LCO No. 5506 1 of 21
General Assembly Raised Bill No. 7331
January Session, 2019
LCO No. 5506
Referred to Committee on PUBLIC SAFETY AND SECURITY
Introduced by:
(PS)
AN ACT CONCERNING SP ORTS WAGERING IN THE STATE.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective July 1, 2019) (a) As used in this section, 1
unless the context otherwise requires: 2
(1) "Casino gaming facility" has the same meaning as provided in 3
section 12-557b of the general statutes; 4
(2) "Commissioner" means the Commissioner of Consumer 5
Protection; 6
(3) "Department" means the Department of Consumer Protection; 7
(4) "Electronic sports wagering platform" or "platform" means the 8
combination of hardware, software and data networks used by a 9
sports wagering operator or the Connecticut Lottery Corporation 10
established in section 12-802 of the general statutes, as amended by 11
this act, to manage, administer, offer or control sports wagering over 12
the Internet, including through an Internet web site or a mobile device; 13 Raised Bill No. 7331
LCO No. 5506 2 of 21
(5) "Mashantucket Pequot memorandum of understanding" means 14
the memorandum of understanding entered into by and between the 15
state and the Mashantucket Pequot Tribe on January 13, 1993, as 16
amended from time to time; 17
(6) "Mashantucket Pequot procedures" means the Final 18
Mashantucket Pequot Gaming Procedures prescribed by the Secretary 19
of the United States Department of the Interior pursuant to Section 20
2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 21
56 Federal Register 24996 (May 31, 1991), as amended from time to 22
time; 23
(7) "Minor" means an individual who is under twenty-one years of 24
age; 25
(8) "Mohegan compact" means the Tribal-State Compact entered 26
into by and between the state and the Mohegan Tribe of Indians of 27
Connecticut on May 17, 1994, as amended from time to time; 28
(9) "Mohegan memorandum of understanding" means the 29
memorandum of understanding entered into by and between the state 30
and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 31
amended from time to time; 32
(10) "Sports bettor" means an individual who is not a minor and is 33
physically present in the state when placing a sports wager with a 34
sports wagering operator, the Connecticut Lottery Corporation or a 35
lottery sales agent licensed pursuant to this section; 36
(11) "Sporting event" means (A) any sporting or athletic event at 37
which two or more persons participate and receive compensation in 38
excess of actual expenses for such participation in such sporting or 39
athletic event, or (B) any sporting or athletic event sponsored by an 40
intercollegiate athletic program of an institution of higher education. 41
"Sporting event" does not include horse racing or any sporting or 42
athletic event sponsored by a minor league or high school; 43 Raised Bill No. 7331
LCO No. 5506 3 of 21
(12) "Sports governing body" means the organization that prescribes 44
final rules and enforces codes of conduct with respect to a sporting 45
event and participants in the sporting event; 46
(13) "Sports wagering" means risking or accepting any money, 47
credit, deposit or other thing of value for gain contingent in whole or 48
in part (A) by any system or method of wagering, including, but not 49
limited to, in person or over the Internet through an Internet web site 50
or a mobile device, and (B) based on (i) a sporting event or a portion or 51
portions of a sporting event, or (ii) the individual performance 52
statistics of an athlete or athletes in a sporting event or a combination 53
of sporting events. "Sports wagering" does not include the payment of 54
an entry fee to play fantasy contests, as defined in section 12-578aa of 55
the general statutes, as amended by this act; 56
(14) "Sports wagering gross revenue" means the amount equal to the 57
total amount of all wagers placed on sporting events not excluded 58
from sports wagering that a sports wagering operator collects from all 59
sports bettors, less the total amount of all sums paid out as winnings to 60
sports bettors, except that the cash equivalent value of any 61
merchandise or thing of value awarded as a prize shall not be included 62
in the sums paid out as winnings; and 63
(15) "Sports wagering operator" or "operator" means a person or 64
business organization operating the off-track betting system or limited 65
liability company operating a casino gaming facility that offers sports 66
wagering either in person to individuals at such facilities or through an 67
electronic sports wagering platform and is licensed pursuant to this 68
section. 69
(b) The provisions of this section shall not be effective unless the 70
following conditions have been met: 71
(1) On and after the effective date of this section, the Governor 72
enters into new tribal-state compacts with the Mashantucket Pequot 73
Tribe and the Mohegan Tribe of Indians of Connecticut pursuant to the 74
federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) 75 Raised Bill No. 7331
LCO No. 5506 4 of 21
concerning the authorization of sports wagering. Any such tribal-state 76
compact shall: (A) Allow each tribe to offer sports wagering on Indian 77
lands, (B) provide that the authorization of sports wagering in this 78
state does not relieve each tribe from the tribe's obligation to contribute 79
a percentage of the gross operating revenues of video facsimile games 80
to the state as provided in the Mashantucket Pequot memorandum of 81
understanding and the Mohegan memorandum of understanding, as 82
the case may be, and (C) provide that the authorization of sports 83
wagering in this state does not terminate the moratoria on the 84
operation of video facsimile games by the tribes pursuant to section 85
15(a) of the Mashantucket Pequot procedures and section 15(a) of the 86
Mohegan compact. 87
(2) The new tribal-state compacts are approved or deemed 88
approved by the Secretary of the United States Department of the 89
Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 90
100-497, 25 USC 2701 et seq., and its implementing regulations. If such 91
approval is overturned by a court in a final judgment, which is not 92
appealable, the authorization for sports wagering provided under this 93
section shall cease to be effective. 94
(3) The new tribal-state compacts are approved by the General 95
Assembly pursuant to section 3-6c of the general statutes. 96
(c) (1) On and after the date this section becomes effective pursuant 97
to subsection (b) of this section, the Commissioner of Consumer 98
Protection may issue a license to operate sports wagering, a sports 99
wagering vendor license or a sports wagering lottery sales agent 100
license, as applicable, in accordance with this section. 101
(2) No person or business organization operating the off-track 102
betting system, limited liability company operating a casino gaming 103
facility or the Connecticut Lottery Corporation may offer sports 104
wagering unless such person, business organization, limited liability 105
company or corporation has obtained a license to operate sports 106
wagering issued by the commissioner pursuant to this section. 107 Raised Bill No. 7331
LCO No. 5506 5 of 21
(3) No person or business organization may develop an electronic 108
sports wagering platform on behalf of a sports wagering operator or 109
the Connecticut Lottery Corporation unless such person or business 110
organization holds a sports wagering vendor license issued by the 111
commissioner pursuant to this section. 112
(4) No lottery sales agent may offer sports wagering at such agent's 113
place of business unless such agent holds a sports wagering lottery 114
sales agent license issued by the commissioner pursuant to this section. 115
(d) (1) Each applicant for a license pursuant to this section shall 116
submit a completed application on forms prescribe d by the 117
commissioner. Such application may require the applicant to submit 118
any information the commissioner deems pertinent to the issuance of 119
such license. Each applicant, except the Connecticut Lottery 120
Corporation, shall submit to state and national criminal history records 121
checks, conducted in accordance with section 29-17a of the general 122
statutes, before such license is issued. 123
(2) Each applicant for a license to operate sports wagering shall 124
submit with its application a nonrefundable application fee of one 125
hundred thousand dollars. Except as provided in subsection (e) of this 126
section, each such license shall expire biennially on the anniversary 127
date of the issuance of such license unless renewed in accordance with 128
this section. The nonrefundable application fee for such renewal shall 129
be one hundred thousand dollars. Upon the issuance or renewal of a 130
license, the licensee shall pay a licensing fee of five hundred thousand 131
dollars to the commissioner. The Connecticut Lottery Corporation 132
shall be exempt from the application fee, renewal application fee and 133
licensing fee for a license to operate sports wagering. 134
(3) Each applicant for a sports wagering vendor license shall submit 135
with its application a nonrefundable application fee of one hundred 136
thousand dollars. Except as provided in subsection (e) of this section, 137
each such license shall expire biennially on the anniversary date of the 138
issuance of such license unless renewed in accordance with this 139 Raised Bill No. 7331
LCO No. 5506 6 of 21
section. The nonrefundable application fee for such renewal shall be 140
one hundred thousand dollars. Upon the issuance or renewal of a 141
license, the licensee shall pay a licensing fee of three hundred thousand 142
dollars to the commissioner. 143
(4) Except as provided in subsection (e) of this section, each sports 144
wagering lottery agent license shall be renewed biennially. Upon the 145
issuance or renewal of such license, the licensee shall pay a licensing 146
fee of two hundred fifty dollars to the commissioner. 147
(5) Applications for renewal of any such license shall be on such 148
form as prescribed by the commissioner. 149
(e) (1) The commissioner shall, as soon as practicable after the 150
receipt of a completed license or renewal application, grant or deny the 151
license or renewal application. Any holder of a license issued pursuant 152
to this section who submits an application to renew such license prior 153
to the expiration of such license may continue to perform the activities 154
authorized by such license until the commissioner approves or denies 155
such renewal application. 156
(2) Failure by any person or business organization, limited liability 157
company or corporation that holds a license pursuant to this section or 158
any off-track betting facility to comply with the requirements of this 159
section and any regulations adopted pursuant to this section shall 160
constitute grounds for the commissioner to investigate such licensee or 161
facility and after a hearing held in accordance with the provisions of 162
chapter 54 of the general statutes, suspend or revoke such license for 163
good cause or suspend operations at such facility and impose a civil 164
penalty of not more than two hundred fifty thousand dollars. Any 165
licensee whose license is suspended or revoked or who is fined, any 166
facility whose sports wagering operations are suspended or that is 167
fined, or any applicant aggrieved by the action of the commissioner 168
concerning an application for a license or renewal application, may 169
appeal in accordance with the provisions of said chapter. 170
(f) (1) If licensed under subsection (e) of this section, a sports 171 Raised Bill No. 7331
LCO No. 5506 7 of 21
wagering operator or the Connecticut Lottery Corporation may offer 172
sports wagering through an electronic sports wagering platform to 173
individuals physically located in this state when placing a sports 174
wager. Such operator or corporation may establish its own platform or 175
may contract with a third party for the development of a platform on 176
behalf of the operator or corporation, provided such third party holds 177
a sports wagering vendor license issued by the commissioner pursuant 178
to this section. 179
(2) At a minimum, each electronic sports wagering platform shall be 180
developed to: (A) Verify that an individual with a sports wagering 181
account is twenty-one years of age or older and is located in the state; 182
(B) establish a voluntary self-exclusion process to allow an individual 183
to exclude himself or herself from placing sports wagers; (C) establish 184
a voluntary process to allow an individual to limit the amount of 185
money such individual may use to place sports wagers; (D) provide a 186
mechanism to prevent an individual who (i) participates in the self-187
exclusion process from placing sports wagers, or (ii) limits the amount 188
of money such individual may use to place sports wagers from 189
exceeding such limits; (E) permit an individual to permanently close 190
his or her sports wagering account at any time and for any reason; (F) 191
prominently display introductory procedures for sports bettors on the 192
main page of the platform that explain sports wagering; (G) offer an 193
individual access to his or her sports wagering account history and 194
details; (H) provide that any money in a sports wagering account 195
belongs solely to the owner of the account and may be withdrawn by 196
the owner at any time; (I) provide a mechanism to prevent the 197
unauthorized use of sports wagering accounts and maintain the 198
security of wagering data, sport bettor's data and other confidential 199
information; (J) post a conspicuous link to responsible gambling 200
information, as specified by the commissioner, on all sports wagering 201
account web pages; and (K) transmit real-time information regarding 202
sports wagers placed on sporting events. 203
(3) Prior to placing wagers on an electronic sports wagering 204
platform, a sports bettor shall establish a sports wagering account in 205 Raised Bill No. 7331
LCO No. 5506 8 of 21
person at the casino gaming facility, off-track betting facility, central 206
office of the Connecticut Lottery Corporation or any high tier claim 207
center so designated by the corporation, as the case may be, and 208
present at least two forms of identification at the time of establishing 209
the sports wagering account. 210
(g) Each sports wagering operator, the Connecticut Lottery 211
Corporation and a lottery sales agent offering sports wagering shall: 212
(1) Verify that a sports bettor is at least twenty-one years of age; 213
(2) Allow any individual to exclude himself or herself from placing 214
sports wagers or limit the amount of money such individual may use 215
to place sports wagers with an operator, corporation or lottery sales 216
agent, and the operator, corporation or lottery sales agent that has been 217
notified by such individual of such exclusion or limit shall take 218
reasonable steps to prevent such individual from placing sports 219
wagers or exceeding such limit, as the case may be; 220
(3) Enter into an agreement with a provider of sporting event data 221
that meets or exceeds the minimum qualifications as set forth in 222
regulations adopted by the commissioner pursuant to subsection (p) of 223
this section; 224
(4) Report any suspicion of abnormal betting activity to the 225
commissioner for immediate investigation by the commissioner; 226
(5) Maintain the security of wagering data, customer data and other 227
confidential information to prevent unauthorized access to and 228
dissemination of such data and information; and 229
(6) Share records in real time, at the account level and in 230
pseudonymous form to the department with respect to sports wagers 231
placed with such operator, corporation or lottery sales agent. 232
(h) (1) No individual who is a licensed sports wagering operator or 233
sports wagering vendor, an officer, director, owner or employee of a 234
sports wagering operator or sports wagering vendor, and no family 235 Raised Bill No. 7331
LCO No. 5506 9 of 21
member of such individual who resides in the same household as such 236
individual, shall place any wager with a sports wagering operator, the 237
Connecticut Lottery Corporation or any lottery sales agent. 238
(2) No athlete, coach, referee, team owner, employee of a sports 239
governing body, employee of a sports governing body's member 240
teams, or personnel of any bargaining unit of a sports governing 241
body's athletes or referees, shall place any wager on any sporting event 242
overseen by such governing body. In determining which individuals 243
are prohibited from placing a wager under this subdivision, a sports 244
wagering operator and the Connecticut Lottery Corporation shall use 245
publicly available information and any lists provided by the relevant 246
sports governing body to the Department of Consumer Protection. 247
(3) No individual with access to nonpublic, confidential information 248
that could affect the outcome of a sporting event shall place any wager 249
on such sporting event with any sports wagering operator, the 250
Connecticut Lottery Corporation or any lottery sales agent. 251
(4) No individual shall place any sports wager pursuant to this 252
section as an agent or a proxy for another individual. 253
(5) Each sports wagering operator, the Connecticut Lottery 254
Corporation and each licensed sports wagering lottery sales agent shall 255
take reasonable steps to prevent the conduct prohibited under 256
subdivisions (1) to (4), inclusive, of this subsection and shall 257
immediately notify the commissioner if such operator, corporation or 258
agent believes such conduct has occurred. 259
(6) A sports wagering operator, the Connecticut Lottery 260
Corporation, a lottery sales agent and a sports wagering vendor 261
licensee shall not disclose or sell any sports bettor's information. 262
Records that directly or indirectly identify a sports bettor shall be kept 263
confidential and shall not be disclosed. 264
(7) No prizes shall be paid to any individual who is restricted from 265
placing sports wagers pursuant to this subsection. Any such prize shall 266 Raised Bill No. 7331
LCO No. 5506 10 of 21
be deposited into the sports wagering account established in section 2 267
of this act. 268
(i) A tax is imposed on sports wagering gross revenue earned by a 269
sports wagering operator at the rate of nine and eighty-nine-270
hundredths per cent. The Commissioner of Revenue Services shall 271
assess and collect such tax as the commissioner may prescribe by 272
regulations adopted in accordance with the provisions of chapter 54 of 273
the general statutes. Such tax shall be due and payable each Tuesday of 274
the week. If any such tax is not paid when due, the commissioner shall 275
impose a delinquency assessment upon the sports wagering operator 276
in the amount of ten per cent of such tax or ten dollars, whichever 277
amount is greater, plus interest at the rate of one and one-half per cent 278
of the unpaid principal of such tax for each month or fraction of a 279
month from the date such tax is due to the date of payment. Subject to 280
the provisions of section 12-3a of the general statutes, the 281
commissioner may waive all or part of the penalties provided under 282
this subsection when it is proven to the commissioner's satisfaction 283
that the failure to pay such tax within the time required was due to 284
reasonable cause and was not intentional or due to neglect. Failure to 285
pay any such delinquent tax upon demand may be considered by the 286
Commissioner of Consumer Protection as cause for revocation of a 287
license to operate sports wagering. 288
(j) The amount of unclaimed moneys, as determined by the 289
Commissioner of Consumer Protection, held by a sports wagering 290
operator on account of outstanding and uncashed winning sports 291
wagering tickets, shall be due and payable to the commissioner at the 292
expiration of six months after the date of the sporting event during 293
which such tickets were issued. If any such unclaimed moneys are not 294
paid when due, the commissioner shall impose a delinquency 295
assessment upon the sports wagering operator in the amount of ten 296
per cent of such money or ten dollars, whichever amount is greater, 297
plus interest at the rate of one and one-half per cent of the unpaid 298
principal of such moneys for each month or fraction of a month from 299
the date such moneys are due to the date of payment. Subject to the 300 Raised Bill No. 7331
LCO No. 5506 11 of 21
provisions of section 12-3a of the general statutes, the commissioner 301
may waive all or part of the penalties provided under this subsection 302
when it is proven to the commissioner's satisfaction that the failure to 303
pay such moneys within the time required was due to reasonable 304
cause and was not intentional or due to neglect. 305
(k) The commissioner or the commissioner's designee may 306
authorize deputies to enter upon the premises of a sports wagering 307
operator, the Connecticut Lottery Corporation or a lottery sales agent's 308
place of business for the purposes of inspecting books and records, 309
supervising and examining cashiers, ticket sellers and other persons 310
handling money on behalf of such operator, corporation or agent. 311
(l) A sports governing body may request that the commissioner 312
restrict, limit or exclude wagering on a sporting event or events by 313
providing notice in such form and manner as the commissioner 314
prescribes. 315
(m) (1) Each sports wagering operator, the Connecticut Lottery 316
Corporation and any lottery sales agent that offers sports wagering 317
shall immediately report to the commissioner any information relating 318
to (A) criminal or disciplinary proceedings commenced against such 319
operator, corporation or agent or an employee of such operator, 320
corporation or agent in connection with its operations, (B) abnormal 321
betting activity or patterns that may indicate a concern with the 322
integrity of a sporting event, (C) any potential breach of the relevant 323
sports governing body's internal rules or codes of conduct pertaining 324
to sports wagering, (D) any other conduct that corrupts the betting 325
outcome of a sporting event for purposes of financial gain, including 326
match-fixing, and (E) suspicious or illegal wagering activities, 327
including the use of funds derived from illegal activity to place a 328
wager, the placing of a wager to conceal funds derived from illegal 329
activity, the use of an agent or a proxy to place a wager or the use of 330
false identification to place a wager. 331
(2) Such operator, corporation or agent shall also immediately 332 Raised Bill No. 7331
LCO No. 5506 12 of 21
report to the relevant sports governing body any information relating 333
to conduct described under subparagraphs (B) to (D), inclusive, of 334
subdivision (1) of this subsection. 335
(n) If the commissioner finds, after a hearing conducted pursuant to 336
chapter 54 of the general statutes, that any individual or entity 337
knowingly violates any provision of this section or any regulation 338
adopted pursuant to subsection (o) of this section, the commissioner 339
shall assess such individual or entity a civil penalty of not more than 340
fifty thousand dollars for each violation, not to exceed two hundred 341
fifty thousand dollars for multiple violations arising out of the same 342
transaction or occurrence. 343
(o) The commissioner shall adopt regulations, in accordance with 344
the provisions of chapter 54 of the general statutes, to implement the 345
provisions of this section. Such regulations shall include provisions to 346
protect the public interest in the integrity of sports wagering and 347
reduce the dangers of unsuitable, unfair or illegal practices, methods 348
and activities in the conduct of sports wagering. Such regulations shall 349
include, but need not be limited to, provisions regarding: (1) The types 350
of sporting events upon which sports wagers may be placed or 351
accepted; (2) the minimum amount of cash reserves to be maintained 352
by sports wagering operators; (3) the acceptance of wagers on a series 353
of sports events; (4) the maximum wagers which may be accepted by 354
an operator or the Connecticut Lottery Corporation from any one 355
sports bettor on any one sports event; (5) the type of wagering tickets 356
which shall be used; (6) the method of issuing tickets; (7) minimum 357
accounting standards for a sports wagering operator or the 358
corporation; (8) the types of records which shall be maintained by a 359
sports wagering operator or the corporation and available for 360
inspection upon the request of the commissioner; (9) requirements for 361
information and reports from a sports wagering operator and the 362
corporation to enable effective auditing of sports wagering operations; 363
(10) requirements for establishing and funding a sports wagering 364
account; (11) minimum qualifications for a provider of sporting events 365
data; and (12) requirements for any advertisement for sports betting to 366 Raised Bill No. 7331
LCO No. 5506 13 of 21
ensure such advertisement (A) does not target minors, problem 367
gamblers or other vulnerable individuals, (B) includes information 368
about gambling addiction or Internet web site links to resources 369
related to gambling addiction, and (C) is not false, misleading or 370
deceptive to a reasonable consumer. 371
(p) Any amounts received by the commissioner pursuant to this 372
section shall be deposited in the sports wagering account established 373
in section 2 of this act. 374
(q) The commissioner may establish receivables for the expenses to 375
be incurred by the department prior to moneys being deposited in the 376
sports wagering account established in section 2 of this act in 377
accordance with this section. Such receivables shall not exceed nine 378
hundred thousand dollars. 379
Sec. 2. (NEW) (Effective July 1, 2019) There is established an account 380
to be known as the "sports wagering account" which shall be a 381
separate, nonlapsing account within the General Fund. The account 382
shall contain any moneys required by law to be deposited in the 383
account. Moneys in the account shall be expended by the 384
Commissioner of Consumer Protection for the purposes of 385
compensating the Department of Consumer Protection for the 386
reasonable and necessary costs incurred by the department for the 387
regulatory and licensing activities specified in section 1 of this act. On 388
and after the first full fiscal year that the commissioner finds money 389
has been deposited in the sports wagering account, the commissioner 390
shall contribute one-half of one per cent of the moneys deposited in the 391
account during the previous fiscal year to the five Regional Behavioral 392
Health Action Organizations designated by the Commissioner of 393
Mental Health and Addiction Services. At the end of each fiscal year, 394
the commissioner shall transfer any money in excess of such 395
reasonable and necessary costs and such contribution to the General 396
Fund. 397
Sec. 3. Section 12-577 of the general statutes is repealed and the 398 Raised Bill No. 7331
LCO No. 5506 14 of 21
following is substituted in lieu thereof (Effective July 1, 2019): 399
The commissioner shall annually cause to be made by some 400
competent person or persons in the department a thorough audit of 401
the books and records of each association licensee under this chapter, 402
[and] each casino gaming facility and each licensed sports wagering 403
operator, as defined in section 1 of this act, and the commissioner may, 404
from time to time, cause to be made by some competent person in the 405
department a thorough audit of the books and records of any other 406
person or business organization licensed under this chapter. All such 407
audit records shall be kept on file in the commissioner's office at all 408
times. Each licensee and casino gaming facility shall permit access to 409
its books and records for the purpose of having such audit made, and 410
shall produce, upon written order of the commissioner, any documents 411
and information required for such purpose. 412
Sec. 4. Subsection (b) of section 12-811 of the general statutes is 413
repealed and the following is substituted in lieu thereof (Effective July 414
1, 2019): 415
(b) No director, officer or employee of the corporation shall, directly 416
or indirectly, participate in, or share in the winnings from, (1) a game 417
conducted pursuant to sections 12-563a and 12-800 to 12-818, inclusive, 418
or (2) sports wagering, if the corporation conducts sports wagering 419
pursuant to section 1 of this act. 420
Sec. 5. Subsection (c) of section 12-812 of the general statutes is 421
repealed and the following is substituted in lieu thereof (Effective July 422
1, 2019): 423
(c) On a weekly basis, the president shall estimate, and certify to the 424
State Treasurer, that portion of the balance in the lottery fund which 425
exceeds the current needs of the corporation for the payment of prizes, 426
the payment of current operating expenses and funding of approved 427
reserves of the corporation, [. The] and that portion of the balance that 428
is attributable to the proceeds of sports wagering, as defined in section 429
1 of this act. Upon notification of receipt of such certification by the 430 Raised Bill No. 7331
LCO No. 5506 15 of 21
Treasurer, the corporation shall transfer the amount so certified from 431
the lottery fund of the corporation to the General Fund, [upon 432
notification of receipt of such certification by the Treasurer] except that 433
the corporation shall transfer the amount attributable to the proceeds 434
of sports wagering to the sports wagering account established in 435
section 2 of this act. 436
Sec. 6. Subdivision (2) of section 53-278a of the general statutes is 437
repealed and the following is substituted in lieu thereof (Effective July 438
1, 2019): 439
(2) "Gambling" means risking any money, credit, deposit or other 440
thing of value for gain contingent in whole or in part upon lot, chance 441
or the operation of a gambling device, including the playing of a casino 442
gambling game such as blackjack, poker, craps, roulette or a slot 443
machine, but does not include: Legal contests of skill, speed, strength 444
or endurance in which awards are made only to entrants or the owners 445
of entries; legal business transactions which are valid under the law of 446
contracts; activity legal under the provisions of sections 7-169 to 7-186, 447
inclusive; any lottery or contest conducted by or under the authority of 448
any state of the United States, Commonwealth of Puerto Rico or any 449
possession or territory of the United States; and other acts or 450
transactions expressly authorized by law on or after October 1, 1973. 451
Fantasy contests, as defined in section 12-578aa, as amended by this 452
act, shall not be considered gambling, provided the conditions set forth 453
in subsection (b) of section 12-578aa, as amended by this act, have been 454
met and the operator of such contests is registered pursuant to 455
subdivision (1) of subsection (d) of section 12-578aa. Sports wagering, 456
as defined in section 1 of this act, shall not be considered gambling if 457
the conditions set forth in subsection (b) of section 1 of this act have 458
been met and the sports wagering is conducted by a sports wagering 459
operator licensed under section 1 of this act, the Connecticut Lottery 460
Corporation or a lottery sales agent licensed under section 1 of this act; 461
Sec. 7. Subdivision (4) of section 53-278a of the general statutes is 462
repealed and the following is substituted in lieu thereof (Effective July 463 Raised Bill No. 7331
LCO No. 5506 16 of 21
1, 2019): 464
(4) "Gambling device" means any device or mechanism by the 465
operation of which a right to money, credits, deposits or other things 466
of value may be created, as the result of the operation of an element of 467
chance; any device or mechanism which, when operated for a 468
consideration, does not return the same value or thing of value for the 469
same consideration upon each operation thereof; any device, 470
mechanism, furniture or fixture designed primarily for use in 471
connection with professional gambling; and any subassembly or 472
essential part designed or intended for use in connection with any 473
such device, mechanism, furniture, fixture, construction or installation, 474
provided an immediate and unrecorded right of replay mechanically 475
conferred on players of pinball machines and similar amusement 476
devices shall be presumed to be without value. "Gambling device" 477
does not include a crane game machine or device or a redemption 478
machine. A device or equipment used to play fantasy contests, as 479
defined in section 12-578aa, as amended by this act, shall not be 480
considered a gambling device, provided the conditions set forth in 481
subsection (b) of section 12-578aa, as amended by this act, have been 482
met. A device or equipment used to participate in sports wagering, as 483
defined in subsection (a) of section 1 of this act, shall not be considered 484
a gambling device if the conditions set forth in subsection (b) of section 485
1 of this act have been met; 486
Sec. 8. Section 12-561 of the general statutes is repealed and the 487
following is substituted in lieu thereof (Effective July 1, 2019): 488
No commissioner or unit head or employee of the department shall 489
directly or indirectly, individually or as a member of a partnership or 490
as a shareholder of a corporation, have any interest whatsoever in 491
dealing in any lottery, racing, fronton, betting enterprise or casino 492
gaming facility or in the ownership or leasing of any property or 493
premises used by or for any lottery, racing, fronton, betting enterprise 494
or casino gaming facility. No commissioner or unit head shall, directly 495
or indirectly, wager at any off-track betting facility, race track or 496 Raised Bill No. 7331
LCO No. 5506 17 of 21
fronton authorized under this chapter, purchase lottery tickets issued 497
under this chapter, [or] play, directly or indirectly, any authorized 498
game conducted at a casino gaming facility or place a sports wager 499
with a sports wagering operator licensed under section 1 of this act, 500
the Connecticut Lottery Corporation or a lottery sales agent licensed 501
under section 1 of this act. The commissioner may adopt regulations in 502
accordance with the provisions of chapter 54 to prohibit any employee 503
of the department from engaging, directly or indirectly, in any form of 504
legalized gambling activity in which such employee is involved 505
because of his or her employment with the department. For purposes 506
of this section, "unit head" means a managerial employee with direct 507
oversight of a legalized gambling activity. 508
Sec. 9. Section 12-810 of the general statutes is repealed and the 509
following is substituted in lieu thereof (Effective July 1, 2019): 510
(a) The Freedom of Information Act, as defined in section 1-200, 511
shall apply to all actions, meetings and records of the corporation, 512
except (1) where otherwise limited by subsection (c) of this section as 513
to new lottery games and serial numbers of unclaimed lottery tickets, 514
[and] (2) with respect to financial, credit and proprietary information 515
submitted by any person to the corporation in connection with any 516
proposal to provide goods, services or professional advice to the 517
corporation as provided in section 12-815, and (3) as provided in 518
subsection (d) of this section. 519
(b) The records of proceedings as provided in subsection (a) of 520
section 12-805 shall be subject to disclosure pursuant to the provisions 521
of subsection (a) of section 1-210. 522
(c) Any new lottery game and the procedures for such game, until 523
the game is publicly announced by the corporation, and any serial 524
number of an unclaimed lottery ticket shall not be deemed public 525
records, as defined in section 1-200, and shall not be available to the 526
public under the provisions of section 1-210. The president shall 527
submit a fiscal note prepared by the corporation with respect to the 528 Raised Bill No. 7331
LCO No. 5506 18 of 21
procedures for a new lottery game to the joint standing committees of 529
the General Assembly having cognizance of matters relating to finance, 530
revenue, bonding and public safety after approval of such game by the 531
board. 532
(d) The name and any personally identifying information of a 533
person who is participating in or has participated in the corporation's 534
sports wagering voluntary self-exclusion process established in 535
subdivision (2) of subsection (f) of section 1 of this act or subdivision 536
(2) of subsection (g) of section 1 of this act shall not be deemed public 537
records, as defined in section 1-200, and shall not be available to the 538
public under the provisions of section 1-210. The president may 539
disclose the name and any records of such person if such person claims 540
a winning from placing a sports wager. 541
Sec. 10. Subdivision (1) of subsection (a) of section 12-578f of the 542
general statutes is repealed and the following is substituted in lieu 543
thereof (Effective July 1, 2019): 544
(1) "Authorized games" means any game of chance, including, but 545
not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, 546
chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 547
beat the dealer, bouncing ball, video facsimile game and any other 548
game of chance authorized by the Commissioner of Consumer 549
Protection. "Authorized games" does not include sports wagering, as 550
defined in subsection (a) of section 1 of this act; 551
Sec. 11. Subsection (b) of section 12-578aa of the general statutes is 552
repealed and the following is substituted in lieu thereof (Effective July 553
1, 2019): 554
(b) The provisions of this section shall not be effective unless the 555
following conditions have been met: 556
(1) The Governor enters into [amendments to the Mashantucket 557
Pequot procedures and to the Mashantucket Pequot memorandum of 558
understanding with the Mashantucket Pequot Tribe and amendments 559 Raised Bill No. 7331
LCO No. 5506 19 of 21
to the Mohegan compact and to the Mohegan memorandum of 560
understanding with the Mohegan Tribe of Indians of Connecticut 561
concerning the authorization of fantasy contests in the state] tribal-562
state compacts with the Mashantucket Pequot Tribe and the Mohegan 563
Tribe of Indians of Connecticut pursuant to the federal Indian Gaming 564
Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) concerning the 565
authorization of fantasy contests. Any such tribal-state compact shall: 566
(A) Allow each tribe to offer fantasy contests on Indian lands, (B) 567
provide that the authorization of fantasy contests in this state does not 568
relieve each tribe from the tribe's obligation to contribute a percentage 569
of the gross operating revenues of video facsimile games to the state as 570
provided in the Mashantucket Pequot memorandum of understanding 571
and the Mohegan memorandum of understanding, as the case may be, 572
and (C) provide that the authorization of fantasy contests in this state 573
does not terminate the moratoria on the operation of video facsimile 574
games by the tribes pursuant to section 15(a) of the Mashantucket 575
Pequot procedures and section 15(a) of the Mohegan compact. 576
[(2) The amendments to the Mashantucket Pequot procedures and 577
the Mohegan compact shall include a provision that the authorization 578
of fantasy contests in the state does not terminate the moratorium 579
against the operation of video facsimile games by the Mashantucket 580
Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each 581
tribe's reservation. 582
(3) The amendments to each tribe's memorandum of understanding 583
shall include a provision that the authorization of fantasy contests in 584
the state does not relieve each tribe from each tribe's obligation to 585
contribute a percentage of the gross operating revenues of video 586
facsimile games to the state as provided in each tribe's memorandum 587
of understanding.] 588
[(4)] (2) The [amendments to the Mashantucket Pequot procedures, 589
the Mashantucket Pequot memorandum of understanding, the 590
Mohegan compact and the Mohegan memorandum of understanding] 591
tribal-state compacts entered into under subdivision (1) of this 592 Raised Bill No. 7331
LCO No. 5506 20 of 21
subsection are approved or deemed approved by the Secretary of the 593
United States Department of the Interior pursuant to the federal Indian 594
Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its 595
implementing regulations. If such approval is overturned by a court in 596
a final judgment, which is not appealable, the authorization for fantasy 597
contests provided under this section shall cease to be effective. 598
[(5)] (3) The [amendments to the Mashantucket Pequot procedures 599
and to the Mohegan compact] tribal-state compacts entered into under 600
subdivision (1) of this subsection are approved by the General 601
Assembly pursuant to section 3-6c. 602
[(6) The amendments to the Mashantucket Pequot memorandum of 603
understanding and to the Mohegan memorandum of understanding 604
are approved by the General Assembly pursuant to the process 605
described in section 3-6c.] 606
Sec. 12. (NEW) (Effective July 1, 2019) (a) The Commissioner of 607
Economic and Community Development shall seek partnerships with 608
professional sports leagues and governing bodies to promote sports 609
activities and economic development in this state. The commissioner 610
shall contact representatives of Major League Baseball, the Professional 611
Golfers' Association, the Ladies Professional Golf Association, the 612
National Basketball Association, the National Hockey League, the 613
National Football League, Major League Soccer, the National Women's 614
Soccer League and any other professional sports league or governing 615
body the commissioner identifies. The commissioner may consult with 616
members of the General Assembly, business leaders, municipal leaders 617
and other interested stakeholders in developing partnerships with 618
professional sports leagues or governing bodies. The commissioner 619
shall set a goal of scheduling at least three major league professional 620
sports events in the state each year, at locations that reflect the 621
geographic and demographic diversity of the state. 622
(b) Not later than July 1, 2020, and annually thereafter, the 623
commissioner shall submit a report, in accordance with the provisions 624 Raised Bill No. 7331
LCO No. 5506 21 of 21
of section 11-4a of the general statutes, to the joint standing committee 625
of the General Assembly having cognizance of matters relating to 626
public safety and security and commerce concerning the 627
commissioner's activities during the preceding year in developing 628
partnerships with professional sports leagues and governing bodies 629
and scheduling events in the state. 630
Sec. 13. Section 12-565a of the general statutes is repealed. (Effective 631
July 1, 2019) 632
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2019 New section
Sec. 2 July 1, 2019 New section
Sec. 3 July 1, 2019 12-577
Sec. 4 July 1, 2019 12-811(b)
Sec. 5 July 1, 2019 12-812(c)
Sec. 6 July 1, 2019 53-278a(2)
Sec. 7 July 1, 2019 53-278a(4)
Sec. 8 July 1, 2019 12-561
Sec. 9 July 1, 2019 12-810
Sec. 10 July 1, 2019 12-578f(a)(1)
Sec. 11 July 1, 2019 12-578aa(b)
Sec. 12 July 1, 2019 New section
Sec. 13 July 1, 2019 Repealer section
Statement of Purpose:
To authorize sports wagering in the state if certain conditions are met
and to require the Commissioner of Economic and Community
Development to seek partnerships with professional sports leagues
and governing bodies.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]