HB2835--INTERACTIVEDIGITALGAMING
SPONSOR: Quade
Thisbilldefines"centralizedcomputersystem","devicehandler",
"devicemanufacturer", "deviceoperator","deviceretailer",
"fraternalorganization", "interactivedigitalgame","interactive
digitalgamecredit","interactivedigitalgameticket",
"interactivedigitalgamingadjustedgrossreceipts","mechanical
amusementdevice","salesagent","ticketredemptionterminal",
"truckstop",and"veterans'organization"aspertainingtothe
bill.
Undertheprovisionsofthisbill,theLotteryCommission
(Commission)willimplementamechanicalamusementdeviceprogram
utilizingalicensingprocessingstructurefortheconductingof
interactivedigitalgameswithintheState.
Thebilllistswhichindividualsmayobtainlicensingasadevice
manufacturer,distributor,oroperatorandrestrictsthe
implementation ofthemechanicalamusementdeviceprogramandthe
totalshareofoperationofmechanicalamusementdeviceswithinthe
State.
Thebillrequiresmechanicalamusementdevicestobeconnectedtoa
centralizedcomputersystemanddetailstheexpectationsfor
individualsconnectingdevicestothecomputersystem.Thisbill
furtherdetailslicenserequirements,restrictions,fees,andhow
longalicenseisvalidfordevicemanufacturers, distributors,
operators,retailers,andhandlers.
Thebillspecifiesthetestingstandardsthatmechanicalamusement
devicesmustmeetaswellasrequirementsregardingbuying,
selling,leasing,andplacementofneworrefurbisheddevices.
Gamewinningswillbepayedtowinnersasdetailedinthebill.
DeviceoperatorsmustpaytheCommission32%ofanyunclaimedcash
prizewithin180daysofissue.
Tocombatproblemgambling,thisbillspecifiesthatplayersmay
excludethemselvesfromplay.Operatorsarerequiredtoprovide
theCommissionwithalistoftheseplayerswithin30daysofthe
personrequestingtobeaddedtothelist.Thelistisconsidered
confidentialandnotavailabletothepublic.
Thebillspecifieswhatcertaindevicelicenseesmaydoinrelation
totheoperationofmechanicalamusementdevices. Devicescanonly
dispenseticketsforwinningplaysandmaynotdistributeanything
elseofvalue.Themaximumwagerplayedperinteractivedigital
gamecannotexceed$5andthemaximumprizepayoffforawinning maximumwagerforasinglegameplaycannotbemorethan$1100,or
themaximumamountallowablebyfederallawbeforetaxwithholding
isrequiredforasinglegamewinningplay.Thenumberoflicensed
devicesisrestricteddependingonthelocationofthemachinesand
thesemachinescannotbelocatedwithinonemileofacasino,
elementaryschool,orhighschool.Alicenseddeviceoperatoris
notallowedtoadvertiseoutsideoftheestablishment.
Thebillspecifiesthatnopersonunder21canplayinteractive
digitalgamesanddetailsrequirementsnecessarytoensurethat
prohibitedindividualsarenotabletoplaythesegames,including
thatthedevicesmustbeunderthesupervisionofapersonthatis
21yearsofageorolder,includevideosurveillance,andplacement
ofgamesinasecurelocation. TheCommissionmayfineviolators
oftheserequiredprohibitionsasspecifiedinthebill.
Thirty-threepercentofadjustedgrossreceiptsearnedfromgame
playwillbedepositedintotheStateLotteryFund.TheCommission
willtransferfundsreceivedfromtheCommissionDirectortothe
StateLotteryFundafteradministrative expensesarewithdrawnand
distributedasdetailedinthebill.Netproceedstransferredto
thestatelotteryfundwillbeappropriatedtoelementaryand
secondaryeducationalinstitutionswithanemphasisonfunding
student,teacher,andcommunityhealthandsafety.Device
operatorsretaintheremainderoftheadjustedgrossreceiptsfor
administrative expenseslistedinthebill.Aportionofthese
administrative costsgototheoperationofthecentralized
computersystem.Distributionoftheremainderoftheadjusted
grossreceiptsisdetailedinthebill.
ThisbillspecifiesthatrevenuesreceivedbytheCommissionfrom
reimbursements associatedwiththeadministration ofthesections
ofthebillwillbedistributedtotheGeneralRevenueFund.Upto
1%oftherevenuemustbecreditedtotheVeterans'Commission
CapitalImprovementTrustFund.Theremainderofthemoneyswill
bedividedequallybetweenpublicsafetyandadministrative
expensesasspecifiedinSections313.427to313.437RSMo.
Thebillallowscountiesandmunicipalities toadoptordinances
prohibitingmechanicalamusementdevices.
Thebillenactsnewprovisionsrelatingtosportswagering.
Thebillamendsthedefinitionof"gamesofskill"toinclude
sportswageringinSection313.800.
Thebilldefines"adjustedgrossreceipts"specificallyforthe
provisionsofthisbillrelatingtosportswageringoperations. Thebillalsoprovidesnewdefinitionsfor"esports","interactive
sportswageringplatform","prohibitedconduct",and"sports
wagering",amongotherdefinitionsspecifictotheprovisionsof
thisbill.
Thebilladdssportswageringtothevoluntaryexclusionprogram
administeredbytheMissouriGamingCommissionandspecifiesthat
anypersonwhohasself-excludedandhasbeenfoundtoplacea
sportswagermustforfeitanywinnings. Forfeitedwinningswillbe
creditedtotheCompulsiveGamblersFund.Theprogramspaidforby
thefundsintheCompulsiveGamblersFundareexpandedtoinclude
recoveryservices.
TheCommission,incooperationwiththeDepartmentofMental
Health,mustdevelopatriennialresearchreportasspecifiedin
thebill.Theinitialreport,associatedstudies,and
recommendations mustbesubmittedtotheGovernor,PresidentPro
TemoftheSenate,andtheSpeakeroftheHouseofRepresentatives
nolaterthanDecember31,2025,andthennolaterthanDecember31
ofeverythirdyearthereafter.
Thebillallowscertificateholderstooffersportswageringat
licensedfacilitiesthatareexcursiongamblingboatsandoverthe
Internetthroughinteractivesportswageringplatformstopersons
physicallylocatedwithinthestate.Exceptasprovidedunderthis
bill,nosportswageringcommercialactivitymayoccurwithinany
designatedsportsdistrictwithouttheapprovalofeach
professionalsportsteamentity,providednosuchapprovalis
necessaryforthesoleactivityofofferingsportswageringover
theInternetviaaninteractivesportswageringplatform.
TheMissouriGamingCommissionwillhavefulljurisdictionto
superviseallgamblingoperatorsandadoptrulestoimplementthe
provisionsofthisbill.Theserulesshallinclude,butnotbe
limitedto,standardsandproceduresgoverningtheconductof
sportswagering,standardsgoverninghowasportswageringoperator
offerswageringovertheInternet,themannerinwhichsports
wageringoperator'sbooksandrecordsaremaintainedandaudited,
andstandardsconcerningdetectionandpreventionofcompulsive
gambling.
Certificateholdersmustmakecommerciallyreasonableeffortsto:
(1)Designateareaswithinanexcursiongamblingboattobe
operatedbythesportswageringoperator;
(2)Ensurethesecurityandintegrityofsportswagers; (3)Ensurethatthesportswageringoperator'ssurveillancesystem
coversallareasofsportswageringactivity;
(4)AllowtheCommissiontobepresentthroughtheCommission's
gamingagentswhensportswageringisconducted;
(5)Ensurethatwagerresultsaredeterminedonlyfromdatathat
isprovidedbytheapplicablesportsgoverningbodyorthelicensed
sportswageringsuppliers;
(6)Ensurepersonsunder21yearsofagedonotmakesports
wagers;
(7)Establishhouserulesrelatingtopaidwinningwagersamounts;
and
(8)Establishindustry-standardproceduresregardingthevoiding
orcancelingofwagers.
AsportsgoverningbodymaynotifytheCommissionthatofficial
leaguedataforsettlingtier2betsisavailableforsports
wageringoperators. TheCommissionwillthennotifysports
wageringoperatorsoftheavailabilityofsuchleaguedata.Each
sportswageringoperatorcanonlyuseofficialleaguedatato
settletier2betsonathleticeventssanctionedbytheapplicable
sportsgoverningbody,withcertainexceptionsaslistedinthe
bill.TheCommissionshallpublishalistofofficialleaguedata
providersonitswebsite.
TheCommissionmayenterintomulti-jurisdictional agreementsto
facilitate,administer,andregulatemulti-jurisdictional sports
bettingtotheextentthatenteringintotheagreementis
consistentwithstateandfederallawsandisconductedonlyinthe
UnitedStates.
Alicensedapplicant,asdefinedinthebill,mayapplytothe
Commissionforeachlicensedfacilityinwhichthelicensed
applicantwishestoconductsportswagering. Theapplicantmust
payaninitialapplicationfeeofupto$100,000andsubmita
responsiblegamblingplanasrequiredinthebill.
TheCommissionwillensurethatnewsportswageringdevicesand
forms,variations,orcompositesofsportswageringaretested
priortoauthorizingasportswageringoperatortooffersuchnew
devices,forms,variations,orcomposites.
Alicensedexcursiongamblingboatmayoffersportswagering
throughuptothreeindividuallybrandedinteractivesports
wageringplatforms. Adesignatedsportsdistrictmobilelicensee, asdefinedinthebillandlicensedbytheCommissionasan
interactivesportswageringplatformoperator,mayoffersports
wageringwithinthestatethroughoneinteractivesportswagering
platform. Nosportswageringoperatormayoffersportswageringin
personorthroughanysportswageringkioskexceptwithina
licensedfacilitythatisanexcursiongamblingboat.
Sportswageringmaybeconductedwithnegotiablecurrency. The
sportswageringoperatorwilldetermineaminimumandmaximumwager
amount.Asportswageringdevice,point-of-contactdevice,or
kioskmustbeapprovedbytheCommissionandacquiredbyan
operatorfromalicensedsupplier.
Asportswageringoperatormaylayoffoneormoresportswagers
subjecttorulespromulgatedbytheCommission.
Asportswageringoperatormustincludecertaininformationand
toolstoassistplayersinmakingresponsibledecisions,including
toolstosettimeandmoneylimits,informationregarding
compulsivegamblingandwaystoseektreatment,andtheabilityto
excludecertainelectronicpaymentmethods.
Aninteractivesportswageringplatformoperatormustapplyfora
licensewiththeCommissiontooffersportswageringonbehalfofa
licensedfacility. Theprovidermustpayaninitialapplication
feeofupto$150,000andarenewalfeeannuallyofupto$325,000
andsubmitaresponsiblegamblingplanasrequiredinthebill.
AnyapplicationsubmittedtotheCommissionandalldocuments,
reports,anddatacontainingproprietaryinformation,trade
secrets,financialinformation,orpersonallyidentifiable
informationaboutanypersonwillbeconfidential.
TheCommissionmayissueasupplier'slicensetoasportswagering
suppliertoprovideitsservicestolicenseesunderafixed-feeor
revenue-sharingagreement. Attherequestofanapplicant,the
Commissionmayissueaprovisionallicenseifthatapplicanthas
submittedacompletedapplication,includingtherequiredfee.The
billspecifiesrequirementsthatanapplicantforasupplier's
licensemustmeetinordertoreceivealicense. Arenewalfee
mustbesubmittedbienniallyasdeterminedbytheCommission.
Asportswageringoperatormustverifythatthepersonplacinga
wagerisatleastthelegalminimumageforplacingthewager.
TheCommissionwilladoptrulestoensurethatadvertisements for
sportswageringdonotknowinglytargetminors,disclosethe
identityofthesportswageringoperator,arenotincludedonsites
orpagesdedicatedtocompulsivegambling,providegambling
addictionresourceinformation,andarenotfalseormisleading. TheCommissionmustestablishpenaltiesofbetween$10,000and
$100,000foranysportswageringoperatorwhoviolatesthe
restrictionsonadvertisingtovulnerablepersons.
TheCommissionwillestablishahotlineorothermethodof
communicationallowinganindividualtoconfidentially report
informationaboutprohibitedconducttotheCommission. The
Commissionwillinvestigatereasonableallegationsandrefer
credibleallegationstotheappropriatelawenforcemententity.
TheCommissionshalladoptrulesgoverninginvestigations of
prohibitedconductandreferrals.
TheCommissionshallconductbackgroundchecksonallindividuals
seekinglicensesundertheprovisionsofthisbill.This
backgroundcheckmustincludeasearchforcriminalhistoryandany
chargesorconvictionsinvolvingcorruptionormanipulationofa
sportingevent.
Asportswageringoperatorwillemploycommerciallyreasonable
methodstoprohibitunfairbettingpractices. Anypersonwhose
participationmayunderminetheintegrityofthebettingorsports
eventoranypersonprohibitedforgoodcauseasprovidedforin
thebillmaynotengageinsportswagering.
Nosportswageringoperatormayofferwagersonanyelementaryor
secondaryschoolathleticeventinwhichaschoolteamfromthis
stateisaparticipant,norshallanysportswagersbeplacedon
theindividualperformanceofanycollegiateathleteona
collegiateteamfromthisstate.
Anoperatormustadoptprocedurestoobtainpersonallyidentifiable
informationfromanyindividualplacingasinglewagerof$10,000
ormorewhilephysicallypresentatacasino.
TheCommissionandsportswageringoperatorsmustallcooperate
withinvestigations conductedbylawenforcementagenciesorsports
governingbodies.Incooperatingwithinvestigations, thesports
governingbodywillmaintaintheconfidentiality ofinformationand
files,complywithallapplicableprivacylaws,andusethe
informationsolelyinconnectionwiththesportsgoverningbody's
investigation.
AnoperatormustimmediatelyreporttotheCommissioninformation
relatingtocriminalordisciplinaryproceedingscommencedagainst
theoperatorinconnectionwiththesportswageringoperation,bets
madethatviolatelaw,abnormalorsuspiciouswageringactivityand
anyotherconductthatcorruptsthewageringoutcomeofasporting
event. AsportsgoverningbodymaysubmittotheCommissionarequestto
restrictorexcludeatypeorformofsportswageringonits
sportingeventsifthebodybelievessuchwageringwouldaffectthe
integrityofthesport.TheCommissionmaygranttherequestupon
ashowingofgoodcausebytheapplicablesportsgoverningbody.
Sportswageringoperatorsshallbenotifiedofanysuch
restrictionsorexclusions.
Asportswageringoperatorforwagersplacedinperson,anda
licensedfacility,interactivesportswageringplatformoperator,
orsportswagering,whereapplicable,forallinteractivewagers
placed,inexcessof$10,000,mustmaintainpersonallyidentifiable
informationandotherinformationrelatingtothewageras
describedinthebillforatleastthreeyears.Suchinformation
willbemadeavailableforinspectionupontherequestofthe
Commissionorasrequiredbycourtorder.
Awageringtaxof10%isimposedontheadjustedgrossreceipts,as
definedinthebill,receivedfromsportswageringconductedbya
sportswageringoperator. Acertificateholderorinteractive
sportswageringplatformoperatorwillremitthistaxmonthlyto
theDepartmentofRevenue. Inamonthwhentheadjustedgross
receiptsarenegative,thecertificateholderoroperatormaycarry
overthenegativeamountforaperiodof12months.Thepaymentof
thetaxunderthissectionwillbebyanelectronicfundstransfer
byanautomatedclearinghouse.
RevenuesreceivedfromthistaxwillbedepositedintotheState
Treasuryandcreditedtothe"GamingProceedsforEducationFund",
tobedistributedpursuanttoprovisionsofthebill.
Alicensedfacilitythatisanexcursiongamblingboatmustpayan
annuallicenserenewalfeenottoexceed$50,000. Additionally,a
certificateholderwillpayafeeof$10,000tocoverthecostofa
fullreinvestigation ofthecertificateholdereveryfouryears,to
bedepositedintotheGamingCommissionFund.Annually,atleast
$500,000willbeappropriatedfromtheGamingCommissionFundand
creditedtotheCompulsiveGamblersFund.Theappropriationamount
mustconsideranyrecommendations madeintheannualresearch
report.
Allsportswagersplacedundertheprovisionsofthisbillwillbe
deemedinitiated,received,andotherwisemadeonthepropertyof
anexcursiongamblingboatwithinthisstate.Totheextent
requiredbyfederallaw,allserversnecessaryforplacingor
resolvingofwagers,otherthanbackupservers,shallbephysically
locatedwithinanexcursiongamblingboat.Totheextentrequired
byfederallaw,theintermediateroutingofelectronicdatawill notdeterminethelocationorlocationsinwhichsuchwagersare
initiated,received,orotherwisemade.
ThisbillissimilartoHB2331(2024).