NY Rac, Pari-Mut Wag & Breeding L § 1367-A (2021)
2021 New York Laws PML - Racing, Pari-Mutuel Wagering and Breeding Law Article 13 - Destination Resort Gaming Title 8 - Miscellaneous Provisions 1367-A - Mobile Sports Wagering.

§  1367-a.  Mobile  sports wagering. 1. (a) Except as provided in this subdivision, the terms in this section shall have the same  meanings  as such  terms  are  defined in subdivision one of section thirteen hundred sixty-seven of this title.  (b) "Mobile sports wagering operator" for purposes  of  this  section, means  a  mobile sports wagering operator as defined by section thirteen hundred sixty-seven of this title.   2. (a) No entity shall administer, manage, or otherwise make available a mobile sports wagering platform to persons located in New  York  state unless licensed with the commission pursuant to this section.  (b) Licenses issued by the commission shall remain in effect for up to ten years. The commission shall establish a process for renewal.  (c)  The  commission  shall  publish  a list of all casinos and mobile sports wagering licensees licensed to offer mobile  sports  wagering  in New  York state pursuant to this section on the commission's website for public use.  (d) All sports  wagers  through  electronic  communication  placed  in accordance  with  this  section  are considered placed or otherwise made when and where received by the mobile sports wagering licensee  on  such mobile  sports  wagering  licensee's  server  or other equipment used to accept mobile sports wagering at a licensed gaming facility,  regardless of  the authorized sports bettor's physical location within the state at the time the sports wager is  placed;  and  provided  further  that  the intermediate routing of electronic data in connection with mobile sports wagering  shall not determine the location or locations in which a wager is initiated, received or otherwise made.   3. As a condition of licensure the commission shall require that  each platform  provider  authorized  to  conduct mobile sports wagering pay a one-time fee of twenty-five million dollars.  Such  fee  shall  be  paid within  thirty  days  of  gaming  commission  approval  prior to license issuance and deposited into the state lottery fund for education aid.   4. (a) As a  condition  of  licensure,  each  mobile  sports  wagering operator shall implement the following measures:  (i) limit each authorized sports bettor to one active account on their platform,  and  prevent  anyone  they know, or should have known to be a prohibited sports bettor from maintaining accounts or  participating  in any sports wagering offered by such mobile sports wagering operator;  (ii) adopt appropriate safeguards to ensure, to a reasonable degree of certainty,  as  defined  by  rules  and  regulations  promulgated by the commission, that authorized sports bettors are physically located within the state when engaging in mobile sports wagering;  (iii) prohibit  minors  from  participating  in  any  sports  wagering pursuant to rules and regulations promulgated by the commission;  (iv)  when  referencing  the  chances  or  likelihood  of  winning  in advertisements or upon placement of  a  sports  wager,  make  clear  and conspicuous  statements that are not inaccurate or misleading concerning the chances of winning and the number of winners;  (v) permit any  authorized  sports  bettor  to  permanently  close  an account registered to such bettor, on any and all platforms supported by such mobile sports wagering operator, at any time and for any reason;  (vi) offer introductory procedures for authorized sports bettors, that shall  be  prominently  displayed on the main page of such mobile sports wagering operator platform, that explain sports wagering;  (vii) implement measures to protect the privacy and online security of authorized sports bettors and their accounts;  (viii) offer all authorized  sports  bettors  access  to  his  or  her account history and account details;  (ix)  ensure  authorized  sports  bettors'  funds  are  protected upon deposit and segregated from the operating funds of  such  mobile  sports wagering  operator  and  otherwise  protected from corporate insolvency, financial risk, or criminal or civil actions against such mobile  sports wagering operator;  (x) list on each website, in a prominent place, information concerning assistance  for compulsive play in New York state, including a toll-free number directing  callers  to  reputable  resources  containing  further information, which shall be free of charge;  (xi)  ensure  no sports wagering shall be based on a prohibited sports event;  (xii) permit account holders to establish self-exclusion gaming limits on a daily, weekly, and monthly basis that enable the account holder  to identify  the  maximum  amount  of  money  an account holder may deposit during such period of time;  (xiii) when an account holder's lifetime deposits exceed two  thousand five  hundred dollars, the mobile sports wagering operator shall prevent any wagering until the patron immediately acknowledges that the  account holder  has  met  the  deposit  threshold  and  may  elect  to establish responsible gaming limits or close the account, and the  account  holder has  received  disclosures  from  the  mobile  sports  wagering operator concerning problem gambling resources. Once a patron has  reached  their lifetime  deposit,  such  patron shall annually make the acknowledgement required by this paragraph;  (xiv) maintain  a  publicly  accessible  internet  page  dedicated  to responsible  play,  a  link  to  which  must appear on the mobile sports wagering operator's website and in any mobile application or  electronic platform  on  which a bettor may place wagers. The responsible play page shall include: a statement of  the  mobile  sports  wagering  operator's policy  and  commitment to responsible gaming; information regarding, or links to information regarding, the risks associated with  gambling  and the  potential signs of problem gaming; the availability of self-imposed responsible gaming limits; a link to a problem gaming webpage maintained by the office  of  addiction  services  and  supports;  and  such  other information or statements as the commission may require by rule; and  (xv)  submit  annually  a problem gaming plan that was approved by the commission in consultation with the office  of  addiction  services  and supports   that   includes:   the   objectives  of  and  timetables  for implementing the plan; identification of  the  persons  responsible  for implementing  and maintaining the plan; procedures for identifying users with  suspected  or  known  problem  gaming  behavior;  procedures   for providing  information to users concerning problem gaming identification and resources; procedures to prevent gaming by minors and  self-excluded persons; and such other problem gaming information as the commission may require by rule.  (b)  No  entity  shall  directly  or  indirectly operate an unlicensed sports wagering platform in the state  of  New  York,  or  advertise  or promote  such unlicensed platform to persons located in the state of New York.  (c) Mobile sports  wagering  licensees  shall  not  offer  any  sports wagering based on any prohibited sports event.  (d)  Mobile sports wagering licensees shall not permit sports wagering by anyone they know, or should have known, to  be  a  prohibited  sports bettor.  (e)  Advertisements for contests and prizes offered by a mobile sports wagering operator shall not target prohibited sports bettors, minors, or self-excluded persons.  (f) Mobile sports wagering operators  shall  develop  and  prominently display  procedures  on  the  main  page  of such mobile sports wagering operator's platform for the filing  of  a  complaint  by  an  authorized sports  bettor  against such mobile sports wagering operator. An initial response  shall be given by such mobile sports wagering operator to such bettor  filing  the  complaint  within  forty-eight  hours.  A  complete response  shall be given by such mobile sports wagering operator to such bettor filing the complaint within  ten  business  days.  An  authorized sports  bettor  may  file  a  complaint  alleging  a  violation  of  the provisions of this article with the commission.  (g) Mobile sports wagering licensees shall  maintain  records  of  all accounts  belonging to authorized sports bettors and retain such records of all transactions in such  accounts  for  the  preceding  five  years; provided  however  that  such  records belonging to an authorized sports bettor shall be readily accessible and downloadable,  without  cost,  by such authorized sports bettor.  (h)  The  server  or  other equipment which is used by a mobile sports wagering licensee to accept mobile sports wagering shall  be  physically located  in  the  licensed  gaming  facility  and  be  limited to sports wagering related activities in accordance with  regulations  promulgated by the commission.  (i) All mobile sports wagering initiated in this state shall be deemed to  take place at the licensed gaming facility where the server or other equipment used by a mobile sports wagering  licensee  to  accept  mobile sports wagering is located, regardless of the authorized sports bettor's physical location within this state.  (j)  All  mobile sports wagering shall be conducted in compliance with this section and section thirteen hundred sixty-seven of this title.   5. (a) Subject to regulations promulgated by the commission, a  mobile sports  wagering operator may allow for authorized bettors to sign up to create and fund accounts on its mobile sports wagering platform.  (b) Authorized sports bettors may deposit and withdraw  funds  to  and from  their  account  on  a  mobile  sports  wagering  operator  through electronically recognized payment methods, including but not limited  to credit  cards  and  debit  cards, or via any other means approved by the commission; provided however, that in the case of credit card  payments, each authorized sports bettor's account per operator shall be limited to a  credit  card spending amount of two thousand five hundred dollars per year; and provided further, that this  limitation  shall  not  apply  to other payment methods or to debit cards. No operator shall be authorized to provide a line of credit to any authorized sports bettor.   6.  The  commission,  in  conjunction  with  the  office  of addiction services and supports, shall annually cause a report to be prepared  and distributed  to the governor and the legislature on the impact of mobile sports wagering on problem gamblers  in  New  York,  including,  to  the extent    practicable,   an   analysis   of   demographics   which   are disproportionately  impacted  by  the  problem   gambling.   The   costs associated  with the preparation and distribution of the report shall be borne by mobile sports wagering licensees and the  commission  shall  be authorized  to assess a fee against mobile sports wagering licensees for these purposes. The commission, or  in  the  case  that  an  independent integrity  monitor  has  been  established,  such  independent integrity monitor shall also report biannually to the governor and the legislature on the effectiveness of the statutory and regulatory controls  in  place to ensure the integrity of mobile sports wagering operations.   7.  A  platform  provider may be licensed by the commission only after having been selected for potential licensure by the commission following a competitive bidding process in which  the  commission  shall  issue  a  request  for  applications  no  later  than  July  first,  two  thousand twenty-one; provided  however,  that  the  deadline  for  submission  of applications  shall  be  no  later  than thirty days after the date upon which the commission issues such request for applications.  (a)  The  commission  shall  select  platform providers based upon the criteria set forth in this section no later than one hundred fifty days, to the extent practicable, after the final application is received.  The commission may disqualify applicants from licensure consideration if the applicant  or  the mobile sports wagering operator or operators included in their bid  have  not  satisfied  provision  of  required  application information,  fail  to  meet  any  platform  provider  and mobile sports wagering operator  eligibility  criteria  established  pursuant  to  the request  for  applications,  or are deemed by the commission to have not satisfied the criteria pursuant to subdivision five of this section.  (a-1) The commission shall publish on its website  the  criteria  that will  be used to score applications based upon the criteria set forth in paragraph (c) of this subdivision; provided however, that  such  scoring methodology  shall  award  additional  points  to  an applicant that has entered into an agreement that includes revenue sharing related to  such mobile  sports  wagering  with  compacted  Native  American  tribe(s) or nation(s).  (b) The  commission  shall  determine  the  form  of  application  for bidders, which shall require, at a minimum, the following information:  (i)  Different  scenarios  for  the  number  of platform providers and number of mobile sports wagering operators licensed by  the  commission. For  each  scenario,  this  shall  include  estimates  of  mobile sports wagering gross gaming revenue and the  bases  for  such  estimates,  the percentage  of  gross  revenue from mobile sports wagering the applicant will pay to the state for the privilege of licensure if chosen, and  the percentage  of  overall  mobile  sports  wagering  gross  gaming revenue estimated to be generated;  (ii) The number of mobile sports wagering operators the applicant will host on its  mobile  sports  wagering  platform,  if  the  applicant  is licensed as a platform provider;  (iii) A description of how the applicant will use technology to ensure all  bettors  are physically within approved locations within the state, that any wager is accepted through equipment  physically  located  at  a licensed  gaming  facility  and that necessary safeguards against abuses and addictions are in place;  (iv)  The  applicant  and  any  associated  operators  such  applicant proposes in its application possess the qualifications, capabilities and experience to provide a mobile sports wagering platform;  (v)  A  list  of  all  jurisdictions  where  the  applicant and parent company, and mobile sports wagering operator  or  operators  and  parent company  or  companies  have  been  licensed  or otherwise authorized by contract or otherwise to conduct sports wagering operations. This  shall include  the  applicant  and  its  mobile  sports  wagering  operator or operators' experience in such other markets;  (vi) Player acquisition model, advertising and affiliate programs  and marketing  budget, including details on how the applicant and its mobile sports wagering  operator  or  operators  will  convert  customers  from wagering through illegal channels to wagering legally in the state;  (vii)  Timeframe  to  implement  mobile  sports wagering from award of license;  (viii) The applicant and mobile sports wagering operator or operators' capacity to bring authorized sports bettors  into  their  mobile  sports wagering platform; and  (ix)   Integrity   monitoring  and  reporting  including  any  current affiliations related to integrity monitoring.  (c)  In  determining  whether  an  applicant  shall  be eligible for a platform provider  license,  the  commission  shall  evaluate  how  each applicant  proposes  to  maximize sustainable, long-term revenue for the state by evaluating the following factors:  (i) A market analysis detailing the benefits of the applicant's bid as it relates to maximizing revenue to the state;  (ii)  Estimates  of  mobile  sports  wagering  gross  gaming   revenue generated by the applicant under different scenarios;  (iii) The percentage of mobile sports wagering gross gaming revenue to be paid to the state under different scenarios;  (iv) The potential market share of the mobile sports wagering operator or operators under different scenarios;  (v)  Advertising  and  promotional plans of the mobile sports wagering operator or operators;  (vi) Past experience and expertise in the market of the applicant  and any  mobile sports wagering operator or operators which are part of such applicant's application;  (vii) The  applicant's  capacity  to  rapidly  and  effectively  bring authorized sports bettors into its platform;  (viii) A demonstration of how and to what degree the applicant fosters racial, ethnic, and gender diversity in its workforce;  (ix)  Timeframe  to  implement  mobile  sports  wagering from award of license;  (x) Any other factors that could impact the integrity,  sustainability or safety of the mobile sports wagering system; and  (xi) Any other factors that could impact revenue to the state.  (d)  The  commission  shall award a license to each of the two highest scoring platform providers that submit applications;  provided  however, that  such awards shall require that both winning platform providers pay the same tax rate; and  provided  further,  that  the  commission  shall require  that no less than four mobile sports wagering operators will be operating in the state. The commission may award additional licenses  if it  determines  that such additional awards are in the best interests of the state; provided however,  that  any  additional  platform  providers awarded  licenses  must  also  agree  to  pay the same tax rate as those platform  providers  that  were  initially  awarded  licenses   by   the commission.  The  award of any such license shall require each applicant to remit the highest percentage of  gross  gaming  revenue  from  mobile sports  wagering  contained  in  an  applicant's  bid  selected  by  the commission considered for licensure.  A  qualified  applicant  shall  be afforded  the  ability to revise its bid in any such manner in order for such bid to meet the percentage of  gross  gaming  revenue  from  mobile sports  wagering  as  required  by  the  commission  for  license award, provided that the bid does not incorporate any additional operators  not already  included  in  the  bid;  and  provided  however  that it is not determined by the commission that the revised bid no  longer  meets  all requirements  and  criteria established pursuant to this section and the request for applications. Any applicant that does not revise its bid  to meet  the percentage of gross gaming revenue from mobile sports wagering required by the commission for license award  shall  not  be  awarded  a license.