CT
Connecticut House Bill HB07331

Connecticut 2019 Regular Session

Connecticut House Bill HB07331 Compare Versions

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7-General Assembly Substitute Bill No. 7331
5+General Assembly Raised Bill No. 7331
86 January Session, 2019
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10+Referred to Committee on PUBLIC SAFETY AND SECURITY
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12+
13+Introduced by:
14+(PS)
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1419 AN ACT CONCERNING SP ORTS WAGERING IN THE STATE.
1520 Be it enacted by the Senate and House of Representatives in General
1621 Assembly convened:
1722
18-Section 1. (NEW) (Effective July 1, 2019) (a) As used in this section 1
19-and sections 2 to 6, inclusive, of this act, unless the context otherwise 2
20-requires: 3
21-(1) "Casino gaming facility" has the same meaning as provided in 4
22-section 12-557b of the general statutes; 5
23-(2) "Commissioner" means the Commissioner of Consumer 6
24-Protection; 7
25-(3) "Department" means the Department of Consumer Protection; 8
26-(4) "Electronic sports wagering platform" or "platform" means the 9
27-combination of hardware, software and data networks used to 10
28-manage, administer, offer or control sports wagering over the Internet, 11
29-including through an Internet web site or a mobile device; 12
30-(5) "Licensed sports wagering operator" means an operator licensed 13
31-by the commissioner to conduct sports wagering in person or sports 14
32-wagering on a platform; 15
33-(6) "Mashantucket Pequot memorandum of understanding" means 16 Substitute Bill No. 7331
23+Section 1. (NEW) (Effective July 1, 2019) (a) As used in this section, 1
24+unless the context otherwise requires: 2
25+(1) "Casino gaming facility" has the same meaning as provided in 3
26+section 12-557b of the general statutes; 4
27+(2) "Commissioner" means the Commissioner of Consumer 5
28+Protection; 6
29+(3) "Department" means the Department of Consumer Protection; 7
30+(4) "Electronic sports wagering platform" or "platform" means the 8
31+combination of hardware, software and data networks used by a 9
32+sports wagering operator or the Connecticut Lottery Corporation 10
33+established in section 12-802 of the general statutes, as amended by 11
34+this act, to manage, administer, offer or control sports wagering over 12
35+the Internet, including through an Internet web site or a mobile device; 13 Raised Bill No. 7331
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40-the memorandum of understanding entered into by and between the 17
41-state and the Mashantucket Pequot Tribe on January 13, 1993, as 18
42-amended from time to time; 19
43-(7) "Mashantucket Pequot procedures" means the Final 20
44-Mashantucket Pequot Gaming Procedures prescribed by the Secretary 21
45-of the United States Department of the Interior pursuant to 25 USC 22
46-2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 23
47-1991), as amended from time to time; 24
48-(8) "Minor" means an individual who is under twenty-one years of 25
49-age; 26
50-(9) "Mohegan compact" means the Tribal-State Compact entered 27
51-into by and between the state and the Mohegan Tribe of Indians of 28
52-Connecticut on May 17, 1994, as amended from time to time; 29
53-(10) "Mohegan memorandum of understanding" means the 30
54-memorandum of understanding entered into by and between the state 31
55-and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 32
56-amended from time to time; 33
57-(11) "Operator eligible to conduct sports wagering in person" means 34
58-a person or business organization operating the off-track betting 35
59-system, a limited liability company operating a casino gaming facility 36
60-that offers sports wagering and the Connecticut Lottery Corporation; 37
61-(12) "Operator eligible to conduct sports wagering on a platform" 38
62-means a limited liability company operating a casino gaming facility 39
63-that offers sports wagering, the Connecticut Lottery Corporation and 40
64-any other individual or business organization applying to the 41
65-commissioner for a license pursuant to section 4 of this act; 42
66-(13) "Sports bettor" means an individual who is not a minor and is 43
67-physically present in this state when placing a sports wager with a 44
68-licensed sports wagering operator; 45 Substitute Bill No. 7331
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41+(5) "Mashantucket Pequot memorandum of understanding" means 14
42+the memorandum of understanding entered into by and between the 15
43+state and the Mashantucket Pequot Tribe on January 13, 1993, as 16
44+amended from time to time; 17
45+(6) "Mashantucket Pequot procedures" means the Final 18
46+Mashantucket Pequot Gaming Procedures prescribed by the Secretary 19
47+of the United States Department of the Interior pursuant to Section 20
48+2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 21
49+56 Federal Register 24996 (May 31, 1991), as amended from time to 22
50+time; 23
51+(7) "Minor" means an individual who is under twenty-one years of 24
52+age; 25
53+(8) "Mohegan compact" means the Tribal-State Compact entered 26
54+into by and between the state and the Mohegan Tribe of Indians of 27
55+Connecticut on May 17, 1994, as amended from time to time; 28
56+(9) "Mohegan memorandum of understanding" means the 29
57+memorandum of understanding entered into by and between the state 30
58+and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 31
59+amended from time to time; 32
60+(10) "Sports bettor" means an individual who is not a minor and is 33
61+physically present in the state when placing a sports wager with a 34
62+sports wagering operator, the Connecticut Lottery Corporation or a 35
63+lottery sales agent licensed pursuant to this section; 36
64+(11) "Sporting event" means (A) any sporting or athletic event at 37
65+which two or more persons participate and receive compensation in 38
66+excess of actual expenses for such participation in such sporting or 39
67+athletic event, or (B) any sporting or athletic event sponsored by an 40
68+intercollegiate athletic program of an institution of higher education. 41
69+"Sporting event" does not include horse racing or any sporting or 42
70+athletic event sponsored by a minor league or high school; 43 Raised Bill No. 7331
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75-(14) "Sporting event" means (A) any sporting or athletic event at 46
76-which two or more persons participate and receive compensation in 47
77-excess of actual expenses for such participation in such sporting or 48
78-athletic event, or (B) any sporting or athletic event sponsored by an 49
79-intercollegiate athletic program of an institution of higher education. 50
80-"Sporting event" does not include horse racing, any sporting or athletic 51
81-event that involves a university or college of the state system of public 52
82-higher education, as described in section 10a-1 of the general statutes, 53
83-or an independent institution of higher education, as defined in section 54
84-10a-173 of the general statutes, or any sporting or athletic event 55
85-sponsored by a minor league or high school; 56
86-(15) "Sports governing body" means the organization that prescribes 57
87-final rules and enforces codes of conduct with respect to a sporting 58
88-event and participants in the sporting event; 59
89-(16) "Sports wagering" means risking or accepting any money, 60
90-credit, deposit or other thing of value for gain contingent in whole or 61
91-in part on (A) a sporting event or a portion or portions of a sporting 62
92-event, or (B) the individual performance statistics of an athlete or 63
93-athletes in a sporting event or a combination of sporting events. 64
94-"Sports wagering" does not include the payment of an entry fee to play 65
95-fantasy contests, as defined in section 12-578aa of the general statutes; 66
96-(17) "Sports wagering in person" means sports wagering using any 67
97-system or method of wagering requiring a sports bettor to be 68
98-physically present at a facility in this state; 69
99-(18) "Sports wagering on a platform" means sports wagering using 70
100-any system or method of wagering over the Internet, including 71
101-through an Internet web site or a mobile device, that does not require a 72
102-sports bettor to be physically present at a facility in this state that 73
103-conducts sports wagering in person; 74
104-(19) "Sports wagering gross revenue" means the amount equal to the 75
105-total amount of all wagers placed on sporting events not excluded 76 Substitute Bill No. 7331
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76+(12) "Sports governing body" means the organization that prescribes 44
77+final rules and enforces codes of conduct with respect to a sporting 45
78+event and participants in the sporting event; 46
79+(13) "Sports wagering" means risking or accepting any money, 47
80+credit, deposit or other thing of value for gain contingent in whole or 48
81+in part (A) by any system or method of wagering, including, but not 49
82+limited to, in person or over the Internet through an Internet web site 50
83+or a mobile device, and (B) based on (i) a sporting event or a portion or 51
84+portions of a sporting event, or (ii) the individual performance 52
85+statistics of an athlete or athletes in a sporting event or a combination 53
86+of sporting events. "Sports wagering" does not include the payment of 54
87+an entry fee to play fantasy contests, as defined in section 12-578aa of 55
88+the general statutes, as amended by this act; 56
89+(14) "Sports wagering gross revenue" means the amount equal to the 57
90+total amount of all wagers placed on sporting events not excluded 58
91+from sports wagering that a sports wagering operator collects from all 59
92+sports bettors, less the total amount of all sums paid out as winnings to 60
93+sports bettors, except that the cash equivalent value of any 61
94+merchandise or thing of value awarded as a prize shall not be included 62
95+in the sums paid out as winnings; and 63
96+(15) "Sports wagering operator" or "operator" means a person or 64
97+business organization operating the off-track betting system or limited 65
98+liability company operating a casino gaming facility that offers sports 66
99+wagering either in person to individuals at such facilities or through an 67
100+electronic sports wagering platform and is licensed pursuant to this 68
101+section. 69
102+(b) The provisions of this section shall not be effective unless the 70
103+following conditions have been met: 71
104+ (1) On and after the effective date of this section, the Governor 72
105+enters into new tribal-state compacts with the Mashantucket Pequot 73
106+Tribe and the Mohegan Tribe of Indians of Connecticut pursuant to the 74
107+federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) 75 Raised Bill No. 7331
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112-from sports wagering that a licensed sports wagering operator collects 77
113-from all sports bettors, less the total amount of all sums paid out as 78
114-winnings to sports bettors, except that the cash equivalent value of any 79
115-merchandise or thing of value awarded as a prize shall not be included 80
116-in the sums paid out as winnings; and 81
117-(20) "Sports wagering vendor" means a person or business 82
118-organization that develops or maintains an electronic sports wagering 83
119-platform on behalf of a licensed operator eligible to conduct sports 84
120-wagering on a platform. 85
121-Sec. 2. (NEW) (Effective July 1, 2019) (a) The provisions of this 86
122-section, sections 1 and 3 to 6, inclusive, and 15 and 20 of this act, and 87
123-sections 12-561, 12-577, 12-578f, 12-801, 12-806, 12-810, 12-811, 12-812, 88
124-12-816, 17a-713 and 53-278a of the general statutes, as amended by this 89
125-act, shall not be effective unless the following conditions have been 90
126-met: 91
127-(1) On or after the effective date of this section, the Governor enters 92
128-into new tribal-state compacts with the Mashantucket Pequot Tribe 93
129-and the Mohegan Tribe of Indians of Connecticut pursuant to the 94
130-federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) 95
131-concerning the authorization of sports wagering that: (A) Allows each 96
132-tribe to offer sports wagering on Indian lands and through an 97
133-electronic sports wagering platform, (B) provides that the 98
134-authorization of sports wagering in person and through an electronic 99
135-sports wagering platform in this state does not relieve each tribe from 100
136-the tribe's obligation to contribute a percentage of the gross operating 101
137-revenues of video facsimile games to the state as provided in the 102
138-Mashantucket Pequot memorandum of understanding and the 103
139-Mohegan memorandum of understanding, as the case may be, and (C) 104
140-provides that the authorization of sports wagering in person and 105
141-through an electronic sports wagering platform in this state does not 106
142-terminate the moratoria on the operation of video facsimile games by 107
143-the tribes pursuant to section 15(a) of the Mashantucket Pequot 108
144-procedures and section 15(a) of the Mohegan compact. 109 Substitute Bill No. 7331
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113+concerning the authorization of sports wagering. Any such tribal-state 76
114+compact shall: (A) Allow each tribe to offer sports wagering on Indian 77
115+lands, (B) provide that the authorization of sports wagering in this 78
116+state does not relieve each tribe from the tribe's obligation to contribute 79
117+a percentage of the gross operating revenues of video facsimile games 80
118+to the state as provided in the Mashantucket Pequot memorandum of 81
119+understanding and the Mohegan memorandum of understanding, as 82
120+the case may be, and (C) provide that the authorization of sports 83
121+wagering in this state does not terminate the moratoria on the 84
122+operation of video facsimile games by the tribes pursuant to section 85
123+15(a) of the Mashantucket Pequot procedures and section 15(a) of the 86
124+Mohegan compact. 87
125+(2) The new tribal-state compacts are approved or deemed 88
126+approved by the Secretary of the United States Department of the 89
127+Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 90
128+100-497, 25 USC 2701 et seq., and its implementing regulations. If such 91
129+approval is overturned by a court in a final judgment, which is not 92
130+appealable, the authorization for sports wagering provided under this 93
131+section shall cease to be effective. 94
132+(3) The new tribal-state compacts are approved by the General 95
133+Assembly pursuant to section 3-6c of the general statutes. 96
134+(c) (1) On and after the date this section becomes effective pursuant 97
135+to subsection (b) of this section, the Commissioner of Consumer 98
136+Protection may issue a license to operate sports wagering, a sports 99
137+wagering vendor license or a sports wagering lottery sales agent 100
138+license, as applicable, in accordance with this section. 101
139+(2) No person or business organization operating the off-track 102
140+betting system, limited liability company operating a casino gaming 103
141+facility or the Connecticut Lottery Corporation may offer sports 104
142+wagering unless such person, business organization, limited liability 105
143+company or corporation has obtained a license to operate sports 106
144+wagering issued by the commissioner pursuant to this section. 107 Raised Bill No. 7331
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151-(2) The new tribal-state compacts are approved or deemed 110
152-approved by the Secretary of the United States Department of the 111
153-Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 112
154-100-497, 25 USC 2701 et seq., and its implementing regulations. If such 113
155-approval is overturned by a court in a final judgment, which is not 114
156-appealable, the authorization for sports wagering provided under this 115
157-section shall cease to be effective. 116
158-(3) The new tribal-state compacts are approved by the General 117
159-Assembly pursuant to section 3-6c of the general statutes. 118
160-(b) On and after July 1, 2019, the commissioner may issue licenses to 119
161-operate sports wagering in person, licenses to operate sports wagering 120
162-on a platform, and sports wagering vendor licenses, as applicable, in 121
163-accordance with sections 3 and 4 of this act. 122
164-Sec. 3. (NEW) (Effective July 1, 2019) (a) No person may conduct 123
165-sports wagering in person in this state unless the person is an operator 124
166-eligible to conduct sports wagering in person and such operator has 125
167-obtained a license from the commissioner pursuant to this section. 126
168-(b) (1) Each applicant for a license pursuant to this section shall 127
169-submit a completed application on forms prescribed by the 128
170-commissioner. Such application may require the applicant to submit 129
171-any information the commissioner deems pertinent to the issuance of 130
172-such license. Each applicant, except the Connecticut Lottery 131
173-Corporation, shall submit to state and national criminal history records 132
174-checks, conducted in accordance with section 29-17a of the general 133
175-statutes, before such license is issued. 134
176-(2) Each applicant for a license to operate sports wagering in person 135
177-shall submit with its application a nonrefundable application fee of 136
178-one hundred thousand dollars. Except as provided in subsection (c) of 137
179-this section, each such license shall expire biennially on the 138
180-anniversary date of the issuance of such license unless renewed in 139
181-accordance with this section. The nonrefundable application fee for 140 Substitute Bill No. 7331
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150+(3) No person or business organization may develop an electronic 108
151+sports wagering platform on behalf of a sports wagering operator or 109
152+the Connecticut Lottery Corporation unless such person or business 110
153+organization holds a sports wagering vendor license issued by the 111
154+commissioner pursuant to this section. 112
155+(4) No lottery sales agent may offer sports wagering at such agent's 113
156+place of business unless such agent holds a sports wagering lottery 114
157+sales agent license issued by the commissioner pursuant to this section. 115
158+(d) (1) Each applicant for a license pursuant to this section shall 116
159+submit a completed application on forms prescribe d by the 117
160+commissioner. Such application may require the applicant to submit 118
161+any information the commissioner deems pertinent to the issuance of 119
162+such license. Each applicant, except the Connecticut Lottery 120
163+Corporation, shall submit to state and national criminal history records 121
164+checks, conducted in accordance with section 29-17a of the general 122
165+statutes, before such license is issued. 123
166+(2) Each applicant for a license to operate sports wagering shall 124
167+submit with its application a nonrefundable application fee of one 125
168+hundred thousand dollars. Except as provided in subsection (e) of this 126
169+section, each such license shall expire biennially on the anniversary 127
170+date of the issuance of such license unless renewed in accordance with 128
171+this section. The nonrefundable application fee for such renewal shall 129
172+be one hundred thousand dollars. Upon the issuance or renewal of a 130
173+license, the licensee shall pay a licensing fee of five hundred thousand 131
174+dollars to the commissioner. The Connecticut Lottery Corporation 132
175+shall be exempt from the application fee, renewal application fee and 133
176+licensing fee for a license to operate sports wagering. 134
177+(3) Each applicant for a sports wagering vendor license shall submit 135
178+with its application a nonrefundable application fee of one hundred 136
179+thousand dollars. Except as provided in subsection (e) of this section, 137
180+each such license shall expire biennially on the anniversary date of the 138
181+issuance of such license unless renewed in accordance with this 139 Raised Bill No. 7331
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188-such renewal shall be one hundred thousand dollars. Upon the 141
189-issuance or renewal of a license, the licensee shall pay a licensing fee of 142
190-seven hundred fifty thousand dollars to the commissioner. The 143
191-Connecticut Lottery Corporation shall be exempt from the application 144
192-fee, renewal application fee and licensing fee for a license to operate 145
193-sports wagering in person. 146
194-(3) If licensed pursuant to this section, (A) a person or business 147
195-organization operating the off-track betting system may conduct sports 148
196-wagering in person at any of the system facilities authorized for off-149
197-track betting under section 12-571a of the general statutes, and (B) the 150
198-Connecticut Lottery Corporation may conduct sports wagering in 151
199-person at no more than four high tier claim centers, as designated by 152
200-the corporation. 153
201-(4) Applications for renewal of any such license shall be on such 154
202-form as prescribed by the commissioner. 155
203-(c) (1) The commissioner shall, as soon as practicable after the 156
204-receipt of a completed license or renewal application, grant or deny the 157
205-license or renewal application. Any holder of a license issued pursuant 158
206-to this section who submits an application to renew such license prior 159
207-to the expiration of such license may continue to perform the activities 160
208-authorized by such license until the commissioner approves or denies 161
209-such renewal application. 162
210-(2) Failure by any operator eligible to conduct sports wagering in 163
211-person that holds a license pursuant to this section or any off-track 164
212-betting facility or high tier claim center to comply with the 165
213-requirements of this section and any regulations adopted pursuant to 166
214-section 5 of this act shall constitute grounds for the commissioner to 167
215-investigate such licensee or facility. A violation of the provisions of 168
216-section 4 of this act by an operator eligible to conduct sports wagering 169
217-in person that is licensed pursuant to this section and section 4 of this 170
218-act shall constitute grounds for an investigation. After a hearing held 171
219-in accordance with the provisions of chapter 54 of the general statutes, 172 Substitute Bill No. 7331
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187+section. The nonrefundable application fee for such renewal shall be 140
188+one hundred thousand dollars. Upon the issuance or renewal of a 141
189+license, the licensee shall pay a licensing fee of three hundred thousand 142
190+dollars to the commissioner. 143
191+(4) Except as provided in subsection (e) of this section, each sports 144
192+wagering lottery agent license shall be renewed biennially. Upon the 145
193+issuance or renewal of such license, the licensee shall pay a licensing 146
194+fee of two hundred fifty dollars to the commissioner. 147
195+(5) Applications for renewal of any such license shall be on such 148
196+form as prescribed by the commissioner. 149
197+(e) (1) The commissioner shall, as soon as practicable after the 150
198+receipt of a completed license or renewal application, grant or deny the 151
199+license or renewal application. Any holder of a license issued pursuant 152
200+to this section who submits an application to renew such license prior 153
201+to the expiration of such license may continue to perform the activities 154
202+authorized by such license until the commissioner approves or denies 155
203+such renewal application. 156
204+(2) Failure by any person or business organization, limited liability 157
205+company or corporation that holds a license pursuant to this section or 158
206+any off-track betting facility to comply with the requirements of this 159
207+section and any regulations adopted pursuant to this section shall 160
208+constitute grounds for the commissioner to investigate such licensee or 161
209+facility and after a hearing held in accordance with the provisions of 162
210+chapter 54 of the general statutes, suspend or revoke such license for 163
211+good cause or suspend operations at such facility and impose a civil 164
212+penalty of not more than two hundred fifty thousand dollars. Any 165
213+licensee whose license is suspended or revoked or who is fined, any 166
214+facility whose sports wagering operations are suspended or that is 167
215+fined, or any applicant aggrieved by the action of the commissioner 168
216+concerning an application for a license or renewal application, may 169
217+appeal in accordance with the provisions of said chapter. 170
218+(f) (1) If licensed under subsection (e) of this section, a sports 171 Raised Bill No. 7331
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226-the commissioner may suspend or revoke such license for good cause 173
227-or suspend operations at such facility and impose a civil penalty of not 174
228-more than two hundred fifty thousand dollars. Any licensee whose 175
229-license is suspended or revoked or who is fined, any facility whose 176
230-sports wagering in person operations are suspended or that is fined, or 177
231-any applicant aggrieved by the action of the commissioner concerning 178
232-an application for a license or renewal application, may appeal in 179
233-accordance with the provisions of chapter 54 of the general statutes. 180
234-Sec. 4. (NEW) (Effective July 1, 2019) (a) No person may conduct 181
235-sports wagering on a platform unless the person is an operator eligible 182
236-to conduct sports wagering on a platform and such operator has 183
237-obtained a license pursuant to this section. 184
238-(b) (1) A limited liability company operating a casino gaming 185
239-facility that offers sports wagering and the Connecticut Lottery 186
240-Corporation may submit an application for a license pursuant to this 187
241-section. Such application may require the submission of information 188
242-listed in subdivisions (2) to (7), inclusive, of subsection (d) of this 189
243-section, and any information the commissioner deems pertinent to the 190
244-issuance of such license. Such license shall expire biennially on the 191
245-anniversary date of the issuance of such license unless renewed in 192
246-accordance with subsection (j) of this section. 193
247-(2) Each applicant, except the Connecticut Lottery Corporation, shall 194
248-submit to state and national criminal history records checks, conducted 195
249-in accordance with section 29-17a of the general statutes, and submit a 196
250-nonrefundable application fee of one hundred thousand dollars, before 197
251-such license is issued. Upon the issuance or renewal of a license, the 198
252-licensee, except the Connecticut Lottery Corporation, shall pay a 199
253-licensing fee of seven hundred fifty thousand dollars to the 200
254-commissioner. 201
255-(c) Not later than sixty days after the conditions specified in section 202
256-2 of this act have been met, the commissioner shall develop and issue a 203
257-request for proposals to qualify individuals or businesses for up to 204 Substitute Bill No. 7331
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224+wagering operator or the Connecticut Lottery Corporation may offer 172
225+sports wagering through an electronic sports wagering platform to 173
226+individuals physically located in this state when placing a sports 174
227+wager. Such operator or corporation may establish its own platform or 175
228+may contract with a third party for the development of a platform on 176
229+behalf of the operator or corporation, provided such third party holds 177
230+a sports wagering vendor license issued by the commissioner pursuant 178
231+to this section. 179
232+(2) At a minimum, each electronic sports wagering platform shall be 180
233+developed to: (A) Verify that an individual with a sports wagering 181
234+account is twenty-one years of age or older and is located in the state; 182
235+(B) establish a voluntary self-exclusion process to allow an individual 183
236+to exclude himself or herself from placing sports wagers; (C) establish 184
237+a voluntary process to allow an individual to limit the amount of 185
238+money such individual may use to place sports wagers; (D) provide a 186
239+mechanism to prevent an individual who (i) participates in the self-187
240+exclusion process from placing sports wagers, or (ii) limits the amount 188
241+of money such individual may use to place sports wagers from 189
242+exceeding such limits; (E) permit an individual to permanently close 190
243+his or her sports wagering account at any time and for any reason; (F) 191
244+prominently display introductory procedures for sports bettors on the 192
245+main page of the platform that explain sports wagering; (G) offer an 193
246+individual access to his or her sports wagering account history and 194
247+details; (H) provide that any money in a sports wagering account 195
248+belongs solely to the owner of the account and may be withdrawn by 196
249+the owner at any time; (I) provide a mechanism to prevent the 197
250+unauthorized use of sports wagering accounts and maintain the 198
251+security of wagering data, sport bettor's data and other confidential 199
252+information; (J) post a conspicuous link to responsible gambling 200
253+information, as specified by the commissioner, on all sports wagering 201
254+account web pages; and (K) transmit real-time information regarding 202
255+sports wagers placed on sporting events. 203
256+(3) Prior to placing wagers on an electronic sports wagering 204
257+platform, a sports bettor shall establish a sports wagering account in 205 Raised Bill No. 7331
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264-three additional licenses to develop, manage, operate and maintain 205
265-sports wagering on a platform in this state. 206
266-(d) The request for proposals shall require a responder to: 207
267-(1) Specify the amount the responder is willing to pay to obtain a 208
268-license, which shall be no less than seven hundred fifty thousand 209
269-dollars; 210
270-(2) Specify the number of employees and physical office locations 211
271-the respondent has or will have in this state to ensure the proper 212
272-operation of sports wagering on a platform; 213
273-(3) Describe the electronic sports wagering platform to be used; 214
274-(4) Describe the types and numbers of sporting events the responder 215
275-will offer for sports wagering in this state; 216
276-(5) Provide a market analysis detailing the impact on and benefits to 217
277-the state if the responder receives a license, including projected 218
278-revenue to the state; 219
279-(6) Provide information and documentation to demonstrate that the 220
280-responder has sufficient business ability, experience and financial 221
281-stability to develop, manage, operate and maintain sports wagering on 222
282-an electronic platform in this state; 223
283-(7) Describe the methods used to ensure the integrity of the platform 224
284-and security controls to be used regarding the (A) sports data acquired 225
285-to determine the results of sports wagers, (B) sports bettor data, and 226
286-(C) sports bettor verification of age and presence in the state; 227
287-(8) Provide a responsible gaming plan associated with the operation 228
288-of sports wagering; and 229
289-(9) Provide any other information the commissioner deems 230
290-necessary to evaluate the qualifications of the responder. 231 Substitute Bill No. 7331
261+LCO No. 5506 8 of 21
262+
263+person at the casino gaming facility, off-track betting facility, central 206
264+office of the Connecticut Lottery Corporation or any high tier claim 207
265+center so designated by the corporation, as the case may be, and 208
266+present at least two forms of identification at the time of establishing 209
267+the sports wagering account. 210
268+(g) Each sports wagering operator, the Connecticut Lottery 211
269+Corporation and a lottery sales agent offering sports wagering shall: 212
270+(1) Verify that a sports bettor is at least twenty-one years of age; 213
271+(2) Allow any individual to exclude himself or herself from placing 214
272+sports wagers or limit the amount of money such individual may use 215
273+to place sports wagers with an operator, corporation or lottery sales 216
274+agent, and the operator, corporation or lottery sales agent that has been 217
275+notified by such individual of such exclusion or limit shall take 218
276+reasonable steps to prevent such individual from placing sports 219
277+wagers or exceeding such limit, as the case may be; 220
278+(3) Enter into an agreement with a provider of sporting event data 221
279+that meets or exceeds the minimum qualifications as set forth in 222
280+regulations adopted by the commissioner pursuant to subsection (p) of 223
281+this section; 224
282+(4) Report any suspicion of abnormal betting activity to the 225
283+commissioner for immediate investigation by the commissioner; 226
284+(5) Maintain the security of wagering data, customer data and other 227
285+confidential information to prevent unauthorized access to and 228
286+dissemination of such data and information; and 229
287+(6) Share records in real time, at the account level and in 230
288+pseudonymous form to the department with respect to sports wagers 231
289+placed with such operator, corporation or lottery sales agent. 232
290+(h) (1) No individual who is a licensed sports wagering operator or 233
291+sports wagering vendor, an officer, director, owner or employee of a 234
292+sports wagering operator or sports wagering vendor, and no family 235 Raised Bill No. 7331
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297-(e) Each proposal shall be submitted not later than thirty days after 232
298-the date the commissioner issues the request for proposals pursuant to 233
299-subsection (c) of this section. Each proposal shall be accompanied by a 234
300-fee of one hundred thousand dollars, which shall be refundable if the 235
301-responder is (1) not selected by the commissioner to receive a license, 236
302-and (2) waives the right to challenge the commissioner's decision. 237
303-(f) The commissioner shall develop selection criteria and a scoring 238
304-method to evaluate responses to the request for proposals. Of those 239
305-deemed qualified under the selection criteria and scoring method, the 240
306-commissioner shall rank the responders based on the licensing fee each 241
307-offered to pay in the responder's proposal, from highest to lowest. The 242
308-commissioner shall issue a license to the qualified responder who 243
309-offered to pay the highest licensing fee. The licensing fee paid by the 244
310-first qualified responder accepting a license from the commissioner 245
311-shall establish the licensing fee that the commissioner shall offer to 246
312-additional qualified responders. The commissioner shall issue 247
313-additional licenses using the ranked list of qualified responders, 248
314-issuing the first such license to the highest ranked responder and 249
315-proceeding through the list, from highest to lowest, until the 250
316-commissioner has issued not more than two additional licenses. The 251
317-commissioner shall not issue more than three licenses under this 252
318-process and shall not issue a license for a fee of less than seven 253
319-hundred fifty thousand dollars. 254
320-(g) A license issued pursuant to subsection (f) of this section shall 255
321-expire two years after issuance, but the commissioner may extend a 256
322-license for an additional two years upon renegotiation of the licensing 257
323-fee established through the process described under subsection (f) of 258
324-this section. 259
325-(h) The commissioner may initiate additional requests for proposals 260
326-to issue licenses pursuant to this section if the commissioner does not 261
327-issue three licenses pursuant to subsection (e) of this section or a 262
328-license expires pursuant to subsection (g) of this section. If the 263
329-commissioner does not issue or renew a license to a limited liability 264 Substitute Bill No. 7331
296+LCO No. 5506 9 of 21
297+
298+member of such individual who resides in the same household as such 236
299+individual, shall place any wager with a sports wagering operator, the 237
300+Connecticut Lottery Corporation or any lottery sales agent. 238
301+(2) No athlete, coach, referee, team owner, employee of a sports 239
302+governing body, employee of a sports governing body's member 240
303+teams, or personnel of any bargaining unit of a sports governing 241
304+body's athletes or referees, shall place any wager on any sporting event 242
305+overseen by such governing body. In determining which individuals 243
306+are prohibited from placing a wager under this subdivision, a sports 244
307+wagering operator and the Connecticut Lottery Corporation shall use 245
308+publicly available information and any lists provided by the relevant 246
309+sports governing body to the Department of Consumer Protection. 247
310+(3) No individual with access to nonpublic, confidential information 248
311+that could affect the outcome of a sporting event shall place any wager 249
312+on such sporting event with any sports wagering operator, the 250
313+Connecticut Lottery Corporation or any lottery sales agent. 251
314+(4) No individual shall place any sports wager pursuant to this 252
315+section as an agent or a proxy for another individual. 253
316+(5) Each sports wagering operator, the Connecticut Lottery 254
317+Corporation and each licensed sports wagering lottery sales agent shall 255
318+take reasonable steps to prevent the conduct prohibited under 256
319+subdivisions (1) to (4), inclusive, of this subsection and shall 257
320+immediately notify the commissioner if such operator, corporation or 258
321+agent believes such conduct has occurred. 259
322+(6) A sports wagering operator, the Connecticut Lottery 260
323+Corporation, a lottery sales agent and a sports wagering vendor 261
324+licensee shall not disclose or sell any sports bettor's information. 262
325+Records that directly or indirectly identify a sports bettor shall be kept 263
326+confidential and shall not be disclosed. 264
327+(7) No prizes shall be paid to any individual who is restricted from 265
328+placing sports wagers pursuant to this subsection. Any such prize shall 266 Raised Bill No. 7331
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336-company operating a casino gaming facility that offers sports wagering 265
337-or the Connecticut Lottery Corporation, the commissioner may initiate 266
338-a request for proposal to issue a license in place of the license or 267
339-licenses not issued or renewed. 268
340-(i) (1) No person or business organization may develop an electronic 269
341-sports wagering platform on behalf of a licensed operator eligible to 270
342-conduct sports wagering on a platform unless such person or business 271
343-organization holds a sports wagering vendor license issued by the 272
344-commissioner pursuant to this subsection. 273
345-(2) Each applicant for a sports wagering vendor license shall submit 274
346-with its application a nonrefundable application fee of one hundred 275
347-thousand dollars. Except as provided in subsection (j) of this section, 276
348-each such license shall expire biennially on the anniversary date of the 277
349-issuance of such license unless renewed in accordance with this 278
350-section. The nonrefundable application fee for such renewal shall be 279
351-one hundred thousand dollars. Upon the issuance or renewal of a 280
352-license, the licensee shall pay a licensing fee of three hundred thousand 281
353-dollars to the commissioner. 282
354-(3) Applications for renewal of any such license shall be on such 283
355-form as prescribed by the commissioner. 284
356-(j) (1) The commissioner shall, as soon as practicable after the receipt 285
357-of a completed license or renewal application, grant or deny the license 286
358-or renewal application. Any holder of a license issued pursuant to this 287
359-section who submits an application to renew such license prior to the 288
360-expiration of such license may continue to perform the activities 289
361-authorized by such license until the commissioner approves or denies 290
362-such renewal application. 291
363-(2) Failure by any operator eligible to conduct sports wagering on a 292
364-platform that holds a license pursuant to this section to comply with 293
365-the provisions of this section and any regulations adopted pursuant to 294
366-section 5 of this act shall constitute grounds for the commissioner to 295 Substitute Bill No. 7331
332+LCO No. 5506 10 of 21
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334+be deposited into the sports wagering account established in section 2 267
335+of this act. 268
336+(i) A tax is imposed on sports wagering gross revenue earned by a 269
337+sports wagering operator at the rate of nine and eighty-nine-270
338+hundredths per cent. The Commissioner of Revenue Services shall 271
339+assess and collect such tax as the commissioner may prescribe by 272
340+regulations adopted in accordance with the provisions of chapter 54 of 273
341+the general statutes. Such tax shall be due and payable each Tuesday of 274
342+the week. If any such tax is not paid when due, the commissioner shall 275
343+impose a delinquency assessment upon the sports wagering operator 276
344+in the amount of ten per cent of such tax or ten dollars, whichever 277
345+amount is greater, plus interest at the rate of one and one-half per cent 278
346+of the unpaid principal of such tax for each month or fraction of a 279
347+month from the date such tax is due to the date of payment. Subject to 280
348+the provisions of section 12-3a of the general statutes, the 281
349+commissioner may waive all or part of the penalties provided under 282
350+this subsection when it is proven to the commissioner's satisfaction 283
351+that the failure to pay such tax within the time required was due to 284
352+reasonable cause and was not intentional or due to neglect. Failure to 285
353+pay any such delinquent tax upon demand may be considered by the 286
354+Commissioner of Consumer Protection as cause for revocation of a 287
355+license to operate sports wagering. 288
356+(j) The amount of unclaimed moneys, as determined by the 289
357+Commissioner of Consumer Protection, held by a sports wagering 290
358+operator on account of outstanding and uncashed winning sports 291
359+wagering tickets, shall be due and payable to the commissioner at the 292
360+expiration of six months after the date of the sporting event during 293
361+which such tickets were issued. If any such unclaimed moneys are not 294
362+paid when due, the commissioner shall impose a delinquency 295
363+assessment upon the sports wagering operator in the amount of ten 296
364+per cent of such money or ten dollars, whichever amount is greater, 297
365+plus interest at the rate of one and one-half per cent of the unpaid 298
366+principal of such moneys for each month or fraction of a month from 299
367+the date such moneys are due to the date of payment. Subject to the 300 Raised Bill No. 7331
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373-investigate such licensee. A violation of the provisions of section 3 of 296
374-this act by an operator eligible to conduct sports wagering on a 297
375-platform that is licensed pursuant to section 3 of this act and this 298
376-section shall constitute grounds for an investigation. After a hearing 299
377-held in accordance with the provisions of chapter 54 of the general 300
378-statutes, the commissioner may suspend or revoke such license for 301
379-good cause and impose a civil penalty of not more than two hundred 302
380-fifty thousand dollars. Any licensee whose license is suspended or 303
381-revoked or who is fined or any applicant aggrieved by the action of the 304
382-commissioner concerning an application for a license or renewal 305
383-application, may appeal in accordance with the provisions of chapter 306
384-54 of the general statutes. 307
385-Sec. 5. (NEW) (Effective July 1, 2019) (a) Each licensed sports 308
386-wagering operator shall: 309
387-(1) Verify that a sports bettor is at least twenty-one years of age; 310
388-(2) Allow any individual to exclude himself or herself from placing 311
389-sports wagers or limit the amount of money such individual may use 312
390-to place sports wagers with an operator, and, on and after the date the 313
391-operator is notified by such individual of such exclusion or limit, shall 314
392-take reasonable steps to prevent such individual from placing sports 315
393-wagers or exceeding such limit, as the case may be; 316
394-(3) Enter into an agreement with a provider of sporting event data 317
395-that meets or exceeds the minimum qualifications set forth in 318
396-regulations adopted by the commissioner pursuant to subsection (i) of 319
397-this section; 320
398-(4) Report any suspicion of abnormal betting activity to the 321
399-commissioner for immediate investigation by the commissioner; 322
400-(5) Maintain the security of wagering data, sports bettor data and 323
401-other confidential information to prevent unauthorized access to and 324
402-dissemination of such data and information; and 325 Substitute Bill No. 7331
371+LCO No. 5506 11 of 21
372+
373+provisions of section 12-3a of the general statutes, the commissioner 301
374+may waive all or part of the penalties provided under this subsection 302
375+when it is proven to the commissioner's satisfaction that the failure to 303
376+pay such moneys within the time required was due to reasonable 304
377+cause and was not intentional or due to neglect. 305
378+ (k) The commissioner or the commissioner's designee may 306
379+authorize deputies to enter upon the premises of a sports wagering 307
380+operator, the Connecticut Lottery Corporation or a lottery sales agent's 308
381+place of business for the purposes of inspecting books and records, 309
382+supervising and examining cashiers, ticket sellers and other persons 310
383+handling money on behalf of such operator, corporation or agent. 311
384+(l) A sports governing body may request that the commissioner 312
385+restrict, limit or exclude wagering on a sporting event or events by 313
386+providing notice in such form and manner as the commissioner 314
387+prescribes. 315
388+(m) (1) Each sports wagering operator, the Connecticut Lottery 316
389+Corporation and any lottery sales agent that offers sports wagering 317
390+shall immediately report to the commissioner any information relating 318
391+to (A) criminal or disciplinary proceedings commenced against such 319
392+operator, corporation or agent or an employee of such operator, 320
393+corporation or agent in connection with its operations, (B) abnormal 321
394+betting activity or patterns that may indicate a concern with the 322
395+integrity of a sporting event, (C) any potential breach of the relevant 323
396+sports governing body's internal rules or codes of conduct pertaining 324
397+to sports wagering, (D) any other conduct that corrupts the betting 325
398+outcome of a sporting event for purposes of financial gain, including 326
399+match-fixing, and (E) suspicious or illegal wagering activities, 327
400+including the use of funds derived from illegal activity to place a 328
401+wager, the placing of a wager to conceal funds derived from illegal 329
402+activity, the use of an agent or a proxy to place a wager or the use of 330
403+false identification to place a wager. 331
404+(2) Such operator, corporation or agent shall also immediately 332 Raised Bill No. 7331
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409-(6) Share records in real time, at the account level and in 326
410-pseudonymous form, to the department with respect to sports wagers 327
411-placed with such operator. 328
412-(b) (1) No individual who is a licensed sports wagering operator or 329
413-sports wagering vendor, an officer, director, owner or employee of a 330
414-sports wagering operator or sports wagering vendor, and no family 331
415-member of such individual who resides in the same household as such 332
416-individual, shall place any wager with a licensed sports wagering 333
417-operator. 334
418-(2) No athlete, coach, referee, team owner, employee of a sports 335
419-governing body, employee of a sports governing body's member 336
420-teams, or personnel of any bargaining unit of a sports governing 337
421-body's athletes or referees, shall place any wager on any sporting event 338
422-overseen by such governing body. In determining which individuals 339
423-are prohibited from placing a wager under this subdivision, a licensed 340
424-sports wagering operator shall use publicly available information and 341
425-any lists provided by the relevant sports governing body to the 342
426-commissioner. 343
427-(3) No individual with access to nonpublic, confidential information 344
428-that could affect the outcome of a sporting event shall place any wager 345
429-on such sporting event with any licensed sports wagering operator. 346
430-(4) No individual shall place any sports wager pursuant to this 347
431-section as an agent or a proxy for another individual. 348
432-(5) Each licensed sports wagering operator shall take reasonable 349
433-steps to prevent the conduct prohibited under subdivisions (1) to (4), 350
434-inclusive, of this subsection and shall immediately notify the 351
435-commissioner if such operator believes such conduct has occurred. 352
436-(6) A licensed sports wagering operator and a licensed sports 353
437-wagering vendor shall not disclose or sell any sports bettor's 354
438-information. Records that directly or indirectly identify a sports bettor 355
439-shall be kept confidential and shall not be disclosed. 356 Substitute Bill No. 7331
408+LCO No. 5506 12 of 21
409+
410+report to the relevant sports governing body any information relating 333
411+to conduct described under subparagraphs (B) to (D), inclusive, of 334
412+subdivision (1) of this subsection. 335
413+(n) If the commissioner finds, after a hearing conducted pursuant to 336
414+chapter 54 of the general statutes, that any individual or entity 337
415+knowingly violates any provision of this section or any regulation 338
416+adopted pursuant to subsection (o) of this section, the commissioner 339
417+shall assess such individual or entity a civil penalty of not more than 340
418+fifty thousand dollars for each violation, not to exceed two hundred 341
419+fifty thousand dollars for multiple violations arising out of the same 342
420+transaction or occurrence. 343
421+(o) The commissioner shall adopt regulations, in accordance with 344
422+the provisions of chapter 54 of the general statutes, to implement the 345
423+provisions of this section. Such regulations shall include provisions to 346
424+protect the public interest in the integrity of sports wagering and 347
425+reduce the dangers of unsuitable, unfair or illegal practices, methods 348
426+and activities in the conduct of sports wagering. Such regulations shall 349
427+include, but need not be limited to, provisions regarding: (1) The types 350
428+of sporting events upon which sports wagers may be placed or 351
429+accepted; (2) the minimum amount of cash reserves to be maintained 352
430+by sports wagering operators; (3) the acceptance of wagers on a series 353
431+of sports events; (4) the maximum wagers which may be accepted by 354
432+an operator or the Connecticut Lottery Corporation from any one 355
433+sports bettor on any one sports event; (5) the type of wagering tickets 356
434+which shall be used; (6) the method of issuing tickets; (7) minimum 357
435+accounting standards for a sports wagering operator or the 358
436+corporation; (8) the types of records which shall be maintained by a 359
437+sports wagering operator or the corporation and available for 360
438+inspection upon the request of the commissioner; (9) requirements for 361
439+information and reports from a sports wagering operator and the 362
440+corporation to enable effective auditing of sports wagering operations; 363
441+(10) requirements for establishing and funding a sports wagering 364
442+account; (11) minimum qualifications for a provider of sporting events 365
443+data; and (12) requirements for any advertisement for sports betting to 366 Raised Bill No. 7331
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446-(7) No prizes shall be paid to any individual who is restricted from 357
447-placing sports wagers pursuant to this subsection. Any such prize shall 358
448-be deposited into the sports wagering account established in section 6 359
449-of this act. 360
450-(c) Except as provided in section 12-816 of the general statutes, as 361
451-amended by this act, a tax is imposed on sports wagering gross 362
452-revenue earned by a licensed sports wagering operator at the rate of 363
453-ten per cent. The Commissioner of Revenue Services shall assess and 364
454-collect such tax as the commissioner may prescribe by regulations 365
455-adopted in accordance with the provisions of chapter 54 of the general 366
456-statutes. The commissioner shall deposit the tax collected pursuant to 367
457-this section in the sports wagering account established by section 6 of 368
458-this act. Such tax shall be due and payable each Tuesday of the week. If 369
459-any such tax is not paid when due, the commissioner shall impose a 370
460-delinquency assessment upon the licensed sports wagering operator in 371
461-the amount of ten per cent of such tax or ten dollars, whichever 372
462-amount is greater, plus interest at the rate of one and one-half per cent 373
463-of the unpaid principal of such tax for each month or fraction of a 374
464-month from the date such tax is due to the date of payment. Subject to 375
465-the provisions of section 12-3a of the general statutes, the 376
466-commissioner may waive all or part of the penalties provided under 377
467-this subsection when it is proven to the commissioner's satisfaction 378
468-that the failure to pay such tax within the time required was due to 379
469-reasonable cause and was not intentional or due to neglect. Failure to 380
470-pay any such delinquent tax upon demand may be considered by the 381
471-Commissioner of Consumer Protection as cause for revocation of a 382
472-license to operate sports wagering. 383
473-(d) The amount of unclaimed moneys, as determined by the 384
474-Commissioner of Consumer Protection, held by a licensed sports 385
475-wagering operator on account of outstanding and uncashed winning 386
476-sports wagering tickets, shall be due and payable to the commissioner 387
477-at the expiration of six months after the date of the sporting event 388
478-during which such tickets were issued. If any such unclaimed moneys 389 Substitute Bill No. 7331
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448+
449+ensure such advertisement (A) does not target minors, problem 367
450+gamblers or other vulnerable individuals, (B) includes information 368
451+about gambling addiction or Internet web site links to resources 369
452+related to gambling addiction, and (C) is not false, misleading or 370
453+deceptive to a reasonable consumer. 371
454+(p) Any amounts received by the commissioner pursuant to this 372
455+section shall be deposited in the sports wagering account established 373
456+in section 2 of this act. 374
457+(q) The commissioner may establish receivables for the expenses to 375
458+be incurred by the department prior to moneys being deposited in the 376
459+sports wagering account established in section 2 of this act in 377
460+accordance with this section. Such receivables shall not exceed nine 378
461+hundred thousand dollars. 379
462+Sec. 2. (NEW) (Effective July 1, 2019) There is established an account 380
463+to be known as the "sports wagering account" which shall be a 381
464+separate, nonlapsing account within the General Fund. The account 382
465+shall contain any moneys required by law to be deposited in the 383
466+account. Moneys in the account shall be expended by the 384
467+Commissioner of Consumer Protection for the purposes of 385
468+compensating the Department of Consumer Protection for the 386
469+reasonable and necessary costs incurred by the department for the 387
470+regulatory and licensing activities specified in section 1 of this act. On 388
471+and after the first full fiscal year that the commissioner finds money 389
472+has been deposited in the sports wagering account, the commissioner 390
473+shall contribute one-half of one per cent of the moneys deposited in the 391
474+account during the previous fiscal year to the five Regional Behavioral 392
475+Health Action Organizations designated by the Commissioner of 393
476+Mental Health and Addiction Services. At the end of each fiscal year, 394
477+the commissioner shall transfer any money in excess of such 395
478+reasonable and necessary costs and such contribution to the General 396
479+Fund. 397
480+Sec. 3. Section 12-577 of the general statutes is repealed and the 398 Raised Bill No. 7331
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485-are not paid when due, the commissioner shall impose a delinquency 390
486-assessment upon the licensed sports wagering operator in the amount 391
487-of ten per cent of such money or ten dollars, whichever amount is 392
488-greater, plus interest at the rate of one and one-half per cent of the 393
489-unpaid principal of such moneys for each month or fraction of a month 394
490-from the date such moneys are due to the date of payment. Subject to 395
491-the provisions of section 12-3a of the general statutes, the 396
492-commissioner may waive all or part of the penalties provided under 397
493-this subsection when it is proven to the commissioner's satisfaction 398
494-that the failure to pay such moneys within the time required was due 399
495-to reasonable cause and was not intentional or due to neglect. 400
496-(e) The commissioner or the commissioner's designee may authorize 401
497-deputies to enter upon the premises of a licensed sports wagering 402
498-operator's place of business for the purposes of inspecting books and 403
499-records, and supervising and examining cashiers, ticket sellers and 404
500-other persons handling money on behalf of such operator. 405
501-(f) A sports governing body may request that the commissioner 406
502-restrict, limit or exclude wagering on a sporting event or events by 407
503-providing notice in such form and manner as the commissioner 408
504-prescribes. 409
505-(g) (1) Each licensed sports wagering operator that offers sports 410
506-wagering shall immediately report to the commissioner any 411
507-information relating to (A) criminal or disciplinary proceedings 412
508-commenced against such operator or an employee of such operator in 413
509-connection with its operations, (B) abnormal betting activity or 414
510-patterns that may indicate a concern with the integrity of a sporting 415
511-event, (C) any potential breach of the relevant sports governing body's 416
512-internal rules or codes of conduct pertaining to sports wagering, (D) 417
513-any other conduct that corrupts the betting outcome of a sporting 418
514-event for purposes of financial gain, including match-fixing, and (E) 419
515-suspicious or illegal wagering activities, including the use of funds 420
516-derived from illegal activity to place a wager, the placing of a wager to 421
517-conceal funds derived from illegal activity, the use of an agent or a 422 Substitute Bill No. 7331
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486+following is substituted in lieu thereof (Effective July 1, 2019): 399
487+The commissioner shall annually cause to be made by some 400
488+competent person or persons in the department a thorough audit of 401
489+the books and records of each association licensee under this chapter, 402
490+[and] each casino gaming facility and each licensed sports wagering 403
491+operator, as defined in section 1 of this act, and the commissioner may, 404
492+from time to time, cause to be made by some competent person in the 405
493+department a thorough audit of the books and records of any other 406
494+person or business organization licensed under this chapter. All such 407
495+audit records shall be kept on file in the commissioner's office at all 408
496+times. Each licensee and casino gaming facility shall permit access to 409
497+its books and records for the purpose of having such audit made, and 410
498+shall produce, upon written order of the commissioner, any documents 411
499+and information required for such purpose. 412
500+Sec. 4. Subsection (b) of section 12-811 of the general statutes is 413
501+repealed and the following is substituted in lieu thereof (Effective July 414
502+1, 2019): 415
503+(b) No director, officer or employee of the corporation shall, directly 416
504+or indirectly, participate in, or share in the winnings from, (1) a game 417
505+conducted pursuant to sections 12-563a and 12-800 to 12-818, inclusive, 418
506+or (2) sports wagering, if the corporation conducts sports wagering 419
507+pursuant to section 1 of this act. 420
508+Sec. 5. Subsection (c) of section 12-812 of the general statutes is 421
509+repealed and the following is substituted in lieu thereof (Effective July 422
510+1, 2019): 423
511+(c) On a weekly basis, the president shall estimate, and certify to the 424
512+State Treasurer, that portion of the balance in the lottery fund which 425
513+exceeds the current needs of the corporation for the payment of prizes, 426
514+the payment of current operating expenses and funding of approved 427
515+reserves of the corporation, [. The] and that portion of the balance that 428
516+is attributable to the proceeds of sports wagering, as defined in section 429
517+1 of this act. Upon notification of receipt of such certification by the 430 Raised Bill No. 7331
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524-proxy to place a wager or the use of false identification to place a 423
525-wager. 424
526-(2) Such operator shall also immediately report to the relevant 425
527-sports governing body any information relating to conduct described 426
528-under subparagraphs (B) to (D), inclusive, of subdivision (1) of this 427
529-subsection. 428
530-(h) If the commissioner finds, after a hearing conducted pursuant to 429
531-chapter 54 of the general statutes, that any individual or entity 430
532-knowingly violated any provision of this section or any regulation 431
533-adopted pursuant to subsection (i) of this section, the commissioner 432
534-shall assess such individual or entity a civil penalty of not more than 433
535-fifty thousand dollars for each violation, not to exceed two hundred 434
536-fifty thousand dollars for multiple violations arising out of the same 435
537-transaction or occurrence. 436
538-(i) The commissioner shall adopt regulations, in accordance with the 437
539-provisions of chapter 54 of the general statutes, to implement the 438
540-provisions of this section and sections 3 and 4 of this act. Such 439
541-regulations shall include provisions to protect the public interest in the 440
542-integrity of sports wagering and reduce the dangers of unsuitable, 441
543-unfair or illegal practices, methods and activities in the conduct of 442
544-sports wagering. Such regulations shall include, but need not be 443
545-limited to, provisions regarding: (1) The types of sporting events upon 444
546-which sports wagers may be placed or accepted; (2) the minimum 445
547-amount of cash reserves to be maintained by licensed sports wagering 446
548-operators; (3) the acceptance of wagers on a series of sports events; (4) 447
549-the maximum wagers which may be accepted by a licensed sports 448
550-wagering operator from any one sports bettor on any one sports event; 449
551-(5) the type of wagering tickets which shall be used; (6) the method of 450
552-issuing tickets; (7) minimum accounting standards for a licensed sports 451
553-wagering operator; (8) the types of records which shall be maintained 452
554-by a licensed sports wagering operator and available for inspection 453
555-upon the request of the commissioner; (9) requirements for 454
556-information and reports from a licensed sports wagering operator to 455 Substitute Bill No. 7331
521+LCO No. 5506 15 of 21
522+
523+Treasurer, the corporation shall transfer the amount so certified from 431
524+the lottery fund of the corporation to the General Fund, [upon 432
525+notification of receipt of such certification by the Treasurer] except that 433
526+the corporation shall transfer the amount attributable to the proceeds 434
527+of sports wagering to the sports wagering account established in 435
528+section 2 of this act. 436
529+Sec. 6. Subdivision (2) of section 53-278a of the general statutes is 437
530+repealed and the following is substituted in lieu thereof (Effective July 438
531+1, 2019): 439
532+(2) "Gambling" means risking any money, credit, deposit or other 440
533+thing of value for gain contingent in whole or in part upon lot, chance 441
534+or the operation of a gambling device, including the playing of a casino 442
535+gambling game such as blackjack, poker, craps, roulette or a slot 443
536+machine, but does not include: Legal contests of skill, speed, strength 444
537+or endurance in which awards are made only to entrants or the owners 445
538+of entries; legal business transactions which are valid under the law of 446
539+contracts; activity legal under the provisions of sections 7-169 to 7-186, 447
540+inclusive; any lottery or contest conducted by or under the authority of 448
541+any state of the United States, Commonwealth of Puerto Rico or any 449
542+possession or territory of the United States; and other acts or 450
543+transactions expressly authorized by law on or after October 1, 1973. 451
544+Fantasy contests, as defined in section 12-578aa, as amended by this 452
545+act, shall not be considered gambling, provided the conditions set forth 453
546+in subsection (b) of section 12-578aa, as amended by this act, have been 454
547+met and the operator of such contests is registered pursuant to 455
548+subdivision (1) of subsection (d) of section 12-578aa. Sports wagering, 456
549+as defined in section 1 of this act, shall not be considered gambling if 457
550+the conditions set forth in subsection (b) of section 1 of this act have 458
551+been met and the sports wagering is conducted by a sports wagering 459
552+operator licensed under section 1 of this act, the Connecticut Lottery 460
553+Corporation or a lottery sales agent licensed under section 1 of this act; 461
554+Sec. 7. Subdivision (4) of section 53-278a of the general statutes is 462
555+repealed and the following is substituted in lieu thereof (Effective July 463 Raised Bill No. 7331
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563-enable effective auditing of sports wagering operations; (10) 456
564-requirements for establishing and funding a sports wagering account; 457
565-(11) minimum qualifications for a provider of sporting events data; 458
566-and (12) requirements for any advertisement for sports betting to 459
567-ensure such advertisement (A) does not target minors, problem 460
568-gamblers or other vulnerable individuals, (B) includes information 461
569-about gambling addiction or Internet web site links to resources 462
570-related to gambling addiction, and (C) is not false, misleading or 463
571-deceptive to a reasonable consumer. 464
572-Sec. 6. (NEW) (Effective July 1, 2019) (a) There is established an 465
573-account to be known as the "sports wagering account" which shall be a 466
574-separate, nonlapsing account within the General Fund. Any amounts 467
575-received by the commissioner pursuant to sections 3 to 5, inclusive, of 468
576-this act shall be deposited in the sports wagering account. The account 469
577-shall contain any other moneys required by law to be deposited in the 470
578-account. 471
579-(b) Moneys in the account shall be expended by the commissioner 472
580-for the purposes of compensating the department for the reasonable 473
581-and necessary costs incurred by the department for the regulatory and 474
582-licensing activities specified in sections 1 to 5, inclusive, of this act. On 475
583-and after the first full fiscal year that the commissioner finds money 476
584-has been deposited in the sports wagering account, the commissioner 477
585-shall contribute two per cent of the moneys deposited in the account 478
586-during the previous fiscal year to the program for treatment and 479
587-rehabilitation of compulsive gamblers established pursuant to section 480
588-17a-713 of the general statutes. At the end of each fiscal year, the 481
589-commissioner shall transfer any money in excess of such reasonable 482
590-and necessary costs and such contribution to the General Fund. 483
591-(c) The commissioner may establish receivables for the expenses to 484
592-be incurred by the department prior to moneys being deposited in the 485
593-sports wagering account. Such receivables shall not exceed nine 486
594-hundred thousand dollars. 487 Substitute Bill No. 7331
559+LCO No. 5506 16 of 21
560+
561+1, 2019): 464
562+(4) "Gambling device" means any device or mechanism by the 465
563+operation of which a right to money, credits, deposits or other things 466
564+of value may be created, as the result of the operation of an element of 467
565+chance; any device or mechanism which, when operated for a 468
566+consideration, does not return the same value or thing of value for the 469
567+same consideration upon each operation thereof; any device, 470
568+mechanism, furniture or fixture designed primarily for use in 471
569+connection with professional gambling; and any subassembly or 472
570+essential part designed or intended for use in connection with any 473
571+such device, mechanism, furniture, fixture, construction or installation, 474
572+provided an immediate and unrecorded right of replay mechanically 475
573+conferred on players of pinball machines and similar amusement 476
574+devices shall be presumed to be without value. "Gambling device" 477
575+does not include a crane game machine or device or a redemption 478
576+machine. A device or equipment used to play fantasy contests, as 479
577+defined in section 12-578aa, as amended by this act, shall not be 480
578+considered a gambling device, provided the conditions set forth in 481
579+subsection (b) of section 12-578aa, as amended by this act, have been 482
580+met. A device or equipment used to participate in sports wagering, as 483
581+defined in subsection (a) of section 1 of this act, shall not be considered 484
582+a gambling device if the conditions set forth in subsection (b) of section 485
583+1 of this act have been met; 486
584+Sec. 8. Section 12-561 of the general statutes is repealed and the 487
585+following is substituted in lieu thereof (Effective July 1, 2019): 488
586+No commissioner or unit head or employee of the department shall 489
587+directly or indirectly, individually or as a member of a partnership or 490
588+as a shareholder of a corporation, have any interest whatsoever in 491
589+dealing in any lottery, racing, fronton, betting enterprise or casino 492
590+gaming facility or in the ownership or leasing of any property or 493
591+premises used by or for any lottery, racing, fronton, betting enterprise 494
592+or casino gaming facility. No commissioner or unit head shall, directly 495
593+or indirectly, wager at any off-track betting facility, race track or 496 Raised Bill No. 7331
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601-Sec. 7. Section 12-577 of the general statutes is repealed and the 488
602-following is substituted in lieu thereof (Effective July 1, 2019): 489
603-The commissioner shall annually cause to be made by some 490
604-competent person or persons in the department a thorough audit of 491
605-the books and records of each association licensee under this chapter, 492
606-[and] each casino gaming facility and each licensed sports wagering 493
607-operator, as defined in section 1 of this act, and the commissioner may, 494
608-from time to time, cause to be made by some competent person in the 495
609-department a thorough audit of the books and records of any other 496
610-person or business organization licensed under this chapter. All such 497
611-audit records shall be kept on file in the commissioner's office at all 498
612-times. Each licensee and casino gaming facility shall permit access to 499
613-its books and records for the purpose of having such audit made, and 500
614-shall produce, upon written order of the commissioner, any documents 501
615-and information required for such purpose. 502
616-Sec. 8. Subsection (b) of section 12-811 of the general statutes is 503
617-repealed and the following is substituted in lieu thereof (Effective July 504
618-1, 2019): 505
619-(b) No director, officer or employee of the corporation shall, directly 506
620-or indirectly, participate in, or share in the winnings from, (1) a game 507
621-conducted pursuant to sections 12-563a and 12-800 to 12-818, inclusive, 508
622-or (2) sports wagering, if the corporation conducts sports wagering 509
623-pursuant to section 3 or 4 of this act. 510
624-Sec. 9. Section 12-812 of the general statutes is repealed and the 511
625-following is substituted in lieu thereof (Effective July 1, 2019): 512
626-(a) The president of the corporation, subject to the direction of the 513
627-board, shall conduct daily, weekly, multistate, special instant or other 514
628-lottery games and shall determine the number of times a lottery shall 515
629-be held each year, the form and price of the tickets and the aggregate 516
630-amount of prizes, which shall not be less than forty-five per cent of the 517
631-sales unless required by the terms of any agreement entered into for 518 Substitute Bill No. 7331
597+LCO No. 5506 17 of 21
598+
599+fronton authorized under this chapter, purchase lottery tickets issued 497
600+under this chapter, [or] play, directly or indirectly, any authorized 498
601+game conducted at a casino gaming facility or place a sports wager 499
602+with a sports wagering operator licensed under section 1 of this act, 500
603+the Connecticut Lottery Corporation or a lottery sales agent licensed 501
604+under section 1 of this act. The commissioner may adopt regulations in 502
605+accordance with the provisions of chapter 54 to prohibit any employee 503
606+of the department from engaging, directly or indirectly, in any form of 504
607+legalized gambling activity in which such employee is involved 505
608+because of his or her employment with the department. For purposes 506
609+of this section, "unit head" means a managerial employee with direct 507
610+oversight of a legalized gambling activity. 508
611+Sec. 9. Section 12-810 of the general statutes is repealed and the 509
612+following is substituted in lieu thereof (Effective July 1, 2019): 510
613+(a) The Freedom of Information Act, as defined in section 1-200, 511
614+shall apply to all actions, meetings and records of the corporation, 512
615+except (1) where otherwise limited by subsection (c) of this section as 513
616+to new lottery games and serial numbers of unclaimed lottery tickets, 514
617+[and] (2) with respect to financial, credit and proprietary information 515
618+submitted by any person to the corporation in connection with any 516
619+proposal to provide goods, services or professional advice to the 517
620+corporation as provided in section 12-815, and (3) as provided in 518
621+subsection (d) of this section. 519
622+(b) The records of proceedings as provided in subsection (a) of 520
623+section 12-805 shall be subject to disclosure pursuant to the provisions 521
624+of subsection (a) of section 1-210. 522
625+(c) Any new lottery game and the procedures for such game, until 523
626+the game is publicly announced by the corporation, and any serial 524
627+number of an unclaimed lottery ticket shall not be deemed public 525
628+records, as defined in section 1-200, and shall not be available to the 526
629+public under the provisions of section 1-210. The president shall 527
630+submit a fiscal note prepared by the corporation with respect to the 528 Raised Bill No. 7331
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638-the conduct of multistate lottery games. The proceeds of the sale of 519
639-tickets shall be deposited in the lottery fund of the corporation from 520
640-which prizes shall be paid, upon vouchers signed by the president, or 521
641-by either of two persons designated and authorized by him, in such 522
642-numbers and amounts as the president determines. The corporation 523
643-may limit its liability in games with fixed payouts and may cause a 524
644-cessation of sales of tickets of certain designation when such liability 525
645-limit has been reached. If licensed to conduct sports wagering 526
646-pursuant to section 3 or 4 of this act, the president shall deposit the 527
647-proceeds of sales related to sports wagering, as defined in section 1 of 528
648-this act, in the lottery fund, from which prizes shall be paid. 529
649-(b) The president, subject to the direction of the board, may enter 530
650-into agreements for the sale of product advertising on lottery tickets, 531
651-play slips and other lottery media. 532
652-(c) On a weekly basis, the president shall estimate, and certify to the 533
653-State Treasurer, that portion of the balance in the lottery fund which 534
654-exceeds the current needs of the corporation for the payment of prizes, 535
655-the payment of current operating expenses and funding of approved 536
656-reserves of the corporation, [. The] and that portion of the balance that 537
657-is attributable to the proceeds of sports wagering, as defined in section 538
658-1 of this act. Upon notification of receipt of such certification by the 539
659-Treasurer, the corporation shall transfer the amount so certified from 540
660-the lottery fund of the corporation to the General Fund, [upon 541
661-notification of receipt of such certification by the Treasurer] except that 542
662-the corporation shall transfer the amount attributable to the proceeds 543
663-of sports wagering to the sports wagering account established in 544
664-section 6 of this act. 545
665-Sec. 10. Subdivision (2) of section 53-278a of the general statutes is 546
666-repealed and the following is substituted in lieu thereof (Effective July 547
667-1, 2019): 548
668-(2) "Gambling" means risking any money, credit, deposit or other 549
669-thing of value for gain contingent in whole or in part upon lot, chance 550 Substitute Bill No. 7331
634+LCO No. 5506 18 of 21
635+
636+procedures for a new lottery game to the joint standing committees of 529
637+the General Assembly having cognizance of matters relating to finance, 530
638+revenue, bonding and public safety after approval of such game by the 531
639+board. 532
640+(d) The name and any personally identifying information of a 533
641+person who is participating in or has participated in the corporation's 534
642+sports wagering voluntary self-exclusion process established in 535
643+subdivision (2) of subsection (f) of section 1 of this act or subdivision 536
644+(2) of subsection (g) of section 1 of this act shall not be deemed public 537
645+records, as defined in section 1-200, and shall not be available to the 538
646+public under the provisions of section 1-210. The president may 539
647+disclose the name and any records of such person if such person claims 540
648+a winning from placing a sports wager. 541
649+Sec. 10. Subdivision (1) of subsection (a) of section 12-578f of the 542
650+general statutes is repealed and the following is substituted in lieu 543
651+thereof (Effective July 1, 2019): 544
652+(1) "Authorized games" means any game of chance, including, but 545
653+not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, 546
654+chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 547
655+beat the dealer, bouncing ball, video facsimile game and any other 548
656+game of chance authorized by the Commissioner of Consumer 549
657+Protection. "Authorized games" does not include sports wagering, as 550
658+defined in subsection (a) of section 1 of this act; 551
659+Sec. 11. Subsection (b) of section 12-578aa of the general statutes is 552
660+repealed and the following is substituted in lieu thereof (Effective July 553
661+1, 2019): 554
662+(b) The provisions of this section shall not be effective unless the 555
663+following conditions have been met: 556
664+(1) The Governor enters into [amendments to the Mashantucket 557
665+Pequot procedures and to the Mashantucket Pequot memorandum of 558
666+understanding with the Mashantucket Pequot Tribe and amendments 559 Raised Bill No. 7331
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676-or the operation of a gambling device, including the playing of a casino 551
677-gambling game such as blackjack, poker, craps, roulette or a slot 552
678-machine, but does not include: Legal contests of skill, speed, strength 553
679-or endurance in which awards are made only to entrants or the owners 554
680-of entries; legal business transactions which are valid under the law of 555
681-contracts; activity legal under the provisions of sections 7-169 to 7-186, 556
682-inclusive; any lottery or contest conducted by or under the authority of 557
683-any state of the United States, Commonwealth of Puerto Rico or any 558
684-possession or territory of the United States; and other acts or 559
685-transactions expressly authorized by law on or after October 1, 1973. 560
686-Fantasy contests, as defined in section 12-578aa, shall not be 561
687-considered gambling, provided the conditions set forth in subsection 562
688-(b) of section 12-578aa have been met and the operator of such contests 563
689-is registered pursuant to subdivision (1) of subsection (d) of section 12-564
690-578aa. Sports wagering, as defined in section 1 of this act, shall not be 565
691-considered gambling if the conditions set forth in section 2 of this act 566
692-have been met and the sports wagering is conducted by a licensed 567
693-sports wagering operator, as defined in section 1 of this act; 568
694-Sec. 11. Subdivision (4) of section 53-278a of the general statutes is 569
695-repealed and the following is substituted in lieu thereof (Effective July 570
696-1, 2019): 571
697-(4) "Gambling device" means any device or mechanism by the 572
698-operation of which a right to money, credits, deposits or other things 573
699-of value may be created, as the result of the operation of an element of 574
700-chance; any device or mechanism which, when operated for a 575
701-consideration, does not return the same value or thing of value for the 576
702-same consideration upon each operation thereof; any devic e, 577
703-mechanism, furniture or fixture designed primarily for use in 578
704-connection with professional gambling; and any subassembly or 579
705-essential part designed or intended for use in connection with any 580
706-such device, mechanism, furniture, fixture, construction or installation, 581
707-provided an immediate and unrecorded right of replay mechanically 582
708-conferred on players of pinball machines and similar amusement 583 Substitute Bill No. 7331
670+LCO No. 5506 19 of 21
671+
672+to the Mohegan compact and to the Mohegan memorandum of 560
673+understanding with the Mohegan Tribe of Indians of Connecticut 561
674+concerning the authorization of fantasy contests in the state] tribal-562
675+state compacts with the Mashantucket Pequot Tribe and the Mohegan 563
676+Tribe of Indians of Connecticut pursuant to the federal Indian Gaming 564
677+Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) concerning the 565
678+authorization of fantasy contests. Any such tribal-state compact shall: 566
679+(A) Allow each tribe to offer fantasy contests on Indian lands, (B) 567
680+provide that the authorization of fantasy contests in this state does not 568
681+relieve each tribe from the tribe's obligation to contribute a percentage 569
682+of the gross operating revenues of video facsimile games to the state as 570
683+provided in the Mashantucket Pequot memorandum of understanding 571
684+and the Mohegan memorandum of understanding, as the case may be, 572
685+and (C) provide that the authorization of fantasy contests in this state 573
686+does not terminate the moratoria on the operation of video facsimile 574
687+games by the tribes pursuant to section 15(a) of the Mashantucket 575
688+Pequot procedures and section 15(a) of the Mohegan compact. 576
689+[(2) The amendments to the Mashantucket Pequot procedures and 577
690+the Mohegan compact shall include a provision that the authorization 578
691+of fantasy contests in the state does not terminate the moratorium 579
692+against the operation of video facsimile games by the Mashantucket 580
693+Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each 581
694+tribe's reservation. 582
695+(3) The amendments to each tribe's memorandum of understanding 583
696+shall include a provision that the authorization of fantasy contests in 584
697+the state does not relieve each tribe from each tribe's obligation to 585
698+contribute a percentage of the gross operating revenues of video 586
699+facsimile games to the state as provided in each tribe's memorandum 587
700+of understanding.] 588
701+[(4)] (2) The [amendments to the Mashantucket Pequot procedures, 589
702+the Mashantucket Pequot memorandum of understanding, the 590
703+Mohegan compact and the Mohegan memorandum of understanding] 591
704+tribal-state compacts entered into under subdivision (1) of this 592 Raised Bill No. 7331
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715-devices shall be presumed to be without value. "Gambling device" 584
716-does not include a crane game machine or device or a redemption 585
717-machine. A device or equipment used to play fantasy contests, as 586
718-defined in section 12-578aa, shall not be considered a gambling device, 587
719-provided the conditions set forth in subsection (b) of section 12-578aa 588
720-have been met. A device or equipment used to participate in sports 589
721-wagering, as defined in subsection (a) of section 1 of this act, shall not 590
722-be considered a gambling device if the conditions set forth in section 2 591
723-of this act have been met; 592
724-Sec. 12. Section 12-561 of the general statutes is repealed and the 593
725-following is substituted in lieu thereof (Effective July 1, 2019): 594
726-No commissioner or unit head or employee of the department shall 595
727-directly or indirectly, individually or as a member of a partnership or 596
728-as a shareholder of a corporation, have any interest whatsoever in 597
729-dealing in any lottery, racing, fronton, betting enterprise or casino 598
730-gaming facility or in the ownership or leasing of any property or 599
731-premises used by or for any lottery, racing, fronton, betting enterprise 600
732-or casino gaming facility. No commissioner or unit head shall, directly 601
733-or indirectly, wager at any off-track betting facility, race track or 602
734-fronton authorized under this chapter, purchase lottery tickets issued 603
735-under this chapter, [or] play, directly or indirectly, any authorized 604
736-game conducted at a casino gaming facility or place a sports wager 605
737-with a licensed sports wagering operator, as defined in section 1 of this 606
738-act. The commissioner may adopt regulations in accordance with the 607
739-provisions of chapter 54 to prohibit any employee of the department 608
740-from engaging, directly or indirectly, in any form of legalized 609
741-gambling activity in which such employee is involved because of his or 610
742-her employment with the department. For purposes of this section, 611
743-"unit head" means a managerial employee with direct oversight of a 612
744-legalized gambling activity. 613
745-Sec. 13. Section 12-810 of the general statutes is repealed and the 614
746-following is substituted in lieu thereof (Effective July 1, 2019): 615 Substitute Bill No. 7331
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709+
710+subsection are approved or deemed approved by the Secretary of the 593
711+United States Department of the Interior pursuant to the federal Indian 594
712+Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its 595
713+implementing regulations. If such approval is overturned by a court in 596
714+a final judgment, which is not appealable, the authorization for fantasy 597
715+contests provided under this section shall cease to be effective. 598
716+[(5)] (3) The [amendments to the Mashantucket Pequot procedures 599
717+and to the Mohegan compact] tribal-state compacts entered into under 600
718+subdivision (1) of this subsection are approved by the General 601
719+Assembly pursuant to section 3-6c. 602
720+[(6) The amendments to the Mashantucket Pequot memorandum of 603
721+understanding and to the Mohegan memorandum of understanding 604
722+are approved by the General Assembly pursuant to the process 605
723+described in section 3-6c.] 606
724+Sec. 12. (NEW) (Effective July 1, 2019) (a) The Commissioner of 607
725+Economic and Community Development shall seek partnerships with 608
726+professional sports leagues and governing bodies to promote sports 609
727+activities and economic development in this state. The commissioner 610
728+shall contact representatives of Major League Baseball, the Professional 611
729+Golfers' Association, the Ladies Professional Golf Association, the 612
730+National Basketball Association, the National Hockey League, the 613
731+National Football League, Major League Soccer, the National Women's 614
732+Soccer League and any other professional sports league or governing 615
733+body the commissioner identifies. The commissioner may consult with 616
734+members of the General Assembly, business leaders, municipal leaders 617
735+and other interested stakeholders in developing partnerships with 618
736+professional sports leagues or governing bodies. The commissioner 619
737+shall set a goal of scheduling at least three major league professional 620
738+sports events in the state each year, at locations that reflect the 621
739+geographic and demographic diversity of the state. 622
740+(b) Not later than July 1, 2020, and annually thereafter, the 623
741+commissioner shall submit a report, in accordance with the provisions 624 Raised Bill No. 7331
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752744
753-(a) The Freedom of Information Act, as defined in section 1-200, 616
754-shall apply to all actions, meetings and records of the corporation, 617
755-except (1) where otherwise limited by subsection (c) of this section as 618
756-to new lottery games and serial numbers of unclaimed lottery tickets, 619
757-[and] (2) with respect to financial, credit and proprietary information 620
758-submitted by any person to the corporation in connection with any 621
759-proposal to provide goods, services or professional advice to the 622
760-corporation as provided in section 12-815, and (3) as provided in 623
761-subsection (d) of this section. 624
762-(b) The records of proceedings as provided in subsection (a) of 625
763-section 12-805 shall be subject to disclosure pursuant to the provisions 626
764-of subsection (a) of section 1-210. 627
765-(c) Any new lottery game and the procedures for such game, until 628
766-the game is publicly announced by the corporation, and any serial 629
767-number of an unclaimed lottery ticket shall not be deemed public 630
768-records, as defined in section 1-200, and shall not be available to the 631
769-public under the provisions of section 1-210. The president shall 632
770-submit a fiscal note prepared by the corporation with respect to the 633
771-procedures for a new lottery game to the joint standing committees of 634
772-the General Assembly having cognizance of matters relating to finance, 635
773-revenue, bonding and public safety after approval of such game by the 636
774-board. 637
775-(d) The name and any personally identifying information of a 638
776-person who is participating in or has participated in the corporation's 639
777-sports wagering voluntary self-exclusion process established in 640
778-subsection (a) of section 5 of this act shall not be deemed public 641
779-records, as defined in section 1-200, and shall not be available to the 642
780-public under the provisions of section 1-210. The president may 643
781-disclose the name and any records of such person if such person claims 644
782-a winning from placing a sports wager. 645
783-Sec. 14. Subdivision (1) of subsection (a) of section 12-578f of the 646
784-general statutes is repealed and the following is substituted in lieu 647 Substitute Bill No. 7331
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790-
791-thereof (Effective July 1, 2019): 648
792-(1) "Authorized games" means any game of chance, including, but 649
793-not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, 650
794-chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 651
795-beat the dealer, bouncing ball, video facsimile game and any other 652
796-game of chance authorized by the Commissioner of Consumer 653
797-Protection. "Authorized games" does not include sports wagering, as 654
798-defined in subsection (a) of section 1 of this act; 655
799-Sec. 15. (NEW) (Effective July 1, 2019) (a) The Commissioner of 656
800-Economic and Community Development shall seek partnerships with 657
801-professional sports leagues and governing bodies to promote sports 658
802-activities and economic development in this state. The commissioner 659
803-shall contact representatives of Major League Baseball, the Professional 660
804-Golfers' Association, the Ladies Professional Golf Association, the 661
805-National Basketball Association, the National Hockey League, the 662
806-National Football League, Major League Soccer, the National Women's 663
807-Soccer League and any other professional sports league or governing 664
808-body the commissioner identifies. The commissioner may consult with 665
809-members of the General Assembly, business leaders, municipal leaders 666
810-and other interested stakeholders in developing partnerships with 667
811-professional sports leagues or governing bodies. The commissioner 668
812-shall set a goal of scheduling at least three major league professional 669
813-sports events in the state each year, at locations that reflect the 670
814-geographic and demographic diversity of the state. 671
815-(b) Not later than July 1, 2020, and annually thereafter, the 672
816-commissioner shall submit a report, in accordance with the provisions 673
817-of section 11-4a of the general statutes, to the joint standing committees 674
818-of the General Assembly having cognizance of matters relating to 675
819-public safety and security and commerce concerning the 676
820-commissioner's activities during the preceding year in developing 677
821-partnerships with professional sports leagues and governing bodies 678
822-and scheduling events in the state. 679 Substitute Bill No. 7331
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828-
829-Sec. 16. Section 12-816 of the general statutes is repealed and the 680
830-following is substituted in lieu thereof (Effective July 1, 2019): 681
831-The exercise of the powers granted by sections 1-120, 1-121, 1-125, 682
832-12-563, 12-563a, 12-564, 12-566, 12-568a and 12-569, subsection (c) of 683
833-section 12-574, [and] sections 12-800 to 12-818, inclusive, and sections 3 684
834-and 4 of this act, if the corporation is a licensed sports wagering 685
835-operator, constitute the performance of an essential governmental 686
836-function and all operations of the corporation shall be free from any 687
837-form of federal or state taxation. In addition, except pursuant to any 688
838-federal requirements, the corporation shall not be required to pay any 689
839-taxes or assessments upon or in respect to sales of lottery tickets, or 690
840-any property or moneys of the corporation, levied by the state or any 691
841-political subdivision or municipal taxing authority. The corporation 692
842-and its assets, property and revenues shall at all times be free from 693
843-taxation of every kind by the state and by the municipalities and all 694
844-other political subdivisions or special districts having taxing powers in 695
845-the state. 696
846-Sec. 17. Section 12-801 of the general statutes is repealed and the 697
847-following is substituted in lieu thereof (Effective July 1, 2019): 698
848-As used in section 12-563a and sections 12-800 to 12-818, inclusive, 699
849-the following terms shall have the following meanings unless the 700
850-context clearly indicates another meaning: 701
851-(1) "Board" or "board of directors" means the board of directors of 702
852-the corporation; 703
853-(2) "Corporation" means the Connecticut Lottery Corporation as 704
854-created under section 12-802; 705
855-(3) "Division" means the former Division of Special Revenue in the 706
856-Department of Revenue Services; 707
857-(4) "Lottery" means (A) the Connecticut state lottery conducted prior 708
858-to the transfer authorized under section 12-808 by the Division of 709 Substitute Bill No. 7331
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864-
865-Special Revenue, (B) after such transfer, the Connecticut state lottery 710
866-conducted by the corporation pursuant to sections 12-563a and 12-800 711
867-to 12-818, inclusive, (C) the state lottery referred to in subsection (a) of 712
868-section 53-278g, and (D) keno conducted by the corporation pursuant 713
869-to section 12-806c; 714
870-(5) "Keno" means a lottery game in which a subset of numbers are 715
871-drawn from a larger field of numbers by a central computer system 716
872-using an approved random number generator, wheel system device or 717
873-other drawing device. "Keno" does not include a game operated on a 718
874-video facsimile machine; 719
875-(6) "Lottery fund" means a fund or funds established by, and under 720
876-the management and control of, the corporation, into which all lottery 721
877-revenues of the corporation, and all revenues of sports wagering if the 722
878-corporation is licensed to conduct sports wagering pursuant to section 723
879-3 or 4 of this act, are deposited, from which all payments and expenses 724
880-of the corporation are paid and from which transfers to the General 725
881-Fund and sports wagering account are made pursuant to section 12-726
882-812, as amended by this act; and 727
883-(7) "Operating revenue" means total revenue received from lottery 728
884-sales less all cancelled sales and amounts paid as prizes but before 729
885-payment or provision for payment of any other expenses. 730
886-Sec. 18. Section 12-806 of the general statutes is repealed and the 731
887-following is substituted in lieu thereof (Effective July 1, 2019): 732
888-(a) The purposes of the corporation shall be to: (1) Operate and 733
889-manage the lottery in an entrepreneurial and business-like manner free 734
890-from the budgetary and other constraints that affect state agencies; (2) 735
891-provide continuing and increased revenue to the people of the state 736
892-through the lottery by being responsive to market forces and acting 737
893-generally as a corporation engaged in entrepreneurial pursuits; and (3) 738
894-ensure that the lottery continues to be operated with integrity and for 739
895-the public good. 740 Substitute Bill No. 7331
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901-
902-(b) The corporation shall have the following powers: 741
903-(1) To receive as transferee from the state of Connecticut all of the 742
904-tangible and intangible assets constituting the lottery including the 743
905-exclusive right to operate the lottery as the exclusive lottery of the state 744
906-and, subject to subsection (b) of section 12-808, to assume and 745
907-discharge all of the agreements, covenants and obligations of the 746
908-Department of Consumer Protection entered into which constitute a 747
909-part of the operation and management of the lottery; 748
910-(2) To operate and manage the lottery consistent with the provisions 749
911-of sections 1-120, 1-121, 1-125, 12-563, 12-563a, 12-564, 12-566, 12-568a 750
912-and 12-569, subsection (c) of section 12-574 and sections 12-800 to 12-751
913-818, inclusive, and as specifically provided in section 12-812; 752
914-(3) To have perpetual succession as a body corporate and to adopt 753
915-bylaws, policies and procedures for the operation of its affairs and 754
916-conduct of its businesses; 755
917-(4) To introduce new lottery games, modify existing lottery games, 756
918-utilize existing and new technologies, determine distribution channels 757
919-for the sale of lottery tickets, introduce keno pursuant to signed 758
920-agreements with the Mashantucket Pequot Tribe and the Mohegan 759
921-Tribe of Indians of Connecticut, in accordance with section 12-806c, 760
922-and, to the extent specifically authorized by regulations adopted by the 761
923-Department of Consumer Protection pursuant to chapter 54, introduce 762
924-instant ticket vending machines, kiosks and automated wagering 763
925-systems or machines, with all such rights being subject to regulatory 764
926-oversight by the Department of Consumer Protection, except that the 765
927-corporation shall not offer any interactive on-line lottery games, 766
928-including on-line video lottery games for promotional purposes; 767
929-(5) To establish an annual budget of revenues and expenditures, 768
930-along with reasonable reserves for work ing capital, capital 769
931-expenditures, debt retirement and other anticipated expenditures, in a 770
932-manner and at levels considered by the board of directors as 771 Substitute Bill No. 7331
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938-
939-appropriate and prudent; 772
940-(6) To adopt such administrative and operating procedures which 773
941-the board of directors deems appropriate; 774
942-(7) To enter into agreements with one or more states or territories of 775
943-the United States for the promotion and operation of joint lottery 776
944-games and to continue to participate in any joint lottery game in which 777
945-the corporation participates on July 1, 2003, regardless of whether any 778
946-government-authorized lottery operated outside of the United States 779
947-participates in such game; 780
948-(8) Subject to the provisions of section 12-815, to enter into 781
949-agreements with vendors with respect to the operation and 782
950-management of the lottery, including operation of lottery terminals, 783
951-management services, printing of lottery tickets, management 784
952-expertise, marketing expertise, advertising or such other goods or 785
953-services as the board of directors deems necessary and appropriate; 786
954-(9) To purchase or lease operating equipment, including, but not 787
955-limited to, computer gaming and automated wagering systems and to 788
956-employ agents or employees to operate such systems; 789
957-(10) To retain unclaimed prize funds as additional revenue for the 790
958-state, or to use unclaimed prize funds to increase sales, or to return to 791
959-participants unclaimed prize funds in a manner designed to increase 792
960-sales; 793
961-(11) To establish prize reserve accounts as the board of directors 794
962-deems appropriate; 795
963-(12) To pay lottery prizes as awarded under section 12-812, as 796
964-amended by this act, to purchase annuities to fund such prizes, and to 797
965-assure that all annuities from which payments to winners of lottery 798
966-prizes are made are invested in instruments issued by agencies of the 799
967-United States government and backed by the full faith and credit of the 800
968-United States, or are issued by insurance companies licensed to do 801 Substitute Bill No. 7331
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974-
975-business in the state, provided the issuer has been determined by the 802
976-Department of Consumer Protection to be financially stable and meets 803
977-the minimum investment rating as determined by the department; 804
978-(13) To pay the Office of Policy and Management to reimburse the 805
979-Department of Consumer Protection for the reasonable and necessary 806
980-costs arising from the department's regulatory oversight of the 807
981-corporation, in accordance with the assessment made pursuant to 808
982-section 12-806b, including costs arising directly or indirectly from the 809
983-licensing of lottery agents, performance of state police background 810
984-investigations, and the implementation of subsection (b) of section 12-811
985-562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 812
986-12-818, inclusive; 813
987-(14) In the event that the operation or management of the 814
988-corporation becomes subject to the federal gaming occupation tax, to 815
989-pay such tax on behalf of lottery sales agents and to assist agents 816
990-subject thereto; 817
991-(15) To determine the commissions payable to lottery sales agents, 818
992-provided any agent's commission shall not average less than four per 819
993-cent of such agent's lottery sales; 820
994-(16) To invest in, acquire, lease, purchase, own, manage, hold and 821
995-dispose of real property and lease, convey or deal in or enter into 822
996-agreements with respect to such property on any terms necessary or 823
997-incidental to carrying out the purposes of sections 12-563a and 12-800 824
998-to 12-818, inclusive, provided such transactions shall not be subject to 825
999-approval, review or regulation pursuant to title 4b or any other statute 826
1000-by any state agency, except that real property transactions shall be 827
1001-subject to review by the State Properties Review Board; 828
1002-(17) To borrow money for the purpose of obtaining working capital; 829
1003-(18) To hold patents, copyrights, trademarks, marketing rights, 830
1004-licenses or any other evidence of protection or exclusivity issued under 831
1005-the laws of the United States or any state; 832 Substitute Bill No. 7331
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1011-
1012-(19) To employ such assistants, agents and other employees as may 833
1013-be necessary or desirable to carry out its purposes in accordance with 834
1014-sections 12-563a and 12-800 to 12-818, inclusive, to fix their 835
1015-compensation and, subject to the provisions of subsections (e) and (f) 836
1016-of section 12-802, establish all necessary and appropriate personnel 837
1017-practices and policies; to engage consultants, accountants, attorneys 838
1018-and financial and other independent professionals as may be necessary 839
1019-or desirable to assist the corporation in performing its purposes in 840
1020-accordance with sections 12-563a and 12-800 to 12-818, inclusive; 841
1021-(20) To make and enter into all contracts and agreements necessary 842
1022-or incidental to the performance of its duties and the execution of its 843
1023-powers under sections 12-563a and 12-800 to 12-818, inclusive; 844
1024-(21) In its own name, to sue and be sued, plead and be impleaded, 845
1025-adopt a seal and alter the same at pleasure; 846
1026-(22) Subject to the approval of the board and to the requirement to 847
1027-remit excess lottery funds to the General Fund as set forth in section 848
1028-12-812, as amended by this act, to invest any funds not needed for 849
1029-immediate use or disbursement, including any funds held in approved 850
1030-reserve accounts, in investments permitted by sections 3-20 and 3-27a 851
1031-for the proceeds of state bonds; 852
1032-(23) To procure insurance against any loss in connection with its 853
1033-property and other assets in such amounts and from such insurers as it 854
1034-deems desirable; 855
1035-(24) To the extent permitted under any contract with other persons 856
1036-to which the corporation is a party, to consent to any termination, 857
1037-modification, forgiveness or other change of any term of any 858
1038-contractual right, payment, royalty, contract or agreement of any kind; 859
1039-(25) To acquire, lease, purchase, own, manage, hold and dispose of 860
1040-personal property, and lease, convey or deal in or enter into 861
1041-agreements with respect to such property on any terms necessary or 862
1042-incidental to the carrying out of these purposes; 863 Substitute Bill No. 7331
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1048-
1049-(26) To account for and audit funds of the corporation; 864
1050-(27) To pay or provide for payment from operating revenues all 865
1051-expenses, costs and obligations incurred by the corporation in the 866
1052-exercise of the powers of the corporation under sections 12-563a and 867
1053-12-800 to 12-818, inclusive; [and] 868
1054-(28) To exercise any powers necessary to carry out the purposes of 869
1055-sections 12-563a and 12-800 to 12-818, inclusive; [.] and 870
1056-(29) To operate sports wagering in person, if licensed pursuant to 871
1057-section 3 of this act, and to operate sports wagering on a platform, if 872
1058-licensed pursuant to section 4 of this act. 873
1059-Sec. 19. Section 17a-713 of the general statutes is repealed and the 874
1060-following is substituted in lieu thereof (Effective July 1, 2019): 875
1061-(a) The Department of Mental Health and Addiction Services shall 876
1062-establish a program for the treatment and rehabilitation of compulsive 877
1063-gamblers in the state. The program shall provide prevention, treatment 878
1064-and rehabilitation services for chronic gamblers. The department may 879
1065-enter into agreements with subregional planning and action councils 880
1066-and nonprofit organizations to assist in providing these services, 881
1067-provided not less than twenty-five per cent of the amount received 882
1068-pursuant to section 12-818 annually shall be set aside for contracts with 883
1069-subregional planning and action councils established pursuant to 884
1070-section 17a-671 and nonprofit organizations and not less than five per 885
1071-cent of the amount received pursuant to section 12-818 annually shall 886
1072-be set aside for a contract with the Connecticut Council on Problem 887
1073-Gambling. The department may impose a reasonable fee, on a sliding 888
1074-scale, on those participants who can afford to pay for any such 889
1075-services. The department shall implement such program when the 890
1076-account established under subsection (b) of this section is sufficient to 891
1077-meet initial operating expenses. As used in this section, "chronic 892
1078-gambler" means a person who is chronically and progressively 893
1079-preoccupied with gambling and the urge to gamble, and with 894 Substitute Bill No. 7331
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1085-
1086-gambling behavior that compromises, disrupts or damages personal, 895
1087-family or vocational pursuits. 896
1088-(b) The program established by subsection (a) of this section shall be 897
1089-funded by: [imposition of:] (1) [A] Imposition of a fee of one hundred 898
1090-thirty-five dollars on each association license, for each performance of 899
1091-jai alai or dog racing conducted under the provisions of chapter 226, 900
1092-provided no such licensee shall contribute more than forty-five 901
1093-thousand dollars in any one year; (2) imposition of a fee of twenty-five 902
1094-dollars for each teletheater performance on each operator of a 903
1095-teletheater facility; [and] (3) the amount received from the Connecticut 904
1096-Lottery Corporation pursuant to section 12-818; and (4) the amount 905
1097-received from the sports wagering account pursuant to section 6 of this 906
1098-act. The Commissioner of Consumer Protection shall collect the fee 907
1099-from each association licensee or such operator on a monthly basis. 908
1100-The receipts shall be deposited in the General Fund and credited to a 909
1101-separate, nonlapsing chronic gamblers treatment and rehabilitation 910
1102-account which shall be established by the Comptroller. All moneys in 911
1103-the account are deemed to be appropriated and shall be expended for 912
1104-the purposes established in subsection (a) of this section. 913
1105-(c) The department shall adopt regulations in accordance with the 914
1106-provisions of chapter 54 to carry out the purposes of this section. 915
1107-Sec. 20. Section 12-565a of the general statutes is repealed. (Effective 916
1108-July 1, 2019) 917
747+of section 11-4a of the general statutes, to the joint standing committee 625
748+of the General Assembly having cognizance of matters relating to 626
749+public safety and security and commerce concerning the 627
750+commissioner's activities during the preceding year in developing 628
751+partnerships with professional sports leagues and governing bodies 629
752+and scheduling events in the state. 630
753+Sec. 13. Section 12-565a of the general statutes is repealed. (Effective 631
754+July 1, 2019) 632
1109755 This act shall take effect as follows and shall amend the following
1110756 sections:
1111757
1112758 Section 1 July 1, 2019 New section
1113759 Sec. 2 July 1, 2019 New section
1114-Sec. 3 July 1, 2019 New section
1115-Sec. 4 July 1, 2019 New section
1116-Sec. 5 July 1, 2019 New section
1117-Sec. 6 July 1, 2019 New section
1118-Sec. 7 July 1, 2019 12-577 Substitute Bill No. 7331
760+Sec. 3 July 1, 2019 12-577
761+Sec. 4 July 1, 2019 12-811(b)
762+Sec. 5 July 1, 2019 12-812(c)
763+Sec. 6 July 1, 2019 53-278a(2)
764+Sec. 7 July 1, 2019 53-278a(4)
765+Sec. 8 July 1, 2019 12-561
766+Sec. 9 July 1, 2019 12-810
767+Sec. 10 July 1, 2019 12-578f(a)(1)
768+Sec. 11 July 1, 2019 12-578aa(b)
769+Sec. 12 July 1, 2019 New section
770+Sec. 13 July 1, 2019 Repealer section
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1124-
1125-Sec. 8 July 1, 2019 12-811(b)
1126-Sec. 9 July 1, 2019 12-812
1127-Sec. 10 July 1, 2019 53-278a(2)
1128-Sec. 11 July 1, 2019 53-278a(4)
1129-Sec. 12 July 1, 2019 12-561
1130-Sec. 13 July 1, 2019 12-810
1131-Sec. 14 July 1, 2019 12-578f(a)(1)
1132-Sec. 15 July 1, 2019 New section
1133-Sec. 16 July 1, 2019 12-816
1134-Sec. 17 July 1, 2019 12-801
1135-Sec. 18 July 1, 2019 12-806
1136-Sec. 19 July 1, 2019 17a-713
1137-Sec. 20 July 1, 2019 Repealer section
1138-
1139-Statement of Legislative Commissioners:
1140-In Section 2(a), internal and statutory references were changed for
1141-accuracy; in Section 4(g), an internal reference was changed for
1142-accuracy.
1143-
1144-PS Joint Favorable Subst.
772+Statement of Purpose:
773+To authorize sports wagering in the state if certain conditions are met
774+and to require the Commissioner of Economic and Community
775+Development to seek partnerships with professional sports leagues
776+and governing bodies.
777+[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
778+except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
779+not underlined.]
1145780