Source: http://www.mainelegislature.org/legis/bills/bills_129th/billtexts/SP017502.asp
Timestamp: 2020-01-19 12:45:58
Document Index: 346615876

Matched Legal Cases: ['§1003', '§5', '§11', '§1104', '§2', '§2', '§ 1201', '§ 1203', '§ 1204', '§ 1205', '§ 1206', '§ 1207', '§ 1208', '§ 1209', '§ 1210', '§ 1211', '§ 1212', '§ 1213', '§ 1214', '§ 1215', '§ 1216', '§ 1217', '§1542', '§1', '§25', '§1542', '§1', '§1542', '§1', '§13', '§1542', '§1', '§1542', '§3', '§26', '§1542', '§3', '§1542', '§3', '§1542', '§4', '§27', '§16']

SP0175, LD 553, item 2, Document Text
LD 553 Session - 129th Maine Legislature
C "A", Filing Number S-318, Sponsored by
‘Sec. 1. 8 MRSA §1003, sub-§5, as repealed and replaced by PL 2017, c. 475, Pt. A, §11, is amended to read:
5. Additional duties of the director. The director also serves as the director of the Gambling Control Unit, established as a bureau within the Department of Public Safety under Title 25, section 2902, subsection 12. As director of the unit, the director shall administer and enforce the laws governing fantasy contests under chapter 33 , sports wagering under chapter 35 and beano and games of chance under Title 17, chapters 13-A and 62, respectively.
Sec. 2. 8 MRSA §1104, sub-§2, as enacted by PL 2017, c. 303, §2, is amended to read:
Sec. 3. 8 MRSA c. 35 is enacted to read:
§ 1201. Authorization of sports wagering; license required
Notwithstanding any provision of law to the contrary, the operation of sports wagering and ancillary activities are lawful when conducted in accordance with the provisions of this chapter and the rules adopted under this chapter.
A person or entity may not engage in any activities in this State that require a license under this chapter unless all necessary licenses have been obtained in accordance with this chapter and rules adopted under this chapter.
1. Adjusted gross sports wagering receipts. "Adjusted gross sports wagering receipts" means an operator's gross receipts from sports wagering less the total of all winnings paid to patrons, which includes the cash equivalent of any merchandise or thing of value awarded as a prize, and less excise tax payments remitted to the Federal Government.
2. Collegiate sports or athletic event. "Collegiate sports or athletic event" means a sports or athletic event offered or sponsored by, or played in connection with, a public or private institution that offers postsecondary educational services.
5. Director. "Director" means the director of the Gambling Control Unit within the department.
6. Facility operator. "Facility operator" means a facility sports wagering licensee under subsection 7, paragraph A.
7. License. "License" means any license applied for or issued by the director under this chapter, including, but not limited to:
A. A facility sports wagering license under section 1206 to conduct sports wagering in which wagers are placed within a physical location in this State;
B. A mobile sports wagering license under section 1207 to permit a mobile operator to operate sports wagering through an approved mobile application or other digital platform that involves, at least in part, the use of the Internet;
C. A supplier license under section 1208 to sell goods and services to be used in connection with sports wagering, but not to directly accept wagers;
D. A management services license under section 1209 to manage sports wagering on behalf of a facility sports wagering licensee or a mobile sports wagering licensee; and
E. An occupational license under section 1210 to be employed by a facility sports wagering licensee to operate sports wagering when the employee performs duties in furtherance of or associated with the operation of sports wagering.
8. Mobile operator. "Mobile operator" means a mobile sports wagering licensee under subsection 7, paragraph B.
9. Operator. "Operator" includes a facility operator and a mobile operator.
10. Professional sports or athletic event. "Professional sports or athletic event" means an event at which 2 or more persons participate in sports or athletic contests and receive compensation in excess of actual expenses for their participation in the event.
11. Prohibited sports event. "Prohibited sports event" means a high school sports or athletic event, any other event in which a majority of the participants are under 18 years of age or a collegiate sports or athletic event in which any Maine collegiate sports team participates, regardless of where the event takes place.
12. Qualified gaming entity. "Qualified gaming entity" means a gaming entity that offers sports wagering through mobile applications or digital platforms in any jurisdiction in the United States pursuant to a state regulatory structure.
13. Sports event. "Sports event" means any professional sports or athletic event, collegiate sports or athletic event or amateur sports or athletic event, including but not limited to an Olympic or international sports or athletic event, a motor vehicle race or an electronic sports event, commonly referred to as "e-sports."
14. Sports wagering. "Sports wagering" means the business of accepting wagers on sports events or portions of sports events, the individual performance statistics of athletes in a sports event or a combination of any of the same by any system or method of wagering approved by the director, including, but not limited to, in person on the property of a facility licensee or via a mobile sports wagering licensee's mobile applications and digital platforms that use communications technology to accept wagers. "Sports wagering" does not include the sale of pari-mutuel pools authorized under chapter 11 or the operation of fantasy contests as defined in section 1101, subsection 4.
15. Wager. "Wager" means a sum of money or thing of value risked on an uncertain occurrence.
§ 1203. Powers and duties of director
1. Powers and duties. In administering and enforcing this chapter, the director:
A. Has the power to regulate the conduct of sports wagering;
B. Shall determine the eligibility of a person to hold or continue to hold a license, shall issue all licenses and shall maintain a record of all licenses issued under this chapter;
C. Shall levy and collect all fees, civil penalties and tax on adjusted gross sports wagering receipts imposed by this chapter, except as otherwise provided under this chapter;
D. May sue to enforce any provision of this chapter or any rule of the director by civil action or petition for injunctive relief;
E. May hold hearings, administer oaths and issue subpoenas or subpoenas duces tecum in the manner provided by applicable law; and
F. May exercise any other powers necessary to effectuate the provisions of this chapter and the rules of the director.
2. Rules. The director shall adopt rules governing the conduct of sports wagering in the State, which must, at a minimum, include the following:
A. Qualifications for obtaining a facility sports wagering license, supplier license, management services license, mobile sports wagering license or occupational license, including the procedure and qualifications for obtaining a waiver of the occupational license requirement;
B. Qualifications for obtaining a temporary facility sports wagering license, temporary supplier license, temporary management services license and temporary mobile sports wagering license;
C. The methods of operation of sports wagering, including but not limited to the permitted systems and methods of wagers; the use of credit and checks by persons making wagers; the types of wagering receipts that may be used; the method of issuing receipts; the prevention of sports wagering on prohibited sports events; the protection of patrons placing wagers; and the promotion of social responsibility and responsible gaming and display of information on resources for problem gambling at a facility operator's premises or on any mobile application or digital platform used to place wagers;
D. If the director determines that establishment of a maximum wager is necessary for the protection of public safety, the maximum wager that may be accepted from any one person on a single sports event;
E. Standards for the adoption of comprehensive house rules governing sports wagering by operators and the approval of house rules by the director as required under section 1211;
F. Minimum design and security requirements for the physical premises of facility operators in which sports wagering is conducted, including but not limited to minimum requirements for the acceptance of wagers at a self-serve kiosk located on the premises and minimum required methods for verifying the identity and age of a person who places a wager with a facility operator, for verifying that the person making a wager is not prohibited from a making a wager under section 1213 and for requiring the refund of any wager determined to have been placed by a person prohibited from making a wager under section 1213;
G. Minimum design and security requirements for mobile applications and digital platforms for the acceptance of wagers by mobile operators, including required methods for verifying the age and identity of a person who places a wager with a mobile operator, for verifying that the person making the wager is physically located in the State and is not prohibited from making a wager under section 1213 and for requiring the refund of any wager determined to have been placed by a person prohibited from making a wager under section 1213;
H. The types of interested parties, including sports team or league employees or owners, from whom operators are prohibited from accepting wagers under section 1213, subsection 4;
I. Minimum design, security, testing and approval requirements for sports wagering equipment, systems or services sold by suppliers licensed under section 1208;
J. Minimum requirements for a contract between a management services licensee under section 1209 and an operator on whose behalf the management services licensee conducts sports wagering, including but not limited to requirements that the person providing management services is licensed prior to entering a contract and that the contract be approved by the director prior to the conduct of sports wagering;
K. Establishment of a list of persons who are not authorized to place a wager on a sports event, including but not limited to those persons who voluntarily request that their names be included on the list of unauthorized persons. The rules adopted under this paragraph must define the standards for involuntary placement on the list and for removal from the list; and
L. Minimum internal control standards for operators, including but not limited to procedures for safeguarding assets and revenues; the recording of cash and evidence of indebtedness; the maintenance of reliable records, accounts and reports of transactions, operations and events; required audits; and the content of and frequency with which reports of sports wagering activities and revenues must be made to the director.
3. Rulemaking. Rules adopted by the director pursuant to this chapter are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.
§ 1204. Application; criminal history background check
1. Application. An application for a license or for renewal of a license required under this chapter must be submitted on the form provided by the director. An application submitted to the director must, at a minimum, include the following:
A. The full name, current address and contact information of the applicant;
B. Disclosure of each person that has control of the applicant as described in subsection 2;
C. Consent to permit the director to conduct a criminal history record check in accordance with subsection 3 of the applicant and each person disclosed under paragraph B in accordance with procedures established by the director;
D. For the applicant and each person disclosed under paragraph B, a record of previous issuances and denials of or any adverse action taken against a gambling-related license or application under this Title or in any other jurisdiction. For purposes of this paragraph, "adverse action" includes, but is not limited to, a condition resulting from an administrative, civil or criminal violation, a suspension or revocation of a license or a voluntary surrender of a license to avoid or resolve a civil, criminal or disciplinary action; and
E. Any additional information required by the director by rule.
2. Persons that have control. The following persons are considered to have control of an applicant or a licensee:
A. Each corporate holding company, parent company or subsidiary company of a corporate applicant or licensee and each person that owns 10% or more of the corporate applicant or licensee and that has the ability to control the activities of the corporate applicant or licensee or elect a majority of the board of directors of that corporate applicant or licensee, except for a bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business;
B. Each person associated with a noncorporate applicant or licensee that directly or indirectly holds a beneficial or proprietary interest in the noncorporate applicant's or licensee's business operation or that the director otherwise determines has the ability to control the noncorporate applicant or licensee; and
C. Key personnel of an applicant or licensee, including any executive, employee or agent, having the power to exercise significant influence over decisions concerning any part of the applicant's or licensee's relevant business operation.
3. Criminal history record check. The director shall request a criminal history record check in accordance with this subsection for each applicant for initial licensure and each person required to be disclosed by the applicant for initial licensure under subsection 1, paragraph B. The director may require a criminal history record check in accordance with this section from a licensee seeking to renew a license, from any person the licensee is required to disclose under subsection 1, paragraph B as part of the license renewal application and from any person identified by the licensee under subsection 4. A criminal history record check conducted pursuant to this section must include criminal history record information obtained from the Maine Criminal Justice Information System established in Title 16, section 631 and the Federal Bureau of Investigation.
A. Criminal history record information obtained from the Maine Criminal Justice Information System pursuant to this subsection must include a record of public criminal history record information as defined in Title 16, section 703, subsection 8.
B. Criminal history record information obtained from the Federal Bureau of Investigation pursuant to this subsection must include other state and national criminal history record information.
C. An individual required to submit to a criminal history record check under this subsection shall submit to having the individual's fingerprints taken. The State Police, upon payment by the individual of the fee required under paragraph D, shall take or cause to be taken the individual's fingerprints and shall forward the fingerprints to the Department of Public Safety, Bureau of State Police, State Bureau of Identification. The State Bureau of Identification shall conduct the state and national criminal history record checks required under this subsection. Except for the portion of a payment, if any, that constitutes the processing fee for a criminal history record check charged by the Federal Bureau of Investigation, all money received by the State Police under this subsection must be paid to the Treasurer of State, who shall apply the money to the expenses incurred by the Department of Public Safety in the administration of this subsection.
D. The director shall by rule set the amount of the fee to be paid for each criminal history record check required to be performed under this subsection.
E. The subject of a Federal Bureau of Investigation criminal history record check may obtain a copy of the criminal history record check by following the procedures outlined in 28 Code of Federal Regulations, Sections 16.32 and 16.33. The subject of a state criminal history record check may inspect and review the criminal history record information pursuant to Title 16, section 709.
F. State and national criminal history record information obtained by the director under this subsection may be used only for the purpose of screening an applicant for a license or a license renewal under this chapter.
G. All criminal history record information obtained by the director pursuant to this subsection is confidential, is for the official use of the director only and may not be disseminated by the director or disclosed to any other person or entity except as provided in paragraph E.
H. The director, after consultation with the Department of Public Safety, Bureau of State Police, State Bureau of Identification, shall adopt rules to implement this subsection.
4. Material change to application. A person licensed under this chapter shall give the director written notice within 30 days of any material change to any information provided in the licensee's application for a license or renewal, including any change in the identity of persons considered to have control of the licensee as described in subsection 2.
5. Gambling Control Unit employees prohibited. An employee of the Gambling Control Unit within the department may not be an applicant for a license issued under this chapter.
§ 1205. Denial of license; administrative sanctions
1. Grounds for denial of license or imposition of administrative sanctions. The following are grounds for the director to deny a license or license renewal or for the imposition of administrative sanctions, in accordance with this section, on a person licensed under this chapter:
A. If the applicant or licensee has knowingly made a false statement of material fact to the director;
B. If the applicant or licensee has not disclosed the existence or identity of other persons that have control of the applicant or licensee as required by section 1204, subsections 1 and 4;
C. If the applicant or licensee has had a license revoked by any government authority responsible for regulation of gaming activities;
D. If the applicant, the licensee or a person having control of the applicant or licensee under section 1204, subsection 2 is not of good moral character. In determining whether the applicant, licensee or person is of good moral character, the director shall consider qualities that include but are not limited to honesty, candor, trustworthiness, diligence, reliability, observance of fiduciary and financial responsibility and respect for the rights of others;
E. If the applicant, the licensee or a person having control of the applicant or licensee under section 1204, subsection 2:
(1) Has, in any jurisdiction, been convicted of or pled guilty or nolo contendere to a crime punishable by one year or more of imprisonment;
(2) Has, in any jurisdiction, been adjudicated of committing a civil violation or been convicted of a criminal violation involving dishonesty, deception, misappropriation or fraud;
(3) Has engaged in conduct in this State or any other jurisdiction that would constitute a violation of this chapter; chapter 11 involving gambling; chapter 31; Title 17, chapter 13-A or 62; Title 17-A, chapter 39; or substantially similar offenses in other jurisdictions;
(4) Is a fugitive from justice, a drug user, a person with substance use disorder, an illegal alien or a person who was dishonorably discharged from the Armed Forces of the United States; or
(5) Is not current in filing all applicable tax returns and in the payment of all taxes, penalties and interest owed to this State, any other state or the United States Internal Revenue Service, excluding items under formal appeal;
F. If the applicant or licensee has not demonstrated to the satisfaction of the director sufficient financial assets to meet the requirements of the licensed business or proposed business and to meet any financial obligations imposed by this chapter;
G. If the applicant, the licensee or a person having control of the applicant or licensee under section 1204, subsection 2 has not demonstrated financial responsibility. For the purposes of this paragraph, "financial responsibility" means a demonstration of a current and expected future condition of financial solvency sufficient to satisfy the director that the applicant, the licensee or the person can successfully engage in business without jeopardy to the public health, safety and welfare. "Financial responsibility" may be determined by an evaluation of the total history concerning the applicant, the licensee or the person, including past, present and expected condition and record of financial solvency, business record and accounting and managerial practices;
H. If the applicant or licensee has not met the requirements of this chapter; or
I. If the applicant or licensee has violated any provision of this chapter or of the rules adopted under this chapter.
2. Denial of initial license or renewed license; notice; hearing. The director may deny an application for a license or for renewal of a license for the reasons set forth in subsection 1. The director shall notify the applicant or the licensee in writing of the decision and of the opportunity to request a hearing conducted by the commissioner.
If the applicant or licensee fails to request a hearing within 30 days of the date that the notice was mailed under this subsection, the director may issue a final decision denying the application for a license or for renewal of a license. If the applicant or licensee makes a timely request for a hearing, the commissioner shall conduct an adjudicatory hearing in accordance with Title 5, chapter 375, subchapter 4. The director’s decision to deny the license or license renewal stands until the commissioner issues a decision to uphold, modify or overrule the director’s decision.
After hearing, if the commissioner finds grounds for denying a license or license renewal under subsection 1, the commissioner may deny the application for a license or for renewal of a license.
3. Investigation of complaints; notice; hearing. The director or the director’s designee shall investigate a complaint on the director’s own motion or upon receipt of a written complaint regarding noncompliance with or violation of this chapter or of any rules adopted under this chapter. Following the investigation, the director may mail the licensee a notice of violation and proposed sanction and the opportunity to request a hearing.
If the licensee fails to request a hearing within 30 days of the date that a notice was mailed under this subsection, the director may issue a final decision imposing the sanction proposed in the notice. If the licensee makes a timely request for a hearing, the commissioner shall conduct an adjudicatory hearing in accordance with Title 5, chapter 375, subchapter 4. If, after the hearing, the commissioner finds that the factual basis of the complaint is true and is of sufficient gravity to warrant further action, the commissioner may impose an administrative sanction under subsection 4.
4. Administrative sanctions. The director or the commissioner may, pursuant to subsection 3, impose the following administrative sanctions on a licensee:
A. A written reprimand;
B. Conditions of probation of a license;
C. A license suspension;
D. A license revocation; or
E. A civil penalty of up to $25,000 per violation of any provision of this chapter or rule adopted pursuant to this chapter.
5. Appeals. A person aggrieved by the final decision of the commissioner under subsection 2 or 3 may appeal the commissioner's decision to the Superior Court in accordance with Title 5, chapter 375, subchapter 7.
§ 1206. Facility sports wagering license
1. Issuance of license. The director shall issue a facility sports wagering license upon finding that the applicant meets all requirements of this section, sections 1204 and 1205 and rules adopted under this chapter.
2. Eligibility. To be eligible to receive a facility sports wagering license, an applicant must be:
A. A commercial track licensed under section 271;
B. An off-track betting facility licensed under section 275-D;
C. A slot machine facility or casino licensed under section 1011; or
D. A federally recognized Indian tribe in this State.
Each entity or tribe identified in paragraphs A to D may receive only one facility sports wagering license under this section.
3. Authority to conduct sports wagering; management services permitted. A facility sports wagering license granted by the director pursuant to this section grants a licensee lawful authority to conduct sports wagering within the terms and conditions of the license and any rules adopted under this chapter. A facility sports wagering licensee may contract with a management services licensee under section 1209.
4. Fees. The fee for an initial or renewed facility sports wagering license is $2,000 and must be retained by the director for the costs of administering this chapter. In addition to the license fee, the director may charge a processing fee for an initial or renewed license in an amount equal to the projected cost of processing the application and performing any background investigations. If the actual cost exceeds the projected cost, an additional fee may be charged to meet the actual cost. If the projected cost exceeds the actual cost, the difference may be refunded to the applicant or licensee.
5. Term of license. Except as provided in subsection 6, a license granted or renewed under this section is valid for 2 years unless sooner revoked by the director under section 1205. The failure of an entity identified in subsection 2, paragraph A, B or C to maintain the underlying license described in that paragraph voids the entity's facility sports wagering license.
6. Temporary license. An applicant for a facility sports wagering license that is qualified under subsection 2, paragraph A, B or C may submit with the application a request for a temporary license. An applicant for a facility sports wagering license that is qualified under subsection 2, paragraph D and that has a license to operate high-stakes beano under Title 17, section 314-A may submit with the application a request for a temporary license.
A request for a temporary license must include the initial license fee of $2,000. If the director determines that the applicant is qualified under subsection 2, meets the requirements established by rule for a temporary license and has paid the initial license fee and the director is not aware of any reason the applicant is ineligible for a license under this section, the director may issue a temporary facility sports wagering license. A temporary license issued under this subsection is valid for one year or until a final determination on the facility sports wagering license application is made, whichever is sooner. If after investigation the director determines that the applicant is eligible for a facility sports wagering license under this chapter, the director shall issue the initial facility sports wagering license, at which time the temporary license terminates. The initial facility sports wagering license is valid for 2 years from the date that the temporary license was issued by the director. Sports wagering conducted under authority of a temporary license must comply with the facility operator's house rules adopted under section 1211.
7. Occupational license required. A facility sports wagering licensee, including a temporary licensee under subsection 6, shall conduct sports wagering through persons holding a valid occupational license under section 1210.
8. Municipal control. Nothing in this chapter may be construed to restrict the authority of municipalities under municipal home rule provisions of the Constitution of Maine, including zoning and public safety authority.
§ 1207. Mobile sports wagering license
1. Issuance of license. The director shall issue a mobile sports wagering license upon finding that the applicant meets all requirements of this section, sections 1204 and 1205 and rules adopted under this chapter.
2. Eligibility. To be eligible to receive a mobile sports wagering license, an applicant must be:
C. A slot machine facility or casino licensed under section 1011;
D. A federally recognized Indian tribe in this State; or
E. A qualified gaming entity.
3. Authority to conduct sports wagering; management services permitted. A mobile sports wagering license granted by the director pursuant to this section grants a licensee lawful authority to conduct sports wagering through any mobile applications or digital platforms approved by the director within the terms and conditions of the license and any rules adopted under this chapter. A mobile sports wagering licensee may contract with a management services licensee under section 1209.
4. Fees. The fee for an initial or renewed mobile sports wagering license is $20,000 and must be retained by the director for the costs of administering this chapter. In addition to the license fee, the director may charge a processing fee for an initial or renewed license in an amount equal to the projected cost of processing the application and performing any background investigations. If the actual cost exceeds the projected cost, an additional fee may be charged to meet the actual cost. If the projected cost exceeds the actual cost, the difference may be refunded to the applicant or licensee.
5. Term of license. Except as provided in subsection 6, a license granted or renewed under this section is valid for 2 years unless sooner revoked by the director under section 1205. The failure of an entity identified in subsection 2, paragraph A, B or C to maintain the underlying license described in that paragraph voids the entity's mobile sports wagering license.
6. Temporary license. An applicant for a mobile sports wagering license may submit with the application a request for a temporary license. A request for a temporary license must include the initial license fee of $20,000. If the director determines that the applicant is qualified under subsection 2, meets the requirements established by rule for a temporary license and has paid the initial license fee and the director is not aware of any reason the applicant is ineligible for a license under this section, the director may issue a temporary mobile sports wagering license. A temporary license issued under this subsection is valid for one year or until a final determination on the mobile sports wagering license application is made, whichever is sooner. If after investigation the director determines that the applicant is eligible for a mobile sports wagering license under this chapter, the director shall issue the initial mobile sports wagering license, at which time the temporary license terminates. The initial mobile sports wagering license is valid for 2 years from the date that the temporary license was issued by the director. Sports wagering conducted under authority of a temporary license must comply with the mobile operator's house rules adopted under section 1211.
§ 1208. Supplier license
1. Issuance of license; eligibility. The director shall issue a supplier license upon finding that the applicant meets all requirements of this section, sections 1204 and 1205 and rules adopted under this chapter.
2. Equipment. An applicant for a supplier license shall demonstrate that the equipment, systems or services that the applicant plans to offer to an operator conform to standards established by rule by the director. The director may accept approval by another jurisdiction that is specifically determined by the director to have similar equipment standards as evidence the applicant meets the standards established by the director by rule.
3. Authority to supply operators. A supplier license granted by the director pursuant to this section grants a licensee lawful authority to sell or to lease sports wagering equipment, systems or services to operators in the State within the terms and conditions of the license and any rules adopted under this chapter.
4. Fees. The fee for an initial or renewed supplier license is $20,000 and must be retained by the director for the costs of administering this chapter. In addition to the license fee, the director may charge a processing fee for an initial or renewed license in an amount equal to the projected cost of processing the application and performing any background investigations. If the actual cost exceeds the projected cost, an additional fee may be charged to meet the actual cost. If the projected cost exceeds the actual cost, the difference may be refunded to the applicant or licensee.
5. Term of license. Except as provided in subsection 6, a license granted or renewed under this section is valid for 2 years unless sooner revoked by the director under section 1205.
6. Temporary license. An applicant for a supplier license may submit with the application a request for a temporary license. A request for a temporary license must include the initial license fee of $20,000. If the director determines that the applicant is qualified under subsection 2, meets the requirements established by rule for a temporary license and has paid the initial license fee and the director is not aware of any reason the applicant is ineligible for a license under this section, the director may issue a temporary supplier license. A temporary license issued under this subsection is valid for one year or until a final determination on the supplier license application is made, whichever is sooner. If after investigation the director determines that the applicant is eligible for a supplier license under this chapter, the director shall issue the initial supplier license, at which time the temporary license terminates. The initial supplier license is valid for 2 years from the date that the temporary license was issued by the director.
7. Inventory. A supplier licensee shall submit to the director a list of all sports wagering equipment, systems and services sold or leased to, delivered to or offered to an operator in this State as required by the director, all of which must be tested and approved by an independent testing laboratory approved by the director. An operator may continue to use supplies acquired from a licensed supplier if the supplier's license subsequently expires or is otherwise revoked, unless the director finds a defect in the supplies.
§ 1209. Management services license
1. Issuance of license; eligibility. The director shall issue a management services license upon finding that the applicant meets all requirements of this section, sections 1204 and 1205 and rules adopted under this chapter and that the applicant has sufficient knowledge and experience in the business of operating sports wagering to effectively conduct sports wagering in accordance with this chapter and the rules adopted under this chapter.
2. Authority to enter contract with operator. A management services licensee may contract with an operator to manage sports wagering operations on behalf of the operator in accordance with rules adopted under this chapter.
3. Contract approval; material change in written contract. A person may not contract with an operator to conduct sports wagering on behalf of the operator unless the person is licensed under this section and the director approves the written contract. A management services licensee must submit to the director any proposed material change to the written contract that has been approved by the director under this subsection. A management services licensee may not transfer, assign, delegate or subcontract any portion of the management services licensee's responsibilities under the contract or any portion of the management services licensee's right to compensation under the contract to any other person who does not hold a management services license.
4. Fees. The fee for an initial or renewed management services license is $20,000 and must be retained by the director for the costs of administering this chapter. In addition to the license fee, the director may charge a processing fee for an initial or renewed license in an amount equal to the projected cost of processing the application and performing any background investigations. If the actual cost exceeds the projected cost, an additional fee may be charged to meet the actual cost. If the projected cost exceeds the actual cost, the difference may be refunded to the applicant or licensee.
6. Temporary license. An applicant for a management services license may submit with the application a request for a temporary license. A request for a temporary license must include the initial license fee of $20,000. If the director determines that the applicant is qualified under subsection 1, meets the requirements established by rule for a temporary license and has paid the initial license fee and the director is not aware of any reason the applicant is ineligible for a license under this section, the director may issue a temporary management services license. A temporary license issued under this subsection is valid for one year or until a final determination on the management services license application is made, whichever is sooner. If after investigation the director determines that the applicant is eligible for a management services license under this chapter, the director shall issue the initial management services license, at which time the temporary license terminates. The initial management services license is valid for 2 years from the date that the temporary license was issued by the director.
§ 1210. Occupational license
1. License required. A person may not be employed by a facility operator to be engaged directly in sports wagering-related activities or otherwise to conduct or operate sports wagering without a valid occupational license issued by the director under this section. The director shall issue an occupational license to a person who meets the requirements of this section, section 1204 and section 1205. The director shall by rule establish a process for issuance of occupational licenses that is, as far as possible, identical to the process for licensing employees of a casino under section 1015.
2. Authority to be employed in sports wagering. An occupational license authorizes the licensee to be employed by a facility operator in the capacity designated by the director while the license is active. The director may establish, by rule, job classifications with different requirements to recognize the extent to which a particular job has the ability to affect the proper operation of sports wagering.
3. Application and fee. Except as provided in subsection 5, an applicant shall submit any required application forms established by the director and pay a nonrefundable application fee of $250. The fee may be paid on behalf of an applicant by the facility operator employer. Fees paid under this subsection must be retained by the director for the costs of administering this chapter.
4. Renewal fee and form. An occupational licensee must pay to the director an annual renewal fee of $50. The fee may be paid on behalf of the occupational licensee by the facility operator employer. In addition to a renewal fee, an occupational licensee must annually submit a renewal application on the form required by the director. Fees paid under this subsection must be retained by the director for the costs of administering this chapter.
5. Exception. An individual who is actively licensed under section 1015 as an employee of a casino that has a facility sports wagering license may obtain or renew a license under this section without paying an initial license fee or a renewal license fee under this section.
§ 1211. Sports wagering house rules
1. Adoption of house rules. An operator shall adopt comprehensive house rules for game play governing sports wagering transactions with its patrons. House rules must be approved by the director prior to implementation and meet the minimum standards established by the director by rule, including, but not limited to, requiring that the house rules specify the amounts to be paid on winning wagers and the effect of schedule changes, the circumstances under which the operator will void a bet and treatment of errors, late bets and related contingencies.
2. Advertisement of house rules. The house rules, together with any other information the director determines to be appropriate, must be advertised as required by the director by rule and must be made readily available to patrons.
§ 1212. Access to premises and equipment
A licensee under this chapter shall permit the director, the department or a designee of the director unrestricted access, during regular business hours, including access to locked or secured areas, to inspect any facility and any equipment, prizes, records or other items to be used in the operation of sports wagering.
§ 1213. Persons prohibited from making wagers on sports events
An operator and a management services licensee conducting sports wagering on behalf of an operator may not accept a wager on a sports event from the following persons:
1. Persons under 21 years of age. A person who has not attained 21 years of age;
2. Sports event participants. An athlete or individual who participates or officiates in the sports event that is the subject of the wager;
3. Operators and employees. An operator or management services licensee; directors, officers and employees of an operator or management services licensee; or a relative living in the same household as any of these persons. This subsection does not prohibit a relative living in the same household as a director, officer or employee of an operator or management services licensee from making a sports wager with an unaffiliated operator or management services licensee;
4. Interested parties. A person with an interest in the outcome of the sports event identified by the director by rule. The interested parties identified by the director by rule under this paragraph may include, but are not limited to, legal or beneficial owners of or employees of a sports team participating in the event or another sports team in the same league as a sports team participating in the event as well as directors, owners or employees of the sports league conducting the event;
5. Unauthorized persons. A person on a list established by rule by the director under section 1203, subsection 2, paragraph K of persons who are not authorized to make wagers on sports events;
6. Third parties. A person making a wager on behalf of or as the agent or custodian of another person; and
7. Regulatory staff. An employee of the Gambling Control Unit within the department.
§ 1214. Interception of sports wagering winnings to pay child support debt
A. "Child support debt" means child support debt that has been liquidated by judicial or administrative action.
B. "Department" means the Department of Health and Human Services.
C. "Licensee" means a facility operator, a mobile operator or a management services licensee under section 1209.
D. "Registry operator" means the department or an entity with which the department enters into a contract to maintain the registry pursuant to subsection 3.
E. "Winner" means a sports wagering customer to whom cash is returned as winnings.
2. Interception. A licensee shall intercept sports wagering winnings to pay child support debt in accordance with this section.
A. The name and social security number of each individual with outstanding child support debt;
B. The account number or identifier assigned by the department to the outstanding child support debt;
C. The amount of the outstanding child support debt; and
D. Any other information necessary to effectuate the purposes of this section.
A. Before making a payout of winnings of an amount equal to or greater than the amount for which the licensee is required to file a Form W-2G or substantially equivalent form with the United States Internal Revenue Service, the licensee shall obtain the name, address, date of birth and social security number of the winner and shall electronically submit this information to the registry operator.
B. Upon receipt of information pursuant to paragraph A, the registry operator shall electronically inform the licensee whether the winner is listed in the registry. If the winner is listed in the registry, the registry operator shall inform the licensee of the amount of the winner's outstanding child support debt and the account number or identifier assigned to the outstanding child support debt and shall provide the licensee with a notice of withholding that informs the winner of the right to an administrative hearing.
C. If the registry operator informs the licensee that the winner is not listed in the registry or if the licensee is unable to obtain information from the registry operator on a real-time basis after attempting in good faith to do so, the licensee may make payment to the winner.
D. If the registry operator informs the licensee that the winner is listed in the registry, the licensee may not make payment to the winner unless the amount of the payout exceeds the amount of outstanding child support debt, in which case the licensee may make payment to the winner of the amount of winnings that is in excess of the amount of the winner's outstanding child support debt.
12. Biennial review. The department shall include in its report to the Legislature under section 1066 the following information:
A. The number of names of winners submitted by licensees to the registry operator pursuant to this section in each of the preceding 2 calendar years;
B. The number of winners who were found to be listed in the registry in each of the preceding 2 calendar years;
C. The amount of winnings withheld by licensees pursuant to this section in each of the preceding 2 calendar years; and
D. The amount of withheld winnings refunded to winners as the result of administrative hearings requested pursuant to this section in each of the preceding 2 calendar years.
§ 1215. Allocation of funds
1. Tax imposed on facility operator; allocation of funds. A facility operator shall collect and distribute 10% of adjusted gross sports wagering receipts to the director to be forwarded by the director to the Treasurer of State for distribution as follows:
A. One percent of the adjusted gross sports wagering receipts must be deposited in the General Fund for the administrative expenses of the Gambling Control Unit within the department;
B. One percent of the adjusted gross sports wagering receipts must be deposited in the Gambling Addiction Prevention and Treatment Fund established by Title 5, section 20006-B; and
C. Eight percent of the adjusted gross sports wagering receipts must be deposited in the General Fund.
2. Tax imposed on mobile operator; allocation of funds. A mobile operator shall collect and distribute 16% of adjusted gross sports wagering receipts to the director to be forwarded by the director to the Treasurer of State for distribution as follows:
C. Fourteen percent of the adjusted gross sports wagering receipts must be deposited in the General Fund.
3. Due dates; late payments. The director may adopt rules establishing the dates on which payments required by this section are due. All payments not remitted when due must be paid together with interest on the unpaid balance at a rate of 1.5% per month.
§ 1216. Unauthorized sports wagering
Notwithstanding Title 17-A, chapter 39, a person who engages in an activity for which a license is required under this chapter and who does not possess the required license under this chapter to conduct that activity is subject to the penalties specified in this section and is not subject to Title 17-A, chapter 39 for that unlicensed activity.
1. First violation. A person, other than a licensee under this chapter, that operates or facilitates sports wagering commits a Class E crime and is subject to a fine of not more than $10,000 and a term of imprisonment of not more than 90 days.
2. Second violation. A person convicted of a 2nd violation of subsection 1 commits a Class D crime and is subject to a fine of not more than $50,000 and a term of imprisonment of not more than 6 months.
3. Third or subsequent violation. A person convicted of a 3rd or subsequent violation of subsection 1 commits a Class C crime and is subject to a fine of not less than $25,000 and not more than $100,000 and a term of imprisonment of not less than one year and not more than 5 years.
§ 1217. Applicability of other laws
The provisions of Title 17, chapter 62 and Title 17-A, chapter 39 do not apply to sports wagering conducted in accordance with this chapter and the rules adopted under this chapter.
Sec. 4. 25 MRSA §1542-A, sub-§1, ¶P, as enacted by PL 2017, c. 452, §25, is reallocated to 25 MRSA §1542-A, sub-§1, ¶S.
S. Who is required to have a criminal history record check under Title 22, section 2425-A, subsection 3-A.
Sec. 5. 25 MRSA §1542-A, sub-§1, ¶¶Q and R, as enacted by PL 2017, c. 457, §13, are amended to read:
Q. Who is an applicant for licensure with the State Board of Nursing as required under Title 32, section 2111, subsection 1; or
R. Who is required to have a criminal background check under Title 22, section 8302-A or 8302-B . ; or
Sec. 6. 25 MRSA §1542-A, sub-§1, ¶T is enacted to read:
T. Who is required to have a criminal background check under Title 8, section 1204.
Sec. 7. 25 MRSA §1542-A, sub-§3, ¶O, as enacted by PL 2017, c. 452, §26, is repealed.
Sec. 8. 25 MRSA §1542-A, sub-§3, ¶R is enacted to read:
R. The State Police shall take or cause to be taken the fingerprints of the person named in subsection 1, paragraph S at the request of that person or the Department of Administrative and Financial Services under Title 22, section 2425-A, subsection 3-A.
Sec. 9. 25 MRSA §1542-A, sub-§3, ¶S is enacted to read:
S. The State Police shall take or cause to be taken the fingerprints of the person named in subsection 1, paragraph T at the request of that person or the director of the Gambling Control Unit within the Department of Public Safety and upon payment by the director of the Gambling Control Unit of the fee established pursuant to Title 8, section 1204, subsection 3.
Sec. 10. 25 MRSA §1542-A, sub-§4, as amended by PL 2017, c. 452, §27 and by c. 457, §16, is repealed and the following enacted in its place:
4. Duty to submit to State Bureau of Identification. It is the duty of the law enforcement agency taking the fingerprints as required by subsection 3, paragraphs A, B and G to transmit immediately to the State Bureau of Identification the criminal fingerprint record. Fingerprints taken pursuant to subsection 1, paragraph C, D, E or F or pursuant to subsection 5 may not be submitted to the State Bureau of Identification unless an express request is made by the commanding officer of the State Bureau of Identification. Fingerprints taken pursuant to subsection 1, paragraph G must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the Department of Education. The bureau may not use the fingerprints for any purpose other than that provided for under Title 20-A, section 6103. The bureau shall retain the fingerprints, except as provided under Title 20-A, section 6103, subsection 9. Fingerprints taken pursuant to subsection 1, paragraph I and subsection 3, paragraph I must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the court and the Department of Public Safety, Gambling Control Board, respectively. Fingerprints taken pursuant to subsection 1, paragraph J, K, L or S must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the Department of Administrative and Financial Services. Fingerprints taken pursuant to subsection 1, paragraph P must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the Board of Osteopathic Licensure, established in Title 32, chapter 36. Fingerprints taken pursuant to subsection 1, paragraph N must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the Board of Licensure in Medicine, established in Title 32, chapter 48. Fingerprints taken pursuant to subsection 1, paragraph Q must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the State Board of Nursing, established in Title 32, chapter 31. Fingerprints taken pursuant to subsection 1, paragraph O must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks under Title 28-B, section 204. Fingerprints taken pursuant to subsection 1, paragraph R must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks for the Department of Health and Human Services. Fingerprints taken pursuant to subsection 1, paragraph T must be transmitted immediately to the State Bureau of Identification to enable the bureau to conduct state and national criminal history record checks under Title 8, section 1204.
Sec. 11. Emergency rules. The director of the Gambling Control Unit within the Department of Public Safety may adopt emergency rules under the Maine Revised Statutes, Title 5, section 8054 as necessary to implement this Act without the necessity of demonstrating that immediate adoption is necessary to avoid a threat to public health, safety or general welfare.
Initiative: Provides allocations to allow expenditure of sports betting revenue.
OTHER SPECIAL REVENUE FUNDS TOTAL $95,000 $190,000
DEPARTMENT TOTAL - ALL FUNDS $95,000 $190,000
Initiative: Provides allocations for one Public Safety Manager II position and associated All Other costs.
$116,850 $122,168
$5,408 $5,408
OTHER SPECIAL REVENUE FUNDS TOTAL $122,258 $127,576
$122,258 $127,576
DEPARTMENT TOTAL - ALL FUNDS $122,258 $127,576
$217,258 $317,576
SECTION TOTAL - ALL FUNDS $217,258 $317,576
Licensed commercial tracks, licensed off-track betting facilities, licensed casinos and federally recognized Indian tribes are eligible to apply for facility sports wagering licenses to conduct in-person sports wagering in the State. These entities are also eligible to apply for mobile sports wagering licenses to conduct sports wagering through mobile applications or digital platforms, as are qualified gaming entities that offer sports wagering through mobile applications or digital platforms in any jurisdiction in the United States pursuant to a state regulatory structure. Facility sports wagering licensees and mobile sports wagering licensees, referred to in the amendment as operators, may purchase or lease equipment, systems or services for sports wagering from entities with a supplier license, whose equipment, systems or services must meet standards established by rule. Operators may also enter into written contracts, approved by the director of the Gambling Control Unit within the Department of Public Safety, with management services licensees that have sufficient knowledge and experience in the business of operating sports wagering to effectively conduct sports wagering on behalf of operators. A person employed by a facility sports wagering licensee to be engaged directly in sports wagering-related activities must be licensed by the Gambling Control Unit.