§ 1367-A — Mobile sports wagering

New York § 1367-A

• Jurisdiction: New York
• Law PML: Racing, Pari-Mutuel Wagering and Breeding Law
• Title 8: Miscellaneous Provisions
• Art. 13: Destination Resort Gaming

Text

§ 1367-a. Mobile sports wagering. 1. (a) Except as provided in this\nsubdivision, the terms in this section shall have the same meanings as\nsuch terms are defined in subdivision one of section thirteen hundred\nsixty-seven of this title.\n (b) "Mobile sports wagering operator" for purposes of this section,\nmeans a mobile sports wagering operator as defined by section thirteen\nhundred sixty-seven of this title.\n 2. (a) No entity shall administer, manage, or otherwise make available\na mobile sports wagering platform to persons located in New York state\nunless licensed with the commission pursuant to this section.\n (b) Licenses issued by the commission shall remain in effect for up to\nten years. The commission shall establish a process for renewal.\n (c) The commission shall publish a list of all casinos and mobile\nsports wagering licensees licensed to offer mobile sports wagering in\nNew York state pursuant to this section on the commission's website for\npublic use.\n (d) All sports wagers through electronic communication placed in\naccordance with this section are considered placed or otherwise made\nwhen and where received by the mobile sports wagering licensee on such\nmobile sports wagering licensee's server or other equipment used to\naccept mobile sports wagering at a licensed gaming facility, regardless\nof the authorized sports bettor's physical location within the state at\nthe time the sports wager is placed; and provided further that the\nintermediate routing of electronic data in connection with mobile sports\nwagering shall not determine the location or locations in which a wager\nis initiated, received or otherwise made.\n 3. As a condition of licensure the commission shall require that each\nplatform provider authorized to conduct mobile sports wagering pay a\none-time fee of twenty-five million dollars. Such fee shall be paid\nwithin thirty days of gaming commission approval prior to license\nissuance and deposited into the state lottery fund for education aid.\n 4. (a) As a condition of licensure, each mobile sports wagering\noperator shall implement the following measures:\n (i) limit each authorized sports bettor to one active account on their\nplatform, and prevent anyone they know, or should have known to be a\nprohibited sports bettor from maintaining accounts or participating in\nany sports wagering offered by such mobile sports wagering operator;\n (ii) adopt appropriate safeguards to ensure, to a reasonable degree of\ncertainty, as defined by rules and regulations promulgated by the\ncommission, that authorized sports bettors are physically located within\nthe state when engaging in mobile sports wagering;\n (iii) prohibit minors from participating in any sports wagering\npursuant to rules and regulations promulgated by the commission;\n (iv) when referencing the chances or likelihood of winning in\nadvertisements or upon placement of a sports wager, make clear and\nconspicuous statements that are not inaccurate or misleading concerning\nthe chances of winning and the number of winners;\n (v) permit any authorized sports bettor to permanently close an\naccount registered to such bettor, on any and all platforms supported by\nsuch mobile sports wagering operator, at any time and for any reason;\n (vi) offer introductory procedures for authorized sports bettors, that\nshall be prominently displayed on the main page of such mobile sports\nwagering operator platform, that explain sports wagering;\n (vii) implement measures to protect the privacy and online security of\nauthorized sports bettors and their accounts;\n (viii) offer all authorized sports bettors access to his or her\naccount history and account details;\n (ix) ensure authorized sports bettors' funds are protected upon\ndeposit and segregated from the operating funds of such mobile sports\nwagering operator and otherwise protected from corporate insolvency,\nfinancial risk, or criminal or civil actions against such mobile sports\nwagering operator;\n (x) list on each website, in a prominent place, information concerning\nassistance for compulsive play in New York state, including a toll-free\nnumber directing callers to reputable resources containing further\ninformation, which shall be free of charge;\n (xi) ensure no sports wagering shall be based on a prohibited sports\nevent;\n (xii) permit account holders to establish self-exclusion gaming limits\non a daily, weekly, and monthly basis that enable the account holder to\nidentify the maximum amount of money an account holder may deposit\nduring such period of time;\n (xiii) when an account holder's lifetime deposits exceed two thousand\nfive hundred dollars, the mobile sports wagering operator shall prevent\nany wagering until the patron immediately acknowledges that the account\nholder has met the deposit threshold and may elect to establish\nresponsible gaming limits or close the account, and the account holder\nhas received disclosures from the mobile sports wagering operator\nconcerning problem gambling resources. Once a patron has reached their\nlifetime deposit, such patron shall annually make the acknowledgement\nrequired by this paragraph;\n (xiv) maintain a publicly accessible internet page dedicated to\nresponsible play, a link to which must appear on the mobile sports\nwagering operator's website and in any mobile application or electronic\nplatform on which a bettor may place wagers. The responsible play page\nshall include: a statement of the mobile sports wagering operator's\npolicy and commitment to responsible gaming; information regarding, or\nlinks to information regarding, the risks associated with gambling and\nthe potential signs of problem gaming; the availability of self-imposed\nresponsible gaming limits; a link to a problem gaming webpage maintained\nby the office of addiction services and supports; and such other\ninformation or statements as the commission may require by rule; and\n (xv) submit annually a problem gaming plan that was approved by the\ncommission in consultation with the office of addiction services and\nsupports that includes: the objectives of and timetables for\nimplementing the plan; identification of the persons responsible for\nimplementing and maintaining the plan; procedures for identifying users\nwith suspected or known problem gaming behavior; procedures for\nproviding information to users concerning problem gaming identification\nand resources; procedures to prevent gaming by minors and self-excluded\npersons; and such other problem gaming information as the commission may\nrequire by rule.\n (b) No entity shall directly or indirectly operate an unlicensed\nsports wagering platform in the state of New York, or advertise or\npromote such unlicensed platform to persons located in the state of New\nYork.\n (c) Mobile sports wagering licensees shall not offer any sports\nwagering based on any prohibited sports event.\n (d) Mobile sports wagering licensees shall not permit sports wagering\nby anyone they know, or should have known, to be a prohibited sports\nbettor.\n (e) Advertisements for contests and prizes offered by a mobile sports\nwagering operator shall not target prohibited sports bettors, minors, or\nself-excluded persons.\n (f) Mobile sports wagering operators shall develop and prominently\ndisplay procedures on the main page of such mobile sports wagering\noperator's platform for the filing of a complaint by an authorized\nsports bettor against such mobile sports wagering operator. An initial\nresponse shall be given by such mobile sports wagering operator to such\nbettor filing the complaint within forty-eight hours. A complete\nresponse shall be given by such mobile sports wagering operator to such\nbettor filing the complaint within ten business days. An authorized\nsports bettor may file a complaint alleging a violation of the\nprovisions of this article with the commission.\n (g) Mobile sports wagering licensees shall maintain records of all\naccounts belonging to authorized sports bettors and retain such records\nof all transactions in such accounts for the preceding five years;\nprovided however that such records belonging to an authorized sports\nbettor shall be readily accessible and downloadable, without cost, by\nsuch authorized sports bettor.\n (h) The server or other equipment which is used by a mobile sports\nwagering licensee to accept mobile sports wagering shall be physically\nlocated in the licensed gaming facility and be limited to sports\nwagering related activities in accordance with regulations promulgated\nby the commission.\n (i) All mobile sports wagering initiated in this state shall be deemed\nto take place at the licensed gaming facility where the server or other\nequipment used by a mobile sports wagering licensee to accept mobile\nsports wagering is located, regardless of the authorized sports bettor's\nphysical location within this state.\n (j) All mobile sports wagering shall be conducted in compliance with\nthis section and section thirteen hundred sixty-seven of this title.\n 5. (a) Subject to regulations promulgated by the commission, a mobile\nsports wagering operator may allow for authorized bettors to sign up to\ncreate and fund accounts on its mobile sports wagering platform.\n (b) Authorized sports bettors may deposit and withdraw funds to and\nfrom their account on a mobile sports wagering operator through\nelectronically recognized payment methods, including but not limited to\ncredit cards and debit cards, or via any other means approved by the\ncommission; provided however, that in the case of credit card payments,\neach authorized sports bettor's account per operator shall be limited to\na credit card spending amount of two thousand five hundred dollars per\nyear; and provided further, that this limitation shall not apply to\nother payment methods or to debit cards. No operator shall be authorized\nto provide a line of credit to any authorized sports bettor.\n 6. The commission, in conjunction with the office of addiction\nservices and supports, shall annually cause a report to be prepared and\ndistributed to the governor and the legislature on the impact of mobile\nsports wagering on problem gamblers in New York, including, to the\nextent practicable, an analysis of demographics which are\ndisproportionately impacted by the problem gambling. The costs\nassociated with the preparation and distribution of the report shall be\nborne by mobile sports wagering licensees and the commission shall be\nauthorized to assess a fee against mobile sports wagering licensees for\nthese purposes. The commission, or in the case that an independent\nintegrity monitor has been established, such independent integrity\nmonitor shall also report biannually to the governor and the legislature\non the effectiveness of the statutory and regulatory controls in place\nto ensure the integrity of mobile sports wagering operations.\n 7. A platform provider may be licensed by the commission only after\nhaving been selected for potential licensure by the commission following\na competitive bidding process in which the commission shall issue a\nrequest for applications no later than July first, two thousand\ntwenty-one; provided however, that the deadline for submission of\napplications shall be no later than thirty days after the date upon\nwhich the commission issues such request for applications.\n (a) The commission shall select platform providers based upon the\ncriteria set forth in this section no later than one hundred fifty days,\nto the extent practicable, after the final application is received. The\ncommission may disqualify applicants from licensure consideration if the\napplicant or the mobile sports wagering operator or operators included\nin their bid have not satisfied provision of required application\ninformation, fail to meet any platform provider and mobile sports\nwagering operator eligibility criteria established pursuant to the\nrequest for applications, or are deemed by the commission to have not\nsatisfied the criteria pursuant to subdivision five of this section.\n (a-1) The commission shall publish on its website the criteria that\nwill be used to score applications based upon the criteria set forth in\nparagraph (c) of this subdivision; provided however, that such scoring\nmethodology shall award additional points to an applicant that has\nentered into an agreement that includes revenue sharing related to such\nmobile sports wagering with compacted Native American tribe(s) or\nnation(s).\n (b) The commission shall determine the form of application for\nbidders, which shall require, at a minimum, the following information:\n (i) Different scenarios for the number of platform providers and\nnumber of mobile sports wagering operators licensed by the commission.\nFor each scenario, this shall include estimates of mobile sports\nwagering gross gaming revenue and the bases for such estimates, the\npercentage of gross revenue from mobile sports wagering the applicant\nwill pay to the state for the privilege of licensure if chosen, and the\npercentage of overall mobile sports wagering gross gaming revenue\nestimated to be generated;\n (ii) The number of mobile sports wagering operators the applicant will\nhost on its mobile sports wagering platform, if the applicant is\nlicensed as a platform provider;\n (iii) A description of how the applicant will use technology to ensure\nall bettors are physically within approved locations within the state,\nthat any wager is accepted through equipment physically located at a\nlicensed gaming facility and that necessary safeguards against abuses\nand addictions are in place;\n (iv) The applicant and any associated operators such applicant\nproposes in its application possess the qualifications, capabilities and\nexperience to provide a mobile sports wagering platform;\n (v) A list of all jurisdictions where the applicant and parent\ncompany, and mobile sports wagering operator or operators and parent\ncompany or companies have been licensed or otherwise authorized by\ncontract or otherwise to conduct sports wagering operations. This shall\ninclude the applicant and its mobile sports wagering operator or\noperators' experience in such other markets;\n (vi) Player acquisition model, advertising and affiliate programs and\nmarketing budget, including details on how the applicant and its mobile\nsports wagering operator or operators will convert customers from\nwagering through illegal channels to wagering legally in the state;\n (vii) Timeframe to implement mobile sports wagering from award of\nlicense;\n (viii) The applicant and mobile sports wagering operator or operators'\ncapacity to bring authorized sports bettors into their mobile sports\nwagering platform; and\n (ix) Integrity monitoring and reporting including any current\naffiliations related to integrity monitoring.\n (c) In determining whether an applicant shall be eligible for a\nplatform provider license, the commission shall evaluate how each\napplicant proposes to maximize sustainable, long-term revenue for the\nstate by evaluating the following factors:\n (i) A market analysis detailing the benefits of the applicant's bid as\nit relates to maximizing revenue to the state;\n (ii) Estimates of mobile sports wagering gross gaming revenue\ngenerated by the applicant under different scenarios;\n (iii) The percentage of mobile sports wagering gross gaming revenue to\nbe paid to the state under different scenarios;\n (iv) The potential market share of the mobile sports wagering operator\nor operators under different scenarios;\n (v) Advertising and promotional plans of the mobile sports wagering\noperator or operators;\n (vi) Past experience and expertise in the market of the applicant and\nany mobile sports wagering operator or operators which are part of such\napplicant's application;\n (vii) The applicant's capacity to rapidly and effectively bring\nauthorized sports bettors into its platform;\n (viii) A demonstration of how and to what degree the applicant fosters\nracial, ethnic, and gender diversity in its workforce;\n (ix) Timeframe to implement mobile sports wagering from award of\nlicense;\n (x) Any other factors that could impact the integrity, sustainability\nor safety of the mobile sports wagering system; and\n (xi) Any other factors that could impact revenue to the state.\n (d) The commission shall award a license to each of the two highest\nscoring platform providers that submit applications; provided however,\nthat such awards shall require that both winning platform providers pay\nthe same tax rate; and provided further, that the commission shall\nrequire that no less than four mobile sports wagering operators will be\noperating in the state. The commission may award additional licenses if\nit determines that such additional awards are in the best interests of\nthe state; provided however, that any additional platform providers\nawarded licenses must also agree to pay the same tax rate as those\nplatform providers that were initially awarded licenses by the\ncommission. The award of any such license shall require each applicant\nto remit the highest percentage of gross gaming revenue from mobile\nsports wagering contained in an applicant's bid selected by the\ncommission considered for licensure. A qualified applicant shall be\nafforded the ability to revise its bid in any such manner in order for\nsuch bid to meet the percentage of gross gaming revenue from mobile\nsports wagering as required by the commission for license award,\nprovided that the bid does not incorporate any additional operators not\nalready included in the bid; and provided however that it is not\ndetermined by the commission that the revised bid no longer meets all\nrequirements and criteria established pursuant to this section and the\nrequest for applications. Any applicant that does not revise its bid to\nmeet the percentage of gross gaming revenue from mobile sports wagering\nrequired by the commission for license award shall not be awarded a\nlicense.\n