Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=SB788%20INTR.htm&yr=2020&sesstype=RS&i=788
Timestamp: 2020-07-07 03:16:54
Document Index: 188951126

Matched Legal Cases: ['§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§29', '§11', '§11', '§29', '§29']

SB 788 Text
Introduced Version Senate Bill 788 History
By Senators Tarr, Ihlenfeld, Maroney, and Lindsay
[Introduced February 14, 2020; referred
A BILL to amend and reenact §29-22D-2, §29-22D-3, §29-22D-5, §29-22D-7, §29-22D-8, §29-22D-11, §29-22D-12, §29-22D-16, §29-22D-17, §29-22D-20, §29-22D-21, and §29-22D-22 of the Code of West Virginia, 1931, as amended; and to amend said code by adding thereto two new sections, designated §29-22D-6a and §29-22D-15a, all relating to permitting wagering on the results of certain professional or collegiate sports or athletic events and other events authorized as West Virginia Lottery sports wagering activities; providing legislative findings; defining terms; establishing license requirements and prohibitions; adopting house rules and the posting of the same; defining duties of a social sports wagering operator conducting social sports wagering; requiring the posting of betting limits; prohibiting unauthorized sports wagering in this state; creating the West Virginia Lottery Sports Wagering Fund; authorizing the collection of license fees; authorizing the West Virginia Lottery to collect an administrative allowance from gross sports wagering receipts; authorizing the West Virginia Lottery to levy and collect a tax in the amount of 10 percent of adjusted gross sports wagering receipts; defining how moneys deposited in the West Virginia Lottery Sports Wagering Fund shall be distributed; establishing the role of law enforcement; imposing civil and criminal penalties; establishing crimes; providing for the forfeiture of property for certain violations; and preempting this article from state and local law.
(1) The Legislature finds that the operation of the four racetracks and the historic resort hotel in this state play hospitality industry plays a critical role in the economy of this state, and such constitutional lotteries are rightfully authorized as state enterprises consistent with the rights and powers granted to the states under the Tenth Amendment of the United States Constitution. The federal government is a government of limited and enumerated powers, and powers not delegated to the United States by the Constitution nor prohibited by it to the states are reserved for the states and its respective citizens.
(6) The Legislature finds that the most effective and efficient manner in which the state can operate and regulate the forms of lottery authorized by the provisions of this article is to limit the number of authorized operators to those who are licensed, pursuant to the provisions of §29-22A-1 et seq. of this code, and to facilities licensed to operate video lottery terminals, pursuant to the provisions of §29-25-1 et seq. of this code
(7) (6) The Legislature finds that the granting of licenses pursuant to the provisions of this article, while maintaining all ownership rights and exercising control through strict regulation of all West Virginia Lottery sports wagering authorized by the provisions of this article, constitutes an appropriate exercise by the Legislature of the power granted it by the provisions of section 36, article VI of the Constitution of the State of West Virginia.
(8) The Legislature finds that the operation of West Virginia Lottery sports wagering at racetracks, licensed pursuant to the provisions of §29-22A-1 et seq. of this code, and at a historic resort hotel, licensed pursuant the provisions of §29-25-1 et seq. of this code, serves to protect, preserve, promote, and enhance the tourism industry of the state as well as the general fiscal wellbeing of the state and its subdivisions
(7) The Legislature finds that individuals frequently place unlawful sports wagers against other individuals, and in sports wagering pools, at establishments that serve beverages and food, and that it is beneficial to the state to regulate that wagering activity and capture a portion of the revenue that it generates.
(8) The Legislature finds that the opportunity to participate in sports wagering should not be predominantly limited to out-of-state companies, and that locally owned businesses, especially small businesses, should also have the opportunity to participate in sports wagering.
(B) A license to act as an agent of the commission in operating West Virginia Lottery social sports wagering (social operator license or West Virginia Lottery social sports wagering operator license);
(B) (C) A license to supply a gaming facility, licensed under this article, to operate sports wagering with sports wagering equipment or services necessary for the operation of sports wagering (supplier license);
(C) (D) A license to be employed at a racetrack or gaming facility, licensed under this article, to operate West Virginia Lottery sports wagering when the employee works in a designated gaming area that has sports wagering or performs duties in furtherance of or associated with the operation of sports wagering at the licensed gaming facility (occupational license); or
(D) (E) A license to provide management services under a contract to a gaming facility, licensed under this article, to operate sports wagering, or to a social operator, licensed under this article, to operate social sports wagering (management services provider license).
(14) “Professional sport or athletic event” means an event at which two or more persons participate in sports or athletic events and receive compensation, or are eligible for monetary prizes, in excess of actual expenses for their participation in such event.
“Social sports wagering operator” or “social operator” means any holder of a Class A license issued by the West Virginia Alcohol Beverage Control Administration that has also been licensed by the commission to operate a social sports wagering business.
“Social wagering receipts” means the total receipts received by a licensed social sports wagering operator from social sports wagering.
“West Virginia Lottery social sports wagering” or “social sports wagering” means the business of operating mobile applications or other digital platforms by which individuals may place wagers against other individuals, or participate in wagering pools, on sporting, e-sports, political, entertainment-industry, or other events, or the individual performances of competitors or entrants in such events, or whether a given occurrence or series of occurrences will take place during the course of such an event, or a combination of any of the same by any system or method of wagering approved by the commission including, but not limited to, mobile applications and other digital platforms that utilize communications technology to accept wagers originating within this state: Provided, That no wager may be placed on any event sponsored or organized by any elementary or secondary school or by the West Virginia Secondary Schools Activities Commission. The term includes, but is not limited to, exchange wagering and pools. The term does not include any of the types of wagering expressly excluded from the definition of “West Virginia Lottery sports wagering” in this section. The term also does not include moneyline or odds-based wagering or parlays.
“West Virginia Lottery social sports wagering license” means authorization granted, under this article, by the commission to a holder of a limited video retailer license issued by the Commission which permits that license holder to operate West Virginia Lottery social sports wagering. This term is synonymous with “social operator’s license.”
(22) “West Virginia Lottery sports wagering” or “sports wagering” means the business of accepting wagers on sporting events and other events, the individual performance statistics of athletes in a sporting event or other events, West Virginia Lottery social sports wagering, or a combination of any of the same by any system or method of wagering approved by the commission including, but not limited to, mobile applications and other digital platforms that utilize communications technology to accept wagers originating within this state: Provided, That no wager may be placed on any event sponsored or organized by any elementary or secondary school or by the West Virginia Secondary Schools Activities Commission. The term includes, but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and straight bets. The term does not include:
(23) “West Virginia Lottery sports wagering license” means authorization granted under this article by the commission to a gaming facility that is already licensed under §29-22A-1 et seq. or §29-25-1 et seq. of this code, which permits the gaming facility as an agent of the commission to operate West Virginia Lottery sports wagering in one or more designated areas or in one or more buildings owned by the licensed gaming facility on the grounds where video lottery is conducted by the licensee or through any other authorized platform developed by the gaming facility. This term is synonymous with “operator’s license.” Every West Virginia Lottery sports wagering licensee is also, by virtue of its sports wagering license, licensed to conduct West Virginia social sports wagering.
(b) No person may engage in any activity in connection with West Virginia Lottery sports wagering in this state unless all necessary licenses have been obtained in accordance with this article and rules of the commission. Four Five types of licenses: (1) Operator; (2) social operator; (3) supplier; (3) (4) management services provider; and (4) (5) occupational—are issued pursuant to this article, and no person or entity may engage in any sports wagering operation or activity without first obtaining the appropriate license.
(1) Each person associated with a corporate applicant, including any corporate holding company, parent company, or subsidiary company of the applicant who has the ability to control the activities of the corporate applicant or elect a majority of the board of directors of that corporation. This does not include any bank or other licensed lending institution which holds a mortgage or other lien acquired in the ordinary course of business;
(e) Each sports wagering licensee, social sports wagering licensee, licensed supplier, or a licensed management services provider shall display the license conspicuously in its place of business or have the license available for inspection by any agent of the commission or any law-enforcement agency.
(h) No commission employee may be an applicant for any license issued under this article nor may any employee of any such licensee directly or indirectly hold an ownership or a financial interest in any West Virginia Lottery sports wagering or social sports wagering license.
§29-22D-6a. Social operator license; West Virginia social sports wagering operators.
(a) A holder of a limited video retailer license from the commission may operate West Virginia Lottery social sports wagering upon the approval of the commission, and the commission shall have the general responsibility for the implementation of this article and applicable rules.
(b) All social sports wagering authorized by this article shall be West Virginia Lottery games owned by the State of West Virginia. A social operator license granted by the commission, pursuant to this article, grants licensees lawful authority to conduct West Virginia Lottery social sports wagering within the terms and conditions of the license and any rules promulgated under this article.
(c) Grant of license. -- Upon application by a holder of a limited video retailer license from the commission and payment of an application fee of $1,000, the commission shall immediately grant a West Virginia Lottery social sports wagering license to an operator that provides for the right to conduct West Virginia Lottery social sports wagering: Provided, That the applicant must meet the requirements for licensure under the provisions of this article and the rules of the commission. This license shall be issued for a five-year period and may be renewed for five-year periods upon payment of a renewal fee of $1,000 as long as an operator continues to meet all qualification requirements.
(d) Platform. -- A West Virginia Lottery social sports wagering license authorizes the operation of West Virginia Lottery social sports wagering through any mobile application or other digital platform approved by the commission.
(1) Approval. -- A West Virginia Lottery social sports wagering licensee may not enter into any management services contract that would permit any person other than the licensee to act as the commission’s agent in operating West Virginia Lottery social sports wagering, unless the management services contract: (A) Is with a person licensed under this article to provide management services; (B) is in writing; and (C) has been approved by the commission.
(2) Single management services provider. -- A West Virginia Lottery social sports wagering licensee may not have more than one management services contract at any time.
(3) Material change. -- The West Virginia Lottery social sports wagering licensee shall submit any material change in a management services contract, previously approved by the commission, to the commission for its approval or rejection before the material change may take effect.
(4) Other commission approvals and licenses. -- The duties and responsibilities of a management services provider under a management services contract may not be assigned, delegated, subcontracted, or transferred to a third party without the prior approval of the commission. Third parties must be licensed as a management services provider, under this article, before providing services.
(f) Expiration date and renewal. -- A licensed social operator shall submit to the commission such documentation or information as the commission may require, to demonstrate to the satisfaction of the director that the licensee continues to meet the requirements of the law and rules. Required documentation or information shall be submitted no later than five years after issuance of a social operator license and every five years thereafter, or within lesser periods, based on circumstances specified by the commission.
(a) License. — The holder of a license to operate West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering may contract with an entity to conduct that operation in accordance with the regulations rules of the commission. That entity shall obtain a license as a management services provider prior to the execution of any such contract, and such license shall be issued pursuant to the provisions of this article and any regulations rules promulgated by the commission. Entities that are not licensed to provide management services to holders of West Virginia sports wagering licenses may receive licenses to provide management services to holders of West Virginia social sports wagering licenses.
(1) The commission may issue a supplier license to a person to sell or lease sports wagering or social sports wagering equipment, systems, or other gaming items necessary to conduct sports wagering or social sports wagering, and offer services related to such equipment or other gaming items to a West Virginia Lottery sports wagering or social sports wagering licensee while the license is active. The commission may establish the conditions under which the commission may issue provisional licenses, pending completion of final action on an application.
(2) The commission may adopt rules establishing additional requirements for a West Virginia Lottery sports wagering or social sports wagering supplier and any system or other equipment utilized for wagering. The commission may accept licensing by another jurisdiction, that it specifically determines to have similar licensing requirements, as evidence the applicant meets West Virginia Lottery sports wagering or social sports wagering supplier licensing requirements.
(b) Supplier specifications. — An applicant for a supplier license shall demonstrate that the equipment, system, or services that the applicant plans to offer to the sports wagering or social sports wagering licensee conform to standards established by the commission and applicable state law. The commission may accept approval by another jurisdiction, that it specifically determines have similar equipment standards, as evidence the applicant meets the standards established by the commission and applicable state law.
(d) Inventory. — A licensed sports wagering or social sports wagering supplier shall submit to the commission a list of all sports wagering or social sports wagering equipment and services sold, delivered to, or offered to a West Virginia Lottery sports wagering or social sports wagering licensee in this state, as required by the commission, all of which must be tested and approved by an independent testing laboratory approved by the commission. A sports wagering or social sports wagering licensee may continue to use supplies acquired from a licensed sports wagering supplier, even if a supplier’s license expires or is otherwise cancelled, unless the commission finds a defect in the supplies.
(a) Each operator and social operator shall adopt comprehensive house rules for game play governing sports wagering or social sports wagering transactions with its patrons. These comprehensive rules will be published as part of the minimum internal control standards. The rules shall specify the amounts to be paid on winning wagers and the effect of schedule changes. House rules shall be approved by the commission prior to implementation.
(a) General. — All operators and social operators licensed under this article to conduct West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering shall:
(2) Promptly report to the commission any facts or circumstances related to the operation of a West Virginia Lottery sports wagering or social sports wagering licensee which constitute a violation of state or federal law and immediately report any suspicious betting over a threshold set by the operator that has been approved by the commission to the appropriate state or federal authorities;
(3) Conduct all sports wagering and social sports wagering activities and functions in a manner which does not pose a threat to the public health, safety, or welfare of the citizens of this state and does not adversely affect the security or integrity of the West Virginia Lottery;
(4) Hold the commission and this state harmless from and defend and pay for the defense of any and all claims which may be asserted against a licensee, the commission, the state, or employees thereof, arising from the licensee’s actions or omission while acting as an agent of the commission operating West Virginia Lottery sports wagering or social sports wagering pursuant to this article;
(5) Assist the commission in maximizing sports wagering or social sports wagering revenues; and
(1) Acquire West Virginia Lottery sports wagering or social sports wagering gaming equipment by purchase, lease, or other assignment and provide a secure location for the placement, operation, and play of sports wagering or social sports wagering gaming equipment;
(2) Prevent any person from tampering with or interfering with the operation of any West Virginia Lottery sports wagering or social sports wagering;
(5) Maintain sufficient cash and other supplies to conduct sports wagering or social sports wagering at all times; and
(6) Maintain daily records showing the gross sports wagering receipts and adjusted gross sports wagering receipts, or social wagering receipts, of the licensee from West Virginia Lottery sports wagering and shall timely file with the commission any additional reports required by rule or by other provisions of this code.
§29-22D-15a. Authorization of social sports wagering in this state; requirements.
(a) A social operator may operate mobile or other digital platforms or sports wagering devices, approved by the commission, by which a patron located within this state may place wagers against other patrons also located in this state, or participate in wagering pools, through the patron’s social sports wagering account.
(b) A social operator may operate mobile or other digital platforms or sports wagering devices, approved by the commission, by which a patron located in a state or jurisdiction with which the commission has entered into a sports wagering agreement may place wagers against other patrons also located in states or jurisdictions with which the commission has entered into sports wagering agreements, or may participate in a wagering pool in a state or jurisdiction with which the commission has entered into a sports wagering agreement, through the patron’s social sports wagering account.
(c) The commission and social operator may ban any person from participating in the play or operation of any West Virginia Lottery social sports wagering. A log of all excluded players shall be kept by the West Virginia Lottery and each licensee, and no player on the commission’s exclusion list or the licensed social operator’s exclusion list, shall wager on any West Virginia Lottery social sports wagering under this article.
(d) The commission shall promulgate rules implementing the provisions of subsection (a) of this section by interpretive rule and minimum internal control standards.
(e) No licensed social operator employee may place a wager on any social sports wagering at the employer’s facility or through any other mobile application or digital platform of their employer.
(f) No commission employee may knowingly wager or be paid any prize from any wager placed in West Virginia Lottery social sports wagering within this state or at any facility outside this jurisdiction that is directly or indirectly owned or operated by a social sports wagering licensee.
(a) Imposition and rate of assessment. — For the privilege of holding a license to operate sports or social sports wagering under this article, the state shall impose and collect 10 percent of the licensee’s adjusted gross sports wagering or social sports wagering receipts from the operation of West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering (hereinafter “privilege tax” or “tax”). The accrual method of accounting shall be used for purposes of calculating the amount of the tax owed by the licensee.
(1) The tax levied and collected pursuant to subsection (a) of this section is due and payable to the commission in weekly installments on or before the Wednesday following the calendar week in which the adjusted gross sports wagering receipts or social sports wagering receipts were received and the tax obligation was accrued.
(2) The licensed operator or social operator shall complete and submit the return for the preceding week by electronic communication to the commission, on or before Wednesday of each week, in the form prescribed by the commission that provides:
(A) The total gross sports wagering receipts and adjusted gross sports wagering receipts or social sports wagering receipts from operation of West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering during that week;
(B) The tax amount for which the sports wagering or social sports wagering licensee is liable; and
(C) Any additional information necessary in the computation and collection of the tax on adjusted gross sports wagering or social sports wagering receipts required by the commission.
(c) Privilege tax obligation imposed by this section is in lieu of other taxes. — With the exception of the ad valorem property tax collected under chapter 11A of this code, the privilege tax on adjusted gross sports wagering receipts and social wagering receipts imposed by this section is in lieu of all other state and local taxes and fees imposed on the operation of, or the proceeds from operation of West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering, except as otherwise provided in this section. The consumers sales and services tax imposed pursuant to §11-15-1 et seq. of this code, the use tax imposed by §11-15A-1 et seq. of this code and any similar local tax imposed at the municipal or county level, shall not apply to the licensee’s gross receipts from any West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering, or to the licensee’s purchase of sports wagering or social sports wagering equipment, supplies, or services directly used in operation of the sports wagering, or social sports wagering authorized by this article.
(d) Acquisition of any system or wagering equipment and other items related to the operation of West Virginia sports wagering or West Virginia Lottery social sports wagering shall be considered “facility modernization improvements” eligible for recoupment as defined in §29-22A-10(b)(2) and §29-25-22(c) of this code.
(e) Prohibition on credits. — Notwithstanding any other provision of this code to the contrary, no credit may be allowed against the privilege tax obligation imposed by this section or against any other tax imposed by any other provision of this code for any investment in gaming equipment or for any investment in or improvement to real property that is used in the operation of West Virginia Lottery sports wagering or West Virginia Lottery social sports wagering.
(a) The special fund in the State Treasury known as the West Virginia Lottery Sports Wagering Fund is hereby created and all moneys collected under this article by the commission shall be deposited with the State Treasurer to the West Virginia Lottery Sports Wagering Fund. The fund shall be an interest-bearing account with all interest or other return earned on the money of the fund credited to and deposited in the fund. All expenses of the commission incurred in the administration and enforcement of this article shall be paid from the sports wagering fund pursuant to subsection (b) of this section.
(b) The commission shall deduct an amount sufficient to reimburse its actual costs and expenses incurred in administering sports wagering at licensed gaming facilities and in administering social sports wagering from the gross deposits into the sports wagering fund. The amount remaining after the deduction for administrative expenses is the net profit.
(a) Any person, other than a licensee under this article, who engages in accepting, facilitating, or operating a sports wagering or social sports wagering operation is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $10,000 or confined in jail for not more than 90 days, or both fined and confined.
(b) Notwithstanding the penalty provisions subsection (a) of this section, any person convicted of a second violation of subsection (a) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $50,000, or confined in jail for not more than six months, or both fined and confined.
(c) Notwithstanding the penalty provisions of subsections (a) and (b) of this section, any person convicted of a third or subsequent violation of said subsection (a) of this section is guilty of a felony, and upon conviction thereof, shall be fined not less than $25,000 nor more than $100,000 or imprisoned in a state correctional facility for not less than one year nor more than five years, or both fined and confined imprisoned.
(a) A sports wagering or social sports wagering licensee is guilty of unlawful operation and is guilty of a misdemeanor when:
(1) The licensee operates West Virginia Lottery sports wagering or social sports wagering without authority of the commission to do so;
(2) The licensee operates West Virginia Lottery sports wagering or social sports wagering in any location or by any manner that is not approved by the commission;
(3) The licensee knowingly conducts, carries on, operates, or allows any sports wagering or social sports wagering to occur on premises or through any other device if equipment or material has been tampered with, or exposed to conditions in which it will be operated in a manner designed to deceive the public;
(c) Any person who violates any provision of subsection (a) of this section is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $1,000 or confined in jail for not more than six months, or both fined and confined, except any violation that is not committed by a natural person may result in a fine of not more than $25,000.
(d) Any person who violates any provision of subsection (b) of this section is guilty of a felony and, upon conviction thereof, shall be fined not less than $5,000 nor more than $10,000, or confined imprisoned in a state correctional facility for not less than one year nor more than five years, or both fined and confined imprisoned.
(e) With regard to subsection (a) of this section, each West Virginia sports wagering, and social sports wagering licensee shall post notice of the prohibitions and penalties of this section in a manner determined by the rules of the commission.
No local law or rule providing any penalty, disability, restriction, regulation, or prohibition for operating a gaming facility with West Virginia Lottery sports wagering or supplying a licensed gaming facility or for operating West Virginia Lottery social sports wagering, may be enacted, and the provisions of this article preempt all regulations, rules, ordinances, and laws of any county or municipality in conflict with this article.
NOTE: The purpose of this bill is to allow social sports wagering. It allows the business of operating mobile applications or other digital platforms by which individuals may place wagers against other individuals, or participate in wagering pools, on sporting, e-sports, political, entertainment-industry, or other events, or the individual performances of competitors or entrants in such events, or whether a given occurrence or series of occurrences will take place during the course of such an event, or a combination of any of the these events by any system or method of wagering approved by the Lottery Commission including, but not limited to, mobile applications and other digital platforms that use communications technology to accept wagers originating within this state.