The New York State Senate

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

                                   17

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2019
                               ___________

Introduced  by  Sen. ADDABBO -- 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) "BRAND" MEANS THE NAME AND LOGO  ON  THE  INTERFACE  OF  A  MOBILE
APPLICATION OR INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER
WHICH AUTHORIZED SPORTS BETTORS USE TO ACCESS A SPORTS BETTING PLATFORM;

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

                      [ ] is old law to be omitted.
                                                           LBD05498-01-9

S. 17                               2

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

S. 17                               3

SUCH PERSON IS DIRECTLY INVOLVED IN  THE  OPERATION  OR  OBSERVATION  OF
SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
PAYMENTS;
  (V)  ANY  PERSON  SUBJECT  TO  A  CONTRACT WITH THE COMMISSION IF SUCH
CONTRACT CONTAINS A PROVISION PROHIBITING SUCH PERSON FROM PARTICIPATING
IN SPORTS WAGERING;
  (VI) ANY SPOUSE, CHILD, BROTHER, SISTER OR PARENT RESIDING AS A MEMBER
OF THE SAME HOUSEHOLD IN THE PRINCIPAL PLACE OF  ABODE  OF  ANY  OF  THE
FOREGOING  PERSONS  AT  THE  SAME  CASINO  WHERE THE FOREGOING PERSON IS
PROHIBITED FROM PARTICIPATING IN SPORTS WAGERING;
  (VII) ANY INDIVIDUAL WITH ACCESS TO NON-PUBLIC  CONFIDENTIAL  INFORMA-
TION ABOUT SPORTS WAGERING;
  (VIII)  ANY  AMATEUR  OR  PROFESSIONAL  ATHLETE IF THE SPORTS WAGER IS
BASED ON ANY SPORT OR ATHLETIC EVENT OVERSEEN BY  THE  ATHLETE'S  SPORTS
GOVERNING BODY;
  (IX)  ANY SPORTS AGENT, OWNER OR EMPLOYEE OF A TEAM, PLAYER AND UMPIRE
UNION PERSONNEL, AND EMPLOYEE REFEREE, COACH OR  OFFICIAL  OF  A  SPORTS
GOVERNING  BODY,  IF  THE SPORTS WAGER IS BASED ON ANY SPORT OR ATHLETIC
EVENT OVERSEEN BY THE INDIVIDUAL'S SPORTS GOVERNING BODY;
  (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN  OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
  (XI) ANY MINOR;
  [(f)]  (T)  "Prohibited  sports  event" means any [collegiate sport or
athletic event that takes place in New York or a sport or athletic event
in which any New York college team participates regardless of where  the
event takes place] HIGH SCHOOL SPORT OR ATHLETIC EVENT;
  [(g)]  (U) "REGISTERED SPORTS GOVERNING BODY" MEANS A SPORTS GOVERNING
BODY THAT IS HEADQUARTERED IN THE UNITED STATES AND WHO  HAS  REGISTERED
WITH  THE  COMMISSION TO RECEIVE ROYALTY FEE REVENUE IN SUCH FORM AS THE
COMMISSION MAY REQUIRE;
  (V) "Sports event" means any professional sport or athletic event  and
any collegiate sport or athletic event, except a prohibited sports event
OR A HORSE RACING EVENT;
  [(h)]   (W)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (X) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
  (i)]  (Y) "SPORTS WAGER" MEANS CASH OR CASH EQUIVALENT THAT IS PAID BY
AN AUTHORIZED SPORTS BETTOR TO A CASINO TO PARTICIPATE IN SPORTS  WAGER-
ING OFFERED BY SUCH CASINO;
  (Z) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING  IN  A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY ANY
SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED  TO,  IN-PERSON
COMMUNICATION  AND  ELECTRONIC  COMMUNICATION  THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
ANY WAGER THROUGH ELECTRONIC COMMUNICATION IS DEEMED MADE AT  THE  PHYS-
ICAL  LOCATION  OF  THE SERVER OR OTHER EQUIPMENT USED BY AN OPERATOR TO
ACCEPT MOBILE  SPORTS  WAGERING.    THE  TERM  "SPORTS  WAGERING"  SHALL
INCLUDE,  BUT IS NOT LIMITED TO, SINGLE-GAME BETS, TEASER BETS, PARLAYS,
OVER-UNDER BETS, MONEYLINE, POOLS, EXCHANGE WAGERING, IN-GAME  WAGERING,
IN-PLAY BETS, PROPOSITION BETS AND STRAIGHT BETS;
  (AA)  "SPORTS  WAGERING  GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO
THE TOTAL OF ALL SPORTS WAGERS NOT  ATTRIBUTABLE  TO  PROHIBITED  SPORTS
EVENTS THAT AN OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL

S. 17                               4

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

S. 17                               5

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

S. 17                               6

  (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
  (J) THE USE OF GLOBAL RISK MANAGEMENT;
  (K) type of system for wagering; and
  [(j)] (L) protections for a person placing a wager.
  6.  Each  operator  shall  adopt  comprehensive  house rules governing
sports  wagering  transactions  with  its  [patrons]  AUTHORIZED  SPORTS
BETTORS.  The  rules  shall  specify  the  amounts to be paid on winning
wagers and the effect of schedule changes.   The house  rules,  together
with  any  other  information the commission deems appropriate, shall be
conspicuously displayed in the sports wagering lounge  and  included  in
the  terms  and  conditions  of  the account wagering system, and copies
shall be made readily available to patrons.
  7. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY  OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I)  THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED SPORTS
BETTORS;
  (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
  (III) THE TOTAL AMOUNT OF SPORTS WAGERING GROSS  REVENUE  RECEIVED  BY
THE CASINO;
  (IV)  THE  TOTAL  AMOUNT CONTRIBUTED IN SPORTS BETTING ROYALTY REVENUE
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V) THE TOTAL AMOUNT OF  WAGERS  RECEIVED  ON  EACH  SPORTS  GOVERNING
BODY'S SPORTING EVENTS;
  (VI)  THE  TOTAL NUMBER OF AUTHORIZED SPORTS BETTORS THAT REQUESTED TO
EXCLUDE THEMSELVES FROM SPORTS WAGERING; AND
  (VII) ANY ADDITIONAL INFORMATION THAT THE COMMISSION  DEEMS  NECESSARY
TO CARRY OUT THE PROVISIONS OF THIS ARTICLE.
  (B) UPON THE SUBMISSION OF SUCH ANNUAL REPORT, TO SUCH EXTENT THAT THE
COMMISSION  DEEMS  IT TO BE IN THE PUBLIC INTEREST, THE COMMISSION SHALL
BE AUTHORIZED TO CONDUCT A FINANCIAL AUDIT OF ANY CASINO, AT  ANY  TIME,
TO ENSURE COMPLIANCE WITH THIS ARTICLE.
  (C) THE COMMISSION SHALL ANNUALLY PUBLISH A REPORT BASED ON THE AGGRE-
GATE  INFORMATION  PROVIDED  BY ALL CASINOS PURSUANT TO PARAGRAPH (A) OF
THIS SUBDIVISION, WHICH SHALL BE PUBLISHED ON THE  COMMISSION'S  WEBSITE
NO  LATER  THAN  ONE  HUNDRED  EIGHTY  DAYS  AFTER  THE DEADLINE FOR THE
SUBMISSION OF INDIVIDUAL REPORTS AS SPECIFIED IN SUCH PARAGRAPH (A).
  8. (A) WITHIN THIRTY DAYS OF THE END OF EACH CALENDAR QUARTER, A CASI-
NO OFFERING SPORTS WAGERING SHALL  REMIT  TO  THE  COMMISSION  A  SPORTS
WAGERING  ROYALTY  FEE  OF  ONE-FIFTH (.20) OF ONE PERCENT OF THE AMOUNT
WAGERED ON  SPORTS  EVENTS  CONDUCTED  BY  REGISTERED  SPORTS  GOVERNING
BODIES.    THE  FEE  SHALL  BE  REMITTED ON A FORM AS THE COMMISSION MAY
REQUIRE, ON WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE  OF  WAGERING
DURING  THE  REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  REGISTERED SPORT
GOVERNING BODY'S SPORTS EVENTS.
  (B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH  YEAR,  A  REGISTERED
SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE ROYALTY
FEE  FUNDS  REMITTED  BY  CASINOS IN THE PREVIOUS CALENDAR YEAR ON THEIR
RESPECTIVE SPORTS EVENTS.  WITHIN THIRTY DAYS OF  SUBMITTING  ITS  CLAIM
FOR  DISBURSEMENT,  THE REGISTERED SPORTS GOVERNING BODY SHALL MEET WITH
THE COMMISSION TO PROVIDE THE  COMMISSION  WITH  EVIDENCE  OF  POLICIES,
PROCEDURES  AND  TRAINING  PROGRAMS  IT  HAS  IMPLEMENTED TO PROTECT THE
INTEGRITY OF ITS SPORTS EVENTS.
  (C) WITHIN THIRTY DAYS OF  ITS  MEETING  WITH  THE  REGISTERED  SPORTS
GOVERNING  BODY,  THE  COMMISSION  SHALL  APPROVE  A  TIMELY  CLAIM  FOR
DISBURSEMENT.

S. 17                               7

  (D) THE COMMISSION'S MEETING WITH A REGISTERED SPORTS  GOVERNING  BODY
UNDER  PARAGRAPH  (B) OF THIS SUBDIVISION, SHALL BE CLOSED TO THE PUBLIC
AND EXEMPT FROM THE OPEN MEETINGS LAW.  ANY  EVIDENCE  PROVIDED  TO  THE
COMMISSION UNDER PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE CONFIDENTIAL
AND EXEMPT FROM DISCLOSURE UNDER THE STATE FREEDOM OF INFORMATION LAW.
  9. FOR THE PRIVILEGE OF CONDUCTING SPORTS WAGERING IN THE STATE, CASI-
NOS  SHALL  PAY  A TAX EQUIVALENT TO EIGHT AND ONE-HALF PERCENT OF THEIR
SPORTS WAGERING GROSS REVENUE.
  10. THE COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING  REVENUE  FUND
ESTABLISHED  PURSUANT  TO SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE
LAW EIGHTY-FIVE PERCENT OF THE STATE TAX IMPOSED BY  THIS  SECTION;  ANY
INTEREST  AND  PENALTIES  IMPOSED  BY  THE  COMMISSION RELATING TO THOSE
TAXES; ALL PENALTIES LEVIED AND COLLECTED BY  THE  COMMISSION;  AND  THE
APPROPRIATE  FUNDS,  CASH  OR PRIZES FORFEITED FROM SPORTS WAGERING. THE
COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
FOUR  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION NINE OF THIS SECTION, AT SUCH TIMES,  UNDER  SUCH  CONDI-
TIONS,  AND  IN  SUCH  DEPOSITORIES  AS SHALL BE PRESCRIBED BY THE STATE
COMPTROLLER. THE DEPOSITS SHALL BE DEPOSITED TO THE CREDIT OF THE  STATE
COMMERCIAL  GAMING  REVENUE FUND. THE COMMISSION SHALL REQUIRE A MONTHLY
REPORT AND RECONCILIATION STATEMENT TO BE FILED WITH IT ON OR BEFORE THE
TENTH DAY OF EACH MONTH, WITH RESPECT TO  GROSS  REVENUES  AND  DEPOSITS
RECEIVED AND MADE, RESPECTIVELY, DURING THE PRECEDING MONTH.
  11.  THE  COMMISSION  MAY PERFORM AUDITS OF THE BOOKS AND RECORDS OF A
CASINO, AT SUCH TIMES AND INTERVALS AS IT  DEEMS  APPROPRIATE,  FOR  THE
PURPOSE  OF  DETERMINING  THE  SUFFICIENCY  OF TAX PAYMENTS. IF A RETURN
REQUIRED WITH REGARD TO OBLIGATIONS IMPOSED IS NOT FILED, OR IF A RETURN
WHEN FILED OR IS DETERMINED BY THE COMMISSION TO BE INCORRECT OR  INSUF-
FICIENT  WITH OR WITHOUT AN AUDIT, THE AMOUNT OF TAX DUE SHALL BE DETER-
MINED BY THE COMMISSION. NOTICE OF SUCH DETERMINATION SHALL BE GIVEN  TO
THE  CASINO  LIABLE FOR THE PAYMENT OF THE TAX. SUCH DETERMINATION SHALL
FINALLY AND IRREVOCABLY FIX THE TAX UNLESS THE CASINO AGAINST WHOM IT IS
ASSESSED, WITHIN THIRTY DAYS AFTER RECEIVING  NOTICE  OF  SUCH  DETERMI-
NATION,  SHALL  APPLY TO THE COMMISSION FOR A HEARING IN ACCORDANCE WITH
THE REGULATIONS OF THE COMMISSION.
  12. NOTHING IN THIS SECTION SHALL APPLY TO INTERACTIVE FANTASY  SPORTS
OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER.  NOTHING IN THIS
SECTION AUTHORIZES ANY ENTITY THAT CONDUCTS INTERACTIVE  FANTASY  SPORTS
OFFERED  PURSUANT  TO ARTICLE FOURTEEN OF THIS CHAPTER TO CONDUCT SPORTS
WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS,  AUTHORIZATION
PURSUANT TO THIS SECTION.
  13.  A  CASINO THAT IS ALSO LICENSED UNDER ARTICLE THREE OF THIS CHAP-
TER, AND MUST MAINTAIN RACING PURSUANT TO PARAGRAPH (B)  OF  SUBDIVISION
ONE  OF  SECTION  THIRTEEN  HUNDRED FIFTY-FIVE OF THIS CHAPTER, SHALL BE
ALLOWED TO OFFER PARI-MUTUEL WAGERING ON HORSE RACING EVENTS IN  ACCORD-
ANCE  WITH  THEIR  LICENSE UNDER ARTICLE THREE OF THIS CHAPTER. NOTWITH-

S. 17                               8

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

S. 17                               9

  (E) CASINOS SHALL PROMPTLY REPORT TO THE  COMMISSION  ANY  INFORMATION
RELATING TO:
  (I)  CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO
IN CONNECTION WITH ITS OPERATIONS;
  (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
  (III) ANY POTENTIAL BREACH OF THE  RELEVANT  SPORTS  GOVERNING  BODY'S
INTERNAL  RULES  AND  CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
  (IV) ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF  A  SPORTING
EVENT  OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING;
AND
  (V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR LAUNDER FUNDS
DERIVED FROM ILLEGAL ACTIVITY,  USING  AGENTS  TO  PLACE  WAGERS,  USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
  THE  COMMISSION  SHALL  ALSO  PROMPTLY  REPORT INFORMATION RELATING TO
CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV)  OF  THIS  PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (F) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY  A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  (G) THE COMMISSION, BY REGULATION, MAY AUTHORIZE  AND  PROMULGATE  ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES  THEREOF  TO  ENABLE  THE  SHARING OF INFORMATION TO FACILITATE
INTEGRITY MONITORING AND THE CONDUCT  OF  INVESTIGATIONS  INTO  ABNORMAL
BETTING  ACTIVITY,  MATCH  FIXING,  AND  OTHER  CONDUCT  THAT CORRUPTS A
BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF  FINANCIAL
GAIN.
  (H)  THE  COMMISSION  SHALL STUDY THE POTENTIAL FOR THE CREATION OF AN
INTERSTATE DATABASE OF ALL SPORTS WAGERING INFORMATION FOR  THE  PURPOSE
OF  INTEGRITY  MONITORING, AND SHALL CREATE A FINAL REPORT REGARDING ALL
FINDINGS AND RECOMMENDATIONS TO BE  DELIVERED  UPON  COMPLETION  OF  ALL
OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO
THOUSAND  NINETEEN, TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE
TEMPORARY PRESIDENT OF THE SENATE.
  16. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY  DEEM  APPROPRIATE
FOR  DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS
WAGERS.
  (B) CASINOS SHALL ONLY USE OFFICIAL LEAGUE DATA IN ALL SPORTS WAGERING
INVOLVING TIER TWO SPORTS WAGERS, IF THE RELEVANT SPORTS GOVERNING  BODY
POSSESSES  A FEED OF OFFICIAL LEAGUE DATA, AND MAKES SUCH FEED AVAILABLE
FOR PURCHASE BY THE CASINOS ON COMMERCIALLY REASONABLE TERMS  AS  DETER-
MINED BY THE COMMISSION.
  (C)  A SPORTS GOVERNING BODY MAY NOTIFY THE COMMISSION THAT IT DESIRES
TO REQUIRE CASINOS TO  USE  OFFICIAL  LEAGUE  DATA  IN  SPORTS  WAGERING
INVOLVING  SPECIFIC  TIER THREE SPORTS WAGERS BY PROVIDING NOTICE IN THE
FORM AND MANNER AS THE  COMMISSION  MAY  REQUIRE.  UPON  RECEIVING  SUCH
NOTICE,  THE  COMMISSION  SHALL  REVIEW THE REQUEST, SEEK INPUT FROM THE
CASINOS ON SUCH A REQUEST, AND IF THE COMMISSION DEEMS  IT  APPROPRIATE,
PROMULGATE REGULATIONS TO REQUIRE CASINOS TO USE OFFICIAL LEAGUE DATA ON
SPORTS  WAGERING INVOLVING SUCH TIER THREE SPORTS WAGERS IF THE RELEVANT
SPORTS GOVERNING BODY POSSESSES A FEED  OF  OFFICIAL  LEAGUE  DATA,  AND
MAKES  SUCH  FEED  AVAILABLE FOR PURCHASE BY THE CASINOS ON COMMERCIALLY
REASONABLE TERMS AS DETERMINED BY THE COMMISSION.

S. 17                              10

  (D) WHEN DETERMINING WHETHER OR NOT A SUPPLIER OF OFFICIAL LEAGUE DATA
IS OFFERING COMMERCIALLY REASONABLE TERMS, THE COMMISSION SHALL CONSIDER
THE AMOUNT CHARGED BY THE SUPPLIER OF OFFICIAL  LEAGUE  DATA  TO  GAMING
OPERATORS  IN OTHER JURISDICTIONS. THIS INFORMATION SHALL BE PROVIDED TO
THE  COMMISSION  BY THE SUPPLIER OF OFFICIAL LEAGUE DATA UPON REQUEST OF
THE COMMISSION.  ANY ENTITY PROVIDING DATA TO A CASINO FOR  THE  PURPOSE
OF  TIER  TWO  SPORTS  WAGERS,  OTHER THAN A SUPPLIER OF OFFICIAL LEAGUE
DATA, SHALL OBTAIN A LICENSE AS A  CASINO  VENDOR  ENTERPRISE  AND  SUCH
LICENSE  SHALL  BE ISSUED PURSUANT TO THE PROVISIONS OF SECTION THIRTEEN
HUNDRED TWENTY-SEVEN OF THIS ARTICLE AND IN ACCORDANCE  WITH  THE  REGU-
LATIONS PROMULGATED BY THE COMMISSION.
  (E)  NO  CASINO  SHALL ENTER INTO AN AGREEMENT WITH A SPORTS GOVERNING
BODY OR AN ENTITY EXPRESSLY AUTHORIZED  TO  DISTRIBUTE  OFFICIAL  LEAGUE
DATA TO BE THE EXCLUSIVE RECIPIENT OF THEIR OFFICIAL LEAGUE DATA.
  (F) THE COMMISSION SHALL PROMULGATE REGULATIONS TO ALLOW AN AUTHORIZED
SPORTS  BETTOR  TO FILE A COMPLAINT ALLEGING AN UNDERPAYMENT OR NON-PAY-
MENT OF A WINNING SPORTS WAGER. ANY SUCH REGULATIONS SHALL PROVIDE  THAT
THE COMMISSION UTILIZE THE STATISTICS, RESULTS, OUTCOMES, AND OTHER DATA
RELATING  TO  A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE RELEVANT
SPORTS GOVERNING BODY IN DETERMINING THE VALIDITY OF SUCH CLAIM.
  17. A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW,  OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  18.  SPORTS  WAGERING  CONDUCTED  PURSUANT  TO  THE PROVISIONS OF THIS
SECTION IS HEREBY AUTHORIZED.
  19. THE CONDUCT OF SPORTS WAGERING IN VIOLATION  OF  THIS  SECTION  IS
PROHIBITED.
  20. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI-
CLE  TWO  HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON, FIRM, CORPO-
RATION, ASSOCIATION, AGENT, OR EMPLOYEE, WHO IS NOT AUTHORIZED TO  OFFER
SPORTS  WAGERING  UNDER  THIS SECTION OR SECTION THIRTEEN HUNDRED SIXTY-
SEVEN-A OF THIS TITLE, AND WHO KNOWINGLY OFFERS  OR  ATTEMPTS  TO  OFFER
SPORTS  WAGERING  OR  MOBILE SPORTS WAGERING IN NEW YORK SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED  THOUSAND  DOLLARS  FOR
EACH  VIOLATION, NOT TO EXCEED FIVE MILLION DOLLARS FOR VIOLATIONS ARIS-
ING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY VIOLATES ANY PROCEDURE  IMPLEMENTED  UNDER  THIS  SECTION,  OR
SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN  FIVE  THOUSAND  DOLLARS  FOR  EACH
VIOLATION,  NOT  TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING
OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH  SHALL  ACCRUE  TO  THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  §  2.  The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 1367-a to read as follows:
  § 1367-A. MOBILE SPORTS WAGERING. 1. (A) EXCEPT AS  PROVIDED  IN  THIS
SUBDIVISION,  THE  TERMS IN THIS SECTION SHALL HAVE THE SAME MEANINGS AS
SUCH TERMS ARE DEFINED IN SUBDIVISION ONE OF  SECTION  THIRTEEN  HUNDRED
SIXTY-SEVEN OF THIS TITLE.
  (B) "OPERATOR" MEANS AN ENTITY OFFERING A MOBILE SPORTS WAGERING PLAT-
FORM INCLUDING AN AGENT.
  2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A  MOBILE  SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY USE ONE MOBILE SPORTS WAGERING PLATFORM AND BRAND PROVIDED THAT SUCH
PLATFORM AND BRAND HAS BEEN REVIEWED AND APPROVED BY THE  COMMISSION.  A

S. 17                              11

CASINO  MAY  CONTRACT WITH AN INDEPENDENT OPERATOR TO PROVIDE ITS MOBILE
SPORTS WAGERING PLATFORM.
  (B)  REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL CASINOS  REGISTERED  TO
OFFER  MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO THIS SECTION
ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  (D) THE COMMISSION  SHALL  PROMULGATE  REGULATIONS  TO  IMPLEMENT  THE
PROVISIONS  OF  THIS  SECTION,  INCLUDING THE DEVELOPMENT OF THE INITIAL
FORM OF THE APPLICATION FOR REGISTRATION. SUCH REGULATIONS SHALL PROVIDE
FOR THE REGISTRATION AND OPERATION OF MOBILE SPORTS WAGERING IN NEW YORK
STATE AND SHALL INCLUDE, BUT NOT BE LIMITED TO, RESPONSIBLE  PROTECTIONS
WITH REGARD TO COMPULSIVE PLAY AND SAFEGUARDS FOR FAIR PLAY.
  3.  IN  THE  EVENT THAT A CASINO CONTRACTS WITH AN OPERATOR TO PROVIDE
ITS MOBILE SPORTS WAGERING  PLATFORM  AND  BRAND,  SUCH  OPERATOR  SHALL
OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE PRIOR TO THE EXECUTION OF
ANY  SUCH  CONTRACT,  AND  SUCH  LICENSE SHALL BE ISSUED PURSUANT TO THE
PROVISIONS OF SECTION ONE THOUSAND THREE HUNDRED  TWENTY-SEVEN  OF  THIS
ARTICLE  AND  IN  ACCORDANCE  WITH  THE  REGULATIONS  PROMULGATED BY THE
COMMISSION.
  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR  SHOULD
HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR
PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;
  (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
CERTAINTY,  THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED WITHIN
THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
  (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
INCLUDES:
  (1) IF AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR  HAS  CREATED
AN  ACCOUNT,  OR  ACCESSED  THE  ACCOUNT OF ANOTHER, SUCH OPERATOR SHALL
PROMPTLY, WITHIN NO MORE THAN TWO  BUSINESS  DAYS,  REFUND  ANY  DEPOSIT
RECEIVED  FROM  THE  MINOR,  WHETHER  OR NOT THE MINOR HAS ENGAGED IN OR
ATTEMPTED TO ENGAGE IN SPORTS  WAGERING;  PROVIDED,  HOWEVER,  THAT  ANY
REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
  (2)  EACH  OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES TO ALLOW
PARENTS OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS  WAGER-
ING  OR  PLATFORM.  SUCH  PROCEDURES SHALL INCLUDE A TOLL-FREE NUMBER TO
CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
  (3) EACH OPERATOR SHALL TAKE APPROPRIATE  STEPS  TO  CONFIRM  THAT  AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;
  (IV)  WHEN  REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER-
TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND  CONSPICU-
OUS  STATEMENTS  THAT  ARE  NOT  INACCURATE OR MISLEADING CONCERNING THE
CHANCES OF WINNING AND THE NUMBER OF WINNERS;
  (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS
WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING
IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
  (VI) PERMIT ANY AUTHORIZED  SPORTS  BETTOR  TO  PERMANENTLY  CLOSE  AN
ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY
SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON;
  (VII)  OFFER  INTRODUCTORY  PROCEDURES  FOR AUTHORIZED SPORTS BETTORS,
THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE  OF  SUCH  OPERATOR
PLATFORM, THAT EXPLAIN SPORTS WAGERING;

S. 17                              12

  (VIII)  IMPLEMENT  MEASURES TO PROTECT THE PRIVACY AND ONLINE SECURITY
OF AUTHORIZED SPORTS BETTORS AND THEIR ACCOUNTS;
  (IX)  OFFER ALL AUTHORIZED SPORTS BETTORS ACCESS TO HIS OR HER ACCOUNT
HISTORY AND ACCOUNT DETAILS;
  (X) ENSURE AUTHORIZED SPORTS BETTORS' FUNDS ARE PROTECTED UPON DEPOSIT
AND SEGREGATED FROM THE OPERATING FUNDS OF SUCH OPERATOR  AND  OTHERWISE
PROTECTED  FROM  CORPORATE  INSOLVENCY,  FINANCIAL  RISK, OR CRIMINAL OR
CIVIL ACTIONS AGAINST SUCH OPERATOR;
  (XI) LIST ON EACH WEBSITE, IN A PROMINENT PLACE, INFORMATION  CONCERN-
ING  ASSISTANCE FOR COMPULSIVE PLAY IN NEW YORK STATE, INCLUDING A TOLL-
FREE NUMBER DIRECTING CALLERS TO REPUTABLE RESOURCES CONTAINING  FURTHER
INFORMATION, WHICH SHALL BE FREE OF CHARGE; AND
  (XII)  ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS
EVENT.
  (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY  OPERATE,  PROMOTE,  OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E)  ADVERTISEMENTS  FOR  CONTESTS  AND  PRIZES OFFERED BY AN OPERATOR
SHALL NOT TARGET PROHIBITED SPORTS  BETTORS,  MINORS,  OR  SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING  PROGRAMS FOR ANY EXCHANGE WAGERING CONTEST AND ENSURE THAT MEASURES
ARE IN PLACE TO DETER, DETECT AND, TO THE  EXTENT  REASONABLY  POSSIBLE,
PREVENT  CHEATING, INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES,
INCLUDING USE OF SOFTWARE PROGRAMS THAT SUBMIT EXCHANGE WAGERING  SPORTS
WAGERS UNLESS OTHERWISE APPROVED BY THE COMMISSION.
  (G)  OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE
MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A  COMPLAINT  BY
AN  AUTHORIZED  SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE
SHALL BE GIVEN BY SUCH OPERATOR TO  SUCH  BETTOR  FILING  THE  COMPLAINT
WITHIN  FORTY-EIGHT  HOURS.  A  COMPLETE RESPONSE SHALL BE GIVEN BY SUCH
OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN  BUSINESS  DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
  (H)  OPERATORS  SHALL  MAINTAIN  RECORDS  OF ALL ACCOUNTS BELONGING TO
AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.
  (I) THE SERVER OR OTHER EQUIPMENT WHICH IS  USED  BY  AN  OPERATOR  TO
ACCEPT  MOBILE  SPORTS  WAGERING SHALL BE LOCATED IN THE LICENSED GAMING
FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.
  (J) ALL MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN  COMPLIANCE  WITH
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
  5.  (A)  SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO  AGREEMENTS  WITH  AFFILIATES  TO  ALLOW  FOR  AUTHORIZED
BETTORS TO SIGN UP TO CREATE AND FUND ACCOUNTS ON MOBILE SPORTS WAGERING
PLATFORMS OFFERED BY THE CASINO.
  (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN AFFILIATE OF
A  CASINO,  OR THROUGH INTERNET WEBSITES ACCESSED VIA A MOBILE DEVICE OR
COMPUTER, OR MOBILE DEVICE APPLICATIONS.
  (C) AUTHORIZED SPORTS BETTORS MAY DEPOSIT AND WITHDRAW FUNDS IN  THEIR
ACCOUNT ON A MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO OR AN

S. 17                              13

AFFILIATE OF A CASINO, ELECTRONICALLY RECOGNIZED PAYMENT METHODS, OR ANY
OTHER MEANS APPROVED BY THE COMMISSION.
  (D)  IN  ACCORDANCE  WITH  REGULATIONS  PROMULGATED BY THE COMMISSION,
CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE
MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED  AND  MAINTAINED
BY  THE  CASINO,  AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE
PREMISES OF THE AFFILIATE.  AUTHORIZED SPORTS BETTORS MAY PLACE  ACCOUNT
WAGERS, AND PLACE AND REDEEM NON-ACCOUNT CASH WAGERS, AT SUCH KIOSKS.
  (E)  ALL  AGREEMENTS  ENTERED  INTO  BETWEEN CASINOS AND AFFILIATES IN
RELATION TO THE PROVISIONS OF THIS SECTION  SHALL  BE  APPROVED  BY  THE
COMMISSION PRIOR TO TAKING EFFECT AND SHALL INCLUDE A PLAN FOR THE TIME-
LY PAYMENT OF LIABILITIES DUE TO THE AFFILIATE UNDER THE AGREEMENT.
  §  3. Section 104 of the racing, pari-mutuel wagering and breeding law
is amended by adding a new subdivision 24 to read as follows:
  24. TO REGULATE SPORTS WAGERING IN NEW YORK STATE.
  § 4. Subdivision 15 of section 1401 of the racing, pari-mutuel  wager-
ing  and  breeding  law, as added by chapter 237 of the laws of 2016, is
amended to read as follows:
  15. "Prohibited sports event" shall  mean  any  [collegiate  sport  or
athletic  event,  any]  high school sport or athletic event or any horse
racing event.
  § 5. Paragraph (a) of subdivision 2-a of section 1009 of  the  racing,
pari-mutuel  wagering and breeding law, as amended by chapter 626 of the
laws of 1986, is amended to read as follows:
  (a) In Sullivan, Greene and Ulster counties  AND  WITHIN  THE  CAPITAL
DISTRICT  REGION  AS  DEFINED  BY  PARAGRAPH  (E)  OF SUBDIVISION ONE OF
SECTION FIVE HUNDRED NINETEEN OF THIS CHAPTER, the board shall determine
the number of such projects to be located in privately owned  hotels  in
such  counties for the exclusive use of the hotel guests.  NOTWITHSTAND-
ING THE PROVISIONS OF PARAGRAPH (A) OF SUBDIVISION FIVE OF THIS SECTION,
AN ADMISSION FEE SHALL NOT BE REQUIRED  FOR  ANY  DEMONSTRATION  PROJECT
AUTHORIZED  IN SUCH AREAS IN A GAMING FACILITY AS DEFINED IN SUBDIVISION
TWENTY-THREE OF SECTION THIRTEEN HUNDRED ONE OF THIS  CHAPTER.  PROVIDED
HOWEVER,  ON  ANY  DAY WHEN A REGIONAL HARNESS TRACK LOCATED IN SARATOGA
COUNTY CONDUCTS A LIVE RACE MEETING,  THE  DEMONSTRATION  FACILITY  WILL
PREDOMINANTLY  DISPLAY THE LIVE VIDEO OF SUCH REGIONAL HARNESS TRACK. IN
THE EVENT OF A CONFLICT WITH THE BROADCAST OF  THE  LIVE  VIDEO  FROM  A
FRANCHISE  CORPORATION RACETRACK, THE DEMONSTRATION PROJECT FACILITY MAY
CHOOSE TO SHOW THE FRANCHISE  CORPORATION  SIGNAL  INSTEAD  AND  SHOW  A
REPLAY  OF THE REGIONAL HARNESS TRACK RACE MEETING IMMEDIATELY FOLLOWING
COMPLETION OF THE FRANCHISE CORPORATION RACE.
  § 6. Severability clause. If any provision of this act or  application
thereof  shall  for  any  reason  be  adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect,  impair,  or
invalidate the remainder of the act, but shall be confined in its opera-
tion  to  the  provision thereof directly involved in the controversy in
which the judgment shall have been rendered.
  § 7. This act shall take effect on the  same  date  and  in  the  same
manner  as section 1367 of the racing, pari-mutuel wagering and breeding
law pursuant to subdivision (c) of section 52 of chapter 174 of the laws
of 2013, takes effect.

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

                                  17--A

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2019
                               ___________

Introduced  by  Sens.  ADDABBO, FUNKE -- read twice and ordered printed,
  and when printed to be committed to the Committee  on  Racing,  Gaming
  and  Wagering -- 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) "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A  CASINO
AUTHORIZED TO OPERATE A SPORTS POOL AND IS APPROVED BY THE COMMISSION TO
OPERATE A SPORTS POOL ON BEHALF OF SUCH CASINO;
  (B)  "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.  ALL SPORTS WAGERS PLACED IN ACCORDANCE WITH  THIS  SECTION  ARE
CONSIDERED PLACED OR OTHERWISE MADE WHEN RECEIVED BY THE OPERATOR AT THE
LICENSED  GAMING  FACILITY, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S
PHYSICAL LOCATION AT THE TIME THE SPORTS WAGER IS INITIATED.  THE INTER-
MEDIATE 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;
  (C) "BRAND" MEANS THE NAME AND LOGO  ON  THE  INTERFACE  OF  A  MOBILE
APPLICATION OR INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER
WHICH AUTHORIZED SPORTS BETTORS USE TO ACCESS A SPORTS BETTING PLATFORM;
  (D)  "Casino"  means  a  licensed gaming facility at which gambling is
conducted pursuant to the provisions of this article;

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

                      [ ] is old law to be omitted.
                                                           LBD05498-10-9

S. 17--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;
  [(d)] (G) "EXCHANGE WAGERING" MEANS A FORM OF  WAGERING  IN  WHICH  AN
AUTHORIZED  SPORTS  BETTOR,  ON THE ONE HAND, AND ONE OR MORE AUTHORIZED
SPORTS BETTORS, A CASINO OR AN AGENT OR AN OPERATOR, ON THE  OTHER  HAND
PLACE  IDENTICALLY  OPPOSING  SPORTS WAGERS ON AN EXCHANGE OPERATED BY A
CASINO OR AN AGENT OR AN OPERATOR;
  (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;
  (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) "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  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 AND HAS ENTERED INTO A SPORTS WAGERING AGREEMENT
PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE;
  [(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;
  [(f)] (Q) "PROHIBITED SPORTS 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
SPORTS  WAGERING,  OR  THE  PROCESSING  OF  SPORTS  WAGERING  CLAIMS  OR
PAYMENTS;

S. 17--A                            3

  (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;
  (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, OR HIGH SCHOOL SPORT OR ATHLETIC EVENT;
  [(g)] (S) "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;
  (T)  "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)]  (U)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION   THAT
PRESCRIBES  FINAL  RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT TO A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (V) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and
  (i)] (W) "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;
  (X) "SPORTS WAGERING" MEANS WAGERING ON SPORTING EVENTS OR ANY PORTION
THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES PARTIC-
IPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS,  BY  ANY
SYSTEM  OR  METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PERSON
COMMUNICATION AND ELECTRONIC  COMMUNICATION  THROUGH  INTERNET  WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
ANY WAGER THROUGH ELECTRONIC COMMUNICATION SHALL BE DEEMED TO TAKE PLACE
AT  THE  PHYSICAL  LOCATION  OF THE SERVER OR OTHER EQUIPMENT USED BY AN
OPERATOR TO ACCEPT MOBILE SPORTS WAGERING, REGARDLESS OF THE  AUTHORIZED
SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THE STATE AT THE TIME THE WAGER
IS  INITIATED.    THE  TERM  "SPORTS WAGERING" SHALL INCLUDE, BUT IS NOT
LIMITED TO, SINGLE-GAME BETS, TEASER  BETS,  PARLAYS,  OVER-UNDER  BETS,
MONEY  LINE,  POOLS,  EXCHANGE WAGERING, IN-GAME WAGERING, IN-PLAY BETS,
PROPOSITION BETS AND STRAIGHT BETS;
  (Y) "SPORTS WAGERING GROSS REVENUE" MEANS: (I) THE AMOUNT EQUAL TO THE
TOTAL OF ALL SPORTS WAGERS NOT ATTRIBUTABLE TO PROHIBITED SPORTS  EVENTS
THAT  AN  OPERATOR COLLECTS FROM ALL PLAYERS, LESS THE TOTAL OF ALL SUMS
NOT ATTRIBUTABLE TO PROHIBITED SPORTS EVENTS PAID OUT AS WINNINGS TO ALL

S. 17--A                            4

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;
  (Z) "Sports wagering lounge" means an area wherein a  sports  pool  is
operated;
  (AA)  "TIER  ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
  (BB) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER;
  (CC) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER  A
TIER ONE NOR A TIER TWO SPORTS WAGER; AND
  (DD)  "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.
  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  responsibility
for  the  implementation of this section and shall have all other duties
specified in this section with regard to the operation of a sports pool.
The license to operate a sports pool shall be in addition to  any  other
license  required to be issued to operate a [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 SPORTS 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.

S. 17--A                            5

  [(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,  OR  THROUGH
MOBILE  SPORTS  WAGERING  OFFERED  PURSUANT  TO SECTION THIRTEEN HUNDRED
SIXTY-SEVEN-A OF THIS TITLE. 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 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.
  (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,  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)]  (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 wager-
ing lounge may be required to be registered, if appropriate, in  accord-
ance 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.] 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 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

S. 17--A                            6

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  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.
  6. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
REPORT TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY  OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I)  THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED SPORTS
BETTORS;
  (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
  (III) THE TOTAL AMOUNT OF SPORTS WAGERING GROSS  REVENUE  RECEIVED  BY
THE CASINO;
  (IV)  THE  TOTAL  AMOUNT CONTRIBUTED IN SPORTS BETTING ROYALTY REVENUE
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V) THE TOTAL AMOUNT OF  WAGERS  RECEIVED  ON  EACH  SPORTS  GOVERNING
BODY'S SPORTING EVENTS;
  (VI) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED SPORTS 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 SPORTS BETTORS THAT REQUESTED TO
EXCLUDE THEMSELVES FROM SPORTS 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 SPORTS WAGERING SHALL  REMIT  TO  THE  COMMISSION  A  SPORTS
WAGERING  ROYALTY  FEE  OF  ONE-FIFTH (.20) OF ONE PERCENT OF THE AMOUNT

S. 17--A                            7

WAGERED ON  SPORTS  EVENTS  CONDUCTED  BY  REGISTERED  SPORTS  GOVERNING
BODIES.    THE  FEE  SHALL  BE  REMITTED ON A FORM AS THE COMMISSION MAY
REQUIRE, ON WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE  OF  WAGERING
DURING  THE  REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  REGISTERED SPORT
GOVERNING BODY'S SPORTS EVENTS.
  (B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH  YEAR,  A  REGISTERED
SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE ROYALTY
FEE  FUNDS  REMITTED  BY  CASINOS IN THE PREVIOUS CALENDAR YEAR ON THEIR
RESPECTIVE SPORTS EVENTS.  WITHIN THIRTY DAYS OF  SUBMITTING  ITS  CLAIM
FOR  DISBURSEMENT,  THE REGISTERED SPORTS GOVERNING BODY SHALL MEET WITH
THE COMMISSION TO PROVIDE THE  COMMISSION  WITH  EVIDENCE  OF  POLICIES,
PROCEDURES  AND  TRAINING  PROGRAMS  IT  HAS  IMPLEMENTED TO PROTECT THE
INTEGRITY OF ITS SPORTS EVENTS.
  (C) WITHIN THIRTY DAYS OF  ITS  MEETING  WITH  THE  REGISTERED  SPORTS
GOVERNING  BODY,  THE  COMMISSION  SHALL  APPROVE  A  TIMELY  CLAIM  FOR
DISBURSEMENT.
  (D) BEFORE ANY REGISTERED SPORTS GOVERNING BODY MAY RECEIVE  ANY  SUCH
DISBURSEMENT  OF THE ROYALTY FEE FUNDS, SUCH SPORTS 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 SUCH 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 SPORTS GOVERNING BODIES AND WITH  THE
APPROPRIATE JURISDICTION'S LAW ENFORCEMENT AUTHORITIES.
  8. 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, EXCLUDING SPORTS WAGERING  GROSS  REVENUE
ATTRIBUTED  TO  MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIR-
TEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE. CASINOS SHALL PAY A TAX EQUIV-
ALENT OF TWELVE PERCENT OF THEIR SPORTS WAGERING  GROSS  REVENUE  ATTRI-
BUTED  TO  MOBILE  SPORTS  WAGERING OFFERED PURSUANT TO SECTION THIRTEEN
HUNDRED SIXTY-SEVEN-A OF THIS TITLE.
  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 SPORTS WAGERING. THE
COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
FOUR  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION EIGHT OF THIS SECTION, AT SUCH TIMES, UNDER  SUCH  CONDI-

S. 17--A                            8

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  SPORTS
WAGERING  UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS, AUTHORIZATION
PURSUANT TO THIS SECTION.
  12. 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.
  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 A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
  (B) CASINOS SHALL MAINTAIN RECORDS OF SPORTS  WAGERING  OPERATIONS  IN
ACCORDANCE  WITH  REGULATIONS PROMULGATED BY THE COMMISSION. THESE REGU-
LATIONS SHALL, AT A MINIMUM, REQUIRE A CASINO  TO  ADOPT  PROCEDURES  TO
OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL WHO PLAC-
ES ANY SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER.
  (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
MATION.
  (D)  THE  COMMISSION  AND  CASINOS SHALL COOPERATE WITH INVESTIGATIONS
CONDUCTED BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT  AGENCIES,
INCLUDING  BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION OF
ACCOUNT-LEVEL BETTING INFORMATION AND AUDIO OR VIDEO FILES  RELATING  TO

S. 17--A                            9

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.
  (E) CASINOS SHALL PROMPTLY REPORT TO THE  COMMISSION  ANY  INFORMATION
RELATING TO:
  (I)  CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE CASINO
IN CONNECTION WITH ITS OPERATIONS;
  (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
  (III) ANY POTENTIAL BREACH OF THE  RELEVANT  SPORTS  GOVERNING  BODY'S
INTERNAL  RULES  AND  CODES OF CONDUCT PERTAINING TO SPORTS WAGERING, AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
  (IV) ANY OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF  A  SPORTING
EVENT  OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH FIXING;
AND
  (V) SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR LAUNDER FUNDS
DERIVED FROM ILLEGAL ACTIVITY,  USING  AGENTS  TO  PLACE  WAGERS,  USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
  THE  COMMISSION  SHALL  ALSO  PROMPTLY  REPORT INFORMATION RELATING TO
CONDUCT DESCRIBED IN SUBPARAGRAPHS (II), (III) AND (IV)  OF  THIS  PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (F) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY  A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  (G) THE COMMISSION, BY REGULATION, MAY AUTHORIZE  AND  PROMULGATE  ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES  THEREOF  TO  ENABLE  THE  SHARING OF INFORMATION TO FACILITATE
INTEGRITY MONITORING AND THE CONDUCT  OF  INVESTIGATIONS  INTO  ABNORMAL
BETTING  ACTIVITY,  MATCH  FIXING,  AND  OTHER  CONDUCT  THAT CORRUPTS A
BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF  FINANCIAL
GAIN.
  (H)  THE  COMMISSION  SHALL STUDY THE POTENTIAL FOR THE CREATION OF AN
INTERSTATE DATABASE OF ALL SPORTS WAGERING INFORMATION FOR  THE  PURPOSE
OF  INTEGRITY  MONITORING, AND SHALL CREATE A FINAL REPORT REGARDING ALL
FINDINGS AND RECOMMENDATIONS TO BE  DELIVERED  UPON  COMPLETION  OF  ALL
OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO
THOUSAND  TWENTY,  TO  THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE
TEMPORARY PRESIDENT OF THE SENATE.
  14. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY  DEEM  APPROPRIATE
FOR DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING 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

S. 17--A                           10

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  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  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.
  15.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  16. SPORTS 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  SPORTS WAGERING IN VIOLATION OF THIS SECTION IS
PROHIBITED.
  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
SPORTS WAGERING UNDER THIS SECTION OR SECTION  THIRTEEN  HUNDRED  SIXTY-
SEVEN-A  OF  THIS  TITLE,  AND WHO KNOWINGLY OFFERS OR ATTEMPTS TO OFFER
SPORTS WAGERING OR MOBILE SPORTS WAGERING IN NEW YORK  SHALL  BE  LIABLE
FOR  A  CIVIL  PENALTY OF NOT MORE THAN ONE HUNDRED THOUSAND DOLLARS FOR
EACH VIOLATION, NOT TO EXCEED FIVE MILLION DOLLARS FOR VIOLATIONS  ARIS-
ING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY  VIOLATES  ANY  PROCEDURE  IMPLEMENTED  UNDER THIS SECTION, OR
SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE,  SHALL  BE  LIABLE
FOR  A  CIVIL  PENALTY  OF  NOT MORE THAN FIVE THOUSAND DOLLARS FOR EACH
VIOLATION, NOT TO EXCEED FIFTY THOUSAND DOLLARS FOR  VIOLATIONS  ARISING
OUT  OF  THE  SAME  TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.

S. 17--A                           11

  § 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" FOR PURPOSES OF THIS SECTION, MEANS A CASINO WHICH  HAS
ELECTED  TO OFFER A MOBILE SPORTS WAGERING PLATFORM, AN INDIAN TRIBE (OR
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  AND  HAS
ENTERED  INTO A SPORTS WAGERING AGREEMENT TO OPERATE WITH THE COMMISSION
PURSUANT TO THIS SECTION, OR THE AGENT OF SUCH LICENSED GAMING  FACILITY
OR SUCH INDIAN TRIBE.
  2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A  MOBILE  SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW YORK STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY USE ONE MOBILE SPORTS WAGERING PLATFORM AND BRAND PROVIDED THAT SUCH
PLATFORM AND BRAND HAS BEEN REVIEWED AND APPROVED BY THE  COMMISSION.  A
CASINO  MAY  CONTRACT WITH AN INDEPENDENT OPERATOR TO PROVIDE ITS MOBILE
SPORTS WAGERING PLATFORM.
  (B) REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT  FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  (C)  THE  COMMISSION SHALL PUBLISH A LIST OF ALL OPERATORS AND CASINOS
REGISTERED TO OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO
THIS SECTION ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  3. IN THE EVENT THAT A CASINO CONTRACTS WITH AN  OPERATOR  TO  PROVIDE
ITS  MOBILE  SPORTS  WAGERING  PLATFORM  AND  BRAND, SUCH OPERATOR SHALL
OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE PRIOR TO THE EXECUTION OF
ANY SUCH CONTRACT, AND SUCH LICENSE SHALL  BE  ISSUED  PURSUANT  TO  THE
PROVISIONS  OF SECTION THIRTEEN HUNDRED TWENTY-SEVEN OF THIS ARTICLE AND
IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE COMMISSION.
  3-A. (A) AS A CONDITION OF REGISTRATION AS AN  OPERATOR,  EACH  CASINO
SHALL AGREE, UPON REQUEST OF A TRIBE THAT HAS NOT ENTERED INTO AN AGREE-
MENT  FOR  MOBILE SPORTS WAGERING WITH ANOTHER CASINO, TO PROVIDE A SITE
FOR A MOBILE SPORTS WAGERING SERVER AND RELATED EQUIPMENT FOR THE INDIAN
TRIBE AS DIRECTED BY THE COMMISSION, AT NO COST TO THE TRIBE EXCEPT  THE
DIRECT  AND ACTUAL COST OF HOSTING THE SERVER OR OTHER EQUIPMENT USED BY
THE INDIAN TRIBE AS DETERMINED BY THE COMMISSION.
  (B) AS A CONDITION OF REGISTRATION AS AN OPERATOR IN NEW  YORK  STATE,
AN  INDIAN  TRIBE SHALL ENTER INTO AN AGREEMENT WITH THE COMMISSION WITH
RESPECT TO MOBILE SPORTS WAGERING:
  (I) TO FOLLOW THE REQUIREMENTS IMPOSED UNDER THIS SECTION AND  SECTION
THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE WITH RESPECT TO MOBILE SPORTS
WAGERING;  TO  ADHERE  TO  THE REGULATIONS PROMULGATED BY THE COMMISSION
PURSUANT TO THIS SECTION WITH RESPECT TO MOBILE SPORTS WAGERING, AND  TO
SUBMIT TO THE COMMISSION'S ENFORCEMENT OF THIS SECTION AND SECTION THIR-
TEEN HUNDRED SIXTY-SEVEN OF THIS TITLE AND REGULATIONS PROMULGATED THER-
EUNDER  WITH  RESPECT  TO  MOBILE  SPORTS WAGERING, INCLUDING BY WAIVING
TRIBAL SOVEREIGN IMMUNITY FOR THE  SOLE  AND  LIMITED  PURPOSE  OF  SUCH
ENFORCEMENT.  NOTHING  HEREIN  SHALL BE CONSTRUED AS REQUIRING AN INDIAN
TRIBE'S AGREEMENT TO ADHERE TO  THE  REQUIREMENTS  OF  SECTION  THIRTEEN
HUNDRED  SIXTY-SEVEN  OF THIS TITLE FOR GAMING CONDUCTED ON TRIBAL LANDS
AS A CONDITION OF OFFERING MOBILE SPORTS WAGERING UNDER THIS SECTION;
  (II) TO WAIVE THE TRIBE'S EXCLUSIVE  GEOGRAPHIC  RIGHT  TO  OFFER  AND
CONDUCT MOBILE SPORTS WAGERING, BUT NOT OTHERWISE;

S. 17--A                           12

  (III)  TO  REMIT  PAYMENT TO THE STATE EQUAL TO TAX ON SPORTS WAGERING
REVENUE IMPOSED UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE
WITH RESPECT TO MOBILE SPORTS WAGERING;
  (IV) NOT TO OFFER OR TO CONDUCT MOBILE GAMING OTHER THAN MOBILE SPORTS
WAGERING PURSUANT TO THIS SECTION UNLESS SUCH MOBILE GAMING IS OTHERWISE
AUTHORIZED BY STATE OR FEDERAL LAW;
  (V)  TO  LOCATE THE SERVER OR OTHER EQUIPMENT USED BY THE INDIAN TRIBE
OR ITS AGENT TO ACCEPT MOBILE SPORTS WAGERING AT A CASINO AS DEFINED  IN
PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN
OF  THIS  TITLE  THAT  HAS APPLIED FOR AND IS ELIGIBLE TO REGISTER AS AN
OPERATOR OF MOBILE SPORTS WAGERING PURSUANT TO THIS SECTION AND  TO  PAY
THE  ACTUAL  COST OF HOSTING THE SERVER OR OTHER EQUIPMENT AS DETERMINED
BY THE COMMISSION.
  (C) ALL AGREEMENTS ENTERED INTO CASINOS AND INDIAN TRIBES WITH RESPECT
TO HOSTING MOBILE SPORTS WAGERING PLATFORMS FOR AN INDIAN TRIBE:
  (I) MUST BE APPROVED BY THE COMMISSION  PRIOR  TO  TAKING  EFFECT  AND
BEFORE  REGISTRATION  OF THE CASINO OR INDIAN TRIBE AS AN OPERATOR UNDER
THIS SECTION;
  (II) MUST PROVIDE THAT THE INDIAN TRIBE MAY, AT ITS  SOLE  DISCRETION,
TERMINATE  THE  AGREEMENT  AND ALL COMMITMENTS, UNDERTAKINGS AND WAIVERS
MADE BY THE INDIAN TRIBE THEREUNDER,  EXCEPT  THAT  THE  INDIAN  TRIBE'S
WAIVER  OF  ITS  EXCLUSIVE  GEOGRAPHIC RIGHT TO OFFER AND CONDUCT MOBILE
SPORTS WAGERING SHALL SURVIVE THE TERMINATION OF THE AGREEMENT;
  (III) SHALL BE LIMITED IN APPLICABILITY SOLELY TO THE  INDIAN  TRIBE'S
OPERATION  OF  MOBILE  SPORTS  BETTING AND SHALL NOT EXTEND TO ANY OTHER
OPERATION OR ACTIVITY OF THE INDIAN TRIBE; AND
  (IV) SHALL NOT CREATE ANY RIGHTS OR PRIVILEGES TO ANY THIRD PARTY  WHO
IS  NOT  A PARTY TO THE AGREEMENT, EXCEPT THAT THE COMMISSION SHALL HAVE
THE POWER TO ENFORCE THE AGREEMENT INCLUDING BY REVOKING  OR  SUSPENDING
THE  REGISTRATION  OF  A PARTY THAT FAILS TO COMPLY WITH ITS OBLIGATIONS
UNDER THE AGREEMENT.
  (D) NO MOBILE SPORTS  WAGERING  MAY  BE  CONDUCTED  WITHIN  AN  INDIAN
TRIBE'S EXCLUSIVE GEOGRAPHIC AREA UNLESS SUCH INDIAN TRIBE IS REGISTERED
AS AN OPERATOR UNDER THIS SECTION.
  3-B.(A)  THE  COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT THE
PROVISIONS OF THIS SECTION, INCLUDING:
  (I) THE DEVELOPMENT OF THE INITIAL FORM OF THE APPLICATION FOR  REGIS-
TRATION;
  (II) RESPONSIBLE PROTECTIONS WITH REGARD TO COMPULSIVE PLAY SAFEGUARDS
FOR FAIR PLAY;
  (III)  REQUIRING  THAT OPERATORS ADOPT CONTROLS TO PREVENT MINORS FROM
CREATING ACCOUNTS AND PLACING WAGERS;
  (IV) REQUIRING THAT OPERATORS ADOPT CONTROLS TO MAINTAIN THE EFFICIEN-
CY OF SELF-EXCLUSION LIMITS; AND
  (V) REQUIRING THAT OPERATORS UTILIZE COMMERCIALLY  REASONABLE  TECHNO-
LOGICAL MEANS OF VERIFYING ACCOUNT HOLDERS' IDENTITIES.
  (B) THE COMMISSION SHALL PRESCRIBE THE INITIAL FORM OF THE APPLICATION
FOR REGISTRATION, FOR OPERATORS, WHICH SHALL REQUIRE, BUT NOT BE LIMITED
TO:
  (I) THE FULL NAME AND PRINCIPAL ADDRESS OF THE OPERATOR;
  (II) IF A CORPORATION, THE NAME OF THE STATE IN WHICH INCORPORATED AND
THE  FULL  NAMES AND ADDRESSES OF ANY PARTNER, OFFICER, DIRECTOR, SHARE-
HOLDER HOLDING TEN  PERCENT  OR  MORE  EQUITY,  AND  ULTIMATE  EQUITABLE
OWNERS;

S. 17--A                           13

  (III)  IF  A  BUSINESS ENTITY OTHER THAN A CORPORATION, THE FULL NAMES
AND ADDRESSES OF THE PRINCIPALS,  PARTNERS,  SHAREHOLDERS  HOLDING  FIVE
PERCENT OR MORE EQUITY, AND ULTIMATE EQUITABLE OWNERS;
  (IV)  WHETHER SUCH CORPORATION OR ENTITY FILES INFORMATION AND REPORTS
WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY
SECTION THIRTEEN OF THE SECURITIES EXCHANGE ACT OF 1934,  15  U.S.C.  §§
78A-78KK;  OR  WHETHER  THE  SECURITIES OF THE CORPORATION OR ENTITY ARE
REGULARLY TRADED ON AN  ESTABLISHED  SECURITIES  MARKET  IN  THE  UNITED
STATES;
  (V)  THE TYPE AND ESTIMATED NUMBER OF CONTESTS TO BE CONDUCTED ANNUAL-
LY; AND
  (VI) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE OPERATOR.
  (C) THE COMMISSION MAY REQUIRE THE FULL NAMES  AND  ADDRESSES  OF  THE
OFFICERS  AND  DIRECTORS  OF  ANY CREDITOR OF THE OPERATOR, AND OF THOSE
STOCKHOLDERS WHO HOLD MORE THAN TEN PERCENT OF THE STOCK OF  THE  CREDI-
TOR.
  (D)  UPON RECEIPT OF AN APPLICATION FOR REGISTRATION FOR EACH INDIVID-
UAL LISTED ON SUCH APPLICATION AS AN OFFICER OR DIRECTOR, THE COMMISSION
SHALL SUBMIT TO THE DIVISION OF CRIMINAL JUSTICE SERVICES A SET OF FING-
ERPRINTS, AND THE DIVISION OF CRIMINAL JUSTICE SERVICES  PROCESSING  FEE
IMPOSED  PURSUANT  TO SUBDIVISION EIGHT-A OF SECTION EIGHT HUNDRED THIR-
TY-SEVEN OF THE EXECUTIVE LAW AND ANY FEE IMPOSED BY THE FEDERAL  BUREAU
OF  INVESTIGATION.  UPON  RECEIPT  OF  THE FINGERPRINTS, THE DIVISION OF
CRIMINAL JUSTICE SERVICES SHALL PROMPTLY FORWARD A SET OF  THE  INDIVID-
UAL'S  FINGERPRINTS  TO  THE  FEDERAL  BUREAU  OF  INVESTIGATION FOR THE
PURPOSE OF A NATIONWIDE  CRIMINAL  HISTORY  RECORD  CHECK  TO  DETERMINE
WHETHER  SUCH INDIVIDUAL HAS BEEN CONVICTED OF A CRIMINAL OFFENSE IN ANY
STATE OTHER THAN NEW YORK OR IN A FEDERAL JURISDICTION. THE DIVISION  OF
CRIMINAL  JUSTICE SERVICES SHALL PROMPTLY PROVIDE THE REQUESTED CRIMINAL
HISTORY INFORMATION TO THE COMMISSION. FOR THE PURPOSES OF THIS SECTION,
THE TERM "CRIMINAL HISTORY INFORMATION"  SHALL  MEAN  A  RECORD  OF  ALL
CONVICTIONS  OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN
INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE  FEDERAL
BUREAU  OF  INVESTIGATION. ALL SUCH CRIMINAL HISTORY INFORMATION SENT TO
THE COMMISSION PURSUANT TO THIS SUBDIVISION SHALL  BE  CONFIDENTIAL  AND
SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE
COMMISSION, UNLESS OTHERWISE AUTHORIZED BY LAW.
  (E) UPON RECEIPT OF CRIMINAL HISTORY INFORMATION PURSUANT TO PARAGRAPH
(D)  OF  THIS  SUBDIVISION, THE COMMISSION SHALL MAKE A DETERMINATION TO
APPROVE OR DENY AN APPLICATION FOR REGISTRATION; PROVIDED, HOWEVER, THAT
BEFORE MAKING A DETERMINATION ON SUCH APPLICATION, THE COMMISSION  SHALL
PROVIDE  THE  SUBJECT OF THE RECORD WITH A COPY OF SUCH CRIMINAL HISTORY
INFORMATION AND A COPY OF ARTICLE TWENTY-THREE-A OF THE  CORRECTION  LAW
AND  INFORM SUCH PROSPECTIVE APPLICANT SEEKING TO BE CREDENTIALED OF HIS
OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT  INFORMATION  CONTAINED
IN  SUCH  CRIMINAL  HISTORY  INFORMATION PURSUANT TO THE REGULATIONS AND
PROCEDURES ESTABLISHED BY THE DIVISION  OF  CRIMINAL  JUSTICE  SERVICES.
THE  COMMISSION SHALL DENY ANY APPLICATION FOR REGISTRATION, OR SUSPEND,
REFUSE TO RENEW, OR REVOKE ANY EXISTING REGISTRATION ISSUED PURSUANT  TO
THIS  ARTICLE,  UPON THE FINDING THAT THE OPERATOR OR REGISTRANT, OR ANY
PARTNER, OFFICER, DIRECTOR, OR SHAREHOLDER:
  (I) HAS KNOWINGLY MADE A FALSE  STATEMENT  OF  MATERIAL  FACT  OR  HAS
DELIBERATELY  FAILED TO DISCLOSE ANY INFORMATION REQUIRED BY THE COMMIS-
SION;
  (II) HAS HAD A GAMING REGISTRATION OR LICENSE  DENIED,  SUSPENDED,  OR
REVOKED IN ANY OTHER STATE OR COUNTRY FOR JUST CAUSE;

S. 17--A                           14

  (III)  HAS  LEGALLY DEFAULTED IN THE PAYMENT OF ANY OBLIGATION OR DEBT
DUE TO ANY STATE OR POLITICAL SUBDIVISION; OR
  (IV)  HAS  AT ANY TIME KNOWINGLY FAILED TO COMPLY WITH ANY REQUIREMENT
OUTLINED IN THIS SECTION, ANY OTHER PROVISION OF THIS ARTICLE, ANY REGU-
LATIONS PROMULGATED BY THE COMMISSION OR ANY ADDITIONAL REQUIREMENTS  OF
THE COMMISSION.
  (F)  ALL  DETERMINATIONS TO APPROVE OR DENY AN APPLICATION PURSUANT TO
THIS ARTICLE SHALL BE PERFORMED IN A MANNER CONSISTENT WITH  SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE  TWENTY-THREE-A OF THE CORRECTION LAW. WHEN THE COMMISSION DENIES AN
APPLICATION, THE OPERATOR SHALL BE AFFORDED NOTICE AND THE RIGHT  TO  BE
HEARD  AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN ACCORDANCE
WITH THE REGULATIONS OF THE COMMISSION.
  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR  SHOULD
HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR
PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;
  (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
CERTAINTY,  THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED WITHIN
THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
  (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
INCLUDES:
  (1) IF AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR  HAS  CREATED
AN  ACCOUNT,  OR  ACCESSED  THE  ACCOUNT OF ANOTHER, SUCH OPERATOR SHALL
PROMPTLY, WITHIN NO MORE THAN TWO  BUSINESS  DAYS,  REFUND  ANY  DEPOSIT
RECEIVED  FROM  THE  MINOR,  WHETHER  OR NOT THE MINOR HAS ENGAGED IN OR
ATTEMPTED TO ENGAGE IN SPORTS  WAGERING;  PROVIDED,  HOWEVER,  THAT  ANY
REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
  (2)  EACH  OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES TO ALLOW
PARENTS OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS  WAGER-
ING  OR  PLATFORM.  SUCH  PROCEDURES SHALL INCLUDE A TOLL-FREE NUMBER TO
CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
  (3) EACH OPERATOR SHALL TAKE APPROPRIATE  STEPS  TO  CONFIRM  THAT  AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;
  (IV)  WHEN  REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING IN ADVER-
TISEMENTS OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND  CONSPICU-
OUS  STATEMENTS  THAT  ARE  NOT  INACCURATE OR MISLEADING CONCERNING THE
CHANCES OF WINNING AND THE NUMBER OF WINNERS;
  (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS
WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING
IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
  (VI) PERMIT ANY AUTHORIZED  SPORTS  BETTOR  TO  PERMANENTLY  CLOSE  AN
ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY
SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON;
  (VII)  OFFER  INTRODUCTORY  PROCEDURES  FOR AUTHORIZED SPORTS BETTORS,
THAT SHALL BE PROMINENTLY DISPLAYED ON THE MAIN PAGE  OF  SUCH  OPERATOR
PLATFORM, THAT EXPLAIN SPORTS WAGERING;
  (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

S. 17--A                           15

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;
  (XII) ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED  SPORTS
EVENT;
  (XIII)  PERMIT  ACCOUNT  HOLDERS  TO  ESTABLISH  SELF-EXCLUSION GAMING
LIMITS ON A DAILY, WEEKLY, AND MONTHLY BASIS  THAT  ENABLE  THE  ACCOUNT
HOLDER  TO  IDENTIFY  THE  MAXIMUM AMOUNT OF MONEY AN ACCOUNT HOLDER MAY
DEPOSIT DURING SUCH PERIOD OF TIME; AND
  (XIV) WHEN AN ACCOUNT HOLDER'S LIFETIME DEPOSITS EXCEED  TWO  THOUSAND
FIVE  HUNDRED DOLLARS, THE OPERATOR SHALL PREVENT ANY WAGERING UNTIL THE
PATRON IMMEDIATELY ACKNOWLEDGES, AND ACKNOWLEDGES EACH YEAR  THEREAFTER,
THAT  THE  ACCOUNT HOLDER HAS MET THE DEPOSIT THRESHOLD AND MAY ELECT TO
ESTABLISH RESPONSIBLE GAMING  LIMITS  OR  CLOSE  THE  ACCOUNT,  AND  THE
ACCOUNT  HOLDER  HAS  RECEIVED  DISCLOSURES FROM THE OPERATOR CONCERNING
PROBLEM GAMBLING RESOURCES.
  (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY  OPERATE,  PROMOTE,  OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E)  ADVERTISEMENTS  FOR  CONTESTS  AND  PRIZES OFFERED BY AN OPERATOR
SHALL NOT TARGET PROHIBITED SPORTS  BETTORS,  MINORS,  OR  SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING  PROGRAMS FOR ANY EXCHANGE WAGERING CONTEST AND ENSURE THAT MEASURES
ARE IN PLACE TO DETER, DETECT AND, TO THE  EXTENT  REASONABLY  POSSIBLE,
PREVENT  CHEATING, INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES,
INCLUDING USE OF SOFTWARE PROGRAMS THAT SUBMIT EXCHANGE WAGERING  SPORTS
WAGERS UNLESS OTHERWISE APPROVED BY THE COMMISSION.
  (G)  OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE
MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A  COMPLAINT  BY
AN  AUTHORIZED  SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE
SHALL BE GIVEN BY SUCH OPERATOR TO  SUCH  BETTOR  FILING  THE  COMPLAINT
WITHIN  FORTY-EIGHT  HOURS.  A  COMPLETE RESPONSE SHALL BE GIVEN BY SUCH
OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN  BUSINESS  DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
  (H)  OPERATORS  SHALL  MAINTAIN  RECORDS  OF ALL ACCOUNTS BELONGING TO
AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.
  (I) THE SERVER OR OTHER EQUIPMENT WHICH IS  USED  BY  AN  OPERATOR  TO
ACCEPT  MOBILE  SPORTS  WAGERING SHALL BE LOCATED IN THE LICENSED GAMING
FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.
  (J) ALL MOBILE SPORTS WAGERING INITIATED IN THIS STATE SHALL BE DEEMED
TO TAKE PLACE AT THE LICENSED GAMING FACILITY WHERE THE SERVER OR  OTHER
EQUIPMENT  USED  BY  AN  OPERATOR  TO  ACCEPT  MOBILE SPORTS WAGERING IS
LOCATED, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL  LOCATION
WITHIN THIS STATE.
  (K)  ALL  MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN COMPLIANCE WITH
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.

S. 17--A                           16

  (L) PERMIT AN INDIAN TRIBE PURSUANT TO PARAGRAPH  (A)  OF  SUBDIVISION
THREE-A  OF  THIS  SECTION  TO PLACE AT THE LICENSED GAMING FACILITY THE
SERVER OR OTHER EQUIPMENT BY WHICH THE INDIAN TRIBE  MAY  ACCEPT  MOBILE
SPORTS  WAGERING,  AND TO MAKE COMMERCIALLY REASONABLE ACCOMMODATIONS AS
MAY BE NECESSARY TO PLACE AND OPERATE THE INDIAN TRIBE'S SERVER OR OTHER
EQUIPMENT.
  5.  (A)  SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO AGREEMENTS WITH OPERATORS TO ALLOW FOR AUTHORIZED BETTORS
TO SIGN UP TO CREATE AND FUND ACCOUNTS ON MOBILE SPORTS  WAGERING  PLAT-
FORMS OFFERED BY THE CASINO.
  (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE  SPORTS  WAGERING  PLATFORM  IN  PERSON AT A CASINO OR THROUGH AN
OPERATORS' INTERNET WEBSITE 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,
ELECTRONICALLY RECOGNIZED  PAYMENT  METHODS,  OR  VIA  ANY  OTHER  MEANS
APPROVED BY THE COMMISSION.
  6.  THE  COMMISSION  SHALL  ANNUALLY CAUSE A REPORT TO BE PREPARED AND
DISTRIBUTED TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPACT OF  MOBILE
SPORTS  WAGERING  ON  PROBLEM  GAMBLERS IN NEW YORK. THE REPORT SHALL BE
PREPARED BY A NON-GOVERNMENTAL ORGANIZATION OR ENTITY WITH EXPERTISE  IN
SERVING  THE NEEDS OF PERSONS WITH GAMBLING ADDICTIONS. THE REPORT SHALL
BE PREPARED AND DISTRIBUTED UNDER THE SUPERVISION OF AND IN COORDINATION
WITH THE COMMISSION. THE  COSTS  ASSOCIATED  WITH  THE  PREPARATION  AND
DISTRIBUTION  OF  THE REPORT SHALL BE BORNE BY OPERATORS AND THE COMMIS-
SION SHALL BE AUTHORIZED TO ASSESS A FEE  AGAINST  OPERATORS  FOR  THESE
PURPOSES.  THE COMMISSION SHALL ALSO REPORT PERIODICALLY TO THE GOVERNOR
AND THE LEGISLATURE ON THE EFFECTIVENESS OF THE STATUTORY AND REGULATORY
CONTROLS IN PLACE TO ENSURE THE  INTEGRITY  OF  MOBILE  SPORTS  WAGERING
OPERATIONS.
  §  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, as amended, takes effect.

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

                                  17--B

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2019
                               ___________

Introduced  by  Sens.  ADDABBO,  FUNKE,  RAMOS -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Racing,
  Gaming  and  Wagering  --  committee discharged, bill amended, ordered
  reprinted as amended and recommitted to  said  committee  --  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, AN  OPERA-
TOR  OF  VIDEO  LOTTERY  GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION
SIXTEEN HUNDRED SEVENTEEN-A OF THE  TAX  LAW,  WHICH  HAS  AN  AFFILIATE
AGREEMENT  WITH A CASINO PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV-
EN-A OF THIS TITLE. IN A COUNTY THAT DOES NOT HAVE AN  "AFFILIATE",  ANY
PROFESSIONAL  SPORTS  STADIUM  OR  ARENA  IN THAT COUNTY MAY SERVE AS AN
AFFILIATE;
  (B) "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A  CASINO
AUTHORIZED TO OPERATE A SPORTS POOL AND IS APPROVED BY THE COMMISSION TO
OPERATE A SPORTS POOL ON BEHALF OF SUCH CASINO;
  (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.  ALL SPORTS WAGERS PLACED IN ACCORDANCE WITH  THIS  SECTION  ARE

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

                      [ ] is old law to be omitted.
                                                           LBD05498-12-9

S. 17--B                            2

CONSIDERED PLACED OR OTHERWISE MADE WHEN RECEIVED BY THE OPERATOR AT THE
LICENSED  GAMING  FACILITY, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S
PHYSICAL LOCATION AT THE TIME THE SPORTS WAGER IS INITIATED.  THE INTER-
MEDIATE  ROUTING  OF  ELECTRONIC  DATA  IN CONNECTION WITH MOBILE SPORTS
WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A  WAGER
IS INITIATED, RECEIVED OR OTHERWISE MADE;
  (D)  "BRAND"  MEANS  THE  NAME  AND  LOGO ON THE INTERFACE OF A MOBILE
APPLICATION OR INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER
WHICH AUTHORIZED SPORTS BETTORS USE TO ACCESS A SPORTS BETTING PLATFORM;
  (E) "Casino" means a licensed gaming facility  at  which  gambling  is
conducted pursuant to the provisions of this article;
  [(b)]  (F)  "Commission"  means the commission established pursuant to
section one hundred two of this chapter;
  [(c)] (G) "Collegiate sport  or  athletic  event"  means  a  sport  or
athletic  event  offered  or sponsored by or played in connection with a
public or private institution that offers  educational  services  beyond
the secondary level;
  [(d)]  (H)  "EXCHANGE  WAGERING"  MEANS A FORM OF WAGERING IN WHICH AN
AUTHORIZED SPORTS BETTOR, ON THE ONE HAND, AND ONE  OR  MORE  AUTHORIZED
SPORTS  BETTORS,  A CASINO OR AN AGENT OR AN OPERATOR, ON THE OTHER HAND
PLACE IDENTICALLY OPPOSING SPORTS WAGERS ON AN EXCHANGE  OPERATED  BY  A
CASINO OR AN AGENT OR AN OPERATOR;
  (I)  "GLOBAL RISK MANAGEMENT" MEANS THE DIRECTION, MANAGEMENT, CONSUL-
TATION AND/OR INSTRUCTION FOR PURPOSES OF MANAGING RISKS ASSOCIATED WITH
SPORTS WAGERING CONDUCTED PURSUANT TO  THIS  SECTION  AND  INCLUDES  THE
SETTING  AND  ADJUSTMENT  OF  BETTING  LINES, POINT SPREADS, OR ODDS AND
WHETHER TO PLACE LAYOFF BETS AS PERMITTED BY THIS SECTION;
  (J) "HIGH SCHOOL SPORT OR ATHLETIC EVENT" MEANS A  SPORT  OR  ATHLETIC
EVENT  OFFERED  OR SPONSORED BY OR PLAYED IN CONNECTION WITH A PUBLIC OR
PRIVATE INSTITUTION THAT OFFERS  EDUCATION  SERVICES  AT  THE  SECONDARY
LEVEL;
  (K)  "HORSE  RACING EVENT" MEANS ANY SPORT OR ATHLETIC EVENT CONDUCTED
IN NEW YORK STATE SUBJECT TO THE  PROVISIONS  OF  ARTICLES  TWO,  THREE,
FOUR,  FIVE,  SIX, NINE, TEN AND ELEVEN OF THIS CHAPTER, OR ANY SPORT OR
ATHLETIC EVENT CONDUCTED OUTSIDE OF NEW YORK STATE, WHICH  IF  CONDUCTED
IN NEW YORK STATE WOULD BE SUBJECT TO THE PROVISIONS OF THIS CHAPTER;
  (L)  "IN-PLAY  SPORTS  WAGER"  MEANS A SPORTS WAGER PLACED ON A SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
  (M) "LAYOFF BET" MEANS A SPORTS WAGER PLACED BY A CASINO  SPORTS  POOL
WITH ANOTHER CASINO SPORTS POOL;
  (N) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (O) "MOBILE SPORTS WAGERING PLATFORM" OR "PLATFORM" MEANS THE COMBINA-
TION  OF  HARDWARE, SOFTWARE, AND DATA NETWORKS USED TO MANAGE, ADMINIS-
TER, OR CONTROL SPORTS WAGERING AND ANY ASSOCIATED WAGERS ACCESSIBLE  BY
ANY ELECTRONIC MEANS INCLUDING MOBILE APPLICATIONS AND INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER;
  (P)  "OFFICIAL  LEAGUE  DATA" MEANS STATISTICS, RESULTS, OUTCOMES, AND
OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE
RELEVANT SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY  THE
SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
  (Q)  "Operator"  means  a casino which has elected to operate a sports
pool (OR AGENT OF SUCH CASINO) 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  AND  HAS  ENTERED  INTO  A

S. 17--B                            3

SPORTS  WAGERING  AGREEMENT  PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-
SEVEN-A OF THIS TITLE;
  [(e)]  (R)  "Professional  sport  or athletic event" means an event at
which two or more persons participate in sports or athletic  events  and
receive  compensation  in  excess  of  actual expenses for their partic-
ipation in such event;
  (S) "PROFESSIONAL SPORTS STADIUM OR ARENA" MEANS A VENUE THAT REGULAR-
LY HOSTS PROFESSIONAL SPORTS EVENTS, AS DEFINED IN THIS SECTION;
  [(f)] (T) "PROHIBITED SPORTS 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
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;
  (U)  "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)]  (V) "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;
  (W) "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)]   (X)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (Y) "Sports pool" means the business of accepting wagers on any sports
event by any system or method of wagering; [and

S. 17--B                            4

  (i)]  (Z) "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;
  (AA)  "SPORTS  WAGERING"  MEANS  WAGERING  ON  SPORTING  EVENTS OR ANY
PORTION THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES
PARTICIPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY
ANY SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PER-
SON COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
ANY WAGER THROUGH ELECTRONIC COMMUNICATION SHALL BE DEEMED TO TAKE PLACE
AT THE PHYSICAL LOCATION OF THE SERVER OR OTHER  EQUIPMENT  USED  BY  AN
OPERATOR  TO ACCEPT MOBILE SPORTS WAGERING, REGARDLESS OF THE AUTHORIZED
SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THE STATE AT THE TIME THE WAGER
IS INITIATED.   THE TERM "SPORTS WAGERING" SHALL  INCLUDE,  BUT  IS  NOT
LIMITED  TO,  SINGLE-GAME  BETS,  TEASER BETS, PARLAYS, OVER-UNDER BETS,
MONEY LINE, POOLS, EXCHANGE WAGERING, IN-GAME  WAGERING,  IN-PLAY  BETS,
PROPOSITION BETS AND STRAIGHT BETS;
  (BB)  "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 OPER-
ATOR. THE ISSUANCE TO OR WAGERING BY  AUTHORIZED  SPORTS  BETTORS  AT  A
CASINO  OF  ANY  PROMOTIONAL  GAMING CREDIT SHALL NOT BE TAXABLE FOR THE
PURPOSES OF DETERMINING SPORTS WAGERING GROSS REVENUE;
  (CC) "Sports wagering lounge" means an area wherein a sports  pool  is
operated;
  (DD)  "TIER  ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
  (EE) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER;
  (FF) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER  A
TIER ONE NOR A TIER TWO SPORTS WAGER; AND
  (GG)  "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.
  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  responsibility
for  the  implementation of this section and shall have all other duties
specified in this section with regard to the operation of a sports pool.
The license to operate a sports pool shall be in addition to  any  other
license  required to be issued to operate a [gaming facility] CASINO. No

S. 17--B                            5

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 SPORTS 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, OR THROUGH
MOBILE SPORTS WAGERING OFFERED  PURSUANT  TO  SECTION  THIRTEEN  HUNDRED
SIXTY-SEVEN-A  OF THIS TITLE. 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 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.
  (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, 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)] (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

S. 17--B                            6

the commission. All other employees who are working in the sports wager-
ing  lounge may be required to be registered, if appropriate, in accord-
ance 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.] 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 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] AUTHORIZED SPORTS BETTORS;
  (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
  (J) THE USE OF GLOBAL RISK MANAGEMENT;
  (K) type of system for wagering; and
  [(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  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] AUTHORIZED SPORTS BETTORS.
  6. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED  SPORTS
BETTORS;
  (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
  (III)  THE  TOTAL  AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY
THE CASINO;
  (IV) THE TOTAL AMOUNT CONTRIBUTED IN SPORTS  BETTING  ROYALTY  REVENUE
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V)  THE  TOTAL  AMOUNT  OF  WAGERS  RECEIVED ON EACH SPORTS GOVERNING
BODY'S SPORTING EVENTS;
  (VI) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED SPORTS BETTORS;

S. 17--B                            7

  (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 SPORTS BETTORS THAT REQUESTED TO
EXCLUDE THEMSELVES FROM SPORTS 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 SPORTS WAGERING SHALL  REMIT  TO  THE  COMMISSION  A  SPORTS
WAGERING  ROYALTY  FEE  OF  ONE-FIFTH (.20) OF ONE PERCENT OF THE AMOUNT
WAGERED ON  SPORTS  EVENTS  CONDUCTED  BY  REGISTERED  SPORTS  GOVERNING
BODIES.    THE  FEE  SHALL  BE  REMITTED ON A FORM AS THE COMMISSION MAY
REQUIRE, ON WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE  OF  WAGERING
DURING  THE  REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  REGISTERED SPORT
GOVERNING BODY'S SPORTS EVENTS.
  (B) NO LATER THAN THE THIRTIETH OF APRIL OF EACH  YEAR,  A  REGISTERED
SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE ROYALTY
FEE  FUNDS  REMITTED  BY  CASINOS IN THE PREVIOUS CALENDAR YEAR ON THEIR
RESPECTIVE SPORTS EVENTS.  WITHIN THIRTY DAYS OF  SUBMITTING  ITS  CLAIM
FOR  DISBURSEMENT,  THE REGISTERED SPORTS GOVERNING BODY SHALL MEET WITH
THE COMMISSION TO PROVIDE THE  COMMISSION  WITH  EVIDENCE  OF  POLICIES,
PROCEDURES  AND  TRAINING  PROGRAMS  IT  HAS  IMPLEMENTED TO PROTECT THE
INTEGRITY OF ITS SPORTS EVENTS.
  (C) WITHIN THIRTY DAYS OF  ITS  MEETING  WITH  THE  REGISTERED  SPORTS
GOVERNING  BODY,  THE  COMMISSION  SHALL  APPROVE  A  TIMELY  CLAIM  FOR
DISBURSEMENT.
  (D) BEFORE ANY REGISTERED SPORTS GOVERNING BODY MAY RECEIVE  ANY  SUCH
DISBURSEMENT  OF THE ROYALTY FEE FUNDS, SUCH SPORTS GOVERNING BODY SHALL
HAVE IN PLACE PROCEDURES OR PROCESSES THAT  ADDRESS  THE  PROTECTION  OF
ATHLETES,  PLAYERS,  UMPIRES,  REFEREES, CLUB OFFICIALS AND PERSONNEL OR
OFFICIALS OF SUCH SPORTS LEAGUE AND MEMBERS OF THEIR FAMILIES AND  ASSO-
CIATES  FROM PHYSICAL ATTACKS, VERBAL THREATS, OR OTHER FORMS OF HARASS-
MENT OCCURRING IN THE WORKPLACE OR ELSEWHERE.
  8. 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, EXCLUDING SPORTS WAGERING GROSS REVENUE
ATTRIBUTED TO MOBILE SPORTS WAGERING OFFERED PURSUANT TO  SECTION  THIR-
TEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE. CASINOS SHALL PAY A TAX EQUIV-
ALENT  OF  TWELVE  PERCENT OF THEIR SPORTS WAGERING GROSS REVENUE ATTRI-
BUTED TO MOBILE SPORTS WAGERING OFFERED  PURSUANT  TO  SECTION  THIRTEEN
HUNDRED SIXTY-SEVEN-A OF THIS TITLE.
  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  SPORTS  WAGERING.  THE

S. 17--B                            8

COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION  AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF SUBDIVISION
FOUR  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION 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 SPORTS
WAGERING UNLESS IT SEPARATELY QUALIFIES FOR, AND OBTAINS,  AUTHORIZATION
PURSUANT TO THIS SECTION.
  12.  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

S. 17--B                            9

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.
  13.  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.
  14. (A) THE COMMISSION SHALL  DESIGNATE  THE  DIVISION  OF  THE  STATE
POLICE  TO  HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR ASSISTING THE
COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
MATCH FIXING, AND OTHER CONDUCT THAT CORRUPTS A  BETTING  OUTCOME  OF  A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
  (B)  CASINOS  SHALL  MAINTAIN RECORDS OF SPORTS WAGERING OPERATIONS IN
ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.  THESE  REGU-
LATIONS  SHALL,  AT  A  MINIMUM, REQUIRE A CASINO TO ADOPT PROCEDURES TO
OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL WHO PLAC-
ES ANY SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER.
  (C) THE COMMISSION SHALL COOPERATE WITH A SPORTS  GOVERNING  BODY  AND
CASINOS  TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF INFOR-
MATION.
  (D) THE COMMISSION AND CASINOS  SHALL  COOPERATE  WITH  INVESTIGATIONS
CONDUCTED  BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT AGENCIES,
INCLUDING BUT NOT LIMITED TO PROVIDING OR FACILITATING THE PROVISION  OF
ACCOUNT-LEVEL  BETTING  INFORMATION AND AUDIO OR VIDEO FILES RELATING TO
PERSONS PLACING WAGERS; PROVIDED, HOWEVER, THAT THE CASINO  BE  REQUIRED
TO SHARE ANY PERSONALLY IDENTIFIABLE INFORMATION OF AN AUTHORIZED SPORTS
BETTOR  WITH  A SPORTS GOVERNING BODY ONLY PURSUANT TO AN ORDER TO DO SO
BY THE COMMISSION OR A LAW ENFORCEMENT  AGENCY  OR  COURT  OF  COMPETENT
JURISDICTION.
  (E)  CASINOS  SHALL  PROMPTLY REPORT TO THE COMMISSION ANY INFORMATION
RELATING TO:
  (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE  CASINO
IN CONNECTION WITH ITS OPERATIONS;
  (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
  (III)  ANY  POTENTIAL  BREACH  OF THE RELEVANT SPORTS GOVERNING BODY'S
INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO  SPORTS  WAGERING,  AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
  (IV)  ANY  OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING
EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH  FIXING;
AND
  (V)  SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS
DERIVED FROM ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR  LAUNDER  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  USING  AGENTS  TO PLACE WAGERS, USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.

S. 17--B                           10

  THE COMMISSION SHALL ALSO  PROMPTLY  REPORT  INFORMATION  RELATING  TO
CONDUCT  DESCRIBED  IN  SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (F) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY  A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  (G) THE COMMISSION, BY REGULATION, MAY AUTHORIZE  AND  PROMULGATE  ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES  THEREOF  TO  ENABLE  THE  SHARING OF INFORMATION TO FACILITATE
INTEGRITY MONITORING AND THE CONDUCT  OF  INVESTIGATIONS  INTO  ABNORMAL
BETTING  ACTIVITY,  MATCH  FIXING,  AND  OTHER  CONDUCT  THAT CORRUPTS A
BETTING OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF  FINANCIAL
GAIN.
  (H)  THE  COMMISSION  SHALL STUDY THE POTENTIAL FOR THE CREATION OF AN
INTERSTATE DATABASE OF ALL SPORTS WAGERING INFORMATION FOR  THE  PURPOSE
OF  INTEGRITY  MONITORING, AND SHALL CREATE A FINAL REPORT REGARDING ALL
FINDINGS AND RECOMMENDATIONS TO BE  DELIVERED  UPON  COMPLETION  OF  ALL
OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO
THOUSAND  TWENTY,  TO  THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE
TEMPORARY PRESIDENT OF THE SENATE.
  15. (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 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 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

S. 17--B                           11

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.
  16.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  17. SPORTS WAGERING CONDUCTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS
SECTION IS HEREBY AUTHORIZED.
  18.  THE COMMISSION SHALL PROMULGATE RULES THAT REQUIRE AN OPERATOR TO
IMPLEMENT RESPONSIBLE GAMING PROGRAMS THAT INCLUDE COMPREHENSIVE EMPLOY-
EE TRAININGS ON RESPONDING TO CIRCUMSTANCES IN WHICH INDIVIDUALS PRESENT
SIGNS OF A GAMBLING ADDICTION AND REQUIREMENTS FOR CASINOS AND OPERATORS
UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS  TITLE  TO  ASSESS,
PREVENT,  AND  ADDRESS  PROBLEM GAMING BY USERS UNDER THE AGE OF THIRTY.
THE COMMISSION SHALL ESTABLISH A HOTLINE OR  OTHER  METHOD  OF  COMMUNI-
CATION  THAT  WILL ALLOW ANY PERSON TO CONFIDENTIALLY REPORT INFORMATION
ABOUT PROHIBITED CONDUCT TO THE COMMISSION. THE COMMISSION SHALL PROMUL-
GATE RULES GOVERNING THE INVESTIGATION AND RESOLUTION OF A CHARGE OF ANY
PERSON PURPORTED TO HAVE ENGAGED IN PROHIBITED CONDUCT.
  19. THE CONDUCT OF SPORTS WAGERING IN VIOLATION  OF  THIS  SECTION  IS
PROHIBITED.
  20. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI-
CLE  TWO  HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON, FIRM, CORPO-
RATION, ASSOCIATION, AGENT, OR EMPLOYEE, WHO IS NOT AUTHORIZED TO  OFFER
SPORTS  WAGERING  UNDER  THIS SECTION OR SECTION THIRTEEN HUNDRED SIXTY-
SEVEN-A OF THIS TITLE, AND WHO KNOWINGLY OFFERS  OR  ATTEMPTS  TO  OFFER
SPORTS  WAGERING  OR  MOBILE SPORTS WAGERING IN NEW YORK SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED  THOUSAND  DOLLARS  FOR
EACH  VIOLATION, NOT TO EXCEED FIVE MILLION DOLLARS FOR VIOLATIONS ARIS-
ING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY VIOLATES ANY PROCEDURE  IMPLEMENTED  UNDER  THIS  SECTION,  OR
SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN  FIVE  THOUSAND  DOLLARS  FOR  EACH
VIOLATION,  NOT  TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING
OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH  SHALL  ACCRUE  TO  THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  §  2.  The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 1367-a to read as follows:
  § 1367-A. MOBILE SPORTS WAGERING. 1. (A) EXCEPT AS  PROVIDED  IN  THIS
SUBDIVISION,  THE  TERMS IN THIS SECTION SHALL HAVE THE SAME MEANINGS AS
SUCH TERMS ARE DEFINED IN SUBDIVISION ONE OF  SECTION  THIRTEEN  HUNDRED
SIXTY-SEVEN OF THIS TITLE.
  (B)  "OPERATOR" FOR PURPOSES OF THIS SECTION, MEANS A CASINO WHICH HAS
ELECTED TO OFFER A MOBILE SPORTS WAGERING PLATFORM, AN INDIAN TRIBE  (OR
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 AND HAS
ENTERED INTO A SPORTS WAGERING AGREEMENT TO OPERATE WITH THE  COMMISSION
PURSUANT  TO THIS SECTION, OR THE AGENT OF SUCH LICENSED GAMING FACILITY
OR SUCH INDIAN TRIBE.
  2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW  YORK  STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY USE ONE MOBILE SPORTS WAGERING PLATFORM AND BRAND PROVIDED THAT SUCH
PLATFORM  AND  BRAND HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A

S. 17--B                           12

CASINO MAY CONTRACT WITH AN INDEPENDENT OPERATOR TO PROVIDE  ITS  MOBILE
SPORTS WAGERING PLATFORM.
  (B)  REGISTRATIONS ISSUED BY THE COMMISSION SHALL REMAIN IN EFFECT FOR
FIVE YEARS. THE COMMISSION SHALL ESTABLISH A PROCESS FOR RENEWAL.
  (C) THE COMMISSION SHALL PUBLISH A LIST OF ALL OPERATORS  AND  CASINOS
REGISTERED TO OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO
THIS SECTION ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  3.  IN  THE  EVENT THAT A CASINO CONTRACTS WITH AN OPERATOR TO PROVIDE
ITS MOBILE SPORTS WAGERING  PLATFORM  AND  BRAND,  SUCH  OPERATOR  SHALL
OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE PRIOR TO THE EXECUTION OF
ANY  SUCH  CONTRACT,  AND  SUCH  LICENSE SHALL BE ISSUED PURSUANT TO THE
PROVISIONS OF SECTION THIRTEEN HUNDRED TWENTY-SEVEN OF THIS ARTICLE  AND
IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE COMMISSION.
  3-A.  (A)  AS  A CONDITION OF REGISTRATION AS AN OPERATOR, EACH CASINO
SHALL AGREE, UPON REQUEST OF AN INDIAN TRIBE THAT HAS NOT  ENTERED  INTO
AN  AGREEMENT FOR MOBILE SPORTS WAGERING WITH ANOTHER CASINO, TO PROVIDE
A SITE FOR A MOBILE SPORTS WAGERING SERVER AND RELATED EQUIPMENT FOR THE
INDIAN TRIBE AS DIRECTED BY THE COMMISSION, AT NO  COST  TO  THE  INDIAN
TRIBE  EXCEPT  THE DIRECT AND ACTUAL COST OF HOSTING THE SERVER OR OTHER
EQUIPMENT USED BY THE INDIAN TRIBE AS DETERMINED BY THE COMMISSION.
  (B) AS A CONDITION OF REGISTRATION AS AN OPERATOR IN NEW  YORK  STATE,
AN  INDIAN  TRIBE SHALL ENTER INTO AN AGREEMENT WITH THE COMMISSION WITH
RESPECT TO MOBILE SPORTS WAGERING:
  (I) TO FOLLOW THE REQUIREMENTS IMPOSED ON CASINOS AND OPERATORS  UNDER
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE WITH
RESPECT  TO  THE INDIAN TRIBE'S MOBILE SPORTS WAGERING; TO ADHERE TO THE
REGULATIONS PROMULGATED BY THE COMMISSION PURSUANT TO THIS SECTION  WITH
RESPECT  TO  MOBILE  SPORTS  WAGERING, AND TO SUBMIT TO THE COMMISSION'S
ENFORCEMENT OF THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN  OF
THIS TITLE AND REGULATIONS PROMULGATED THEREUNDER WITH RESPECT TO MOBILE
SPORTS  WAGERING, INCLUDING BY WAIVING TRIBAL SOVEREIGN IMMUNITY FOR THE
SOLE AND LIMITED PURPOSE OF SUCH ENFORCEMENT. NOTHING  HEREIN  SHALL  BE
CONSTRUED  AS  REQUIRING  AN  INDIAN  TRIBE'S AGREEMENT TO ADHERE TO THE
REQUIREMENTS OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS  TITLE  FOR
GAMING  CONDUCTED  ON  TRIBAL  LANDS  AS  A CONDITION OF OFFERING MOBILE
SPORTS WAGERING UNDER THIS SECTION;
  (II) TO WAIVE THE INDIAN TRIBE'S EXCLUSIVE GEOGRAPHIC RIGHT  TO  OFFER
AND CONDUCT MOBILE SPORTS WAGERING, BUT NOT OTHERWISE;
  (III)  TO  REMIT  PAYMENT TO THE STATE EQUAL TO TAX ON SPORTS WAGERING
REVENUE IMPOSED UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE
WITH RESPECT TO MOBILE SPORTS WAGERING;
  (IV) NOT TO OFFER OR TO CONDUCT MOBILE GAMING OTHER THAN MOBILE SPORTS
WAGERING PURSUANT TO THIS SECTION UNLESS SUCH MOBILE GAMING IS OTHERWISE
AUTHORIZED BY STATE OR FEDERAL LAW; AND
  (V) TO LOCATE THE SERVER OR OTHER EQUIPMENT USED BY THE  INDIAN  TRIBE
OR  ITS AGENT TO ACCEPT MOBILE SPORTS WAGERING AT A CASINO AS DEFINED IN
PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN
OF THIS TITLE THAT HAS APPLIED FOR AND IS ELIGIBLE  TO  REGISTER  AS  AN
OPERATOR  OF  MOBILE SPORTS WAGERING PURSUANT TO THIS SECTION AND TO PAY
THE ACTUAL COST OF HOSTING THE SERVER OR OTHER EQUIPMENT  AS  DETERMINED
BY THE COMMISSION.
  (C) ALL AGREEMENTS ENTERED INTO CASINOS AND INDIAN TRIBES WITH RESPECT
TO HOSTING MOBILE SPORTS WAGERING PLATFORMS FOR AN INDIAN TRIBE:
  (I)  MUST  BE  APPROVED  BY  THE COMMISSION PRIOR TO TAKING EFFECT AND
BEFORE REGISTRATION OF THE CASINO OR INDIAN TRIBE AS AN  OPERATOR  UNDER
THIS SECTION;

S. 17--B                           13

  (II)  MUST  PROVIDE THAT THE INDIAN TRIBE MAY, AT ITS SOLE DISCRETION,
TERMINATE THE AGREEMENT AND ALL COMMITMENTS,  UNDERTAKINGS  AND  WAIVERS
MADE  BY  THE  INDIAN  TRIBE  THEREUNDER, EXCEPT THAT THE INDIAN TRIBE'S
WAIVER OF ITS EXCLUSIVE GEOGRAPHIC RIGHT TO  OFFER  AND  CONDUCT  MOBILE
SPORTS WAGERING SHALL SURVIVE THE TERMINATION OF THE AGREEMENT;
  (III)  SHALL  BE LIMITED IN APPLICABILITY SOLELY TO THE INDIAN TRIBE'S
OPERATION OF MOBILE SPORTS BETTING AND SHALL NOT  EXTEND  TO  ANY  OTHER
OPERATION OR ACTIVITY OF THE INDIAN TRIBE; AND
  (IV)  SHALL NOT CREATE ANY RIGHTS OR PRIVILEGES TO ANY THIRD PARTY WHO
IS NOT A PARTY TO THE AGREEMENT, EXCEPT THAT THE COMMISSION  SHALL  HAVE
THE  POWER  TO ENFORCE THE AGREEMENT INCLUDING BY REVOKING OR SUSPENDING
THE REGISTRATION OF A PARTY THAT FAILS TO COMPLY  WITH  ITS  OBLIGATIONS
UNDER THE AGREEMENT.
  (D)  NO  MOBILE  SPORTS  WAGERING  MAY  BE  CONDUCTED WITHIN AN INDIAN
TRIBE'S EXCLUSIVE GEOGRAPHIC AREA UNLESS THE INDIAN TRIBE WITH EXCLUSIVE
GEOGRAPHIC RIGHT TO THAT AREA IS REGISTERED AS AN  OPERATOR  UNDER  THIS
SECTION.  OPERATORS SHALL USE GEO-LOCATION AND GEO-FENCING TECHNOLOGY TO
ENSURE THAT MOBILE SPORTS WAGERING IS NOT AVAILABLE TO PERSONS  WHO  ARE
PHYSICALLY  LOCATED  IN  AN  INDIAN  TRIBE'S  EXCLUSIVE GEOGRAPHIC AREA,
UNLESS THE INDIAN TRIBE WITH EXCLUSIVE GEOGRAPHIC RIGHT TO THAT AREA  IS
REGISTERED AS AN OPERATOR UNDER THIS SECTION.
  3-B.(A)  THE  COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT THE
PROVISIONS OF THIS SECTION, INCLUDING:
  (I) THE DEVELOPMENT OF THE INITIAL FORM OF THE APPLICATION FOR  REGIS-
TRATION;
  (II) RESPONSIBLE PROTECTIONS WITH REGARD TO COMPULSIVE PLAY SAFEGUARDS
FOR FAIR PLAY;
  (III)  REQUIRING  THAT OPERATORS ADOPT CONTROLS TO PREVENT MINORS FROM
CREATING ACCOUNTS AND PLACING WAGERS;
  (IV) REQUIRING THAT OPERATORS ADOPT CONTROLS TO MAINTAIN THE EFFICIEN-
CY OF SELF-EXCLUSION LIMITS; AND
  (V) REQUIRING THAT OPERATORS UTILIZE COMMERCIALLY  REASONABLE  TECHNO-
LOGICAL MEANS OF VERIFYING ACCOUNT HOLDERS' IDENTITIES.
  (B) THE COMMISSION SHALL PRESCRIBE THE INITIAL FORM OF THE APPLICATION
FOR REGISTRATION, FOR OPERATORS, WHICH SHALL REQUIRE, BUT NOT BE LIMITED
TO:
  (I) THE FULL NAME AND PRINCIPAL ADDRESS OF THE OPERATOR;
  (II) IF A CORPORATION, THE NAME OF THE STATE IN WHICH INCORPORATED AND
THE  FULL  NAMES AND ADDRESSES OF ANY PARTNER, OFFICER, DIRECTOR, SHARE-
HOLDER HOLDING TEN  PERCENT  OR  MORE  EQUITY,  AND  ULTIMATE  EQUITABLE
OWNERS;
  (III)  IF  A  BUSINESS ENTITY OTHER THAN A CORPORATION, THE FULL NAMES
AND ADDRESSES OF THE PRINCIPALS,  PARTNERS,  SHAREHOLDERS  HOLDING  FIVE
PERCENT OR MORE EQUITY, AND ULTIMATE EQUITABLE OWNERS;
  (IV)  WHETHER SUCH CORPORATION OR ENTITY FILES INFORMATION AND REPORTS
WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY
SECTION THIRTEEN OF THE SECURITIES EXCHANGE ACT OF 1934,  15  U.S.C.  §§
78A-78KK;  OR  WHETHER  THE  SECURITIES OF THE CORPORATION OR ENTITY ARE
REGULARLY TRADED ON AN  ESTABLISHED  SECURITIES  MARKET  IN  THE  UNITED
STATES;
  (V)  THE TYPE AND ESTIMATED NUMBER OF CONTESTS TO BE CONDUCTED ANNUAL-
LY; AND
  (VI) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE OPERATOR.
  (C) THE COMMISSION MAY REQUIRE THE FULL NAMES  AND  ADDRESSES  OF  THE
OFFICERS  AND  DIRECTORS  OF  ANY CREDITOR OF THE OPERATOR, AND OF THOSE

S. 17--B                           14

STOCKHOLDERS WHO HOLD MORE THAN TEN PERCENT OF THE STOCK OF  THE  CREDI-
TOR.
  (D)  UPON RECEIPT OF AN APPLICATION FOR REGISTRATION FOR EACH INDIVID-
UAL LISTED ON SUCH APPLICATION AS AN OFFICER OR DIRECTOR, THE COMMISSION
SHALL SUBMIT TO THE DIVISION OF CRIMINAL JUSTICE SERVICES A SET OF FING-
ERPRINTS, AND THE DIVISION OF CRIMINAL JUSTICE SERVICES  PROCESSING  FEE
IMPOSED  PURSUANT  TO SUBDIVISION EIGHT-A OF SECTION EIGHT HUNDRED THIR-
TY-SEVEN OF THE EXECUTIVE LAW AND ANY FEE IMPOSED BY THE FEDERAL  BUREAU
OF  INVESTIGATION.  UPON  RECEIPT  OF  THE FINGERPRINTS, THE DIVISION OF
CRIMINAL JUSTICE SERVICES SHALL PROMPTLY FORWARD A SET OF  THE  INDIVID-
UAL'S  FINGERPRINTS  TO  THE  FEDERAL  BUREAU  OF  INVESTIGATION FOR THE
PURPOSE OF A NATIONWIDE  CRIMINAL  HISTORY  RECORD  CHECK  TO  DETERMINE
WHETHER  SUCH INDIVIDUAL HAS BEEN CONVICTED OF A CRIMINAL OFFENSE IN ANY
STATE OTHER THAN NEW YORK OR IN A FEDERAL JURISDICTION. THE DIVISION  OF
CRIMINAL  JUSTICE SERVICES SHALL PROMPTLY PROVIDE THE REQUESTED CRIMINAL
HISTORY INFORMATION TO THE COMMISSION. FOR THE PURPOSES OF THIS SECTION,
THE TERM "CRIMINAL HISTORY INFORMATION"  SHALL  MEAN  A  RECORD  OF  ALL
CONVICTIONS  OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN
INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE  FEDERAL
BUREAU  OF  INVESTIGATION. ALL SUCH CRIMINAL HISTORY INFORMATION SENT TO
THE COMMISSION PURSUANT TO THIS SUBDIVISION SHALL  BE  CONFIDENTIAL  AND
SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE
COMMISSION, UNLESS OTHERWISE AUTHORIZED BY LAW.
  (E) UPON RECEIPT OF CRIMINAL HISTORY INFORMATION PURSUANT TO PARAGRAPH
(D)  OF  THIS  SUBDIVISION, THE COMMISSION SHALL MAKE A DETERMINATION TO
APPROVE OR DENY AN APPLICATION FOR REGISTRATION; PROVIDED, HOWEVER, THAT
BEFORE MAKING A DETERMINATION ON SUCH APPLICATION, THE COMMISSION  SHALL
PROVIDE  THE  SUBJECT OF THE RECORD WITH A COPY OF SUCH CRIMINAL HISTORY
INFORMATION AND A COPY OF ARTICLE TWENTY-THREE-A OF THE  CORRECTION  LAW
AND  INFORM SUCH PROSPECTIVE APPLICANT SEEKING TO BE CREDENTIALED OF HIS
OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT  INFORMATION  CONTAINED
IN  SUCH  CRIMINAL  HISTORY  INFORMATION PURSUANT TO THE REGULATIONS AND
PROCEDURES ESTABLISHED BY THE DIVISION  OF  CRIMINAL  JUSTICE  SERVICES.
THE  COMMISSION SHALL DENY ANY APPLICATION FOR REGISTRATION, OR SUSPEND,
REFUSE TO RENEW, OR REVOKE ANY EXISTING REGISTRATION ISSUED PURSUANT  TO
THIS  ARTICLE,  UPON THE FINDING THAT THE OPERATOR OR REGISTRANT, OR ANY
PARTNER, OFFICER, DIRECTOR, OR SHAREHOLDER:
  (I) HAS KNOWINGLY MADE A FALSE  STATEMENT  OF  MATERIAL  FACT  OR  HAS
DELIBERATELY  FAILED TO DISCLOSE ANY INFORMATION REQUIRED BY THE COMMIS-
SION;
  (II) HAS HAD A GAMING REGISTRATION OR LICENSE  DENIED,  SUSPENDED,  OR
REVOKED IN ANY OTHER STATE OR COUNTRY FOR JUST CAUSE;
  (III)  HAS  LEGALLY DEFAULTED IN THE PAYMENT OF ANY OBLIGATION OR DEBT
DUE TO ANY STATE OR POLITICAL SUBDIVISION; OR
  (IV) HAS AT ANY TIME KNOWINGLY FAILED TO COMPLY WITH  ANY  REQUIREMENT
OUTLINED IN THIS SECTION, ANY OTHER PROVISION OF THIS ARTICLE, ANY REGU-
LATIONS  PROMULGATED BY THE COMMISSION OR ANY ADDITIONAL REQUIREMENTS OF
THE COMMISSION.
  (F) ALL DETERMINATIONS TO APPROVE OR DENY AN APPLICATION  PURSUANT  TO
THIS  ARTICLE SHALL BE PERFORMED IN A MANNER CONSISTENT WITH SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE TWENTY-THREE-A OF THE CORRECTION LAW. WHEN THE COMMISSION DENIES  AN
APPLICATION,  THE  OPERATOR SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE
HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN  ACCORDANCE
WITH THE REGULATIONS OF THE COMMISSION.

S. 17--B                           15

  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED  ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR SHOULD
HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR
PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;
  (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED  WITHIN
THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
  (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
INCLUDES:
  (1)  IF  AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED
AN ACCOUNT, OR ACCESSED THE ACCOUNT  OF  ANOTHER,  SUCH  OPERATOR  SHALL
PROMPTLY,  WITHIN  NO  MORE  THAN  TWO BUSINESS DAYS, REFUND ANY DEPOSIT
RECEIVED FROM THE MINOR, WHETHER OR NOT THE  MINOR  HAS  ENGAGED  IN  OR
ATTEMPTED  TO  ENGAGE  IN  SPORTS  WAGERING; PROVIDED, HOWEVER, THAT ANY
REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
  (2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES  TO  ALLOW
PARENTS  OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER-
ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE  A  TOLL-FREE  NUMBER  TO
CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
  (3)  EACH  OPERATOR  SHALL  TAKE  APPROPRIATE STEPS TO CONFIRM THAT AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;
  (IV) WHEN REFERENCING THE CHANCES OR LIKELIHOOD OF WINNING  IN  ADVER-
TISEMENTS  OR UPON PLACEMENT OF A SPORTS WAGER, MAKE CLEAR AND CONSPICU-
OUS STATEMENTS THAT ARE NOT  INACCURATE  OR  MISLEADING  CONCERNING  THE
CHANCES OF WINNING AND THE NUMBER OF WINNERS;
  (V) ENABLE AUTHORIZED SPORTS BETTORS TO EXCLUDE THEMSELVES FROM SPORTS
WAGERING AND TAKE REASONABLE STEPS TO PREVENT SUCH BETTORS FROM ENGAGING
IN SPORTS WAGERING FROM WHICH THEY HAVE EXCLUDED THEMSELVES;
  (VI)  PERMIT  ANY  AUTHORIZED  SPORTS  BETTOR  TO PERMANENTLY CLOSE AN
ACCOUNT REGISTERED TO SUCH BETTOR, ON ANY AND ALL PLATFORMS SUPPORTED BY
SUCH OPERATOR, AT ANY TIME AND FOR ANY REASON;
  (VII) OFFER INTRODUCTORY PROCEDURES  FOR  AUTHORIZED  SPORTS  BETTORS,
THAT  SHALL  BE  PROMINENTLY DISPLAYED ON THE MAIN PAGE OF SUCH OPERATOR
PLATFORM, THAT EXPLAIN SPORTS WAGERING;
  (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;
  (XII)  ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS
EVENT;
  (XIII) PERMIT  ACCOUNT  HOLDERS  TO  ESTABLISH  SELF-EXCLUSION  GAMING
LIMITS  ON  A  DAILY,  WEEKLY, AND MONTHLY BASIS THAT ENABLE THE ACCOUNT
HOLDER TO IDENTIFY THE MAXIMUM AMOUNT OF MONEY  AN  ACCOUNT  HOLDER  MAY
DEPOSIT DURING SUCH PERIOD OF TIME;
  (XIV)  WHEN  AN ACCOUNT HOLDER'S LIFETIME DEPOSITS EXCEED TWO THOUSAND
FIVE HUNDRED DOLLARS, THE OPERATOR SHALL PREVENT ANY WAGERING UNTIL  THE

S. 17--B                           16

PATRON  IMMEDIATELY ACKNOWLEDGES, AND ACKNOWLEDGES EACH YEAR THEREAFTER,
THAT THE ACCOUNT HOLDER HAS MET THE DEPOSIT THRESHOLD AND MAY  ELECT  TO
ESTABLISH  RESPONSIBLE  GAMING  LIMITS  OR  CLOSE  THE  ACCOUNT, AND THE
ACCOUNT  HOLDER  HAS  RECEIVED  DISCLOSURES FROM THE OPERATOR CONCERNING
PROBLEM GAMBLING RESOURCES;
  (XV) MAINTAIN A PUBLICLY ACCESSIBLE INTERNET PAGE DEDICATED TO RESPON-
SIBLE PLAY, A LINK TO WHICH MUST APPEAR ON THE OPERATOR'S WEBSITE AND IN
ANY MOBILE APPLICATION OR ELECTRONIC PLATFORM  ON  WHICH  A  BETTOR  MAY
PLACE  WAGERS.  THE  RESPONSIBLE PLAY PAGE SHALL INCLUDE: A STATEMENT OF
THE OPERATOR'S POLICY AND COMMITMENT TO RESPONSIBLE GAMING;  INFORMATION
REGARDING,  OR LINKS TO INFORMATION REGARDING, THE RISKS ASSOCIATED WITH
GAMBLING AND THE POTENTIAL SIGNS OF PROBLEM GAMING; THE AVAILABILITY  OF
SELF-IMPOSED  RESPONSIBLE  GAINING  LIMITS; A   LINK TO A PROBLEM GAMING
WEBPAGE MAINTAINED BY  THE  OFFICE  OF  ALCOHOL  AND    SUBSTANCE  ABUSE
SERVICES; AND SUCH OTHER INFORMATION OR STATEMENTS AS THE COMMISSION MAY
REQUIRE BY RULE; AND
  (XVI)  SUBMIT  ANNUALLY  A  PROBLEM GAMING PLAN TO THE COMMISSION THAT
INCLUDES: THE OBJECTIVES OF AND TIMETABLES FOR  IMPLEMENTING  THE  PLAN;
IDENTIFICATION OF THE PERSONS RESPONSIBLE FOR IMPLEMENTING AND MAINTAIN-
ING  THE  PLAN; PROCEDURES FOR IDENTIFYING USERS WITH SUSPECTED OR KNOWN
PROBLEM GAMING BEHAVIOR; PROCEDURES FOR PROVIDING INFORMATION  TO  USERS
CONCERNING  PROBLEM  GAMING  IDENTIFICATION AND RESOURCES; PROCEDURES TO
PREVENT GAMING BY MINORS AND SELF-EXCLUDED PERSONS; AND SUCH OTHER PROB-
LEM GAMING INFORMATION AS THE COMMISSION MAY REQUIRE BY RULE.
  (B) OPERATORS SHALL NOT DIRECTLY OR INDIRECTLY  OPERATE,  PROMOTE,  OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E)  ADVERTISEMENTS  FOR  CONTESTS  AND  PRIZES OFFERED BY AN OPERATOR
SHALL NOT TARGET PROHIBITED SPORTS  BETTORS,  MINORS,  OR  SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING  PROGRAMS FOR ANY EXCHANGE WAGERING CONTEST AND ENSURE THAT MEASURES
ARE IN PLACE TO DETER, DETECT AND, TO THE  EXTENT  REASONABLY  POSSIBLE,
PREVENT  CHEATING, INCLUDING COLLUSION, AND THE USE OF CHEATING DEVICES,
INCLUDING USE OF SOFTWARE PROGRAMS THAT SUBMIT EXCHANGE WAGERING  SPORTS
WAGERS UNLESS OTHERWISE APPROVED BY THE COMMISSION.
  (G)  OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON THE
MAIN PAGE OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A  COMPLAINT  BY
AN  AUTHORIZED  SPORTS BETTOR AGAINST SUCH OPERATOR. AN INITIAL RESPONSE
SHALL BE GIVEN BY SUCH OPERATOR TO  SUCH  BETTOR  FILING  THE  COMPLAINT
WITHIN  FORTY-EIGHT  HOURS.  A  COMPLETE RESPONSE SHALL BE GIVEN BY SUCH
OPERATOR TO SUCH BETTOR FILING THE COMPLAINT WITHIN TEN  BUSINESS  DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
  (H)  OPERATORS  SHALL  MAINTAIN  RECORDS  OF ALL ACCOUNTS BELONGING TO
AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.
  (I) THE SERVER OR OTHER EQUIPMENT WHICH IS  USED  BY  AN  OPERATOR  TO
ACCEPT  MOBILE  SPORTS  WAGERING SHALL BE LOCATED IN THE LICENSED GAMING
FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.
  (J) ALL MOBILE SPORTS WAGERING INITIATED IN THIS STATE SHALL BE DEEMED
TO TAKE PLACE AT THE LICENSED GAMING FACILITY WHERE THE SERVER OR  OTHER

S. 17--B                           17

EQUIPMENT  USED  BY  AN  OPERATOR  TO  ACCEPT  MOBILE SPORTS WAGERING IS
LOCATED, REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL  LOCATION
WITHIN THIS STATE.
  (K)  ALL  MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN COMPLIANCE WITH
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
  (L) PERMIT AN INDIAN TRIBE PURSUANT TO PARAGRAPH  (A)  OF  SUBDIVISION
THREE-A  OF  THIS  SECTION  TO PLACE AT THE LICENSED GAMING FACILITY THE
SERVER OR OTHER EQUIPMENT BY WHICH THE INDIAN TRIBE  MAY  ACCEPT  MOBILE
SPORTS  WAGERING,  AND TO MAKE COMMERCIALLY REASONABLE ACCOMMODATIONS AS
MAY BE NECESSARY TO PLACE AND OPERATE THE INDIAN TRIBE'S SERVER OR OTHER
EQUIPMENT.
  5. (A) SUBJECT TO REGULATIONS PROMULGATED BY THE  COMMISSION,  CASINOS
MAY  ENTER  INTO  AGREEMENTS  WITH  OPERATORS OR AFFILIATES TO ALLOW FOR
AUTHORIZED BETTORS TO SIGN UP TO CREATE  AND  FUND  ACCOUNTS  ON  MOBILE
SPORTS WAGERING PLATFORMS OFFERED BY THE CASINO.
  (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE  SPORTS WAGERING PLATFORM IN PERSON AT A CASINO, OR AN AFFILIATE,
OR THROUGH AN OPERATORS INTERNET WEBSITE 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, ELECTRONICALLY RECOGNIZED  PAYMENT  METHODS,  OR  VIA  ANY
OTHER MEANS APPROVED BY THE COMMISSION.
  (D)  IN  ACCORDANCE  WITH  REGULATIONS  PROMULGATED BY THE COMMISSION,
CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE
MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED  AND  MAINTAINED
BY  THE  CASINO,  AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE
PREMISES OF THE AFFILIATE.  AUTHORIZED SPORTS BETTORS MAY PLACE  ACCOUNT
WAGERS, AND PLACE AND REDEEM NON-ACCOUNT CASH WAGERS, AT SUCH KIOSKS.
  (E)  ALL  AGREEMENTS  ENTERED  INTO  BETWEEN CASINOS AND AFFILIATES IN
RELATION TO THE PROVISIONS OF THIS SECTION  SHALL  BE  APPROVED  BY  THE
COMMISSION PRIOR TO TAKING EFFECT AND SHALL INCLUDE A PLAN FOR THE TIME-
LY  PAYMENT  OF  LIABILITIES  DUE  TO THE AFFILIATE UNDER THE AGREEMENT;
PROVIDED, HOWEVER, THAT THE COMMISSION SHALL NOT APPROVE ANY SUCH AGREE-
MENT BETWEEN A CASINO AND A RACETRACK LICENSED PURSUANT TO THIS  CHAPTER
OR  AN OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT LICENSED PURSUANT TO
SECTION ONE THOUSAND SIX HUNDRED  SEVENTEEN-A  OF  THE  TAX  LAW,  UNTIL
TWELVE  MONTHS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH; AND PROVIDED,
FURTHER, THAT THE  COMMISSION  SHALL  NOT  APPROVE  ANY  SUCH  AGREEMENT
BETWEEN A CASINO AND A PROFESSIONAL SPORTS STADIUM OR ARENA, UNTIL TWEN-
TY MONTHS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH.
  6.  THE  COMMISSION  SHALL  ANNUALLY CAUSE A REPORT TO BE PREPARED AND
DISTRIBUTED TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPACT OF  MOBILE
SPORTS  WAGERING  ON  PROBLEM  GAMBLERS  IN  NEW  YORK. THE REPORT SHALL
INCLUDE AN ASSESSMENT OF PROBLEM GAMING AMONG PERSONS UNDER THE  AGE  OF
THIRTY.  THE REPORT SHALL BE PREPARED BY A NON-GOVERNMENTAL ORGANIZATION
OR ENTITY WITH EXPERTISE IN SERVING THE NEEDS OF PERSONS  WITH  GAMBLING
ADDICTIONS.  THE  REPORT  SHALL  BE  PREPARED  AND DISTRIBUTED UNDER THE
SUPERVISION OF AND IN COORDINATION WITH THE COMMISSION. THE COSTS  ASSO-
CIATED  WITH  THE  PREPARATION  AND  DISTRIBUTION OF THE REPORT SHALL BE
BORNE BY OPERATORS AND THE COMMISSION SHALL BE AUTHORIZED  TO  ASSESS  A
FEE  AGAINST  OPERATORS  FOR  THESE  PURPOSES. THE COMMISSION SHALL ALSO
REPORT PERIODICALLY TO THE GOVERNOR AND THE LEGISLATURE  ON  THE  EFFEC-
TIVENESS OF THE STATUTORY AND REGULATORY CONTROLS IN PLACE TO ENSURE THE
INTEGRITY OF MOBILE SPORTS WAGERING OPERATIONS.

S. 17--B                           18

  §  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 immediately.

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

                                  17--C

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2019
                               ___________

Introduced  by  Sens.  ADDABBO,  FUNKE,  RAMOS -- read twice and ordered
  printed, and when printed to be committed to the Committee on  Racing,
  Gaming  and  Wagering  --  committee discharged, bill amended, ordered
  reprinted as amended and recommitted to  said  committee  --  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 -- 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, AN  OPERA-
TOR  OF  VIDEO  LOTTERY  GAMING AT AQUEDUCT LICENSED PURSUANT TO SECTION
SIXTEEN HUNDRED SEVENTEEN-A OF THE  TAX  LAW,  WHICH  HAS  AN  AFFILIATE
AGREEMENT  WITH A CASINO PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-SEV-
EN-A OF THIS TITLE.  ANY PROFESSIONAL SPORTS STADIUM OR  ARENA  IN  THAT
COUNTY MAY SERVE AS AN AFFILIATE;
  (B)  "AGENT" MEANS AN ENTITY THAT IS PARTY TO A CONTRACT WITH A CASINO
AUTHORIZED TO OPERATE A SPORTS POOL AND IS APPROVED BY THE COMMISSION TO
OPERATE A SPORTS POOL ON BEHALF OF SUCH CASINO;
  (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

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

                      [ ] is old law to be omitted.
                                                           LBD05498-16-9

S. 17--C                            2

CASINO.    ALL  SPORTS WAGERS PLACED IN ACCORDANCE WITH THIS SECTION ARE
CONSIDERED PLACED OR OTHERWISE MADE WHEN RECEIVED BY THE OPERATOR AT THE
LICENSED GAMING FACILITY, REGARDLESS OF THE AUTHORIZED  SPORTS  BETTOR'S
PHYSICAL LOCATION AT THE TIME THE SPORTS WAGER IS INITIATED.  THE INTER-
MEDIATE  ROUTING  OF  ELECTRONIC  DATA  IN CONNECTION WITH MOBILE SPORTS
WAGERING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS IN WHICH A  WAGER
IS INITIATED, RECEIVED OR OTHERWISE MADE;
  (D)  "BRAND"  MEANS  THE  NAME  AND  LOGO ON THE INTERFACE OF A MOBILE
APPLICATION OR INTERNET WEBSITE ACCESSED VIA A MOBILE DEVICE OR COMPUTER
WHICH AUTHORIZED SPORTS BETTORS USE TO ACCESS A SPORTS BETTING PLATFORM;
  (E) "Casino" means a licensed gaming facility  at  which  gambling  is
conducted pursuant to the provisions of this article;
  [(b)]  (F)  "Commission"  means the commission established pursuant to
section one hundred two of this chapter;
  [(c)] (G) "Collegiate sport  or  athletic  event"  means  a  sport  or
athletic  event  offered  or sponsored by or played in connection with a
public or private institution that offers  educational  services  beyond
the secondary level;
  [(d)]  (H)  "COVERED  PERSONS"  INCLUDES:  ATHLETES; PLAYERS; UMPIRES;
REFEREES; OFFICIALS; PERSONNEL ASSOCIATED WITH  PLAYERS,  CLUBS,  TEAMS,
LEAGUES,  AND  ATHLETIC  ASSOCIATIONS;  MEDICAL PROFESSIONALS, INCLUDING
ATHLETIC TRAINERS WHO PROVIDE SERVICES TO ATHLETES AND PLAYERS; AND  THE
FAMILY  MEMBERS  AND ASSOCIATES OF THESE PERSONS WHERE REQUIRED TO SERVE
THE PURPOSES OF THIS TITLE;
  (I) "EXCHANGE WAGERING" MEANS A FORM OF WAGERING IN WHICH  AN  AUTHOR-
IZED  SPORTS  BETTOR, ON THE ONE HAND, AND ONE OR MORE AUTHORIZED SPORTS
BETTORS, A CASINO OR AN AGENT OR AN OPERATOR, ON THE  OTHER  HAND  PLACE
IDENTICALLY  OPPOSING  SPORTS WAGERS ON AN EXCHANGE OPERATED BY A CASINO
OR AN AGENT OR AN OPERATOR;
  (J) "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;
  (K)  "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;
  (L) "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;
  (M) "IN-PLAY SPORTS WAGER" MEANS A SPORTS WAGER  PLACED  ON  A  SPORTS
EVENT AFTER THE SPORTS EVENT HAS BEGUN AND BEFORE IT ENDS;
  (N)  "LAYOFF  BET" MEANS A SPORTS WAGER PLACED BY A CASINO SPORTS POOL
WITH ANOTHER CASINO SPORTS POOL;
  (O) "MINOR" MEANS ANY PERSON UNDER THE AGE OF TWENTY-ONE YEARS;
  (P) "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;
  (Q) "OFFICIAL LEAGUE DATA" MEANS STATISTICS,  RESULTS,  OUTCOMES,  AND
OTHER DATA RELATING TO A SPORTING EVENT THAT HAVE BEEN OBTAINED FROM THE

S. 17--C                            3

RELEVANT  SPORTS GOVERNING BODY OR AN ENTITY EXPRESSLY AUTHORIZED BY THE
SPORTS GOVERNING BODY TO PROVIDE SUCH INFORMATION TO CASINOS;
  (R)  "Operator"  means  a casino which has elected to operate a sports
pool (OR AGENT OF SUCH CASINO) 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  AND  HAS  ENTERED  INTO  A
SPORTS  WAGERING  AGREEMENT  PURSUANT TO SECTION THIRTEEN HUNDRED SIXTY-
SEVEN-A OF THIS TITLE;
  (S) "PERSONS WHO PRESENT SPORTING CONTESTS" INCLUDES SPORTS  GOVERNING
BODIES AND ASSOCIATIONS, THEIR MEMBERS AND AFFILIATES, AND OTHER PERSONS
WHO PRESENT SPORTING CONTESTS TO THE PUBLIC;
  [(e)]  (T)  "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;
  (U) "PROHIBITED CONDUCT" MEANS ANY STATEMENT, ACTION, AND OTHER COMMU-
NICATION INTENDED TO INFLUENCE, MANIPULATE, OR CONTROL A BETTING OUTCOME
OF A SPORTING CONTEST OR OF ANY INDIVIDUAL OCCURRENCE OR PERFORMANCE  IN
A  SPORTING CONTEST IN EXCHANGE FOR FINANCIAL GAIN OR TO AVOID FINANCIAL
OR PHYSICAL HARM. "PROHIBITED CONDUCT" INCLUDES STATEMENTS, ACTIONS, AND
COMMUNICATIONS MADE TO A COVERED PERSON BY A  THIRD  PARTY,  SUCH  AS  A
FAMILY MEMBER OR THROUGH SOCIAL MEDIA;
  (V)  "PROFESSIONAL SPORTS STADIUM OR ARENA" MEANS A STADIUM, BALLPARK,
OR ARENA THAT IS THE PERMANENT HOME OF A PROFESSIONAL SPORTS TEAM  PLAY-
ING  AT  THE  HIGHEST  PROFESSIONAL LEVEL IN ITS SPORT AND HAS A SEATING
CAPACITY FOR SUCH CONTESTS EXCEEDING FIFTEEN THOUSAND SEATS;
  [(f)] (W) "PROHIBITED SPORTS 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
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;

S. 17--C                            4

  (X) ANY INDIVIDUAL PLACING A WAGER AS AN AGENT OR PROXY FOR AN  OTHER-
WISE PROHIBITED SPORTS BETTOR; OR
  (XI) ANY MINOR;
  (X)  "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)]  (Y) "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;
  (Z) "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)]  (AA)  "SPORTS  GOVERNING  BODY"  MEANS  THE  ORGANIZATION  THAT
PRESCRIBES FINAL RULES AND ENFORCES CODES OF CONDUCT WITH RESPECT  TO  A
SPORTING EVENT AND PARTICIPANTS THEREIN;
  (BB)  "Sports  pool"  means  the  business  of accepting wagers on any
sports event by any system or method of wagering; [and
  (i)] (CC) "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;
  (DD)  "SPORTS  WAGERING"  MEANS  WAGERING  ON  SPORTING  EVENTS OR ANY
PORTION THEREOF, OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF ATHLETES
PARTICIPATING IN A SPORTING EVENT, OR COMBINATION OF SPORTING EVENTS, BY
ANY SYSTEM OR METHOD OF WAGERING, INCLUDING, BUT NOT LIMITED TO, IN-PER-
SON COMMUNICATION AND ELECTRONIC COMMUNICATION THROUGH INTERNET WEBSITES
ACCESSED VIA A MOBILE DEVICE OR COMPUTER AND MOBILE DEVICE APPLICATIONS.
ANY WAGER THROUGH ELECTRONIC COMMUNICATION SHALL BE DEEMED TO TAKE PLACE
AT THE PHYSICAL LOCATION OF THE SERVER OR OTHER  EQUIPMENT  USED  BY  AN
OPERATOR  TO ACCEPT MOBILE SPORTS WAGERING, REGARDLESS OF THE AUTHORIZED
SPORTS BETTOR'S PHYSICAL LOCATION WITHIN THE STATE AT THE TIME THE WAGER
IS INITIATED.   THE TERM "SPORTS WAGERING" SHALL  INCLUDE,  BUT  IS  NOT
LIMITED  TO,  SINGLE-GAME  BETS,  TEASER BETS, PARLAYS, OVER-UNDER BETS,
MONEY LINE, POOLS, EXCHANGE WAGERING, IN-GAME  WAGERING,  IN-PLAY  BETS,
PROPOSITION BETS AND STRAIGHT BETS;
  (EE)  "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 OPER-
ATOR. THE ISSUANCE TO OR WAGERING BY  AUTHORIZED  SPORTS  BETTORS  AT  A
CASINO  OF  ANY  PROMOTIONAL  GAMING CREDIT SHALL NOT BE TAXABLE FOR THE
PURPOSES OF DETERMINING SPORTS WAGERING GROSS REVENUE;
  (FF) "Sports wagering lounge" means an area wherein a sports  pool  is
operated;
  (GG)  "TIER  ONE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS DETERMINED
SOLELY BY THE FINAL SCORE OR FINAL OUTCOME OF THE SPORTS EVENT;
  (HH) "TIER TWO SPORTS WAGER" MEANS AN IN-PLAY SPORTS WAGER THAT IS NOT
A TIER ONE SPORTS WAGER;
  (II) "TIER THREE SPORTS WAGER" MEANS A SPORTS WAGER THAT IS NEITHER  A
TIER ONE NOR A TIER TWO SPORTS WAGER; AND

S. 17--C                            5

  (JJ)  "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.
  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  responsibility
for  the  implementation of this section and shall have all other duties
specified in this section with regard to the operation of a sports pool.
The license to operate a sports pool shall be in addition to  any  other
license  required to be issued to operate a [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 SPORTS 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,  OR  THROUGH
MOBILE  SPORTS  WAGERING  OFFERED  PURSUANT  TO SECTION THIRTEEN HUNDRED
SIXTY-SEVEN-A OF THIS TITLE. 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 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.
  (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.

S. 17--C                            6

  [(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,  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)]  (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 wager-
ing lounge may be required to be registered, if appropriate, in  accord-
ance 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.] 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 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] AUTHORIZED SPORTS BETTORS;
  (i) THE PROCESS BY WHICH A CASINO MAY PLACE A LAYOFF BET;
  (J) THE USE OF GLOBAL RISK MANAGEMENT;
  (K) type of system for wagering; and
  [(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  SPORTS

S. 17--C                            7

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] AUTHORIZED SPORTS BETTORS.
  6. (A) EACH CASINO THAT OFFERS SPORTS WAGERING SHALL ANNUALLY SUBMIT A
REPORT  TO THE COMMISSION NO LATER THAN THE TWENTY-EIGHTH OF FEBRUARY OF
EACH YEAR, WHICH SHALL INCLUDE THE FOLLOWING INFORMATION:
  (I) THE TOTAL AMOUNT OF SPORTS WAGERS RECEIVED FROM AUTHORIZED  SPORTS
BETTORS;
  (II) THE TOTAL AMOUNT OF PRIZES AWARDED TO AUTHORIZED SPORTS BETTORS;
  (III)  THE  TOTAL  AMOUNT OF SPORTS WAGERING GROSS REVENUE RECEIVED BY
THE CASINO;
  (IV) THE TOTAL AMOUNT CONTRIBUTED IN SPORTS  BETTING  ROYALTY  REVENUE
PURSUANT TO SUBDIVISION EIGHT OF THIS SECTION;
  (V)  THE  TOTAL  AMOUNT  OF  WAGERS  RECEIVED ON EACH SPORTS GOVERNING
BODY'S SPORTING EVENTS;
  (VI) THE NUMBER OF ACCOUNTS HELD BY AUTHORIZED SPORTS 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 SPORTS BETTORS THAT REQUESTED TO
EXCLUDE THEMSELVES FROM SPORTS 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  SPORTS  WAGERING  SHALL  REMIT  TO THE COMMISSION A SPORTS
WAGERING ROYALTY FEE OF ONE-FIFTH (.20) OF ONE  PERCENT  OF  THE  AMOUNT
WAGERED  ON  SPORTS  EVENTS  CONDUCTED  BY  REGISTERED  SPORTS GOVERNING
BODIES.  THE FEE SHALL BE REMITTED ON  A  FORM  AS  THE  COMMISSION  MAY
REQUIRE,  ON  WHICH THE CASINO SHALL IDENTIFY THE PERCENTAGE OF WAGERING
DURING THE  REPORTING  PERIOD  ATTRIBUTABLE  TO  EACH  REGISTERED  SPORT
GOVERNING BODY'S SPORTS EVENTS.
  (B)  NO  LATER  THAN THE THIRTIETH OF APRIL OF EACH YEAR, A REGISTERED
SPORTS GOVERNING BODY MAY SUBMIT A CLAIM FOR DISBURSEMENT OF THE ROYALTY
FEE FUNDS REMITTED BY CASINOS IN THE PREVIOUS  CALENDAR  YEAR  ON  THEIR
RESPECTIVE  SPORTS  EVENTS.   WITHIN THIRTY DAYS OF SUBMITTING ITS CLAIM
FOR DISBURSEMENT, THE REGISTERED SPORTS GOVERNING BODY SHALL  MEET  WITH
THE  COMMISSION  TO  PROVIDE  THE  COMMISSION WITH EVIDENCE OF POLICIES,
PROCEDURES AND TRAINING PROGRAMS  IT  HAS  IMPLEMENTED  TO  PROTECT  THE
INTEGRITY OF ITS SPORTS EVENTS.
  (C)  WITHIN  THIRTY  DAYS  OF  ITS  MEETING WITH THE REGISTERED SPORTS
GOVERNING  BODY,  THE  COMMISSION  SHALL  APPROVE  A  TIMELY  CLAIM  FOR
DISBURSEMENT.
  (D)  (I) PERSONS WHO PRESENT SPORTING CONTESTS SHALL HAVE AUTHORITY TO
REMOVE SPECTATORS AND OTHERS FROM ANY FACILITY FOR VIOLATION ANY  APPLI-

S. 17--C                            8

CABLE  CODES  OF  CONDUCT,  AND TO DENY PERSONS ACCESS TO ALL FACILITIES
THEY CONTROL, TO REVOKE SEASON TICKETS OR COMPARABLE  LICENSES,  AND  TO
SHARE  INFORMATION  ABOUT  SUCH PERSONS WITH OTHERS WHO PRESENT SPORTING
CONTESTS AND WITH THE APPROPRIATE JURISDICTIONS' LAW ENFORCEMENT AUTHOR-
ITIES.
  (II) PERSONS WHO PRESENT SPORTING CONTESTS SHALL PROVIDE NOTICE TO THE
GENERAL  PUBLIC  AND  THOSE  WHO ATTEND SPORTING CONTESTS OR VISIT THEIR
FACILITIES OF ANY APPLICABLE CODES OF CONDUCT AND THE  POTENTIAL  PENAL-
TIES FOR VIOLATING SUCH CODES.
  8. 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, EXCLUDING SPORTS WAGERING  GROSS  REVENUE
ATTRIBUTED  TO  MOBILE SPORTS WAGERING OFFERED PURSUANT TO SECTION THIR-
TEEN HUNDRED SIXTY-SEVEN-A OF THIS TITLE. CASINOS SHALL PAY A TAX EQUIV-
ALENT OF TWELVE PERCENT OF THEIR SPORTS WAGERING  GROSS  REVENUE  ATTRI-
BUTED  TO  MOBILE  SPORTS  WAGERING OFFERED PURSUANT TO SECTION THIRTEEN
HUNDRED SIXTY-SEVEN-A OF THIS TITLE.
  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 SPORTS WAGERING. THE
COMMISSION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE
STATE TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR PROBLEM GAMBLING
EDUCATION AND TREATMENT PURPOSES PURSUANT TO PARAGRAPH A OF  SUBDIVISION
FOUR  OF SECTION NINETY-SEVEN-NNNN OF THE STATE FINANCE LAW. THE COMMIS-
SION SHALL PAY INTO THE COMMERCIAL GAMING FUND FIVE PERCENT OF THE STATE
TAX IMPOSED BY THIS SECTION TO BE DISTRIBUTED FOR THE COST OF REGULATION
PURSUANT TO PARAGRAPH C OF SUBDIVISION FOUR OF SECTION NINETY-SEVEN-NNNN
OF THE STATE FINANCE LAW.  THE COMMISSION SHALL PAY INTO THE  COMMERCIAL
GAMING  FUND FIVE PERCENT OF THE STATE TAX IMPOSED BY THIS SECTION TO BE
DISTRIBUTED IN THE SAME FORMULA AS MARKET  ORIGIN  CREDITS  PURSUANT  TO
SECTION  ONE  HUNDRED  FIFTEEN-B  OF  THIS CHAPTER. THE COMMISSION SHALL
REQUIRE AT LEAST MONTHLY DEPOSITS BY THE CASINO OF ANY PAYMENTS PURSUANT
TO SUBDIVISION 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

S. 17--C                            9

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.
  12.  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 ARTICLE, 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 TITLE SHALL NOT BE ALLOWED TO OFFER PARI-MUTUEL WAGERING ON
HORSE RACING EVENTS.
  13. 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.
  14.  (A)  THE  COMMISSION  SHALL  DESIGNATE  THE DIVISION OF THE STATE
POLICE TO HAVE PRIMARY RESPONSIBILITY FOR CONDUCTING, OR  ASSISTING  THE
COMMISSION IN CONDUCTING, INVESTIGATIONS INTO ABNORMAL BETTING ACTIVITY,
MATCH  FIXING,  AND  OTHER  CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A
SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN.
  (B) CASINOS SHALL MAINTAIN RECORDS OF SPORTS  WAGERING  OPERATIONS  IN
ACCORDANCE  WITH  REGULATIONS PROMULGATED BY THE COMMISSION. THESE REGU-
LATIONS SHALL, AT A MINIMUM, REQUIRE A CASINO  TO  ADOPT  PROCEDURES  TO
OBTAIN PERSONALLY IDENTIFIABLE INFORMATION FROM ANY INDIVIDUAL WHO PLAC-
ES ANY SINGLE WAGER IN AN AMOUNT OF TEN THOUSAND DOLLARS OR GREATER.
  (C)  THE  COMMISSION  SHALL COOPERATE WITH A SPORTS GOVERNING BODY AND
CASINOS TO ENSURE THE TIMELY, EFFICIENT, AND ACCURATE SHARING OF  INFOR-
MATION.
  (D)  THE  COMMISSION  AND  CASINOS SHALL COOPERATE WITH INVESTIGATIONS
CONDUCTED BY  SPORTS  GOVERNING  BODIES  OR  LAW  ENFORCEMENT  AGENCIES,

S. 17--C                           10

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.
  (E)  CASINOS  SHALL  PROMPTLY REPORT TO THE COMMISSION ANY INFORMATION
RELATING TO:
  (I) CRIMINAL OR DISCIPLINARY PROCEEDINGS COMMENCED AGAINST THE  CASINO
IN CONNECTION WITH ITS OPERATIONS;
  (II) ABNORMAL BETTING ACTIVITY OR PATTERNS THAT MAY INDICATE A CONCERN
WITH THE INTEGRITY OF A SPORTING EVENT OR EVENTS;
  (III)  ANY  POTENTIAL  BREACH  OF THE RELEVANT SPORTS GOVERNING BODY'S
INTERNAL RULES AND CODES OF CONDUCT PERTAINING TO  SPORTS  WAGERING,  AS
THEY HAVE BEEN PROVIDED BY THE SPORTS GOVERNING BODY TO THE CASINO;
  (IV)  ANY  OTHER CONDUCT THAT CORRUPTS A BETTING OUTCOME OF A SPORTING
EVENT OR EVENTS FOR PURPOSES OF FINANCIAL GAIN, INCLUDING MATCH  FIXING;
AND
  (V)  SUSPICIOUS OR ILLEGAL WAGERING ACTIVITIES, INCLUDING USE OF FUNDS
DERIVED FROM ILLEGAL  ACTIVITY,  WAGERS  TO  CONCEAL  OR  LAUNDER  FUNDS
DERIVED  FROM  ILLEGAL  ACTIVITY,  USING  AGENTS  TO PLACE WAGERS, USING
CONFIDENTIAL NON-PUBLIC INFORMATION, AND USING FALSE IDENTIFICATION.
  THE COMMISSION SHALL ALSO  PROMPTLY  REPORT  INFORMATION  RELATING  TO
CONDUCT  DESCRIBED  IN  SUBPARAGRAPHS (II), (III) AND (IV) OF THIS PARA-
GRAPH TO THE RELEVANT SPORTS GOVERNING BODY.
  (F) CASINOS SHALL MAINTAIN THE CONFIDENTIALITY OF INFORMATION PROVIDED
BY A SPORTS GOVERNING BODY TO THE CASINO, UNLESS DISCLOSURE IS  REQUIRED
BY THIS SECTION, THE COMMISSION, OTHER LAW, OR COURT ORDER.
  (G)  THE  COMMISSION,  BY REGULATION, MAY AUTHORIZE AND PROMULGATE ANY
RULES NECESSARY TO IMPLEMENT AGREEMENTS WITH OTHER STATES, OR AUTHORIZED
AGENCIES THEREOF TO ENABLE THE  SHARING  OF  INFORMATION  TO  FACILITATE
INTEGRITY  MONITORING  AND  THE  CONDUCT OF INVESTIGATIONS INTO ABNORMAL
BETTING ACTIVITY, MATCH  FIXING,  AND  OTHER  CONDUCT  THAT  CORRUPTS  A
BETTING  OUTCOME OF A SPORTING EVENT OR EVENTS FOR PURPOSES OF FINANCIAL
GAIN.
  (H) THE COMMISSION SHALL STUDY THE POTENTIAL FOR THE  CREATION  OF  AN
INTERSTATE  DATABASE  OF ALL SPORTS WAGERING INFORMATION FOR THE PURPOSE
OF INTEGRITY MONITORING, AND SHALL CREATE A FINAL REPORT  REGARDING  ALL
FINDINGS  AND  RECOMMENDATIONS  TO  BE  DELIVERED UPON COMPLETION OF ALL
OBJECTIVES DESCRIBED HEREIN, BUT IN NO EVENT LATER THAN MARCH FIRST, TWO
THOUSAND TWENTY, TO THE GOVERNOR, THE SPEAKER OF THE  ASSEMBLY  AND  THE
TEMPORARY PRESIDENT OF THE SENATE.
  (I)  THE  COMMISSION  SHALL  INVESTIGATE ALL REASONABLE ALLEGATIONS OF
PROHIBITED CONDUCT AND REFER ANY ALLEGATIONS IT DEEMS  CREDIBLE  TO  THE
APPROPRIATE LAW ENFORCEMENT ENTITY.
  (J) THE COMMISSION SHALL ESTABLISH A HOTLINE OR OTHER METHOD OF COMMU-
NICATION  THAT  ALLOWS  ANY  PERSON TO CONFIDENTIALLY REPORT INFORMATION
ABOUT PROHIBITED CONDUCT TO THE COMMISSION. THE IDENTITY OF  ANY  PERSON
REPORTING PROHIBITED CONDUCT TO THE COMMISSION SHALL REMAIN CONFIDENTIAL
UNLESS THAT PERSON AUTHORIZES DISCLOSURE OF HIS OR HER IDENTITY OR UNTIL
SUCH  TIME  AS  THE  ALLEGATION OF PROHIBITED CONDUCT IS REFERRED TO LAW
ENFORCEMENT.
  15. (A) CASINOS SHALL USE WHATEVER DATA SOURCE THEY  DEEM  APPROPRIATE
FOR  DETERMINING THE RESULT OF SPORTS WAGERING INVOLVING TIER ONE SPORTS
WAGERS.

S. 17--C                           11

  (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 SHALL OBTAIN A LICENSE AS A CASINO VENDOR ENTER-
PRISE 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  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.
  16.  A CASINO SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  17. SPORTS WAGERING CONDUCTED  PURSUANT  TO  THE  PROVISIONS  OF  THIS
SECTION IS HEREBY AUTHORIZED.
  18.  THE COMMISSION SHALL PROMULGATE RULES THAT REQUIRE AN OPERATOR TO
IMPLEMENT RESPONSIBLE GAMING PROGRAMS THAT INCLUDE COMPREHENSIVE EMPLOY-
EE TRAININGS ON RESPONDING TO CIRCUMSTANCES IN WHICH INDIVIDUALS PRESENT
SIGNS OF A GAMBLING ADDICTION AND REQUIREMENTS FOR CASINOS AND OPERATORS
UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN-A OF THIS  TITLE  TO  ASSESS,
PREVENT,  AND  ADDRESS  PROBLEM GAMING BY USERS UNDER THE AGE OF THIRTY.
THE COMMISSION SHALL ESTABLISH A HOTLINE OR  OTHER  METHOD  OF  COMMUNI-
CATION  THAT  WILL ALLOW ANY PERSON TO CONFIDENTIALLY REPORT INFORMATION
ABOUT PROHIBITED CONDUCT TO THE COMMISSION. THE COMMISSION SHALL PROMUL-
GATE RULES GOVERNING THE INVESTIGATION AND RESOLUTION OF A CHARGE OF ANY
PERSON PURPORTED TO HAVE ENGAGED IN PROHIBITED CONDUCT.
  19. THE CONDUCT OF SPORTS WAGERING IN VIOLATION  OF  THIS  SECTION  IS
PROHIBITED.
  20. (A) IN ADDITION TO ANY CRIMINAL PENALTIES PROVIDED FOR UNDER ARTI-
CLE  TWO  HUNDRED TWENTY-FIVE OF THE PENAL LAW, ANY PERSON, FIRM, CORPO-
RATION, ASSOCIATION, AGENT, OR EMPLOYEE, WHO IS NOT AUTHORIZED TO  OFFER
SPORTS  WAGERING  UNDER  THIS SECTION OR SECTION THIRTEEN HUNDRED SIXTY-

S. 17--C                           12

SEVEN-A OF THIS TITLE, AND WHO KNOWINGLY OFFERS  OR  ATTEMPTS  TO  OFFER
SPORTS  WAGERING  OR  MOBILE SPORTS WAGERING IN NEW YORK SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN ONE HUNDRED  THOUSAND  DOLLARS  FOR
EACH  VIOLATION, NOT TO EXCEED FIVE MILLION DOLLARS FOR VIOLATIONS ARIS-
ING OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH SHALL ACCRUE TO THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  (B) ANY PERSON, FIRM, CORPORATION, ASSOCIATION, AGENT, OR EMPLOYEE WHO
KNOWINGLY VIOLATES ANY PROCEDURE  IMPLEMENTED  UNDER  THIS  SECTION,  OR
SECTION  THIRTEEN  HUNDRED  SIXTY-SEVEN-A OF THIS TITLE, SHALL BE LIABLE
FOR A CIVIL PENALTY OF NOT MORE THAN  FIVE  THOUSAND  DOLLARS  FOR  EACH
VIOLATION,  NOT  TO EXCEED FIFTY THOUSAND DOLLARS FOR VIOLATIONS ARISING
OUT OF THE SAME TRANSACTION OR OCCURRENCE, WHICH  SHALL  ACCRUE  TO  THE
STATE AND MAY BE RECOVERED IN A CIVIL ACTION BROUGHT BY THE COMMISSION.
  §  2.  The racing, pari-mutuel wagering and breeding law is amended by
adding a new section 1367-a to read as follows:
  § 1367-A. MOBILE SPORTS WAGERING. 1. (A) EXCEPT AS  PROVIDED  IN  THIS
SUBDIVISION,  THE  TERMS IN THIS SECTION SHALL HAVE THE SAME MEANINGS AS
SUCH TERMS ARE DEFINED IN SUBDIVISION ONE OF  SECTION  THIRTEEN  HUNDRED
SIXTY-SEVEN OF THIS TITLE.
  (B)  "OPERATOR" FOR PURPOSES OF THIS SECTION, MEANS A CASINO WHICH HAS
ELECTED TO OFFER A MOBILE SPORTS WAGERING PLATFORM, AN INDIAN TRIBE  (OR
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 AND HAS
ENTERED INTO A SPORTS WAGERING AGREEMENT TO OPERATE WITH THE  COMMISSION
PURSUANT  TO THIS SECTION, OR THE AGENT OF SUCH LICENSED GAMING FACILITY
OR SUCH INDIAN TRIBE.
  2. (A) NO CASINO SHALL ADMINISTER, MANAGE, OR OTHERWISE MAKE AVAILABLE
A MOBILE SPORTS WAGERING PLATFORM TO PERSONS LOCATED IN NEW  YORK  STATE
UNLESS REGISTERED WITH THE COMMISSION PURSUANT TO THIS SECTION. A CASINO
MAY USE ONE MOBILE SPORTS WAGERING PLATFORM AND BRAND PROVIDED THAT SUCH
PLATFORM  AND  BRAND HAS BEEN REVIEWED AND APPROVED BY THE COMMISSION. A
CASINO MAY CONTRACT WITH AN INDEPENDENT OPERATOR TO PROVIDE  ITS  MOBILE
SPORTS WAGERING PLATFORM. THE INDEPENDENT OPERATOR MAY DISPLAY ITS BRAND
ON THE PLATFORM IN ADDITION TO THE CASINO'S BRAND.
  (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 OPERATORS  AND  CASINOS
REGISTERED TO OFFER MOBILE SPORTS WAGERING IN NEW YORK STATE PURSUANT TO
THIS SECTION ON THE COMMISSION'S WEBSITE FOR PUBLIC USE.
  3.  IN  THE  EVENT THAT A CASINO CONTRACTS WITH AN OPERATOR TO PROVIDE
ITS MOBILE SPORTS WAGERING  PLATFORM  AND  BRAND,  SUCH  OPERATOR  SHALL
OBTAIN A LICENSE AS A CASINO VENDOR ENTERPRISE PRIOR TO THE EXECUTION OF
ANY  SUCH  CONTRACT,  AND  SUCH  LICENSE SHALL BE ISSUED PURSUANT TO THE
PROVISIONS OF SECTION THIRTEEN HUNDRED TWENTY-SEVEN OF THIS ARTICLE  AND
IN ACCORDANCE WITH THE REGULATIONS PROMULGATED BY THE COMMISSION.
  3-A.  (A)  AS  A CONDITION OF REGISTRATION AS AN OPERATOR, EACH CASINO
SHALL AGREE, UPON REQUEST OF AN INDIAN TRIBE THAT HAS NOT  ENTERED  INTO
AN  AGREEMENT FOR MOBILE SPORTS WAGERING WITH ANOTHER CASINO, TO PROVIDE
A SITE FOR A MOBILE SPORTS WAGERING SERVER AND RELATED EQUIPMENT FOR THE
INDIAN TRIBE AS DIRECTED BY THE COMMISSION, AT NO  COST  TO  THE  INDIAN
TRIBE  EXCEPT  THE DIRECT AND ACTUAL COST OF HOSTING THE SERVER OR OTHER
EQUIPMENT USED BY THE INDIAN TRIBE AS DETERMINED BY THE COMMISSION.
  (B) AS A CONDITION OF REGISTRATION AS AN OPERATOR IN NEW  YORK  STATE,
AN  INDIAN  TRIBE SHALL ENTER INTO AN AGREEMENT WITH THE COMMISSION WITH
RESPECT TO MOBILE SPORTS WAGERING:

S. 17--C                           13

  (I) TO FOLLOW THE REQUIREMENTS IMPOSED ON CASINOS AND OPERATORS  UNDER
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE WITH
RESPECT  TO  THE INDIAN TRIBE'S MOBILE SPORTS WAGERING; TO ADHERE TO THE
REGULATIONS PROMULGATED BY THE COMMISSION PURSUANT TO THIS SECTION  WITH
RESPECT  TO  MOBILE  SPORTS  WAGERING, AND TO SUBMIT TO THE COMMISSION'S
ENFORCEMENT OF THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN  OF
THIS TITLE AND REGULATIONS PROMULGATED THEREUNDER WITH RESPECT TO MOBILE
SPORTS  WAGERING, INCLUDING BY WAIVING TRIBAL SOVEREIGN IMMUNITY FOR THE
SOLE AND LIMITED PURPOSE OF SUCH ENFORCEMENT. NOTHING  HEREIN  SHALL  BE
CONSTRUED  AS  REQUIRING  AN  INDIAN  TRIBE'S AGREEMENT TO ADHERE TO THE
REQUIREMENTS OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS  TITLE  FOR
GAMING  CONDUCTED  ON  TRIBAL  LANDS  AS  A CONDITION OF OFFERING MOBILE
SPORTS WAGERING UNDER THIS SECTION;
  (II) TO WAIVE THE INDIAN TRIBE'S EXCLUSIVE GEOGRAPHIC RIGHT  TO  OFFER
AND CONDUCT MOBILE SPORTS WAGERING, BUT NOT OTHERWISE;
  (III)  TO  REMIT  PAYMENT TO THE STATE EQUAL TO TAX ON SPORTS WAGERING
REVENUE IMPOSED UNDER SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE
WITH RESPECT TO MOBILE SPORTS WAGERING;
  (IV) NOT TO OFFER OR TO CONDUCT MOBILE GAMING OTHER THAN MOBILE SPORTS
WAGERING PURSUANT TO THIS SECTION UNLESS SUCH MOBILE GAMING IS OTHERWISE
AUTHORIZED BY STATE OR FEDERAL LAW; AND
  (V) TO LOCATE THE SERVER OR OTHER EQUIPMENT USED BY THE  INDIAN  TRIBE
OR  ITS AGENT TO ACCEPT MOBILE SPORTS WAGERING AT A CASINO AS DEFINED IN
PARAGRAPH (D) OF SUBDIVISION ONE OF SECTION THIRTEEN HUNDRED SIXTY-SEVEN
OF THIS TITLE THAT HAS APPLIED FOR AND IS ELIGIBLE  TO  REGISTER  AS  AN
OPERATOR  OF  MOBILE SPORTS WAGERING PURSUANT TO THIS SECTION AND TO PAY
THE ACTUAL COST OF HOSTING THE SERVER OR OTHER EQUIPMENT  AS  DETERMINED
BY THE COMMISSION.
  (C) ALL AGREEMENTS ENTERED INTO CASINOS AND INDIAN TRIBES WITH RESPECT
TO HOSTING MOBILE SPORTS WAGERING PLATFORMS FOR AN INDIAN TRIBE:
  (I)  MUST  BE  APPROVED  BY  THE COMMISSION PRIOR TO TAKING EFFECT AND
BEFORE REGISTRATION OF THE CASINO OR INDIAN TRIBE AS AN  OPERATOR  UNDER
THIS SECTION;
  (II)  MUST  PROVIDE THAT THE INDIAN TRIBE MAY, AT ITS SOLE DISCRETION,
TERMINATE THE AGREEMENT AND ALL COMMITMENTS,  UNDERTAKINGS  AND  WAIVERS
MADE  BY  THE  INDIAN  TRIBE  THEREUNDER, EXCEPT THAT THE INDIAN TRIBE'S
WAIVER OF ITS EXCLUSIVE GEOGRAPHIC RIGHT TO  OFFER  AND  CONDUCT  MOBILE
SPORTS WAGERING SHALL SURVIVE THE TERMINATION OF THE AGREEMENT;
  (III)  SHALL  BE LIMITED IN APPLICABILITY SOLELY TO THE INDIAN TRIBE'S
OPERATION OF MOBILE SPORTS BETTING AND SHALL NOT  EXTEND  TO  ANY  OTHER
OPERATION OR ACTIVITY OF THE INDIAN TRIBE; AND
  (IV)  SHALL NOT CREATE ANY RIGHTS OR PRIVILEGES TO ANY THIRD PARTY WHO
IS NOT A PARTY TO THE AGREEMENT, EXCEPT THAT THE COMMISSION  SHALL  HAVE
THE  POWER  TO ENFORCE THE AGREEMENT INCLUDING BY REVOKING OR SUSPENDING
THE REGISTRATION OF A PARTY THAT FAILS TO COMPLY  WITH  ITS  OBLIGATIONS
UNDER THE AGREEMENT.
  (D)  NO  MOBILE  SPORTS  WAGERING  MAY  BE  CONDUCTED WITHIN AN INDIAN
TRIBE'S EXCLUSIVE GEOGRAPHIC AREA UNLESS THE INDIAN TRIBE WITH EXCLUSIVE
GEOGRAPHIC RIGHT TO THAT AREA IS REGISTERED AS AN  OPERATOR  UNDER  THIS
SECTION.  OPERATORS SHALL USE GEO-LOCATION AND GEO-FENCING TECHNOLOGY TO
ENSURE THAT MOBILE SPORTS WAGERING IS NOT AVAILABLE TO PERSONS  WHO  ARE
PHYSICALLY  LOCATED  IN  AN  INDIAN  TRIBE'S  EXCLUSIVE GEOGRAPHIC AREA,
UNLESS THE INDIAN TRIBE WITH EXCLUSIVE GEOGRAPHIC RIGHT TO THAT AREA  IS
REGISTERED AS AN OPERATOR UNDER THIS SECTION.
  3-B.(A)  THE  COMMISSION SHALL PROMULGATE REGULATIONS TO IMPLEMENT THE
PROVISIONS OF THIS SECTION, INCLUDING:

S. 17--C                           14

  (I) THE DEVELOPMENT OF THE INITIAL FORM OF THE APPLICATION FOR  REGIS-
TRATION;
  (II) RESPONSIBLE PROTECTIONS WITH REGARD TO COMPULSIVE PLAY SAFEGUARDS
FOR FAIR PLAY;
  (III)  REQUIRING  THAT OPERATORS ADOPT CONTROLS TO PREVENT MINORS FROM
CREATING ACCOUNTS AND PLACING WAGERS;
  (IV) REQUIRING THAT OPERATORS ADOPT CONTROLS TO MAINTAIN THE EFFICIEN-
CY OF SELF-EXCLUSION LIMITS; AND
  (V) REQUIRING THAT OPERATORS UTILIZE COMMERCIALLY  REASONABLE  TECHNO-
LOGICAL MEANS OF VERIFYING ACCOUNT HOLDERS' IDENTITIES.
  (B) THE COMMISSION SHALL PRESCRIBE THE INITIAL FORM OF THE APPLICATION
FOR REGISTRATION, FOR OPERATORS, WHICH SHALL REQUIRE, BUT NOT BE LIMITED
TO:
  (I) THE FULL NAME AND PRINCIPAL ADDRESS OF THE OPERATOR;
  (II) IF A CORPORATION, THE NAME OF THE STATE IN WHICH INCORPORATED AND
THE  FULL  NAMES AND ADDRESSES OF ANY PARTNER, OFFICER, DIRECTOR, SHARE-
HOLDER HOLDING TEN  PERCENT  OR  MORE  EQUITY,  AND  ULTIMATE  EQUITABLE
OWNERS;
  (III)  IF  A  BUSINESS ENTITY OTHER THAN A CORPORATION, THE FULL NAMES
AND ADDRESSES OF THE PRINCIPALS,  PARTNERS,  SHAREHOLDERS  HOLDING  FIVE
PERCENT OR MORE EQUITY, AND ULTIMATE EQUITABLE OWNERS;
  (IV)  WHETHER SUCH CORPORATION OR ENTITY FILES INFORMATION AND REPORTS
WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AS REQUIRED BY
SECTION THIRTEEN OF THE SECURITIES EXCHANGE ACT OF 1934,  15  U.S.C.  §§
78A-78KK;  OR  WHETHER  THE  SECURITIES OF THE CORPORATION OR ENTITY ARE
REGULARLY TRADED ON AN  ESTABLISHED  SECURITIES  MARKET  IN  THE  UNITED
STATES;
  (V)  THE TYPE AND ESTIMATED NUMBER OF CONTESTS TO BE CONDUCTED ANNUAL-
LY; AND
  (VI) A STATEMENT OF THE ASSETS AND LIABILITIES OF THE OPERATOR.
  (C) THE COMMISSION MAY REQUIRE THE FULL NAMES  AND  ADDRESSES  OF  THE
OFFICERS  AND  DIRECTORS  OF  ANY CREDITOR OF THE OPERATOR, AND OF THOSE
STOCKHOLDERS WHO HOLD MORE THAN TEN PERCENT OF THE STOCK OF  THE  CREDI-
TOR.
  (D)  UPON RECEIPT OF AN APPLICATION FOR REGISTRATION FOR EACH INDIVID-
UAL LISTED ON SUCH APPLICATION AS AN OFFICER OR DIRECTOR, THE COMMISSION
SHALL SUBMIT TO THE DIVISION OF CRIMINAL JUSTICE SERVICES A SET OF FING-
ERPRINTS, AND THE DIVISION OF CRIMINAL JUSTICE SERVICES  PROCESSING  FEE
IMPOSED  PURSUANT  TO SUBDIVISION EIGHT-A OF SECTION EIGHT HUNDRED THIR-
TY-SEVEN OF THE EXECUTIVE LAW AND ANY FEE IMPOSED BY THE FEDERAL  BUREAU
OF  INVESTIGATION.  UPON  RECEIPT  OF  THE FINGERPRINTS, THE DIVISION OF
CRIMINAL JUSTICE SERVICES SHALL PROMPTLY FORWARD A SET OF  THE  INDIVID-
UAL'S  FINGERPRINTS  TO  THE  FEDERAL  BUREAU  OF  INVESTIGATION FOR THE
PURPOSE OF A NATIONWIDE  CRIMINAL  HISTORY  RECORD  CHECK  TO  DETERMINE
WHETHER  SUCH INDIVIDUAL HAS BEEN CONVICTED OF A CRIMINAL OFFENSE IN ANY
STATE OTHER THAN NEW YORK OR IN A FEDERAL JURISDICTION. THE DIVISION  OF
CRIMINAL  JUSTICE SERVICES SHALL PROMPTLY PROVIDE THE REQUESTED CRIMINAL
HISTORY INFORMATION TO THE COMMISSION. FOR THE PURPOSES OF THIS SECTION,
THE TERM "CRIMINAL HISTORY INFORMATION"  SHALL  MEAN  A  RECORD  OF  ALL
CONVICTIONS  OF CRIMES AND ANY PENDING CRIMINAL CHARGES MAINTAINED ON AN
INDIVIDUAL BY THE DIVISION OF CRIMINAL JUSTICE SERVICES AND THE  FEDERAL
BUREAU  OF  INVESTIGATION. ALL SUCH CRIMINAL HISTORY INFORMATION SENT TO
THE COMMISSION PURSUANT TO THIS SUBDIVISION SHALL  BE  CONFIDENTIAL  AND
SHALL NOT BE PUBLISHED OR IN ANY WAY DISCLOSED TO PERSONS OTHER THAN THE
COMMISSION, UNLESS OTHERWISE AUTHORIZED BY LAW.

S. 17--C                           15

  (E) UPON RECEIPT OF CRIMINAL HISTORY INFORMATION PURSUANT TO PARAGRAPH
(D)  OF  THIS  SUBDIVISION, THE COMMISSION SHALL MAKE A DETERMINATION TO
APPROVE OR DENY AN APPLICATION FOR REGISTRATION; PROVIDED, HOWEVER, THAT
BEFORE MAKING A DETERMINATION ON SUCH APPLICATION, THE COMMISSION  SHALL
PROVIDE  THE  SUBJECT OF THE RECORD WITH A COPY OF SUCH CRIMINAL HISTORY
INFORMATION AND A COPY OF ARTICLE TWENTY-THREE-A OF THE  CORRECTION  LAW
AND  INFORM SUCH PROSPECTIVE APPLICANT SEEKING TO BE CREDENTIALED OF HIS
OR HER RIGHT TO SEEK CORRECTION OF ANY INCORRECT  INFORMATION  CONTAINED
IN  SUCH  CRIMINAL  HISTORY  INFORMATION PURSUANT TO THE REGULATIONS AND
PROCEDURES ESTABLISHED BY THE DIVISION  OF  CRIMINAL  JUSTICE  SERVICES.
THE  COMMISSION SHALL DENY ANY APPLICATION FOR REGISTRATION, OR SUSPEND,
REFUSE TO RENEW, OR REVOKE ANY EXISTING REGISTRATION ISSUED PURSUANT  TO
THIS  ARTICLE,  UPON THE FINDING THAT THE OPERATOR OR REGISTRANT, OR ANY
PARTNER, OFFICER, DIRECTOR, OR SHAREHOLDER:
  (I) HAS KNOWINGLY MADE A FALSE  STATEMENT  OF  MATERIAL  FACT  OR  HAS
DELIBERATELY  FAILED TO DISCLOSE ANY INFORMATION REQUIRED BY THE COMMIS-
SION;
  (II) HAS HAD A GAMING REGISTRATION OR LICENSE  DENIED,  SUSPENDED,  OR
REVOKED IN ANY OTHER STATE OR COUNTRY FOR JUST CAUSE;
  (III)  HAS  LEGALLY DEFAULTED IN THE PAYMENT OF ANY OBLIGATION OR DEBT
DUE TO ANY STATE OR POLITICAL SUBDIVISION; OR
  (IV) HAS AT ANY TIME KNOWINGLY FAILED TO COMPLY WITH  ANY  REQUIREMENT
OUTLINED IN THIS SECTION, ANY OTHER PROVISION OF THIS ARTICLE, ANY REGU-
LATIONS  PROMULGATED BY THE COMMISSION OR ANY ADDITIONAL REQUIREMENTS OF
THE COMMISSION.
  (F) ALL DETERMINATIONS TO APPROVE OR DENY AN APPLICATION  PURSUANT  TO
THIS  ARTICLE SHALL BE PERFORMED IN A MANNER CONSISTENT WITH SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE TWENTY-THREE-A OF THE CORRECTION LAW. WHEN THE COMMISSION DENIES  AN
APPLICATION,  THE  OPERATOR SHALL BE AFFORDED NOTICE AND THE RIGHT TO BE
HEARD AND OFFER PROOF IN OPPOSITION TO SUCH DETERMINATION IN  ACCORDANCE
WITH THE REGULATIONS OF THE COMMISSION.
  4. (A) AS A CONDITION OF REGISTRATION IN NEW YORK STATE, EACH OPERATOR
SHALL IMPLEMENT THE FOLLOWING MEASURES:
  (I) LIMIT EACH AUTHORIZED SPORTS BETTOR TO ONE ACTIVE AND CONTINUOUSLY
USED  ACCOUNT ON THEIR PLATFORM, AND PREVENT ANYONE THEY KNOW, OR SHOULD
HAVE KNOWN TO BE A PROHIBITED SPORTS BETTOR FROM MAINTAINING ACCOUNTS OR
PARTICIPATING IN ANY SPORTS WAGERING OFFERED BY SUCH OPERATOR;
  (II) ADOPT APPROPRIATE SAFEGUARDS TO ENSURE, TO A REASONABLE DEGREE OF
CERTAINTY, THAT AUTHORIZED SPORTS BETTORS ARE PHYSICALLY LOCATED  WITHIN
THE STATE WHEN ENGAGING IN MOBILE SPORTS BETTING;
  (III) PROHIBIT MINORS FROM PARTICIPATING IN ANY SPORTS WAGERING, WHICH
INCLUDES:
  (1)  IF  AN OPERATOR BECOMES OR IS MADE AWARE THAT A MINOR HAS CREATED
AN ACCOUNT, OR ACCESSED THE ACCOUNT  OF  ANOTHER,  SUCH  OPERATOR  SHALL
PROMPTLY,  WITHIN  NO  MORE  THAN  TWO BUSINESS DAYS, REFUND ANY DEPOSIT
RECEIVED FROM THE MINOR, WHETHER OR NOT THE  MINOR  HAS  ENGAGED  IN  OR
ATTEMPTED  TO  ENGAGE  IN  SPORTS  WAGERING; PROVIDED, HOWEVER, THAT ANY
REFUND MAY BE OFFSET BY ANY PRIZES ALREADY AWARDED;
  (2) EACH OPERATOR SHALL PROVIDE PARENTAL CONTROL PROCEDURES  TO  ALLOW
PARENTS  OR GUARDIANS TO EXCLUDE MINORS FROM ACCESS TO ANY SPORTS WAGER-
ING OR PLATFORM. SUCH PROCEDURES SHALL INCLUDE  A  TOLL-FREE  NUMBER  TO
CALL FOR HELP IN ESTABLISHING SUCH PARENTAL CONTROLS; AND
  (3)  EACH  OPERATOR  SHALL  TAKE  APPROPRIATE STEPS TO CONFIRM THAT AN
INDIVIDUAL OPENING AN ACCOUNT IS NOT A MINOR;

S. 17--C                           16

  (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;
  (XII)  ENSURE NO SPORTS WAGERING SHALL BE BASED ON A PROHIBITED SPORTS
EVENT;
  (XIII) PERMIT  ACCOUNT  HOLDERS  TO  ESTABLISH  SELF-EXCLUSION  GAMING
LIMITS  ON  A  DAILY,  WEEKLY, AND MONTHLY BASIS THAT ENABLE THE ACCOUNT
HOLDER TO IDENTIFY THE MAXIMUM AMOUNT OF MONEY  AN  ACCOUNT  HOLDER  MAY
DEPOSIT DURING SUCH PERIOD OF TIME;
  (XIV)  WHEN  AN ACCOUNT HOLDER'S LIFETIME DEPOSITS EXCEED TWO THOUSAND
FIVE HUNDRED DOLLARS, THE OPERATOR SHALL PREVENT ANY WAGERING UNTIL  THE
PATRON  IMMEDIATELY ACKNOWLEDGES, AND ACKNOWLEDGES EACH YEAR THEREAFTER,
THAT THE ACCOUNT HOLDER HAS MET THE DEPOSIT THRESHOLD AND MAY  ELECT  TO
ESTABLISH  RESPONSIBLE  GAMING  LIMITS  OR  CLOSE  THE  ACCOUNT, AND THE
ACCOUNT HOLDER HAS RECEIVED DISCLOSURES  FROM  THE  OPERATOR  CONCERNING
PROBLEM GAMBLING RESOURCES;
  (XV) MAINTAIN A PUBLICLY ACCESSIBLE INTERNET PAGE DEDICATED TO RESPON-
SIBLE PLAY, A LINK TO WHICH MUST APPEAR ON THE OPERATOR'S WEBSITE AND IN
ANY  MOBILE  APPLICATION  OR  ELECTRONIC  PLATFORM ON WHICH A BETTOR MAY
PLACE WAGERS. THE RESPONSIBLE PLAY PAGE SHALL INCLUDE:  A  STATEMENT  OF
THE  OPERATOR'S POLICY AND COMMITMENT TO RESPONSIBLE GAMING; INFORMATION
REGARDING, OR LINKS TO INFORMATION REGARDING, THE RISKS ASSOCIATED  WITH
GAMBLING  AND THE POTENTIAL SIGNS OF PROBLEM GAMING; THE AVAILABILITY OF
SELF-IMPOSED RESPONSIBLE GAINING LIMITS; A   LINK TO  A  PROBLEM  GAMING
WEBPAGE  MAINTAINED  BY  THE  OFFICE  OF  ALCOHOL  AND   SUBSTANCE ABUSE
SERVICES; AND SUCH OTHER INFORMATION OR STATEMENTS AS THE COMMISSION MAY
REQUIRE BY RULE; AND
  (XVI) SUBMIT ANNUALLY A PROBLEM GAMING PLAN  TO  THE  COMMISSION  THAT
INCLUDES:  THE  OBJECTIVES  OF AND TIMETABLES FOR IMPLEMENTING THE PLAN;
IDENTIFICATION OF THE PERSONS RESPONSIBLE FOR IMPLEMENTING AND MAINTAIN-
ING THE PLAN; PROCEDURES FOR IDENTIFYING USERS WITH SUSPECTED  OR  KNOWN
PROBLEM  GAMING  BEHAVIOR; PROCEDURES FOR PROVIDING INFORMATION TO USERS
CONCERNING PROBLEM GAMING IDENTIFICATION AND  RESOURCES;  PROCEDURES  TO

S. 17--C                           17

PREVENT GAMING BY MINORS AND SELF-EXCLUDED PERSONS; AND SUCH OTHER PROB-
LEM GAMING INFORMATION AS THE COMMISSION MAY REQUIRE BY RULE.
  (B)  OPERATORS  SHALL  NOT DIRECTLY OR INDIRECTLY OPERATE, PROMOTE, OR
ADVERTISE ANY PLATFORM OR SPORTS WAGERING TO PERSONS LOCATED IN NEW YORK
STATE UNLESS REGISTERED PURSUANT TO THIS ARTICLE.
  (C) OPERATORS SHALL NOT OFFER ANY SPORTS WAGERING BASED ON ANY PROHIB-
ITED SPORTS EVENT.
  (D) OPERATORS SHALL NOT PERMIT SPORTS WAGERING BY ANYONE THEY KNOW, OR
SHOULD HAVE KNOWN, TO BE A PROHIBITED SPORTS BETTOR.
  (E) ADVERTISEMENTS FOR CONTESTS AND  PRIZES  OFFERED  BY  AN  OPERATOR
SHALL  NOT  TARGET  PROHIBITED  SPORTS BETTORS, MINORS, OR SELF-EXCLUDED
PERSONS.
  (F) OPERATORS SHALL PROHIBIT THE USE OF THIRD-PARTY SCRIPTS OR SCRIPT-
ING PROGRAMS FOR ANY EXCHANGE WAGERING CONTEST AND ENSURE THAT  MEASURES
ARE  IN  PLACE  TO DETER, DETECT AND, TO THE EXTENT REASONABLY POSSIBLE,
PREVENT CHEATING, INCLUDING COLLUSION, AND THE USE OF CHEATING  DEVICES,
INCLUDING  USE OF SOFTWARE PROGRAMS THAT SUBMIT EXCHANGE WAGERING SPORTS
WAGERS UNLESS OTHERWISE APPROVED BY THE COMMISSION.
  (G) OPERATORS SHALL DEVELOP AND PROMINENTLY DISPLAY PROCEDURES ON  THE
MAIN  PAGE  OF SUCH OPERATOR'S PLATFORM FOR THE FILING OF A COMPLAINT BY
AN AUTHORIZED SPORTS BETTOR AGAINST SUCH OPERATOR. AN  INITIAL  RESPONSE
SHALL  BE  GIVEN  BY  SUCH  OPERATOR TO SUCH BETTOR FILING THE COMPLAINT
WITHIN FORTY-EIGHT HOURS. A COMPLETE RESPONSE SHALL  BE  GIVEN  BY  SUCH
OPERATOR  TO  SUCH BETTOR FILING THE COMPLAINT WITHIN TEN BUSINESS DAYS.
AN AUTHORIZED SPORTS BETTOR MAY FILE A COMPLAINT ALLEGING A VIOLATION OF
THE PROVISIONS OF THIS ARTICLE WITH THE COMMISSION.
  (H) OPERATORS SHALL MAINTAIN RECORDS  OF  ALL  ACCOUNTS  BELONGING  TO
AUTHORIZED SPORTS BETTORS AND RETAIN SUCH RECORDS OF ALL TRANSACTIONS IN
SUCH ACCOUNTS FOR THE PRECEDING FIVE YEARS.
  (I)  THE  SERVER  OR  OTHER  EQUIPMENT WHICH IS USED BY AN OPERATOR TO
ACCEPT MOBILE SPORTS WAGERING SHALL BE LOCATED IN  THE  LICENSED  GAMING
FACILITY IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE COMMISSION.
  (J) ALL MOBILE SPORTS WAGERING INITIATED IN THIS STATE SHALL BE DEEMED
TO  TAKE PLACE AT THE LICENSED GAMING FACILITY WHERE THE SERVER OR OTHER
EQUIPMENT USED BY AN  OPERATOR  TO  ACCEPT  MOBILE  SPORTS  WAGERING  IS
LOCATED,  REGARDLESS OF THE AUTHORIZED SPORTS BETTOR'S PHYSICAL LOCATION
WITHIN THIS STATE.
  (K) ALL MOBILE SPORTS WAGERING SHALL BE CONDUCTED IN  COMPLIANCE  WITH
THIS SECTION AND SECTION THIRTEEN HUNDRED SIXTY-SEVEN OF THIS TITLE.
  (L)  PERMIT  AN  INDIAN TRIBE PURSUANT TO PARAGRAPH (A) OF SUBDIVISION
THREE-A OF THIS SECTION TO PLACE AT THE  LICENSED  GAMING  FACILITY  THE
SERVER  OR  OTHER  EQUIPMENT BY WHICH THE INDIAN TRIBE MAY ACCEPT MOBILE
SPORTS WAGERING, AND TO MAKE COMMERCIALLY REASONABLE  ACCOMMODATIONS  AS
MAY BE NECESSARY TO PLACE AND OPERATE THE INDIAN TRIBE'S SERVER OR OTHER
EQUIPMENT.
  5.  (A)  SUBJECT TO REGULATIONS PROMULGATED BY THE COMMISSION, CASINOS
MAY ENTER INTO AGREEMENTS WITH OPERATORS  OR  AFFILIATES  TO  ALLOW  FOR
AUTHORIZED  BETTORS  TO  SIGN  UP  TO CREATE AND FUND ACCOUNTS ON MOBILE
SPORTS WAGERING PLATFORMS OFFERED BY THE CASINO.
  (B) AUTHORIZED SPORTS BETTORS MAY SIGN UP TO CREATE THEIR ACCOUNT ON A
MOBILE SPORTS WAGERING PLATFORM IN PERSON AT A CASINO, OR AN  AFFILIATE,
OR THROUGH AN OPERATORS INTERNET WEBSITE 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

S. 17--C                           18

AN  AFFILIATE,  ELECTRONICALLY  RECOGNIZED  PAYMENT  METHODS, OR VIA ANY
OTHER MEANS APPROVED BY THE COMMISSION.
  (D)  IN  ACCORDANCE  WITH  REGULATIONS  PROMULGATED BY THE COMMISSION,
CASINOS MAY ENTER INTO AGREEMENTS WITH AFFILIATES TO LOCATE SELF-SERVICE
MOBILE SPORTS BETTING KIOSKS, WHICH ARE OWNED, OPERATED  AND  MAINTAINED
BY  THE  CASINO,  AND CONNECTED VIA THE INTERNET TO THE CASINO, UPON THE
PREMISES OF THE AFFILIATE.  AUTHORIZED SPORTS BETTORS MAY PLACE  ACCOUNT
WAGERS, AND PLACE AND REDEEM NON-ACCOUNT CASH WAGERS, AT SUCH KIOSKS.
  (E)  ALL  AGREEMENTS  ENTERED  INTO  BETWEEN CASINOS AND AFFILIATES IN
RELATION TO THE PROVISIONS OF THIS SECTION  SHALL  BE  APPROVED  BY  THE
COMMISSION PRIOR TO TAKING EFFECT AND SHALL INCLUDE A PLAN FOR THE TIME-
LY  PAYMENT  OF  LIABILITIES  DUE  TO THE AFFILIATE UNDER THE AGREEMENT;
PROVIDED, HOWEVER, THAT THE COMMISSION SHALL NOT APPROVE ANY SUCH AGREE-
MENT BETWEEN A CASINO AND A RACETRACK LICENSED PURSUANT TO THIS  CHAPTER
OR  AN OPERATOR OF VIDEO LOTTERY GAMING AT AQUEDUCT LICENSED PURSUANT TO
SECTION ONE THOUSAND SIX HUNDRED  SEVENTEEN-A  OF  THE  TAX  LAW,  UNTIL
TWELVE  MONTHS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH; AND PROVIDED,
FURTHER, THAT THE  COMMISSION  SHALL  NOT  APPROVE  ANY  SUCH  AGREEMENT
BETWEEN A CASINO AND A PROFESSIONAL SPORTS STADIUM OR ARENA, UNTIL TWEN-
TY MONTHS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH.
  6.  THE  COMMISSION  SHALL  ANNUALLY CAUSE A REPORT TO BE PREPARED AND
DISTRIBUTED TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPACT OF  MOBILE
SPORTS  WAGERING  ON  PROBLEM  GAMBLERS  IN  NEW  YORK. THE REPORT SHALL
INCLUDE AN ASSESSMENT OF PROBLEM GAMING AMONG PERSONS UNDER THE  AGE  OF
THIRTY.  THE REPORT SHALL BE PREPARED BY A NON-GOVERNMENTAL ORGANIZATION
OR ENTITY WITH EXPERTISE IN SERVING THE NEEDS OF PERSONS  WITH  GAMBLING
ADDICTIONS.  THE  REPORT  SHALL  BE  PREPARED  AND DISTRIBUTED UNDER THE
SUPERVISION OF AND IN COORDINATION WITH THE COMMISSION. THE COSTS  ASSO-
CIATED  WITH  THE  PREPARATION  AND  DISTRIBUTION OF THE REPORT SHALL BE
BORNE BY OPERATORS AND THE COMMISSION SHALL BE AUTHORIZED  TO  ASSESS  A
FEE  AGAINST  OPERATORS  FOR  THESE  PURPOSES. THE COMMISSION SHALL ALSO
REPORT PERIODICALLY TO THE GOVERNOR AND THE LEGISLATURE  ON  THE  EFFEC-
TIVENESS OF THE STATUTORY AND REGULATORY CONTROLS IN PLACE TO ENSURE THE
INTEGRITY OF MOBILE SPORTS WAGERING OPERATIONS.
  §  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. 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 immediately.