2023 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.