N.Y. Racing, Pari-Mutuel Wagering and Breeding Law § 1367: Sports wagering

§ 1367. Sports wagering. 1. As used in this section and in section

thirteen hundred sixty-seven-a of this title:

(a) "Platform provider" means an entity selected by the commission to

conduct mobile sports wagering pursuant to a competitive bidding

process;

(b) "Authorized sports bettor" means an individual who is physically

present in this state when placing a sports wager, who is not a

prohibited sports bettor, and who participates in sports wagering

offered by a casino or a mobile sports wagering licensee;

(c) "Casino" means a licensed gaming facility at which gambling is

conducted pursuant to the provisions of this article;

(d) "Commission" means the New York state gaming commission

established pursuant to section one hundred two of this chapter;

(e) "Collegiate sport or athletic event" means a sport or athletic

event offered or sponsored by, or played in connection with a public or

private institution that offers educational services beyond the

secondary level;

(f) "Covered persons" includes: athletes; players; umpires; referees;

officials; personnel associated with players, clubs, teams, leagues, and

athletic associations; medical professionals, including athletic

trainers, who provide services to athletes and players; and the family

members of these persons;

(g) "High school sport or athletic event" means a sport or athletic

event offered or sponsored by or played in connection with a public or

private institution that offers education services at the secondary

level;

(h) "In-play sports wager" means a sports wager placed on a sports

event after the sports event has begun and before it ends;

(i) "Layoff bet" means a sports wager placed by a casino sports pool

with another casino sports pool;

(j) "Minor" means any person under the age of twenty-one years;

(k) "Mobile sports wagering platform" or "platform" means the

combination of hardware, software, and data networks used to manage,

administer, or control sports wagering and any associated wagers

accessible by any electronic means including mobile applications and

internet websites accessed via a mobile device or computer;

(l) "Mobile sports wagering operator" means a mobile sports wagering

skin which has been licensed by the commission to operate a sports pool

through a mobile sports wagering platform;

(m) "Mobile sports wagering licensee" means a platform provider and a

mobile sports wagering operator licensed by the commission;

(n) "Operator" means a casino which has elected to operate a sports

pool;

(o) "Professional sport or athletic event" means an event at which two

or more persons participate in sports or athletic events and receive

compensation in excess of actual expenses for their participation in

such event;

(p) "Conduct potentially warranting further investigation" means any

statement, action, or other communication intended to unlawfully

influence, manipulate, or control a wagering outcome of a sporting

contest or performance in a sporting contest in exchange for a benefit

or to avoid financial or physical harm. "Conduct potentially warranting

further investigation" may include, but not be limited to, statements,

actions, and communications made to a covered person;

(q) "Professional sports stadium or arena" means a stadium, ballpark,

or arena in which a professional sport or athletic event occurs;

(r) "Prohibited sports bettor" means:

(i) any officer or employee of the commission;

(ii) any principal or key employee of a casino, mobile sports wagering

licensee, and its affiliates, except as may be permitted by the

commission;

(iii) any casino gaming or non-gaming employee at the casino that

employs such person and any gaming or non-gaming employee at the mobile

sports wagering licensee that employs such person;

(iv) any contractor, subcontractor, or consultant, or officer or

employee of a contractor, subcontractor, or consultant, of a casino or a

mobile sports wagering licensee if such person is directly involved in

the operation or observation of sports wagering, or the processing of

sports wagering claims or payments;

(v) any person subject to a contract with the commission if such

contract contains a provision prohibiting such person from participating

in sports wagering;

(vi) any spouse, child, sibling or parent residing in the principal

place of abode of any of the foregoing persons at the same casino or

mobile sports wagering licensee where the foregoing person is prohibited

from participating in sports wagering;

(vii) any amateur or professional athlete if the sports wager is based

on any sport or athletic event that the athlete participates in at such

amateur or professional level;

(viii) any sports agent, owner or employee or independent contractor

of a team, player and umpire union personnel, and employee referee,

coach or official of a sports governing body, if the sports wager is

based on any sport or athletic event overseen by the individual's sports

governing body;

(ix) any individual placing a wager as an agent or proxy for another

person known to be a prohibited sports bettor; or

(x) any minor.

(s) "Prohibited sports event" means a sport or athletic event in which

any New York college team participates regardless of where the event

takes place, or high school sport or athletic event. The following shall

not be considered prohibited sports events: (i) a collegiate tournament,

and (ii) a sports event within such tournament so long as no New York

college team is participating in that particular sports event;

(t) "Sports event" means any professional sport or athletic event and

any collegiate sport or athletic event, except a prohibited sports

event;

(u) "Sports governing body" means the organization that prescribes

final rules and enforces codes of conduct with respect to a sporting

event and participants therein;

(v) "Sports pool" means the business of accepting wagers on any sports

event by any system or method of wagering;

(w) "Sports wager" means cash or cash equivalent that is paid by an

authorized sports bettor to a casino or a mobile sports wagering

licensee to participate in sports wagering offered by such casino or

mobile sports wagering licensee;

(x) "Sports wagering" means wagering on sporting events or any portion

thereof, or on the individual performance statistics of athletes

participating in a sporting event, or combination of sporting events, by

any system or method of wagering, including, but not limited to,

in-person communication and electronic communication through internet

websites accessed via a mobile device or computer, and mobile device

applications; provided however that sports wagers shall include, but are

not limited to, single-game bets, teaser bets, parlays, over-under bets,

money line, pools, in-game wagering, in-play bets, proposition bets, and

straight bets;

(y) "Sports wagering gross revenue" means: (i) the amount equal to the

total of all sports wagers not attributable to prohibited sports events

that a mobile sports wagering licensee collects from all sports bettors,

less the total of all sums not attributable to prohibited sports events

paid out as winnings to all sports bettors, however, that the total of

all sums paid out as winnings to sports bettors shall not include the

cash equivalent value of any merchandise or thing of value awarded as a

prize;

(z) "Sports wagering lounge" means an area wherein a sports pool is

operated at a casino for placement of in-person wagers;

(aa) "Unusual wagering activity" means abnormal wagering activity

exhibited by patrons and deemed by the casino, the mobile sports

wagering licensee, or commission pursuant to rules and regulations

promulgated by the commission, as a potential indicator of suspicious

activity. Abnormal wagering activity may include, but is not limited to,

the size of a patron's wager or increased wagering volume on a

particular event or wager type;

(bb) "Suspicious wagering activity" means unusual wagering activity

that cannot be explained and is indicative of match fixing, the

manipulation of an event, misuse of inside information, or other

prohibited activity; and

(cc) "Independent integrity monitor" means an independent individual

or entity approved by the commission to receive reports of unusual

wagering activity from a casino, mobile sports wagering licensee, or

commission for the purpose of assisting in identifying suspicious

wagering activity.

2. (a) In addition to authorized gaming activities, a casino may

operate a sports pool upon the approval of the commission and in

accordance with the provisions of this section and applicable

regulations promulgated pursuant to this article. The commission shall

hear and decide promptly and in reasonable order all applications for a

license to operate a sports pool, shall have the general responsibility

for the implementation of this section and shall have all other duties

specified in this section with regard to the operation of a sports pool.

The license to operate a sports pool shall be in addition to any other

license required to be issued to operate a casino. No license to operate

a sports pool shall be issued by the commission to any entity unless it

has established its financial stability, integrity and responsibility

and its good character, honesty and integrity.

No later than five years after the date of the issuance of a license

and every five years thereafter or within such lesser periods as the

commission may direct, a licensee shall submit to the commission such

documentation or information as the commission may by regulation

require, to demonstrate to the satisfaction of the executive director of

the commission that the licensee continues to meet the requirements of

the law and regulations.

(b) A sports pool shall be operated in a sports wagering lounge

located at a casino. The lounge shall conform to all requirements

concerning square footage, design, equipment, security measures and

related matters which the commission shall by regulation prescribe.

Provided, however, the commission may also approve additional locations

for a sports pool within the casino, in areas that have been approved by

the commission for the conduct of other gaming, to be operated in a

manner and methodology as regulation shall prescribe.

(c) The operator of a sports pool shall establish or display the odds

at which wagers may be placed on sports events.

(d) An operator shall accept wagers on sports events only from persons

physically present in the sports wagering lounge, through mobile sports

wagering offered pursuant to section thirteen hundred sixty-seven-a of

this title, if such operator is also a mobile sports wagering licensee,

or any additional locations for a sports pool within the casino,

approved by the gaming commission. A person placing a wager shall be at

least twenty-one years of age.

(e) An operator or mobile sports wagering licensee may also accept

layoff bets as long as the authorized sports pool places such wagers

with another authorized sports pool or pools in accordance with

regulations of the commission. A sports pool that places a layoff bet

shall inform the sports pool accepting the wager that the wager is being

placed by a sports pool and shall disclose its identity.

(f) An operator or mobile sports wagering licensee may utilize global

risk management pursuant to the approval of the commission.

(g) An operator or mobile sports wagering licensee shall not admit

into the sports wagering lounge, or accept wagers from, any person whose

name appears on the exclusion list.

(h) The holder of a license to operate a sports pool may contract with

an entity to conduct that operation, in accordance with the regulations

of the commission. That entity shall obtain a license as a casino vendor

enterprise prior to the execution of any such contract, and such license

shall be issued pursuant to the provisions of section one thousand three

hundred twenty-seven of this article and in accordance with the

regulations promulgated by the commission.

(i) If any provision of this article or its application to any person

or circumstance is held invalid, the invalidity shall not affect other

provisions or applications of this article which can be given effect

without the invalid provision or application, and to this end the

provisions of this article are severable.

3. (a) All persons employed directly in wagering-related activities

conducted within a sports wagering lounge shall be licensed as a casino

key employee or registered as a gaming employee, as determined by the

commission. All other employees who are working in the sports wagering

lounge may be required to be registered, if appropriate, in accordance

with regulations of the commission.

(b) Each operator of a sports pool shall designate one or more casino

key employees who shall be responsible for the operation of the sports

pool. At least one such casino key employee shall be on the premises

whenever sports wagering is conducted.

4. Except as otherwise provided by this article, the commission shall

have the authority to regulate sports pools and the conduct of sports

wagering under this article to the same extent that the commission

regulates other gaming. No casino or mobile sports wagering licensee

shall be authorized to operate a sports pool unless it has produced

information, documentation, and assurances concerning its financial

background and resources, including cash reserves, that are sufficient

to demonstrate that it has the financial stability, integrity, and

responsibility to operate a sports pool. In developing rules and

regulations applicable to sports wagering, the commission shall examine

the regulations implemented in other states where sports wagering is

conducted and shall, as far as practicable, adopt a similar regulatory

framework. The commission shall promulgate regulations necessary to

carry out the provisions of this section, including, but not limited to,

regulations governing the:

(a) amount of cash reserves to be maintained by casinos and mobile

sports wagering licensees to cover winning wagers;

(b) acceptance of wagers on a series of sports events;

(c) maximum wagers which may be accepted by a casino or mobile sports

wagering licensee from any one patron on any one sports event;

(d) type of wagering tickets which may be used;

(e) method of issuing tickets;

(f) method of accounting to be used by casinos and mobile sports

wagering licensees;

(g) types of records which shall be kept;

(h) use of credit and checks by authorized sports bettors;

(i) the process by which a casino may place a layoff bet;

(j) the use of global risk management;

(k) type of system for wagering; and

(l) protections for a person placing a wager.

5. Each casino and mobile sports wagering licensee shall adopt

comprehensive house rules governing sports wagering transactions with

its authorized sports bettors. The rules shall specify the amounts to be

paid on winning wagers and the effect of schedule changes. The house

rules, together with any other information the commission deems

appropriate, shall be conspicuously displayed in the sports wagering

lounge and included in the terms and conditions of the account wagering

system, and copies shall be made readily available to authorized sports

bettors. Mobile sports wagering operators shall develop and prominently

display procedures on the main page of such mobile sports wagering

operator's platform for the filing of complaints by authorized sports

bettors against such mobile sports wagering operator. An initial

response shall be given by such mobile sports wagering operator to such

bettor filing the complaint within forty-eight hours. A complete

response shall be given by such mobile sports wagering operator to such

bettor filing the complaint within ten business days. An authorized

sports bettor may file a complaint alleging a violation of the

provisions of this article with the commission.

6. (a) Each casino and mobile sports wagering operator that offers

sports wagering shall annually submit a report to the commission no

later than the twenty-eighth of February of each year, which shall

include the following information:

(i) the total amount of sports wagers received from authorized sports

bettors;

(ii) the total amount of prizes awarded to authorized sports bettors;

(iii) the total amount of sports wagering gross revenue received by

the casino or mobile sports wagering operator;

(iv) the total amount of wagers received on each sports governing

body's sporting events;

(v) the number of accounts held by authorized sports bettors;

(vi) the total number of new accounts established in the preceding

year, as well as the total number of accounts permanently closed in the

preceding year;

(vii) the total number of authorized sports bettors that requested to

exclude themselves in a prior year who participated in sports wagering;

and

(viii) any additional information that the commission deems necessary

to carry out the provisions of this article.

(b) The commission shall annually publish a report based on the

aggregate information provided by all casinos and mobile sports wagering

operators pursuant to paragraph (a) of this subdivision, which shall be

published on the commission's website no later than one hundred eighty

days after the deadline for the submission of individual reports as

specified in such paragraph (a).

7. For the privilege of conducting sports wagering in the state,

casinos shall pay a tax equivalent to ten percent of their sports

wagering gross gaming revenue, excluding sports wagering gross gaming

revenue attributed to mobile sports wagering offered pursuant to section

thirteen hundred sixty-seven-a of this title. Platform providers shall

pay a tax constituting a certain percentage of the sports wagering gross

gaming revenue attributed to mobile sports wagering offered through such

platform provider's platform pursuant to section thirteen hundred

sixty-seven-a of this title; provided however, that such percentage

shall be determined pursuant to a competitive bidding process conducted

by the commission as outlined in subdivision seven of section thirteen

hundred sixty-seven-a of this title; and provided further, that such

percentage shall be no lower than twelve percent. When awarding a

license pursuant to section thirteen hundred sixty-seven-a of this

title, the commission may set graduated tax rates; provided however,

that any such tax rates may not be lower than the minimum rate

established in this subdivision.

8. Notwithstanding section thirteen hundred fifty-one of this article,

mobile sports wagering gross gaming revenue and tax revenue shall be

excluded from sports wagering gross gaming revenue and tax revenue.

Mobile sports wagering tax revenue shall be separately maintained and

returned to the state for deposit into the state lottery fund for

education aid except as otherwise provided in this subdivision. Any

interest and penalties imposed by the commission relating to those

taxes, all penalties levied and collected by the commission, and the

appropriate funds, cash or prizes forfeited from sports wagering shall

be deposited into the state lottery fund for education. In fiscal year

two thousand twenty-two, the commission shall pay into the commercial

gaming fund one percent of the state tax imposed on mobile sports

wagering by this section to be distributed for problem gambling

education and treatment purposes pursuant to paragraph a of subdivision

four of section ninety-seven-nnnn of the state finance law; provided

however, that such amount shall be equal to six million dollars for each

fiscal year through fiscal year two thousand twenty-six and twelve

million dollars for each fiscal year thereafter, provided that this

amount may only be expended pursuant to a plan approved by the director

of the budget. In fiscal year two thousand twenty-two, the commission

shall pay one percent of the state tax imposed on mobile sports wagering

by this section to the general fund, a program to be administered by the

office of children and family services for a statewide youth sports

activities and education grant program for the purpose of providing

annual awards to sports programs for underserved youth under the age of

eighteen years; provided however, that such amount shall be equal to

five million dollars for each fiscal year thereafter. The commission

shall require at least monthly deposits by a platform provider of any

payments pursuant to subdivision seven of this section, at such times,

under such conditions, and in such depositories as shall be prescribed

by the state comptroller. The deposits shall be deposited to the credit

of the state commercial gaming revenue fund. The commission shall

require a monthly report and reconciliation statement to be filed with

it on or before the tenth day of each month, with respect to gross

revenues and deposits received and made, respectively, during the

preceding month.

9. The commission may perform audits of the books and records of a

casino or mobile sports wagering licensee pursuant to section one

hundred four of this chapter.

10. Nothing in this section shall apply to interactive fantasy sports

offered pursuant to article fourteen of this chapter. Nothing in this

section authorizes any entity that conducts interactive fantasy sports

offered pursuant to article fourteen of this chapter to conduct sports

wagering unless it separately qualifies for, and obtains, authorization

pursuant to this section.

11. A sports governing body may notify the commission that it desires

to restrict, limit, or exclude wagering on its sporting events by

providing notice in the form and manner as the commission may require.

Upon receiving such notice, the commission shall review the request in

good faith, seek input from the casinos or mobile sports wagering

licensees on such a request, and if the commission deems it appropriate,

promulgate regulations to restrict such sports wagering.

12. (a) When potential criminal activity is suspected by the

commission, the commission shall designate the division of the state

police to have primary responsibility for assisting the commission in

conducting investigations into unusual wagering activity, match fixing,

and other conduct that corrupts a wagering outcome of a sporting event

or events.

(b) Casinos and mobile sports wagering licensees shall maintain

records of sports wagering operations in accordance with regulations

promulgated by the commission. These regulations shall, at a minimum,

require a casino or mobile sports wagering operator to adopt procedures

to obtain personally identifiable information from any individual who

places any single wager in an amount of ten thousand dollars or greater

or making a potential payout or actual payout of ten thousand dollars or

greater on a winning wager.

(c) Casinos, mobile sports wagering licensees and sports governing

bodies shall cooperate with the commission to ensure the timely,

efficient, and accurate sharing of information.

(d) Casinos, mobile sports wagering licensees and sports governing

bodies shall cooperate with investigations conducted by the commission

or law enforcement agencies, including but not limited to providing or

facilitating the provision of account-level wagering information and

audio or video files relating to persons placing wagers; provided,

however, that the casino and mobile sports wagering operator shall not

be required to share any personally identifiable information of an

authorized sports bettor with any sports governing body unless ordered

to do so by the commission, a law enforcement agency or court of

competent jurisdiction.

(e) (i) Casinos and mobile sports wagering licensees shall promptly

report to the commission and any third party integrity monitoring

provider approved by the commission, as applicable and in accordance

with rules and regulations established by the commission, any

information relating to:

(1) criminal or disciplinary proceedings commenced against the casino

or mobile sports wagering licensee in connection with its operations;

(2) unusual wagering activity or patterns that may indicate a concern

with the integrity of a sporting event or events;

(3) any potential breach of the relevant sports governing body's

internal rules and codes of conduct pertaining to sports wagering, as

they have been provided by the sports governing body to the casino or

the mobile sports wagering operator;

(4) any other conduct that corrupts a wagering outcome of a sporting

event or events, including match fixing; and

(5) suspicious or illegal wagering activities, including use of funds

derived from illegal activity, wagers to conceal or launder funds

derived from illegal activity, using agents to place wagers, using

confidential non-public information, and using false identification.

(ii) The commission may share information relating to conduct

described in clauses two, three and four of subparagraph (i) of this

paragraph with the relevant sports governing body.

(iii) The commission shall be authorized to share any information

under this section with any law enforcement entity, team, sports

governing body, or regulatory agency the commission deems appropriate.

Such sharing of information may include, but is not limited to, account

level wagering information and any audio or video files related to the

investigation.

(iv) A casino or mobile sports wagering licensee may be required to

share any personally identifiable information of an authorized sports

bettor with a sports governing body only pursuant to an order to do so

by the commission, a law enforcement agency or a court of competent

jurisdiction.

(f) The confidentiality of information shared between a sports

governing body and a casino or a mobile sports wagering operator shall

be maintained pursuant to all applicable data privacy laws, unless

disclosure is required by this section, the commission, other law, or

court order. Furthermore, the information shared between a sports

governing body, a casino, a mobile sports wagering operator or any other

party pursuant to this act may not be used for business or marketing

purposes by the recipient without the express written approval of the

party that provides such information.

(g) The commission, by regulation, may authorize and promulgate any

rules necessary to implement agreements with other states, or authorized

agencies thereof to enable the sharing of information to facilitate

integrity monitoring and the conduct of investigations into abnormal

wagering activity, match fixing, and other conduct that corrupts a

wagering outcome of a sporting event or events.

(h) In the event of the creation of an entity that maintains an

interstate database of sports wagering information for the purpose of

integrity monitoring, the commission may share information and cooperate

with such entity pursuant to regulations promulgated by the commission.

(i) Casinos and mobile sports wagering licensees shall adopt

procedures to prevent persons from wagering on sports events who are

prohibited from placing sports wagers. A casino or mobile sports

wagering licensee shall not accept wagers from any person:

(i) whose name appears on the exclusion list maintained by the

commission and provided to the casino or mobile sports wagering

licensee;

(ii) whose name appears on any self-exclusion list maintained by the

commission and provided to the casino or mobile sports wagering

licensee;

(iii) who is the operator, director, officer, owner, or employee of

the casino or mobile sports wagering licensee or any spouse, child,

sibling or parent living in the same principal place of abode as such

individual;

(iv) who has been identified as a prohibited sports bettor in a list

provided by the sports governing body to the commission and casino or

mobile sports wagering operator, that identifies the individual by such

personally identifiable information as specified by rules and

regulations promulgated by the commission; or

(v) who is an agent or proxy for a prohibited sports bettor.

(j) The commission shall establish a method of communication, which

may include, but is not limited to a website form, that allows any

person to confidentially report information about conduct potentially

warranting further investigation to the commission. The identity of any

person reporting conduct potentially warranting further investigation to

the commission shall remain confidential unless that person authorizes

disclosure of his or her identity or until such time as the allegation

of conduct potentially warranting further investigation is referred to

law enforcement. The commission shall promulgate rules governing the

investigation and resolution of a charge of any person purported to have

engaged in conduct potentially warranting further investigation.

13. The commission shall promulgate rules that require a casino or

mobile sports wagering licensees to implement responsible gaming

programs that include comprehensive employee trainings on responding to

circumstances in which individuals present signs of a gambling addiction

and requirements for casinos and mobile sports wagering licensees under

section thirteen hundred sixty-seven-a of this title to assess, prevent,

and address problem gaming by such casino's or mobile sports wagering

licensee's users.

14. For purposes of wager determination, the commission shall provide

a preference for the use of official league data unless the use of other

objective wager determination criteria has been justified to the

satisfaction of the commission.

15. The conduct of sports wagering in violation of this section is

prohibited.

16. (a) In addition to any criminal penalties provided for under

article two hundred twenty-five of the penal law, any person, firm,

corporation, association, agent, or employee, who is not authorized to

offer sports wagering under this section or section thirteen hundred

sixty-seven-a of this title, and who knowingly offers or attempts to

offer sports wagering or mobile sports wagering in New York shall be

liable for a civil penalty of not more than one hundred thousand dollars

for each violation, not to exceed five million dollars for violations

arising out of the same transaction or occurrence, which shall accrue to

the state and may be recovered in a civil action brought by the attorney

general.

(b) Any person, firm, corporation, association, agent, or employee who

knowingly violates any procedure implemented under this section, or

section thirteen hundred sixty-seven-a of this title, shall be liable

for a civil penalty as described in section one hundred sixteen of this

chapter which shall accrue to the state and may be recovered in a civil

action brought by the commission.