Connecticut 2019 Regular Session

Connecticut House Bill HB07331 Latest Draft

Bill / Comm Sub Version Filed 04/08/2019

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