An Act To Establish the Exclusive Right of the Federally Recognized Indian Tribes in the State To Conduct All Sports Betting in Maine
Maine Legislature, Session 129, LD 1571
Committee: Veterans and Legal Affairs
Sponsors: COLLINGS, JACKSON, HICKMAN, HUBBELL, NEWELL, CARPENTER, MOORE, WOODSOME
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. 1571
H.P. 1133
House of Representatives, April 16, 2019
An Act To Establish the Exclusive Right of the Federally Recognized 
Indian Tribes in the State To Conduct All Sports Betting in Maine
Reference to the Committee on Veterans and Legal Affairs suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative COLLINGS of Portland.
Cosponsored by President JACKSON of Aroostook and
Representatives: HICKMAN of Winthrop, HUBBELL of Bar Harbor, McCREIGHT of 
Harpswell, McDONALD of Stonington, NEWELL of the Passamaquoddy Tribe, Senators: 
CARPENTER of Aroostook, MOORE of Washington, WOODSOME of York.
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, online sports pool wagering, high-stakes beano, beano, games of 
chance or slot machine or table game operation.
Sec. 2.  8 MRSA §1001, sub-§29-D is enacted to read:
29-D.  Net online sports pool income.  "Net online sports pool income" means the 
amount of wagers placed through the online sports pool after payment of money from 
winning wagers to winning bettors.
Sec. 3.  8 MRSA §1001, sub-§§30-A and 30-D are enacted to read:
30-A.  Online sports pool.  "Online sports pool" means a sports pool in which 
wagers on sports events are made via electronic device and transmitted to the online 
sports pool operator by any means that involves the use, at least in part, of the Internet.
30-B.  Online sports pool operator.  "Online sports pool operator" means a federally 
recognized Indian tribe licensed under section 1081, subsection 2 that operates an online 
sports pool or an online sports pool vendor that contracts with a federally recognized 
Indian tribe to operate an online sports pool in accordance with section 1081, subsection 
2.
30-C.  Online sports pool services.  "Online sports pool services" means goods and 
services, including but not limited to servers, computer programs and staffing services, 
that are used by an online sports pool vendor to operate an online sports pool on behalf of 
a federally recognized Indian tribe licensed under section 1081, subsection 2.
30-D.  Online sports pool vendor. "Online sports pool vendor" means a person that 
is licensed under section 1081, subsection 3 to provide online sports pool services.
Sec. 4.  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 or another sport or athletic event in which a majority of the participants 
have not attained 18 years of age.
Sec. 5.  8 MRSA §1001, sub-§§42-A and 42-B 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 pool.  "Sports pool" 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 an online sports pool, except that "sports pool" does not include pari-
mutuel betting authorized under chapter 11, advance deposit wagering or a fantasy 
contest as defined in section 1101, subsection 4.
Sec. 6.  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. 7.  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. 8.  8 MRSA §1003, sub-§1, ¶M is enacted to read:
M.  Regulate, supervise and exercise general control over the operation of online 
sports pools in the State.
Sec. 9.  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 online sports pools and all violations of this chapter or rules adopted under 
this chapter;
Sec. 10.  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. 11.  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 online sports pool revenue, credits disbursed by 
licensees, administrative expenses and the allocation of slot machine and, table game 
and online sports pool income for the preceding month;
Sec. 12.  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 online sports pool revenue, credits disbursed by slot 
machine operators and, table game operators and online sports pool operators, 
administrative expenses and the allocation of slot machine and, table game and online 
sports pool income for the preceding year;
Sec. 13.  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, online sports pool 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 online sports 
pool if the department has a reasonable and articulable suspicion that the slot machine 
or, table game or online sports pool is being operated in violation of this chapter or of 
any rule adopted under this chapter.
Sec. 14.  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 to be 
prohibited from placing a wager with an online sports pool under section 1083, 
subsection 9 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 online sports pool 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. 15.  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 online sports pool 
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, online sports pool 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, online sports pool 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, online sports pool 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, online sports pool 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, online sports pool 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. 16.  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, an online sports pool operator, an online sports pool vendor, 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, slot machine 
operator license renewal or casino operator license renewal, has sufficient financial 
assets and responsibility to continue operation of a commercial track or casino;
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 an 
online sports pool vendor or an online sports pool operator, the person or the 
federally recognized Indian tribe has sufficient knowledge and experience in the 
business of operating sports pools to effectively operate the sports pool 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, a 
person may not hold more than one class of license under this chapter unless the 2nd 
license is an employee license under section 1015.
Sec. 17.  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 online sports pool 
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 at a location specified by the board 
by rule for the maintenance of records of an online sports pool operator.  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. 18.  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 online sports pool 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 an 
online sports pool 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. 19.  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. 20.  8 MRSA §1054, sub-§§10 and 11 are enacted to read:
10.  Operation of sports pool without a license.  Violates section 1081, subsection 
1; or
11.  Underage sports pool wagering.  Violates section 1082, subsection 1.
Sec. 21.  8 MRSA §1066, as enacted by PL 2013, c. 255, §2, is amended to read:
§1066.  Interception of slot machine, table game and online sports pool 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 an online 
sports pool customer to whom cash is returned as winnings.
2.  Interception.  A licensee shall intercept slot machine and, table game and online 
sports pool 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. 22.  8 MRSA c. 31, sub-c. 8 is enacted to read:
SUBCHAPTER 8
ONLINE SPORTS POOL OPERATION; ALLOCATION OF FUNDS
§1081.  License to operate sports pools; employee licensing
1.  License required.  Except as provided in this section, a person may not operate a 
sports pool, including an online sports pool, in the State.
2.  Online sports pool operator license.  The board may issue a license to operate an 
online sports pool to 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.  A license issued under this subsection is not transferable or 
assignable, except that a federally recognized Indian tribe licensed under this subsection 
may authorize an online sports pool vendor to operate the online sports pool on behalf of 
the tribe through a written contract that has been approved by the board.
3.  Online sports pool vendor license.  The board may issue a license to provide 
online sports pool services to a person that seeks to enter into a contract with a federally 
recognized Indian tribe to be an online sports pool vendor and that demonstrates 
compliance with the qualifications set forth in sections 1016 and 1019 and the criteria 
adopted by the board through rulemaking.  A license under this subsection is not 
transferable or assignable.
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 fees for licenses under this section are as follows.
A.  The initial application fee for a license under subsection 2 is $100,000.  The 
annual renewal fee for a license under subsection 2 is $50,000.
B.  The initial application fee for a license under subsection 3 is $2,000.  The annual 
renewal fee for a license under subsection 3 is $2,000.
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.
7.  Licensing of employees.  Employees of a federally recognized Indian tribe 
licensed under subsection 2 and of a person licensed under subsection 3 must be licensed 
according to section 1015.
8.  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 an 
online sports pool conducted by an online sports pool operator are routine technical rules 
as described in Title 5, chapter 375, subchapter 2-A.
§1082.  Persons prohibited from making online sports pool wagers
An online sports pool operator may not accept a wager from or pay winnings from a 
sports pool wager to 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 online sports pool operator or a director, officer 
or employee of the online sports pool 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 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 owner of any legal or beneficial interest in the sports governing body or the 
league or any of the body's or the 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 9 of persons who voluntarily request to be prohibited from placing 
wagers with an online sports pool;
7.  Unidentified persons.  A person whose identity has not been verified by the 
online sports pool operator; and
8.  Third parties.  A person making a wager on behalf of or as the agent or custodian 
of another person.
§1083.  Online sports pool operation; rulemaking
The board shall adopt rules relating to the conduct of online sports pools, 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 wager with an online sports pool;
2.  Comprehensive house rules; approval.  Comprehensive house rules to be 
adopted by an online sports pool 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 wagers with the online sports pool under section 1082.  
The rules must, at a minimum, require an online sports pool operator to submit the house 
rules to the board for approval prior to commencing operations and to conspicuously 
display the house rules on any publicly accessible website or mobile application through 
which the operator conducts an online sports pool;
3.  Conduct of online sports pool.  The methods of operation of online sports pools, 
including but not limited to the number of publicly accessible websites and mobile 
applications a single online sports pool 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;
4.  Servers and other equipment.  Requirements for servers and other equipment 
used to operate the online sports pool.  The rules must, at a minimum, require that the 
servers or other equipment used by the online sports pool operator meet minimum 
security standards and be located in the State;
5.  Identification of customers.  Required methods for verifying the identity and age 
of a person who places a wager with the online sports pool 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 pool operator that 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.  Location of transaction.  Prohibiting the acceptance of any wager by an online 
sports pool operator unless the online sports pool 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 federal Unlawful Internet Gambling Enforcement Act 
of 2006, 31 United States Code, Section 5362(10);
7.  Fiscal controls, records and reports to the board.  Minimum procedures for the 
exercise of effective fiscal control of the online sports pool, 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;
8.  Audits.  Procedures for the annual audit of the books and records of online sports 
pool operators; and
9.  List of prohibited persons.  Establishment of a list of persons who voluntarily 
request that their names be included on a list of persons prohibited from placing a wager 
with an online sports pool.
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 an online sports pool conducted by an online sports pool operator are routine 
technical rules as described in Title 5, chapter 375, subchapter 2-A.
§1084.  Online sports pool vendor; rulemaking
The board shall adopt rules governing online sports pool vendors, including but not 
limited to rules governing the following:
1.  License required prior to contract.  Prohibiting a person from entering into a 
contract to operate an online sports pool on behalf of a federally recognized Indian tribe 
licensed under section 1081, subsection 2 unless the person has previously obtained an 
online sports pool vendor license under section 1081, subsection 3; and
2.  Contract requirements.  Minimum requirements for the contract between an 
online sports pool vendor licensed under section 1081, subsection 3 and a federally 
recognized Indian tribe licensed under section 1081, subsection 2 on whose behalf the 
online sports pool vendor operates an online sports pool, including but not limited to a 
requirement that the contract be approved by the board prior to operation of the online 
sports pool.
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 an online sports pool conducted by an online sports pool operator are routine 
technical rules as described in Title 5, chapter 375, subchapter 2-A.
§1085.  Allocation of online sports pool income
1.  Distribution of online sports pool income.  An online sports pool operator shall 
collect and distribute 11% of net online sports pool income from the online sports pool 
operated by or on behalf of the online sports pool operator to the board for distribution by 
the board as follows:
A.  One percent of net online sports pool 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.  Ten percent of net online sports pool 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.  An online sports pool operator that knowingly or 
intentionally fails to comply with this section commits a Class C crime.  In addition to 
any other sanction available by law, the online sports pool operator's license or online 
sports pool vendor's license may be revoked by the board, the online sports pool operated 
by that online sports pool operator may be disabled and the online sports pool's 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 online sports pools 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 federally recognized Indian tribes to operate online sports pools.  A tribe 
that is licensed by the board may enter into a written contract, approved by the board, 
with a licensed online sports pool vendor to operate the online sports pool on behalf of 
the tribe.  Under the bill, an online sports pool is described as a device or system 
established for the acceptance of wagers on a sports event by any system or method of 
wagering in which the wagers are made via electronic device and transmitted by any 
means that involves the use, at least in part, of the Internet.
Online sports pool operators may accept wagers on all professional or amateur sports 
events except high school sports events or other events in which a majority of the 
participants are minors.  Online sports pool 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 online sports pool 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 voluntarily 
request to be prohibited from making online sports wagers; and persons who make 
wagers on behalf of another person.
The bill requires the board to adopt rules regulating the operation of online sports 
pools, 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, 
imposing requirements for servers and other equipment used to operate the online sports 
pool, 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 online sports pool income be used for 
administrative expenses of the board and that 10% of net online sports pool income be 
distributed to the Treasurer of State to be credited 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 online sports pool operators that comply with the laws governing 
online sports pools.