Regulate Casino Betting

Section 1. Section 1367 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows:

§ 1367. [Sports wagering] Wagering. 1. As used in this section:

(a) "Agent" means an entity that is party to a contract with a casino authorized to operate a pool and is approved by the commission to operate a pool on behalf of such casino;

(b) "Authorized bettor" means an individual who is physically present in this state when placing a wager, who is not a prohibited bettor, that participates in wagering offered by a casino. All wagers placed in accordance with this section are considered placed or otherwise made when received by the operator at the licensed gaming facility, regardless of the authorized bettor's physical location at the time the wager is initiated.

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

[(b)] (d) "Commission" means the commission established pursuant to section one hundred two of this chapter;

[(c)] (e) "Collegiate sport or athletic event" means a sport or athletic event offered or sponsored by or played in connection with a public or private institution that offers educational services beyond the secondary level;

[(d)] (f) "Exchange wagering" means a form of wagering in which an authorized bettor, on the one hand, and one or more authorized bettors,

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

[ ] is old law to be omitted.

LBD11741-01-9

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a casino or an agent or an operator, on the other hand place identically opposing wagers on an exchange operated by a casino or an agent or an operator;

(g) "Global risk management" means the direction, management, consultation and/or instruction for purposes of managing risks associated with wagering conducted pursuant to this section and includes the setting and adjustment of betting lines, point spreads, or odds and whether to place layoff bets as permitted by this section;

(h) "High school sport or athletic event" means a sport or athletic event offered or sponsored by or played in connection with a public or private institution that offers education services at the secondary level;

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

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

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

(l) "Official league data" means statistics, results, outcomes, and other data relating to an event that have been obtained from the relevant governing body or an entity expressly authorized by the governing body to provide such information to casinos;

(m) "Operator" means a casino which has elected to operate a [sports] pool or an Indian Tribe (or an agent of such Indian Tribe) that has entered into a tribal-state gaming compact in accordance with the Indian Gaming Regulatory Act 25 U.S.C. 2710, that is in effect and has been ratified by the state;

[(e)] (n) "Professional sport or athletic event" means an event at which two or more persons participate in sports or athletic events and receive compensation in excess of actual expenses for their participation in such event;

[(f)] (o) "Prohibited bettor" means:

(i) any officer or employee of the commission;

(ii) any principal or key employee of a casino or operator, except as may be permitted by the commission for good cause shown;

(iii) any casino gaming or non-gaming employee at the casino that employs such person and at any operator that has an agreement with that casino;

(iv) any contractor, subcontractor, or consultant, or officer or employee of a contractor, subcontractor, or consultant, of a casino if such person is directly involved in the operation or observation of wagering, or the processing of wagering claims or payments;

(v) any person subject to a contract with the commission if such contract contains a provision prohibiting such person from participating in wagering;

(vi) any spouse, child, brother, sister or parent residing as a member of the same household in the principal place of abode of any of the foregoing persons at the same casino where the foregoing person is prohibited from participating in wagering;

(vii) any individual with access to non-public confidential information about wagering;

(viii) any amateur or professional athlete if the wager is based on any sport or athletic event overseen by the athlete's sports governing body;

(ix) any sports agent, owner or employee of a team, player and umpire union personnel, and employee referee, coach or official of a sports

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governing body, if the wager is based on any sport or athletic event overseen by the individual's sports governing body;

(x) any individual placing a wager as an agent or proxy for an otherwise prohibited bettor; or

(xi) any minor;

(p) "Prohibited sports event" means any collegiate sport or athletic event that takes place in New York or a sport or athletic event in which any New York college team participates regardless of where the event takes place, or high school sport or athletic event;

[(g)] (q) "Registered sports governing body" means a sports governing body that is headquartered in the United States and who has registered with the commission to receive royalty fee revenue in such form as the commission may require;

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

[(h) "Sports pool"] (s) "Governing body" means the organization that prescribes final rules and enforces codes of conduct with respect to an event and participants therein;

(t) "Pool" means the business of accepting wagers on any [sports] event by any system or method of wagering; [and

(i) "Sports wagering lounge"] (u) "Wager" means cash or cash equivalent that is paid by an authorized bettor to a casino to participate in wagering offered by such casino;

(v) "Wagering" means wagering on events or any portion thereof, or on the individual performance statistics of participants participating in an event, or combination of events, by in-person communication. The term "wagering" shall include, but is not limited to, single-game bets, teaser bets, parlays, over-under bets, money line, pools, exchange wagering, in-game wagering, in-play bets, proposition bets and straight bets;

(w) "Wagering gross revenue" means: (i) the amount equal to the total of all wagers not attributable to prohibited sports events that an operator collects from all players, less the total of all sums not attributable to prohibited sports events paid out as winnings to all bettors, however, that the total of all sums paid out as winnings to bettors shall not include the cash equivalent value of any merchandise or thing of value awarded as a prize, or (ii) in the case of exchange wagering pursuant to this section, the commission on winning wagers by authorized bettors retained by the operator. The issuance to or wagering by authorized bettors at a casino of any promotional gaming credit shall not be taxable for the purposes of determining wagering gross revenue;

(x) "Wagering lounge" means an area wherein a [sports] pool is operated;

(y) "Tier one wager" means a wager that is determined solely by the final score or final outcome of the event;

(z) "Tier two wager" means an in-play wager that is not a tier one wager;

(aa) "Tier three wager" means a wager that is neither a tier one nor a tier two wager; and

(bb) "Indian Tribe" means an Indian Tribe (or an agent of such tribe) that has entered into a tribal-state gaming compact in accordance with the Indian Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168, inclusive, and 25 U.S.C. Sec. 2701 et seq.) which has been ratified by the state.

(cc) "Event" means an event other than a horse race or a greyhound race.

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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 regulations promulgated pursuant to this article. The commission shall hear and decide promptly and in reasonable order all applications for a license to operate a [sports] pool, shall have the general responsibility for the implementation of this section and shall have all other duties specified in this section with regard to the operation of a [sports] pool. The license to operate a [sports] pool shall be in addition to any other license required to be issued to operate a [gaming facility] casino. No license to operate a [sports] pool shall be issued by the commission to any entity unless it has established its financial stability, integrity and responsibility and its good character, honesty and integrity.

No later than five years after the date of the issuance of a license and every five years thereafter or within such lesser periods as the commission may direct, a licensee shall submit to the commission such documentation or information as the commission may by regulation require, to demonstrate to the satisfaction of the executive director of the commission that the licensee continues to meet the requirements of the law and regulations.

(b) As a condition of licensure the commission shall require that each agent authorized to conduct wagering pay a one-time fee of twelve million dollars. Such fee shall be paid within thirty days of gaming commission approval prior to license issuance and deposited into the commercial gaming revenue fund established pursuant to section thirteen hundred fifty-two of this article.

(c) A [sports] pool shall be operated in a [sports] wagering lounge located at a casino. The lounge shall conform to all requirements concerning square footage, design, equipment, security measures and related matters which the commission shall by regulation prescribe.

[(c)] (d) The operator of a [sports] pool shall establish or display the odds at which wagers may be placed on [sports] events.

[(d)] (e) An operator shall accept wagers on [sports] events only from persons physically present in the [sports] wagering lounge. A person placing a wager shall be at least twenty-one years of age.

[(e)] (f) An operator may also accept layoff bets as long as the authorized pool places such wagers with another authorized pool or pools in accordance with regulations of the commission. A pool that places a layoff bet shall inform the pool accepting the wager that the wager is being placed by a pool and shall disclose its identity.

(g) An operator may utilize global risk management pursuant to the approval of the commission.

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

[(f)] (i) The holder of a license to operate a [sports] pool may contract with [an entity] an agent to conduct any or all aspects of that operation, in accordance with the regulations of the commission. [That entity] Each agent shall obtain a license as a casino vendor enterprise prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of section one thousand three hundred

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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 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.