S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5833
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2019
                                ___________
 
 Introduced  by  Sen.  GRIFFO -- 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 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] WAGERING. 1. As used in this section:
   (a)  "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A CASINO
 AUTHORIZED TO OPERATE A POOL AND IS APPROVED BY THE COMMISSION TO  OPER-
 ATE A POOL ON BEHALF OF SUCH CASINO;
   (B)  "AUTHORIZED BETTOR" MEANS AN INDIVIDUAL WHO IS PHYSICALLY PRESENT
 IN THIS STATE WHEN PLACING A WAGER, WHO IS NOT A PROHIBITED BETTOR, THAT
 PARTICIPATES IN WAGERING OFFERED BY A CASINO.    ALL  WAGERS  PLACED  IN
 ACCORDANCE  WITH  THIS  SECTION  ARE CONSIDERED PLACED OR OTHERWISE MADE
 WHEN RECEIVED BY THE OPERATOR AT THE LICENSED GAMING  FACILITY,  REGARD-
 LESS  OF THE AUTHORIZED BETTOR'S PHYSICAL LOCATION AT THE TIME THE WAGER
 IS INITIATED.
   (C) "Casino" means a licensed gaming facility  at  which  gambling  is
 conducted pursuant to the provisions of this article;
   [(b)]  (D)  "Commission"  means the commission established pursuant to
 section one hundred two of this chapter;
   [(c)] (E) "Collegiate sport  or  athletic  event"  means  a  sport  or
 athletic  event  offered  or sponsored by or played in connection with a
 public or private institution that offers  educational  services  beyond
 the secondary level;
   [(d)]  (F)  "EXCHANGE  WAGERING"  MEANS A FORM OF WAGERING IN WHICH AN
 AUTHORIZED BETTOR, ON THE ONE HAND, AND ONE OR MORE AUTHORIZED  BETTORS,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11741-01-9

 S. 5833                             2
 
 A CASINO OR AN AGENT OR AN OPERATOR, ON THE OTHER HAND PLACE IDENTICALLY
 OPPOSING  WAGERS  ON  AN EXCHANGE OPERATED BY A CASINO OR AN AGENT OR AN
 OPERATOR;
   (G)  "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL-
 TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH
 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;
   (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)  "IN-PLAY  WAGER" MEANS A WAGER PLACED ON AN EVENT AFTER THE EVENT
 HAS BEGUN AND BEFORE IT ENDS;
   (J) "LAYOFF BET" MEANS A WAGER PLACED BY A CASINO  POOL  WITH  ANOTHER
 CASINO POOL;
   (K) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
   (L)  "OFFICIAL  LEAGUE  DATA" MEANS STATISTICS, RESULTS, OUTCOMES, AND
 OTHER DATA RELATING TO AN EVENT THAT HAVE BEEN OBTAINED FROM  THE  RELE-
 VANT  GOVERNING  BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE GOVERNING
 BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
   (M)  "Operator" means a casino which has elected to operate a [sports]
 pool OR AN INDIAN TRIBE (OR AN AGENT OF  SUCH  INDIAN  TRIBE)  THAT  HAS
 ENTERED INTO A TRIBAL-STATE GAMING COMPACT IN ACCORDANCE WITH THE INDIAN
 GAMING  REGULATORY  ACT  25  U.S.C. 2710, THAT IS IN EFFECT AND HAS BEEN
 RATIFIED BY THE STATE;
   [(e)] (N) "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;
   [(f)] (O) "PROHIBITED BETTOR" MEANS:
   (I) ANY OFFICER OR EMPLOYEE OF THE COMMISSION;
   (II)  ANY PRINCIPAL OR KEY EMPLOYEE OF A CASINO OR OPERATOR, 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 OPERATOR 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
 WAGERING, OR THE PROCESSING OF 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 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 WAGERING;
   (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC  CONFIDENTIAL  INFORMA-
 TION ABOUT WAGERING;
   (VIII)  ANY  AMATEUR  OR PROFESSIONAL ATHLETE IF THE 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

 S. 5833                             3
 
 GOVERNING  BODY,  IF  THE  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 BETTOR; OR
   (XI) ANY MINOR;
   (P) "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, OR HIGH SCHOOL SPORT OR ATHLETIC EVENT;
   [(g)] (Q) "REGISTERED SPORTS GOVERNING BODY" MEANS A SPORTS  GOVERNING
 BODY  THAT  IS HEADQUARTERED IN THE UNITED STATES AND WHO HAS REGISTERED
 WITH THE COMMISSION TO RECEIVE ROYALTY FEE REVENUE IN SUCH FORM  AS  THE
 COMMISSION MAY REQUIRE;
   (R)  "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) "Sports pool"] (S) "GOVERNING BODY" MEANS THE  ORGANIZATION  THAT
 PRESCRIBES  FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO AN
 EVENT AND PARTICIPANTS THEREIN;
   (T) "POOL" means the business of  accepting  wagers  on  any  [sports]
 event by any system or method of wagering; [and
   (i)  "Sports  wagering  lounge"] (U) "WAGER" MEANS CASH OR CASH EQUIV-
 ALENT THAT IS PAID BY AN AUTHORIZED BETTOR TO A CASINO TO PARTICIPATE IN
 WAGERING OFFERED BY SUCH CASINO;
   (V) "WAGERING" MEANS WAGERING ON EVENTS OR ANY PORTION THEREOF, OR  ON
 THE  INDIVIDUAL  PERFORMANCE STATISTICS OF PARTICIPANTS PARTICIPATING IN
 AN EVENT, OR COMBINATION OF EVENTS, BY IN-PERSON COMMUNICATION. THE TERM
 "WAGERING" SHALL INCLUDE, BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEAS-
 ER BETS, PARLAYS, OVER-UNDER BETS, MONEY LINE, POOLS, EXCHANGE WAGERING,
 IN-GAME WAGERING, IN-PLAY BETS, PROPOSITION BETS AND STRAIGHT BETS;
   (W) "WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE  TOTAL
 OF ALL WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS THAT AN OPER-
 ATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS NOT ATTRIBUT-
 ABLE  TO  PROHIBITED  SPORTS EVENTS PAID OUT AS WINNINGS TO ALL BETTORS,
 HOWEVER, THAT THE TOTAL OF ALL SUMS PAID  OUT  AS  WINNINGS  TO  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 WAGERS BY AUTHORIZED
 BETTORS RETAINED BY THE OPERATOR. THE ISSUANCE TO OR WAGERING BY AUTHOR-
 IZED  BETTORS  AT A CASINO OF ANY PROMOTIONAL GAMING CREDIT SHALL NOT BE
 TAXABLE FOR THE PURPOSES OF DETERMINING WAGERING GROSS REVENUE;
   (X) "WAGERING LOUNGE" means an area wherein a [sports] pool  is  oper-
 ated;
   (Y)  "TIER  ONE  WAGER" MEANS A WAGER THAT IS DETERMINED SOLELY BY THE
 FINAL SCORE OR FINAL OUTCOME OF THE EVENT;
   (Z) "TIER TWO WAGER" MEANS AN IN-PLAY WAGER THAT IS  NOT  A  TIER  ONE
 WAGER;
   (AA) "TIER THREE WAGER" MEANS A WAGER THAT IS NEITHER A TIER ONE NOR A
 TIER TWO WAGER; AND
   (BB)  "INDIAN TRIBE" MEANS AN INDIAN TRIBE (OR AN AGENT OF SUCH TRIBE)
 THAT HAS ENTERED INTO A TRIBAL-STATE GAMING COMPACT IN  ACCORDANCE  WITH
 THE  INDIAN  GAMING REGULATORY ACT OF 1988 (18 U.S.C. SEC. 1166 TO 1168,
 INCLUSIVE, AND 25 U.S.C. SEC. 2701 ET SEQ.) WHICH HAS BEEN  RATIFIED  BY
 THE STATE.
   (CC)  "EVENT"  MEANS  AN  EVENT OTHER THAN A HORSE RACE OR A GREYHOUND
 RACE.

 S. 5833                             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] CASINO 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 regu-
 lations 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  responsibil-
 ity  for  the  implementation  of  this section and shall have all other
 duties specified in this section with  regard  to  the  operation  of  a
 [sports]  pool. The license to operate a [sports] pool shall be in addi-
 tion to any other license required to be issued  to  operate  a  [gaming
 facility]  CASINO. No license to operate a [sports] pool shall be issued
 by the commission to any entity unless it has established its  financial
 stability,  integrity and responsibility and its good character, honesty
 and integrity.
   No later than five years after the date of the issuance of  a  license
 and  every  five  years  thereafter or within such lesser periods as the
 commission may direct, a licensee shall submit to  the  commission  such
 documentation  or  information  as  the  commission  may  by  regulation
 require, to demonstrate to the satisfaction of the executive director of
 the commission that the licensee continues to meet the  requirements  of
 the law and regulations.
   (b) AS A CONDITION OF LICENSURE THE COMMISSION SHALL REQUIRE THAT EACH
 AGENT  AUTHORIZED  TO  CONDUCT  WAGERING  PAY  A  ONE-TIME FEE OF TWELVE
 MILLION DOLLARS. SUCH FEE SHALL BE PAID WITHIN  THIRTY  DAYS  OF  GAMING
 COMMISSION  APPROVAL  PRIOR  TO  LICENSE ISSUANCE AND DEPOSITED INTO THE
 COMMERCIAL GAMING REVENUE FUND ESTABLISHED PURSUANT TO SECTION  THIRTEEN
 HUNDRED FIFTY-TWO OF THIS ARTICLE.
   (C)  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)] (D) The operator of a [sports] pool shall establish  or  display
 the odds at which wagers may be placed on [sports] events.
   [(d)] (E) An operator shall accept wagers on [sports] events only from
 persons  physically  present  in the [sports] wagering lounge.  A person
 placing a wager shall be at least twenty-one years of age.
   [(e)] (F) AN OPERATOR MAY ALSO ACCEPT  LAYOFF  BETS  AS  LONG  AS  THE
 AUTHORIZED POOL PLACES SUCH WAGERS WITH ANOTHER AUTHORIZED POOL OR POOLS
 IN  ACCORDANCE  WITH REGULATIONS OF THE COMMISSION. A POOL THAT PLACES A
 LAYOFF BET SHALL INFORM THE POOL ACCEPTING THE WAGER THAT THE  WAGER  IS
 BEING PLACED BY A POOL AND SHALL DISCLOSE ITS IDENTITY.
   (G)  AN  OPERATOR  MAY  UTILIZE GLOBAL RISK MANAGEMENT PURSUANT TO THE
 APPROVAL OF THE COMMISSION.
   (H) An operator shall not admit into the [sports] wagering lounge,  or
 accept wagers from, any person whose name appears on the exclusion list.
   [(f)]  (I)  The  holder  of  a  license to operate a [sports] pool may
 contract with [an entity] AN AGENT to conduct ANY OR ALL ASPECTS OF that
 operation, 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

 S. 5833                             5
 
 twenty-seven of this article and  in  accordance  with  the  regulations
 promulgated by the commission.
   [(g)]  (J)  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.] 3. (a) All persons employed directly in  wagering-related  activ-
 ities 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 casi-
 no  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.]  4.  Except as otherwise provided by this article, the commission
 shall have the authority to regulate [sports] pools and the  conduct  of
 [sports] wagering under this article to the same extent that the commis-
 sion  regulates 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 finan-
 cial stability, integrity, and  responsibility  to  operate  a  [sports]
 pool.  In developing rules and regulations applicable to [sports] wager-
 ing, the commission shall examine the regulations implemented  in  other
 states where [sports] wagering is conducted and shall, as far as practi-
 cable,  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.]  5. Each operator shall adopt comprehensive house rules governing
 [sports] wagering transactions with its  [patrons]  AUTHORIZED  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.
   6. (A) EACH CASINO THAT OFFERS 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:

 S. 5833                             6
 
   (I) THE TOTAL AMOUNT OF WAGERS RECEIVED FROM AUTHORIZED BETTORS;
   (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED BETTORS;
   (III) THE TOTAL AMOUNT OF WAGERING GROSS REVENUE RECEIVED BY THE CASI-
 NO;
   (IV)  THE TOTAL AMOUNT CONTRIBUTED IN BETTING ROYALTY REVENUE PURSUANT
 TO SUBDIVISION SEVEN OF THIS SECTION;
   (V) THE TOTAL AMOUNT OF  WAGERS  RECEIVED  ON  EACH  GOVERNING  BODY'S
 EVENTS;
   (VI) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED BETTORS;
   (VII)  THE  TOTAL  NUMBER OF NEW ACCOUNTS ESTABLISHED IN THE PRECEDING
 YEAR, AS WELL AS THE TOTAL NUMBER OF ACCOUNTS PERMANENTLY CLOSED IN  THE
 PRECEDING YEAR;
   (VIII)  THE  TOTAL  NUMBER  OF  AUTHORIZED  BETTORS  THAT REQUESTED TO
 EXCLUDE THEMSELVES FROM WAGERING; AND
   (IX) 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).
   7. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
 NO  OFFERING  WAGERING  SHALL REMIT TO THE COMMISSION A WAGERING ROYALTY
 FEE OF ONE-FIFTH (.20) OF ONE PERCENT OF THE AMOUNT WAGERED  ON  EVENTS.
 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 EVENT
   (B)  NO  LATER  THAN THE THIRTIETH OF APRIL OF EACH YEAR, A REGISTERED
 GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF  THE  ROYALTY  FEE
 FUNDS REMITTED BY CASINOS IN THE PREVIOUS CALENDAR YEAR ON THEIR RESPEC-
 TIVE  EVENTS.   WITHIN THIRTY DAYS OF SUBMITTING ITS CLAIM FOR DISBURSE-
 MENT, THE REGISTERED 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 EVENTS.
   (C) WITHIN THIRTY DAYS OF ITS MEETING WITH  THE  REGISTERED  GOVERNING
 BODY, THE COMMISSION SHALL APPROVE A TIMELY CLAIM FOR DISBURSEMENT.
   (D)  BEFORE  ANY  REGISTERED  GOVERNING  BODY  MAY  RECEIVE  ANY  SUCH
 DISBURSEMENT OF THE ROYALTY FEE FUNDS, SUCH GOVERNING BODY SHALL HAVE IN
 PLACE PROCEDURES OR PROCESSES THAT ADDRESS:
   (I) THE PROTECTION OF ATHLETES, PLAYERS, UMPIRES, REFEREES, CLUB OFFI-
 CIALS AND PERSONNEL OR OFFICIALS OF A SPORTS LEAGUE AND MEMBERS OF THEIR
 FAMILIES AND ASSOCIATES FROM PHYSICAL ATTACKS, VERBAL THREATS, OR  OTHER
 FORMS OF HARASSMENT OCCURRING IN THE WORKPLACE OR ELSEWHERE;
   (II)  THE  AUTHORITY TO REMOVE SPECTATORS AND OTHERS FROM ANY FACILITY
 FOR VIOLATION OF A CODE OF CONDUCT, AND AFTER APPROPRIATE PROCEDURE,  TO
 DENY  PERSONS  FROM  ACCESS  TO  ALL  FACILITIES THEY CONTROL, TO REVOKE
 SEASON TICKETS OR COMPARABLE LICENSES, AND TO  SHARE  INFORMATION  ABOUT
 SUCH  PERSONS WITH OTHER REGISTERED GOVERNING BODIES AND WITH THE APPRO-
 PRIATE JURISDICTION'S LAW ENFORCEMENT AUTHORITIES.
   8. FOR THE PRIVILEGE OF CONDUCTING  WAGERING  IN  THE  STATE,  CASINOS
 SHALL PAY A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR WAGER-
 ING GROSS REVENUE.

 S. 5833                             7
 
   9.  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 WAGERING.  THE  COMMIS-
 SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
 TAX  IMPOSED  BY  THIS  SECTION  TO  BE DISTRIBUTED FOR PROBLEM GAMBLING
 EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
 FOUR  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
 SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
 TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
 PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN
 OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
 GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
 DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
 SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
 REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
 TO SUBDIVISION EIGHT 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.
   10.  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.
   11. 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 WAGERING
 UNLESS  IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION PURSUANT
 TO THIS SECTION.
   12. A GOVERNING BODY MAY NOTIFY THE  COMMISSION  THAT  IT  DESIRES  TO
 RESTRICT,  LIMIT,  OR EXCLUDE WAGERING ON ITS 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 WAGERING. IF THE
 COMMISSION DENIES A REQUEST, THE GOVERNING BODY SHALL BE AFFORDED NOTICE
 AND THE RIGHT TO BE HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMI-
 NATION IN ACCORDANCE WITH THE REGULATIONS 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

 S. 5833                             8
 
 THE  COMMISSION  HAS  THE  OPPORTUNITY  TO  ISSUE  TEMPORARY REGULATIONS
 ADDRESSING THE ISSUE.
   13.  (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 AN
 EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
   (B) CASINOS SHALL MAINTAIN RECORDS OF WAGERING OPERATIONS  IN  ACCORD-
 ANCE  WITH  REGULATIONS PROMULGATED BY THE COMMISSION. THESE REGULATIONS
 SHALL, AT A MINIMUM, REQUIRE A CASINO  TO  ADOPT  PROCEDURES  TO  OBTAIN
 PERSONALLY  IDENTIFIABLE  INFORMATION FROM ANY INDIVIDUAL WHO PLACES ANY
 SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER.
   (C) THE COMMISSION SHALL COOPERATE WITH A GOVERNING BODY  AND  CASINOS
 TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF INFORMATION.
   (D)  THE  COMMISSION  AND  CASINOS SHALL COOPERATE WITH INVESTIGATIONS
 CONDUCTED BY 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  BETTOR  WITH  A
 GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO BY THE COMMISSION OR A
 LAW ENFORCEMENT AGENCY OR COURT OF COMPETENT JURISDICTION.
   (E)  CASINOS  SHALL  PROMPTLY REPORT TO THE COMMISSION ANY INFORMATION
 RELATING TO:
   (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE  CASINO
 IN CONNECTION WITH ITS OPERATIONS;
   (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
 WITH THE INTEGRITY OF AN EVENT OR EVENTS;
   (III)  ANY  POTENTIAL BREACH OF THE RELEVANT GOVERNING BODY'S INTERNAL
 RULES AND CODES OF CONDUCT PERTAINING TO WAGERING,  AS  THEY  HAVE  BEEN
 PROVIDED BY THE GOVERNING BODY TO THE CASINO;
   (IV)  ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF AN EVENT OR
 EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING; AND
   (V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF  FUNDS
 DERIVED  FROM  ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR LAUNDER FUNDS
 DERIVED FROM ILLEGAL ACTIVITY,  USING  AGENTS  TO  PLACE  WAGERS,  USING
 CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
   THE  COMMISSION  SHALL  ALSO  PROMPTLY  REPORT INFORMATION RELATING TO
 CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV)  OF  THIS  PARA-
 GRAPH TO THE RELEVANT GOVERNING BODY.
   (F) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
 BY A GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED BY THIS
 SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
   (G)  THE  COMMISSION,  BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY
 RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
 AGENCIES THEREOF TO ENABLE THE  SHARING  OF  INFORMATION  TO  FACILITATE
 INTEGRITY  MONITORING  AND  THE  CONDUCT OF INVESTIGATIONS INTO ABNORMAL
 BETTING ACTIVITY, MATCH  FIXING,  AND  OTHER  CONDUCT  THAT  CORRUPTS  A
 BETTING OUTCOME OF AN EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
   (H)  THE  COMMISSION  SHALL STUDY THE POTENTIAL FOR THE CREATION OF AN
 INTERSTATE DATABASE OF ALL  WAGERING  INFORMATION  FOR  THE  PURPOSE  OF
 INTEGRITY  MONITORING,  AND  SHALL  CREATE  A FINAL REPORT REGARDING ALL
 FINDINGS AND RECOMMENDATIONS TO BE  DELIVERED  UPON  COMPLETION  OF  ALL
 OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO
 THOUSAND  TWENTY,  TO  THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE
 TEMPORARY PRESIDENT OF THE SENATE.

 S. 5833                             9
 
   14. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY  DEEM  APPROPRIATE
 FOR DETERMINING THE RESULT OF WAGERING INVOLVING WAGERS.
   (B)  CASINOS  SHALL  ONLY  USE  OFFICIAL  LEAGUE  DATA IN ALL WAGERING
 INVOLVING TIER TWO WAGERS, IF THE RELEVANT 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.
   (C) A GOVERNING BODY MAY NOTIFY THE  COMMISSION  THAT  IT  DESIRES  TO
 REQUIRE  CASINOS  TO  USE  OFFICIAL  LEAGUE  DATA  IN 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  REGU-
 LATIONS  TO  REQUIRE  CASINOS  TO  USE  OFFICIAL LEAGUE DATA ON WAGERING
 INVOLVING  SUCH  TIER  THREE  WAGERS  IF  THE  RELEVANT  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.
   (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 WAGERS, OTHER THAN A SUPPLIER OF OFFICIAL  LEAGUE  DATA,  SHALL
 OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE AND SUCH LICENSE SHALL BE
 ISSUED  PURSUANT  TO  THE PROVISIONS OF SECTION THIRTEEN HUNDRED TWENTY-
 SEVEN OF THIS ARTICLE AND IN ACCORDANCE WITH THE REGULATIONS PROMULGATED
 BY THE COMMISSION.
   (E) NO CASINO SHALL ENTER INTO AN AGREEMENT WITH A 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
 BETTOR TO FILE A COMPLAINT ALLEGING AN UNDERPAYMENT OR NON-PAYMENT OF  A
 WINNING  WAGER.  ANY  SUCH REGULATIONS SHALL PROVIDE THAT THE COMMISSION
 UTILIZE THE STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA RELATING TO AN
 EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT  GOVERNING  BODY,  WHERE
 APPLICABLE, IN DETERMINING THE VALIDITY OF SUCH CLAIM.
   15.  A CASINO SHALL NOT PERMIT WAGERING BY ANYONE THEY KNOW, OR SHOULD
 HAVE KNOWN, TO BE A PROHIBITED BETTOR.
   16. WAGERING CONDUCTED PURSUANT TO THE PROVISIONS OF THIS  SECTION  IS
 HEREBY AUTHORIZED.
   16-A.  THE  COMMISSION SHALL PROMULGATE RULES THAT REQUIRE AN OPERATOR
 TO IMPLEMENT RESPONSIBLE  GAMING  PROGRAMS  THAT  INCLUDE  COMPREHENSIVE
 EMPLOYEE  TRAININGS  ON RESPONDING TO CIRCUMSTANCES IN WHICH INDIVIDUALS
 PRESENT SIGNS OF A GAMBLING ADDICTION.  THE COMMISSION SHALL ESTABLISH A
 HOTLINE OR OTHER METHOD OF COMMUNICATION THAT WILL ALLOW ANY  PERSON  TO
 CONFIDENTIALLY  REPORT  INFORMATION  ABOUT  PROHIBITED  CONDUCT  TO  THE
 COMMISSION. THE COMMISSION SHALL PROMULGATE  REGULATIONS  GOVERNING  THE
 INVESTIGATION AND RESOLUTION OF A CHARGE OF ANY PERSON PURPORTED TO HAVE
 ENGAGED IN PROHIBITED CONDUCT.
   17.  THE CONDUCT OF WAGERING IN VIOLATION OF THIS SECTION IS PROHIBIT-
 ED.
   18. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI-
 CLE TWO HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON,  FIRM,  CORPO-
 RATION,  ASSOCIATION, AGENT, OR EMPLOYEE, WHO IS NOT AUTHORIZED TO OFFER

 S. 5833                            10
 
 WAGERING UNDER THIS SECTION, AND WHO KNOWINGLY  OFFERS  OR  ATTEMPTS  TO
 OFFER  WAGERING  IN  NEW YORK SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT
 MORE THAN ONE HUNDRED THOUSAND DOLLARS FOR EACH VIOLATION, NOT TO EXCEED
 FIVE  MILLION DOLLARS FOR VIOLATIONS ARISING OUT OF THE SAME TRANSACTION
 OR OCCURRENCE, WHICH SHALL ACCRUE TO THE STATE AND MAY BE RECOVERED IN A
 CIVIL ACTION BROUGHT BY THE COMMISSION.
   (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
 KNOWINGLY VIOLATES ANY PROCEDURE IMPLEMENTED UNDER THIS  SECTION,  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  COMMIS-
 SION.
   §  2. 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 WAGERING IN NEW YORK STATE.
   § 3. 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.
   § 4. 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.
   § 5. 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, as amended, takes effect.