Connecticut 2019 Regular Session

Connecticut Senate Bill SB00017 Compare Versions

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Version 2 (New)

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	3	+	LCO No. 5941 1 of 9
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7		-	General Assembly ~~Substitute~~ Bill No. 17
	5	+	General Assembly Committee Bill No. 17
8	6		January Session, 2019
	7	+	LCO No. 5941
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	10	+	Referred to Committee on PUBLIC SAFETY AND SECURITY
	11	+
	12	+
	13	+	Introduced by:
	14	+	(PS)
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13	17
14	18		AN ACT AUTHORIZING SPORTS WAGERING, INTERNET G AMING
15	19		AND INTERNET KENO.
16	20		Be it enacted by the Senate and House of Representatives in General
17	21		Assembly convened:
18	22
19	23		Section 1. (NEW) (Effective July 1, 2019) (a) For the purposes of this 1
20	24		section and sections 2 and 3 of this act: 2
21	25		(1) "Electronic wagering platform" or "platform" means the 3
22	26		combination of hardware, software and data networks used to 4
23	27		manage, administer, offer or control sports wagering or casino gaming 5
24	28		over the Internet, including through an Internet web site or a mobile 6
25	29		device; 7
26		-	(2) "Mashantucket Pequot memorandum of understanding" means 8
27		-	the memorandum of understanding entered into by and between the 9
28		-	state and the Mashantucket Pequot Tribe on January 13, 1993, as 10
29		-	amended from time to time; 11
30		-	(3) "Mashantucket Pequot procedures" means the Final 12
31		-	Mashantucket Pequot Gaming Procedures prescribed by the Secretary 13
32		-	of the United States Department of the Interior pursuant to 42 USC 14
33		-	2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 15
34		-	1991), as amended from time to time; 16
35		-	(4) "MMCT Venture, LLC" means a limited liability company (A) 17 Substitute Bill No. 17
	30	+	(2) "Online casino gaming" means any game of chance, including, 8
	31	+	but not limited to, blackjack, poker, dice, money-wheels, roulette, 9
	32	+	baccarat, chuck-a-luck, pan game, over and under, horse race game, 10
	33	+	acey-deucy, beat the dealer, bouncing ball, video facsimile game and 11
	34	+	any other game of chance, conducted over the Internet, including 12
	35	+	through an Internet web site or a mobile device; 13
	36	+	(3) "Mashantucket Pequot memorandum of understanding" means 14
	37	+	Committee Bill No. 17
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42		-	jointly and exclusively owned by the Mashantucket Pequot Tribe and 18
43		-	the Mohegan Tribe of Indians of Connecticut; (B) in which no other 19
44		-	person or business organization holds an equity interest; and (C) in 20
45		-	which each tribe holds at least a twenty-five per cent equity interest; 21
46		-	(5) "Mohegan compact" means the Tribal-State Compact entered 22
47		-	into by and between the state and the Mohegan Tribe of Indians of 23
48		-	Connecticut on May 17, 1994, as amended from time to time; 24
49		-	(6) "Mohegan memorandum of understanding" means the 25
50		-	memorandum of understanding entered into by and between the state 26
51		-	and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 27
52		-	amended from time to time; 28
53		-	(7) "Online casino gaming" means any game of chance, including, 29
54		-	but not limited to, blackjack, poker, dice, money-wheels, roulette, 30
55		-	baccarat, chuck-a-luck, pan game, over and under, horse race game, 31
56		-	acey-deucy, beat the dealer, bouncing ball, video facsimile game and 32
57		-	any other game of chance, conducted over the Internet, including 33
58		-	through an Internet web site or a mobile device; 34
	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	+	(4) "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 42 USC 20
	48	+	2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 21
	49	+	1991), as amended from time to time; 22
	50	+	(5) "MMCT Venture, LLC" means a limited liability company jointly 23
	51	+	and exclusively owned by the Mashantucket Pequot Tribe and the 24
	52	+	Mohegan Tribe of Indians of Connecticut; in which no other person or 25
	53	+	business organization holds an equity interest and each tribe holds at 26
	54	+	least a twenty-five per cent equity interest; 27
	55	+	(6) "Mohegan compact" means the Tribal-State Compact entered 28
	56	+	into by and between the state and the Mohegan Tribe of Indians of 29
	57	+	Connecticut on May 17, 1994, as amended from time to time; 30
	58	+	(7) "Mohegan memorandum of understanding" means the 31
	59	+	memorandum of understanding entered into by and between the state 32
	60	+	and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 33
	61	+	amended from time to time; 34
59	62		(8) "Sporting event" means (A) any sporting or athletic event at 35
60	63		which two or more persons participate and receive compensation in 36
61	64		excess of actual expenses for such participation in such sporting or 37
62	65		athletic event, or (B) any sporting or athletic event sponsored by an 38
63	66		intercollegiate athletic program of an institution of higher education. 39
64	67		"Sporting event" does not include horse racing or any sporting or 40
65	68		athletic event sponsored by a minor league or high school; and 41
66		-	(9) "Sports wagering" or "wagering" means risking or accepting any 42
67		-	money, credit, deposit or other thing of value for gain contingent in 43
68		-	whole or in part (A) by any system or method of wagering, including, 44
69		-	but not limited to, in person or over the Internet through an Internet 45
70		-	web site or a mobile device, and (B) based on (i) a sporting event or a 46
71		-	portion or portions of a sporting event, or (ii) the individual 47
72		-	performance statistics of an athlete or athletes in a sporting event or a 48 Substitute Bill No. 17
	69	+	(9) "Sports wagering" means risking or accepting any money, credit, 42
	70	+	deposit or other thing of value for gain contingent in whole or in part 43
	71	+	(A) by any system or method of wagering, including, but not limited 44
	72	+	Committee Bill No. 17
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79		-	combination of sporting events. "Sports wagering" or "wagering" does 49
80		-	not include the payment of an entry fee to play fantasy contests, as 50
81		-	defined in section 12-578aa of the general statutes. 51
	77	+	to, in person or over the Internet through an Internet web site or a 45
	78	+	mobile device, and (B) based on (i) a sporting event or a portion or 46
	79	+	portions of a sporting event, or (ii) the individual performance 47
	80	+	statistics of an athlete or athletes in a sporting event or a combination 48
	81	+	of sporting events. "Sports wagering" does not include the payment of 49
	82	+	an entry fee to play fantasy contests, as defined in section 12-578aa of 50
	83	+	the general statutes. 51
82	84		(b) (1) The Governor shall enter into amendments to the 52
83	85		Mashantucket Pequot procedures and to the Mashantucket Pequot 53
84	86		memorandum of understanding with the Mashantucket Pequot Tribe 54
85	87		and amendments to the Mohegan compact and to the Mohegan 55
86	88		memorandum of understanding with the Mohegan Tribe of Indians of 56
87	89		Connecticut concerning the operation of sports wagering and online 57
88	90		casino gaming by (A) casino gaming facilities located on Indian lands 58
89	91		pursuant to the Indian Gaming Regulatory Act, P.L. 100-947, 25 USC 59
90	92		2701 et seq., and (B) a casino gaming facility at 171 Bridge Street, East 60
91	93		Windsor, Connecticut operated by MMCT Venture, LLC, as authorized 61
92	94		pursuant to section 12-578f of the general statutes. 62
93	95		(2) The amendments to the Mashantucket Pequot procedures and 63
94	96		the Mohegan compact shall include a provision that any authorization 64
95	97		of the Mashantucket Pequot Tribe, the Mohegan Tribe of Indians of 65
96	98		Connecticut or MMCT Venture, LLC, to conduct sports wagering or 66
97	99		online casino gaming in the state does not terminate the moratorium 67
98	100		against the operation of video facsimile games by the Mashantucket 68
99	101		Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each 69
100	102		tribe's reservation. 70
101	103		(3) The amendments to each tribe's memorandum of understanding 71
102	104		shall include a provision that any authorization of the Mashantucket 72
103	105		Pequot Tribe, the Mohegan Tribe of Indians of Connecticut or MMCT 73
104	106		Venture, LLC, to conduct sports wagering or online casino gaming in 74
105	107		the state does not relieve each tribe from each tribe's obligation to 75
106	108		contribute a percentage of the gross operating revenues of video 76
	109	+	Committee Bill No. 17
	110	+
	111	+
	112	+	LCO No. 5941 4 of 9
	113	+
107	114		facsimile games to the state as provided in each tribe's memorandum 77
108	115		of understanding. 78
109	116		(c) No authorization to conduct sports wagering or online casino 79
110		-	gaming shall be effective unless the following conditions are met: 80 Substitute Bill No. 17
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	117	+	gaming shall be effective unless the following conditions are met: 80
117	118		(1) The amendments to the Mashantucket Pequot procedures and to 81
118	119		the Mohegan compact are approved by the General Assembly 82
119	120		pursuant to section 3-6c of the general statutes. 83
120	121		(2) The amendments to the Mashantucket Pequot memorandum of 84
121	122		understanding and to the Mohegan memorandum of understanding 85
122	123		are approved by the General Assembly pursuant to the process 86
123	124		described in section 3-6c of the general statutes. 87
124	125		(3) The governing bodies of the Mashantucket Pequot Tribe and 88
125	126		Mohegan Tribe of Indians of Connecticut enact resolutions providing 89
126	127		that: (A) If MMCT Venture, LLC, fails to pay any fees or taxes due the 90
127	128		state, the tribes, as the members of MMCT Venture, LLC, waive the 91
128	129		possible defense of sovereign immunity with respect to any action or 92
129	130		claim by the state against the tribes as the members of MMCT Venture, 93
130	131		LLC, to the extent such action or claim is permitted to be brought 94
131	132		against a member of a limited liability company under state law to 95
132	133		collect any fees or taxes, while preserving any other defenses available 96
133	134		to the tribes, and (B) venue for such action or claim shall be in the 97
134	135		judicial district of Hartford. 98
135	136		(d) If MMCT Venture, LLC, ceases to be a limited liability company 99
136	137		jointly and exclusively owned by the Mashantucket Pequot Tribe and 100
137	138		the Mohegan Tribe of Indians of Connecticut in which each tribe holds 101
138	139		at least a twenty-five per cent equity interest, any authorization to 102
139		-	MMCT Venture, LLC, or the casino gaming facility at 171 Bridge 103
140		-	Street, East Windsor, Connecticut, authorized pursuant to section 12-104
141		-	578f of the general statutes, to conduct sports wagering or online 105
142		-	casino gaming shall be void. 106
	140	+	MMCT Venture, LLC or the casino gaming facility at 171 Bridge Street, 103
	141	+	East Windsor, Connecticut, authorized pursuant to section 12-578f of 104
	142	+	the general statutes, to conduct sports wagering or online casino 105
	143	+	gaming shall be void. 106
	144	+	Committee Bill No. 17
	145	+
	146	+
	147	+	LCO No. 5941 5 of 9
	148	+
143	149		Sec. 2. (NEW) (Effective July 1, 2019) (a) An individual may only 107
144	150		place a sports wager on a sporting event or place wagers through an 108
145		-	online casino electronic wagering platform if the wagering is 109
146		-	authorized pursuant to section 1 of this act and the individual has 110
147		-	attained the age of twenty-one and is physically present in the state 111
148		-	when placing the wager. 112 Substitute Bill No. 17
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	151	+	online casino electronic gaming platform if the wagering is authorized 109
	152	+	pursuant to section 1 of this act and the individual has attained the age 110
	153	+	of twenty-one and is physically present in the state when placing the 111
	154	+	wager. 112
155	155		(b) Any electronic wagering platform used for conducting online 113
156	156		sports wagering or online casino gaming shall be developed to: (1) 114
157	157		Verify that an individual with a wagering account is twenty-one years 115
158	158		of age or older and is located in the state, and (2) provide a mechanism 116
159	159		to prevent the unauthorized use of sports wagering accounts and 117
160	160		maintain the security of wagering data, sport bettor's data and other 118
161	161		confidential information. 119
162	162		Sec. 3. (NEW) (Effective July 1, 2019) Not later than twelve months 120
163	163		after the date any authorization of sports wagering or online casino 121
164	164		gaming becomes effective under section 1 of this act, the 122
165	165		Commissioner of Consumer Protection shall adopt regulations, in 123
166	166		accordance with the provisions of chapter 54 of the general statutes, to 124
167	167		implement the provisions of sections 1 and 2 of this act. Such 125
168	168		regulations shall address the operation of, participation in and 126
169		-	advertisement of sports ~~wagering~~ and online casino gaming, including, 127
	169	+	advertisement of sports betting and online casino gaming, including, 127
170	170		but not limited to, provisions to protect the public interest in the 128
171	171		integrity of gaming. The commissioner may implement policies and 129
172	172		procedures while in the process of adopting such regulations, 130
173	173		provided notice of intention to adopt regulations is posted on the 131
174	174		eRegulations System not later than twenty days after implementation. 132
175	175		Any such policy or procedure shall be valid until the time final 133
176	176		regulations are effective. 134
177	177		Sec. 4. Subdivision (2) of section 53-278a of the general statutes is 135
178	178		repealed and the following is substituted in lieu thereof (Effective July 136
179	179		1, 2019): 137
180	180		(2) "Gambling" means risking any money, credit, deposit or other 138
	181	+	Committee Bill No. 17
	182	+
	183	+
	184	+	LCO No. 5941 6 of 9
	185	+
181	186		thing of value for gain contingent in whole or in part upon lot, chance 139
182	187		or the operation of a gambling device, including the playing of a casino 140
183	188		gambling game such as blackjack, poker, craps, roulette or a slot 141
184	189		machine, but does not include: Legal contests of skill, speed, strength 142
185	190		or endurance in which awards are made only to entrants or the owners 143
186	191		of entries; legal business transactions which are valid under the law of 144
187		-	contracts; activity legal under the provisions of sections 7-169 to 7-186, 145 Substitute Bill No. 17
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	192	+	contracts; activity legal under the provisions of sections 7-169 to 7-186, 145
194	193		inclusive; any lottery or contest conducted by or under the authority of 146
195	194		any state of the United States, Commonwealth of Puerto Rico or any 147
196	195		possession or territory of the United States; and other acts or 148
197	196		transactions expressly authorized by law on or after October 1, 1973. 149
198	197		Fantasy contests, as defined in section 12-578aa, shall not be 150
199	198		considered gambling, provided the conditions set forth in subsection 151
200	199		(b) of section 12-578aa have been met and the operator of such contests 152
201	200		is registered pursuant to subdivision (1) of subsection (d) of section 12-153
202	201		578aa. Sports wagering, as defined in section 1 of this act, and online 154
203	202		casino gaming, as defined in section 1 of this act, shall not be 155
204	203		considered gambling if the conditions set forth in section 1 of this act 156
205	204		have been met and the sports wagering or online casino gaming is 157
206	205		conducted pursuant to sections 2 and 3 of this act; 158
207	206		Sec. 5. Subdivision (4) of section 53-278a of the general statutes is 159
208	207		repealed and the following is substituted in lieu thereof (Effective July 160
209	208		1, 2019): 161
210	209		(4) "Gambling device" means any device or mechanism by the 162
211	210		operation of which a right to money, credits, deposits or other things 163
212	211		of value may be created, as the result of the operation of an element of 164
213	212		chance; any device or mechanism which, when operated for a 165
214	213		consideration, does not return the same value or thing of value for the 166
215	214		same consideration upon each operation thereof; any device, 167
216	215		mechanism, furniture or fixture designed primarily for use in 168
217	216		connection with professional gambling; and any subassembly or 169
218	217		essential part designed or intended for use in connection with any 170
219	218		such device, mechanism, furniture, fixture, construction or installation, 171
	219	+	Committee Bill No. 17
	220	+
	221	+
	222	+	LCO No. 5941 7 of 9
	223	+
220	224		provided an immediate and unrecorded right of replay mechanically 172
221	225		conferred on players of pinball machines and similar amusement 173
222	226		devices shall be presumed to be without value. "Gambling device" 174
223	227		does not include a crane game machine or device or a redemption 175
224	228		machine. A device or equipment used to play fantasy contests, as 176
225	229		defined in section 12-578aa, shall not be considered a gambling device, 177
226		-	provided the conditions set forth in subsection (b) of section 12-578aa 178 Substitute Bill No. 17
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	230	+	provided the conditions set forth in subsection (b) of section 12-578aa 178
233	231		have been met. A device or equipment used to participate in sports 179
234	232		wagering, as defined in section 1 of this act, or online casino gaming, 180
235	233		as defined in section 1 of this act, shall not be considered a gambling 181
236	234		device if the conditions set forth in sections 1 to 3, inclusive, of this act 182
237	235		have been met; 183
238	236		Sec. 6. Section 12-806c of the general statutes is repealed and the 184
239	237		following is substituted in lieu thereof (Effective July 1, 2019): 185
240	238		(a) Notwithstanding the provisions of section 3-6c, the Secretary of 186
241	239		the Office of Policy and Management, on behalf of the state of 187
242	240		Connecticut, may enter into separate agreements with the 188
243	241		Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of 189
244	242		Connecticut concerning the operation of keno by the Connecticut 190
245	243		Lottery Corporation in the state of Connecticut. Any such agreement 191
246	244		shall provide that the state of Connecticut shall distribute to each tribe 192
247	245		a sum not to exceed a twelve and one-half per cent share of the gross 193
248	246		operating revenue received by the state from the operation of keno. 194
249	247		The corporation may not operate keno until such separate agreements 195
250	248		are effective. For the purposes of this section, "gross operating 196
251	249		revenues" means the total amounts wagered, less amounts paid out as 197
252	250		prizes. 198
253	251		(b) Notwithstanding the provisions of section 3-6c, the secretary, on 199
254	252		behalf of the state, may enter amendments to such agreements 200
255	253		described in subsection (a) of this section concerning the operation of 201
256	254		keno gaming over the Internet by the Connecticut Lottery Corporation 202
257	255		in the state of Connecticut. 203
	256	+	Committee Bill No. 17
	257	+
	258	+
	259	+	LCO No. 5941 8 of 9
	260	+
258	261		(c) Any electronic platform or combination of hardware, software 204
259	262		and data networks used to manage, administer, offer or control keno 205
260	263		gaming over the Internet, including through an Internet web site or a 206
261	264		mobile device, shall at a minimum be developed to: (1) Verify that an 207
262	265		individual with a keno account is eighteen years of age or older and is 208
263	266		located in the state, and (2) provide a mechanism to prevent the 209
264		-	unauthorized use of a keno account and maintain the security of data 210 Substitute Bill No. 17
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	267	+	unauthorized use of a keno account and maintain the security of data 210
271	268		and other confidential information. 211
272	269		Sec. 7. Section 12-565a of the general statutes is repealed. (Effective 212
273	270		July 1, 2019) 213
274	271		This act shall take effect as follows and shall amend the following
275	272		sections:
276	273
277	274		Section 1 July 1, 2019 New section
278	275		Sec. 2 July 1, 2019 New section
279	276		Sec. 3 July 1, 2019 New section
280	277		Sec. 4 July 1, 2019 53-278a(2)
281	278		Sec. 5 July 1, 2019 53-278a(4)
282	279		Sec. 6 July 1, 2019 12-806c
283	280		Sec. 7 July 1, 2019 Repealer section
284	281
285		-	Statement of Legislative Commissioners:
286		-	In Section 1, subdivisions were renumbered for consistency with
287		-	standard drafting conventions; in Section 1(a)(4), subdivisions were
288		-	inserted for clarity; and in Sections 2 and 3, "gaming" and "betting"
289		-	were changed to "wagering" for consistency with other provisions of
290		-	the section.
	282	+	Statement of Purpose:
	283	+	To authorize sports wagering, Internet gaming and Internet keno
	284	+	under certain circumstances.
291	285
292		-	PS Joint Favorable Subst. -LCO
	286	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	287	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	288	+	not underlined.]
293	289
	290	+	Co-Sponsors: SEN. OSTEN, 19th Dist.; REP. RYAN, 139th Dist.
	291	+	REP. CONLEY, 40th Dist.; SEN. CASSANO, 4th Dist.
	292	+	REP. RILEY, 46th Dist.; REP. DE LA CRUZ, 41st Dist.
	293	+	REP. JOHNSON, 49th Dist.; REP. DUBITSKY, 47th Dist.
	294	+	REP. FRANCE, 42nd Dist.; REP. CHEESEMAN, 37th Dist.
	295	+	SEN. FORMICA, 20th Dist.; SEN. SOMERS, 18th Dist.
	296	+	REP. ROTELLA, 43rd Dist.; REP. SIMMS, 140th Dist.
	297	+	REP. BUTLER, 72nd Dist.; REP. GENGA, 10th Dist.
	298	+	REP. NOLAN AN, 39th Dist.
	299	+	Committee Bill No. 17
	300	+
	301	+
	302	+	LCO No. 5941 9 of 9
	303	+
	304	+
	305	+	S.B. 17