER  IS
BASED  ON  ANY  SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS
GOVERNING BODY;
  (IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND  UMPIRE
UNION  PERSONNEL,  AND  EMPLOYEE  REFEREE, COACH OR OFFICIAL OF A SPORTS
GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY  SPORT  OR  ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
  (X)  ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
  (XI) ANY MINOR;
  [(f)] (R) "Prohibited sports event" means  any  [collegiate  sport  or
athletic event that takes place in New York or a sport or athletic event
in  which any New York college team participates regardless of where the
event takes place] HIGH SCHOOL SPORT OR ATHLETIC EVENT;
  [(g)] (S) "Sports event" means  any  professional  sport  or  athletic
event  and  any  collegiate sport or athletic event, except a prohibited
sports event OR A HORSE RACING EVENT;
  [(h)]  (T)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION   THAT
PRESCRIBES  FINAL  RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (U) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
  (i)] (V) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID  BY
AN  AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS WAGER-
ING OFFERED BY SUCH CASINO;
  (W) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS,  BY  ANY
SYSTEM  OR  METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON
COMMUNICATION AND ELECTRONIC  COMMUNICATION  THROUGH  INTERNET  WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
THE  TERM  "SPORTS  WAGERING"  SHALL  INCLUDE,  BUT  IS  NOT LIMITED TO,
SINGLE-GAME BETS, TEASER  BETS,  PARLAYS,  OVER-UNDER  BETS,  MONEYLINE,
POOLS,  EXCHANGE  WAGERING,  IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION
BETS AND STRAIGHT BETS;
  (X) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS  EVENTS
THAT  AN  OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO SPORTS BETTORS SHALL NOT INCLUDE THE CASH  EQUIVALENT  VALUE  OF  ANY
MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF
EXCHANGE  WAGERING  PURSUANT  TO THIS SECTION, THE COMMISSION ON WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF  ANY
PROMOTIONAL  GAMING  CREDIT  SHALL  NOT  BE  TAXABLE FOR THE PURPOSES OF
DETERMINING SPORTS WAGERING GROSS REVENUE;
  (Y) "Sports wagering lounge" means an area wherein a  sports  pool  is
operated;

S. 7900--A                          4

  (Z)  "TIER  ONE  SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
  (AA) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER; AND
  (BB)  "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER A
TIER ONE NOR A TIER TWO SPORTS WAGER.
  2. No gaming facility may conduct sports wagering until such  time  as
there has been a change in federal law authorizing such or upon a ruling
of a court of competent jurisdiction that such activity is lawful.
  3.  (a) In addition to authorized gaming activities, a licensed gaming
facility may when authorized by subdivision two of this section  operate
a sports pool upon the approval of the commission and in accordance with
the  provisions  of  this section and applicable regulations promulgated
pursuant to this article. The commission shall hear and decide  promptly
and  in  reasonable  order  all  applications for a license to operate a
sports pool, shall have the general responsibility for  the  implementa-
tion  of  this section and shall have all other duties specified in this
section with regard to the operation of a sports pool.  The  license  to
operate a sports pool shall be in addition to any other license required
to  be  issued  to  operate  a  gaming facility. No license to operate a
sports pool shall be issued by the commission to any  entity  unless  it
has  established  its  financial stability, integrity and responsibility
and its good character, honesty and integrity.
  No later than five years after the date of the issuance of  a  license
and  every  five  years  thereafter or within such lesser periods as the
commission may direct, a licensee shall submit to  the  commission  such
documentation  or  information  as  the  commission  may  by  regulation
require, to demonstrate to the satisfaction of the executive director of
the commission that the licensee continues to meet the  requirements  of
the law and regulations.
  (b)  A  sports  pool  shall  be  operated  in a sports wagering lounge
located at a casino.  The  lounge  shall  conform  to  all  requirements
concerning  square  footage,  design,  equipment,  security measures and
related matters which the commission shall by regulation prescribe.
  (c) The operator of a sports pool shall establish or display the  odds
at which wagers may be placed on sports events.
  (d) An operator shall accept wagers on sports events only from persons
physically  present  in  the  sports  wagering lounge, OR THROUGH MOBILE
SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED  SIXTY-SEV-
EN-A  OF  THIS TITLE. A person placing a wager shall be at least twenty-
one years of age.
  (e) AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE  AUTHORIZED
SPORTS  POOL  PLACES  SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR
POOLS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSION.  A  SPORTS  POOL
THAT  PLACES  A  LAYOFF  BET  SHALL INFORM THE SPORTS POOL ACCEPTING THE
WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE
ITS IDENTITY.
  (F) AN OPERATOR MAY UTILIZE GLOBAL RISK  MANAGEMENT  PURSUANT  TO  THE
APPROVAL OF THE COMMISSION.
  (G)  An  operator  shall not admit into the sports wagering lounge, or
accept wagers from, any person whose name appears on the exclusion list.
  [(f)] (H) The holder of  a  license  to  operate  a  sports  pool  may
contract  with  [an  entity]  ONE  OR  MORE AGENTS to conduct ANY OR ALL
ASPECTS OF that operation, OR THE OPERATION OF  MOBILE  SPORTS  WAGERING
OFFERED  PURSUANT  TO  SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS
TITLE, INCLUDING BUT  NOT  LIMITED  TO  BRAND,  MARKETING  AND  CUSTOMER

S. 7900--A                          5

SERVICE,  in  accordance  with  the regulations of the commission. [That
entity] EACH AGENT shall obtain a license as a casino vendor  enterprise
prior  to  the execution of any such contract, and such license shall be
issued  pursuant to the provisions of section one thousand three hundred
twenty-seven of this article and  in  accordance  with  the  regulations
promulgated by the commission.
  [(g)]  (I)  If any provision of this article or its application to any
person or circumstance is held invalid, the invalidity shall not  affect
other  provisions  or  applications  of  this article which can be given
effect without the invalid provision or application, and to this end the
provisions of this article are severable.
  4. (a) All persons employed directly  in  wagering-related  activities
conducted  within a sports wagering lounge shall be licensed as a casino
key employee or registered as a gaming employee, as  determined  by  the
commission.  All  other employees who are working in the sports wagering
lounge may be required to be registered, if appropriate,  in  accordance
with regulations of the commission.
  (b)  Each operator of a sports pool shall designate one or more casino
key employees who shall be responsible for the operation of  the  sports
pool.  At  least  one  such casino key employee shall be on the premises
whenever sports wagering is conducted.
  5. Except as otherwise provided by this article, the commission  shall
have  the  authority  to regulate sports pools and the conduct of sports
wagering under this article to the same extent that the commission regu-
lates other gaming. No casino shall be authorized to  operate  a  sports
pool  unless  it has produced information, documentation, and assurances
concerning  its  financial  background  and  resources,  including  cash
reserves,  that  are sufficient to demonstrate that it has the financial
stability, integrity, and responsibility to operate a  sports  pool.  In
developing  rules  and  regulations  applicable  to sports wagering, the
commission shall examine the regulations  implemented  in  other  states
where  sports  wagering  is  conducted and shall, as far as practicable,
adopt a similar regulatory framework. The  commission  shall  promulgate
regulations  necessary  to  carry  out  the  provisions of this section,
including, but not limited to, regulations governing the:
  (a) amount of cash reserves to be maintained  by  operators  to  cover
winning wagers;
  (b) acceptance of wagers on a series of sports events;
  (c)  maximum  wagers which may be accepted by an operator from any one
patron on any one sports event;
  (d) type of wagering tickets which may be used;
  (e) method of issuing tickets;
  (f) method of accounting to be used by operators;
  (g) types of records which shall be kept;
  (h) use of credit and checks by patrons;
  (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
  (J) THE USE OF GLOBAL RISK MANAGEMENT;
  (K) type of system for wagering; and
  [(j)] (L) protections for a person placing a wager.
  6. Each operator  shall  adopt  comprehensive  house  rules  governing
sports  wagering  transactions  with  its  [patrons]  AUTHORIZED  SPORTS
BETTORS. The rules shall specify the  amounts  to  be  paid  on  winning
wagers  and  the  effect of schedule changes.  The house rules, together
with any other information the commission deems  appropriate,  shall  be
conspicuously  displayed  in  the sports wagering lounge and included in

S. 7900--A                          6

the terms and conditions of the  account  wagering  system,  and  copies
shall be made readily available to patrons.
  7. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED  SPORTS
BETTORS;
  (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
  (III)  THE  TOTAL  AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY
THE CASINO;
  (IV) THE TOTAL AMOUNT CONTRIBUTED TO THE SPORT BETTING INTEGRITY  FUND
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V)  THE  TOTAL  AMOUNT  OF  WAGERS  RECEIVED ON EACH SPORTS GOVERNING
BODY'S SPORTING EVENTS;
  (VI) THE TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT  REQUESTED  TO
EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND
  (VII)  ANY  ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE  COMMISSION  SHALL
BE  AUTHORIZED  TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT ANY TIME,
TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE INFORMATION PROVIDED BY ALL CASINOS PURSUANT TO  PARAGRAPH  (A)  OF
THIS  SUBDIVISION,  WHICH SHALL BE PUBLISHED ON THE COMMISSION'S WEBSITE
NO LATER THAN ONE  HUNDRED  EIGHTY  DAYS  AFTER  THE  DEADLINE  FOR  THE
SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A).
  8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
NO  OFFERING  SPORTS  WAGERING  SHALL  REMIT  TO THE COMMISSION A SPORTS
WAGERING INTEGRITY FEE OF UP TO ONE-QUARTER OF ONE PERCENT OF THE AMOUNT
WAGERED ON SPORTS EVENTS, HOWEVER, IN NO CASE SHALL THE INTEGRITY FEE BE
GREATER THAN TWO PERCENT OF THE CASINO'S SPORTS WAGERING GROSS  REVENUE.
THE  FEE  SHALL  BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON
WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF  WAGERING  DURING  THE
REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  SPORT GOVERNING BODY'S SPORTS
EVENTS.
  (B) NO LATER THAN THE THIRTIETH  OF  APRIL  OF  EACH  YEAR,  A  SPORTS
GOVERNING  BODY  MAY  SUBMIT  A  CLAIM FOR DISBURSEMENT OF THE INTEGRITY
FUNDS REMITTED BY CASINOS IN THE PREVIOUS  CALENDAR  YEAR  IN  PRO  RATA
PROPORTION OF THE TOTAL AMOUNT WAGERED ON THEIR RESPECTIVE SPORTS EVENTS
TO  REIMBURSE THE SPORTS GOVERNING BODY FOR EXPENSES INCURRED FOR INTEG-
RITY OPERATIONS.  ELIGIBLE EXPENSES SHALL INCLUDE, BUT  NOT  BE  LIMITED
TO, INTEGRITY MONITORING EXPENSES, EXPENSES INCURRED RELATED TO INTEGRI-
TY  INVESTIGATIONS,  PUBLIC RELATIONS EXPENSES ASSOCIATED WITH INTEGRITY
ISSUES, AND ANY OTHER ELIGIBLE EXPENSES APPROVED BY THE COMMISSION.
  (C) EACH SPORTS GOVERNING BODY WHICH RECEIVES IN EXCESS OF FIFTY-THOU-
SAND DOLLARS ANNUALLY FROM THE INTEGRITY FEE  SHALL  ANNUALLY  SUBMIT  A
REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I) THE TOTAL AMOUNT OF INTEGRITY FUND REIMBURSEMENT RECEIVED FROM NEW
YORK;
  (II) A DETAILED SUMMARY OF THE FINAL DISPOSITIONS OF INTEGRITY  INVES-
TIGATIONS WHERE IT WAS DETERMINED THAT MISCONDUCT TOOK PLACE;
  (III)  ANY  ADDITIONAL INFORMATION THAT THE COMMISSION DEEMS NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.

S. 7900--A                          7

  (D) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION DEEMS IT TO BE IN THE PUBLIC INTEREST, THE  COMMISSION  SHALL
BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY SPORTS GOVERNING BODY,
AT ANY TIME, TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  (E) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE  INFORMATION  PROVIDED  BY  ALL SPORTS GOVERNING BODIES PURSUANT TO
PARAGRAPH (C) OF THIS SUBDIVISION,  WHICH  SHALL  BE  PUBLISHED  ON  THE
COMMISSION'S  WEBSITE  NO  LATER  THAN ONE HUNDRED EIGHTY DAYS AFTER THE
DEADLINE FOR THE SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN  PARA-
GRAPH (C) OF THIS SUBDIVISION.
  (F)  AT THE END OF THE YEAR, ANY UNCLAIMED INTEGRITY FEE REVENUE SHALL
BE DISTRIBUTED TO THE SPORTS GOVERNING BODIES  WHICH  WERE  APPROVED  TO
RECEIVE FUNDING, ON A PRO RATA BASIS.
  9. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI-
NOS  SHALL  PAY  A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR
SPORTS WAGERING GROSS REVENUE.
  10. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING  REVENUE  FUND
ESTABLISHED  PURSUANT  TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE
LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY  THIS  SECTION;  ANY
INTEREST  AND  PENALTIES  IMPOSED  BY  THE  COMMISSION RELATING TO THOSE
TAXES; ALL PENALTIES LEVIED AND COLLECTED BY  THE  COMMISSION;  AND  THE
APPROPRIATE  FUNDS,  CASH  OR PRIZES FORFEITED FROM SPORTS WAGERING. THE
COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
FIVE  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES,  UNDER  SUCH  CONDI-
TIONS,  AND  IN  SUCH  DEPOSITORIES  AS SHALL BE PRESCRIBED BY THE STATE
COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE  STATE
COMMERCIAL  GAMING  REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY
REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE
TENTH DAY OF EACH MONTH, WITH RESPECT TO  GROSS  REVENUES  AND  DEPOSITS
RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
  11.  THE  COMMISSION  MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A
CASINO, AT SUCH TIMES AND INTERVALS AS IT  DEEMS  APPROPRIATE,  FOR  THE
PURPOSE  OF  DETERMINING  THE  SUFFICIENCY  OF TAX PAYMENTS. IF A RETURN
REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN
WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR  INSUF-
FICIENT  WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER-
MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN  TO
THE  CASINO  LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL
FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS
ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING  NOTICE  OF  SUCH  DETERMI-
NATION,  SHALL  APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH
THE REGULATIONS OF THE COMMISSION.
  12. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY  SPORTS
OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER.  NOTHING IN THIS
SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE  FANTASY  SPORTS

S. 7900--A                          8

OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS
WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS,  AUTHORIZATION
PURSUANT TO THIS SECTION.
  13.  A  CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF THIS CHAP-
TER, AND MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B)  OF  SUBDIVISION
ONE  OF  SECTION  THIRTEEN  HUNDRED FIFTY-FIVE OF THIS CHAPTER, SHALL BE
ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN  ACCORD-
ANCE  WITH  THEIR  LICENSE UNDER ARTICLE THREE OF THIS CHAPTER. NOTWITH-
STANDING SUBPARAGRAPH (II) OF PARAGRAPH C OF SUBDIVISION TWO OF  SECTION
ONE  THOUSAND  EIGHT  OF  THIS  CHAPTER, A CASINO LOCATED IN THE CITY OF
SCHENECTADY SHALL BE ALLOWED TO  OFFER  PARI-MUTUEL  WAGERING  ON  HORSE
RACING  EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF-
TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS  LOCATED.  ANY
OTHER  CASINO  SHALL  BE  ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE
RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL  OFF-
TRACK  BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED.  ANY
PHYSICAL LOCATION WHERE PARI-MUTUEL WAGERING ON HORSE RACING  EVENTS  IS
OFFERED BY A CASINO AND CONDUCTED BY A REGIONAL OFF-TRACK BETTING CORPO-
RATION  IN  ACCORDANCE  WITH  THIS  SUBDIVISION  SHALL BE DEEMED TO BE A
BRANCH LOCATION OF THE REGIONAL OFF-TRACK BETTING CORPORATION IN ACCORD-
ANCE WITH SECTION ONE THOUSAND EIGHT OF THIS  CHAPTER.    MOBILE  SPORTS
BETTING  KIOSKS LOCATED ON THE PREMISES OF AFFILIATES IN ACCORDANCE WITH
PARAGRAPH (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED SIXTY-SEV-
EN-A OF THIS CHAPTER SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL  WAGERING
ON HORSE RACING EVENTS.
  14.  A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO RESTRICT, LIMIT, OR  EXCLUDE  WAGERING  ON  ITS  SPORTING  EVENTS  BY
PROVIDING  NOTICE  IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE.
UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE  REQUEST  IN
GOOD  FAITH,  SEEK  INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE
COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH
SPORTS WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS  GOVERN-
ING  BODY  SHALL  BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER
PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH  THE  REGU-
LATIONS  OF  THE  COMMISSION.  OFFERING  OR  TAKING  WAGERS  CONTRARY TO
RESTRICTIONS PROMULGATED BY  THE  COMMISSION  IS  A  VIOLATION  OF  THIS
SECTION.  IN  THE  EVENT THAT THE REQUEST IS IN RELATION TO AN EMERGENCY
SITUATION, THE EXECUTIVE DIRECTOR  OF  THE  COMMISSION  MAY  TEMPORARILY
PROHIBIT  THE  SPECIFIC  WAGER  IN QUESTION UNTIL THE COMMISSION HAS THE
OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE.
  15. (A) THE COMMISSION SHALL  DESIGNATE  THE  DIVISION  OF  THE  STATE
POLICE  TO  HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE
COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A  BETTING  OUTCOME  OF  A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
  (B)  THE  COMMISSION  AND  CASINOS SHALL COOPERATE WITH INVESTIGATIONS
CONDUCTED BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT  AGENCIES,
INCLUDING  BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF
ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES  RELATING  TO
PERSONS  PLACING  WAGERS; PROVIDED, HOWEVER, THAT THE CASINO BE REQUIRED
TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS
BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO  DO  SO
BY  THE  COMMISSION  OR  A  LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT
JURISDICTION.
  (C) CASINOS SHALL IMMEDIATELY REPORT TO THE COMMISSION ANY INFORMATION
RELATING TO:

S. 7900--A                          9

  (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE  CASINO
IN CONNECTION WITH ITS OPERATIONS;
  (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
  (III)  ANY  POTENTIAL  BREACH  OF THE RELEVANT SPORTS GOVERNING BODY'S
INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO  SPORTS  WAGERING,  AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
  (IV)  ANY  OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING
EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH  FIXING;
AND
  (V)  SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS
DERIVED FROM ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR  LAUNDER  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  USING  AGENTS  TO PLACE WAGERS, USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
  THE COMMISSION SHALL ALSO IMMEDIATELY REPORT INFORMATION  RELATING  TO
CONDUCT  DESCRIBED  IN  SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (D) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS  REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  (E)  THE  COMMISSION,  BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES THEREOF TO ENABLE THE  SHARING  OF  INFORMATION  TO  FACILITATE
INTEGRITY  MONITORING  AND  THE  CONDUCT OF INVESTIGATIONS INTO ABNORMAL
BETTING ACTIVITY, MATCH  FIXING,  AND  OTHER  CONDUCT  THAT  CORRUPTS  A
BETTING  OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL
GAIN.
  16. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY  DEEM  APPROPRIATE
FOR  DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS
WAGERS.
  (B) CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGERING
INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT SPORTS GOVERNING  BODY
POSSESSES  A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE
FOR PURCHASE BY THE CASINOS ON COMMERCIALLY REASONABLE TERMS  AS  DETER-
MINED BY THE COMMISSION.
  (C)  A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO REQUIRE CASINOS TO  USE  OFFICIAL  LEAGUE  DATA  IN  SPORTS  WAGERING
INVOLVING  SPECIFIC  TIER THREE SPORTS WAGERS BY PROVIDING NOTICE IN THE
FORM AND MANNER AS THE  COMMISSION  MAY  REQUIRE.  UPON  RECEIVING  SUCH
NOTICE,  THE  COMMISSION  SHALL  REVIEW THE REQUEST, SEEK INPUT FROM THE
CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS  IT  APPROPRIATE,
PROMULGATE REGULATIONS TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA ON
SPORTS  WAGERING INVOLVING SUCH TIER THREE SPORTS WAGERS IF THE RELEVANT
SPORTS GOVERNING BODY POSSESSES A FEED  OF  OFFICIAL  LEAGUE  DATA,  AND
MAKES  SUCH  FEED  AVAILABLE FOR PURCHASE BY THE CASINOS ON COMMERCIALLY
REASONABLE TERMS AS DETERMINED BY THE COMMISSION.
  (D) WHEN DETERMINING WHETHER OR NOT A SUPPLIER OF OFFICIAL LEAGUE DATA
IS OFFERING COMMERCIALLY REASONABLE TERMS, THE COMMISSION SHALL CONSIDER
THE AMOUNT CHARGED BY THE SUPPLIER OF OFFICIAL  LEAGUE  DATA  TO  GAMING
OPERATORS  IN OTHER JURISDICTIONS. THIS INFORMATION SHALL BE PROVIDED TO
THE COMMISSION BY THE SUPPLIER OF OFFICIAL LEAGUE DATA UPON  REQUEST  OF
THE COMMISSION. ANY ENTITY PROVIDING DATA TO A CASINO FOR THE PURPOSE OF
TIER  TWO  SPORTS WAGERS, OTHER THAN A SUPPLIER OF OFFICIAL LEAGUE DATA,
SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE  AND  SUCH  LICENSE
SHALL BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE

S. 7900--A                         10

HUNDRED  TWENTY-SEVEN  OF  THIS ARTICLE AND IN ACCORDANCE WITH THE REGU-
LATIONS PROMULGATED BY THE COMMISSION.
  (E)  NO  CASINO  SHALL ENTER INTO AN AGREEMENT WITH A SPORTS GOVERNING
BODY OR AN ENTITY EXPRESSLY AUTHORIZED  TO  DISTRIBUTE  OFFICIAL  LEAGUE
DATA TO BE THE EXCLUSIVE RECIPIENT OF THEIR OFFICIAL LEAGUE DATA.
  (F)  IF  AN  ERROR  OCCURS IN THE PAYMENT OF A SPORTS WAGER THE CASINO
SHALL BEAR THE COST OF ANY OVERPAYMENT. IN THE EVENT OF UNDER-PAYMENT OR
NON-PAYMENT OF A WAGER ALLEGED BY AN AUTHORIZED SPORTS BETTOR  TO  BE  A
WINNING WAGER:
  (I)  THE  CASINO SHALL ACCEPT TIMELY CLAIMS, PAY EACH CLAIM, OR A PART
THEREOF, WHICH IT DETERMINES TO BE VALID; NOTICE SHALL BE GIVEN  TO  ANY
CLAIMANT WHOSE CLAIM IS REJECTED.
  (II) ANY AUTHORIZED SPORTS BETTOR WHOSE CLAIM IS REJECTED BY THE CASI-
NO  MAY,  WITHIN  FIFTEEN  DAYS  FROM  THE  DATE  NOTICE OF REJECTION IS
RECEIVED, REQUEST THE COMMISSION TO DETERMINE THE VALIDITY OF THE CLAIM.
THE FAILURE TO FILE SUCH A REQUEST WITH THE BOARD  WITHIN  FIFTEEN  DAYS
SHALL  CONSTITUTE  A  WAIVER  OF  THE  CLAIM,  PROVIDED THE CLAIMANT HAS
RECEIVED NOTICE OF A RIGHT TO APPEAL TO THE COMMISSION.
  (III) A HEARING BEFORE THE COMMISSION SHALL  BE  HELD  ON  EACH  CLAIM
TIMELY  FILED,  AND THE COMMISSION MAY DETERMINE A CLAIM TO BE VALID, IN
WHOLE OR IN PART, AND  THEREAFTER  ORDER  THE  CASINO  TO  MAKE  PAYMENT
ACCORDINGLY.  IN  DETERMINING  WHETHER  A  CLAIM IS VALID THE COMMISSION
SHALL UTILIZE THE STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA RELATING
TO A SPORTING EVENT THAT HAVE BEEN OBTAINED  FROM  THE  RELEVANT  SPORTS
GOVERNING  BODY.    ANY SUCH DETERMINATION SHALL BE FINAL AND BINDING ON
ALL PARTIES.
  (IV) CLAIMS NOT FILED WITH THE CASINO WITHIN THIRTY DAYS INCLUSIVE  OF
THE  DATE  ON  WHICH  THE  UNDER-PAYMENT  WAS DISCOVERED SHALL BE DEEMED
WAIVED, AND THE CASINO SHALL HAVE NO FURTHER LIABILITY THEREFOR.
  17. (A) CASINOS SHALL MAINTAIN RECORDS OF ALL BETS AND WAGERS  PLACED,
INCLUDING  PERSONALLY  IDENTIFIABLE  INFORMATION  OF  THE  MOBILE SPORTS
WAGERING BETTOR, AMOUNT AND TYPE  OF  BET,  TIME  THE  BET  WAS  PLACED,
LOCATION  OF THE BET, INCLUDING IP ADDRESS IF APPLICABLE, THE OUTCOME OF
THE  BET,  RECORDS  OF  ABNORMAL  BETTING  ACTIVITY,  AND  VIDEO  CAMERA
RECORDINGS  IN  THE  CASE  OF  IN-PERSON WAGERS FOR AT LEAST THREE YEARS
AFTER THE SPORTING  EVENT  OCCURS  AND  MAKE  SUCH  DATA  AVAILABLE  FOR
INSPECTION UPON REQUEST OF THE COMMISSION OR AS REQUIRED BY COURT ORDER.
  (B)  IF A SPORTS GOVERNING BODY HAS NOTIFIED THE COMMISSION THAT REAL-
TIME INFORMATION SHARING FOR WAGERS PLACED ON SPORTING EVENTS IS  NECES-
SARY  AND  DESIRABLE,  CASINOS SHALL SHARE IN REAL TIME, AT THE ACCOUNT-
LEVEL, AND IN PSEUDONYMOUS FORM, THE INFORMATION REQUIRED TO BE RETAINED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION (OTHER THAN  VIDEO  FILES)
WITH  THE  COMMISSION,  AND  THE COMMISSION SHALL SHARE IN REAL TIME THE
INFORMATION WITH THE SPORTS GOVERNING BODY OR ITS DESIGNEE WITH  RESPECT
TO WAGERS ON ITS SPORTING EVENTS.
  (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
MATION.
  18.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  19. SPORTS WAGERING CONDUCTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS
SECTION IS HEREBY AUTHORIZED.
  20.  THE  CONDUCT  OF  SPORTS WAGERING IN VIOLATION OF THIS SECTION IS
PROHIBITED.
  21. ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY VIOLATES ANY PROCEDURE  IMPLEMENTED  UNDER  THIS  SECTION,  OR

S. 7900--A                         11

SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN  FIVE  THOUSAND  DOLLARS  FOR  EACH
VIOLATION,  NOT  TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING
OUT  OF  THE  SAME  TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  § 2. The racing, pari-mutuel wagering and breeding law is  amended  by
adding a new section 1367-a to read as follows:
  §  1367-A.  MOBILE  SPORTS  WAGERING.  1. AS USED IN THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "AFFILIATE" MEANS ANY OFF-TRACK  BETTING  CORPORATION,  FRANCHISED
CORPORATION,  OR RACE TRACK LICENSED PURSUANT TO THE RACING, PARI-MUTUEL
WAGERING AND BREEDING LAW, OR AN OPERATOR OF  VIDEO  LOTTERY  GAMING  AT
AQUEDUCT LICENSED PURSUANT TO SECTION SIXTEEN HUNDRED SEVENTEEN-A OF THE
TAX  LAW,  WHICH  HAS  A  MOBILE SPORTS WAGERING AGREEMENT WITH A CASINO
PURSUANT TO THIS SECTION;
  (B) "AGENT" MEANS AN ENTITY  THAT  IS  PARTY  TO  A  CONTRACT  WITH  A
LICENSED  GAMING  FACILITY  AUTHORIZED  TO  OPERATE A SPORTS POOL AND IS
APPROVED BY THE COMMISSION TO OPERATE A SPORTS POOL ON  BEHALF  OF  SUCH
LICENSED GAMING FACILITY;
  (C)  "AUTHORIZED  SPORTS BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY
PRESENT IN THIS STATE WHEN PLACING A SPORTS WAGER, WHO IS NOT A  PROHIB-
ITED  SPORTS  BETTOR,  THAT PARTICIPATES IN SPORTS WAGERING OFFERED BY A
CASINO. THE INTERMEDIATE ROUTING OF ELECTRONIC DATA IN  CONNECTION  WITH
MOBILE  SPORTS WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN
WHICH A WAGER IS INITIATED, RECEIVED OR OTHERWISE MADE;
  (D) "CASINO" MEANS A LICENSED GAMING FACILITY  AT  WHICH  GAMBLING  IS
CONDUCTED  PURSUANT  TO  THE  PROVISIONS OF THIS ARTICLE OR THE AGENT OF
SUCH LICENSED GAMING FACILITY;
  (E) "COLLEGIATE SPORT OR ATHLETIC EVENT" MEANS  A  SPORT  OR  ATHLETIC
EVENT  OFFERED  OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR
PRIVATE INSTITUTION THAT OFFERS EDUCATION SERVICES BEYOND THE  SECONDARY
LEVEL;
  (F)  "COMMISSION" MEANS THE COMMISSION ESTABLISHED PURSUANT TO SECTION
ONE HUNDRED TWO OF THIS CHAPTER;
  (G) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A  SPORT  OR  ATHLETIC
EVENT  OFFERED  OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR
PRIVATE INSTITUTION THAT OFFERS  EDUCATION  SERVICES  AT  THE  SECONDARY
LEVEL;
  (H)  "HORSE  RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
IN NEW YORK STATE SUBJECT TO THE  PROVISIONS  OF  ARTICLES  TWO,  THREE,
FOUR,  FIVE,  SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR
ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH  IF  CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
  (I) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (J) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION  OF  HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE  BY
ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER;
  (K) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT-
FORM INCLUDING AN AGENT;
  (L) "PROFESSIONAL SPORT OR ATHLETIC EVENT" MEANS AN EVENT AT WHICH TWO
OR  MORE  PERSONS  PARTICIPATE  IN SPORTS OR ATHLETIC EVENTS AND RECEIVE
COMPENSATION IN EXCESS OF ACTUAL EXPENSES  FOR  THEIR  PARTICIPATION  IN
SUCH EVENT;
  (M) "PROHIBITED SPORTS BETTOR" MEANS:

S. 7900--A                         12

  (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
  (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
  (III)  ANY  CASINO  GAMING  OR  NON-GAMING EMPLOYEE AT THE CASINO THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
  (IV) ANY CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR  OFFICER  OR
EMPLOYEE  OF  A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF
SUCH PERSON IS DIRECTLY INVOLVED IN  THE  OPERATION  OR  OBSERVATION  OF
SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
PAYMENTS;
  (V) ANY PERSON SUBJECT TO A  CONTRACT  WITH  THE  COMMISSION  IF  SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;
  (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
OF  THE  SAME  HOUSEHOLD  IN  THE PRINCIPAL PLACE OF ABODE OF ANY OF THE
FOREGOING PERSONS AT THE SAME  CASINO  WHERE  THE  FOREGOING  PERSON  IS
PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
  (VII)  ANY  INDIVIDUAL WITH ACCESS TO NON-PUBLIC CONFIDENTIAL INFORMA-
TION ABOUT SPORTS WAGERING;
  (VIII) ANY AMATEUR OR PROFESSIONAL ATHLETE  IF  THE  SPORTS  WAGER  IS
BASED  ON  ANY  SPORT OR ATHLETIC EVENT OVERSEEN BY THE ATHLETE'S SPORTS
GOVERNING BODY;
  (IX) ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND  UMPIRE
UNION  PERSONNEL,  AND  EMPLOYEE  REFEREE, COACH OR OFFICIAL OF A SPORTS
GOVERNING BODY, IF THE SPORTS WAGER IS BASED ON ANY  SPORT  OR  ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
  (X)  ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
  (XI) ANY MINOR;
  (N) "PROHIBITED SPORTS EVENT" MEANS ANY HIGH SCHOOL SPORT OR  ATHLETIC
EVENT;
  (O)  "SPORTS EVENT" MEANS ANY PROFESSIONAL SPORT OR ATHLETIC EVENT AND
ANY COLLEGIATE SPORT OR  ATHLETIC  EVENT,  EXCEPT  A  PROHIBITED  SPORTS
EVENTS OR A HORSE RACING EVENT;
  (P)  "SPORTS  GOVERNING  BODY"  MEANS THE ORGANIZATION THAT PRESCRIBES
FINAL RULES AND ENFORCES CODES OF CONDUCT WITH  RESPECT  TO  A  SPORTING
EVENT AND PARTICIPANTS THEREIN;
  (Q) "SPORTS POOL" MEANS THE BUSINESS OF ACCEPTING WAGERS ON ANY SPORTS
EVENT BY ANY SYSTEM OR METHOD OF WAGERING;
  (R)  "SPORTS  WAGER"  MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY AN
AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN  SPORTS  WAGERING
OFFERED BY SUCH CASINO;
  (S) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
COMMUNICATION  AND  ELECTRONIC  COMMUNICATION  THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
THE TERM "SPORTS  WAGERING"  SHALL  INCLUDE,  BUT  IS  NOT  LIMITED  TO,
SINGLE-GAME  BETS,  TEASER  BETS,  PARLAYS,  OVER-UNDER BETS, MONEYLINE,
POOLS, EXCHANGE WAGERING, IN-GAME WAGERING,  IN-PLAY  BETS,  PROPOSITION
BETS AND STRAIGHT BETS; AND
  (T) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL  OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF  ALL  SUMS

S. 7900--A                         13

NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO  SPORTS  BETTORS  SHALL  NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY
MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE; OR (II) IN THE CASE OF
EXCHANGE  WAGERING  PURSUANT  TO THIS SECTION, THE COMMISSION ON WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF  ANY
PROMOTIONAL  GAMING  CREDITS  SHALL  NOT  BE TAXABLE FOR THE PURPOSES OF
DETERMINING SPORTS WAGERING GROSS REVENUE.
  2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW  YORK  STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY  USE  MULTIPLE  MOBILE  SPORTS WAGERING PLATFORMS PROVIDED THAT EACH
PLATFORM HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO  MAY
CONTRACT  WITH  ONE  OR MORE INDEPENDENT OPERATORS TO PROVIDE ITS MOBILE
SPORTS WAGERING PLATFORMS, BUT SHALL NOT CONTRACT WITH MORE  THAN  THREE
INDEPENDENT OPERATORS.
  (B)  REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS  REGISTERED  TO
OFFER  MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION
ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  (D) THE COMMISSION  SHALL  PROMULGATE  REGULATIONS  TO  IMPLEMENT  THE
PROVISIONS  OF  THIS  SECTION,  INCLUDING THE DEVELOPMENT OF THE INITIAL
FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE
FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK
STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE  PROTECTIONS
WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
  3.  IN  THE EVENT THAT A CASINO CONTRACTS WITH ONE OR MORE INDEPENDENT
OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING  PLATFORMS,  EACH  INDE-
PENDENT  ENTITY  SHALL  OBTAIN  A  LICENSE AS A CASINO VENDOR ENTERPRISE
PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE  SHALL  BE
ISSUED  PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED
TWENTY-SEVEN OF THIS ARTICLE AND  IN  ACCORDANCE  WITH  THE  REGULATIONS
PROMULGATED BY THE COMMISSION.
  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED  ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR SHOULD
HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR
PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;
  (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED  WITHIN
THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
  (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
INCLUDES:
  (1)  IF  AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED
AN ACCOUNT, OR ACCESSED THE ACCOUNT  OF  ANOTHER,  SUCH  OPERATOR  SHALL
PROMPTLY,  WITHIN  NO  MORE  THAN  TWO BUSINESS DAYS, REFUND ANY DEPOSIT
RECEIVED FROM THE MINOR, WHETHER OR NOT THE  MINOR  HAS  ENGAGED  IN  OR
ATTEMPTED  TO  ENGAGE  IN  SPORTS  WAGERING; PROVIDED, HOWEVER, THAT ANY
REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
  (2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES  TO  ALLOW
PARENTS  OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER-
ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE  A  TOLL-FREE  NUMBER  TO
CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND

S. 7900--A                         14

  (3)  EACH  OPERATOR  SHALL  TAKE  APPROPRIATE STEPS TO CONFIRM THAT AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;
  (IV)  WHEN  REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER-
TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND  CONSPICU-
OUS  STATEMENTS  THAT  ARE  NOT  INACCURATE OR MISLEADING CONCERNING THE
CHANCES OF WINNING AND THE NUMBER OF WINNERS;
  (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS
WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING
IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
  (VI) PERMIT ANY AUTHORIZED  SPORTS  BETTOR  TO  PERMANENTLY  CLOSE  AN
ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY
SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON;
  (VII)  OFFER  INTRODUCTORY  PROCEDURES  FOR AUTHORIZED SPORTS BETTORS,
THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE  OF  SUCH  OPERATOR
PLATFORM, THAT EXPLAIN SPORTS WAGERING;
  (VIII)  IMPLEMENT  MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY
OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS;
  (IX) OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER  ACCOUNT
HISTORY AND ACCOUNT DETAILS;
  (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT
AND  SEGREGATED  FROM THE OPERATING FUNDS OF SUCH OPERATOR AND OTHERWISE
PROTECTED FROM CORPORATE INSOLVENCY,  FINANCIAL  RISK,  OR  CRIMINAL  OR
CIVIL ACTIONS AGAINST SUCH OPERATOR;
  (XI)  LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERN-
ING ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A  TOLL-
FREE  NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING FURTHER
INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND
  (XII) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED  SPORTS
EVENT.
  (B)  OPERATORS  SHALL  NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E) ADVERTISEMENTS FOR CONTESTS AND  PRIZES  OFFERED  BY  AN  OPERATOR
SHALL  NOT  TARGET  PROHIBITED  SPORTS BETTORS, MINORS, OR SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING PROGRAMS FOR ANY CONTEST AND ENSURE THAT MEASURES ARE  IN  PLACE  TO
DETER,  DETECT AND, TO THE EXTENT REASONABLY POSSIBLE, PREVENT CHEATING,
INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES, INCLUDING  USE  OF
SOFTWARE PROGRAMS THAT SUBMIT SPORTS WAGERS UNLESS OTHERWISE APPROVED BY
THE COMMISSION.
  (G)  OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE
MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A  COMPLAINT  BY
AN  AUTHORIZED  SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE
SHALL BE GIVEN BY SUCH OPERATOR TO  SUCH  BETTOR  FILING  THE  COMPLAINT
WITHIN  FORTY-EIGHT  HOURS.  A  COMPLETE RESPONSE SHALL BE GIVEN BY SUCH
OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN  BUSINESS  DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
  (H)  OPERATORS  SHALL  MAINTAIN  RECORDS  OF ALL ACCOUNTS BELONGING TO
AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.

S. 7900--A                         15

  (I) THE SERVER OR OTHER EQUIPMENT WHICH IS  USED  BY  AN  OPERATOR  TO
ACCEPT  MOBILE  SPORTS  WAGERING SHALL BE LOCATED IN THE LICENSED GAMING
FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.
  5.  (A)  SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO  AGREEMENTS  WITH  AFFILIATES  TO  ALLOW  FOR  AUTHORIZED
BETTORS  TO  SIGN  UP TO CREATE AND FUND ACCOUNTS ON THEIR MOBILE SPORTS
WAGERING PLATFORM OR PLATFORMS.
  (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF
A CASINO, OR THROUGH INTERNET WEBSITES ACCESSED VIA A MOBILE  DEVICE  OR
COMPUTER, OR MOBILE DEVICE APPLICATIONS.
  (C)  AUTHORIZED SPORTS BETTORS MAY DEPOSIT AND WITHDRAW FUNDS IN THEIR
ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN
AFFILIATE OF A CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY
OTHER MEANS APPROVED BY THE COMMISSION.
  (D) IN ACCORDANCE WITH  REGULATIONS  PROMULGATED  BY  THE  COMMISSION,
CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE
MOBILE  SPORTS  BETTING KIOSKS, WHICH ARE OWNED, OPERATED AND MAINTAINED
BY THE CASINO, AND CONNECTED VIA THE INTERNET TO THE  CASINO,  UPON  THE
PREMISES OF THE AFFILIATE.
  §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 24 to read as follows:
  24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE.
  § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel  wager-
ing  and  breeding  law, as added by chapter 237 of the laws of 2016, is
amended to read as follows:
  15. "Prohibited sports event" shall  mean  any  [collegiate  sport  or
athletic  event,  any]  high school sport or athletic event or any horse
racing event.
  § 5. Severability clause. If any provision of this act or  application
thereof  shall  for  any  reason  be  adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect,  impair,  or
invalidate the remainder of the act, but shall be confined in its opera-
tion  to  the  provision thereof directly involved in the controversy in
which the judgment shall have been rendered.
  § 6. This act shall take effect on the  same  date  and  in  the  same
manner  as section 1367 of the racing, pari-mutuel wagering and breeding
law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
of 2013, takes effect.

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

                                 7900--B

                            I N  S E N A T E

                              March 7, 2018
                               ___________

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

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

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

  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;

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

                                                           LBD14923-14-8

S. 7900--B                          2

  (D) "Casino" means a licensed gaming facility  at  which  gambling  is
conducted pursuant to the provisions of this article;
  [(b)]  (E)  "Commission"  means the commission established pursuant to
section one hundred two of this chapter;
  [(c)] (F) "Collegiate sport  or  athletic  event"  means  a  sport  or
athletic  event  offered  or sponsored by or played in connection with a
public or private institution that offers  educational  services  beyond
the secondary level;
  (G)  "EXCHANGE  WAGERING"  MEANS  THE  FORM OF PARI-MUTUEL WAGERING IN
WHICH TWO OR MORE AUTHORIZED SPORTS BETTORS PLACE  IDENTICALLY  OPPOSING
SPORTS WAGERS ON AN EXCHANGE OPERATED BY A CASINO;
  (H)  "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)] (I) "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;
  (J)  "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;
  (K)  "IN-PLAY  SPORTS  WAGER"  MEANS A SPORTS WAGER PLACED ON A SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
  (L) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO  SPORTS  POOL
WITH ANOTHER CASINO SPORTS POOL;
  (M) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (N) "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;
  (O)  "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;
  (P)  "Operator"  means  a casino which has elected to operate a sports
pool;
  [(e)] (Q) "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;
  (R) "PROHIBITED SPORTS BETTOR" MEANS:
  (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
  (II) ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR AFFILIATE, EXCEPT AS
MAY BE PERMITTED BY THE COMMISSION FOR GOOD CAUSE SHOWN;
  (III)  ANY  CASINO  GAMING  OR  NON-GAMING EMPLOYEE AT THE CASINO THAT
EMPLOYS SUCH PERSON AND AT ANY AFFILIATE THAT HAS AN AGREEMENT WITH THAT
CASINO;
  (IV) ANY CONTRACTOR,  SUBCONTRACTOR,  OR  CONSULTANT,  OR  OFFICER  OR
EMPLOYEE  OF  A CONTRACTOR, SUBCONTRACTOR, OR CONSULTANT, OF A CASINO IF
SUCH PERSON IS DIRECTLY INVOLVED IN  THE  OPERATION  OR  OBSERVATION  OF

S. 7900--B                          3

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)]  (S)  "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)]  (T) "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 FEE REVENUE IN SUCH FORM AS THE COMMIS-
SION MAY REQUIRE;
  (U) "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)]   (V)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (W) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
  (i)]  (X) "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;
  (Y) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
COMMUNICATION  AND  ELECTRONIC  COMMUNICATION  THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
THE TERM "SPORTS  WAGERING"  SHALL  INCLUDE,  BUT  IS  NOT  LIMITED  TO,
SINGLE-GAME  BETS,  TEASER  BETS,  PARLAYS,  OVER-UNDER BETS, MONEYLINE,
POOLS, EXCHANGE WAGERING, IN-GAME WAGERING,  IN-PLAY  BETS,  PROPOSITION
BETS AND STRAIGHT BETS;
  (Z) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL  OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS
THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF  ALL  SUMS
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL
SPORTS BETTORS, HOWEVER, THAT THE TOTAL OF ALL SUMS PAID OUT AS WINNINGS
TO  SPORTS  BETTORS  SHALL  NOT INCLUDE THE CASH EQUIVALENT VALUE OF ANY

S. 7900--B                          4

MERCHANDISE OR THING OF VALUE AWARDED AS A PRIZE, OR (II) IN THE CASE OF
EXCHANGE WAGERING PURSUANT TO THIS SECTION, THE  COMMISSION  ON  WINNING
SPORTS WAGERS BY AUTHORIZED SPORTS BETTORS RETAINED BY THE OPERATOR. THE
ISSUANCE  TO OR WAGERING BY AUTHORIZED SPORTS BETTORS AT A CASINO OF ANY
PROMOTIONAL GAMING CREDIT SHALL NOT  BE  TAXABLE  FOR  THE  PURPOSES  OF
DETERMINING SPORTS WAGERING GROSS REVENUE;
  (AA)  "Sports  wagering lounge" means an area wherein a sports pool is
operated;
  (BB) "TIER ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT  IS  DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
  (CC) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER; AND
  (DD)  "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER A
TIER ONE NOR A TIER TWO SPORTS WAGER.
  2. No gaming facility may conduct sports wagering until such  time  as
there has been a change in federal law authorizing such or upon a ruling
of a court of competent jurisdiction that such activity is lawful.
  3.  (a) In addition to authorized gaming activities, a licensed gaming
facility may when authorized by subdivision two of this section  operate
a sports pool upon the approval of the commission and in accordance with
the  provisions  of  this section and applicable regulations promulgated
pursuant to this article. The commission shall hear and decide  promptly
and  in  reasonable  order  all  applications for a license to operate a
sports pool, shall have the general responsibility for  the  implementa-
tion  of  this section and shall have all other duties specified in this
section with regard to the operation of a sports pool.  The  license  to
operate a sports pool shall be in addition to any other license required
to  be  issued  to  operate  a  gaming facility. No license to operate a
sports pool shall be issued by the commission to any  entity  unless  it
has  established  its  financial stability, integrity and responsibility
and its good character, honesty and integrity.
  No later than five years after the date of the issuance of  a  license
and  every  five  years  thereafter or within such lesser periods as the
commission may direct, a licensee shall submit to  the  commission  such
documentation  or  information  as  the  commission  may  by  regulation
require, to demonstrate to the satisfaction of the executive director of
the commission that the licensee continues to meet the  requirements  of
the law and regulations.
  (b)  A  sports  pool  shall  be  operated  in a sports wagering lounge
located at a casino.  The  lounge  shall  conform  to  all  requirements
concerning  square  footage,  design,  equipment,  security measures and
related matters which the commission shall by regulation prescribe.
  (c) The operator of a sports pool shall establish or display the  odds
at which wagers may be placed on sports events.
  (d) An operator shall accept wagers on sports events only from persons
physically  present  in  the  sports  wagering lounge, OR THROUGH MOBILE
SPORTS WAGERING OFFERED PURSUANT TO SECTION THIRTEEN HUNDRED  SIXTY-SEV-
EN-A  OF  THIS TITLE. A person placing a wager shall be at least twenty-
one years of age.
  (e) AN OPERATOR MAY ALSO ACCEPT LAYOFF BETS AS LONG AS THE  AUTHORIZED
SPORTS  POOL  PLACES  SUCH WAGERS WITH ANOTHER AUTHORIZED SPORTS POOL OR
POOLS IN ACCORDANCE WITH REGULATIONS OF THE COMMISSION.  A  SPORTS  POOL
THAT  PLACES  A  LAYOFF  BET  SHALL INFORM THE SPORTS POOL ACCEPTING THE
WAGER THAT THE WAGER IS BEING PLACED BY A SPORTS POOL AND SHALL DISCLOSE
ITS IDENTITY.

S. 7900--B                          5

  (F) AN OPERATOR MAY UTILIZE GLOBAL RISK  MANAGEMENT  PURSUANT  TO  THE
APPROVAL OF THE COMMISSION.
  (G)  An  operator  shall not admit into the sports wagering lounge, or
accept wagers from, any person whose name appears on the exclusion list.
  [(f)] (H) The holder of  a  license  to  operate  a  sports  pool  may
contract  with  [an  entity]  ONE  OR  MORE AGENTS to conduct ANY OR ALL
ASPECTS OF that operation, OR THE OPERATION OF  MOBILE  SPORTS  WAGERING
OFFERED  PURSUANT  TO  SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS
TITLE, INCLUDING BUT  NOT  LIMITED  TO  BRAND,  MARKETING  AND  CUSTOMER
SERVICE,  in  accordance  with  the regulations of the commission. [That
entity] EACH AGENT shall obtain a license as a casino vendor  enterprise
prior  to  the execution of any such contract, and such license shall be
issued pursuant to the provisions of section one thousand three  hundred
twenty-seven  of  this  article  and  in accordance with the regulations
promulgated by the commission.
  [(g)] (I) If any provision of this article or its application  to  any
person  or circumstance is held invalid, the invalidity shall not affect
other provisions or applications of this  article  which  can  be  given
effect without the invalid provision or application, and to this end the
provisions of this article are severable.
  4.  (a)  All  persons employed directly in wagering-related activities
conducted within a sports wagering lounge shall be licensed as a  casino
key  employee  or  registered as a gaming employee, as determined by the
commission. All other employees who are working in the  sports  wagering
lounge  may  be required to be registered, if appropriate, in accordance
with regulations of the commission.
  (b) Each operator of a sports pool shall designate one or more  casino
key  employees  who shall be responsible for the operation of the sports
pool. At least one such casino key employee shall  be  on  the  premises
whenever sports wagering is conducted.
  5.  Except as otherwise provided by this article, the commission shall
have the authority to regulate sports pools and the  conduct  of  sports
wagering under this article to the same extent that the commission regu-
lates  other  gaming.  No casino shall be authorized to operate a sports
pool unless it has produced information, documentation,  and  assurances
concerning  its  financial  background  and  resources,  including  cash
reserves, that are sufficient to demonstrate that it has  the  financial
stability,  integrity,  and  responsibility to operate a sports pool. In
developing rules and regulations  applicable  to  sports  wagering,  the
commission  shall  examine  the  regulations implemented in other states
where sports wagering is conducted and shall,  as  far  as  practicable,
adopt  a  similar  regulatory framework. The commission shall promulgate
regulations necessary to carry  out  the  provisions  of  this  section,
including, but not limited to, regulations governing the:
  (a)  amount  of  cash  reserves to be maintained by operators to cover
winning wagers;
  (b) acceptance of wagers on a series of sports events;
  (c) maximum wagers which may be accepted by an operator from  any  one
patron on any one sports event;
  (d) type of wagering tickets which may be used;
  (e) method of issuing tickets;
  (f) method of accounting to be used by operators;
  (g) types of records which shall be kept;
  (h) use of credit and checks by patrons;
  (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
  (J) THE USE OF GLOBAL RISK MANAGEMENT;

S. 7900--B                          6

  (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 TO THE SPORT BETTING ROYALTY FEE
FUND PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V) THE TOTAL AMOUNT OF  WAGERS  RECEIVED  ON  EACH  SPORTS  GOVERNING
BODY'S SPORTING EVENTS;
  (VI)  THE  TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT REQUESTED TO
EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND
  (VII) ANY ADDITIONAL INFORMATION THAT THE COMMISSION  DEEMS  NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION  DEEMS  IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL
BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT  ANY  TIME,
TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE  INFORMATION  PROVIDED  BY ALL CASINOS PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE  COMMISSION'S  WEBSITE
NO  LATER  THAN  ONE  HUNDRED  EIGHTY  DAYS  AFTER  THE DEADLINE FOR THE
SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A).
  8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
NO OFFERING SPORTS WAGERING SHALL  REMIT  TO  THE  COMMISSION  A  SPORTS
WAGERING ROYALTY FEE OF ONE-QUARTER OF ONE PERCENT OF THE AMOUNT WAGERED
ON SPORTS EVENTS CONDUCTED BY REGISTERED SPORTS GOVERNING BODIES, HOWEV-
ER,  IN  NO CASE SHALL THE TOTAL ROYALTY FEE PAID BY A CASINO BE GREATER
THAN TWO PERCENT OF THE CASINO'S SPORTS WAGERING GROSS REVENUE. THE  FEE
SHALL  BE REMITTED ON A FORM AS THE COMMISSION MAY REQUIRE, ON WHICH THE
CASINO SHALL IDENTIFY THE PERCENTAGE OF WAGERING  DURING  THE  REPORTING
PERIOD  ATTRIBUTABLE  TO  EACH  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 IN PRO RATA
PROPORTION OF THE  TOTAL  AMOUNT  WAGERED  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 TRAIN-
ING PROGRAMS IT HAS IMPLEMENTED TO PROTECT THE INTEGRITY OF  ITS  SPORTS
EVENTS.

S. 7900--B                          7

  (C)  WITHIN  THIRTY  DAYS  OF  ITS  MEETING WITH THE REGISTERED SPORTS
GOVERNING BODY AS DESCRIBED IN PARAGRAPH (B) OF  THIS  SUBDIVISION,  THE
COMMISSION SHALL APPROVE A TIMELY CLAIM FOR DISBURSEMENT.
  (D)  THE  COMMISSION'S MEETING WITH A REGISTERED SPORTS GOVERNING BODY
AS DESCRIBED 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
FIVE  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FIVE OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES,  UNDER  SUCH  CONDI-
TIONS,  AND  IN  SUCH  DEPOSITORIES  AS SHALL BE PRESCRIBED BY THE STATE
COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE  STATE
COMMERCIAL  GAMING  REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY
REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE
TENTH DAY OF EACH MONTH, WITH RESPECT TO  GROSS  REVENUES  AND  DEPOSITS
RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
  11.  THE  COMMISSION  MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A
CASINO, AT SUCH TIMES AND INTERVALS AS IT  DEEMS  APPROPRIATE,  FOR  THE
PURPOSE  OF  DETERMINING  THE  SUFFICIENCY  OF TAX PAYMENTS. IF A RETURN
REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN
WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR  INSUF-
FICIENT  WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER-
MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN  TO
THE  CASINO  LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL
FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS
ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING  NOTICE  OF  SUCH  DETERMI-
NATION,  SHALL  APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH
THE REGULATIONS OF THE COMMISSION.
  12. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY  SPORTS
OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER.  NOTHING IN THIS
SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE  FANTASY  SPORTS
OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS
WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS,  AUTHORIZATION
PURSUANT TO THIS SECTION.

S. 7900--B                          8

  13.  A  CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF THIS CHAP-
TER, AND MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B)  OF  SUBDIVISION
ONE  OF  SECTION  THIRTEEN  HUNDRED FIFTY-FIVE OF THIS CHAPTER, SHALL BE
ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN  ACCORD-
ANCE  WITH  THEIR  LICENSE UNDER ARTICLE THREE OF THIS CHAPTER. NOTWITH-
STANDING SUBPARAGRAPH (II) OF PARAGRAPH C OF SUBDIVISION TWO OF  SECTION
ONE  THOUSAND  EIGHT  OF  THIS  CHAPTER, A CASINO LOCATED IN THE CITY OF
SCHENECTADY SHALL BE ALLOWED TO  OFFER  PARI-MUTUEL  WAGERING  ON  HORSE
RACING  EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL OFF-
TRACK BETTING CORPORATION IN SUCH REGION AS THE CASINO IS  LOCATED.  ANY
OTHER  CASINO  SHALL  BE  ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE
RACING EVENTS, PROVIDED SUCH WAGERING IS CONDUCTED BY THE REGIONAL  OFF-
TRACK  BETTING CORPORATION IN SUCH REGION AS THE CASINO IS LOCATED.  ANY
PHYSICAL LOCATION WHERE PARI-MUTUEL WAGERING ON HORSE RACING  EVENTS  IS
OFFERED BY A CASINO AND CONDUCTED BY A REGIONAL OFF-TRACK BETTING CORPO-
RATION  IN  ACCORDANCE  WITH  THIS  SUBDIVISION  SHALL BE DEEMED TO BE A
BRANCH LOCATION OF THE REGIONAL OFF-TRACK BETTING CORPORATION IN ACCORD-
ANCE WITH SECTION ONE THOUSAND EIGHT OF THIS  CHAPTER.    MOBILE  SPORTS
BETTING  KIOSKS LOCATED ON THE PREMISES OF AFFILIATES IN ACCORDANCE WITH
PARAGRAPH (D) OF SUBDIVISION FIVE OF SECTION THIRTEEN HUNDRED SIXTY-SEV-
EN-A OF THIS CHAPTER SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL  WAGERING
ON HORSE RACING EVENTS.
  14.  A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO RESTRICT, LIMIT, OR  EXCLUDE  WAGERING  ON  ITS  SPORTING  EVENTS  BY
PROVIDING  NOTICE  IN THE FORM AND MANNER AS THE COMMISSION MAY REQUIRE.
UPON RECEIVING SUCH NOTICE, THE COMMISSION SHALL REVIEW THE  REQUEST  IN
GOOD  FAITH,  SEEK  INPUT FROM THE CASINOS ON SUCH A REQUEST, AND IF THE
COMMISSION DEEMS IT APPROPRIATE, PROMULGATE REGULATIONS TO RESTRICT SUCH
SPORTS WAGERING. IF THE COMMISSION DENIES A REQUEST, THE SPORTS  GOVERN-
ING  BODY  SHALL  BE AFFORDED NOTICE AND THE RIGHT TO BE HEARD AND OFFER
PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE WITH  THE  REGU-
LATIONS  OF  THE  COMMISSION.  OFFERING  OR  TAKING  WAGERS  CONTRARY TO
RESTRICTIONS PROMULGATED BY  THE  COMMISSION  IS  A  VIOLATION  OF  THIS
SECTION.  IN  THE  EVENT THAT THE REQUEST IS IN RELATION TO AN EMERGENCY
SITUATION, THE EXECUTIVE DIRECTOR  OF  THE  COMMISSION  MAY  TEMPORARILY
PROHIBIT  THE  SPECIFIC  WAGER  IN QUESTION UNTIL THE COMMISSION HAS THE
OPPORTUNITY TO ISSUE TEMPORARY REGULATIONS ADDRESSING THE ISSUE.
  15. (A) THE COMMISSION SHALL  DESIGNATE  THE  DIVISION  OF  THE  STATE
POLICE  TO  HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE
COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A  BETTING  OUTCOME  OF  A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
  (B)  THE  COMMISSION  AND  CASINOS SHALL COOPERATE WITH INVESTIGATIONS
CONDUCTED BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT  AGENCIES,
INCLUDING  BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF
ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES  RELATING  TO
PERSONS  PLACING  WAGERS; PROVIDED, HOWEVER, THAT THE CASINO BE REQUIRED
TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS
BETTOR WITH A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO  DO  SO
BY  THE  COMMISSION  OR  A  LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT
JURISDICTION.
  (C) CASINOS SHALL IMMEDIATELY REPORT TO THE COMMISSION ANY INFORMATION
RELATING TO:
  (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE  CASINO
IN CONNECTION WITH ITS OPERATIONS;

S. 7900--B                          9

  (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
  (III)  ANY  POTENTIAL  BREACH  OF THE RELEVANT SPORTS GOVERNING BODY'S
INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO  SPORTS  WAGERING,  AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
  (IV)  ANY  OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING
EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH  FIXING;
AND
  (V)  SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS
DERIVED FROM ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR  LAUNDER  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  USING  AGENTS  TO PLACE WAGERS, USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
  THE COMMISSION SHALL ALSO IMMEDIATELY REPORT INFORMATION  RELATING  TO
CONDUCT  DESCRIBED  IN  SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (D) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS  REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  (E)  THE  COMMISSION,  BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES THEREOF TO ENABLE THE  SHARING  OF  INFORMATION  TO  FACILITATE
INTEGRITY  MONITORING  AND  THE  CONDUCT OF INVESTIGATIONS INTO ABNORMAL
BETTING ACTIVITY, MATCH  FIXING,  AND  OTHER  CONDUCT  THAT  CORRUPTS  A
BETTING  OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL
GAIN.
  16. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY  DEEM  APPROPRIATE
FOR  DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS
WAGERS.
  (B) CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGERING
INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT SPORTS GOVERNING  BODY
POSSESSES  A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE
FOR PURCHASE BY THE CASINOS ON COMMERCIALLY REASONABLE TERMS  AS  DETER-
MINED BY THE COMMISSION.
  (C)  A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO REQUIRE CASINOS TO  USE  OFFICIAL  LEAGUE  DATA  IN  SPORTS  WAGERING
INVOLVING  SPECIFIC  TIER THREE SPORTS WAGERS BY PROVIDING NOTICE IN THE
FORM AND MANNER AS THE  COMMISSION  MAY  REQUIRE.  UPON  RECEIVING  SUCH
NOTICE,  THE  COMMISSION  SHALL  REVIEW THE REQUEST, SEEK INPUT FROM THE
CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS  IT  APPROPRIATE,
PROMULGATE REGULATIONS TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA ON
SPORTS  WAGERING INVOLVING SUCH TIER THREE SPORTS WAGERS IF THE RELEVANT
SPORTS GOVERNING BODY POSSESSES A FEED  OF  OFFICIAL  LEAGUE  DATA,  AND
MAKES  SUCH  FEED  AVAILABLE FOR PURCHASE BY THE CASINOS ON COMMERCIALLY
REASONABLE TERMS AS DETERMINED BY THE COMMISSION.
  (D) WHEN DETERMINING WHETHER OR NOT A SUPPLIER OF OFFICIAL LEAGUE DATA
IS OFFERING COMMERCIALLY REASONABLE TERMS, THE COMMISSION SHALL CONSIDER
THE AMOUNT CHARGED BY THE SUPPLIER OF OFFICIAL  LEAGUE  DATA  TO  GAMING
OPERATORS  IN OTHER JURISDICTIONS. THIS INFORMATION SHALL BE PROVIDED TO
THE COMMISSION BY THE SUPPLIER OF OFFICIAL LEAGUE DATA UPON  REQUEST  OF
THE COMMISSION. ANY ENTITY PROVIDING DATA TO A CASINO FOR THE PURPOSE OF
TIER  TWO  SPORTS WAGERS, OTHER THAN A SUPPLIER OF OFFICIAL LEAGUE DATA,
SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE  AND  SUCH  LICENSE
SHALL BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE
HUNDRED  TWENTY-SEVEN  OF  THIS ARTICLE AND IN ACCORDANCE WITH THE REGU-
LATIONS PROMULGATED BY THE COMMISSION.

S. 7900--B                         10

  (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) CASINOS SHALL MAINTAIN RECORDS OF ALL BETS AND WAGERS  PLACED,
INCLUDING  PERSONALLY  IDENTIFIABLE  INFORMATION  OF  THE  MOBILE SPORTS
WAGERING BETTOR, AMOUNT AND TYPE  OF  BET,  TIME  THE  BET  WAS  PLACED,
LOCATION  OF THE BET, INCLUDING IP ADDRESS IF APPLICABLE, THE OUTCOME OF
THE  BET,  RECORDS  OF  ABNORMAL  BETTING  ACTIVITY,  AND  VIDEO  CAMERA
RECORDINGS  IN  THE  CASE  OF  IN-PERSON WAGERS FOR AT LEAST THREE YEARS
AFTER THE SPORTING  EVENT  OCCURS  AND  MAKE  SUCH  DATA  AVAILABLE  FOR
INSPECTION UPON REQUEST OF THE COMMISSION OR AS REQUIRED BY COURT ORDER.
  (B)  IF A SPORTS GOVERNING BODY HAS NOTIFIED THE COMMISSION THAT REAL-
TIME INFORMATION SHARING FOR WAGERS PLACED ON SPORTING EVENTS IS  NECES-
SARY  AND  DESIRABLE,  CASINOS SHALL SHARE IN REAL TIME, AT THE ACCOUNT-
LEVEL, AND IN PSEUDONYMOUS FORM, THE INFORMATION REQUIRED TO BE RETAINED
PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION (OTHER THAN  VIDEO  FILES)
WITH  THE  COMMISSION,  AND  THE COMMISSION SHALL SHARE IN REAL TIME THE
INFORMATION WITH THE SPORTS GOVERNING BODY OR ITS DESIGNEE WITH  RESPECT
TO WAGERS ON ITS SPORTING EVENTS.
  (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
MATION.
  18.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  19. SPORTS WAGERING CONDUCTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS
SECTION IS HEREBY AUTHORIZED.
  20.  THE  CONDUCT  OF  SPORTS WAGERING IN VIOLATION OF THIS SECTION IS
PROHIBITED.
  21. ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY VIOLATES ANY PROCEDURE  IMPLEMENTED  UNDER  THIS  SECTION,  OR
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 MULTIPLE MOBILE SPORTS WAGERING  PLATFORMS  PROVIDED  THAT  EACH
PLATFORM  HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A CASINO MAY
CONTRACT WITH ONE OR MORE INDEPENDENT OPERATORS TO  PROVIDE  ITS  MOBILE

S. 7900--B                         11

SPORTS  WAGERING  PLATFORMS,  BUT  SHALL NOT CONTRACT WITH MORE THAN TWO
INDEPENDENT OPERATORS.
  (B)  REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS  REGISTERED  TO
OFFER  MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION
ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  (D) THE COMMISSION  SHALL  PROMULGATE  REGULATIONS  TO  IMPLEMENT  THE
PROVISIONS  OF  THIS  SECTION,  INCLUDING THE DEVELOPMENT OF THE INITIAL
FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE
FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK
STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE  PROTECTIONS
WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
  3.  IN  THE EVENT THAT A CASINO CONTRACTS WITH ONE OR MORE INDEPENDENT
OPERATORS TO PROVIDE ITS MOBILE SPORTS WAGERING  PLATFORMS,  EACH  INDE-
PENDENT  ENTITY  SHALL  OBTAIN  A  LICENSE AS A CASINO VENDOR ENTERPRISE
PRIOR TO THE EXECUTION OF ANY SUCH CONTRACT, AND SUCH LICENSE  SHALL  BE
ISSUED  PURSUANT TO THE PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED
TWENTY-SEVEN OF THIS ARTICLE AND  IN  ACCORDANCE  WITH  THE  REGULATIONS
PROMULGATED BY THE COMMISSION.
  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED  ACCOUNT PER INDEPENDENT OPERATOR PLATFORM, AND PREVENT ANYONE THEY
KNOW, OR SHOULD HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR  FROM  MAIN-
TAINING 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;

S. 7900--B                         12

  (VII)  OFFER  INTRODUCTORY  PROCEDURES  FOR AUTHORIZED SPORTS BETTORS,
THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE  OF  SUCH  OPERATOR
PLATFORM, THAT EXPLAIN SPORTS WAGERING;
  (VIII)  IMPLEMENT  MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY
OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS;
  (IX) OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER  ACCOUNT
HISTORY AND ACCOUNT DETAILS;
  (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT
AND  SEGREGATED  FROM THE OPERATING FUNDS OF SUCH OPERATOR AND OTHERWISE
PROTECTED FROM CORPORATE INSOLVENCY,  FINANCIAL  RISK,  OR  CRIMINAL  OR
CIVIL ACTIONS AGAINST SUCH OPERATOR;
  (XI)  LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION CONCERN-
ING ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A  TOLL-
FREE  NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING FURTHER
INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND
  (XII) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED  SPORTS
EVENT.
  (B)  OPERATORS  SHALL  NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E) ADVERTISEMENTS FOR CONTESTS AND  PRIZES  OFFERED  BY  AN  OPERATOR
SHALL  NOT  TARGET  PROHIBITED  SPORTS BETTORS, MINORS, OR SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING PROGRAMS FOR ANY 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.
  5.  (A)  SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO  AGREEMENTS  WITH  AFFILIATES  TO  ALLOW  FOR  AUTHORIZED
BETTORS  TO  SIGN  UP TO CREATE AND FUND ACCOUNTS ON THEIR MOBILE SPORTS
WAGERING PLATFORM OR PLATFORMS.
  (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF
A CASINO, OR THROUGH INTERNET WEBSITES ACCESSED VIA A MOBILE  DEVICE  OR
COMPUTER, OR MOBILE DEVICE APPLICATIONS.

S. 7900--B                         13

  (C)  AUTHORIZED SPORTS BETTORS MAY DEPOSIT AND WITHDRAW FUNDS IN THEIR
ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN
AFFILIATE OF A CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY
OTHER MEANS APPROVED BY THE COMMISSION.
  (D)  IN  ACCORDANCE  WITH  REGULATIONS  PROMULGATED BY THE COMMISSION,
CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE
MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED  AND  MAINTAINED
BY  THE  CASINO,  AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE
PREMISES OF THE AFFILIATE.
  § 3. Section 104 of the racing, pari-mutuel wagering and breeding  law
is amended by adding a new subdivision 24 to read as follows:
  24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE.
  §  4. Subdivision 15 of section 1401 of the racing, pari-mutuel wager-
ing and breeding law, as added by chapter 237 of the laws  of  2016,  is
amended to read as follows:
  15.  "Prohibited  sports  event"  shall  mean any [collegiate sport or
athletic event, any] high school sport or athletic event  or  any  horse
racing event.
  §  5. Severability clause. If any provision of this act or application
thereof shall for any reason be  adjudged  by  any  court  of  competent
jurisdiction  to  be invalid, such judgment shall not affect, impair, or
invalidate the remainder of the act, but shall be confined in its opera-
tion to the provision thereof directly involved in  the  controversy  in
which the judgment shall have been rendered.
  §  6.  This  act  shall  take  effect on the same date and in the same
manner as section 1367 of the racing, pari-mutuel wagering and  breeding
law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
of 2013, takes effect.