An Act To Authorize Sports Wagering
Maine Legislature, Session 129, LD 1348
Committee: Veterans and Legal Affairs
Sponsors: EVANGELOS, DOW, BRYANT, HARNETT, MAREAN, MARTIN, PEBWORTH, RISEMAN, VEROW, MIRAMANT
Amends: 8 MRSA §1001, 8 MRSA §1003, 8 MRSA §1005, 8 MRSA §1006, 8 MRSA §1015, 8 MRSA §1016, 8 MRSA §1041, 8 MRSA §1042, 8 MRSA §1054, 8 MRSA §1066

Legislative Document
No. 1348
H.P. 976
House of Representatives, March 21, 2019
An Act To Authorize Sports Wagering
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative EVANGELOS of Friendship.
Cosponsored by Senator DOW of Lincoln and
Representatives: BRYANT of Windham, HARNETT of Gardiner, MAREAN of Hollis, 
MARTIN of Sinclair, PEBWORTH of Blue Hill, RISEMAN of Harrison, VEROW of Brewer, 
Senator: MIRAMANT of Knox.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  8 MRSA §1001, sub-§15, as amended by IB 2009, c. 2, §4, is further 
amended to read:
15.  Gambling activity.  "Gambling activity" means off-track betting, pari-mutuel 
wagering at a race track, sports wagering, high-stakes beano, beano, games of chance or 
slot machine or table game operation.
Sec. 2.  8 MRSA §1001, sub-§17, as amended by IB 2009, c. 2, §6, is further 
amended to read:
17.  Gambling services.  "Gambling services" means any goods or services provided 
to an operator licensed under this chapter or at a gambling facility that are used directly in 
connection with the operation of a slot machine or, a table game or sports wagering, 
including, but not limited to, maintenance, security services or junket services, and 
excluding slot machine or table game distribution by a slot machine distributor or table 
game distributor.
Sec. 3.  8 MRSA §1001, sub-§29-D is enacted to read:
29-D.  Net sports wagering income.  "Net sports wagering income" means the 
amount of sports wagers after payment of money from winning wagers to winning 
bettors.
Sec. 4.  8 MRSA §1001, sub-§§30-A and 30-B are enacted to read:
30-A.  Online sports wagering.  "Online sports wagering" means a sports wagering 
operation in which wagers on sports events are made via electronic device and 
transmitted to a sports wagering lounge by any means that involves the use, at least in 
part, of the Internet.
30-B.  Online sports wagering operator.  "Online sports wagering operator" means 
a person or a federally recognized Indian tribe licensed under section 1081 that operates 
online sports wagering.
Sec. 5.  8 MRSA §1001, sub-§35-A is enacted to read:
35-A.  Prohibited sports event.  "Prohibited sports event" means a high school sport 
or athletic event, another sport or athletic event in which a majority of the participants 
have not attained 18 years of age or a competitive video game event.
Sec. 6.  8 MRSA §1001, sub-§§42-A to 42-D are enacted to read:
42-A.  Sports event.  "Sports event" means a professional or amateur sport or athletic 
event, or any portion thereof, including but not limited to the individual performance 
statistics of athletes in an event or a combination of events.
42-B.  Sports wagering.  "Sports wagering" means a device or system established for 
the acceptance of wagers on a sports event by any system or method of wagering, 
including but not limited to online sports wagering, except that "sports wagering" does 
not include pari-mutuel betting authorized under chapter 11, advance deposit wagering or 
a fantasy contest as defined in section 1101, subsection 4.
42-C.  Sports wagering operator.  "Sports wagering operator" means a person or a 
federally recognized Indian tribe that is licensed under section 1081 to operate sports 
wagering or online sports wagering.
42-D.  Sports wagering lounge.   "Sports wagering lounge" means the physical 
location where a person may place a sports wager other than an online sports wager.
Sec. 7.  8 MRSA §1003, sub-§1, ¶K, as amended by PL 2015, c. 499, §4, is 
further amended to read:
K.  Ensure that public safety inspectors employed by the board assigned to enforce 
the provisions of this chapter at the site of a casino may, in the absence of a sworn 
law enforcement officer, detain any person who is suspected of violating any 
provision of this chapter.  Such detention must comply with federal and state laws 
including the provisions of Title 17-A, section 107; and
Sec. 8.  8 MRSA §1003, sub-§1, ¶L, as enacted by PL 2015, c. 499, §5, is 
amended to read:
L.  Regulate, supervise and exercise general control over the operation of advance 
deposit wagering in the State.; and
Sec. 9.  8 MRSA §1003, sub-§1, ¶M is enacted to read:
M.  Regulate, supervise and exercise general control over the operation of sports 
wagering in the State.
Sec. 10.  8 MRSA §1003, sub-§2, ¶H, as amended by PL 2013, c. 212, §8, is 
further amended to read:
H.  Pursuant to subchapter 5, cause the department to investigate all complaints made 
to the board regarding ownership, distribution or operation of slot machines or, table 
games or sports wagering and all violations of this chapter or rules adopted under this 
chapter;
Sec. 11.  8 MRSA §1003, sub-§2, ¶P, as enacted by PL 2003, c. 687, Pt. A, §5 
and affected by Pt. B, §11, is amended to read:
P.  Collect all funds and taxes due to the State under sections 1018 and, 1036, 1081 
and 1085;
Sec. 12.  8 MRSA §1003, sub-§2, ¶Q, as amended by IB 2009, c. 2, §20, is 
further amended to read:
Q.   Certify monthly to the department a full and complete statement of all slot 
machine and, table game and sports wagering revenue, credits disbursed by licensees, 
administrative expenses and the allocation of slot machine and, table game and sports 
wagering income for the preceding month;
Sec. 13.  8 MRSA §1003, sub-§2, ¶R, as amended by IB 2009, c. 2, §21, is 
further amended to read:
R.  Submit by March 15th an annual report to the Governor and the joint standing 
committee of the Legislature having jurisdiction over gambling affairs on slot 
machine and, table game and sports wagering revenue, credits disbursed by slot 
machine operators and, table game operators and sports wagering operators, 
administrative expenses and the allocation of slot machine and, table game and sports 
wagering income for the preceding year;
Sec. 14.  8 MRSA §1005, sub-§1, ¶¶A and B, as amended by IB 2009, c. 2, §27, 
are further amended to read:
A.  Without notice, and at any time during regular hours of operation, enter the 
offices, facilities or other places of business of slot machine operators, casino 
operators, sports wagering operators, slot machine distributors, table game 
distributors and gambling services vendors to conduct administrative inspections to 
determine compliance with this chapter and rules adopted under this chapter; and
B.  Request the director to disable any slot machine or, table game or sports wagering 
operation if the department has a reasonable and articulable suspicion that the slot 
machine or, table game or sports wagering operation is being operated in violation of 
this chapter or of any rule adopted under this chapter.
Sec. 15.  8 MRSA §1006, sub-§8, as enacted by PL 2013, c. 212, §12, is amended 
to read:
8.  Voluntary exclusion.  Notwithstanding Title 1, section 401, records and 
information obtained or developed by the board as part of establishing and administering 
the list of persons who voluntarily request exclusion from any slot machine facility or 
casino under section 1003, subsection 3, paragraph I or who voluntarily request exclusion 
from any sports wagering lounge or voluntarily request to be prohibited from placing an 
online sports wager under section 1083, subsection 8 are confidential except that 
information may be released with the written consent of the person requesting voluntary 
exclusion and as is necessary to inform the slot machine facility or, casino licensee or 
sports wagering operator and enforce the voluntary exclusion.  Statistical data and general 
information that do not allow for a person on the voluntary exclusion list to be personally 
identified are not confidential.
Sec. 16.  8 MRSA §1015, as amended by PL 2013, c. 212, §§13 and 14, is further 
amended to read:
§1015.  Licensing of employees of slot machine, casino and sports wagering 
operators, slot machine and table game distributors and gambling services 
vendors
1.  License required.  A person may not be employed by a slot machine operator, 
casino operator, sports wagering operator, slot machine distributor, table game distributor 
or gambling services vendor unless the person is licensed to do so by the board, 
temporarily authorized as an employee pursuant to subsection 4 or granted a waiver by 
the board pursuant to subsection 3.
2.  Requirements for license.  The board may issue an employee license to an 
employee of a slot machine operator, casino operator, sports wagering operator, slot 
machine distributor, table game distributor or gambling services vendor if the applicant 
meets the qualifications set out in sections 1016 and 1019.
3.  Requirements for waiver.  Upon application by a slot machine operator, casino 
operator, sports wagering operator, slot machine distributor, table game distributor or 
gambling services vendor, the board may waive the employee license requirement under 
this section if the slot machine operator, casino operator, sports wagering operator, slot 
machine distributor, table game distributor or gambling services vendor demonstrates to 
the board's satisfaction that the public interest is not served by the requirement of the 
employee license.
4.  Employees authorized temporarily.  A new employee of a slot machine 
operator, casino operator, sports wagering operator, slot machine distributor, table game 
distributor or gambling services vendor is temporarily authorized to work in a position 
requiring an employee license pursuant to subsection 1 as of the date a completed 
employee license application is received by the board.  A completed employee license 
application is composed of:
A.  The completed form for application for an employee license approved by the 
board;
B.  Two complete sets of the fingerprints of the applicant;
C.  The fee for processing the employee license application as prescribed by the 
board; and
D.  The results of the background investigation conducted by the employer.
If the department determines after receiving an employee license application under this 
subsection that the application is incomplete, it may suspend the new employee's 
temporary authorization until such time as the new employee files a completed 
application.
Temporary authorization is not available for renewal of employee licenses.
5.  Termination of temporary authorization.  Unless suspended or revoked, a 
temporary authorization under subsection 4 continues until the granting or denial of the 
new employee's employee license application in accordance with sections 1016, 1017 and 
1019 and any applicable rules adopted by the board.  An applicant whose temporary 
authorization is suspended or revoked is not eligible for employment in a position 
requiring an employee license pursuant to subsection 1 until such time as the suspension 
or revocation is withdrawn or an employee license is issued.
Sec. 17.  8 MRSA §1016, sub-§1, as amended by PL 2013, c. 212, §§15 to 18, is 
further amended to read:
1.  Minimum qualifications.  Notwithstanding Title 5, chapter 341, and in addition 
to any requirements imposed by rules adopted by the board, a person or a federally 
recognized Indian tribe must satisfy the following qualifications to be a slot machine 
operator, a casino operator, a sports wagering operator, a slot machine distributor, a table 
game distributor, a gambling services vendor or an employee of these entities:
A.  The person or the federally recognized Indian tribe has completed the application 
form, promptly and truthfully complied with all information requests of the board and 
complied with any applicable rules adopted by the board;
B.  The person or the federally recognized Indian tribe has sufficient financial assets 
and responsibility to meet any financial obligations imposed by this chapter and, if 
applying for a slot machine operator license, casino operator license, sports wagering 
operator license, slot machine operator license renewal or, casino operator license 
renewal or sports wagering operator license renewal, has sufficient financial assets 
and responsibility to continue operation of a commercial track or, casino or off-track 
betting facility as required by this chapter;
C.  The person or the federally recognized Indian tribe has not knowingly or 
recklessly made a false statement of material fact in applying for a license under this 
chapter or any gambling-related license in any other jurisdiction;
D.  In the case of a person applying to be a slot machine operator or casino operator, 
the person has sufficient knowledge and experience in the business of operating slot 
machines or casinos to effectively operate the slot machine facilities or casino to 
which the license application relates in accordance with this chapter and the rules and 
standards adopted under this chapter; and
D-1.  In the case of a person or a federally recognized Indian tribe applying to be a 
sports wagering operator, the person or the federally recognized Indian tribe 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 and 
standards adopted under this chapter; and
F.  If the applicant is a business organization, the applicant is organized in this State, 
although that business organization may be a wholly or partially owned subsidiary of 
an entity that is organized pursuant to the laws of another state or a foreign country.
Except as provided by section 1013, subsection 3 and, section 1013-A, subsection 3 and 
section 1081, subsection 2, a person or a federally recognized Indian tribe may not hold 
more than one class of license under this chapter unless the 2nd license is an employee 
license under section 1015.
Sec. 18.  8 MRSA §1041, sub-§2, as amended by IB 2009, c. 2, §48, is further 
amended to read:
2.  Location.  A slot machine operator or, casino operator or sports wagering operator 
shall maintain all records required by this chapter or by rules adopted under this chapter 
at the operator's primary business office within this State or on the premises where the 
slot machine or table game is operated or where the sports wagering lounge is located.  A 
federally recognized Indian tribe licensed under section 1081, subsection 3 to conduct 
online sports wagering shall maintain these records at a location specified by the board by 
rule.  A slot machine distributor or table game distributor shall maintain these records at 
the distributor's primary business office within this State.  The primary business office 
must be designated by the license holder in the license application.  All records must be 
open to inspection and audit by the board or its designee and a license holder may not 
refuse the board or its designee the right to inspect or audit the records.  Refusal to permit 
inspection or audit of the records constitutes grounds for revocation or suspension of the 
license or registration.
Sec. 19.  8 MRSA §1042, as enacted by PL 2003, c. 687, Pt. A, §5 and affected by 
Pt. B, §11, is amended to read:
§1042.  Access to premises, equipment and records
1.  Inspection.  A person or a federally recognized Indian tribe holding a license or 
registration under this chapter shall permit the board, the department or a designee of the 
board or the department unrestricted access, during regular business hours, including 
access to locked or secured areas, to inspect any gambling facility and any equipment, 
prizes, records or items and materials used or to be used in the operation of any slot 
machine or sports wagering or associated equipment owned, distributed or operated by 
that person or that federally recognized Indian tribe.  A person or a federally recognized 
Indian tribe holding a license or registration under this chapter shall consent in writing to 
the examination of all the licensee's books and records related to operations licensed 
under this chapter and shall authorize all 3rd parties in possession or in control of those 
books and records to allow the board or the board's designee to examine such books and 
records as the board determines necessary.
2.  Monitoring.  The board or the department shall monitor the use, operation, 
distribution and servicing of slot machines and equipment or devices used to operate 
sports wagering through on-site observation and other means at any time during the 
operation of any license for the purpose of certifying the revenue thereof, receiving 
complaints from the public relating to the conduct of licensees, examining records of 
revenues and procedures, enforcing the provisions of this chapter and the rules adopted 
pursuant to this chapter and conducting periodic reviews of licenses for the purpose of 
evaluating current or suggested provisions of this chapter and the rules adopted pursuant 
to this chapter.
Sec. 20.  8 MRSA §1054, sub-§§8 and 9, as enacted by PL 2003, c. 687, Pt. A, 
§5 and affected by Pt. B, §11, are amended to read:
8.  Failure to deposit funds.  Violates section 1036, subsection 2; or
9.  Failure to grant access to premises, equipment and records.  Violates section 
1042.;
Sec. 21.  8 MRSA §1054, sub-§§10 and 11 are enacted to read:
10.  Operation of sports wagering without a license.  Violates section 1081, 
subsection 1; or
11.  Underage sports wagering.  Violates section 1082, subsection 1.
Sec. 22.  8 MRSA §1066, as enacted by PL 2013, c. 255, §2, is amended to read:
§1066.  Interception of slot machine, table game and sports wagering winnings to 
pay child support debt
1.  Definitions.  As used in this section, unless the context otherwise indicates, the 
following terms have the following meanings.
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.  "Registry operator" means the department or an entity with whom the department 
enters into a contract to maintain the registry pursuant to subsection 3.
D.  "Winner" means a slot machine customer or, a table game customer or a sports 
wagering customer to whom cash is returned as winnings.
2.  Interception.  A licensee shall intercept slot machine and, table game and sports 
wagering winnings to pay child support debt in accordance with this section.
3.  Registry.  The department shall create and maintain, or shall contract with a 
private entity to create and maintain, a secure, electronically accessible registry 
containing information regarding individuals with outstanding child support debt.  The 
department shall regularly enter into the registry information including:
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.
4.  Electronic access to information; procedures.  A licensee shall electronically 
access the registry in accordance with this subsection.
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.
5.  Lien against winnings.  If the registry operator informs a licensee pursuant to this 
section that a winner is listed in the registry, the department has a valid lien upon and 
claim of lien against the winnings in the amount of the winner's outstanding child support 
debt.
6.  Withholding of winnings.  The licensee shall withhold from any winnings an 
amount equal to the amount of the lien created under subsection 5 and shall provide a 
notice of withholding to the winner.  Within 7 days after withholding an amount pursuant 
to this subsection, the licensee shall transmit the amount withheld to the department 
together with a report of the name, address and social security number of the winner, the 
account number or identifier assigned to the debt, the amount withheld, the date of 
withholding and the name and location of the licensee.
7.  Licensee costs.  Notwithstanding subsection 6, the licensee may retain $10 from 
an amount withheld pursuant to this section to cover the cost of the licensee's compliance 
with this section.
8.  Administrative hearing.  A winner from whom an amount was withheld pursuant 
to this section has the right, within 15 days of receipt of the notice of withholding, to 
request from the department an administrative hearing.  The hearing is limited to 
questions of whether the debt is liquidated and whether any postliquidation events have 
affected the winner's liability.  The administrative hearing decision constitutes final 
agency action.
9.  Authorization to provide information.  Notwithstanding any other provision of 
law to the contrary, the licensee may provide to the department or registry operator any 
information necessary to effectuate the intent of this section.  The department or registry 
operator may provide to the licensee any information necessary to effectuate the intent of 
this section.
10.  Confidentiality of information.  The information obtained by the department or 
registry operator from a licensee pursuant to this section and the information obtained by 
the licensee from the department or registry operator pursuant to this section are 
confidential and may be used only for the purposes set forth in this section.  An employee 
or prior employee of the department, the registry operator or a licensee who knowingly or 
intentionally discloses any such information commits a civil violation for which a fine not 
to exceed $1,000 may be adjudged.
11.  Effect of compliance; noncompliance.  A licensee, the department and the 
registry operator are not liable for any action taken in good faith to comply with this 
section.  A licensee who fails to make a good faith effort to obtain information from the 
registry operator or who fails to withhold and transmit the amount of the lien created 
under subsection 5 is liable to the department for the greater of $500 and the amount the 
person was required to withhold and transmit to the department under this section, 
together with costs, interest and reasonable attorney's fees.
12.  Biennial review.  The department shall report to the Legislature and the 
Governor on or before January 31, 2015 and biennially thereafter on:
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.
Sec. 23.  8 MRSA c. 31, sub-c. 8 is enacted to read:
SUBCHAPTER 8
SPORTS WAGERING OPERATION; ALLOCATION OF FUNDS
§1081.  License to conduct sports wagering; employee licensing
1.  License required.  A person may not conduct sports wagering, including online 
sports wagering, in the State unless the person has been issued a license to operate sports 
wagering by the board.
2.  Sports wagering operator license.  The board may issue a license to operate 
sports wagering, including online sports wagering, to a person or a federally recognized 
Indian tribe that demonstrates compliance with the qualifications set forth in sections 
1016 and 1019 and the criteria adopted by the board through rulemaking regarding the 
licensing of sports wagering operators and that is:
A.  Licensed to operate a casino in the State under this chapter;
B.  Licensed to operate a commercial track in the State under chapter 11; or
C.  Licensed to operate an off-track betting facility under chapter 11.
To maintain eligibility for a license under this subsection, the person or the federally 
recognized Indian tribe must at all times maintain the person's or tribe's casino operator 
license, commercial track license or off-track betting facility license without lapse, 
suspension or revocation.
3.  License to conduct online sports wagering.  The board may issue a license to 
conduct only online sports wagering to a federally recognized Indian tribe in the State 
that does not meet the criteria in subsection 2, paragraph A, B or C and that demonstrates 
compliance with the qualifications set forth in section 1019 and the criteria adopted by 
the board through rulemaking.
4.  Application.  The application for a license under subsection 2 or 3 must be on a 
form provided by the board and must comply with section 1017.
5.  Fees.  The initial application fee for a license under subsection 2 or 3 is $30,000.  
The annual renewal fee for a license under subsection 2 or 3 is $15,000.
6.  Term of license; renewal.  A license issued by the board under subsection 2 or 3 
is effective for one year, unless revoked or surrendered pursuant to subchapter 5.  Upon 
proper application and payment of the required fee and in accordance with rules adopted 
by the board, the board may renew a license for an additional year.
7.  Not transferable.  A license issued under this section is not transferable or 
assignable.
8.  Licensing of employees.  Employees of a person or a federally recognized Indian 
tribe licensed under subsection 2 and employees of a federally recognized Indian tribe 
licensed under subsection 3 must be licensed according to section 1015.
9.  Rulemaking.  The board shall adopt rules to implement this section.  Rules 
initially adopted as required by this section are major substantive rules as described in 
Title 5, chapter 375, subchapter 2-A.  Rules adopted after the first year of operation of 
sports wagering conducted by a sports wagering operator are routine technical rules as 
described in Title 5, chapter 375, subchapter 2-A.
§1082.  Persons prohibited from making sports wagers
A sports wagering operator may not accept a sports wager from the following 
persons:
1.  Persons under 21 years of age.  A person who has not attained 21 years of age;
2.  Operators and employees.  The sports wagering operator or a director, officer or 
employee of the sports wagering operator or a relative living in the same household as 
any of those persons;
3.  Sports event participants.  A person who participates in the sports event 
including as an athlete, a coach, a referee or an umpire;
4.  Sports event interested parties.  If the sports wager involves a sports event that 
is overseen by a sports governing body or a league:
A.  A person who is associated with the sports governing body or the league or any of 
the body's or league's member teams as an athlete, a coach, a referee, an umpire, a 
league official or a director;
B.  The sports governing body or the league or any of the body's or league's member 
teams; 
C.  An employee of the sports governing body or the league or any of the body's or 
league's member teams; or
D.  The legal or beneficial owner of 10% or more of the sports governing body or the 
league or any of the body's or league's member teams;
5.  Persons with confidential information.  A person with confidential information 
that could affect the outcome of the sports event upon which the wager is made.  As used 
in this subsection, "confidential information" means information related to the sports 
event obtained as a result of or by virtue of a person's employment;
6.  Prohibited persons.  A person on a list established by the board under section 
1083, subsection 8 of persons who are to be excluded or removed from a sports wagering 
lounge and prohibited from placing online sports wagers;
7.  Unidentified persons.  A person whose identity has not been verified by the 
sports wagering operator; and
8.  Third parties.  A person making a wager on behalf of or as the agent or custodian 
of another person.
§1083.  Conduct of sports wagering; rulemaking
The board shall adopt rules relating to the conduct of sports wagering, including but 
not limited to rules governing the following:
1.  Fraud or deception.  The prevention of any fraud or deception upon a person 
placing a sports wager;
2.  Comprehensive house rules; approval.  Comprehensive house rules to be 
adopted by a sports wagering operator governing sports wagering transactions that 
specify the amounts to be paid on winning wagers and the effect of sports event schedule 
changes and that identify the maximum wager amount, prohibited sports events and 
persons prohibited from making sports wagers.  The rules must, at a minimum, require a 
sports wagering operator to submit the house rules to the board for approval prior to 
commencing operations and to conspicuously display the house rules in the sports 
wagering lounge and on any publicly accessible website or mobile application through 
which the operator accepts online sports wagers;
3.  Conduct of sports wagering.  The methods of operation of sports wagering, 
including but not limited to the types of wagers permitted, the maximum wager that may 
be accepted from any one person on a single sports event, ensuring that wagers are not 
accepted on prohibited sports events and informing customers of state and federal tax 
obligations on certain winnings;
4.  Sports wagering lounge.  The location, size, design, hours of operation and 
minimum security standards for sports wagering lounges.  The rules must, at a minimum, 
require that a sports wagering lounge be located only on the premises of the casino, 
commercial track or off-track betting facility operated by the sports wagering operator;
5.  Identification of customers.  Methods for verifying the identity and age of a 
person who places a wager in a sports wagering lounge and for verifying that the person 
making a wager is not prohibited from making a wager under section 1082.  The rules 
must, at a minimum, require that a sports wagering operator who discovers that a person 
prohibited from making a wager under section 1082 has made a wager shall immediately 
refund the wager and any entry fee made by the person;
6.  Fiscal controls, records and reports to the board.  Minimum procedures for the 
exercise of effective fiscal control of the sports wagering operation, including provisions 
for the safeguarding of assets and revenues, the recording of cash and evidence of 
indebtedness and the maintenance of reliable records, accounts and reports of 
transactions, operations and events, including reports to the board;
7.  Audits.  Procedures for the annual audit of the books and records of sports 
wagering operators; and
8.  List of prohibited persons.  Establishment of a list of persons who are to be 
excluded or removed from a sports wagering lounge and prohibited from placing an 
online sports wager, including those persons who voluntarily request that their names be 
included on the list of prohibited persons.  These rules must:
A.  Define the standards for exclusion and removal and include standards regarding 
persons who are career or professional offenders, as defined by rules of the board or 
whose presence in a sports wagering lounge or whose placement of online sports 
wagers, in the opinion of the board, would be inimical to the interest of the State; and
B.  Provide that, before making a payout of winnings in 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, after any interception of winnings required by law to pay child support debt 
or other obligations, shall intercept money or anything of value that an excluded 
person is seeking to redeem as a result of wagers made by the person after that person 
has been excluded.  The rules must offer the excluded person the right to an 
administrative hearing with reasonable notice to contest the interception of winnings.  
Winnings intercepted must be remitted by the licensee to the board or its designee for 
deposit in an Other Special Revenue Funds account within the office of substance 
abuse within the Department of Health and Human Services to address gambling 
addiction.
Rules initially adopted as required by this section are major substantive rules as 
described in Title 5, chapter 375, subchapter 2-A.  Rules adopted after the first year of 
operation of sports wagering conducted by a sports wagering operator are routine 
technical rules as described in Title 5, chapter 375, subchapter 2-A.
§1084.  Operation of online sports wagering; rulemaking
The board shall adopt rules relating to the operation of online sports wagering, 
including but not limited to rules governing the following:
1.  Operation of a sports wagering lounge.  Prohibiting a sports wagering operator 
licensed under section 1081, subsection 2 from conducting online sports wagering unless 
the sports wagering operator has established and commenced operation of a sports 
wagering lounge and requiring the online sports wagering operator to maintain operation 
of the sports wagering lounge to maintain eligibility for conducting online sports 
wagering.  The rules may not require a federally recognized Indian tribe licensed under 
section 1081, subsection 3 to establish or maintain a sports wagering lounge;
2.  Conduct of sports wagering.  The methods of conducting online sports wagering, 
including but not limited to the number of publicly accessible websites and mobile 
applications a single online sports wagering operator may employ, the types of wagers 
permitted, the maximum wager that may be accepted from any one person on a single 
sports event, ensuring that wagers are not accepted on prohibited sports events and 
informing customers of state and federal tax obligations on certain winnings;
3.  Servers and other equipment.  Requirements for servers and other equipment 
used to conduct online sports wagering.  The rules must, at a minimum, require that the 
servers or other equipment used by the online sports wagering operator meet minimum 
security standards and be located in the State;
4.  Identification of customers.  Required methods for verifying the identity and age 
of a person who places an online sports wager and for verifying that the person making a 
wager is not prohibited from making a wager under section 1082.  The rules must, at a 
minimum, require that an online sports wagering operator who discovers that a person 
prohibited from making a wager under section 1082 has made a wager shall immediately 
refund the wager and any entry fee made by the person; and
5.  Location of transaction.  Prohibiting the acceptance of any wager by an online 
sports wagering operator unless the online sports wagering operator verifies that the 
wager is initiated, received and otherwise made in this State and does not constitute 
unlawful Internet gambling as defined in the Unlawful Internet Gambling Enforcement 
Act of 2006, 31 United States Code, Section 5362(10).
Rules initially adopted as required by this section are major substantive rules as 
described in Title 5, chapter 375, subchapter 2-A.  Rules adopted after the first year that 
online sports wagering is conducted by an online sports wagering operator are routine 
technical rules as described in Title 5, chapter 375, subchapter 2-A.
§1085.  Allocation of sports wagering funds
1.  Distribution of sports wagering income.  A sports wagering operator shall 
collect and distribute 25% of net sports wagering income from sports wagering conducted 
by the sports wagering operator to the board for distribution by the board as follows:
A.  One percent of net sports wagering income must be forwarded by the board to the 
Treasurer of State for deposit in the General Fund for the administrative expenses of 
the board; and
B.  Twenty-four percent of net sports wagering income must be forwarded by the 
board to the Treasurer of State, who shall credit the money to the Department of 
Education to be used for essential programs and services for kindergarten to grade 12 
under Title 20-A, chapter 606-B.
2.  Failure to deposit funds.  A sports wagering operator who knowingly or 
intentionally fails to comply with this section commits a Class C crime.  In addition to 
any other sanction available by law, the sports wagering operator's licenses to conduct 
sports wagering may be revoked by the board, the sports wagering equipment operated by 
that sports wagering operator may be disabled and the sports wagering proceeds and 
associated equipment may be confiscated by the board and are subject to forfeiture under 
Title 17-A, section 959 or 960.
3.  Late payments.  The board 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.
§1086.  Applicability of other laws
Unless expressly provided in this chapter, the provisions of Title 17, chapter 62 and 
Title 17-A, chapter 39 do not apply to the conduct of sports wagering operated in 
accordance with this chapter and the rules adopted pursuant to this subchapter.
SUMMARY
This bill authorizes the Department of Public Safety, Gambling Control Board to 
issue licenses to conduct sports wagering, including online sports wagering, to persons or 
federally recognized Indian tribes licensed to operate casinos, commercial tracks or off-
track betting facilities.  The board may issue licenses to operate only online sports 
wagering to federally recognized Indian tribes that are not licensed to operate casinos, 
commercial tracks or off-track betting facilities.
Under the bill, "sports wagering" is defined as any device or system established for 
the acceptance of wagers on a sports event by any system or method of wagering.  Sports 
wagering operators may accept wagers on all professional or amateur sports events except 
high school sports events, other events in which a majority of the participants are minors 
and competitive video game events.  Sports wagering operators may not accept wagers 
from persons whose identity they cannot verify; persons under 21 years of age; the 
director, officers and employees of the sports wagering operator and relatives living in the 
same household as those persons; athletes, coaches, referees and umpires participating in 
the sports event; other interested persons if the sports event upon which the wager is 
placed is overseen by the person's league or sports governing body; persons with 
confidential information that could affect the outcome of the sports event; persons who 
are on a list of prohibited persons established by the board, including persons who 
voluntarily request to be prohibited from making sports wagers; and persons who make 
wagers on behalf of another person.
The bill requires the board to adopt rules regulating the conduct of sports wagering, 
including rules restricting the types of wagers permitted, establishing the maximum 
wagers that may be accepted from any one person on a single sports event, regulating the 
design and minimum security standards for in-person sports wagering lounges located 
within casino, commercial track or off-track betting facilities and establishing record 
keeping, reporting and auditing requirements.  The bill also requires the board to adopt 
rules further regulating the conduct of online sports wagering, including rules regulating 
the servers and other equipment used to conduct sports wagering online, establishing 
methods for verifying the identity and age of persons placing wagers online and 
prohibiting the acceptance of wagers from outside the State as required by federal law.
The bill further requires that 1% of net sports wagering income be used for 
administrative expenses of the board and 24% of net sports wagering income be credited 
by the Treasurer of State to the Department of Education for essential programs and 
services for kindergarten to grade 12.
Finally, the bill provides that the laws governing unlawful gambling and games of 
chance do not apply to sports wagering operators that comply with the laws governing 
sports wagering.