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

§ 1367-a. Mobile sports wagering. 1. (a) Except as provided in this

subdivision, the terms in this section shall have the same meanings as

such terms are defined in subdivision one of section thirteen hundred

sixty-seven of this title.

(b) "Mobile sports wagering operator" for purposes of this section,

means a mobile sports wagering operator as defined by section thirteen

hundred sixty-seven of this title.

2. (a) No entity shall administer, manage, or otherwise make available

a mobile sports wagering platform to persons located in New York state

unless licensed with the commission pursuant to this section.

(b) Licenses issued by the commission shall remain in effect for up to

ten years. The commission shall establish a process for renewal.

(c) The commission shall publish a list of all casinos and mobile

sports wagering licensees licensed to offer mobile sports wagering in

New York state pursuant to this section on the commission's website for

public use.

(d) All sports wagers through electronic communication placed in

accordance with this section are considered placed or otherwise made

when and where received by the mobile sports wagering licensee on such

mobile sports wagering licensee's server or other equipment used to

accept mobile sports wagering at a licensed gaming facility, regardless

of the authorized sports bettor's physical location within the state at

the time the sports wager is placed; and provided further that the

intermediate routing of electronic data in connection with mobile sports

wagering shall not determine the location or locations in which a wager

is initiated, received or otherwise made.

3. As a condition of licensure the commission shall require that each

platform provider authorized to conduct mobile sports wagering pay a

one-time fee of twenty-five million dollars. Such fee shall be paid

within thirty days of gaming commission approval prior to license

issuance and deposited into the state lottery fund for education aid.

4. (a) As a condition of licensure, each mobile sports wagering

operator shall implement the following measures:

(i) limit each authorized sports bettor to one active account on their

platform, and prevent anyone they know, or should have known to be a

prohibited sports bettor from maintaining accounts or participating in

any sports wagering offered by such mobile sports wagering operator;

(ii) adopt appropriate safeguards to ensure, to a reasonable degree of

certainty, as defined by rules and regulations promulgated by the

commission, that authorized sports bettors are physically located within

the state when engaging in mobile sports wagering;

(iii) prohibit minors from participating in any sports wagering

pursuant to rules and regulations promulgated by the commission;

(iv) when referencing the chances or likelihood of winning in

advertisements or upon placement of a sports wager, make clear and

conspicuous statements that are not inaccurate or misleading concerning

the chances of winning and the number of winners;

(v) permit any authorized sports bettor to permanently close an

account registered to such bettor, on any and all platforms supported by

such mobile sports wagering operator, at any time and for any reason;

(vi) offer introductory procedures for authorized sports bettors, that

shall be prominently displayed on the main page of such mobile sports

wagering operator platform, that explain sports wagering;

(vii) implement measures to protect the privacy and online security of

authorized sports bettors and their accounts;

(viii) offer all authorized sports bettors access to his or her

account history and account details;

(ix) ensure authorized sports bettors' funds are protected upon

deposit and segregated from the operating funds of such mobile sports

wagering operator and otherwise protected from corporate insolvency,

financial risk, or criminal or civil actions against such mobile sports

wagering operator;

(x) list on each website, in a prominent place, information concerning

assistance for compulsive play in New York state, including a toll-free

number directing callers to reputable resources containing further

information, which shall be free of charge;

(xi) ensure no sports wagering shall be based on a prohibited sports

event;

(xii) permit account holders to establish self-exclusion gaming limits

on a daily, weekly, and monthly basis that enable the account holder to

identify the maximum amount of money an account holder may deposit

during such period of time;

(xiii) when an account holder's lifetime deposits exceed two thousand

five hundred dollars, the mobile sports wagering operator shall prevent

any wagering until the patron immediately acknowledges that the account

holder has met the deposit threshold and may elect to establish

responsible gaming limits or close the account, and the account holder

has received disclosures from the mobile sports wagering operator

concerning problem gambling resources. Once a patron has reached their

lifetime deposit, such patron shall annually make the acknowledgement

required by this paragraph;

(xiv) maintain a publicly accessible internet page dedicated to

responsible play, a link to which must appear on the mobile sports

wagering operator's website and in any mobile application or electronic

platform on which a bettor may place wagers. The responsible play page

shall include: a statement of the mobile sports wagering operator's

policy and commitment to responsible gaming; information regarding, or

links to information regarding, the risks associated with gambling and

the potential signs of problem gaming; the availability of self-imposed

responsible gaming limits; a link to a problem gaming webpage maintained

by the office of addiction services and supports; and such other

information or statements as the commission may require by rule; and

(xv) submit annually a problem gaming plan that was approved by the

commission in consultation with the office of addiction services and

supports that includes: the objectives of and timetables for

implementing the plan; identification of the persons responsible for

implementing and maintaining the plan; procedures for identifying users

with suspected or known problem gaming behavior; procedures for

providing information to users concerning problem gaming identification

and resources; procedures to prevent gaming by minors and self-excluded

persons; and such other problem gaming information as the commission may

require by rule.

(b) No entity shall directly or indirectly operate an unlicensed

sports wagering platform in the state of New York, or advertise or

promote such unlicensed platform to persons located in the state of New

York.

(c) Mobile sports wagering licensees shall not offer any sports

wagering based on any prohibited sports event.

(d) Mobile sports wagering licensees shall not permit sports wagering

by anyone they know, or should have known, to be a prohibited sports

bettor.

(e) Advertisements for contests and prizes offered by a mobile sports

wagering operator shall not target prohibited sports bettors, minors, or

self-excluded persons.

(f) 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 a complaint by an authorized

sports bettor 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.

(g) Mobile sports wagering licensees shall maintain records of all

accounts belonging to authorized sports bettors and retain such records

of all transactions in such accounts for the preceding five years;

provided however that such records belonging to an authorized sports

bettor shall be readily accessible and downloadable, without cost, by

such authorized sports bettor.

(h) The server or other equipment which is used by a mobile sports

wagering licensee to accept mobile sports wagering shall be physically

located in the licensed gaming facility and be limited to sports

wagering related activities in accordance with regulations promulgated

by the commission.

(i) All mobile sports wagering initiated in this state shall be deemed

to take place at the licensed gaming facility where the server or other

equipment used by a mobile sports wagering licensee to accept mobile

sports wagering is located, regardless of the authorized sports bettor's

physical location within this state.

(j) All mobile sports wagering shall be conducted in compliance with

this section and section thirteen hundred sixty-seven of this title.

5. (a) Subject to regulations promulgated by the commission, a mobile

sports wagering operator may allow for authorized bettors to sign up to

create and fund accounts on its mobile sports wagering platform.

(b) Authorized sports bettors may deposit and withdraw funds to and

from their account on a mobile sports wagering operator through

electronically recognized payment methods, including but not limited to

credit cards and debit cards, or via any other means approved by the

commission; provided however, that in the case of credit card payments,

each authorized sports bettor's account per operator shall be limited to

a credit card spending amount of two thousand five hundred dollars per

year; and provided further, that this limitation shall not apply to

other payment methods or to debit cards. No operator shall be authorized

to provide a line of credit to any authorized sports bettor.

6. The commission, in conjunction with the office of addiction

services and supports, shall annually cause a report to be prepared and

distributed to the governor and the legislature on the impact of mobile

sports wagering on problem gamblers in New York, including, to the

extent practicable, an analysis of demographics which are

disproportionately impacted by the problem gambling. The costs

associated with the preparation and distribution of the report shall be

borne by mobile sports wagering licensees and the commission shall be

authorized to assess a fee against mobile sports wagering licensees for

these purposes. The commission, or in the case that an independent

integrity monitor has been established, such independent integrity

monitor shall also report biannually to the governor and the legislature

on the effectiveness of the statutory and regulatory controls in place

to ensure the integrity of mobile sports wagering operations.

7. A platform provider may be licensed by the commission only after

having been selected for potential licensure by the commission following

a competitive bidding process in which the commission shall issue a

request for applications no later than July first, two thousand

twenty-one; provided however, that the deadline for submission of

applications shall be no later than thirty days after the date upon

which the commission issues such request for applications.

(a) The commission shall select platform providers based upon the

criteria set forth in this section no later than one hundred fifty days,

to the extent practicable, after the final application is received. The

commission may disqualify applicants from licensure consideration if the

applicant or the mobile sports wagering operator or operators included

in their bid have not satisfied provision of required application

information, fail to meet any platform provider and mobile sports

wagering operator eligibility criteria established pursuant to the

request for applications, or are deemed by the commission to have not

satisfied the criteria pursuant to subdivision five of this section.

(a-1) The commission shall publish on its website the criteria that

will be used to score applications based upon the criteria set forth in

paragraph (c) of this subdivision; provided however, that such scoring

methodology shall award additional points to an applicant that has

entered into an agreement that includes revenue sharing related to such

mobile sports wagering with compacted Native American tribe(s) or

nation(s).

(b) The commission shall determine the form of application for

bidders, which shall require, at a minimum, the following information:

(i) Different scenarios for the number of platform providers and

number of mobile sports wagering operators licensed by the commission.

For each scenario, this shall include estimates of mobile sports

wagering gross gaming revenue and the bases for such estimates, the

percentage of gross revenue from mobile sports wagering the applicant

will pay to the state for the privilege of licensure if chosen, and the

percentage of overall mobile sports wagering gross gaming revenue

estimated to be generated;

(ii) The number of mobile sports wagering operators the applicant will

host on its mobile sports wagering platform, if the applicant is

licensed as a platform provider;

(iii) A description of how the applicant will use technology to ensure

all bettors are physically within approved locations within the state,

that any wager is accepted through equipment physically located at a

licensed gaming facility and that necessary safeguards against abuses

and addictions are in place;

(iv) The applicant and any associated operators such applicant

proposes in its application possess the qualifications, capabilities and

experience to provide a mobile sports wagering platform;

(v) A list of all jurisdictions where the applicant and parent

company, and mobile sports wagering operator or operators and parent

company or companies have been licensed or otherwise authorized by

contract or otherwise to conduct sports wagering operations. This shall

include the applicant and its mobile sports wagering operator or

operators' experience in such other markets;

(vi) Player acquisition model, advertising and affiliate programs and

marketing budget, including details on how the applicant and its mobile

sports wagering operator or operators will convert customers from

wagering through illegal channels to wagering legally in the state;

(vii) Timeframe to implement mobile sports wagering from award of

license;

(viii) The applicant and mobile sports wagering operator or operators'

capacity to bring authorized sports bettors into their mobile sports

wagering platform; and

(ix) Integrity monitoring and reporting including any current

affiliations related to integrity monitoring.

(c) In determining whether an applicant shall be eligible for a

platform provider license, the commission shall evaluate how each

applicant proposes to maximize sustainable, long-term revenue for the

state by evaluating the following factors:

(i) A market analysis detailing the benefits of the applicant's bid as

it relates to maximizing revenue to the state;

(ii) Estimates of mobile sports wagering gross gaming revenue

generated by the applicant under different scenarios;

(iii) The percentage of mobile sports wagering gross gaming revenue to

be paid to the state under different scenarios;

(iv) The potential market share of the mobile sports wagering operator

or operators under different scenarios;

(v) Advertising and promotional plans of the mobile sports wagering

operator or operators;

(vi) Past experience and expertise in the market of the applicant and

any mobile sports wagering operator or operators which are part of such

applicant's application;

(vii) The applicant's capacity to rapidly and effectively bring

authorized sports bettors into its platform;

(viii) A demonstration of how and to what degree the applicant fosters

racial, ethnic, and gender diversity in its workforce;

(ix) Timeframe to implement mobile sports wagering from award of

license;

(x) Any other factors that could impact the integrity, sustainability

or safety of the mobile sports wagering system; and

(xi) Any other factors that could impact revenue to the state.

(d) The commission shall award a license to each of the two highest

scoring platform providers that submit applications; provided however,

that such awards shall require that both winning platform providers pay

the same tax rate; and provided further, that the commission shall

require that no less than four mobile sports wagering operators will be

operating in the state. The commission may award additional licenses if

it determines that such additional awards are in the best interests of

the state; provided however, that any additional platform providers

awarded licenses must also agree to pay the same tax rate as those

platform providers that were initially awarded licenses by the

commission. The award of any such license shall require each applicant

to remit the highest percentage of gross gaming revenue from mobile

sports wagering contained in an applicant's bid selected by the

commission considered for licensure. A qualified applicant shall be

afforded the ability to revise its bid in any such manner in order for

such bid to meet the percentage of gross gaming revenue from mobile

sports wagering as required by the commission for license award,

provided that the bid does not incorporate any additional operators not

already included in the bid; and provided however that it is not

determined by the commission that the revised bid no longer meets all

requirements and criteria established pursuant to this section and the

request for applications. Any applicant that does not revise its bid to

meet the percentage of gross gaming revenue from mobile sports wagering

required by the commission for license award shall not be awarded a

license.