| 11 | | - | to provide for legislative findings; to provide for definitions; to provide for the corporation's7 |
|---|
| 12 | | - | powers and duties relative to sports betting; to provide for the procedures, limitations,8 |
|---|
| 13 | | - | requirements, and qualifications of the licensing of any person offering, operating, or9 |
|---|
| 14 | | - | managing sports betting in this state; to provide for rules and regulations promulgated by the10 |
|---|
| 15 | | - | corporation; to provide for a privilege tax; to require certain reports; to regulate wagers and11 |
|---|
| 16 | | - | provide requirements for bettors; to provide for bettors to restrict themselves from placing12 |
|---|
| 17 | | - | certain wagers; to provide certain resources for individuals with problem gambling or a13 |
|---|
| 18 | | - | betting or gambling disorder; to provide for the collection and disposition of fees and fines;14 |
|---|
| 19 | | - | to prohibit certain conduct by the corporation, employees of the corporation, licensees, and15 |
|---|
| 20 | | - | other persons; to provide for certain penalties; to provide for construction; to amend Part 116 |
|---|
| 21 | | - | of Article 2 of Chapter 12 of Title 16 of the Official Code of Georgia Annotated, relating to17 |
|---|
| 22 | | - | gambling, so as to exclude any consideration paid to a sports betting licensee from the18 |
|---|
| 23 | | - | S. B. 386 (SUB) |
|---|
| 24 | | - | - 1 - 24 LC 36 5897S |
|---|
| 25 | | - | definition of "bet"; to provide for the exemption of persons licensed for online sports betting19 |
|---|
| 26 | | - | from regulations and restrictions regarding gambling information; to amend Title 48 of the20 |
|---|
| 27 | | - | Official Code of Georgia Annotated, relating to revenue and taxation, so as to exempt wagers21 |
|---|
| 28 | | - | placed as part of sports betting; to provide for related matters; to provide for a contingent22 |
|---|
| 29 | | - | effective date and automatic repeal; to repeal conflicting laws; and for other purposes.23 |
|---|
| 30 | | - | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:24 |
|---|
| 31 | | - | PART I25 |
|---|
| 32 | | - | SECTION 1-1.26 |
|---|
| 33 | | - | Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended27 |
|---|
| 34 | | - | in Code Section 50-27-9, relating to general powers of the Georgia Lottery Corporation, by28 |
|---|
| 35 | | - | revising paragraphs (18) and (19) of subsection (a) and adding a new paragraph to read as29 |
|---|
| 36 | | - | follows:30 |
|---|
| 37 | | - | "(18) To act as a retailer, to conduct promotions which involve the dispensing of lottery31 |
|---|
| 38 | | - | tickets or shares, and to establish and operate a sales facility to sell lottery tickets or32 |
|---|
| 39 | | - | shares and any related merchandise; and33 |
|---|
| 40 | | - | (19) To perform any actions and carry out any responsibilities provided for in Article 434 |
|---|
| 41 | | - | of this chapter; and35 |
|---|
| 42 | | - | (19)(20) To adopt and amend such regulations, policies, and procedures as necessary to36 |
|---|
| 43 | | - | carry out and implement its powers and duties, organize and operate the corporation,37 |
|---|
| 44 | | - | regulate the conduct of lottery games in general, and any other matters necessary or38 |
|---|
| 45 | | - | desirable for the efficient and effective operation of the lottery or the convenience of the39 |
|---|
| 46 | | - | public. The promulgation of any such regulations, policies, and procedures shall be40 |
|---|
| 47 | | - | exempt from the requirements of Chapter 13 of this title, the 'Georgia Administrative41 |
|---|
| 48 | | - | Procedure Act.'"42 |
|---|
| 49 | | - | S. B. 386 (SUB) |
|---|
| 50 | | - | - 2 - 24 LC 36 5897S |
|---|
| 51 | | - | SECTION 1-2.43 |
|---|
| 52 | | - | Said title is further amended in Code Section 50-27-13, relating to disposition of lottery44 |
|---|
| 53 | | - | proceeds, budget report by Governor, appropriations by General Assembly, and shortfall45 |
|---|
| 54 | | - | reserve subaccount, by revising paragraph (3) of subsection (b) as follows:46 |
|---|
| 55 | | - | "(3)(A) Beginning in Fiscal Year 2025, a A shortfall reserve shall be maintained within47 |
|---|
| 56 | | - | the Lottery for Education Account in an amount equal to at least the greater of 5048 |
|---|
| 57 | | - | percent of the average amount of the appropriations from such account for the49 |
|---|
| 58 | | - | preceding three fiscal years or 10 percent of net proceeds deposited into such account50 |
|---|
| 59 | | - | for the preceding fiscal year, with such amount hereinafter being referred to as the51 |
|---|
| 60 | | - | minimum reserve. Beginning in Fiscal Year 2025 and for each fiscal year thereafter,52 |
|---|
| 61 | | - | if on the last day of the preceding fiscal year the total reserve fund balance exceeds the53 |
|---|
| 62 | | - | minimum reserve, an amount equal to 10 percent of the excess reserve funds, meaning54 |
|---|
| 63 | | - | the amount that the total reserve fund balance exceeds the minimum reserve, shall be55 |
|---|
| 64 | | - | appropriated for educational purposes and programs.56 |
|---|
| 65 | | - | (B) If the net proceeds paid into the Lottery for Education Account in any year are not57 |
|---|
| 66 | | - | sufficient to meet the amount appropriated for education educational purposes and58 |
|---|
| 67 | | - | programs, the shortfall reserve may be drawn upon to meet the deficiency and any59 |
|---|
| 68 | | - | amount so drawn may count for purposes of appropriations in subparagraph (A) of this60 |
|---|
| 69 | | - | paragraph.61 |
|---|
| 70 | | - | (C) If In the event the shortfall reserve is drawn upon and falls below the greater of 5062 |
|---|
| 71 | | - | percent of the average amount of the appropriations from of net proceeds deposited into63 |
|---|
| 72 | | - | such account for the preceding three fiscal year years or 10 percent of the net proceeds64 |
|---|
| 73 | | - | deposited into such account for the preceding fiscal year, the shortfall reserve shall be65 |
|---|
| 74 | | - | replenished to the level required by subparagraph (A) of this paragraph in the next66 |
|---|
| 75 | | - | fiscal year and the lottery-funded lottery funded programs shall be reviewed and67 |
|---|
| 76 | | - | adjusted accordingly."68 |
|---|
| 77 | | - | S. B. 386 (SUB) |
|---|
| 78 | | - | - 3 - 24 LC 36 5897S |
|---|
| 79 | | - | PART II69 |
|---|
| 80 | | - | SECTION 2-1.70 |
|---|
| 81 | | - | Said title is further amended by adding a new article to Chapter 27, relating to the "Georgia71 |
|---|
| 82 | | - | Lottery for Education Act," to read as follows:72 |
|---|
| 83 | | - | "ARTICLE 473 |
|---|
| 84 | | - | Part 174 |
|---|
| 85 | | - | 50-27-120.75 |
|---|
| 86 | | - | This article shall be known and may be cited as the 'Georgia Sports Betting Act.'76 |
|---|
| 87 | | - | 50-27-121.77 |
|---|
| 88 | | - | The General Assembly finds that:78 |
|---|
| 89 | | - | (1) Sports betting shall be overseen and regulated, and may also be offered, by the79 |
|---|
| 90 | | - | Georgia Lottery Corporation in a manner that provides continuing entertainment to the80 |
|---|
| 91 | | - | public, maximizes revenues, protects consumers, and ensures that sports betting is81 |
|---|
| 92 | | - | operated in this state with integrity and dignity and free of political influence;82 |
|---|
| 93 | | - | (2) The corporation shall be accountable to the General Assembly and to the public for83 |
|---|
| 94 | | - | the management and oversight of sports betting in this state through a system of audits84 |
|---|
| 95 | | - | and reports;85 |
|---|
| 96 | | - | (3) The ability to offer sports betting in this state under a license issued in accordance86 |
|---|
| 97 | | - | with this article constitutes a taxable privilege and not a right;87 |
|---|
| 98 | | - | (4) Net proceeds of sports betting conducted pursuant to this article shall be used for the88 |
|---|
| 99 | | - | purposes authorized by Article I, Section II, Paragraph VIII of the Constitution; and89 |
|---|
| 100 | | - | (5) In accordance with Code Section 50-27-2, sports betting shall be conducted in a90 |
|---|
| 101 | | - | manner so as to safeguard the fiscal soundness of the state, to enhance public welfare, and91 |
|---|
| 102 | | - | S. B. 386 (SUB) |
|---|
| 103 | | - | - 4 - 24 LC 36 5897S |
|---|
| 104 | | - | to support the funding authorized by Article I, Section II, Paragraph VIII(c) of the92 |
|---|
| 105 | | - | Constitution.93 |
|---|
| 106 | | - | 50-27-122.94 |
|---|
| 107 | | - | As used in this article, the term:95 |
|---|
| 108 | | - | (1) 'Adjusted gross income' means the total of all moneys paid to a licensee as wagers96 |
|---|
| 109 | | - | minus federal excise taxes and minus the total amount paid out to winning bettors,97 |
|---|
| 110 | | - | including the cash value of merchandise awarded as winnings.98 |
|---|
| 111 | | - | (2) 'Applicant' means any person that applies for a license under this article.99 |
|---|
| 112 | | - | (3) 'Bettor' means an individual who is:100 |
|---|
| 113 | | - | (A) Physically present in this state when placing a wager with a licensee;101 |
|---|
| 114 | | - | (B) Twenty-one years of age or older; and102 |
|---|
| 115 | | - | (C) Not prohibited from placing a wager or bet under Code Section 50-27-162.103 |
|---|
| 116 | | - | (4) 'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves104 |
|---|
| 117 | | - | to account for losses suffered by a licensee and owed to bettors.105 |
|---|
| 118 | | - | (5) 'Cheating' means improving the chances of winning or altering the outcome through106 |
|---|
| 119 | | - | deception, interference, or manipulation of a sporting event or of any equipment,107 |
|---|
| 120 | | - | including software, pertaining to or used in relation to the equipment used for or in108 |
|---|
| 121 | | - | connection with the sporting event on which wagers are placed or invited. Such term109 |
|---|
| 122 | | - | shall include match fixing and attempts and conspiracy to cheat.110 |
|---|
| 123 | | - | (6) 'Collegiate sporting event' means a sporting or athletic event involving a sports or111 |
|---|
| 124 | | - | athletic team of a public or private institution of higher education.112 |
|---|
| 125 | | - | (7) 'Esports event' means an organized video game competition between players who113 |
|---|
| 126 | | - | play individually or as teams.114 |
|---|
| 127 | | - | (8) 'Fantasy or simulated contest' means a game or event in which one or more players115 |
|---|
| 128 | | - | compete based on winning outcomes that reflect the relative knowledge and skill of the116 |
|---|
| 129 | | - | S. B. 386 (SUB) |
|---|
| 130 | | - | - 5 - 24 LC 36 5897S |
|---|
| 131 | | - | players and are determined predominately by accumulated statistical results of the117 |
|---|
| 132 | | - | performance of individuals, including, but not limited to, athletes in sporting events.118 |
|---|
| 133 | | - | (9) 'Fixed-odds betting' means bets made at predetermined odds or on the spread where119 |
|---|
| 134 | | - | the return to the bettor is unaffected by any later change in odds or the spread.120 |
|---|
| 135 | | - | (10) 'Futures wager' means a wager made on the occurrence of an event in the future121 |
|---|
| 136 | | - | relating to a sporting event.122 |
|---|
| 137 | | - | (11) 'Institutional investor' means:123 |
|---|
| 138 | | - | (A) A retirement fund administered by a public agency for the exclusive benefit of124 |
|---|
| 139 | | - | federal, state, or local public employees;125 |
|---|
| 140 | | - | (B) An investment company registered under the Investment Company Act of 1940;126 |
|---|
| 141 | | - | (C) A chartered or licensed life insurance company or property and casualty insurance127 |
|---|
| 142 | | - | company;128 |
|---|
| 143 | | - | (D) A banking and other chartered or licensed lending institution;129 |
|---|
| 144 | | - | (E) An investment advisor registered under the Investment Advisers Act of 1940; or130 |
|---|
| 145 | | - | (F) A pension investment board.131 |
|---|
| 146 | | - | (12) 'License' means any of the licenses issued by the corporation under this article.132 |
|---|
| 147 | | - | (13) 'Licensee' means a person that holds a license issued by the corporation under this133 |
|---|
| 148 | | - | article.134 |
|---|
| 149 | | - | (14) 'Master sports betting licensee' means the Georgia Lottery Corporation.135 |
|---|
| 150 | | - | (15) 'Material nonpublic information' means information that has not been disseminated136 |
|---|
| 151 | | - | publicly concerning an athlete, contestant, prospective contestant, or athletic team,137 |
|---|
| 152 | | - | including, without limitation, confidential information related to medical conditions or138 |
|---|
| 153 | | - | treatment, physical or mental health or conditioning, physical therapy or recovery,139 |
|---|
| 154 | | - | discipline, sanctions, academic status, education records, eligibility, playbooks, signals,140 |
|---|
| 155 | | - | schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or141 |
|---|
| 156 | | - | recordings of practices or other athletic activities.142 |
|---|
| 157 | | - | S. B. 386 (SUB) |
|---|
| 158 | | - | - 6 - 24 LC 36 5897S |
|---|
| 159 | | - | (16) 'Merchandise' means any goods or services provided to bettors free of charge, at a143 |
|---|
| 160 | | - | discounted rate, or in the form of a rebate or credit.144 |
|---|
| 161 | | - | (17) 'Minor' means an individual who is less than 21 years of age.145 |
|---|
| 162 | | - | (18) 'Moneyline wager' means the fixed odds in relation to a dollar amount that a team146 |
|---|
| 163 | | - | or person participating in a sporting event will win outright regardless of the spread.147 |
|---|
| 164 | | - | (19) 'Official event data' means statistics, results, outcomes, and other data related to a148 |
|---|
| 165 | | - | sporting event obtained pursuant to an agreement with the relevant sporting events149 |
|---|
| 166 | | - | operator whose corporate headquarters is based in the United States or an entity expressly150 |
|---|
| 167 | | - | authorized by such sporting events operator to provide such information to licensees for151 |
|---|
| 168 | | - | purposes of determining the outcome of tier 2 sports wagers on such sporting event.152 |
|---|
| 169 | | - | (20) 'Official league data' means statistics, results, outcomes, and other data related to153 |
|---|
| 170 | | - | a sporting event obtained pursuant to an agreement with the relevant professional sports154 |
|---|
| 171 | | - | governing body whose corporate headquarters is based in the United States or an entity155 |
|---|
| 172 | | - | expressly authorized by such professional sports governing body to provide such156 |
|---|
| 173 | | - | information to licensees for purposes of determining the outcome of tier 2 sports wagers.157 |
|---|
| 174 | | - | (21) 'Online sports betting' means a wager on a sporting event that is placed via the158 |
|---|
| 175 | | - | internet through any electronic device and accepted through an online sports betting159 |
|---|
| 176 | | - | platform.160 |
|---|
| 177 | | - | (22) 'Online sports betting platform' means the combination of hardware, software, and161 |
|---|
| 178 | | - | data networks used to manage, administer, or control online sports betting and any162 |
|---|
| 179 | | - | associated wagers accessible by any electronic means.163 |
|---|
| 180 | | - | (23) 'Online sports betting services provider' means a person that contracts with the164 |
|---|
| 181 | | - | master sports betting licensee or a Type 1 sports betting licensee under Code Section165 |
|---|
| 182 | | - | 50-27-133 to operate online sports betting on behalf of such licensee and that is licensed166 |
|---|
| 183 | | - | by the corporation.167 |
|---|
| 184 | | - | S. B. 386 (SUB) |
|---|
| 185 | | - | - 7 - 24 LC 36 5897S |
|---|
| 186 | | - | (24) 'Over/under wager' means a single wager that predicts whether the combined score168 |
|---|
| 187 | | - | of the two persons or teams engaged in a sporting event will be lower or higher than a169 |
|---|
| 188 | | - | predetermined number.170 |
|---|
| 189 | | - | (25) 'Parlay wager' means a single wager that incorporates two or more individual bets171 |
|---|
| 190 | | - | for purposes of earning a higher payout if each bet incorporated within the wager wins.172 |
|---|
| 191 | | - | (26) 'Person' means an individual or entity.173 |
|---|
| 192 | | - | (27) 'Principal owner' means a person that owns an interest of 10 percent or more of the174 |
|---|
| 193 | | - | entity.175 |
|---|
| 194 | | - | (28) 'Professional sporting event' means an athletic or sporting event involving at least176 |
|---|
| 195 | | - | two competitors who have the opportunity to receive compensation for participating in177 |
|---|
| 196 | | - | such event.178 |
|---|
| 197 | | - | (29) 'Professional sports governing body' means the organization, league, or association179 |
|---|
| 198 | | - | whose corporate headquarters is based in the United States that oversees a sport and180 |
|---|
| 199 | | - | prescribes final rules and enforces codes of conduct with respect to such sport and181 |
|---|
| 200 | | - | participants therein.182 |
|---|
| 201 | | - | (30) 'Professional sports team' means a major league professional team:183 |
|---|
| 202 | | - | (A) Based in this state;184 |
|---|
| 203 | | - | (B) That plays baseball, football, men's basketball, soccer, or women's basketball; and185 |
|---|
| 204 | | - | (C) Whose regular season games have had the highest attendance for its respective186 |
|---|
| 205 | | - | professional sport in the state during the past five years.187 |
|---|
| 206 | | - | (31) 'Proposition wager' means a wager on a single specific action, statistic, occurrence,188 |
|---|
| 207 | | - | or nonoccurrence to be determined during a sporting event and includes any such action,189 |
|---|
| 208 | | - | statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of190 |
|---|
| 209 | | - | the sporting event to which it relates.191 |
|---|
| 210 | | - | (32) 'Relative' means a spouse, father, mother, son, daughter, grandfather, grandmother,192 |
|---|
| 211 | | - | brother, sister, uncle, aunt, cousin, nephew, niece, father-in-law, mother-in-law,193 |
|---|
| 212 | | - | S. B. 386 (SUB) |
|---|
| 213 | | - | - 8 - 24 LC 36 5897S |
|---|
| 214 | | - | son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,194 |
|---|
| 215 | | - | stepson, stepdaughter, stepbrother, stepsister, half-brother, or half-sister.195 |
|---|
| 216 | | - | (33) 'Sporting event' means any:196 |
|---|
| 217 | | - | (A) Professional sporting or professional athletic event, including motor sports197 |
|---|
| 218 | | - | sanctioned by a national or international organization or association;198 |
|---|
| 219 | | - | (B) Collegiate sporting event;199 |
|---|
| 220 | | - | (C) Olympic sporting or athletic event;200 |
|---|
| 221 | | - | (D) Sporting or athletic event sanctioned by a national or international organization or201 |
|---|
| 222 | | - | association;202 |
|---|
| 223 | | - | (E) Sporting or athletic event conducted or organized by a sporting events operator;203 |
|---|
| 224 | | - | (F) Esports event; or204 |
|---|
| 225 | | - | (G) Other event authorized by the corporation.205 |
|---|
| 226 | | - | Such term shall not include a nonprofessional, noncollegiate, or non-Olympic sporting206 |
|---|
| 227 | | - | or athletic event if the majority of the participants are under the age of 18 years and shall207 |
|---|
| 228 | | - | not include any Special Olympics sporting or athletic event.208 |
|---|
| 229 | | - | (34) 'Sporting events operator' means a person that conducts or organizes a sporting209 |
|---|
| 230 | | - | event for athletes or other participants that is not held or sanctioned as an official sporting210 |
|---|
| 231 | | - | event of a professional sports governing body.211 |
|---|
| 232 | | - | (35) 'Sports betting' means online sports betting.212 |
|---|
| 233 | | - | (36) 'Sports betting equipment' means any of the following that is directly used in213 |
|---|
| 234 | | - | connection with the operation of sports betting:214 |
|---|
| 235 | | - | (A) Any mechanical, electronic, or other device, mechanism, or equipment;215 |
|---|
| 236 | | - | (B) Any software, application, components, or other goods; or216 |
|---|
| 237 | | - | (C) Anything to be installed or used on a personal electronic device.217 |
|---|
| 238 | | - | (37)(A) 'Sports betting supplier' means a person that provides sports betting equipment218 |
|---|
| 239 | | - | necessary for the creation of sports betting markets and the determination of bet219 |
|---|
| 240 | | - | S. B. 386 (SUB) |
|---|
| 241 | | - | - 9 - 24 LC 36 5897S |
|---|
| 242 | | - | outcomes, directly to any licensee involved in the acceptance of bets, including any of220 |
|---|
| 243 | | - | the following:221 |
|---|
| 244 | | - | (i) Providers of data feeds and odds services;222 |
|---|
| 245 | | - | (ii) Platform providers;223 |
|---|
| 246 | | - | (iii) Risk management providers:224 |
|---|
| 247 | | - | (iv) Integrity monitoring providers; and225 |
|---|
| 248 | | - | (v) Other providers of sports betting supplier services as determined by the226 |
|---|
| 249 | | - | corporation.227 |
|---|
| 250 | | - | (B) Such term shall not include a professional sports governing body that:228 |
|---|
| 251 | | - | (i) Provides official league data concerning its own sporting event to a sports betting229 |
|---|
| 252 | | - | licensee solely on that basis; or230 |
|---|
| 253 | | - | (ii) Provides raw statistical match data to one or more designated and licensed231 |
|---|
| 254 | | - | suppliers of data feeds and odds services solely on that basis.232 |
|---|
| 255 | | - | (38) 'Spread' means the predicted scoring differential between two persons or teams233 |
|---|
| 256 | | - | engaged in a sporting event.234 |
|---|
| 257 | | - | (39) 'Supervisory employee' means a principal owner or employee having the authority235 |
|---|
| 258 | | - | to act on behalf of a licensee whose judgment is relied upon to manage and advance the236 |
|---|
| 259 | | - | sports betting business operations of a licensee.237 |
|---|
| 260 | | - | (40) 'Tier 1 sports wager' means a sports wager that is determined solely by the final238 |
|---|
| 261 | | - | score or final outcome of the sporting event and is placed before the sporting event has239 |
|---|
| 262 | | - | begun.240 |
|---|
| 263 | | - | (41) 'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.241 |
|---|
| 264 | | - | (42) 'Type 1 eligible entity' means any of the following:242 |
|---|
| 265 | | - | (A) Any professional sports team;243 |
|---|
| 266 | | - | (B) A professional sports governing body that holds one or more sanctioned annual244 |
|---|
| 267 | | - | golf tournaments on a national tour of professional golf in this state, and has held one245 |
|---|
| 268 | | - | S. B. 386 (SUB) |
|---|
| 269 | | - | - 10 - 24 LC 36 5897S |
|---|
| 270 | | - | or more of the same or different sanctioned annual golf tournaments on a national tour246 |
|---|
| 271 | | - | of professional golf in this state for at least 30 years;247 |
|---|
| 272 | | - | (C) The owner of a facility in this state that has held an annual invitational golf248 |
|---|
| 273 | | - | tournament for professional and amateur golfers for at least 30 years;249 |
|---|
| 274 | | - | (D) The owner of a facility located in this state that hosts automobile races on a250 |
|---|
| 275 | | - | national association for stock car racing national tour or a wholly owned for-profit251 |
|---|
| 276 | | - | subsidiary of the owner of such a facility, if the owner is a nonprofit corporation or252 |
|---|
| 277 | | - | nonprofit organization; and253 |
|---|
| 278 | | - | (E) The Georgia Lottery Corporation.254 |
|---|
| 279 | | - | (43) 'Type 1 sports betting licensee' means the master sports betting licensee, an online255 |
|---|
| 280 | | - | sports betting services provider awarded a Type 1 license via the public procurement256 |
|---|
| 281 | | - | process by the master sports betting licensee, or a Type 1 eligible entity licensed or257 |
|---|
| 282 | | - | authorized by the corporation to directly or indirectly offer online sports betting.258 |
|---|
| 283 | | - | (44) 'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown259 |
|---|
| 284 | | - | outcome of one or more sporting events or portions of sporting events. Such term shall260 |
|---|
| 285 | | - | include single-game wagers, futures wagers, tier 1 or tier 2 wagers, teaser wagers, parlay261 |
|---|
| 286 | | - | wagers, over/under wagers, moneyline wagers, pools, exchange wagering, in-game262 |
|---|
| 287 | | - | wagering, in-play wagers, proposition wagers, straight wagers, fixed-odds betting, and263 |
|---|
| 288 | | - | any other bet or wager approved by the corporation. Such term shall not include a264 |
|---|
| 289 | | - | pari-mutuel bet or wager or an entry fee paid to participate in a fantasy or simulated265 |
|---|
| 290 | | - | contest.266 |
|---|
| 291 | | - | 50-27-123.267 |
|---|
| 292 | | - | (a) The corporation shall have all powers and duties necessary to carry out the provisions268 |
|---|
| 293 | | - | of this article and to exercise the control of sports betting in this state as authorized by this269 |
|---|
| 294 | | - | article. Such powers and duties shall include, but shall not be limited to, the following:270 |
|---|
| 295 | | - | S. B. 386 (SUB) |
|---|
| 296 | | - | - 11 - 24 LC 36 5897S |
|---|
| 297 | | - | (1) To have jurisdiction, supervision, and regulatory authority over sports betting,271 |
|---|
| 298 | | - | including, but not limited to, regulation, licensure, and offering of sports betting on272 |
|---|
| 299 | | - | mobile applications available state wide via the internet and through a limited number of273 |
|---|
| 300 | | - | licenses to be awarded to Type 1 sports betting licensees;274 |
|---|
| 301 | | - | (2) To appoint and employ such persons as the corporation deems essential to perform275 |
|---|
| 302 | | - | its duties under this article and to ensure that such sports betting is conducted with order276 |
|---|
| 303 | | - | and the highest integrity. Such employees shall possess such authority and perform such277 |
|---|
| 304 | | - | duties as the corporation shall prescribe or delegate to them. Such employees shall be278 |
|---|
| 305 | | - | compensated as provided by the corporation;279 |
|---|
| 306 | | - | (3) To enter upon, investigate, and have free access to all places of business of any280 |
|---|
| 307 | | - | licensee under this article and to compel the production of any books, ledgers, documents,281 |
|---|
| 308 | | - | records, memoranda, or other information of any licensee to ensure such licensee's282 |
|---|
| 309 | | - | compliance with the rules and regulations promulgated by the corporation pursuant to this283 |
|---|
| 310 | | - | article;284 |
|---|
| 311 | | - | (4) To promulgate any rules and regulations as the corporation deems necessary and285 |
|---|
| 312 | | - | proper to administer the provisions of this article; provided, however, that the initial rules286 |
|---|
| 313 | | - | and regulations governing sports betting shall be promulgated, provided for a period of287 |
|---|
| 314 | | - | public comment, and adopted by the corporation within 90 days of the effective date of288 |
|---|
| 315 | | - | this article. Such initial rules and regulations and all other rules and regulations of the289 |
|---|
| 316 | | - | corporation promulgated and adopted pursuant to this article shall not be subject to290 |
|---|
| 317 | | - | Chapter 13 of this title, the 'Georgia Administrative Procedure Act';291 |
|---|
| 318 | | - | (5) To issue subpoenas for the attendance of witnesses before the corporation, administer292 |
|---|
| 319 | | - | oaths, and compel production of records or other documents and testimony of witnesses293 |
|---|
| 320 | | - | whenever, in the judgment of the corporation, it is necessary to do so for the effectual294 |
|---|
| 321 | | - | discharge of the duties of the corporation under this article;295 |
|---|
| 322 | | - | (6) To compel any person licensed by the corporation to file with the corporation such296 |
|---|
| 323 | | - | data, documents, and information as shall appear to the corporation to be necessary for297 |
|---|
| 324 | | - | S. B. 386 (SUB) |
|---|
| 325 | | - | - 12 - 24 LC 36 5897S |
|---|
| 326 | | - | the performance of the duties of the corporation under this article, including, but not298 |
|---|
| 327 | | - | limited to, financial statements and information relative to stockholders and all others299 |
|---|
| 328 | | - | with a pecuniary interest in such person;300 |
|---|
| 329 | | - | (7) To prescribe the manner in which books and records of persons licensed or permitted301 |
|---|
| 330 | | - | by the corporation under this article shall be kept;302 |
|---|
| 331 | | - | (8) To enter into arrangements with any foreign or domestic government or303 |
|---|
| 332 | | - | governmental agency for the purposes of exchanging information or performing any other304 |
|---|
| 333 | | - | act to better ensure the proper conduct of betting under this article;305 |
|---|
| 334 | | - | (9) To order such audits, in addition to those otherwise required by this article, as the306 |
|---|
| 335 | | - | corporation deems necessary and desirable;307 |
|---|
| 336 | | - | (10) Upon the receipt of a complaint of an alleged criminal violation of this article, to308 |
|---|
| 337 | | - | immediately report such complaint to the appropriate law enforcement agency with309 |
|---|
| 338 | | - | jurisdiction to investigate criminal activity;310 |
|---|
| 339 | | - | (11) To provide for the reporting of the applicable amount of state and federal income311 |
|---|
| 340 | | - | tax of persons claiming a prize or payoff for a winning wager under this article;312 |
|---|
| 341 | | - | (12) To establish and administer programs for providing assistance to individuals with313 |
|---|
| 342 | | - | problem gambling or a betting or gambling disorder, including, but not limited to:314 |
|---|
| 343 | | - | (A) Educating potential gamblers of methods and types of bets and fairly informing315 |
|---|
| 344 | | - | potential gamblers of the odds or likelihood of winning such bets;316 |
|---|
| 345 | | - | (B) Establishing and administering programs for educating potential gamblers about317 |
|---|
| 346 | | - | responsible gambling, the warning signs of problem gambling or betting or gambling318 |
|---|
| 347 | | - | disorders and how to prevent and treat problem gambling or betting or gambling319 |
|---|
| 348 | | - | disorders;320 |
|---|
| 349 | | - | (C) Developing and funding responsible gaming education campaigns coupled with321 |
|---|
| 350 | | - | prevention and education efforts within communities that raise awareness of potential322 |
|---|
| 351 | | - | signs or risk factors of problem gambling or betting or gambling disorders;323 |
|---|
| 352 | | - | S. B. 386 (SUB) |
|---|
| 353 | | - | - 13 - 24 LC 36 5897S |
|---|
| 354 | | - | (D) Encouraging the use of harm-minimizing measures by bettors, such as excluding324 |
|---|
| 355 | | - | or limiting oneself from obtaining credit extensions, making credit card or cashless325 |
|---|
| 356 | | - | payments, cashing checks, and making automated teller machine withdrawals, as well326 |
|---|
| 357 | | - | as utilizing limit-setting tools and personal data and information to make informed327 |
|---|
| 358 | | - | decisions about gambling;328 |
|---|
| 359 | | - | (E) Promulgating rules and regulations that enable bettors to self-limit with a licensee329 |
|---|
| 360 | | - | and self-exclude from sports betting activities state wide. Any such rules or regulations330 |
|---|
| 361 | | - | related to self-exclusion shall require the individual seeking self-exclusion to provide331 |
|---|
| 362 | | - | identifying information, including, at a minimum, full name, address, date of birth, and332 |
|---|
| 363 | | - | social security number;333 |
|---|
| 364 | | - | (F) Adopting processes for individuals to express concerns related to problem334 |
|---|
| 365 | | - | gambling or betting or gambling disorders to the corporation;335 |
|---|
| 366 | | - | (G) Developing state-wide advertising guidelines to ensure that the marketing of sports336 |
|---|
| 367 | | - | betting is not targeted to minors and does not include content, themes, and promotions337 |
|---|
| 368 | | - | that have special appeal to individuals with problem gambling or a betting or gambling338 |
|---|
| 369 | | - | disorder;339 |
|---|
| 370 | | - | (H) Requiring the electronic posting of signs or notifications on online sports betting340 |
|---|
| 371 | | - | platforms that bear the 1-800-GAMBLER toll-free number, which provides or directs341 |
|---|
| 372 | | - | callers to assistance and resources for individuals with problem gambling or a betting342 |
|---|
| 373 | | - | or gambling disorder; and343 |
|---|
| 374 | | - | (I) Requiring, through the promulgation of rules and regulations, limitations on the344 |
|---|
| 375 | | - | amount of bets a bettor can place when such bettor has exhibited signs of problem345 |
|---|
| 376 | | - | gambling or a betting or gambling disorder. Such rules and regulations shall require346 |
|---|
| 377 | | - | the implementation of systems to monitor betting and provide customers with guidance,347 |
|---|
| 378 | | - | information, and options when their betting may be problematic;348 |
|---|
| 379 | | - | S. B. 386 (SUB) |
|---|
| 380 | | - | - 14 - 24 LC 36 5897S |
|---|
| 381 | | - | (13) To keep a true and full record of all proceedings of the corporation under this article349 |
|---|
| 382 | | - | and preserve at the corporation's general office all books, documents, and papers of the350 |
|---|
| 383 | | - | corporation;351 |
|---|
| 384 | | - | (14) To adopt rules and regulations specific to the manner in which a licensee may352 |
|---|
| 385 | | - | advertise its business operations as authorized by this article; and353 |
|---|
| 386 | | - | (15) To comply with Code Section 50-27-14 as it relates to sports betting in order to354 |
|---|
| 387 | | - | encourage participation by minority businesses.355 |
|---|
| 388 | | - | (b) The corporation shall not have the power to prescribe a licensee's maximum or356 |
|---|
| 389 | | - | minimum payout or hold percentage.357 |
|---|
| 390 | | - | 50-27-124.358 |
|---|
| 391 | | - | (a) The corporation shall prescribe by rules and regulations:359 |
|---|
| 392 | | - | (1) The reserves that must be kept by licensees to comply with subparagraph (c)(7)(A)360 |
|---|
| 393 | | - | of Code Section 50-27-130 to pay off bettors;361 |
|---|
| 394 | | - | (2) Any insurance requirements for a licensee;362 |
|---|
| 395 | | - | (3) Minimum requirements by which each licensee shall exercise effective control over363 |
|---|
| 396 | | - | its internal fiscal affairs, including, without limitation, requirements for:364 |
|---|
| 397 | | - | (A) Safeguarding assets and revenues, including evidence of indebtedness;365 |
|---|
| 398 | | - | (B) Maintaining reliable records relating to accounts, transactions, profits and losses,366 |
|---|
| 399 | | - | operations, and events; and367 |
|---|
| 400 | | - | (C) Global risk management;368 |
|---|
| 401 | | - | (4) Requirements for internal and independent audits of licensees;369 |
|---|
| 402 | | - | (5) The manner in which periodic financial reports shall be submitted to the corporation370 |
|---|
| 403 | | - | from each licensee, including the financial information to be included in the reports;371 |
|---|
| 404 | | - | (6) The type of information deemed to be confidential financial or proprietary372 |
|---|
| 405 | | - | information that is not subject to any reporting requirements under this article;373 |
|---|
| 406 | | - | S. B. 386 (SUB) |
|---|
| 407 | | - | - 15 - 24 LC 36 5897S |
|---|
| 408 | | - | (7) Policies, procedures, and processes designed to mitigate the risk of cheating and374 |
|---|
| 409 | | - | money laundering; and375 |
|---|
| 410 | | - | (8) Any post-employment restrictions necessary to maintain the integrity of sports376 |
|---|
| 411 | | - | betting in this state.377 |
|---|
| 412 | | - | Part 2378 |
|---|
| 413 | | - | 50-27-130.379 |
|---|
| 414 | | - | (a) Any person offering, operating, or managing sports betting in this state shall be380 |
|---|
| 415 | | - | licensed by the corporation.381 |
|---|
| 416 | | - | (b) The corporation shall issue licenses to qualified applicants able to meet the duties of382 |
|---|
| 417 | | - | a license holder under this article and that the corporation determines will best satisfy the383 |
|---|
| 418 | | - | following criteria:384 |
|---|
| 419 | | - | (1) Expertise in the business of online sports betting;385 |
|---|
| 420 | | - | (2) Integrity, sustainability, and safety of the online sports betting platform;386 |
|---|
| 421 | | - | (3) Past relevant experience of the applicant;387 |
|---|
| 422 | | - | (4) Advertising and promotional plans to increase and sustain revenue;388 |
|---|
| 423 | | - | (5) The amount of adjusted gross income and associated tax revenue that an applicant389 |
|---|
| 424 | | - | is projected to generate;390 |
|---|
| 425 | | - | (6) Demonstrated commitment to and plans for the promotion of responsible gaming;391 |
|---|
| 426 | | - | and392 |
|---|
| 427 | | - | (7) Capacity to increase the number of bettors on the applicant's platform.393 |
|---|
| 428 | | - | (c) An applicant for a license shall submit an application on a form in such manner and in394 |
|---|
| 429 | | - | accordance with such requirements as may be prescribed by rules and regulations of the395 |
|---|
| 430 | | - | corporation. Such rules and regulations shall require, at a minimum, that the application396 |
|---|
| 431 | | - | include the following:397 |
|---|
| 432 | | - | S. B. 386 (SUB) |
|---|
| 433 | | - | - 16 - 24 LC 36 5897S |
|---|
| 434 | | - | (1) If the applicant is an entity, identification of the applicant's principal owners, board398 |
|---|
| 435 | | - | of directors, officers, and supervisory employees;399 |
|---|
| 436 | | - | (2) Information, documentation, and assurances as may be required by the corporation400 |
|---|
| 437 | | - | to establish by clear and convincing evidence the applicant's good character, honesty, and401 |
|---|
| 438 | | - | integrity, including, but not limited to, information pertaining to family, habits, character,402 |
|---|
| 439 | | - | reputation, criminal and arrest records, business activities, financial affairs, and business,403 |
|---|
| 440 | | - | professional, and personal associates, covering at least the ten-year period immediately404 |
|---|
| 441 | | - | preceding the filing of the application. No license shall be issued to an applicant, if such405 |
|---|
| 442 | | - | applicant or a principal owner of such applicant, has been convicted of, has been found406 |
|---|
| 443 | | - | guilty of, or has pled guilty to, regardless of adjudication and in any jurisdiction, any407 |
|---|
| 444 | | - | felony or any misdemeanor that is directly related to gambling, dishonesty, theft, or fraud;408 |
|---|
| 445 | | - | (3) Notice and a description of civil judgments obtained against the applicant pertaining409 |
|---|
| 446 | | - | to antitrust or security regulation laws of the federal government, this state, or any other410 |
|---|
| 447 | | - | state, jurisdiction, province, or country;411 |
|---|
| 448 | | - | (4) To the extent available, letters of reference or the equivalent from law enforcement412 |
|---|
| 449 | | - | agencies having jurisdiction of the applicant's place of residence and principal place of413 |
|---|
| 450 | | - | business. Each such letter of reference shall indicate that the law enforcement agency414 |
|---|
| 451 | | - | does not have any pertinent information concerning the applicant or, if such law415 |
|---|
| 452 | | - | enforcement agency does have information pertaining to the applicant, shall provide such416 |
|---|
| 453 | | - | information, to the extent permitted by law;417 |
|---|
| 454 | | - | (5) If the applicant has conducted sports betting operations in another jurisdiction, a418 |
|---|
| 455 | | - | letter of reference from the regulatory body that governs sports betting that specifies the419 |
|---|
| 456 | | - | standing of the applicant with such regulatory body; provided, however, that, if no such420 |
|---|
| 457 | | - | letter is received within 60 days of the request therefor, the applicant may submit a421 |
|---|
| 458 | | - | statement under oath that the applicant is or was, during the period such activities were422 |
|---|
| 459 | | - | conducted, in good standing with the regulatory body;423 |
|---|
| 460 | | - | S. B. 386 (SUB) |
|---|
| 461 | | - | - 17 - 24 LC 36 5897S |
|---|
| 462 | | - | (6) Information, documentation, and assurances concerning financial background and424 |
|---|
| 463 | | - | resources as may be required to establish by clear and convincing evidence the financial425 |
|---|
| 464 | | - | stability, integrity, and responsibility of the applicant, including, but not limited to, bank426 |
|---|
| 465 | | - | references, business and personal income and disbursement schedules, tax returns and427 |
|---|
| 466 | | - | other reports filed with governmental agencies, and business and personal accounting and428 |
|---|
| 467 | | - | check records and ledgers. Each applicant shall, in writing, authorize the examination of429 |
|---|
| 468 | | - | all bank accounts and records as may be deemed necessary by the corporation. The430 |
|---|
| 469 | | - | corporation may consider any relevant evidence of financial stability. In addition, the431 |
|---|
| 470 | | - | applicant shall:432 |
|---|
| 471 | | - | (A) Maintain a reserve of not less than $500,000.00 or the amount required to cover433 |
|---|
| 472 | | - | the outstanding liabilities for wagers accepted by the licensee, whichever is greater. 434 |
|---|
| 473 | | - | Outstanding liabilities for wagers shall mean the sum of patron account balances, the435 |
|---|
| 474 | | - | amount paid by patrons for wagers that have not yet been determined, and the amount436 |
|---|
| 475 | | - | owed but unpaid by licensees to patrons for wagers whose results have been437 |
|---|
| 476 | | - | determined. The reserve may take the form of a bond, an irrevocable letter of credit,438 |
|---|
| 477 | | - | payment processor reserves and receivables, cash or cash equivalents segregated from439 |
|---|
| 478 | | - | operational funds, guaranty letter, or a combination thereof. Such reserve shall be440 |
|---|
| 479 | | - | adequate to pay winning wagers to bettors when due. An applicant is presumed to have441 |
|---|
| 480 | | - | met this standard if the applicant maintains, on a daily basis, subject to when banks are442 |
|---|
| 481 | | - | open, a minimum reserve in an amount which is at least equal to the average daily443 |
|---|
| 482 | | - | minimum reserve, calculated on a monthly basis, for the corresponding month in the444 |
|---|
| 483 | | - | previous year;445 |
|---|
| 484 | | - | (B) Meet ongoing operating expenses which are essential to the maintenance of446 |
|---|
| 485 | | - | continuous and stable sports betting operations; and447 |
|---|
| 486 | | - | (C) Pay, as and when due, all state and federal taxes;448 |
|---|
| 487 | | - | (7) Information, documentation, and assurances as may be required to establish by clear449 |
|---|
| 488 | | - | and convincing evidence that the applicant has sufficient business ability and sports450 |
|---|
| 489 | | - | S. B. 386 (SUB) |
|---|
| 490 | | - | - 18 - 24 LC 36 5897S |
|---|
| 491 | | - | betting experience to establish the likelihood of the creation and maintenance of451 |
|---|
| 492 | | - | successful, efficient sports betting operations in this state;452 |
|---|
| 493 | | - | (8) Information, as required by rules and regulations of the corporation, regarding the453 |
|---|
| 494 | | - | financial standing of the applicant;454 |
|---|
| 495 | | - | (9) A nonrefundable application fee and annual licensing fee as follows:455 |
|---|
| 496 | | - | (A) Applicants for a Type 1 sports betting license shall pay a nonrefundable456 |
|---|
| 497 | | - | application fee in the amount of $100,000.00 and an annual licensing fee in the amount457 |
|---|
| 498 | | - | of $1 million;458 |
|---|
| 499 | | - | (B) Applicants for an online sports betting services provider license shall pay a459 |
|---|
| 500 | | - | nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee460 |
|---|
| 501 | | - | of $100,000.00; provided, however, that an online sports betting services provider that461 |
|---|
| 502 | | - | applies for and obtains a Type 1 sports betting license pursuant to paragraph (3) of462 |
|---|
| 503 | | - | subsection (b) of Code Section 50-27-133 shall only be required to pay the463 |
|---|
| 504 | | - | nonrefundable application fee and annual licensing fee applicable to the applicant's464 |
|---|
| 505 | | - | Type 1 sports betting license; and465 |
|---|
| 506 | | - | (C) Applicants for a sports betting supplier license shall pay a nonrefundable466 |
|---|
| 507 | | - | application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;467 |
|---|
| 508 | | - | and468 |
|---|
| 509 | | - | (10) Any additional information, documents, or assurances required by rules and469 |
|---|
| 510 | | - | regulations of the corporation.470 |
|---|
| 511 | | - | (d) The corporation shall review and approve or deny an application for a license not more471 |
|---|
| 512 | | - | than 90 days after receipt of an application.472 |
|---|
| 513 | | - | 50-27-131.473 |
|---|
| 514 | | - | (a) A licensee may renew its license by submitting an application on a form in such474 |
|---|
| 515 | | - | manner and in accordance with such requirements as may be prescribed by rules and475 |
|---|
| 516 | | - | regulations of the corporation. A licensee shall submit the nonrefundable application fee476 |
|---|
| 517 | | - | S. B. 386 (SUB) |
|---|
| 518 | | - | - 19 - 24 LC 36 5897S |
|---|
| 519 | | - | prescribed under paragraph (10) of subsection (c) of Code Section 50-27-130 with its477 |
|---|
| 520 | | - | application for license renewal.478 |
|---|
| 521 | | - | (b) For each application for licensure or renewal of a license approved under this Code479 |
|---|
| 522 | | - | section, the amount of the application fee shall be credited toward the licensee's annual480 |
|---|
| 523 | | - | licensing fee and the licensee shall remit the balance of the annual license fee to the481 |
|---|
| 524 | | - | corporation upon approval of a license.482 |
|---|
| 525 | | - | (c) Each licensee shall have a continuing duty to promptly inform the corporation of any483 |
|---|
| 526 | | - | change in status relating to any information that may disqualify the licensee from holding484 |
|---|
| 527 | | - | a license under Code Section 50-27-132.485 |
|---|
| 528 | | - | (d) A professional sports governing body and a Type 1 eligible entity may enter into486 |
|---|
| 529 | | - | commercial agreements with an online sports betting services provider or other entities that487 |
|---|
| 530 | | - | provide for such professional sports governing body and Type 1 eligible entity to share in488 |
|---|
| 531 | | - | the amounts wagered or revenue derived from wagers on the sporting events of such489 |
|---|
| 532 | | - | professional sports governing body and Type 1 eligible entity. A professional sports490 |
|---|
| 533 | | - | governing body and a Type 1 eligible entity shall not be required to obtain any approval491 |
|---|
| 534 | | - | or other form of authorization from the corporation to enter into such commercial492 |
|---|
| 535 | | - | agreements or to lawfully accept such amounts or revenues. The corporation shall not493 |
|---|
| 536 | | - | prescribe any terms or conditions that are required to be included in such commercial494 |
|---|
| 537 | | - | agreements.495 |
|---|
| 538 | | - | (e) A person that holds a license or permit to engage in sports betting issued by another496 |
|---|
| 539 | | - | jurisdiction, either directly or through a parent company or affiliated subsidiary, may497 |
|---|
| 540 | | - | submit a request to the corporation for a temporary license for such person to immediately498 |
|---|
| 541 | | - | commence engagement in this state in sports betting. Such request shall include the499 |
|---|
| 542 | | - | application fee and annual licensing fee required under paragraph (10) of subsection (c) of500 |
|---|
| 543 | | - | Code Section 50-27-130.501 |
|---|
| 544 | | - | (f) Upon receiving a request for a temporary license, the chief executive officer shall502 |
|---|
| 545 | | - | review the request. If the chief executive officer reviews the request and determines that503 |
|---|
| 546 | | - | S. B. 386 (SUB) |
|---|
| 547 | | - | - 20 - 24 LC 36 5897S |
|---|
| 548 | | - | the person requesting the temporary license holds a license or permit issued by another504 |
|---|
| 549 | | - | jurisdiction to engage in sports betting and has paid the required application fee and annual505 |
|---|
| 550 | | - | licensing fee, the chief executive officer may authorize such person to engage in sports506 |
|---|
| 551 | | - | betting pursuant to this article under a temporary license for up to one year or until a final507 |
|---|
| 552 | | - | determination on such person's application is made, whichever is later.508 |
|---|
| 553 | | - | (g) All licenses issued under this article shall be valid for a term of five years, unless509 |
|---|
| 554 | | - | suspended or revoked as provided under this article.510 |
|---|
| 555 | | - | (h) The corporation may adopt rules and regulations prescribing the manner in which a511 |
|---|
| 556 | | - | license may be transferred and a fee for a license transfer.512 |
|---|
| 557 | | - | (i) A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully513 |
|---|
| 558 | | - | operating in this state and the licensee shall be the beneficiary of any interest accrued514 |
|---|
| 559 | | - | thereon.515 |
|---|
| 560 | | - | 50-27-132.516 |
|---|
| 561 | | - | (a) The following persons shall not be eligible to apply for or obtain a license under this517 |
|---|
| 562 | | - | article:518 |
|---|
| 563 | | - | (1) A member of the board of directors or employee of the corporation or an employee519 |
|---|
| 564 | | - | of a corporation vendor; provided, however, that a corporation vendor as an entity may520 |
|---|
| 565 | | - | be eligible to apply for or obtain a license;521 |
|---|
| 566 | | - | (2) An employee of a professional sports team on which the applicant offers sports522 |
|---|
| 567 | | - | betting;523 |
|---|
| 568 | | - | (3) A coach of or player for a collegiate, professional, or Olympic sports team or sport524 |
|---|
| 569 | | - | for which the applicant offers sports betting, or an entity that has an affiliation or interest525 |
|---|
| 570 | | - | in such a sports team or sport;526 |
|---|
| 571 | | - | (4) An individual who is a member or employee of any professional sports governing527 |
|---|
| 572 | | - | body or sporting events operator for which the applicant offers sports betting;528 |
|---|
| 573 | | - | S. B. 386 (SUB) |
|---|
| 574 | | - | - 21 - 24 LC 36 5897S |
|---|
| 575 | | - | (5) An individual or entity with an owner, officer, or director who has been convicted of529 |
|---|
| 576 | | - | a crime of moral turpitude or similar degree as specified in rules and regulations530 |
|---|
| 577 | | - | promulgated by the corporation pursuant to this article;531 |
|---|
| 578 | | - | (6) A person having the ability to directly affect the outcome of a sporting event upon532 |
|---|
| 579 | | - | which the applicant offers sports betting;533 |
|---|
| 580 | | - | (7) A trustee or regent of a governing board of a public or private institution of higher534 |
|---|
| 581 | | - | education;535 |
|---|
| 582 | | - | (8) An individual prohibited by the rules or regulations of a professional sports536 |
|---|
| 583 | | - | governing body or sporting events operator of a collegiate sports team, league, or537 |
|---|
| 584 | | - | association from participating in sports betting;538 |
|---|
| 585 | | - | (9) A student or an employee of a public or private institution of higher education who539 |
|---|
| 586 | | - | has access to material nonpublic information concerning a student athlete or a sports540 |
|---|
| 587 | | - | team, unless such access to information is deemed incidental; and541 |
|---|
| 588 | | - | (10) Any other category of persons, established by rules and regulations of the542 |
|---|
| 589 | | - | corporation, that, if licensed, would negatively affect the integrity of sports betting in this543 |
|---|
| 590 | | - | state.544 |
|---|
| 591 | | - | (b) An individual listed in paragraphs (2) through (10) of subsection (a) of this Code545 |
|---|
| 592 | | - | section may hold an ownership interest in an applicant or licensee without disqualifying546 |
|---|
| 593 | | - | the applicant or licensee from obtaining or holding a license; provided, however, that such547 |
|---|
| 594 | | - | an ownership interest of 25 percent or more shall require approval from the corporation. 548 |
|---|
| 595 | | - | In determining whether such an ownership interest shall be the basis of disqualification, the549 |
|---|
| 596 | | - | corporation shall consider whether such interest would negatively affect the integrity of550 |
|---|
| 597 | | - | sports betting in this state and any other factors the corporation shall deem relevant.551 |
|---|
| 598 | | - | 50-27-133.552 |
|---|
| 599 | | - | (a) A Type 1 sports betting license authorizes the licensee, or its designated online sports553 |
|---|
| 600 | | - | betting services provider, to offer online sports betting. If a Type 1 eligible entity554 |
|---|
| 601 | | - | S. B. 386 (SUB) |
|---|
| 602 | | - | - 22 - 24 LC 36 5897S |
|---|
| 603 | | - | designates an online sports betting services provider, the designated online sports betting555 |
|---|
| 604 | | - | services provider shall instead fulfill the application and operational requirements for sports556 |
|---|
| 605 | | - | betting offered pursuant to this article. The corporation shall establish a procedure for a557 |
|---|
| 606 | | - | Type 1 eligible entity to designate an online sports betting provider.558 |
|---|
| 607 | | - | (b) The corporation shall issue not more than 16 Type 1 sports betting licenses as follows:559 |
|---|
| 608 | | - | (1) Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities560 |
|---|
| 609 | | - | defined in subparagraph (A) of paragraph (42) of Code Section 50-27-122; provided,561 |
|---|
| 610 | | - | however, that more than one license may be issued to an owner of multiple professional562 |
|---|
| 611 | | - | sports teams;563 |
|---|
| 612 | | - | (2) One Type 1 sports betting license shall be reserved for each of the Type 1 eligible564 |
|---|
| 613 | | - | entities defined in subparagraphs (B) through (E) of paragraph (42) of Code Section565 |
|---|
| 614 | | - | 50-27-122; and566 |
|---|
| 615 | | - | (3) The corporation shall award the remaining seven Type 1 sports betting licenses to567 |
|---|
| 616 | | - | separate online sports betting services providers via a public procurement process;568 |
|---|
| 617 | | - | (c) The master sports betting license shall be deemed a Type 1 licensee and shall not be569 |
|---|
| 618 | | - | required to apply for a license; provided, however, that an online sports betting services570 |
|---|
| 619 | | - | provider engaged by the master sports betting licensee shall be required to apply for an571 |
|---|
| 620 | | - | online sports betting services provider license to operate online sports betting on behalf of572 |
|---|
| 621 | | - | the master sports betting licensee.573 |
|---|
| 622 | | - | (d) A Type 1 eligible entity may contract with no more than one online sports betting574 |
|---|
| 623 | | - | services provider to operate online sports betting on behalf of the Type 1 eligible entity.575 |
|---|
| 624 | | - | (e) A Type 1 eligible entity shall provide written notice to the corporation of its intention576 |
|---|
| 625 | | - | to apply for a Type 1 sports betting license within 60 days of the effective date of this577 |
|---|
| 626 | | - | article. The failure of a Type 1 eligible entity to provide such written notice shall result in578 |
|---|
| 627 | | - | the permanent disqualification and prohibition of such Type 1 eligible entity from579 |
|---|
| 628 | | - | obtaining a Type 1 sports betting license.580 |
|---|
| 629 | | - | S. B. 386 (SUB) |
|---|
| 630 | | - | - 23 - 24 LC 36 5897S |
|---|
| 631 | | - | (f) A Type 1 sports betting licensee shall not offer online sports betting until the581 |
|---|
| 632 | | - | corporation has issued a Type 1 sports betting license to at least one online sports betting582 |
|---|
| 633 | | - | services provider via the public procurement process as determined by the corporation.583 |
|---|
| 634 | | - | (g) The corporation shall begin to accept applications for all 16 Type 1 sports betting584 |
|---|
| 635 | | - | licenses under subsection (b) of this Code section on the same date.585 |
|---|
| 636 | | - | (h) All applicants for the 16 Type 1 sports betting licenses under subsection (b) of this586 |
|---|
| 637 | | - | Code section that have submitted an application within 30 days of the date in which the587 |
|---|
| 638 | | - | corporation began to accept applications for Type 1 sports betting licenses shall be given588 |
|---|
| 639 | | - | an equal opportunity to first commence offering, conducting, or operating online sports589 |
|---|
| 640 | | - | betting in this state on the same day, and in any event not later than January 31, 2025.590 |
|---|
| 641 | | - | (i) A Type 1 eligible entity described in subparagraphs (A) through (D) of paragraph (42)591 |
|---|
| 642 | | - | of Code Section 50-27-122 that becomes a Type 1 sports betting licensee or designates an592 |
|---|
| 643 | | - | online sports betting services provider shall establish and maintain procedures with respect593 |
|---|
| 644 | | - | to sporting events which the Type 1 eligible entity participates in or administers to ensure594 |
|---|
| 645 | | - | avoidance of conflicts of interest in the operation of sports betting in this state.595 |
|---|
| 646 | | - | 50-27-134.596 |
|---|
| 647 | | - | (a) An online sports betting services provider shall offer online sports betting only in597 |
|---|
| 648 | | - | accordance with the provisions of this article and the rules and regulations adopted by the598 |
|---|
| 649 | | - | corporation under this article.599 |
|---|
| 650 | | - | (b) An online sports betting services provider shall obtain a license under this article600 |
|---|
| 651 | | - | before offering online sports betting pursuant to a contract with a Type 1 sports betting601 |
|---|
| 652 | | - | licensee or master sports betting licensee. An online sports betting services provider602 |
|---|
| 653 | | - | license shall entitle the holder to contract with no more than one Type 1 sports betting603 |
|---|
| 654 | | - | licensee.604 |
|---|
| 655 | | - | (c) If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a605 |
|---|
| 656 | | - | member of a league, association, or organization that prevents the holder from being606 |
|---|
| 657 | | - | S. B. 386 (SUB) |
|---|
| 658 | | - | - 24 - 24 LC 36 5897S |
|---|
| 659 | | - | subject to the regulatory control of the corporation or from otherwise operating under the607 |
|---|
| 660 | | - | license, such a Type 1 eligible entity may contractually appoint an online sports betting608 |
|---|
| 661 | | - | services provider for all aspects of corporation oversight and operations under the Type 1609 |
|---|
| 662 | | - | sports betting license.610 |
|---|
| 663 | | - | (d) Institutional investors shall be exempt from any and all qualification and disclosure611 |
|---|
| 664 | | - | requirements under this article or required under the rules and regulations promulgated by612 |
|---|
| 665 | | - | the corporation pursuant to this article. Such exemption shall extend to the owners,613 |
|---|
| 666 | | - | directors, and officers of such institutional investors.614 |
|---|
| 667 | | - | 50-27-135.615 |
|---|
| 668 | | - | Proposition wagers shall only be offered on online sports betting platforms by the master616 |
|---|
| 669 | | - | sports betting licensee, an online sports betting services provider that contracts with the617 |
|---|
| 670 | | - | master sports betting licensee, or a Type 1 sports betting licensee.618 |
|---|
| 671 | | - | Part 3619 |
|---|
| 672 | | - | 50-27-150.620 |
|---|
| 673 | | - | (a) Notwithstanding any other law to the contrary, there shall be imposed an annual621 |
|---|
| 674 | | - | privilege tax of 25 percent of the adjusted gross income derived from online sports betting622 |
|---|
| 675 | | - | in accordance with this Code section.623 |
|---|
| 676 | | - | (b) The privilege tax described in subsection (a) of this Code section shall be paid by the624 |
|---|
| 677 | | - | online sports betting services provider; provided, however, that, if a Type 1 sports betting625 |
|---|
| 678 | | - | licensee does not contract with an online sports betting services provider, such privilege626 |
|---|
| 679 | | - | tax shall be paid by such Type 1 sports betting licensee as provided for in subsection (c)627 |
|---|
| 680 | | - | of this Code section. This subsection shall not apply to the master sports betting licensee.628 |
|---|
| 681 | | - | (c) The privilege tax imposed under this Code section shall be paid monthly by the online629 |
|---|
| 682 | | - | sports betting services provider based on its monthly adjusted gross income for the630 |
|---|
| 683 | | - | S. B. 386 (SUB) |
|---|
| 684 | | - | - 25 - 24 LC 36 5897S |
|---|
| 685 | | - | immediately preceding calendar month. The privilege tax shall be paid to the corporation631 |
|---|
| 686 | | - | in accordance with rules and regulations promulgated by the corporation. If the online632 |
|---|
| 687 | | - | sports betting services provider's adjusted gross income for a month is a negative number,633 |
|---|
| 688 | | - | such online sports betting services provider may carry over such negative amount to634 |
|---|
| 689 | | - | subsequent months.635 |
|---|
| 690 | | - | (d) All moneys from privilege taxes and fees collected under this Code section shall be636 |
|---|
| 691 | | - | distributed and used as provided under Article I, Section II, Paragraph VIII(c) of the637 |
|---|
| 692 | | - | Constitution.638 |
|---|
| 693 | | - | (e) With the exception of application fees and annual licensing fees imposed by paragraph639 |
|---|
| 694 | | - | (10) of subsection (c) of Code Section 50-27-130, this privilege tax is in lieu of all other640 |
|---|
| 695 | | - | state and local sales and use taxes, income taxes, and fees imposed on the operation of641 |
|---|
| 696 | | - | sports betting or on the proceeds from the operation of sports betting in this state. This642 |
|---|
| 697 | | - | subsection shall not exempt goods and services purchased by licensees in the ordinary643 |
|---|
| 698 | | - | course of business from the imposition of state or local sales and use taxes that would644 |
|---|
| 699 | | - | otherwise apply, nor shall it exempt licensees from the payment of taxes on real property645 |
|---|
| 700 | | - | owned by the licensee.646 |
|---|
| 701 | | - | 50-27-151.647 |
|---|
| 702 | | - | (a) Each Type 1 licensee or its sports betting services provider shall report to the648 |
|---|
| 703 | | - | corporation, no later than January 15 of each year:649 |
|---|
| 704 | | - | (1) The total amount of wagers received from bettors for the immediately preceding650 |
|---|
| 705 | | - | calendar year;651 |
|---|
| 706 | | - | (2) The adjusted gross income of the licensee for the immediately preceding calendar652 |
|---|
| 707 | | - | year; and653 |
|---|
| 708 | | - | (3) Any additional information required by rules and regulations of the corporation654 |
|---|
| 709 | | - | deemed in the public interest or necessary to maintain the integrity of sports betting in655 |
|---|
| 710 | | - | this state.656 |
|---|
| 711 | | - | S. B. 386 (SUB) |
|---|
| 712 | | - | - 26 - 24 LC 36 5897S |
|---|
| 713 | | - | (b) A licensee shall promptly report to the corporation any information relating to:657 |
|---|
| 714 | | - | (1) The name of any newly elected officer or director of the board of the licensed entity;658 |
|---|
| 715 | | - | and659 |
|---|
| 716 | | - | (2) The acquisition by any person of 10 percent or more of any class of corporate stock.660 |
|---|
| 717 | | - | (c) With respect to information reported under subsection (b) of this Code section, a661 |
|---|
| 718 | | - | licensee shall include with such report a statement of any conflict of interest that may exist662 |
|---|
| 719 | | - | as a result of such election or acquisition.663 |
|---|
| 720 | | - | (d) Upon receiving a report under this Code section or subsection (b) of Code664 |
|---|
| 721 | | - | Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section665 |
|---|
| 722 | | - | 50-27-193 to determine whether the licensee remains in compliance with this article.666 |
|---|
| 723 | | - | Part 4667 |
|---|
| 724 | | - | 50-27-160.668 |
|---|
| 725 | | - | (a) No person shall knowingly:669 |
|---|
| 726 | | - | (1) Allow a minor to place a wager;670 |
|---|
| 727 | | - | (2) Offer, accept, or extend credit to a bettor in the form of a marker; provided, however,671 |
|---|
| 728 | | - | that promotions and promotional credits shall be permitted to be offered and extended to672 |
|---|
| 729 | | - | bettors;673 |
|---|
| 730 | | - | (3) Target minors in advertising or promotions for sports betting;674 |
|---|
| 731 | | - | (4) Offer or accept a wager on any event, outcome, or occurrence other than a sporting675 |
|---|
| 732 | | - | event, including, without limitation, a high school sporting event offered, sponsored, or676 |
|---|
| 733 | | - | played in connection with a public or private institution that offers education at the677 |
|---|
| 734 | | - | secondary level; or678 |
|---|
| 735 | | - | (5) Accept a wager from an individual who is prohibited from placing a wager or bet679 |
|---|
| 736 | | - | under Code Section 50-27-162, if such person has notice or actual knowledge that such680 |
|---|
| 737 | | - | individual is prohibited from placing such a wager or bet.681 |
|---|
| 738 | | - | S. B. 386 (SUB) |
|---|
| 739 | | - | - 27 - 24 LC 36 5897S |
|---|
| 740 | | - | (b) If the corporation determines that a person has violated any provision of this Code682 |
|---|
| 741 | | - | section, the corporation may impose an administrative fine not to exceed $25,000.00 per683 |
|---|
| 742 | | - | violation, or a total of $50,000.00 for violations arising out of the same transaction or684 |
|---|
| 743 | | - | occurrence.685 |
|---|
| 744 | | - | 50-27-161.686 |
|---|
| 745 | | - | Except for those individuals ineligible to place bets under Code Section 50-27-162, an687 |
|---|
| 746 | | - | individual who is 21 years of age or older and who is physically located in this state may688 |
|---|
| 747 | | - | place a wager in the manner authorized under this article and the rules and regulations of689 |
|---|
| 748 | | - | the corporation.690 |
|---|
| 749 | | - | 50-27-162.691 |
|---|
| 750 | | - | (a) The following individuals and categories of individuals shall not, directly or indirectly,692 |
|---|
| 751 | | - | place a wager on sporting events or online sports betting platforms in this state:693 |
|---|
| 752 | | - | (1) A member, officer, or employee of the corporation shall not place a wager on any694 |
|---|
| 753 | | - | sporting event or platform;695 |
|---|
| 754 | | - | (2) A corporation vendor employee shall not place a wager on a sporting event using696 |
|---|
| 755 | | - | their employer's platform;697 |
|---|
| 756 | | - | (3) A licensee or principal owner, partner, member of the board of directors, officer, or698 |
|---|
| 757 | | - | supervisory employee of a licensee shall not place a wager on the licensee's platform;699 |
|---|
| 758 | | - | (4) A person that provides goods or services to a licensee or any principal owner, partner,700 |
|---|
| 759 | | - | member of the board of directors, officer, or supervisory employee of a person that701 |
|---|
| 760 | | - | provides such goods or services shall not place a wager on the licensee's platform;702 |
|---|
| 761 | | - | (5) A contractor, subcontractor, or consultant or any officer or employee of a contractor,703 |
|---|
| 762 | | - | subcontractor, or consultant of a licensee shall not place a wager on the licensee's704 |
|---|
| 763 | | - | platform, if such individual is directly involved in the licensee's operation of sports705 |
|---|
| 764 | | - | S. B. 386 (SUB) |
|---|
| 765 | | - | - 28 - 24 LC 36 5897S |
|---|
| 766 | | - | betting or the processing of sports betting claims or payments through the licensee's706 |
|---|
| 767 | | - | platform;707 |
|---|
| 768 | | - | (6) An individual subject to a contract with the corporation shall not place a wager on708 |
|---|
| 769 | | - | any platform, if the contract contains a provision prohibiting the individual from709 |
|---|
| 770 | | - | participating in sports betting;710 |
|---|
| 771 | | - | (7) An individual with access to material nonpublic information that is known711 |
|---|
| 772 | | - | exclusively by an individual who is prohibited from placing a wager in this state under712 |
|---|
| 773 | | - | this Code section shall not use any such information to place a wager on any sporting713 |
|---|
| 774 | | - | event or platform;714 |
|---|
| 775 | | - | (8) An amateur or Olympic athlete shall not place a wager on any sporting event in715 |
|---|
| 776 | | - | which the athlete participates;716 |
|---|
| 777 | | - | (9) A professional athlete shall not place a wager on any sporting event overseen by such717 |
|---|
| 778 | | - | athlete's professional sports governing body or sporting events operator;718 |
|---|
| 779 | | - | (10) A principal owner of a team, employee of a team, player, umpire, or sports union719 |
|---|
| 780 | | - | personnel, or employee, referee, coach, or official of a professional sports governing body720 |
|---|
| 781 | | - | or sporting events operator shall not place a wager on any sporting event, if the wager is721 |
|---|
| 782 | | - | based on a sporting event overseen by the individual's professional sports governing body722 |
|---|
| 783 | | - | or sporting events operator;723 |
|---|
| 784 | | - | (11) An individual having the ability to directly affect the outcome of a sporting event724 |
|---|
| 785 | | - | shall not place a wager on such sporting event;725 |
|---|
| 786 | | - | (12) A trustee or regent of a governing board of a public or private institution of higher726 |
|---|
| 787 | | - | education shall not place a wager on a collegiate sporting event;727 |
|---|
| 788 | | - | (13) An individual prohibited by the rules or regulations of a professional sports728 |
|---|
| 789 | | - | governing body or sporting events operator of a collegiate sports team, league, or729 |
|---|
| 790 | | - | association from participating in sports betting shall not place a wager on any sporting730 |
|---|
| 791 | | - | event to which such prohibition applies; and731 |
|---|
| 792 | | - | S. B. 386 (SUB) |
|---|
| 793 | | - | - 29 - 24 LC 36 5897S |
|---|
| 794 | | - | (14) A student or an employee of a public or private institution of higher education who732 |
|---|
| 795 | | - | has access to material nonpublic information concerning a student athlete or a sports team733 |
|---|
| 796 | | - | shall be prohibited from placing a wager on a collegiate sporting event if such734 |
|---|
| 797 | | - | information is relevant to the outcome of such event.735 |
|---|
| 798 | | - | (b) The corporation may prescribe by rules and regulations additional individuals and736 |
|---|
| 799 | | - | categories of individuals who are prohibited from placing a wager on specified sporting737 |
|---|
| 800 | | - | events or online sports betting platforms in this state.738 |
|---|
| 801 | | - | (c) The corporation shall prescribe by rules and regulations any measures necessary to739 |
|---|
| 802 | | - | ensure individuals who are prohibited from placing a wager on specified sporting events740 |
|---|
| 803 | | - | or online sports betting platforms in this state shall not be permitted to collude with741 |
|---|
| 804 | | - | individuals not specifically enumerated in subsection (a) of this Code section to directly742 |
|---|
| 805 | | - | affect the outcome of a sporting event.743 |
|---|
| 806 | | - | (d) Any individual who places a wager in violation of this Code section:744 |
|---|
| 807 | | - | (1) For a first offense, shall be indefinitely prohibited from placing a wager, be required745 |
|---|
| 808 | | - | to forfeit the proceeds of any illegal wager, be guilty of a misdemeanor, and be fined not746 |
|---|
| 809 | | - | less than $500.00 nor more than $1,000.00;747 |
|---|
| 810 | | - | (2) For a second offense, shall be:748 |
|---|
| 811 | | - | (A) Required to forfeit the proceeds of any illegal wager;749 |
|---|
| 812 | | - | (B) Guilty of a misdemeanor; and750 |
|---|
| 813 | | - | (C) Fined not less than $5,000.00 or imprisoned for not less than one month nor more751 |
|---|
| 814 | | - | than five months, or both; and752 |
|---|
| 815 | | - | (3) For a third or subsequent offense, shall be:753 |
|---|
| 816 | | - | (A) Required to forfeit the proceeds of any illegal wager; 754 |
|---|
| 817 | | - | (B) Guilty of a misdemeanor of a high and aggravated nature; and755 |
|---|
| 818 | | - | (C) Fined not less than $7,500.00 or imprisoned for not less than three months, or both.756 |
|---|
| 819 | | - | S. B. 386 (SUB) |
|---|
| 820 | | - | - 30 - 24 LC 36 5897S |
|---|
| 821 | | - | 50-27-163.757 |
|---|
| 822 | | - | (a) The corporation shall by rules and regulations prohibit betting on injuries, penalties,758 |
|---|
| 823 | | - | the outcome of player discipline rulings or replay reviews, and any other type or form of759 |
|---|
| 824 | | - | betting under this article that is contrary to public policy or unfair to bettors.760 |
|---|
| 825 | | - | (b)(1) A professional sports governing body or sporting events operator may submit to761 |
|---|
| 826 | | - | the corporation in writing, by providing notice in such form and manner as the762 |
|---|
| 827 | | - | corporation may require, a request to restrict, limit, or prohibit a certain type, form, or763 |
|---|
| 828 | | - | category of sports betting with respect to its sporting events, if the professional sports764 |
|---|
| 829 | | - | governing body or sporting events operator believes that such type, form, or category of765 |
|---|
| 830 | | - | sports betting with respect to its sporting events may undermine the integrity or perceived766 |
|---|
| 831 | | - | integrity of such professional sports governing body or sporting events operator or its767 |
|---|
| 832 | | - | sporting events. The corporation shall request comments from sports betting licensees768 |
|---|
| 833 | | - | and sports betting services provider licensees on all such requests it receives.769 |
|---|
| 834 | | - | (2) After giving due consideration to all comments received, the corporation shall, upon770 |
|---|
| 835 | | - | demonstration of good cause from the requestor that such type, form, or category of771 |
|---|
| 836 | | - | sports betting is likely to undermine the integrity or perceived integrity of such772 |
|---|
| 837 | | - | professional sports governing body or sporting events operator or its sporting events,773 |
|---|
| 838 | | - | grant the request. The corporation shall respond to a request concerning a particular774 |
|---|
| 839 | | - | sporting event before the start of the event, or if it is not feasible to respond before then,775 |
|---|
| 840 | | - | no later than seven days after the request is made. If the corporation determines that the776 |
|---|
| 841 | | - | requestor is more likely than not to prevail in successfully demonstrating good cause for777 |
|---|
| 842 | | - | its request, the corporation may provisionally grant the request of the professional sports778 |
|---|
| 843 | | - | governing body or sporting events operator until the corporation makes a final779 |
|---|
| 844 | | - | determination as to whether the requestor has demonstrated good cause. Absent such a780 |
|---|
| 845 | | - | provisional grant by the corporation, sports betting licensees may continue to offer sports781 |
|---|
| 846 | | - | betting on sporting events that are the subject of such a request during the pendency of782 |
|---|
| 847 | | - | the corporation's consideration of the applicable request.783 |
|---|
| 848 | | - | S. B. 386 (SUB) |
|---|
| 849 | | - | - 31 - 24 LC 36 5897S |
|---|
| 850 | | - | Part 5784 |
|---|
| 851 | | - | 50-27-170.785 |
|---|
| 852 | | - | (a) Prior to placing a wager with a licensee via online sports betting, a bettor shall register786 |
|---|
| 853 | | - | and establish a player account with the licensee remotely during which the bettor shall787 |
|---|
| 854 | | - | attest that he or she meets the requirements to place a wager with a licensee in this state. 788 |
|---|
| 855 | | - | Prior to verification of a bettor's identity in accordance with this Code section, a licensee789 |
|---|
| 856 | | - | shall not allow the bettor to place a wager, make a deposit, or process a withdrawal via790 |
|---|
| 857 | | - | online sports betting. A licensee shall implement commercially and technologically791 |
|---|
| 858 | | - | reasonable procedures to prevent access to sports betting by minors on its online sports792 |
|---|
| 859 | | - | betting platforms. A licensee may use information obtained from third parties to verify that793 |
|---|
| 860 | | - | an individual is authorized to open an account, place wagers, and make deposits and794 |
|---|
| 861 | | - | withdrawals.795 |
|---|
| 862 | | - | (b) Each licensee shall adopt a registration policy to ensure that all bettors utilizing online796 |
|---|
| 863 | | - | sports betting are authorized to place a wager with a licensee within this state. Such policy797 |
|---|
| 864 | | - | shall include, without limitation, commercially reasonable mechanisms to:798 |
|---|
| 865 | | - | (1) Verify the identity and age of the registrant;799 |
|---|
| 866 | | - | (2) Verify that the registrant is not knowingly prohibited from placing a wager under800 |
|---|
| 867 | | - | Code Section 50-27-162; and801 |
|---|
| 868 | | - | (3) Obtain the following information from the registrant:802 |
|---|
| 869 | | - | (A) Legal name;803 |
|---|
| 870 | | - | (B) Date of birth;804 |
|---|
| 871 | | - | (C) Physical address other than a post office box;805 |
|---|
| 872 | | - | (D) Phone number;806 |
|---|
| 873 | | - | (E) A unique username; and807 |
|---|
| 874 | | - | (F) An active email account.808 |
|---|
| 875 | | - | S. B. 386 (SUB) |
|---|
| 876 | | - | - 32 - 24 LC 36 5897S |
|---|
| 877 | | - | (c) Each licensee may in its discretion require a bettor to provide the licensee with a signed809 |
|---|
| 878 | | - | and notarized document attesting that the bettor is qualified to engage in sports betting810 |
|---|
| 879 | | - | under this article as part of the registration policy of the licensee.811 |
|---|
| 880 | | - | (d) A bettor shall not register more than one account with a licensee, and each licensee812 |
|---|
| 881 | | - | shall use commercially and technologically reasonable means to ensure that each bettor is813 |
|---|
| 882 | | - | limited to one account.814 |
|---|
| 883 | | - | (e) Each licensee, in addition to complying with state and federal law pertaining to the815 |
|---|
| 884 | | - | protection of the private, personal information of registered bettors, shall use all other816 |
|---|
| 885 | | - | commercially and technologically reasonable means to protect such information consistent817 |
|---|
| 886 | | - | with industry standards.818 |
|---|
| 887 | | - | (f) A bettor may fund an account through:819 |
|---|
| 888 | | - | (1) Electronic bank transfer of funds, including such transfers through third parties;820 |
|---|
| 889 | | - | (2) Debit cards;821 |
|---|
| 890 | | - | (3) Online and mobile payment systems that support online money transfers; and822 |
|---|
| 891 | | - | (4) Any other method approved by rules and regulations of the corporation.823 |
|---|
| 892 | | - | (g)(1) Licensees shall not allow bets to be placed until first verifying the identity of the824 |
|---|
| 893 | | - | bettor pursuant to this Code section and by rules promulgated by the corporation. 825 |
|---|
| 894 | | - | Further, and pursuant to rules promulgated by the corporation, licensees shall establish826 |
|---|
| 895 | | - | safeguards, including, but not limited to, access notifications and similar security827 |
|---|
| 896 | | - | safeguards, to protect each bettor's account.828 |
|---|
| 897 | | - | (2) If a licensee determines that the information provided by a bettor to make a deposit829 |
|---|
| 898 | | - | or process a withdrawal is inaccurate or incapable of verification or violates the policies830 |
|---|
| 899 | | - | and procedures of the licensee, the licensee shall, within ten days, require the submission831 |
|---|
| 900 | | - | of additional information that can be used to verify the identity of such bettor.832 |
|---|
| 901 | | - | (3) If such information is not provided or does not result in verification of the bettor's833 |
|---|
| 902 | | - | identity, the licensee shall:834 |
|---|
| 903 | | - | S. B. 386 (SUB) |
|---|
| 904 | | - | - 33 - 24 LC 36 5897S |
|---|
| 905 | | - | (A) Immediately suspend the bettor's account and shall not allow the bettor to place835 |
|---|
| 906 | | - | wagers;836 |
|---|
| 907 | | - | (B) Retain any winnings attributable to the bettor; and837 |
|---|
| 908 | | - | (C) Refund the affected balance of deposits made to the account to the source of such838 |
|---|
| 909 | | - | deposit or by issuance of a check.839 |
|---|
| 910 | | - | (h) A licensee shall utilize geofencing technology to ensure that online sports betting is840 |
|---|
| 911 | | - | available only to bettors who are physically located in this state. Servers, including the use841 |
|---|
| 912 | | - | of backup servers, may be located outside of this state, consistent with federal law. To the842 |
|---|
| 913 | | - | extent required by federal law, a licensee shall maintain in this state the servers it uses to843 |
|---|
| 914 | | - | accept wagers on a sporting event placed by bettors located in this state.844 |
|---|
| 915 | | - | (i) Each licensee shall clearly and conspicuously display on its website a statement845 |
|---|
| 916 | | - | indicating that it is illegal for a person under 21 years of age to engage in sports betting in846 |
|---|
| 917 | | - | this state.847 |
|---|
| 918 | | - | (j) The corporation shall promulgate rules and regulations for purposes of regulating sports848 |
|---|
| 919 | | - | betting via online sports betting.849 |
|---|
| 920 | | - | 50-27-171.850 |
|---|
| 921 | | - | (a) Licensees shall allow bettors to limit their betting activity with the licensee by, at a851 |
|---|
| 922 | | - | minimum, giving bettors the opportunity to place limits on the amounts deposited, the852 |
|---|
| 923 | | - | amounts wagered, and the amount of time spent wagering. Licensees shall take reasonable853 |
|---|
| 924 | | - | steps to prevent bettors from overriding their self-imposed responsible gambling limits.854 |
|---|
| 925 | | - | (b) The corporation shall promulgate rules and regulations that require a licensee to855 |
|---|
| 926 | | - | implement responsible sports betting programs. Such rules and regulations shall require856 |
|---|
| 927 | | - | a licensee to develop a strategic implementation plan with details as to:857 |
|---|
| 928 | | - | (1) The use of player data and technology to aid in identifying potential problem858 |
|---|
| 929 | | - | gamblers;859 |
|---|
| 930 | | - | S. B. 386 (SUB) |
|---|
| 931 | | - | - 34 - 24 LC 36 5897S |
|---|
| 932 | | - | (2) The use of automated triggers to identify and manage accounts of potential problem860 |
|---|
| 933 | | - | gamblers; and861 |
|---|
| 934 | | - | (3) The levels of intervention and education provided to identified at-risk players, which862 |
|---|
| 935 | | - | shall include at a minimum:863 |
|---|
| 936 | | - | (A) A first phase involving communications with the individual in order to educate him864 |
|---|
| 937 | | - | or her on the availability of various responsible gaming features and resources offered865 |
|---|
| 938 | | - | by the licensee;866 |
|---|
| 939 | | - | (B) A second phase that includes a video tutorial displayed to the individual either as867 |
|---|
| 940 | | - | one or multiple videos that provides education on the features and resources available;868 |
|---|
| 941 | | - | and869 |
|---|
| 942 | | - | (C) A third phase, when warranted, that includes access to a responsible gaming870 |
|---|
| 943 | | - | professional provided by the licensee to advise the individual on possible corrective871 |
|---|
| 944 | | - | actions to address at-risk behavior.872 |
|---|
| 15 | + | to provide for legislative findings; to revise and provide for definitions; to provide for the7 |
|---|
| 16 | + | corporation's powers and duties relative to sports betting; to provide for the procedures,8 |
|---|
| 17 | + | limitations, requirements, and qualifications of the licensing of any person offering,9 |
|---|
| 18 | + | operating, or managing sports betting in this state; to provide for rules and regulations10 |
|---|
| 19 | + | promulgated by the corporation; to provide for a privilege tax; to require certain reports; to11 |
|---|
| 20 | + | regulate wagers and provide requirements for bettors; to provide for bettors to restrict12 |
|---|
| 21 | + | themselves from placing certain wagers; to provide certain resources for individuals with13 |
|---|
| 22 | + | problem gambling or a betting or gambling disorder; to provide for the collection and14 |
|---|
| 23 | + | disposition of fees and fines; to prohibit certain conduct by the corporation, employees of the15 |
|---|
| 24 | + | corporation, licensees, and other persons; to provide for certain penalties; to provide for16 |
|---|
| 25 | + | construction; to amend Part 1 of Article 2 of Chapter 12 of Title 16 of the Official Code of17 |
|---|
| 26 | + | Georgia Annotated, relating to gambling, so as to exclude any consideration paid to a sports18 |
|---|
| 27 | + | betting licensee from the definition of "bet"; to provide for the exemption of persons licensed19 |
|---|
| 28 | + | S. B. 386 |
|---|
| 29 | + | - 1 - 24 SB 386/CSFA |
|---|
| 30 | + | for online sports betting from regulations and restrictions regarding gambling information; |
|---|
| 31 | + | 20 |
|---|
| 32 | + | to amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and21 |
|---|
| 33 | + | taxation, so as to exempt wagers placed as part of sports betting; to provide for related22 |
|---|
| 34 | + | matters; to provide for a contingent effective date and automatic repeal; to repeal conflicting23 |
|---|
| 35 | + | laws; and for other purposes.24 |
|---|
| 36 | + | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:25 |
|---|
| 37 | + | PART I26 |
|---|
| 38 | + | SECTION 1-1.27 |
|---|
| 39 | + | Title 50 of the Official Code of Georgia Annotated, relating to state government, is amended28 |
|---|
| 40 | + | in Code Section 50-27-3, relating to definitions for the "Georgia Lottery for Education Act,"29 |
|---|
| 41 | + | by revising paragraphs (13) and (20) and adding a new paragraph to read as follows:30 |
|---|
| 42 | + | "(13) 'Lottery,' 'lotteries,' 'lottery game,' or 'lottery games' means any game of chance31 |
|---|
| 43 | + | approved by the board and operated pursuant to this chapter, including, but not limited32 |
|---|
| 44 | + | to, instant tickets, on-line |
|---|
| 45 | + | online games, online sports betting, and games using33 |
|---|
| 46 | + | mechanical or electronic devices but excluding pari-mutuel betting and casino gambling34 |
|---|
| 47 | + | as defined in this Code section."35 |
|---|
| 48 | + | "(20) 'Pari-mutuel betting' means a method or system of wagering on actual races36 |
|---|
| 49 | + | involving horses or dogs at tracks which involves the distribution of winnings by pools.37 |
|---|
| 50 | + | Such term shall not mean lottery games which may be predicated on a horse racing or dog38 |
|---|
| 51 | + | racing scheme that does not involve actual track events. Such term shall not mean the39 |
|---|
| 52 | + | lottery game of sports betting or traditional lottery games which may involve the40 |
|---|
| 53 | + | distribution of winnings by pools."41 |
|---|
| 54 | + | "(23.1) 'Sports betting' shall have the same meaning as provided in Code Section42 |
|---|
| 55 | + | 50-27-122."43 |
|---|
| 56 | + | S. B. 386 |
|---|
| 57 | + | - 2 - 24 SB 386/CSFA |
|---|
| 58 | + | SECTION 1-2. |
|---|
| 59 | + | 44 |
|---|
| 60 | + | Said title is further amended in Code Section 50-27-9, relating to general powers of the45 |
|---|
| 61 | + | Georgia Lottery Corporation, by revising paragraphs (18) and (19) of subsection (a) and46 |
|---|
| 62 | + | adding a new paragraph to read as follows:47 |
|---|
| 63 | + | "(18) To act as a retailer, to conduct promotions which involve the dispensing of lottery48 |
|---|
| 64 | + | tickets or shares, and to establish and operate a sales facility to sell lottery tickets or49 |
|---|
| 65 | + | shares and any related merchandise; and |
|---|
| 66 | + | 50 |
|---|
| 67 | + | (19) To perform any actions and carry out any responsibilities provided for in Article 451 |
|---|
| 68 | + | of this chapter; and52 |
|---|
| 69 | + | (19)(20) To adopt and amend such regulations, policies, and procedures as necessary to53 |
|---|
| 70 | + | carry out and implement its powers and duties, organize and operate the corporation,54 |
|---|
| 71 | + | regulate the conduct of lottery games in general, and any other matters necessary or55 |
|---|
| 72 | + | desirable for the efficient and effective operation of the lottery or the convenience of the56 |
|---|
| 73 | + | public. The promulgation of any such regulations, policies, and procedures shall be57 |
|---|
| 74 | + | exempt from the requirements of Chapter 13 of this title, the 'Georgia Administrative58 |
|---|
| 75 | + | Procedure Act.'"59 |
|---|
| 76 | + | SECTION 1-3.60 |
|---|
| 77 | + | Said title is further amended in Code Section 50-27-13, relating to disposition of lottery61 |
|---|
| 78 | + | proceeds, budget report by Governor, appropriations by General Assembly, and shortfall62 |
|---|
| 79 | + | reserve subaccount, by revising paragraph (3) of subsection (b) as follows:63 |
|---|
| 80 | + | "(3)(A) Beginning in Fiscal Year 2025, a A shortfall reserve shall be maintained within64 |
|---|
| 81 | + | the Lottery for Education Account in an amount equal to at least 50 percent of net65 |
|---|
| 82 | + | proceeds deposited into such account for the preceding fiscal year of the average66 |
|---|
| 83 | + | amount of net proceeds deposited into such account for the preceding three fiscal years,67 |
|---|
| 84 | + | hereinafter referred to as the minimum reserve. Beginning in Fiscal Year 2025 and for68 |
|---|
| 85 | + | each fiscal year thereafter, if on the last day of the preceding fiscal year the total reserve69 |
|---|
| 86 | + | S. B. 386 |
|---|
| 87 | + | - 3 - 24 SB 386/CSFA |
|---|
| 88 | + | fund balance exceeds the minimum reserve, an amount equal to 10 percent of the excess70 |
|---|
| 89 | + | reserve funds, meaning the amount that the total reserve fund balance exceeds the71 |
|---|
| 90 | + | minimum reserve, shall be appropriated for educational purposes and programs.72 |
|---|
| 91 | + | (B) If the net proceeds paid into the Lottery for Education Account in any year are not73 |
|---|
| 92 | + | sufficient to meet the amount appropriated for education educational purposes and74 |
|---|
| 93 | + | programs, the shortfall reserve may be drawn upon to meet the deficiency and any75 |
|---|
| 94 | + | amount so drawn may count for purposes of appropriations in subparagraph (A) of this76 |
|---|
| 95 | + | paragraph.77 |
|---|
| 96 | + | (C) If In the event the shortfall reserve is drawn upon and falls below 50 percent of the78 |
|---|
| 97 | + | average amount of net proceeds deposited into such account for the preceding three79 |
|---|
| 98 | + | fiscal year years, the shortfall reserve shall be replenished to the level required by80 |
|---|
| 99 | + | subparagraph (A) of this paragraph in the next fiscal year and the lottery-funded lottery81 |
|---|
| 100 | + | funded programs shall be reviewed and adjusted accordingly."82 |
|---|
| 101 | + | PART II83 |
|---|
| 102 | + | SECTION 2-1.84 |
|---|
| 103 | + | Said title is further amended by adding a new article to Chapter 27, relating to the "Georgia85 |
|---|
| 104 | + | Lottery for Education Act," to read as follows:86 |
|---|
| 105 | + | "ARTICLE 487 |
|---|
| 106 | + | Part 188 |
|---|
| 107 | + | 50-27-120.89 |
|---|
| 108 | + | This article shall be known and may be cited as the 'Georgia Lottery Game of Sports90 |
|---|
| 109 | + | Betting Act.'91 |
|---|
| 110 | + | S. B. 386 |
|---|
| 111 | + | - 4 - 24 SB 386/CSFA |
|---|
| 112 | + | 50-27-121.92 |
|---|
| 113 | + | The General Assembly finds that:93 |
|---|
| 114 | + | (1) Sports betting shall be overseen and regulated, and may also be offered, by the94 |
|---|
| 115 | + | Georgia Lottery Corporation in a manner that provides continuing entertainment to the95 |
|---|
| 116 | + | public, maximizes revenues, protects consumers, and ensures that sports betting is96 |
|---|
| 117 | + | operated in this state with integrity and dignity and free of political influence;97 |
|---|
| 118 | + | (2) The corporation shall be accountable to the General Assembly and to the public for98 |
|---|
| 119 | + | the management and oversight of sports betting in this state through a system of audits99 |
|---|
| 120 | + | and reports;100 |
|---|
| 121 | + | (3) The ability to offer sports betting in this state under a license issued in accordance101 |
|---|
| 122 | + | with this article constitutes a taxable privilege and not a right;102 |
|---|
| 123 | + | (4) Net proceeds of sports betting conducted pursuant to this article shall be used for the103 |
|---|
| 124 | + | purposes authorized by Article I, Section II, Paragraph VIII of the Constitution; and104 |
|---|
| 125 | + | (5) In accordance with Code Section 50-27-2, sports betting shall be conducted in a105 |
|---|
| 126 | + | manner so as to safeguard the fiscal soundness of the state, to enhance public welfare, and106 |
|---|
| 127 | + | to support the funding authorized by Article I, Section II, Paragraph VIII(c) of the107 |
|---|
| 128 | + | Constitution.108 |
|---|
| 129 | + | 50-27-122.109 |
|---|
| 130 | + | As used in this article, the term:110 |
|---|
| 131 | + | (1) 'Adjusted gross income' means a licensee's gross sports betting income minus federal111 |
|---|
| 132 | + | excise taxes and minus the total amount paid out to winning bettors, including the cash112 |
|---|
| 133 | + | value of merchandise awarded as winnings.113 |
|---|
| 134 | + | (2) 'Applicant' means any person that applies for a license under this article.114 |
|---|
| 135 | + | (3) 'Bettor' means an individual who is:115 |
|---|
| 136 | + | (A) Physically present in this state when placing a wager with a licensee;116 |
|---|
| 137 | + | (B) Twenty-one years of age or older; and117 |
|---|
| 138 | + | S. B. 386 |
|---|
| 139 | + | - 5 - 24 SB 386/CSFA |
|---|
| 140 | + | (C) Not prohibited from placing a wager or bet under Code Section 50-27-162.118 |
|---|
| 141 | + | (4) 'Bond' means a bond held in escrow for the purpose of maintaining adequate reserves119 |
|---|
| 142 | + | to account for losses suffered by a licensee and owed to bettors.120 |
|---|
| 143 | + | (5) 'Cheating' means improving the chances of winning or altering the outcome through121 |
|---|
| 144 | + | deception, interference, or manipulation of a sporting event or of any equipment,122 |
|---|
| 145 | + | including software, pertaining to or used in relation to the equipment used for or in123 |
|---|
| 146 | + | connection with the sporting event on which wagers are placed or invited. Such term124 |
|---|
| 147 | + | shall include match fixing and attempts and conspiracy to cheat.125 |
|---|
| 148 | + | (6) 'Collegiate sporting event' means a sporting or athletic event involving a sports or126 |
|---|
| 149 | + | athletic team of a public or private institution of higher education.127 |
|---|
| 150 | + | (7) 'Esports event' means an organized video game competition between players who128 |
|---|
| 151 | + | play individually or as teams.129 |
|---|
| 152 | + | (8) 'Fantasy or simulated contest' means a game or event in which one or more players130 |
|---|
| 153 | + | compete based on winning outcomes that reflect the relative knowledge and skill of the131 |
|---|
| 154 | + | players and are determined predominately by accumulated statistical results of the132 |
|---|
| 155 | + | performance of individuals, including, but not limited to, athletes in sporting events.133 |
|---|
| 156 | + | (9) 'Fixed-odds betting' means bets made at predetermined odds or on the spread where134 |
|---|
| 157 | + | the return to the bettor is unaffected by any later change in odds or the spread.135 |
|---|
| 158 | + | (10) 'Futures wager' means a wager made on the occurrence of an event in the future136 |
|---|
| 159 | + | relating to a sporting event.137 |
|---|
| 160 | + | (11) 'Gross sports betting income' means the total of all moneys paid by bettors to a138 |
|---|
| 161 | + | licensee as wagers, but does not include the value of promotional credits used to place139 |
|---|
| 162 | + | wagers.140 |
|---|
| 163 | + | (12) 'Institutional investor' means:141 |
|---|
| 164 | + | (A) A retirement fund administered by a public agency for the exclusive benefit of142 |
|---|
| 165 | + | federal, state, or local public employees;143 |
|---|
| 166 | + | (B) An investment company registered under the Investment Company Act of 1940;144 |
|---|
| 167 | + | S. B. 386 |
|---|
| 168 | + | - 6 - 24 SB 386/CSFA |
|---|
| 169 | + | (C) A chartered or licensed life insurance company or property and casualty insurance145 |
|---|
| 170 | + | company;146 |
|---|
| 171 | + | (D) A banking and other chartered or licensed lending institution;147 |
|---|
| 172 | + | (E) An investment advisor registered under the Investment Advisers Act of 1940; or148 |
|---|
| 173 | + | (F) A pension investment board.149 |
|---|
| 174 | + | (13) 'License' means any of the licenses issued by the corporation under this article.150 |
|---|
| 175 | + | (14) 'Licensee' means a person that holds a license issued by the corporation under this151 |
|---|
| 176 | + | article.152 |
|---|
| 177 | + | (15) 'Master sports betting licensee' means the Georgia Lottery Corporation.153 |
|---|
| 178 | + | (16) 'Material nonpublic information' means information that has not been disseminated154 |
|---|
| 179 | + | publicly concerning an athlete, contestant, prospective contestant, or athletic team,155 |
|---|
| 180 | + | including, without limitation, confidential information related to medical conditions or156 |
|---|
| 181 | + | treatment, physical or mental health or conditioning, physical therapy or recovery,157 |
|---|
| 182 | + | discipline, sanctions, academic status, education records, eligibility, playbooks, signals,158 |
|---|
| 183 | + | schemes, techniques, game plans, practices, strategies, assessments, systems, drills, or159 |
|---|
| 184 | + | recordings of practices or other athletic activities.160 |
|---|
| 185 | + | (17) 'Merchandise' means any goods or services provided to bettors free of charge, at a161 |
|---|
| 186 | + | discounted rate, or in the form of a rebate or credit.162 |
|---|
| 187 | + | (18) 'Minor' means an individual who is less than 21 years of age.163 |
|---|
| 188 | + | (19) 'Moneyline wager' means the fixed odds in relation to a dollar amount that a team164 |
|---|
| 189 | + | or person participating in a sporting event will win outright regardless of the spread.165 |
|---|
| 190 | + | (20) 'Official event data' means statistics, results, outcomes, and other data related to a166 |
|---|
| 191 | + | sporting event obtained pursuant to an agreement with the relevant sporting events167 |
|---|
| 192 | + | operator whose corporate headquarters is based in the United States or an entity expressly168 |
|---|
| 193 | + | authorized by such sporting events operator to provide such information to licensees for169 |
|---|
| 194 | + | purposes of determining the outcome of tier 2 sports wagers on such sporting event.170 |
|---|
| 195 | + | S. B. 386 |
|---|
| 196 | + | - 7 - 24 SB 386/CSFA |
|---|
| 197 | + | (21) 'Official league data' means statistics, results, outcomes, and other data related to171 |
|---|
| 198 | + | a sporting event obtained pursuant to an agreement with the relevant professional sports172 |
|---|
| 199 | + | governing body whose corporate headquarters is based in the United States or an entity173 |
|---|
| 200 | + | expressly authorized by such professional sports governing body to provide such174 |
|---|
| 201 | + | information to licensees for purposes of determining the outcome of tier 2 sports wagers.175 |
|---|
| 202 | + | (22) 'Online sports betting' means a wager on a sporting event that is placed via the176 |
|---|
| 203 | + | internet through any electronic device and accepted through an online sports betting177 |
|---|
| 204 | + | platform.178 |
|---|
| 205 | + | (23) 'Online sports betting platform' means the combination of hardware, software, and179 |
|---|
| 206 | + | data networks used to manage, administer, or control online sports betting and any180 |
|---|
| 207 | + | associated wagers accessible by any electronic means.181 |
|---|
| 208 | + | (24) 'Online sports betting services provider' means a person that contracts with the182 |
|---|
| 209 | + | master sports betting licensee or a Type 1 sports betting licensee under Code Section183 |
|---|
| 210 | + | 50-27-133 to operate online sports betting on behalf of such licensee and that is licensed184 |
|---|
| 211 | + | by the corporation.185 |
|---|
| 212 | + | (25) 'Over/under wager' means a single wager that predicts whether the combined score186 |
|---|
| 213 | + | of the two persons or teams engaged in a sporting event will be lower or higher than a187 |
|---|
| 214 | + | predetermined number.188 |
|---|
| 215 | + | (26) 'Parlay wager' means a single wager that incorporates two or more individual bets189 |
|---|
| 216 | + | for purposes of earning a higher payout if each bet incorporated within the wager wins.190 |
|---|
| 217 | + | (27) 'Person' means an individual or entity.191 |
|---|
| 218 | + | (28) 'Principal owner' means a person that owns an interest of 10 percent or more of the192 |
|---|
| 219 | + | entity.193 |
|---|
| 220 | + | (29) 'Professional sporting event' means an athletic or sporting event involving at least194 |
|---|
| 221 | + | two competitors who have the opportunity to receive compensation for participating in195 |
|---|
| 222 | + | such event.196 |
|---|
| 223 | + | S. B. 386 |
|---|
| 224 | + | - 8 - 24 SB 386/CSFA |
|---|
| 225 | + | (30) 'Professional sports governing body' means the organization, league, or association197 |
|---|
| 226 | + | whose corporate headquarters is based in the United States that oversees a sport and198 |
|---|
| 227 | + | prescribes final rules and enforces codes of conduct with respect to such sport and199 |
|---|
| 228 | + | participants therein.200 |
|---|
| 229 | + | (31) 'Professional sports team' means a major league professional team:201 |
|---|
| 230 | + | (A) Based in this state;202 |
|---|
| 231 | + | (B) That plays baseball, football, men's basketball, soccer, or women's basketball; and203 |
|---|
| 232 | + | (C) Whose regular season games have had the highest attendance for its respective204 |
|---|
| 233 | + | professional sport in the state during the past five years.205 |
|---|
| 234 | + | (32) 'Proposition wager' means a wager on a single specific action, statistic, occurrence,206 |
|---|
| 235 | + | or nonoccurrence to be determined during a sporting event and includes any such action,207 |
|---|
| 236 | + | statistic, occurrence, or nonoccurrence that does not directly affect the final outcome of208 |
|---|
| 237 | + | the sporting event to which it relates.209 |
|---|
| 238 | + | (33) 'Relative' means a spouse, father, mother, son, daughter, grandfather, grandmother,210 |
|---|
| 239 | + | brother, sister, uncle, aunt, cousin, nephew, niece, father-in-law, mother-in-law,211 |
|---|
| 240 | + | son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother,212 |
|---|
| 241 | + | stepson, stepdaughter, stepbrother, stepsister, half-brother, or half-sister.213 |
|---|
| 242 | + | (34) 'Sporting event' means any:214 |
|---|
| 243 | + | (A) Professional sporting or professional athletic event, including motor sports215 |
|---|
| 244 | + | sanctioned by a national or international organization or association;216 |
|---|
| 245 | + | (B) Collegiate sporting event;217 |
|---|
| 246 | + | (C) Olympic sporting or athletic event;218 |
|---|
| 247 | + | (D) Sporting or athletic event sanctioned by a national or international organization or219 |
|---|
| 248 | + | association;220 |
|---|
| 249 | + | (E) Sporting or athletic event conducted or organized by a sporting events operator;221 |
|---|
| 250 | + | (F) Esports event; or222 |
|---|
| 251 | + | (G) Other event authorized by the corporation.223 |
|---|
| 252 | + | S. B. 386 |
|---|
| 253 | + | - 9 - 24 SB 386/CSFA |
|---|
| 254 | + | Such term shall not include a nonprofessional, noncollegiate, or non-Olympic sporting224 |
|---|
| 255 | + | or athletic event if the majority of the participants are under the age of 18 years and shall225 |
|---|
| 256 | + | not include any Special Olympics sporting or athletic event.226 |
|---|
| 257 | + | (35) 'Sporting events operator' means a person that conducts or organizes a sporting227 |
|---|
| 258 | + | event for athletes or other participants that is not held or sanctioned as an official sporting228 |
|---|
| 259 | + | event of a professional sports governing body.229 |
|---|
| 260 | + | (36) 'Sports betting' means online sports betting.230 |
|---|
| 261 | + | (37) 'Sports betting equipment' means any of the following that is directly used in231 |
|---|
| 262 | + | connection with the operation of sports betting:232 |
|---|
| 263 | + | (A) Any mechanical, electronic, or other device, mechanism, or equipment;233 |
|---|
| 264 | + | (B) Any software, application, components, or other goods; or234 |
|---|
| 265 | + | (C) Anything to be installed or used on a personal electronic device.235 |
|---|
| 266 | + | (38)(A) 'Sports betting supplier' means a person that provides sports betting equipment236 |
|---|
| 267 | + | necessary for the creation of sports betting markets and the determination of bet237 |
|---|
| 268 | + | outcomes, directly to any licensee involved in the acceptance of bets, including any of238 |
|---|
| 269 | + | the following:239 |
|---|
| 270 | + | (i) Providers of data feeds and odds services;240 |
|---|
| 271 | + | (ii) Platform providers;241 |
|---|
| 272 | + | (iii) Risk management providers:242 |
|---|
| 273 | + | (iv) Integrity monitoring providers; and243 |
|---|
| 274 | + | (v) Other providers of sports betting supplier services as determined by the244 |
|---|
| 275 | + | corporation.245 |
|---|
| 276 | + | (B) Such term shall not include a professional sports governing body that:246 |
|---|
| 277 | + | (i) Provides official league data concerning its own sporting event to a sports betting247 |
|---|
| 278 | + | licensee solely on that basis; or248 |
|---|
| 279 | + | (ii) Provides raw statistical match data to one or more designated and licensed249 |
|---|
| 280 | + | suppliers of data feeds and odds services solely on that basis.250 |
|---|
| 281 | + | S. B. 386 |
|---|
| 282 | + | - 10 - 24 SB 386/CSFA |
|---|
| 283 | + | (39) 'Spread' means the predicted scoring differential between two persons or teams251 |
|---|
| 284 | + | engaged in a sporting event.252 |
|---|
| 285 | + | (40) 'Supervisory employee' means a principal owner or employee having the authority253 |
|---|
| 286 | + | to act on behalf of a licensee whose judgment is relied upon to manage and advance the254 |
|---|
| 287 | + | sports betting business operations of a licensee.255 |
|---|
| 288 | + | (41) 'Tier 1 sports wager' means a sports wager that is determined solely by the final256 |
|---|
| 289 | + | score or final outcome of the sporting event and is placed before the sporting event has257 |
|---|
| 290 | + | begun.258 |
|---|
| 291 | + | (42) 'Tier 2 sports wager' means a wager that is not a tier 1 sports wager.259 |
|---|
| 292 | + | (43) 'Type 1 eligible entity' means any of the following:260 |
|---|
| 293 | + | (A) Any professional sports team;261 |
|---|
| 294 | + | (B) A professional sports governing body that holds one or more sanctioned annual262 |
|---|
| 295 | + | golf tournaments on a national tour of professional golf in this state, and has held one263 |
|---|
| 296 | + | or more of the same or different sanctioned annual golf tournaments on a national tour264 |
|---|
| 297 | + | of professional golf in this state for at least 30 years;265 |
|---|
| 298 | + | (C) The owner of a facility in this state that has held an annual invitational golf266 |
|---|
| 299 | + | tournament for professional and amateur golfers for at least 30 years;267 |
|---|
| 300 | + | (D) The owner of a facility located in this state that hosts automobile races on a268 |
|---|
| 301 | + | national association for stock car racing national tour or a wholly owned for-profit269 |
|---|
| 302 | + | subsidiary of the owner of such a facility, if the owner is a nonprofit corporation or270 |
|---|
| 303 | + | nonprofit organization; and271 |
|---|
| 304 | + | (E) The Georgia Lottery Corporation.272 |
|---|
| 305 | + | (44) 'Type 1 sports betting licensee' means the master sports betting licensee, an online273 |
|---|
| 306 | + | sports betting services provider awarded a Type 1 license via the public procurement274 |
|---|
| 307 | + | process by the master sports betting licensee, or a Type 1 eligible entity licensed or275 |
|---|
| 308 | + | authorized by the corporation to directly or indirectly offer online sports betting.276 |
|---|
| 309 | + | S. B. 386 |
|---|
| 310 | + | - 11 - 24 SB 386/CSFA |
|---|
| 311 | + | (45) 'Wager' or 'bet' means a sum of money that is risked by a bettor on the unknown277 |
|---|
| 312 | + | outcome of one or more sporting events or portions of sporting events. Such term shall278 |
|---|
| 313 | + | include single-game wagers, futures wagers, tier 1 or tier 2 wagers, teaser wagers, parlay279 |
|---|
| 314 | + | wagers, over/under wagers, moneyline wagers, pools, exchange wagering, in-game280 |
|---|
| 315 | + | wagering, in-play wagers, proposition wagers, straight wagers, fixed-odds betting, and281 |
|---|
| 316 | + | any other bet or wager approved by the corporation. Such term shall not include a282 |
|---|
| 317 | + | pari-mutuel bet or wager or an entry fee paid to participate in a fantasy or simulated283 |
|---|
| 318 | + | contest.284 |
|---|
| 319 | + | 50-27-123.285 |
|---|
| 320 | + | (a) The corporation shall have all powers and duties necessary to carry out the provisions286 |
|---|
| 321 | + | of this article and to exercise the control of the lottery game of sports betting in this state287 |
|---|
| 322 | + | as authorized by this article. Such powers and duties shall include, but shall not be limited288 |
|---|
| 323 | + | to, the following:289 |
|---|
| 324 | + | (1) To have jurisdiction, supervision, and regulatory authority over sports betting,290 |
|---|
| 325 | + | including, but not limited to, regulation, licensure, and offering of sports betting on291 |
|---|
| 326 | + | mobile applications available state wide via the internet and through a limited number of292 |
|---|
| 327 | + | licenses to be awarded to Type 1 sports betting licensees;293 |
|---|
| 328 | + | (2) To appoint and employ such persons as the corporation deems essential to perform294 |
|---|
| 329 | + | its duties under this article and to ensure that such sports betting is conducted with order295 |
|---|
| 330 | + | and the highest integrity. Such employees shall possess such authority and perform such296 |
|---|
| 331 | + | duties as the corporation shall prescribe or delegate to them. Such employees shall be297 |
|---|
| 332 | + | compensated as provided by the corporation;298 |
|---|
| 333 | + | (3) To enter upon, investigate, and have free access to all places of business of any299 |
|---|
| 334 | + | licensee under this article and to compel the production of any books, ledgers, documents,300 |
|---|
| 335 | + | records, memoranda, or other information of any licensee to ensure such licensee's301 |
|---|
| 336 | + | S. B. 386 |
|---|
| 337 | + | - 12 - 24 SB 386/CSFA |
|---|
| 338 | + | compliance with the rules and regulations promulgated by the corporation pursuant to this302 |
|---|
| 339 | + | article;303 |
|---|
| 340 | + | (4) To promulgate any rules and regulations as the corporation deems necessary and304 |
|---|
| 341 | + | proper to administer the provisions of this article; provided, however, that the initial rules305 |
|---|
| 342 | + | and regulations governing sports betting shall be promulgated, provided for a period of306 |
|---|
| 343 | + | public comment, and adopted by the corporation within 90 days of the effective date of307 |
|---|
| 344 | + | this article. Such initial rules and regulations and all other rules and regulations of the308 |
|---|
| 345 | + | corporation promulgated and adopted pursuant to this article shall not be subject to309 |
|---|
| 346 | + | Chapter 13 of this title, the 'Georgia Administrative Procedure Act';310 |
|---|
| 347 | + | (5) To issue subpoenas for the attendance of witnesses before the corporation, administer311 |
|---|
| 348 | + | oaths, and compel production of records or other documents and testimony of witnesses312 |
|---|
| 349 | + | whenever, in the judgment of the corporation, it is necessary to do so for the effectual313 |
|---|
| 350 | + | discharge of the duties of the corporation under this article;314 |
|---|
| 351 | + | (6) To compel any person licensed by the corporation to file with the corporation such315 |
|---|
| 352 | + | data, documents, and information as shall appear to the corporation to be necessary for316 |
|---|
| 353 | + | the performance of the duties of the corporation under this article, including, but not317 |
|---|
| 354 | + | limited to, financial statements and information relative to stockholders and all others318 |
|---|
| 355 | + | with a pecuniary interest in such person;319 |
|---|
| 356 | + | (7) To prescribe the manner in which books and records of persons licensed or permitted320 |
|---|
| 357 | + | by the corporation under this article shall be kept;321 |
|---|
| 358 | + | (8) To enter into arrangements with any foreign or domestic government or322 |
|---|
| 359 | + | governmental agency for the purposes of exchanging information or performing any other323 |
|---|
| 360 | + | act to better ensure the proper conduct of betting under this article;324 |
|---|
| 361 | + | (9) To order such audits, in addition to those otherwise required by this article, as the325 |
|---|
| 362 | + | corporation deems necessary and desirable;326 |
|---|
| 363 | + | S. B. 386 |
|---|
| 364 | + | - 13 - 24 SB 386/CSFA |
|---|
| 365 | + | (10) Upon the receipt of a complaint of an alleged criminal violation of this article, to327 |
|---|
| 366 | + | immediately report such complaint to the appropriate law enforcement agency with328 |
|---|
| 367 | + | jurisdiction to investigate criminal activity;329 |
|---|
| 368 | + | (11) To provide for the reporting of the applicable amount of state and federal income330 |
|---|
| 369 | + | tax of persons claiming a prize or payoff for a winning wager under this article;331 |
|---|
| 370 | + | (12) To establish and administer programs for providing assistance to individuals with332 |
|---|
| 371 | + | problem gambling or a betting or gambling disorder, including, but not limited to:333 |
|---|
| 372 | + | (A) Educating potential gamblers of methods and types of bets and fairly informing334 |
|---|
| 373 | + | potential gamblers of the odds or likelihood of winning such bets;335 |
|---|
| 374 | + | (B) Establishing and administering programs for educating potential gamblers about336 |
|---|
| 375 | + | responsible gambling, the warning signs of problem gambling or betting or gambling337 |
|---|
| 376 | + | disorders and how to prevent and treat problem gambling or betting or gambling338 |
|---|
| 377 | + | disorders;339 |
|---|
| 378 | + | (C) Developing and funding responsible gaming education campaigns coupled with340 |
|---|
| 379 | + | prevention and education efforts within communities that raise awareness of potential341 |
|---|
| 380 | + | signs or risk factors of problem gambling or betting or gambling disorders;342 |
|---|
| 381 | + | (D) Encouraging the use of harm-minimizing measures by bettors, such as utilizing343 |
|---|
| 382 | + | limit-setting tools and reviewing personal data and information to make informed344 |
|---|
| 383 | + | decisions about gambling;345 |
|---|
| 384 | + | (E) Promulgating rules and regulations that enable bettors to self-limit with a licensee346 |
|---|
| 385 | + | and self-exclude from sports betting activities state wide. Any such rules or regulations347 |
|---|
| 386 | + | related to self-exclusion shall require the individual seeking self-exclusion to provide348 |
|---|
| 387 | + | identifying information, including, at a minimum, full name, address, date of birth, and349 |
|---|
| 388 | + | social security number;350 |
|---|
| 389 | + | (F) Adopting processes for individuals to express concerns related to problem351 |
|---|
| 390 | + | gambling or betting or gambling disorders to the corporation;352 |
|---|
| 391 | + | S. B. 386 |
|---|
| 392 | + | - 14 - 24 SB 386/CSFA |
|---|
| 393 | + | (G) Developing state-wide advertising guidelines to ensure that the marketing of sports353 |
|---|
| 394 | + | betting is not targeted to minors and does not include content, themes, and promotions354 |
|---|
| 395 | + | that have special appeal to individuals with problem gambling or a betting or gambling355 |
|---|
| 396 | + | disorder;356 |
|---|
| 397 | + | (H) Requiring the electronic posting of signs or notifications on online sports betting357 |
|---|
| 398 | + | platforms that bear the 1-800-GAMBLER toll-free number, which provides or directs358 |
|---|
| 399 | + | callers to assistance and resources for individuals with problem gambling or a betting359 |
|---|
| 400 | + | or gambling disorder; and360 |
|---|
| 401 | + | (I) To require licensees to implement systems to monitor their customers' betting and361 |
|---|
| 402 | + | provide customers with guidance, information, and options when their betting may be362 |
|---|
| 403 | + | problematic;363 |
|---|
| 404 | + | (13) To keep a true and full record of all proceedings of the corporation under this article364 |
|---|
| 405 | + | and preserve at the corporation's general office all books, documents, and papers of the365 |
|---|
| 406 | + | corporation;366 |
|---|
| 407 | + | (14) To adopt rules and regulations specific to the manner in which a licensee may367 |
|---|
| 408 | + | advertise its business operations as authorized by this article; and368 |
|---|
| 409 | + | (15) To comply with Code Section 50-27-14 as it relates to the lottery game of sports369 |
|---|
| 410 | + | betting in order to encourage participation by minority businesses.370 |
|---|
| 411 | + | (b) The corporation shall not have the power to prescribe a licensee's maximum or371 |
|---|
| 412 | + | minimum payout or hold percentage.372 |
|---|
| 413 | + | 50-27-124.373 |
|---|
| 414 | + | (a) The corporation shall prescribe by rules and regulations:374 |
|---|
| 415 | + | (1) The reserves that must be kept by licensees to comply with subparagraph (c)(7)(A)375 |
|---|
| 416 | + | of Code Section 50-27-130 to pay off bettors;376 |
|---|
| 417 | + | (2) Any insurance requirements for a licensee;377 |
|---|
| 418 | + | S. B. 386 |
|---|
| 419 | + | - 15 - 24 SB 386/CSFA |
|---|
| 420 | + | (3) Minimum requirements by which each licensee shall exercise effective control over378 |
|---|
| 421 | + | its internal fiscal affairs, including, without limitation, requirements for:379 |
|---|
| 422 | + | (A) Safeguarding assets and revenues, including evidence of indebtedness;380 |
|---|
| 423 | + | (B) Maintaining reliable records relating to accounts, transactions, profits and losses,381 |
|---|
| 424 | + | operations, and events; and382 |
|---|
| 425 | + | (C) Global risk management;383 |
|---|
| 426 | + | (4) Requirements for internal and independent audits of licensees;384 |
|---|
| 427 | + | (5) The manner in which periodic financial reports shall be submitted to the corporation385 |
|---|
| 428 | + | from each licensee, including the financial information to be included in the reports;386 |
|---|
| 429 | + | (6) The type of information deemed to be confidential financial or proprietary387 |
|---|
| 430 | + | information that is not subject to any reporting requirements under this article;388 |
|---|
| 431 | + | (7) Policies, procedures, and processes designed to mitigate the risk of cheating and389 |
|---|
| 432 | + | money laundering; and390 |
|---|
| 433 | + | (8) Any post-employment restrictions necessary to maintain the integrity of sports391 |
|---|
| 434 | + | betting in this state.392 |
|---|
| 435 | + | Part 2393 |
|---|
| 436 | + | 50-27-130.394 |
|---|
| 437 | + | (a) Any person offering, operating, or managing sports betting in this state shall be395 |
|---|
| 438 | + | licensed by the corporation.396 |
|---|
| 439 | + | (b) The corporation shall issue licenses to qualified applicants able to meet the duties of397 |
|---|
| 440 | + | a license holder under this article and that the corporation determines will best satisfy the398 |
|---|
| 441 | + | following criteria:399 |
|---|
| 442 | + | (1) Expertise in the business of online sports betting;400 |
|---|
| 443 | + | (2) Integrity, sustainability, and safety of the online sports betting platform;401 |
|---|
| 444 | + | (3) Past relevant experience of the applicant;402 |
|---|
| 445 | + | S. B. 386 |
|---|
| 446 | + | - 16 - 24 SB 386/CSFA |
|---|
| 447 | + | (4) Advertising and promotional plans to increase and sustain revenue;403 |
|---|
| 448 | + | (5) The amount of adjusted gross income and associated tax revenue that an applicant404 |
|---|
| 449 | + | is projected to generate;405 |
|---|
| 450 | + | (6) Demonstrated commitment to and plans for the promotion of responsible gaming;406 |
|---|
| 451 | + | and407 |
|---|
| 452 | + | (7) Capacity to increase the number of bettors on the applicant's platform.408 |
|---|
| 453 | + | (c) An applicant for a license shall submit an application on a form in such manner and in409 |
|---|
| 454 | + | accordance with such requirements as may be prescribed by rules and regulations of the410 |
|---|
| 455 | + | corporation. Such rules and regulations shall require, at a minimum, that the application411 |
|---|
| 456 | + | include the following:412 |
|---|
| 457 | + | (1) If the applicant is an entity, identification of the applicant's principal owners, board413 |
|---|
| 458 | + | of directors, officers, and supervisory employees;414 |
|---|
| 459 | + | (2) Evidence of the applicant's certificate of fitness for sports betting affiliation. If the415 |
|---|
| 460 | + | applicant is an entity, such evidence shall be provided for every individual who is a416 |
|---|
| 461 | + | principal owner;417 |
|---|
| 462 | + | (3) Information, documentation, and assurances as may be required by the corporation418 |
|---|
| 463 | + | to establish by clear and convincing evidence the applicant's good character, honesty, and419 |
|---|
| 464 | + | integrity, including, but not limited to, information pertaining to family, habits, character,420 |
|---|
| 465 | + | reputation, criminal and arrest records, business activities, financial affairs, and business,421 |
|---|
| 466 | + | professional, and personal associates, covering at least the ten-year period immediately422 |
|---|
| 467 | + | preceding the filing of the application;423 |
|---|
| 468 | + | (4) Notice and a description of civil judgments obtained against the applicant pertaining424 |
|---|
| 469 | + | to antitrust or security regulation laws of the federal government, this state, or any other425 |
|---|
| 470 | + | state, jurisdiction, province, or country;426 |
|---|
| 471 | + | (5) To the extent available, letters of reference or the equivalent from law enforcement427 |
|---|
| 472 | + | agencies having jurisdiction of the applicant's place of residence and principal place of428 |
|---|
| 473 | + | business. Each such letter of reference shall indicate that the law enforcement agency429 |
|---|
| 474 | + | S. B. 386 |
|---|
| 475 | + | - 17 - 24 SB 386/CSFA |
|---|
| 476 | + | does not have any pertinent information concerning the applicant or, if such law430 |
|---|
| 477 | + | enforcement agency does have information pertaining to the applicant, shall provide such431 |
|---|
| 478 | + | information, to the extent permitted by law;432 |
|---|
| 479 | + | (6) If the applicant has conducted sports betting operations in another jurisdiction, a433 |
|---|
| 480 | + | letter of reference from the regulatory body that governs sports betting that specifies the434 |
|---|
| 481 | + | standing of the applicant with such regulatory body; provided, however, that, if no such435 |
|---|
| 482 | + | letter is received within 60 days of the request therefor, the applicant may submit a436 |
|---|
| 483 | + | statement under oath that the applicant is or was, during the period such activities were437 |
|---|
| 484 | + | conducted, in good standing with the regulatory body;438 |
|---|
| 485 | + | (7) Information, documentation, and assurances concerning financial background and439 |
|---|
| 486 | + | resources as may be required to establish by clear and convincing evidence the financial440 |
|---|
| 487 | + | stability, integrity, and responsibility of the applicant, including, but not limited to, bank441 |
|---|
| 488 | + | references, business and personal income and disbursement schedules, tax returns and442 |
|---|
| 489 | + | other reports filed with governmental agencies, and business and personal accounting and443 |
|---|
| 490 | + | check records and ledgers. Each applicant shall, in writing, authorize the examination of444 |
|---|
| 491 | + | all bank accounts and records as may be deemed necessary by the corporation. The445 |
|---|
| 492 | + | corporation may consider any relevant evidence of financial stability. In addition, the446 |
|---|
| 493 | + | applicant shall:447 |
|---|
| 494 | + | (A) Maintain a reserve of not less than $500,000.00 or the amount required to cover448 |
|---|
| 495 | + | the outstanding liabilities for wagers accepted by the licensee, whichever is greater. 449 |
|---|
| 496 | + | Outstanding liabilities for wagers shall mean the sum of patron account balances, the450 |
|---|
| 497 | + | amount paid by patrons for wagers that have not yet been determined, and the amount451 |
|---|
| 498 | + | owed but unpaid by licensees to patrons for wagers whose results have been452 |
|---|
| 499 | + | determined. The reserve may take the form of a bond, an irrevocable letter of credit,453 |
|---|
| 500 | + | payment processor reserves and receivables, cash or cash equivalents segregated from454 |
|---|
| 501 | + | operational funds, guaranty letter, or a combination thereof. Such reserve shall be455 |
|---|
| 502 | + | adequate to pay winning wagers to bettors when due. An applicant is presumed to have456 |
|---|
| 503 | + | S. B. 386 |
|---|
| 504 | + | - 18 - 24 SB 386/CSFA |
|---|
| 505 | + | met this standard if the applicant maintains, on a daily basis, subject to when banks are457 |
|---|
| 506 | + | open, a minimum reserve in an amount which is at least equal to the average daily458 |
|---|
| 507 | + | minimum reserve, calculated on a monthly basis, for the corresponding month in the459 |
|---|
| 508 | + | previous year;460 |
|---|
| 509 | + | (B) Meet ongoing operating expenses which are essential to the maintenance of461 |
|---|
| 510 | + | continuous and stable sports betting operations; and462 |
|---|
| 511 | + | (C) Pay, as and when due, all state and federal taxes;463 |
|---|
| 512 | + | (8) Information, documentation, and assurances as may be required to establish by clear464 |
|---|
| 513 | + | and convincing evidence that the applicant has sufficient business ability and sports465 |
|---|
| 514 | + | betting experience to establish the likelihood of the creation and maintenance of466 |
|---|
| 515 | + | successful, efficient sports betting operations in this state;467 |
|---|
| 516 | + | (9) Information, as required by rules and regulations of the corporation, regarding the468 |
|---|
| 517 | + | financial standing of the applicant;469 |
|---|
| 518 | + | (10) A nonrefundable application fee and annual licensing fee as follows:470 |
|---|
| 519 | + | (A) Applicants for a Type 1 sports betting license shall pay a nonrefundable471 |
|---|
| 520 | + | application fee in the amount of $100,000.00 and an annual licensing fee in the amount472 |
|---|
| 521 | + | of $1 million;473 |
|---|
| 522 | + | (B) Applicants for an online sports betting services provider license shall pay a474 |
|---|
| 523 | + | nonrefundable application fee in the amount of $10,000.00 and an annual licensing fee475 |
|---|
| 524 | + | of $100,000.00; provided, however, that an online sports betting services provider that476 |
|---|
| 525 | + | applies for and obtains a Type 1 sports betting license pursuant to paragraph (3) of477 |
|---|
| 526 | + | subsection (b) of Code Section 50-27-133 shall only be required to pay the478 |
|---|
| 527 | + | nonrefundable application fee and annual licensing fee applicable to the applicant's479 |
|---|
| 528 | + | Type 1 sports betting license; and480 |
|---|
| 529 | + | (C) Applicants for a sports betting supplier license shall pay a nonrefundable481 |
|---|
| 530 | + | application fee in the amount of $2,000.00 and an annual licensing fee of $20,000.00;482 |
|---|
| 531 | + | and483 |
|---|
| 532 | + | S. B. 386 |
|---|
| 533 | + | - 19 - 24 SB 386/CSFA |
|---|
| 534 | + | (11) Any additional information, documents, or assurances required by rules and484 |
|---|
| 535 | + | regulations of the corporation.485 |
|---|
| 536 | + | (d) The corporation shall review and approve or deny an application for a license not more486 |
|---|
| 537 | + | than 90 days after receipt of an application.487 |
|---|
| 538 | + | 50-27-131.488 |
|---|
| 539 | + | (a) A licensee may renew its license by submitting an application on a form in such489 |
|---|
| 540 | + | manner and in accordance with such requirements as may be prescribed by rules and490 |
|---|
| 541 | + | regulations of the corporation. A licensee shall submit the nonrefundable application fee491 |
|---|
| 542 | + | prescribed under paragraph (10) of subsection (c) of Code Section 50-27-130 with its492 |
|---|
| 543 | + | application for license renewal.493 |
|---|
| 544 | + | (b) For each application for licensure or renewal of a license approved under this Code494 |
|---|
| 545 | + | section, the amount of the application fee shall be credited toward the licensee's annual495 |
|---|
| 546 | + | licensing fee and the licensee shall remit the balance of the annual license fee to the496 |
|---|
| 547 | + | corporation upon approval of a license.497 |
|---|
| 548 | + | (c) Each licensee shall have a continuing duty to promptly inform the corporation of any498 |
|---|
| 549 | + | change in status relating to any information that may disqualify the licensee from holding499 |
|---|
| 550 | + | a license under Code Section 50-27-132.500 |
|---|
| 551 | + | (d) A professional sports governing body and a Type 1 eligible entity may enter into501 |
|---|
| 552 | + | commercial agreements with an online sports betting services provider or other entities that502 |
|---|
| 553 | + | provide for such professional sports governing body and Type 1 eligible entity to share in503 |
|---|
| 554 | + | the amounts wagered or revenue derived from wagers on the sporting events of such504 |
|---|
| 555 | + | professional sports governing body and Type 1 eligible entity. A professional sports505 |
|---|
| 556 | + | governing body and a Type 1 eligible entity shall not be required to obtain any approval506 |
|---|
| 557 | + | or other form of authorization from the corporation to enter into such commercial507 |
|---|
| 558 | + | agreements or to lawfully accept such amounts or revenues. The corporation shall not508 |
|---|
| 559 | + | S. B. 386 |
|---|
| 560 | + | - 20 - 24 SB 386/CSFA |
|---|
| 561 | + | prescribe any terms or conditions that are required to be included in such commercial509 |
|---|
| 562 | + | agreements.510 |
|---|
| 563 | + | (e) A person that holds a license or permit to engage in sports betting issued by another511 |
|---|
| 564 | + | jurisdiction, either directly or through a parent company or affiliated subsidiary, may512 |
|---|
| 565 | + | submit a request to the corporation for a temporary license for such person to immediately513 |
|---|
| 566 | + | commence engagement in this state in sports betting. Such request shall include the514 |
|---|
| 567 | + | application fee and annual licensing fee required under paragraph (10) of subsection (c) of515 |
|---|
| 568 | + | Code Section 50-27-130.516 |
|---|
| 569 | + | (f) Upon receiving a request for a temporary license, the chief executive officer shall517 |
|---|
| 570 | + | review the request. If the chief executive officer reviews the request and determines that518 |
|---|
| 571 | + | the person requesting the temporary license holds a license or permit issued by another519 |
|---|
| 572 | + | jurisdiction to engage in sports betting and has paid the required application fee and annual520 |
|---|
| 573 | + | licensing fee, the chief executive officer may authorize such person to engage in sports521 |
|---|
| 574 | + | betting pursuant to this article under a temporary license for up to one year or until a final522 |
|---|
| 575 | + | determination on such person's application is made, whichever is later.523 |
|---|
| 576 | + | (g) All licenses issued under this article shall be valid for a term of five years, unless524 |
|---|
| 577 | + | suspended or revoked as provided under this article.525 |
|---|
| 578 | + | (h) The corporation may adopt rules and regulations prescribing the manner in which a526 |
|---|
| 579 | + | license may be transferred and a fee for a license transfer.527 |
|---|
| 580 | + | (i) A licensee may maintain the bond, letter of credit, or cash reserve at any bank lawfully528 |
|---|
| 581 | + | operating in this state and the licensee shall be the beneficiary of any interest accrued529 |
|---|
| 582 | + | thereon.530 |
|---|
| 583 | + | 50-27-132.531 |
|---|
| 584 | + | (a) The following persons shall not be eligible to apply for or obtain a license under this532 |
|---|
| 585 | + | article:533 |
|---|
| 586 | + | S. B. 386 |
|---|
| 587 | + | - 21 - 24 SB 386/CSFA |
|---|
| 588 | + | (1) A member of the board of directors or employee of the corporation or an employee534 |
|---|
| 589 | + | of a corporation vendor; provided, however, that a corporation vendor as an entity may535 |
|---|
| 590 | + | be eligible to apply for or obtain a license;536 |
|---|
| 591 | + | (2) An employee of a professional sports team on which the applicant offers sports537 |
|---|
| 592 | + | betting;538 |
|---|
| 593 | + | (3) A coach of or player for a collegiate, professional, or Olympic sports team or sport539 |
|---|
| 594 | + | for which the applicant offers sports betting, or an entity that has an affiliation or interest540 |
|---|
| 595 | + | in such a sports team or sport;541 |
|---|
| 596 | + | (4) An individual who is a member or employee of any professional sports governing542 |
|---|
| 597 | + | body or sporting events operator for which the applicant offers sports betting;543 |
|---|
| 598 | + | (5) An individual or entity with an owner, officer, or director who has been convicted of544 |
|---|
| 599 | + | a crime of moral turpitude or similar degree as specified in rules and regulations545 |
|---|
| 600 | + | promulgated by the corporation pursuant to this article;546 |
|---|
| 601 | + | (6) A person having the ability to directly affect the outcome of a sporting event upon547 |
|---|
| 602 | + | which the applicant offers sports betting;548 |
|---|
| 603 | + | (7) A trustee or regent of a governing board of a public or private institution of higher549 |
|---|
| 604 | + | education;550 |
|---|
| 605 | + | (8) An individual prohibited by the rules or regulations of a professional sports551 |
|---|
| 606 | + | governing body or sporting events operator of a collegiate sports team, league, or552 |
|---|
| 607 | + | association from participating in sports betting;553 |
|---|
| 608 | + | (9) A student or an employee of a public or private institution of higher education who554 |
|---|
| 609 | + | has access to material nonpublic information concerning a student athlete or a sports555 |
|---|
| 610 | + | team, unless such access to information is deemed incidental; and556 |
|---|
| 611 | + | (10) Any other category of persons, established by rules and regulations of the557 |
|---|
| 612 | + | corporation, that, if licensed, would negatively affect the integrity of sports betting in this558 |
|---|
| 613 | + | state.559 |
|---|
| 614 | + | S. B. 386 |
|---|
| 615 | + | - 22 - 24 SB 386/CSFA |
|---|
| 616 | + | (b) An individual listed in paragraphs (2) through (10) of subsection (a) of this Code560 |
|---|
| 617 | + | section may hold an ownership interest in an applicant or licensee without disqualifying561 |
|---|
| 618 | + | the applicant or licensee from obtaining or holding a license; provided, however, that such562 |
|---|
| 619 | + | an ownership interest of 25 percent or more shall require approval from the corporation. 563 |
|---|
| 620 | + | In determining whether such an ownership interest shall be the basis of disqualification, the564 |
|---|
| 621 | + | corporation shall consider whether such interest would negatively affect the integrity of565 |
|---|
| 622 | + | sports betting in this state and any other factors the corporation shall deem relevant.566 |
|---|
| 623 | + | 50-27-133.567 |
|---|
| 624 | + | (a) A Type 1 sports betting license authorizes the licensee, or its designated online sports568 |
|---|
| 625 | + | betting services provider, to offer online sports betting. If a Type 1 eligible entity569 |
|---|
| 626 | + | designates an online sports betting services provider, the designated online sports betting570 |
|---|
| 627 | + | services provider shall instead fulfill the application and operational requirements for sports571 |
|---|
| 628 | + | betting offered pursuant to this article. The corporation shall establish a procedure for a572 |
|---|
| 629 | + | Type 1 eligible entity to designate an online sports betting provider.573 |
|---|
| 630 | + | (b) The corporation shall issue not more than 16 Type 1 sports betting licenses as follows:574 |
|---|
| 631 | + | (1) Five Type 1 sports betting licenses shall be reserved for the Type 1 eligible entities575 |
|---|
| 632 | + | defined in subparagraph (A) of paragraph (43) of Code Section 50-27-122; provided,576 |
|---|
| 633 | + | however, that more than one license may be issued to an owner of multiple professional577 |
|---|
| 634 | + | sports teams;578 |
|---|
| 635 | + | (2) One Type 1 sports betting license shall be reserved for each of the Type 1 eligible579 |
|---|
| 636 | + | entities defined in subparagraphs (B) through (E) of paragraph (43) of Code Section580 |
|---|
| 637 | + | 50-27-122; and581 |
|---|
| 638 | + | (3) The corporation shall award the remaining seven Type 1 sports betting licenses to582 |
|---|
| 639 | + | separate online sports betting services providers via a public procurement process;583 |
|---|
| 640 | + | (c) The master sports betting license shall be deemed a Type 1 licensee and shall not be584 |
|---|
| 641 | + | required to apply for a license; provided, however, that an online sports betting services585 |
|---|
| 642 | + | S. B. 386 |
|---|
| 643 | + | - 23 - 24 SB 386/CSFA |
|---|
| 644 | + | provider engaged by the master sports betting licensee shall be required to apply for an586 |
|---|
| 645 | + | online sports betting services provider license to operate online sports betting on behalf of587 |
|---|
| 646 | + | the master sports betting licensee.588 |
|---|
| 647 | + | (d) A Type 1 eligible entity may contract with no more than one online sports betting589 |
|---|
| 648 | + | services provider to operate online sports betting on behalf of the Type 1 eligible entity.590 |
|---|
| 649 | + | (e) A Type 1 eligible entity shall provide written notice to the corporation of its intention591 |
|---|
| 650 | + | to apply for a Type 1 sports betting license within 60 days of the effective date of this592 |
|---|
| 651 | + | article. The failure of a Type 1 eligible entity to provide such written notice shall result in593 |
|---|
| 652 | + | the permanent disqualification and prohibition of such Type 1 eligible entity from594 |
|---|
| 653 | + | obtaining a Type 1 sports betting license.595 |
|---|
| 654 | + | (f) A Type 1 sports betting licensee shall not offer online sports betting until the596 |
|---|
| 655 | + | corporation has issued a Type 1 sports betting license to at least one online sports betting597 |
|---|
| 656 | + | services provider via the public procurement process as determined by the corporation.598 |
|---|
| 657 | + | (g) The corporation shall begin to accept applications for all 16 Type 1 sports betting599 |
|---|
| 658 | + | licenses under subsection (b) of this Code section on the same date.600 |
|---|
| 659 | + | (h) All applicants for the 16 Type 1 sports betting licenses under subsection (b) of this601 |
|---|
| 660 | + | Code section that have submitted an application within 30 days of the date in which the602 |
|---|
| 661 | + | corporation began to accept applications for Type 1 sports betting licenses shall be given603 |
|---|
| 662 | + | an equal opportunity to first commence offering, conducting, or operating online sports604 |
|---|
| 663 | + | betting in this state on the same day, and in any event not later than January 31, 2025.605 |
|---|
| 664 | + | (i) A Type 1 eligible entity described in subparagraphs (A) through (D) of paragraph (43)606 |
|---|
| 665 | + | of Code Section 50-27-122 that becomes a Type 1 sports betting licensee or designates an607 |
|---|
| 666 | + | online sports betting services provider shall establish and maintain procedures with respect608 |
|---|
| 667 | + | to sporting events which the Type 1 eligible entity participates in or administers to ensure609 |
|---|
| 668 | + | avoidance of conflicts of interest in the operation of sports betting in this state.610 |
|---|
| 669 | + | 50-27-134.611 |
|---|
| 670 | + | S. B. 386 |
|---|
| 671 | + | - 24 - 24 SB 386/CSFA |
|---|
| 672 | + | (a) An online sports betting services provider shall offer online sports betting only in612 |
|---|
| 673 | + | accordance with the provisions of this article and the rules and regulations adopted by the613 |
|---|
| 674 | + | corporation under this article.614 |
|---|
| 675 | + | (b) An online sports betting services provider shall obtain a license under this article615 |
|---|
| 676 | + | before offering online sports betting pursuant to a contract with a Type 1 sports betting616 |
|---|
| 677 | + | licensee or master sports betting licensee. An online sports betting services provider617 |
|---|
| 678 | + | license shall entitle the holder to contract with no more than one Type 1 sports betting618 |
|---|
| 679 | + | licensee.619 |
|---|
| 680 | + | (c) If the holder of a Type 1 sports betting license is a Type 1 eligible entity and is a620 |
|---|
| 681 | + | member of a league, association, or organization that prevents the holder from being621 |
|---|
| 682 | + | subject to the regulatory control of the corporation or from otherwise operating under the622 |
|---|
| 683 | + | license, such a Type 1 eligible entity may contractually appoint an online sports betting623 |
|---|
| 684 | + | services provider for all aspects of corporation oversight and operations under the Type 1624 |
|---|
| 685 | + | sports betting license.625 |
|---|
| 686 | + | (d) Institutional investors shall be exempt from any and all qualification and disclosure626 |
|---|
| 687 | + | requirements under this article or required under the rules and regulations promulgated by627 |
|---|
| 688 | + | the corporation pursuant to this article. Such exemption shall extend to the owners,628 |
|---|
| 689 | + | directors, and officers of such institutional investors.629 |
|---|
| 690 | + | 50-27-135.630 |
|---|
| 691 | + | Proposition wagers shall only be offered on online sports betting platforms by the master631 |
|---|
| 692 | + | sports betting licensee, an online sports betting services provider that contracts with the632 |
|---|
| 693 | + | master sports betting licensee, or a Type 1 sports betting licensee.633 |
|---|
| 694 | + | Part 3634 |
|---|
| 695 | + | 50-27-150.635 |
|---|
| 696 | + | S. B. 386 |
|---|
| 697 | + | - 25 - 24 SB 386/CSFA |
|---|
| 698 | + | (a) Notwithstanding any other law to the contrary, there shall be imposed an annual636 |
|---|
| 699 | + | privilege tax of 20 percent of the adjusted gross income derived from online sports betting637 |
|---|
| 700 | + | in accordance with this Code section.638 |
|---|
| 701 | + | (b) The privilege tax described in subsection (a) of this Code section shall be paid by the639 |
|---|
| 702 | + | online sports betting services provider; provided, however, that, if a Type 1 sports betting640 |
|---|
| 703 | + | licensee does not contract with an online sports betting services provider, such privilege641 |
|---|
| 704 | + | tax shall be paid by such Type 1 sports betting licensee as provided for in subsection (c)642 |
|---|
| 705 | + | of this Code section. This subsection shall not apply to the master sports betting licensee.643 |
|---|
| 706 | + | (c) The privilege tax imposed under this Code section shall be paid monthly by the online644 |
|---|
| 707 | + | sports betting services provider based on its monthly adjusted gross income for the645 |
|---|
| 708 | + | immediately preceding calendar month. The privilege tax shall be paid to the corporation646 |
|---|
| 709 | + | in accordance with rules and regulations promulgated by the corporation. If the online647 |
|---|
| 710 | + | sports betting services provider's adjusted gross income for a month is a negative number,648 |
|---|
| 711 | + | such online sports betting services provider may carry over such negative amount to649 |
|---|
| 712 | + | subsequent months.650 |
|---|
| 713 | + | (d) All moneys from privilege taxes and fees collected under this Code section shall be651 |
|---|
| 714 | + | distributed and used as provided under Article I, Section II, Paragraph VIII(c) of the652 |
|---|
| 715 | + | Constitution.653 |
|---|
| 716 | + | (e) With the exception of application fees and annual licensing fees imposed by paragraph654 |
|---|
| 717 | + | (10) of subsection (c) of Code Section 50-27-130, this privilege tax is in lieu of all other655 |
|---|
| 718 | + | state and local sales and income taxes and fees imposed on the operation of sports betting656 |
|---|
| 719 | + | or on the proceeds from the operation of sports betting in this state. This subsection shall657 |
|---|
| 720 | + | not exempt goods and services purchased by licensees in the ordinary course of business658 |
|---|
| 721 | + | from the imposition of state or local sales taxes that would otherwise apply, nor shall it659 |
|---|
| 722 | + | exempt licensees from the payment of taxes on real property owned by the licensee.660 |
|---|
| 723 | + | 50-27-151.661 |
|---|
| 724 | + | S. B. 386 |
|---|
| 725 | + | - 26 - 24 SB 386/CSFA |
|---|
| 726 | + | (a) Each Type 1 licensee or its sports betting services provider shall report to the662 |
|---|
| 727 | + | corporation, no later than January 15 of each year:663 |
|---|
| 728 | + | (1) The total amount of wagers received from bettors for the immediately preceding664 |
|---|
| 729 | + | calendar year;665 |
|---|
| 730 | + | (2) The adjusted gross income of the licensee for the immediately preceding calendar666 |
|---|
| 731 | + | year; and667 |
|---|
| 732 | + | (3) Any additional information required by rules and regulations of the corporation668 |
|---|
| 733 | + | deemed in the public interest or necessary to maintain the integrity of sports betting in669 |
|---|
| 734 | + | this state.670 |
|---|
| 735 | + | (b) A licensee shall promptly report to the corporation any information relating to:671 |
|---|
| 736 | + | (1) The name of any newly elected officer or director of the board of the licensed entity;672 |
|---|
| 737 | + | and673 |
|---|
| 738 | + | (2) The acquisition by any person of 10 percent or more of any class of corporate stock.674 |
|---|
| 739 | + | (c) With respect to information reported under subsection (b) of this Code section, a675 |
|---|
| 740 | + | licensee shall include with such report a statement of any conflict of interest that may exist676 |
|---|
| 741 | + | as a result of such election or acquisition.677 |
|---|
| 742 | + | (d) Upon receiving a report under this Code section or subsection (b) of Code678 |
|---|
| 743 | + | Section 50-27-191, the corporation may conduct a hearing in accordance with Code Section679 |
|---|
| 744 | + | 50-27-193 to determine whether the licensee remains in compliance with this article.680 |
|---|
| 745 | + | Part 4681 |
|---|
| 746 | + | 50-27-160.682 |
|---|
| 747 | + | (a) No person shall knowingly:683 |
|---|
| 748 | + | (1) Allow a minor to place a wager;684 |
|---|
| 749 | + | S. B. 386 |
|---|
| 750 | + | - 27 - 24 SB 386/CSFA |
|---|
| 751 | + | (2) Offer, accept, or extend credit to a bettor in the form of a marker; provided, however,685 |
|---|
| 752 | + | that promotions and promotional credits shall be permitted to be offered and extended to686 |
|---|
| 753 | + | bettors;687 |
|---|
| 754 | + | (3) Target minors in advertising or promotions for sports betting;688 |
|---|
| 755 | + | (4) Offer or accept a wager on any event, outcome, or occurrence other than a sporting689 |
|---|
| 756 | + | event, including, without limitation, a high school sporting event offered, sponsored, or690 |
|---|
| 757 | + | played in connection with a public or private institution that offers education at the691 |
|---|
| 758 | + | secondary level; or692 |
|---|
| 759 | + | (5) Accept a wager from an individual who is prohibited from placing a wager or bet693 |
|---|
| 760 | + | under Code Section 50-27-162, if such person has notice or actual knowledge that such694 |
|---|
| 761 | + | individual is prohibited from placing such a wager or bet.695 |
|---|
| 762 | + | (b) If the corporation determines that a person has violated any provision of this Code696 |
|---|
| 763 | + | section, the corporation may impose an administrative fine not to exceed $25,000.00 per697 |
|---|
| 764 | + | violation, or a total of $50,000.00 for violations arising out of the same transaction or698 |
|---|
| 765 | + | occurrence.699 |
|---|
| 766 | + | 50-27-161.700 |
|---|
| 767 | + | Except for those individuals ineligible to place bets under Code Section 50-27-162, an701 |
|---|
| 768 | + | individual who is 21 years of age or older and who is physically located in this state may702 |
|---|
| 769 | + | place a wager in the manner authorized under this article and the rules and regulations of703 |
|---|
| 770 | + | the corporation.704 |
|---|
| 771 | + | 50-27-162.705 |
|---|
| 772 | + | (a) The following individuals and categories of individuals shall not, directly or indirectly,706 |
|---|
| 773 | + | place a wager on sporting events or online sports betting platforms in this state:707 |
|---|
| 774 | + | (1) A member, officer, or employee of the corporation shall not place a wager on any708 |
|---|
| 775 | + | sporting event or platform;709 |
|---|
| 776 | + | S. B. 386 |
|---|
| 777 | + | - 28 - 24 SB 386/CSFA |
|---|
| 778 | + | (2) A corporation vendor employee shall not place a wager on a sporting event using710 |
|---|
| 779 | + | their employer's platform;711 |
|---|
| 780 | + | (3) A licensee or principal owner, partner, member of the board of directors, officer, or712 |
|---|
| 781 | + | supervisory employee of a licensee shall not place a wager on the licensee's platform;713 |
|---|
| 782 | + | (4) A person that provides goods or services to a licensee or any principal owner, partner,714 |
|---|
| 783 | + | member of the board of directors, officer, or supervisory employee of a person that715 |
|---|
| 784 | + | provides such goods or services shall not place a wager on the licensee's platform;716 |
|---|
| 785 | + | (5) A contractor, subcontractor, or consultant or any officer or employee of a contractor,717 |
|---|
| 786 | + | subcontractor, or consultant of a licensee shall not place a wager on the licensee's718 |
|---|
| 787 | + | platform, if such individual is directly involved in the licensee's operation of sports719 |
|---|
| 788 | + | betting or the processing of sports betting claims or payments through the licensee's720 |
|---|
| 789 | + | platform;721 |
|---|
| 790 | + | (6) An individual subject to a contract with the corporation shall not place a wager on722 |
|---|
| 791 | + | any platform, if the contract contains a provision prohibiting the individual from723 |
|---|
| 792 | + | participating in sports betting;724 |
|---|
| 793 | + | (7) An individual with access to material nonpublic information that is known725 |
|---|
| 794 | + | exclusively by an individual who is prohibited from placing a wager in this state under726 |
|---|
| 795 | + | this Code section shall not use any such information to place a wager on any sporting727 |
|---|
| 796 | + | event or platform;728 |
|---|
| 797 | + | (8) An amateur or Olympic athlete shall not place a wager on any sporting event in729 |
|---|
| 798 | + | which the athlete participates;730 |
|---|
| 799 | + | (9) A professional athlete shall not place a wager on any sporting event overseen by such731 |
|---|
| 800 | + | athlete's professional sports governing body or sporting events operator;732 |
|---|
| 801 | + | (10) A principal owner of a team, employee of a team, player, umpire, or sports union733 |
|---|
| 802 | + | personnel, or employee, referee, coach, or official of a professional sports governing body734 |
|---|
| 803 | + | or sporting events operator shall not place a wager on any sporting event, if the wager is735 |
|---|
| 804 | + | S. B. 386 |
|---|
| 805 | + | - 29 - 24 SB 386/CSFA |
|---|
| 806 | + | based on a sporting event overseen by the individual's professional sports governing body736 |
|---|
| 807 | + | or sporting events operator;737 |
|---|
| 808 | + | (11) An individual having the ability to directly affect the outcome of a sporting event738 |
|---|
| 809 | + | shall not place a wager on such sporting event;739 |
|---|
| 810 | + | (12) A trustee or regent of a governing board of a public or private institution of higher740 |
|---|
| 811 | + | education shall not place a wager on a collegiate sporting event;741 |
|---|
| 812 | + | (13) An individual prohibited by the rules or regulations of a professional sports742 |
|---|
| 813 | + | governing body or sporting events operator of a collegiate sports team, league, or743 |
|---|
| 814 | + | association from participating in sports betting shall not place a wager on any sporting744 |
|---|
| 815 | + | event to which such prohibition applies; and745 |
|---|
| 816 | + | (14) A student or an employee of a public or private institution of higher education who746 |
|---|
| 817 | + | has access to material nonpublic information concerning a student athlete or a sports team747 |
|---|
| 818 | + | shall be prohibited from placing a wager on a collegiate sporting event if such748 |
|---|
| 819 | + | information is relevant to the outcome of such event.749 |
|---|
| 820 | + | (b) The corporation may prescribe by rules and regulations additional individuals and750 |
|---|
| 821 | + | categories of individuals who are prohibited from placing a wager on specified sporting751 |
|---|
| 822 | + | events or online sports betting platforms in this state.752 |
|---|
| 823 | + | (c) The corporation shall prescribe by rules and regulations any measures necessary to753 |
|---|
| 824 | + | ensure individuals who are prohibited from placing a wager on specified sporting events754 |
|---|
| 825 | + | or online sports betting platforms in this state shall not be permitted to collude with755 |
|---|
| 826 | + | individuals not specifically enumerated in subsection (a) of this Code section to directly756 |
|---|
| 827 | + | affect the outcome of a sporting event.757 |
|---|
| 828 | + | (d) Any individual who places a wager in violation of this Code section:758 |
|---|
| 829 | + | (1) For a first offense, shall be indefinitely prohibited from placing a wager, be required759 |
|---|
| 830 | + | to forfeit the proceeds of any illegal wager, be guilty of a misdemeanor, and be fined not760 |
|---|
| 831 | + | less than $500.00 nor more than $1,000.00;761 |
|---|
| 832 | + | (2) For a second offense, shall be:762 |
|---|
| 833 | + | S. B. 386 |
|---|
| 834 | + | - 30 - 24 SB 386/CSFA |
|---|
| 835 | + | (A) Required to forfeit the proceeds of any illegal wager;763 |
|---|
| 836 | + | (B) Guilty of a misdemeanor; and764 |
|---|
| 837 | + | (C) Fined not less than $5,000.00 or imprisoned for not less than one month nor more765 |
|---|
| 838 | + | than five months, or both; and766 |
|---|
| 839 | + | (3) For a third or subsequent offense, shall be:767 |
|---|
| 840 | + | (A) Required to forfeit the proceeds of any illegal wager; 768 |
|---|
| 841 | + | (B) Guilty of a misdemeanor of a high and aggravated nature; and769 |
|---|
| 842 | + | (C) Fined not less than $7,500.00 or imprisoned for not less than three months, or both.770 |
|---|
| 843 | + | 50-27-163.771 |
|---|
| 844 | + | (a) The corporation shall by rules and regulations prohibit betting on injuries, penalties,772 |
|---|
| 845 | + | the outcome of player discipline rulings or replay reviews, and any other type or form of773 |
|---|
| 846 | + | betting under this article that is contrary to public policy or unfair to bettors.774 |
|---|
| 847 | + | (b)(1) A professional sports governing body or sporting events operator may submit to775 |
|---|
| 848 | + | the corporation in writing, by providing notice in such form and manner as the776 |
|---|
| 849 | + | corporation may require, a request to restrict, limit, or prohibit a certain type, form, or777 |
|---|
| 850 | + | category of sports betting with respect to its sporting events, if the professional sports778 |
|---|
| 851 | + | governing body or sporting events operator believes that such type, form, or category of779 |
|---|
| 852 | + | sports betting with respect to its sporting events may undermine the integrity or perceived780 |
|---|
| 853 | + | integrity of such professional sports governing body or sporting events operator or its781 |
|---|
| 854 | + | sporting events. The corporation shall request comments from sports betting licensees782 |
|---|
| 855 | + | and sports betting services provider licensees on all such requests it receives.783 |
|---|
| 856 | + | (2) After giving due consideration to all comments received, the corporation shall, upon784 |
|---|
| 857 | + | demonstration of good cause from the requestor that such type, form, or category of785 |
|---|
| 858 | + | sports betting is likely to undermine the integrity or perceived integrity of such786 |
|---|
| 859 | + | professional sports governing body or sporting events operator or its sporting events,787 |
|---|
| 860 | + | grant the request. The corporation shall respond to a request concerning a particular788 |
|---|
| 861 | + | S. B. 386 |
|---|
| 862 | + | - 31 - 24 SB 386/CSFA |
|---|
| 863 | + | sporting event before the start of the event, or if it is not feasible to respond before then,789 |
|---|
| 864 | + | no later than seven days after the request is made. If the corporation determines that the790 |
|---|
| 865 | + | requestor is more likely than not to prevail in successfully demonstrating good cause for791 |
|---|
| 866 | + | its request, the corporation may provisionally grant the request of the professional sports792 |
|---|
| 867 | + | governing body or sporting events operator until the corporation makes a final793 |
|---|
| 868 | + | determination as to whether the requestor has demonstrated good cause. Absent such a794 |
|---|
| 869 | + | provisional grant by the corporation, sports betting licensees may continue to offer sports795 |
|---|
| 870 | + | betting on sporting events that are the subject of such a request during the pendency of796 |
|---|
| 871 | + | the corporation's consideration of the applicable request.797 |
|---|
| 872 | + | Part 5798 |
|---|
| 873 | + | 50-27-170.799 |
|---|
| 874 | + | (a) Prior to placing a wager with a licensee via online sports betting, a bettor shall register800 |
|---|
| 875 | + | and establish a player account with the licensee remotely during which the bettor shall801 |
|---|
| 876 | + | attest that he or she meets the requirements to place a wager with a licensee in this state. 802 |
|---|
| 877 | + | Prior to verification of a bettor's identity in accordance with this Code section, a licensee803 |
|---|
| 878 | + | shall not allow the bettor to place a wager, make a deposit, or process a withdrawal via804 |
|---|
| 879 | + | online sports betting. A licensee shall implement commercially and technologically805 |
|---|
| 880 | + | reasonable procedures to prevent access to sports betting by minors on its online sports806 |
|---|
| 881 | + | betting platforms. A licensee may use information obtained from third parties to verify that807 |
|---|
| 882 | + | an individual is authorized to open an account, place wagers, and make deposits and808 |
|---|
| 883 | + | withdrawals.809 |
|---|
| 884 | + | (b) Each licensee shall adopt a registration policy to ensure that all bettors utilizing online810 |
|---|
| 885 | + | sports betting are authorized to place a wager with a licensee within this state. Such policy811 |
|---|
| 886 | + | shall include, without limitation, commercially reasonable mechanisms to:812 |
|---|
| 887 | + | (1) Verify the identity and age of the registrant;813 |
|---|
| 888 | + | S. B. 386 |
|---|
| 889 | + | - 32 - 24 SB 386/CSFA |
|---|
| 890 | + | (2) Verify that the registrant is not knowingly prohibited from placing a wager under814 |
|---|
| 891 | + | Code Section 50-27-162; and815 |
|---|
| 892 | + | (3) Obtain the following information from the registrant:816 |
|---|
| 893 | + | (A) Legal name;817 |
|---|
| 894 | + | (B) Date of birth;818 |
|---|
| 895 | + | (C) Physical address other than a post office box;819 |
|---|
| 896 | + | (D) Phone number;820 |
|---|
| 897 | + | (E) A unique username; and821 |
|---|
| 898 | + | (F) An active email account.822 |
|---|
| 899 | + | (c) Each licensee may in its discretion require a bettor to provide the licensee with a signed823 |
|---|
| 900 | + | and notarized document attesting that the bettor is qualified to engage in sports betting824 |
|---|
| 901 | + | under this article as part of the registration policy of the licensee.825 |
|---|
| 902 | + | (d) A bettor shall not register more than one account with a licensee, and each licensee826 |
|---|
| 903 | + | shall use commercially and technologically reasonable means to ensure that each bettor is827 |
|---|
| 904 | + | limited to one account.828 |
|---|
| 905 | + | (e) Each licensee, in addition to complying with state and federal law pertaining to the829 |
|---|
| 906 | + | protection of the private, personal information of registered bettors, shall use all other830 |
|---|
| 907 | + | commercially and technologically reasonable means to protect such information consistent831 |
|---|
| 908 | + | with industry standards.832 |
|---|
| 909 | + | (f) A bettor may fund an account through:833 |
|---|
| 910 | + | (1) Electronic bank transfer of funds, including such transfers through third parties;834 |
|---|
| 911 | + | (2) Debit cards;835 |
|---|
| 912 | + | (3) Online and mobile payment systems that support online money transfers; and836 |
|---|
| 913 | + | (4) Any other method approved by rules and regulations of the corporation.837 |
|---|
| 914 | + | (g)(1) Licensees shall not allow bets to be placed until first verifying the identity of the838 |
|---|
| 915 | + | bettor pursuant to this Code section and by rules promulgated by the corporation. 839 |
|---|
| 916 | + | Further, and pursuant to rules promulgated by the corporation, licensees shall establish840 |
|---|
| 917 | + | S. B. 386 |
|---|
| 918 | + | - 33 - 24 SB 386/CSFA |
|---|
| 919 | + | safeguards, including, but not limited to, access notifications and similar security841 |
|---|
| 920 | + | safeguards, to protect each bettor's account.842 |
|---|
| 921 | + | (2) If a licensee determines that the information provided by a bettor to make a deposit843 |
|---|
| 922 | + | or process a withdrawal is inaccurate or incapable of verification or violates the policies844 |
|---|
| 923 | + | and procedures of the licensee, the licensee shall, within ten days, require the submission845 |
|---|
| 924 | + | of additional information that can be used to verify the identity of such bettor.846 |
|---|
| 925 | + | (3) If such information is not provided or does not result in verification of the bettor's847 |
|---|
| 926 | + | identity, the licensee shall:848 |
|---|
| 927 | + | (A) Immediately suspend the bettor's account and shall not allow the bettor to place849 |
|---|
| 928 | + | wagers;850 |
|---|
| 929 | + | (B) Retain any winnings attributable to the bettor; and851 |
|---|
| 930 | + | (C) Refund the affected balance of deposits made to the account to the source of such852 |
|---|
| 931 | + | deposit or by issuance of a check.853 |
|---|
| 932 | + | (h) A licensee shall utilize geofencing technology to ensure that online sports betting is854 |
|---|
| 933 | + | available only to bettors who are physically located in this state. Servers, including the use855 |
|---|
| 934 | + | of backup servers, may be located outside of this state, consistent with federal law. To the856 |
|---|
| 935 | + | extent required by federal law, a licensee shall maintain in this state the servers it uses to857 |
|---|
| 936 | + | accept wagers on a sporting event placed by bettors located in this state.858 |
|---|
| 937 | + | (i) Each licensee shall clearly and conspicuously display on its website a statement859 |
|---|
| 938 | + | indicating that it is illegal for a person under 21 years of age to engage in sports betting in860 |
|---|
| 939 | + | this state.861 |
|---|
| 940 | + | (j) The corporation shall promulgate rules and regulations for purposes of regulating sports862 |
|---|
| 941 | + | betting via online sports betting.863 |
|---|
| 942 | + | 50-27-171.864 |
|---|
| 943 | + | (a) Licensees shall allow bettors to limit their betting activity with the licensee by, at a865 |
|---|
| 944 | + | minimum, giving bettors the opportunity to place limits on the amounts deposited, the866 |
|---|
| 945 | + | S. B. 386 |
|---|
| 946 | + | - 34 - 24 SB 386/CSFA |
|---|
| 947 | + | amounts wagered, and the amount of time spent wagering. Licensees shall take reasonable867 |
|---|
| 948 | + | steps to prevent bettors from overriding their self-imposed responsible gambling limits.868 |
|---|
| 949 | + | (b) The corporation shall promulgate rules and regulations that require a licensee to869 |
|---|
| 950 | + | implement responsible sports betting programs that include comprehensive training on870 |
|---|
| 951 | + | responding to circumstances in which individuals present signs of problem gambling or a871 |
|---|
| 952 | + | betting or gambling disorder.872 |
|---|