| 1 | 1 | | Stricken language would be deleted from and underlined language would be added to present law. |
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| 2 | 2 | | *CRH297* 03/19/2025 3:25:05 PM CRH297 |
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| 3 | 3 | | State of Arkansas 1 |
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| 4 | 4 | | 95th General Assembly A Bill 2 |
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| 5 | 5 | | Regular Session, 2025 SENATE BILL 524 3 |
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| 6 | 6 | | 4 |
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| 7 | 7 | | By: Senators D. Wallace, Hester, J. Scott 5 |
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| 8 | 8 | | By: Representatives Duffield, K. Ferguson, Achor, F. Allen, Barnes, Gramlich, M. McElroy, McGruder, 6 |
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| 9 | 9 | | Painter, Perry, J. Richardson 7 |
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| 10 | 10 | | 8 |
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| 11 | 11 | | For An Act To Be Entitled 9 |
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| 12 | 12 | | AN ACT TO MAKE THE OPERATION OF AN ILLEGAL ONLINE 10 |
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| 13 | 13 | | CASINO OR SPORTS BETTING A FELONY; TO AMEND THE LAW 11 |
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| 14 | 14 | | CONCERNING INTERACTIVE GAMING; TO CREATE THE 12 |
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| 15 | 15 | | INTERACTIVE GAMING ACT; TO EXPAND INTERACTIVE GAMING 13 |
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| 16 | 16 | | TO INCLUDE NAME, IMAGE, OR LIKENESS DRAWING GAMES AND 14 |
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| 17 | 17 | | CASINO GAMING; TO DECLARE AN EMERGENCY; AND FOR OTHER 15 |
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| 18 | 18 | | PURPOSES. 16 |
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| 19 | 19 | | 17 |
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| 20 | 20 | | 18 |
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| 21 | 21 | | Subtitle 19 |
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| 22 | 22 | | TO MAKE OPERATION OF AN ILLEGAL ONLINE 20 |
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| 23 | 23 | | CASINO OR SPORTS BETTING A FELONY; TO 21 |
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| 24 | 24 | | CREATE THE INTERACTIVE GAMING ACT AND TO 22 |
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| 25 | 25 | | INCLUDE NAME, IMAGE, OR LIKENESS DRAWING 23 |
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| 26 | 26 | | GAMES AND CASINO GAMING; AND TO DECLARE 24 |
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| 27 | 27 | | AN EMERGENCY. 25 |
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| 28 | 28 | | 26 |
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| 29 | 29 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 27 |
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| 30 | 30 | | 28 |
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| 31 | 31 | | SECTION 1. Arkansas Code § 5 -66-103(a), concerning the offense of 29 |
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| 32 | 32 | | keeping a gambling house, is amended to read as follows: 30 |
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| 33 | 33 | | (a) A person or entity commits the offense of keeping a gambling house 31 |
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| 34 | 34 | | if the person or entity: 32 |
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| 35 | 35 | | (1) Keeps, conducts, or operates, or who is interested directly 33 |
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| 36 | 36 | | or indirectly in keeping, conducting, or operating any gambling house or 34 |
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| 37 | 37 | | place, whether a physical location or online, where gambling is carried on; 35 |
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| 38 | 38 | | (2) Sets up, keeps, or exhibits or causes to be set up, kept, or 36 SB524 |
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| 39 | 39 | | |
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| 40 | 40 | | 2 03/19/2025 3:25:05 PM CRH297 |
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| 41 | 41 | | exhibited or assists in setting up, keeping, or exhibiting any gambling 1 |
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| 42 | 42 | | device; or 2 |
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| 43 | 43 | | (3) Is interested directly or indirectly in running any gambling 3 |
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| 44 | 44 | | house or in setting up and exhibiting any gambling device, either by 4 |
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| 45 | 45 | | furnishing money or another article, for the purpose of carrying on any 5 |
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| 46 | 46 | | gambling house; 6 |
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| 47 | 47 | | (4)(A) Makes available or participates in keeping, conducting, 7 |
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| 48 | 48 | | or operating any game, contest, or promotion that is available on the 8 |
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| 49 | 49 | | internet or accessible on a mobile phone, computer terminal, or similar 9 |
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| 50 | 50 | | device capable of accessing the game, contest, or promotion that utilizes a 10 |
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| 51 | 51 | | dual-currency system of payment that allows the player to exchange the 11 |
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| 52 | 52 | | currency for a prize, award, cash, or cash equivalent, or a chance to win any 12 |
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| 53 | 53 | | prize, award, cash, or cash equivalent, and simulates: 13 |
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| 54 | 54 | | (i) Casino-style gaming, including without 14 |
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| 55 | 55 | | limitation slot machines, video poker, or table games that include without 15 |
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| 56 | 56 | | limitation blackjack, roulette, craps, and poker; 16 |
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| 57 | 57 | | (ii) Lottery games, including without limitation 17 |
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| 58 | 58 | | draw games, instant win games, keno, and bingo; and 18 |
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| 59 | 59 | | (iii) Sports wagering . 19 |
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| 60 | 60 | | (B) A sweepstakes game that does not award cash or a cash 20 |
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| 61 | 61 | | equivalent is not included under subdivision (a)(4) of this section. 21 |
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| 62 | 62 | | (C) Subdivision (a)(4)(A) of this section does not apply 22 |
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| 63 | 63 | | to a casino licensed by the Arkansas Racing Commission; or 23 |
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| 64 | 64 | | (5)(A) Makes available or participates in keeping, conducting, 24 |
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| 65 | 65 | | or operating any game online that the commission or the Department of Finance 25 |
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| 66 | 66 | | and Administration, consistent with the Arkansas Constitution, may determine 26 |
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| 67 | 67 | | by rule to be sports wagering. 27 |
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| 68 | 68 | | (B) Subdivision (a)(5)(A) of this section does not apply 28 |
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| 69 | 69 | | to a casino licensed by the commission. 29 |
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| 70 | 70 | | 30 |
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| 71 | 71 | | SECTION 2. Arkansas Code Title 23, Chapter 117, is amended to add an 31 |
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| 72 | 72 | | additional subchapter to read as follows: 32 |
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| 73 | 73 | | Subchapter 2 — Interactive Gaming Act 33 |
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| 74 | 74 | | 34 |
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| 75 | 75 | | 23-117-201. Title. 35 |
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| 76 | 76 | | This subchapter shall be known and may be cited as the “Interactive 36 SB524 |
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| 77 | 77 | | |
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| 78 | 78 | | 3 03/19/2025 3:25:05 PM CRH297 |
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| 79 | 79 | | Gaming Act”. 1 |
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| 80 | 80 | | 2 |
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| 81 | 81 | | 23-117-202. Definitions. 3 |
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| 82 | 82 | | As used in this subchapter: 4 |
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| 83 | 83 | | (1) "Casino licensee" means any individual, corporation, 5 |
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| 84 | 84 | | partnership, association, trust, or other entity holding a license issued 6 |
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| 85 | 85 | | by the Arkansas Racing Commission to conduct casino gaming as authorized 7 |
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| 86 | 86 | | by The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, 8 |
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| 87 | 87 | | Amendment 100; 9 |
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| 88 | 88 | | (2) "Dormant account” means an interactive gaming account that 10 |
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| 89 | 89 | | has had no patron-initiated activity for a period of sixteen (16) months; 11 |
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| 90 | 90 | | (3)(A) “Interactive gaming” includes the placing of wagers 12 |
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| 91 | 91 | | through a server-based gaming system that is situated in the United States 13 |
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| 92 | 92 | | using a computer network of interoperable packet switched data networks 14 |
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| 93 | 93 | | through which a casino licensee may offer authorized interactive games to a 15 |
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| 94 | 94 | | person who has established an interactive gaming account. 16 |
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| 95 | 95 | | (B) "Interactive gaming" includes the placing of wagers 17 |
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| 96 | 96 | | using: 18 |
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| 97 | 97 | | (i) A mobile cellular device using an application; 19 |
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| 98 | 98 | | or 20 |
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| 99 | 99 | | (ii) An internet browser on a supported device using 21 |
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| 100 | 100 | | software. 22 |
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| 101 | 101 | | (C) "Interactive gaming" includes a name, image, or 23 |
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| 102 | 102 | | likeness drawing game conducted through an electronic device or machine to 24 |
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| 103 | 103 | | benefit a name, image, or likeness collective consistent with the Arkansas 25 |
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| 104 | 104 | | Student-Athlete Publicity Rights Act, § 4 -75-1301 et seq.; 26 |
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| 105 | 105 | | (4)(A) “Interactive gaming system” means a gaming device. 27 |
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| 106 | 106 | | (B) "Interactive gaming system" includes: 28 |
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| 107 | 107 | | (i) The collective hardware, software, 29 |
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| 108 | 108 | | communication, technology, and proprietary hardware and software specifically 30 |
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| 109 | 109 | | designed or modified for and intended for use in the conduct of interactive 31 |
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| 110 | 110 | | gaming; and 32 |
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| 111 | 111 | | (ii) The core components of the interactive gaming 33 |
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| 112 | 112 | | system, including without limitation the servers or databases running the 34 |
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| 113 | 113 | | games on the interactive gaming system and storing game and interactive 35 |
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| 114 | 114 | | gaming account information, that are hosted within the United States, with 36 SB524 |
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| 115 | 115 | | |
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| 117 | 117 | | the core components residing on physical hardware or a remote server, 1 |
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| 118 | 118 | | provided that gaming participation is confined to the state; and 2 |
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| 119 | 119 | | (5) "Name, image, or likeness drawing game" means a drawing game 3 |
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| 120 | 120 | | of chance approved by the commission, the net proceeds of which after 4 |
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| 121 | 121 | | incurred expenses, as approved by the commission, are divided between: 5 |
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| 122 | 122 | | (A) A name, image, or likeness collective consistent with 6 |
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| 123 | 123 | | the Arkansas Student -Athlete Publicity Rights Act, § 4 -75-1301 et seq., or 7 |
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| 124 | 124 | | any other organization affiliated with an Arkansas collegiate athletics 8 |
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| 125 | 125 | | program; and 9 |
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| 126 | 126 | | (B) The winning participant. 10 |
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| 127 | 127 | | 11 |
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| 128 | 128 | | 23-117-203. Interactive gaming. 12 |
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| 129 | 129 | | (a)(1)(A) A casino licensee shall not operate an interactive gaming 13 |
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| 130 | 130 | | system in this state unless the interactive gaming system has been approved 14 |
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| 131 | 131 | | by the Arkansas Racing Commission. 15 |
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| 132 | 132 | | (B) An activity conducted under Arkansas Constitution, 16 |
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| 133 | 133 | | Amendment 84, shall not be considered interactive gaming. 17 |
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| 134 | 134 | | (2) An interactive gaming system operated by a casino licensee 18 |
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| 135 | 135 | | is subject to rules promulgated by the commission. 19 |
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| 136 | 136 | | (3) A casino licensee is limited to one (1) branded interactive 20 |
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| 137 | 137 | | gaming system that is identified with the casino licensee. 21 |
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| 138 | 138 | | (4) The operation of interactive gaming is prohibited in 22 |
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| 139 | 139 | | circumstances in which a majority of the net casino gaming receipts, as 23 |
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| 140 | 140 | | defined by The Arkansas Casino Gaming Amendment of 2018, Arkansas 24 |
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| 141 | 141 | | Constitution, Amendment 100, from interactive gaming is paid to a third -party 25 |
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| 142 | 142 | | vendor assisting in the operation of the interactive gaming. 26 |
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| 143 | 143 | | (b) An interactive gaming system shall meet applicable minimum 27 |
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| 144 | 144 | | technical standards provided in Gaming Laboratories International's GLI -19: 28 |
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| 145 | 145 | | Standards for Interactive Gaming Systems, as revised on July 17, 2020, or an 29 |
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| 146 | 146 | | equivalent certification issued by a testing laboratory as approved and 30 |
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| 147 | 147 | | licensed by the commission. 31 |
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| 148 | 148 | | (c) A casino licensee may operate a name, image, or likeness drawing 32 |
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| 149 | 149 | | game as approved by the commission. 33 |
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| 150 | 150 | | 34 |
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| 151 | 151 | | 23-117-204. Internal controls for casino licensees related to 35 |
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| 152 | 152 | | interactive gaming. 36 SB524 |
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| 153 | 153 | | |
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| 155 | 155 | | (a) A casino licensee shall comply with: 1 |
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| 156 | 156 | | (1) Standards related to interactive gaming adopted by the 2 |
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| 157 | 157 | | Arkansas Racing Commission to implement this subchapter; and 3 |
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| 158 | 158 | | (2) Existing rules of the commission. 4 |
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| 159 | 159 | | (b) The commission shall: 5 |
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| 160 | 160 | | (1) Approve game titles or themes; and 6 |
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| 161 | 161 | | (2) Provide for standards and practices consistent with the 7 |
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| 162 | 162 | | standards and practices of the Gaming Laboratories International, or other 8 |
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| 163 | 163 | | testing entity licensed by the commission, approved in another jurisdiction 9 |
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| 164 | 164 | | in the United States to serve as validation in Arkansas. 10 |
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| 165 | 165 | | (c)(1) Live personnel engaged in dealing cards or similar activities 11 |
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| 166 | 166 | | involved in interactive gaming shall hold a gaming license in the 12 |
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| 167 | 167 | | jurisdiction in which the live personnel physically operate. 13 |
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| 168 | 168 | | (2) A casino licensee shall transmit a list of the live 14 |
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| 169 | 169 | | personnel described in subdivision (c)(1) of this section to the commission 15 |
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| 170 | 170 | | no less than monthly. 16 |
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| 171 | 171 | | (d) The commission may determine additional areas that require 17 |
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| 172 | 172 | | internal controls that may necessitate the development of minimum standards. 18 |
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| 173 | 173 | | 19 |
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| 174 | 174 | | 23-117-205. Acceptance of wagers. 20 |
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| 175 | 175 | | A casino licensee shall not accept or facilitate a wager on interactive 21 |
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| 176 | 176 | | gaming other than as set forth by rule of the Arkansas Racing Commission. 22 |
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| 177 | 177 | | 23 |
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| 178 | 178 | | 23-117-206. Disposition of dormant accounts. 24 |
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| 179 | 179 | | (a)(1) A casino licensee may suspend a dormant account. 25 |
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| 180 | 180 | | (2) The casino licensee may reactivate a dormant account 26 |
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| 181 | 181 | | suspended under subdivision (a)(1) of this section only after reverifying the 27 |
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| 182 | 182 | | current government-issued picture identification of the account holder and 28 |
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| 183 | 183 | | other information as required by the Arkansas Racing Commission. 29 |
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| 184 | 184 | | (b) All amounts remaining inactive in the dormant account after a 30 |
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| 185 | 185 | | period of two (2) years of the account's becoming a dormant account shall be 31 |
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| 186 | 186 | | paid into a cash fund of the commission. 32 |
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| 187 | 187 | | (c) Before closing a dormant account under this section, the casino 33 |
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| 188 | 188 | | licensee shall attempt to contact the account holder a minimum of one (1) 34 |
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| 189 | 189 | | time per year. 35 |
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| 190 | 190 | | 36 SB524 |
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| 191 | 191 | | |
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| 193 | 193 | | 23-117-207. Prohibition — Penalty. 1 |
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| 194 | 194 | | (a) The operation of an interactive gaming system without a casino 2 |
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| 195 | 195 | | license in this state is prohibited. 3 |
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| 196 | 196 | | (b) Consistent with § 5 -66-103, a violation of subsection (a) of this 4 |
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| 197 | 197 | | section is a Class D felony. 5 |
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| 198 | 198 | | 6 |
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| 199 | 199 | | 23-117-208. Rules. 7 |
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| 200 | 200 | | The Arkansas Racing Commission may promulgate rules to administer and 8 |
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| 201 | 201 | | enforce this subchapter. 9 |
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| 202 | 202 | | 10 |
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| 203 | 203 | | SECTION 3. EMERGENCY CLAUSE. It is found and determined by the 11 |
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| 204 | 204 | | General Assembly of the State of Arkansas that unlicensed, unregulated, and 12 |
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| 205 | 205 | | untaxed casino style and sports wagering offerings are an ever -growing threat 13 |
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| 206 | 206 | | to the citizens of Arkansas. Further, institutions of higher education and 14 |
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| 207 | 207 | | their affiliated nonprofit organizations are intertwined with economic 15 |
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| 208 | 208 | | development, the education of student -athletes, commerce, and other 16 |
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| 209 | 209 | | governmental interests that otherwise impact the State of Arkansas; that a 17 |
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| 210 | 210 | | drawing game conducted through interactive gaming, in order to benefit a 18 |
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| 211 | 211 | | name, image, or likeness organization, the net proceeds of which, after 19 |
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| 212 | 212 | | incurred expenses, are equally divided between a name, image, or likeness 20 |
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| 213 | 213 | | organization and the participant, can increase economic development, 21 |
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| 214 | 214 | | education, and commerce in the State of Arkansas; and that this act is 22 |
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| 215 | 215 | | immediately necessary to ensure that institutions of higher education and 23 |
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| 216 | 216 | | their affiliated nonprofit organizations can financially support their 24 |
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| 217 | 217 | | student-athletes and athletic programs, which will bolster economic 25 |
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| 218 | 218 | | development, education, and commerce in the State of Arkansas. Therefore, an 26 |
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| 219 | 219 | | emergency is declared to exist, and this act being immediately necessary for 27 |
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| 220 | 220 | | the preservation of the public peace, health, and safety shall become 28 |
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| 221 | 221 | | effective on: 29 |
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| 222 | 222 | | (1) The date of its approval by the Governor; 30 |
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| 223 | 223 | | (2) If the bill is neither approved nor vetoed by the Governor, 31 |
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| 224 | 224 | | the expiration of the period of time during which the Governor may veto the 32 |
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| 225 | 225 | | bill; or 33 |
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| 226 | 226 | | (3) If the bill is vetoed by the Governor and the veto is 34 |
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| 227 | 227 | | overridden, the date the last house overrides the veto. 35 |
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| 228 | 228 | | 36 |
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