By: Herrero H.B. No. 4040 A BILL TO BE ENTITLED AN ACT relating to the licensing and regulation of sports betting web sites, providing penalties; requiring a license; allowing a fee. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 2502, Occupations Code, is amended to read as follows: Sec. 2502.001. DEFINITIONS. In this chapter: (1) "License" means a license, certificate, registration, permit, or other authorization that: (A) is issued by a licensing authority; and (B) a person or entity must obtain to practice or engage in a particular business, occupation, or profession. (2) "Department" means the Texas Department of Licensing and Regulation. (3) "Sports betting website" means an internet website that allows a user to make through use of the website a bet on the outcome of a sporting event or participation in a competition based on the performance of the players in a sporting event or series of sporting events. Sec. 2502.002. OPERATING SPORTS BETTING WEBSITE; LICENSE REQUIRED. (a) A person or entity must obtain a license issued by the department annually, if the person or entity operates a sports betting website. (b) The department shall adopt rules for the licensing of sports betting websites including charging a license fee. 2502.003. OPERATING SPORTS BETTING WEBSITE WITHOUT A LICENSE; OFFENSE. (a) Unless licensed under Section 2502.002, a person or entity commits an offense under Section 47.02(a)(1), Penal Code. (b) An offense under Subsection (a) is a Class A misdemeanor. SECTION 2. This Act takes effect September 1, 2015.