HB 3232 — Regulation of Sports Wagering

(22) (24) “Wager” means a sum of money or thing of value risked on an uncertain occurrence.

(23) (25) “West Virginia Lottery sports wagering” or “sports wagering” means the business of accepting wagers on sporting events, and other events, the individual performance statistics of athletes in a sporting event or other events, or a combination of any of the same by any system or method of wagering approved by the commission including, but not limited to, mobile applications and other digital platforms that utilize communications technology to accept wagers originating within this state.

The term includes, but is not limited to, exchange wagering, parlays, over-under, moneyline, pools, and straight bets., against the spread, totals, futures, propositions (game and player), free predictions, subscription predictions, sold predictions, and predictions made through an affiliation or other partnership.

The term does not include:

(A) Pari-mutuel betting on the outcome of horse or dog races authorized by §19-23-12a and §19-23-12d of this code;

4 CS for HB 3232 (B) Lottery games of the West Virginia State Lottery authorized by §29-22-1 et seq.

of this code;

(C) Racetrack video lottery authorized by §29-22A-1 et seq.

of this code;

(D) Limited video lottery authorized by §29-22B-1 et seq.

of this code;

(E) Racetrack table games authorized by §29-22C-1 et seq.

of this code;

(F) Video lottery and table games authorized by §29-25-1 et seq.

of this code;

and (G) Daily Fantasy Sports (DFS).

(24) (26) “West Virginia Lottery sports wagering license” means authorization granted under this article by the commission to a gaming facility that is already licensed under §29-22A-1 et seq.

or §29-25-1 et seq.

of this code, which permits the gaming facility as an agent of the commission to operate West Virginia Lottery sports wagering in one or more designated areas or in one or more buildings owned by the licensed gaming facility on the grounds where video lottery is conducted by the licensee or through any other authorized platform developed by the gaming facility.

This term is synonymous with “operator’s license”.

Regulation of fantasy gaming competitions and sports wagering through independent evaluations.

(a) Criteria and— definitions.Independent evaluators, at a minimum, must meet the following criteria:

–(1) IndependentThe evaluators,audit atprocess ashall minimum,be mustconstructed, meetexecuted, theand followingmaintained criteria:by no less than one in-house, active CPA.

(1)The Auditaudit process mustshall betest constructed,for executed,all andof maintainedthe byfollowing nokey lessassertions: than one in- house, active CPA.

Auditcompleteness, processexistence, mustaccuracy, testvaluation, forpresentation, alland keyoccurrence; assertions:

completeness,(2) existence,The accuracy,results valuation,or presentation,any occurrence,other anddata presentation;attribute of the sports wagering content shall not have the ability to be adjusted, duplicated, or altered in any way by experts or influencers, mobile sports wagering licensees, or content partners after the related sports wagering content event begins;

(2)(3) InabilityThe forcore thebusiness results or any other data attribute of the sportsindependent bettingevaluator contentshall to be adjusted, duplicated, altered, in anyway by the expertsperformance orevaluation, influencers,performance mobileratings, sportsand wageringaudit licensees,practice and/orof content partners after the related sports bettingwagering contentcontent; event begins;

(3)(4) NoThe conflictsindependent evaluator shall existhave forbeen thosean runningestablished thebusiness independentactively evaluator,executing includingcore thebusiness followingfor criteria:no less than one year;

(A)and No5 employeeCS orfor founderHB may3232 also(5) beThe engagedindependent inevaluator sportsshall bettinghave contentno orexisting aconflicts, sportsincluding bettingthe contentfollowing platformcriteria: – through direct relationship (such as working for, creating, selling or otherwise), investment, advising;

and(A) (B)No Mayemployee notor havefounder costof perthe acquisitionindependent and/orevaluator, revenueor sharingthe affiliateindependent relationshipsevaluator as an entity, may also be engaged in sports wagering or linksengaged towith a sports bookwagering operatorcontent and/orplatform peer-to-peerthrough bettinga platforms.direct relationship (such as working for a management services provider or its content partners to create sports wagering content, sell sports wagering content, or otherwise), through investment, or through advising;

(C)(B) ThisNo doesemployee notor limitfounder aof sportsthe bookindependent operatorevaluator, and/oror sportsthe bettingindependent contentevaluator platform’sas marketingan ofentity, theirmay performancehave bycost theper independentacquisition evaluator,or providedrevenue thosesharing marketingaffiliate materialsrelationships 1with Intra HBmanagement 2023R3054services displayprovider; accurate attributes.

(4)and Core(C) businessNo mustemployee beor infounder performanceof evaluation/ratingsthe andindependent auditevaluator, practiceor ofthe sportsindependent evaluator as an entity, may have links to a management services provider or peer-to-peer betting content.platforms.

(5)(6) MustThis havesubsection beendoes activelynot executinglimit corean businessindependent andevaluator befrom anmarketing establisheda businessmanagement forservices noprovider’s lessperformance thanor onea year.sports wagering content platform’s performance Provided, That:

(b)Those Sportsmarketing bettingmaterials contentdisplay isaccurate classifiedattributes. as predictions of sporting events outcomes in total or in part, including but not limited to, moneylines, against the spread, totals, futures, propositions (game and player), parlays, or otherwise.

This(b) couldEnactment. include free predictions, subscription/sold predictions, and/or affiliate or other partnership.

(c)— ExpertsThe orState Influencers,Lottery alsoCommission referredshall toaccredit ascertain sharps,independent touts,evaluators handicappers,that ormeet otherwise,the arecriteria definedof assubsection those(a) whoof createthis sportssection bettingto contentevaluate forsports mobilewagering content, specifically sports wagering licensees,content from experts or influencers for theirmanagement ownservices benefit,providers and/orand their content partners.

(d)The ContentState partnersLottery areCommission definedshall ashave platformssix ormonths individualsto whoidentify createand sportsaccredit bettingindependent contentevaluators. for sports wagering licensees through a contracted work, affiliate or otherwise.

(e)Once Enactment.identified, management services providers, experts or influencers, and content partners shall have three months to select an independent evaluator from the pool of independent evaluators that the State Lottery Commission identified and accredited.

-(c) The Westindependent Virginiaevaluators Stateshall Lotteryreport Commissiontheir shallfindings accreditto certainthe IndependentState EvaluatorsLottery toCommission evaluateannually, sportsor bettingforthwith content,upon specificallya fromfinding expertsof ora influencersfalse, formisrepresented, mobileor sportsinaccurate wageringmanagement licenseesservice andprovider’s theirperformance, or a content partners.platform’s performance.

The West Virginia State Lottery Commission shallmay have6 aCS three-monthfor timelineHB to3232 identifydetermine andthat accreditmaterial misrepresentations exist within the independent evaluators.evaluators’ reports and, at the Commission’s discretion, may require the management services provider, experts or influencers, or content providers to provide further explanation of the material misrepresentation or may require the management services provider, experts or influencers, or content providers to undertake corrective action to cure existing material misrepresentations.

Once(d) complete,If mobilethe wageringState licensees,Lottery expertsCommission determines, based on an independent evaluator’s report, that a management services provider, an expert or influencers,influencer, or a content provider is in violation of the provisions of this article, the State Lottery Commission may impose civil penalties on the management services provider, the expert or influencer, or the content provider pursuant to §29-22D-19 of this code, and the management services provider, the expert or influencer, or the content partnersprovider willmay havebe three-monthssubject to selectcriminal anpenalties independentpursuant evaluator.to §29-22D-20 and §29-22D-21 of this code.

Reporting(e) fromThe State Lottery Commission shall promulgate and implement rules to effectuate the independentprovisions evaluatorof this section and to facilitate the Westestablishment Virginiaof Statean Lotteryindependent Commissionevaluation shallprocess occurthat quarterly.is timely, effective, consistent among management services providers, and designed to avoid litigation and grievance.

The West Virginia State Lottery Commission mayhas determine material misrepresentations from the independentauthority, evaluatorspursuant reportsto warrant§29A-1-1 explanationet orseq. further action.

Those are to be settled between the mobile wager licensee, experts or influencers, content providers and the§29A-3-1 Westet Virginiaseq. State Lottery Commission and the Attorney General’s Office.

Thoseof licenseesthis whocode, doto meetpromulgate the criteria for independent evaluator services – based on sports betting content, experts or influencers,otherwise and/orenact contentany partnerslegislative, 2interpretive, Intrand HBprocedural 2023R3054rules definitionthe –Commission willconsiders havenecessary theirfor independent evaluator fees supplemented by the stateimplementation, ofadministration, Westand Virginiaenforcement until such time they become financial capable to do so, as decided by the state of Westthis Virginia.section.

At the State Lottery Commission’s discretion, the Commission may implement an independent evaluation fee to be paid by management services providers and may promulgate emergency rules to oversee independent evaluation fees pursuant to §29A-3-15 of this code.