| 38 | | - | [ amusements and sports - legislative referendum - |
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| 39 | | - | Oklahoma Constitution - state-tribal gaming - |
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| 40 | | - | exception - Gaming Compact Supplement - sports |
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| 41 | | - | betting - fee - tribal administration - games - |
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| 42 | | - | supplements - funds - codification - ballot title - |
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| 43 | | - | filing ] |
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| 46 | + | |
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| 47 | + | COMMITTEE SUBSTITUTE |
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| 48 | + | |
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| 49 | + | An Act relating to amusements and sports; ordering a |
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| 50 | + | legislative referendum pursuant to the Oklahoma |
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| 51 | + | Constitution; amending 3A O.S. 2021, Sections 262 and |
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| 52 | + | 280, which relate to state -tribal gaming; providing |
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| 53 | + | exception; updating references; offering Gaming |
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| 54 | + | Compact Supplement related to sports betting; |
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| 55 | + | defining term; authorizing fee related to tribal |
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| 56 | + | administration of the games; prescribing content of |
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| 57 | + | Gaming Compact Supplement; prescribing procedures for |
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| 58 | + | electing acceptance of supplements; providing for |
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| 59 | + | certain construction of supplements; allowing |
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| 60 | + | retention of funds by tribes in certain amounts; |
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| 61 | + | limiting scope of Gaming Compact Supplement; |
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| 62 | + | declaring certain conduct and participation lawful; |
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| 63 | + | providing for codification; providing ballot title; |
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| 64 | + | and directing filing. |
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| 84 | 106 | | SECTION 2. AMENDATORY 3A O.S. 2021, Section 262, is |
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| 85 | 107 | | amended to read as follows: |
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| 86 | 108 | | Section 262. A. If at least four Indian tri bes enter into the |
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| 87 | 109 | | model tribal-state compact set forth in Section 281 of this title, |
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| 88 | 110 | | and such compacts are approved by the Secretary of the Interior and |
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| 89 | 111 | | notice of such approval is published in the Federal Register, the |
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| 90 | 112 | | Oklahoma Horse Racing Commission ("C ommission") shall license |
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| 91 | 113 | | organization licensees which are licensed pursuant to Section 205.2 |
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| 92 | 114 | | of this title to conduct authorized gaming as that term is defined |
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| 93 | 115 | | by this act pursuant to this act utilizing gaming machines or |
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| 94 | 116 | | devices authorized by this act su bject to the limitations of |
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| 95 | 117 | | subsection C of this section. No fair association or organization |
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| 96 | 118 | | licensed pursuant to Section 208.2 of this title or a city, town or |
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| 97 | 119 | | municipality incorporated or otherwise, or an instrumentality |
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| 98 | 120 | | thereof, may conduct authorized gaming as that term is defined by |
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| 99 | 121 | | this act. |
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| 100 | 122 | | Notwithstanding the provisions of Sections 941 through 988 of |
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| 101 | 123 | | Title 21 of the Oklahoma Statutes, the conducting of and |
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| 133 | 156 | | machines or devices which are capable of being used to conduct the |
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| 134 | 157 | | following types of gaming: |
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| 135 | 158 | | 1. Gaming authorized by the State -Tribal Gaming Act; or |
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| 136 | 159 | | 2. Other gaming which may be lawfully conducted by an Indian |
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| 137 | 160 | | tribe in this state. |
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| 138 | 161 | | B. Except for Christmas Day, a uthorized gaming may only be |
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| 139 | 162 | | conducted by an organization licensee on days when the licensee is |
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| 140 | 163 | | either conducting live racing or is accepting wagers on simulcast |
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| 141 | 164 | | races at the licensee's racing facilities. Authorized gaming may |
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| 142 | 165 | | only be conducted by organiz ation licensees at enclosure locations |
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| 143 | 166 | | where live racing is conducted. Under no circumstances shall |
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| 144 | 167 | | authorized gaming be conducted by an organization licensee at any |
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| 145 | 168 | | facility outside the organization licensee' s racing enclosure. No |
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| 146 | 169 | | person who would not b e eligible to be a patron of a pari -mutuel |
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| 147 | 170 | | system of wagering pursuant to the provisions of subsection B of |
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| 148 | 171 | | Section 208.4 of this title shall be admitted into any area of a |
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| 149 | 172 | | facility when authorized games are played nor be permitted to |
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| 150 | 173 | | operate, or obtain a prize from, or in connection with, the |
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| 151 | 174 | | operation of any authorized game, directly or indirectly. |
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| 183 | 207 | | race meetings with pari -mutuel wagering, as authorized by the |
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| 184 | 208 | | Commission pursuant to the provisions of this title, occurred in |
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| 185 | 209 | | calendar year 2001, as follows: |
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| 186 | 210 | | 1. An organization licensee operating a racetrack location at |
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| 187 | 211 | | which an organization licensee is licensed to conduct a race meeting |
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| 188 | 212 | | pursuant to the provisions of Section 205.2 of this ti tle located in |
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| 189 | 213 | | a county with a population exceeding six hundred thousand (600,000) |
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| 190 | 214 | | persons, according to the most recent Federal Decennial Census, |
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| 191 | 215 | | shall be licensed to operate not more than six hundred fifty (650) |
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| 192 | 216 | | player terminals in any year. Beginning w ith the third year after |
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| 193 | 217 | | an organization licensee is licensed pursuant to this paragraph to |
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| 194 | 218 | | operate such player terminals, such licensee may be licensed to |
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| 195 | 219 | | operate an additional fifty (50) player terminals. Be ginning with |
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| 196 | 220 | | the fifth year after an organizat ion licensee is licensed pursuant |
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| 197 | 221 | | to this paragraph to operate such player terminals, such licensee |
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| 198 | 222 | | may be licensed to operate a further additional fifty (50) player |
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| 199 | 223 | | terminals; and |
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| 200 | 224 | | 2. Two organization licensees operating racetrack locations at |
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| 201 | 225 | | which the organization licensees are licensed to conduct race |
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| 233 | 258 | | Subject to the limitations on the number of player terminals |
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| 234 | 259 | | permitted to each organization licensee, an organization licensee |
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| 235 | 260 | | may utilize electron ic amusement games as defined in this act, |
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| 236 | 261 | | electronic bonanza-style bingo games as defined in this act and |
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| 237 | 262 | | electronic instant bingo games as defined in this act, and any type |
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| 238 | 263 | | of gaming machine or device that is specifically allowed by law and |
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| 239 | 264 | | that an Indian tribe in this state is authorized to utilize pursuant |
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| 240 | 265 | | to a compact entered into between the state and the tribe in |
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| 241 | 266 | | accordance with the provisions of the Indian Gaming Regulatory Act |
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| 242 | 267 | | and any other machine or device that an Indian tribe in this state |
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| 243 | 268 | | is lawfully permitted to operate pursuant to the Indian Gaming |
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| 244 | 269 | | Regulatory Act, referred to collectively as "authorized games". An |
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| 245 | 270 | | organization licensee's utilization of such machines or devices |
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| 246 | 271 | | shall be subject to the regulatory control and supervision of the |
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| 247 | 272 | | Commission; provided, the Commission shall have no role in oversight |
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| 248 | 273 | | and regulation of gaming conducted by a tribe subject to a compact. |
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| 249 | 274 | | The Commission shall promulgate rules to regulate the operation and |
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| 250 | 275 | | use of authorized gaming by organization licensees . In promulgating |
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| 251 | 276 | | such rules, the Commission shall consider the provisions of any |
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| 283 | 309 | | any given time; provided, however, that nothing in this act |
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| 284 | 310 | | prohibits the linking of player te rminals for progressive jackpots, |
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| 285 | 311 | | so long as the limitations on the number of permitted player |
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| 286 | 312 | | terminals at each organization licensee are not exceeded. Each |
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| 287 | 313 | | organization licensee shall keep a record of, and s hall report at |
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| 288 | 314 | | least quarterly to the Oklahoma Horse Racing Commission, the number |
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| 289 | 315 | | of games authorized by this section utilized in the organization |
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| 290 | 316 | | licensee's facility, by the name or type of each and its identifying |
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| 291 | 317 | | number. |
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| 292 | 318 | | D. No zoning or other local ordinance may be adopted or amended |
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| 293 | 319 | | by a political subdivision where an organization licensee conducts |
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| 294 | 320 | | live horse racing with the intent to restrict or prohibit an |
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| 295 | 321 | | organization licensee's right to conduct authorized gaming at such |
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| 296 | 322 | | location. |
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| 297 | 323 | | E. For purposes of this act, "adjusted gross revenues" means |
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| 298 | 324 | | the total receipts received by an organization licensee from the |
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| 299 | 325 | | play of all authorized gaming minus all monetary payouts. |
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| 300 | 326 | | F. The Oklahoma Horse Racing Commission shall promulgate rules |
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| 301 | 327 | | to regulate, implement and enforce the provisions of this act with |
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| 332 | 359 | | G. If an organizatio n licensee operates or attempts to operate |
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| 333 | 360 | | more player terminals which offer authorized games than it is |
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| 334 | 361 | | authorized to offer to the public by this act or the terms of its |
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| 335 | 362 | | license, upon written notice from the Commission, such activity |
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| 336 | 363 | | shall cease forthwith . Such activity shall constitute a basis upon |
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| 337 | 364 | | which the Commission may suspend or revoke the licensee's license. |
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| 338 | 365 | | The Commission shall promulgate any rules and regulations necessary |
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| 339 | 366 | | to enforce the provisions o f this subsection. |
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| 340 | 367 | | H. This act is game -specific and shall not be construed to |
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| 341 | 368 | | allow the operation of any other form of gaming unless specifically |
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| 342 | 369 | | allowed by this act. This act shall not permit the operation of |
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| 343 | 370 | | slot machines, house -banked card games, house -banked table games |
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| 344 | 371 | | involving dice or roulett e wheels, or games where winners are |
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| 345 | 372 | | determined by wagering on the outcome of a sports contest ; provided, |
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| 346 | 373 | | however, that wagering on the outcome of sports contests may be |
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| 347 | 374 | | conducted in accordance with Section 4 o f this act. |
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| 348 | 375 | | SECTION 3. AMENDATORY 3A O.S. 2021, Section 280, is |
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| 349 | 376 | | amended to read as follows: |
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| 350 | 377 | | Section 280. The State of Oklahoma through the concurrence of |
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| 351 | 378 | | the Governor after considering the executive prerogatives of that |
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| 382 | 410 | | the following offer of a model tribal gaming compact Model Tribal |
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| 383 | 411 | | Gaming Compact regarding gaming to all federally recognized Indian |
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| 384 | 412 | | tribes as identified in the Federal Register within this state that |
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| 385 | 413 | | own or are the beneficial owners of Indian lands as defined by the |
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| 386 | 414 | | Indian Gaming Regulatory Act, 25 U.S.C., Section 2703(4), and over |
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| 387 | 415 | | which the tribe has jurisdiction as recognized by the Secretary of |
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| 388 | 416 | | the Interior and is a part of the tribe's "Indian reservation" as |
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| 389 | 417 | | defined in 25 C.F.R., Part 151.2 or has be en acquired pursuant to 25 |
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| 390 | 418 | | C.F.R., Part 151, which, if accepted, shall constitute a gaming |
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| 391 | 419 | | compact between this state and the accepting tribe for purposes of |
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| 392 | 420 | | the Indian Gaming Regulatory Act. Acceptance of the offer contained |
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| 393 | 421 | | in this section shall be through the signature of the chief |
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| 394 | 422 | | executive officer of the tribal government whose authority to enter |
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| 395 | 423 | | into the compact Compact shall be set forth in an accompanying law |
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| 396 | 424 | | or ordinance or resolution by the governing body of the tribe, a |
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| 397 | 425 | | copy of which shall be pr ovided by the tribe to the Governor. No |
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| 398 | 426 | | further action by the Governor or the state is required before the |
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| 399 | 427 | | compact Compact can take effect. A tribe accepting this Model |
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| 400 | 428 | | Tribal Gaming Compact is responsible for submitting a copy of the |
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| 401 | 429 | | Compact executed by the tribe to the Secretary of the Interior fo r |
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| 432 | 461 | | Section 281 of this title. As a precondition to execution of the |
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| 433 | 462 | | Model Tribal Gaming Compact by any tribe, the tribe must have paid |
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| 434 | 463 | | or entered into a written agreement for payment of any fines |
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| 435 | 464 | | assessed prior to the effective date of the State -Tribal Gaming Act |
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| 436 | 465 | | by the federal government with respect to the tribe's gaming |
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| 437 | 466 | | activities pursuant to the Indian Gaming Regulatory Act. |
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| 438 | 467 | | Notwithstanding the provisions of Sections 941 through 988 of |
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| 439 | 468 | | Title 21 of the Oklahoma Statutes, the conducting of and the |
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| 440 | 469 | | participation in any game authorized by the model compact Model |
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| 441 | 470 | | Tribal Gaming Compact set forth in Section 281 of this title are |
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| 442 | 471 | | lawful when played pursuant to a compact which has become effective. |
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| 443 | 472 | | 1. Prior to July 1, 2008, of all fees received by the stat e |
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| 444 | 473 | | pursuant to subsection A of Part 11 of the Model Tribal Gaming |
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| 445 | 474 | | Compact set forth in Section 281 of this title: |
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| 446 | 475 | | a. twelve percent (12%) shall be deposited in the |
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| 447 | 476 | | Oklahoma Higher Learning Access Trust Fund, and |
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| 448 | 477 | | b. eighty-eight percent (88%) of such fees sh all be |
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| 449 | 478 | | deposited in the Education Reform Revolving Fund. |
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| 450 | 479 | | 2. On or after July 1, 2008, of all fees received by the state |
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| 451 | 480 | | pursuant to subsection A of Part 11 of the Model Tribal Gaming |
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| 481 | 511 | | a. twelve percent (12%) shall be deposited in the General |
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| 482 | 512 | | Revenue Fund, and |
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| 483 | 513 | | b. eighty-eight percent (88%) of such fees shall be |
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| 484 | 514 | | deposited in the Education Reform Revolving F und. |
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| 485 | 515 | | Provided, the first Twenty Thousand Eight Hundred Thirty -three |
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| 486 | 516 | | Dollars and thirty-three cents ($20,833.33) of all fees received |
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| 487 | 517 | | each month by the state pursuant to subsection A of Part 11 of the |
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| 488 | 518 | | Model Tribal Gaming Compact set forth in Section 281 of this title |
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| 489 | 519 | | and Gaming Compact Supplements offered pursuant to Section 2 280.1 |
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| 490 | 520 | | of this title and Section 4 of this act shall be transferred to the |
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| 491 | 521 | | Department of Mental Health and Substance Abuse Services for the |
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| 492 | 522 | | treatment of compulsive gambling disorder and educational programs |
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| 493 | 523 | | related to such disorder. |
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| 494 | 524 | | SECTION 4. NEW LAW A new section of law to be codified |
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| 495 | 525 | | in the Oklahoma Statutes as Section 280.2 of Title 3A, unless there |
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| 496 | 526 | | is created a duplication in numbering, reads as follows: |
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| 497 | 527 | | A. Provided that federal laws permit and pursuant to the offer |
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| 498 | 528 | | of the Model Tribal Gaming Compact made in Section 280 of Title 3A |
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| 499 | 529 | | of the Oklahoma Statutes and the definition of "covered games" in |
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| 500 | 530 | | the Model Tribal Gaming Compact codified in Section 281 of Titl e 3A |
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| 501 | 531 | | of the Oklahoma Statutes, which said codified compact offer provides |
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| 531 | 562 | | supplement to an existing compact, the state hereby approves, |
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| 532 | 563 | | subject to this section, an additional game offering as follows: |
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| 533 | 564 | | "Sports betting" means any wagering on the outcome of sportin g |
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| 534 | 565 | | events or other events, other than horse or other animal races. |
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| 535 | 566 | | B. Should a tribe that has compacted with the state in |
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| 536 | 567 | | accordance with Sections 280 and 281 of Title 3A of the Oklahoma |
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| 537 | 568 | | Statutes elect to accept this offer of an additional covered game |
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| 538 | 569 | | and, accordingly, to operate sports betting under the terms of its |
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| 539 | 570 | | existing gaming compact with the state, said tribe shall execute a |
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| 540 | 571 | | supplement to said compact, to provide as follows: |
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| 541 | 572 | | MODEL TRIBAL GAMING COMPACT SUPPLEMENT |
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| 542 | 573 | | Between the [Name of Tribe] |
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| 543 | 574 | | and the STATE OF OKLAHOMA |
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| 544 | 575 | | To be governed in accord wi th the [Name of Tribe]'s State -Tribal |
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| 545 | 576 | | Gaming Compact ("Compact"), approved by the United States Department |
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| 546 | 577 | | of the Interior on [Date], the [Name of Tribe] ("Tribe") accepts the |
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| 547 | 578 | | state's offer of additional covered game codified in Section 280.2 |
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| 548 | 579 | | of Title 3A of the Oklahoma Statutes, which offer and this |
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| 549 | 580 | | acceptance are subject to the following terms: |
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| 550 | 581 | | Part 1. TITLE |
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| 581 | 613 | | A. The Tribe hereby memorializes its election to accept the |
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| 582 | 614 | | state's offer of an additional covered game, which offer is codified |
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| 583 | 615 | | in Section 280.2 of Title 3A of the Oklahoma Statutes. The Tribe |
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| 584 | 616 | | further certifies and agrees it shall no t offer such additional |
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| 585 | 617 | | covered game unless and until doing so would be legal under federal |
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| 586 | 618 | | law. |
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| 587 | 619 | | B. The Tribe agrees, subject to the enforcement and exclusivity |
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| 588 | 620 | | provisions of its Compact, to pay to the state a fee derived from |
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| 589 | 621 | | sports betting revenues calc ulated as set forth in this subsection. |
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| 590 | 622 | | Such fee shall be paid no later than the twentieth day of the month |
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| 591 | 623 | | for revenues received by the Tribe in the preceding month. The fee |
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| 592 | | - | shall be ten percent (10%) of monthly adjusted transaction total |
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| 593 | | - | from sports betting. For purposes of this Supplement, "adjusted |
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| 594 | | - | transaction total" means the gross sports betting transaction total |
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| 595 | | - | less (1) winnings returned to patrons on associ ated wagers, (2) |
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| 596 | | - | voided wagers, (3) free play or other promotional credits, (4) |
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| 597 | | - | generally accepted associated operating costs, and (5) any |
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| 598 | | - | associated federal excise taxes. |
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| 624 | + | shall be ten percent (10%) of monthly adjusted gross revenue from |
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| 625 | + | sports betting. |
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| 632 | 660 | | paragraph 2 of subsection A of Part 11 of the St ate-Tribal Gaming |
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| 633 | 661 | | Compact between the electing Tribe and the State. |
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| 634 | 662 | | C. The Tribe's operation of sports betting pursuant to this |
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| 635 | 663 | | Gaming Compact Supplement shall, for all purposes, including |
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| 636 | 664 | | enforcement and excl usivity, be treated as subject to and lawfully |
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| 637 | 665 | | conducted under the terms and provisions of the Compact. |
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| 638 | 666 | | Part 3. AUTHORITY TO EXECUTE |
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| 639 | 667 | | This Gaming Compact Supplement, to the extent it conforms with |
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| 640 | 668 | | Section 280.2 of Title 3A of the Oklahoma Statutes, is deemed |
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| 641 | 669 | | approved by the State of Oklahoma. No furt her action of the State |
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| 642 | 670 | | or any state official is necessary for this Gaming Compact |
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| 643 | 671 | | Supplement to take effect upon approval by the Secretary of the |
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| 644 | 672 | | United States Department of the Interior and publication in the |
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| 645 | 673 | | Federal Register. The undersigned tribal off icial(s) represents |
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| 646 | 674 | | that he or she is duly authorized and has the authority to execute |
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| 647 | 675 | | this Gaming Compact Supplement on behalf of the Tribe for whom he or |
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| 648 | 676 | | she is signing. |
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| 649 | 677 | | APPROVED: |
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| 650 | 678 | | [Name of Tribe] |
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| 651 | 679 | | ________________________ Date: __________ |
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| 652 | 680 | | [Title] |
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| 653 | 681 | | C. A tribe electing to accept this additional game offering is |
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| 654 | 682 | | responsible for submitting a copy of the executed supplement to the |
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| 655 | 683 | | |
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| 657 | 686 | | 2 |
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| 658 | 687 | | 3 |
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| 659 | 688 | | 4 |
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| 678 | 707 | | 23 |
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| 679 | 708 | | 24 |
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| 680 | 709 | | |
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| 681 | 710 | | Secretary of the United States Department of the Interior for |
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| 682 | 711 | | approval and publicati on in the Federal Register. |
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| 683 | 712 | | D. Upon approval of a supplement by the Secretary of the United |
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| 684 | 713 | | States Department of the Interior, said supplement shall be |
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| 685 | 714 | | construed as an acceptance of this offer and a supplement to the |
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| 686 | 715 | | Tribe's existing State -Tribal Gaming Compact with the State. |
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| 687 | 716 | | Thereafter, sports bett ing shall be deemed a covered game pursuant |
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| 688 | 717 | | to said Compact. |
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| 689 | 718 | | E. The Tribe is entitled to keep an amount equal to state |
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| 690 | 719 | | payments from the operation of sports betting. For all purposes, |
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| 691 | 720 | | such payment shall be de emed an exclusivity and fee payment under |
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| 692 | 721 | | paragraph 2 of subsection A of Part 11 of the State -Tribal Gaming |
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| 693 | 722 | | Compact between the electing Tribe and the State. |
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| 694 | 723 | | F. The offer contained in this section shall not be construed |
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| 695 | 724 | | to permit the operation of any additional form of gaming by |
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| 696 | 725 | | organization licensee s or permit any additional electronic or |
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| 697 | 726 | | machine gaming within Oklahoma. |
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| 698 | 727 | | G. Notwithstanding the provisions of Sections 941 through 988 |
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| 699 | 728 | | of Title 21 of the Oklahoma Statutes, the conducting of and |
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| 700 | 729 | | participation in any game authorized pursuant to this sectio n are |
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| 701 | 730 | | lawful when played pursuant to a compact supplement which has become |
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| 702 | 731 | | effective in accordance with this section. |
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| 727 | 757 | | 24 |
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| 728 | 758 | | |
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| 729 | 759 | | SECTION 5. The Ballot Title for the proposed amendments as set |
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| 730 | 760 | | forth in SECTIONS 2 through 4 of this act shall be in the following |
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| 731 | 761 | | form: |
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| 732 | 762 | | BALLOT TITLE |
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| 733 | 763 | | Legislative Referendum No. ____ State Question No. ____ |
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| 734 | 764 | | THE GIST OF THE PROPOSITION IS AS FOLLOWS: |
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| 735 | 765 | | The measure authorizes the wagering on sports contests. The |
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| 736 | 766 | | measure raises certai n fee to be received by the state for the |
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| 737 | 767 | | treatment of compulsive gambling disorder to Twenty -five |
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| 738 | 768 | | Thousand Dollars ($25,000.00). The measure authorizes a tribe |
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| 739 | 769 | | that has compacted with the state to accept the offer of the |
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| 740 | 770 | | gaming compact supplement. The measure provides a form that the |
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| 741 | 771 | | supplement shall be submitted on to the United States Department |
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| 742 | 772 | | of the Interior. The measure directs that the tribe pay a fee |
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| 743 | 773 | | to the state from certain revenues. The fee will be ten percent |
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| 745 | 775 | | The measure allows the tribe to keep an amount equal to state |
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| 746 | 776 | | payments from the operation of sports betting. |
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| 747 | 777 | | SHALL THE PROPOSAL BE APPROVED? |
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| 748 | 778 | | FOR THE PROPOSAL — YES _____________ |
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| 749 | 779 | | AGAINST THE PROPOSAL — NO _____________ |
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| 750 | 780 | | SECTION 6. The Chief Clerk of the H ouse of Representatives, |
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| 751 | 781 | | immediately after the passage of this act, shall prepare and file |
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| 752 | 782 | | one copy thereof, including the Ballot Title set forth in SECTION 5 |
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| 753 | 783 | | |
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