HB 7331 — AN ACT CONCERNING SPORTS WAGERING IN THE STATE.
Last action — REF. BY HOUSE TO COMMITTEE ON Finance, Revenue and Bonding
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✓Introduced
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2In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill died with 2019 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
696 added · 1034 removed696 line(s) added, 1034 removed.
General Assembly SubstituteRaised Bill No.
7331 January Session, 2019 ANLCO ACTNo. CONCERNING SPORTS WAGERING IN THE STATE.
5506 Referred to Committee on PUBLIC SAFETY AND SECURITY Introduced by:
(PS) AN ACT CONCERNING SPORTS WAGERING IN THE STATE.
(NEW) (Effective July 1, 2019) (a) As used in this sectionsection, and sections 2 to 6, inclusive, of this act, unless the context otherwise requires:
(4) "Electronic sports wagering platform" or "platform" means the combination of hardware, software and data networks used by a sports wagering operator or the Connecticut Lottery Corporation established in section 12-802 of the general statutes, as amended by this act, to manage, administer, offer or control sports wagering over the Internet, including through an Internet web site or a mobile device;
(5)LCO "LicensedNo. sports wagering operator" means an operator licensed by the commissioner to conduct sports wagering in person or sports wagering on a platform;
(6)5506 1 of 21 Raised Bill No.7331 (5) "Mashantucket Pequot memorandum of understanding" means LCOthe \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331-R01memorandum of 31understanding HB.docxentered Substituteinto Billby No.and between the state and the Mashantucket Pequot Tribe on January 13, 1993, as amended from time to time;
7331(6) "Mashantucket Pequot procedures" means the memorandumFinal ofMashantucket understandingPequot enteredGaming intoProcedures prescribed by andthe betweenSecretary of the stateUnited andStates Department of the MashantucketInterior Pequotpursuant Tribeto onSection January2710(d)(7)(B)(vii) 13,of 1993,Title 25 of the United States Code and published in 56 Federal Register 24996 (May 31, 1991), as amended from time to time;
(7) "Mashantucket"Minor" Pequot procedures" means thean Finalindividual Mashantucketwho Pequotis Gamingunder Procedurestwenty-one prescribedyears by the Secretary of theage; United States Department of the Interior pursuant to 25 USC 2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 1991), as amended from time to time;
(8) "Minor""Mohegan compact" means anthe individualTribal-State whoCompact isentered underinto twenty-oneby yearsand between the state and the Mohegan Tribe of age;Indians of Connecticut on May 17, 1994, as amended from time to time;
(9) "Mohegan compact"memorandum of understanding" means the Tribal-Statememorandum Compactof understanding entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as amended from time to time;
(10) "Mohegan"Sports memorandumbettor" of understanding" means thean memorandumindividual ofwho understandingis enterednot intoa byminor and betweenis physically present in the state andwhen theplacing Mohegana Tribesports ofwager Indianswith ofa sports wagering operator, the Connecticut onLottery MayCorporation 17,or 1994,a aslottery amendedsales fromagent timelicensed pursuant to time;this section;
(11) "Operator"Sporting eligibleevent" tomeans conduct(A) sportsany wageringsporting inor person"athletic meansevent aat personwhich two or businessmore organizationpersons operatingparticipate theand off-trackreceive bettingcompensation system,in aexcess limitedof liabilityactual companyexpenses operatingfor asuch casinoparticipation gamingin facilitysuch thatsporting offersor sportsathletic wageringevent, andor the(B) Connecticutany Lotterysporting Corporation;or athletic event sponsored by an intercollegiate athletic program of an institution of higher education.
(12)"Sporting "Operatorevent" eligibledoes tonot conductinclude sportshorse wageringracing onor a platform" means a limited liability company operating a casino gaming facility that offers sports wagering, the Connecticut Lottery Corporation and any othersporting individual or businessathletic organizationevent applyingsponsored toby the commissioner for a licenseminor pursuantleague toor sectionhigh 4school; of this act;
(13)LCO "SportsNo. bettor" means an individual who is not a minor and is physically present in this state when placing a sports wager with a licensed sports wagering operator;
LCO5506 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-073322 of 3121 R01-HB.docxRaised }Bill SubstituteNo.7331 Bill(12) No."Sports governing body" means the organization that prescribes final rules and enforces codes of conduct with respect to a sporting event and participants in the sporting event;
7331(13) (14)"Sports "Sportingwagering" event" means (A)risking or accepting any sportingmoney, credit, deposit or athleticother eventthing atof whichvalue twofor gain contingent in whole or morein personspart participate(A) andby receiveany compensationsystem inor excessmethod of actualwagering, expensesincluding, forbut suchnot participationlimited to, in suchperson sporting or athleticover event,the Internet through an Internet web site or a mobile device, and (B) anybased on (i) a sporting event or athletica eventportion sponsoredor byportions anof intercollegiatea athleticsporting programevent, or (ii) the individual performance statistics of an institutionathlete or athletes in a sporting event or a combination of highersporting education.events.
"Sporting"Sports event"wagering" does not include horse racing, any sporting or athletic event that involves a university or college of the statepayment system of public higher education, as described in section 10a-1 of the general statutes, or an independententry institutionfee ofto higherplay education,fantasy contests, as defined in section 10a-17312-578aa of the general statutes, oras anyamended sporting or athletic event sponsored by athis minoract; league or high school;
(15)(14) "Sports governingwagering body"gross revenue" means the organizationamount equal to the total amount of all wagers placed on sporting events not excluded from sports wagering that prescribesa finalsports ruleswagering andoperator enforcescollects codesfrom all sports bettors, less the total amount of conductall withsums respectpaid out as winnings to sports bettors, except that the cash equivalent value of any merchandise or thing of value awarded as a sportingprize eventshall andnot participantsbe included in the sportingsums event;paid out as winnings;
(16)and (15) "Sports wagering"wagering meansoperator" risking or accepting"operator" anymeans money,a credit,person deposit or otherbusiness thingorganization ofoperating valuethe foroff-track gainbetting contingentsystem in whole or inlimited partliability oncompany (A)operating a sportingcasino eventgaming orfacility athat portionoffers orsports portionswagering ofeither ain sportingperson event,to orindividuals (B)at thesuch individualfacilities performanceor statisticsthrough of an athleteelectronic orsports athleteswagering inplatform aand sportingis eventlicensed orpursuant ato combinationthis ofsection. sporting events.
"Sports(b) wagering"The doesprovisions not include the payment of anthis entrysection feeshall tonot playbe fantasyeffective contests,unless asthe definedfollowing inconditions sectionhave 12-578aabeen ofmet: the general statutes;
(17)(1) "SportsOn wageringand inafter person"the meanseffective sportsdate wageringof usingthis anysection, systemthe orGovernor methodenters ofinto wageringnew requiringtribal-state acompacts sportswith bettorthe toMashantucket bePequot physicallyTribe presentand atthe aMohegan facilityTribe inof thisIndians state;of Connecticut pursuant to the federal Indian Gaming Regulatory Act, P.L.
(18)100-497, "Sports25 wageringUSC on2710(d)(3) aLCO platform"No. means sports wagering using any system or method of wagering over the Internet, including through an Internet web site or a mobile device, that does not require a sports bettor to be physically present at a facility in this state that conducts sports wagering in person;
(19)5506 "Sports3 wageringof gross21 revenue"Raised meansBill theNo.7331 amountconcerning equal to the totalauthorization amount of allsports wagerswagering. placed on sporting events not excluded LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07333 of 31 R01-HB.docx } Substitute Bill No.
7331Any fromsuch sportstribal-state wageringcompact thatshall: a licensed sports wagering operator collects from all sports bettors, less the total amount of all sums paid out as winnings to sports bettors, except that the cash equivalent value of any merchandise or thing of value awarded as a prize shall not be included in the sums paid out as winnings;
and(A) (20)Allow "Sportseach wageringtribe vendor"to meansoffer asports personwagering oron businessIndian organizationlands, that(B) developsprovide orthat maintainsthe anauthorization electronicof sports wagering platformin onthis behalfstate ofdoes not relieve each tribe from the tribe's obligation to contribute a licensedpercentage operatorof eligiblethe gross operating revenues of video facsimile games to conductthe state as provided in the Mashantucket Pequot memorandum of understanding and the Mohegan memorandum of understanding, as the case may be, and (C) provide that the authorization of sports wagering in this state does not terminate the moratoria on athe platform.operation of video facsimile games by the tribes pursuant to section 15(a) of the Mashantucket Pequot procedures and section 15(a) of the Mohegan compact.
Sec.(2) The new tribal-state compacts are approved or deemed approved by the Secretary of the United States Department of the Interior pursuant to the federal Indian Gaming Regulatory Act, P.L.
2.
(NEW) (Effective July 1, 2019) (a) The provisions of this section, sections 1 and 3 to 6, inclusive, and 15 and 20 of this act, and sections 12-561, 12-577, 12-578f, 12-801, 12-806, 12-810, 12-811, 12-812, 12-816, 17a-713 and 53-278a of the general statutes, as amended by this act, shall not be effective unless the following conditions have been met:
(1) On or after the effective date of this section, the Governor enters into new tribal-state compacts with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut pursuant to the federal Indian Gaming Regulatory Act, P.L.
100-497, 25 USC 2710(d)(3) concerning the authorization of sports wagering that:
(A) Allows each tribe to offer sports wagering on Indian lands and through an electronic sports wagering platform, (B) provides that the authorization of sports wagering in person and through an electronic sports wagering platform in this state does not relieve each tribe from the tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in the Mashantucket Pequot memorandum of understanding and the Mohegan memorandum of understanding, as the case may be, and (C) provides that the authorization of sports wagering in person and through an electronic sports wagering platform in this state does not terminate the moratoria on the operation of video facsimile games by the tribes pursuant to section 15(a) of the Mashantucket Pequot procedures and section 15(a) of the Mohegan compact.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07334 of 31 R01-HB.docx } Substitute Bill No.
7331 (2) The new tribal-state compacts are approved or deemed approved by the Secretary of the United States Department of the Interior pursuant to the federal Indian Gaming Regulatory Act, P.L.
(b)(c) (1) On and after Julythe 1,date 2019,this thesection commissionerbecomes mayeffective issuepursuant licenses to operatesubsection sports(b) wageringof inthis person,section, licensesthe Commissioner of Consumer Protection may issue a license to operate sports wagering, a sports wagering onvendor alicense platform,or anda sports wagering vendorlottery licenses,sales agent license, as applicable, in accordance with sections 3 and 4 of this act.section.
Sec.(2) No person or business organization operating the off-track betting system, limited liability company operating a casino gaming facility or the Connecticut Lottery Corporation may offer sports wagering unless such person, business organization, limited liability company or corporation has obtained a license to operate sports wagering issued by the commissioner pursuant to this section.
3.LCO No.
(NEW)5506 (Effective4 Julyof 1,21 2019)Raised (a)Bill No.7331 (3) No person or business organization may conductdevelop an electronic sports wagering inplatform personon inbehalf thisof statea unlesssports thewagering personoperator isor anthe operatorConnecticut eligibleLottery toCorporation conductunless sportssuch wageringperson inor personbusiness andorganization suchholds operatora hassports obtainedwagering avendor license fromissued by the commissioner pursuant to this section.
(b)(4) (1)No Eachlottery applicantsales foragent amay licenseoffer pursuantsports towagering thisat sectionsuch shallagent's submitplace of business unless such agent holds a completedsports applicationwagering onlottery formssales prescribedagent license issued by the commissioner.commissioner pursuant to this section.
Show all 331 changed lines (291 more)
(d) (1) Each applicant for a license pursuant to this section shall submit a completed application on forms prescribed by the commissioner.
(2) Each applicant for a license to operate sports wagering in person shall submit with its application a nonrefundable application fee of one hundred thousand dollars.
Except as provided in subsection (c)(e) of this section, each such license shall expire biennially on the anniversary date of the issuance of such license unless renewed in accordance with this section.
The nonrefundable application fee for LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07335 of 31 R01-HB.docx } Substitute Bill No.
7331 such renewal shall be one hundred thousand dollars.
Upon the issuance or renewal of a license, the licensee shall pay a licensing fee of seven hundred fifty thousand dollars to the commissioner.
The Connecticut Lottery Corporation shall be exempt from the application fee, renewal application fee and licensing fee for a license to operate sports wagering in person.
(3) If licensed pursuant to this section, (A) a person or business organization operating the off-track betting system may conduct sports wagering in person at any of the system facilities authorized for off- track betting under section 12-571a of the general statutes, and (B) the Connecticut Lottery Corporation may conduct sports wagering in person at no more than four high tier claim centers, as designated by the corporation.
(4) Applications for renewal of any such license shall be on such form as prescribed by the commissioner.
(c) (1) The commissioner shall, as soon as practicable after the receipt of a completed license or renewal application, grant or deny the license or renewal application.
Any holder of a license issued pursuant to this section who submits an application to renew such license prior to the expiration of such license may continue to perform the activities authorized by such license until the commissioner approves or denies such renewal application.
(2) Failure by any operator eligible to conduct sports wagering in person that holds a license pursuant to this section or any off-track betting facility or high tier claim center to comply with the requirements of this section and any regulations adopted pursuant to section 5 of this act shall constitute grounds for the commissioner to investigate such licensee or facility.
A violation of the provisions of section 4 of this act by an operator eligible to conduct sports wagering in person that is licensed pursuant to this section and section 4 of this act shall constitute grounds for an investigation.
After a hearing held in accordance with the provisions of chapter 54 of the general statutes, LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07336 of 31 R01-HB.docx } Substitute Bill No.
7331 the commissioner may suspend or revoke such license for good cause or suspend operations at such facility and impose a civil penalty of not more than two hundred fifty thousand dollars.
Any licensee whose license is suspended or revoked or who is fined, any facility whose sports wagering in person operations are suspended or that is fined, or any applicant aggrieved by the action of the commissioner concerning an application for a license or renewal application, may appeal in accordance with the provisions of chapter 54 of the general statutes.
Sec.
4.
(NEW) (Effective July 1, 2019) (a) No person may conduct sports wagering on a platform unless the person is an operator eligible to conduct sports wagering on a platform and such operator has obtained a license pursuant to this section.
(b) (1) A limited liability company operating a casino gaming facility that offers sports wagering and the Connecticut Lottery Corporation may submit an application for a license pursuant to this section.
Such application may require the submission of information listed in subdivisions (2) to (7), inclusive, of subsection (d) of this section, and any information the commissioner deems pertinent to the issuance of such license.
Such license shall expire biennially on the anniversary date of the issuance of such license unless renewed in accordance with subsection (j) of this section.
(2) Each applicant, except the Connecticut Lottery Corporation, shall submit to state and national criminal history records checks, conducted in accordance with section 29-17a of the general statutes, and submit a nonrefundable application fee of one hundred thousand dollars, before such license is issued.
Upon the issuance or renewal of a license, the licensee, except the Connecticut Lottery Corporation, shall pay a licensing fee of seven hundred fifty thousand dollars to the commissioner.
(c) Not later than sixty days after the conditions specified in section 2 of this act have been met, the commissioner shall develop and issue a request for proposals to qualify individuals or businesses for up to LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07337 of 31 R01-HB.docx } Substitute Bill No.
7331 three additional licenses to develop, manage, operate and maintain sports wagering on a platform in this state.
(d) The request for proposals shall require a responder to:
(1) Specify the amount the responder is willing to pay to obtain a license, which shall be no less than seven hundred fifty thousand dollars;
(2) Specify the number of employees and physical office locations the respondent has or will have in this state to ensure the proper operation of sports wagering on a platform;
(3) Describe the electronic sports wagering platform to be used;
(4) Describe the types and numbers of sporting events the responder will offer for sports wagering in this state;
(5) Provide a market analysis detailing the impact on and benefits to the state if the responder receives a license, including projected revenue to the state;
(6) Provide information and documentation to demonstrate that the responder has sufficient business ability, experience and financial stability to develop, manage, operate and maintain sports wagering on an electronic platform in this state;
(7) Describe the methods used to ensure the integrity of the platform and security controls to be used regarding the (A) sports data acquired to determine the results of sports wagers, (B) sports bettor data, and (C) sports bettor verification of age and presence in the state;
(8) Provide a responsible gaming plan associated with the operation of sports wagering;
and (9) Provide any other information the commissioner deems necessary to evaluate the qualifications of the responder.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331-8 of 31 R01-HB.docx } Substitute Bill No.
7331 (e) Each proposal shall be submitted not later than thirty days after the date the commissioner issues the request for proposals pursuant to subsection (c) of this section.
Each proposal shall be accompanied by a fee of one hundred thousand dollars, which shall be refundable if the responder is (1) not selected by the commissioner to receive a license, and (2) waives the right to challenge the commissioner's decision.
(f) The commissioner shall develop selection criteria and a scoring method to evaluate responses to the request for proposals.
Of those deemed qualified under the selection criteria and scoring method, the commissioner shall rank the responders based on the licensing fee each offered to pay in the responder's proposal, from highest to lowest.
The commissioner shall issue a license to the qualified responder who offered to pay the highest licensing fee.
The licensing fee paid by the first qualified responder accepting a license from the commissioner shall establish the licensing fee that the commissioner shall offer to additional qualified responders.
The commissioner shall issue additional licenses using the ranked list of qualified responders, issuing the first such license to the highest ranked responder and proceeding through the list, from highest to lowest, until the commissioner has issued not more than two additional licenses.
The commissioner shall not issue more than three licenses under this process and shall not issue a license for a fee of less than seven hundred fifty thousand dollars.
(g) A license issued pursuant to subsection (f) of this section shall expire two years after issuance, but the commissioner may extend a license for an additional two years upon renegotiation of the licensing fee established through the process described under subsection (f) of this section.
(h) The commissioner may initiate additional requests for proposals to issue licenses pursuant to this section if the commissioner does not issue three licenses pursuant to subsection (e) of this section or a license expires pursuant to subsection (g) of this section.
If the commissioner does not issue or renew a license to a limited liability LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07339 of 31 R01-HB.docx } Substitute Bill No.
7331 company operating a casino gaming facility that offers sports wagering or the Connecticut Lottery Corporation, the commissioner may initiate a request for proposal to issue a license in place of the license or licenses not issued or renewed.
(i) (1) No person or business organization may develop an electronic sports wagering platform on behalf of a licensed operator eligible to conduct sports wagering on a platform unless such person or business organization holds a sports wagering vendor license issued by the commissioner pursuant to this subsection.
(2) Each applicant for a sports wagering vendor license shall submit with its application a nonrefundable application fee of one hundred thousand dollars.
Except as provided in subsection (j) of this section, each such license shall expire biennially on the anniversary date of the issuance of such license unless renewed in accordance with this section.
Upon the issuance or renewal of a license, the licensee shall pay a licensing fee of five hundred thousand dollars to the commissioner.
The Connecticut Lottery Corporation shall be exempt from the application fee, renewal application fee and licensing fee for a license to operate sports wagering.
(3) Each applicant for a sports wagering vendor license shall submit with its application a nonrefundable application fee of one hundred thousand dollars.
Except as provided in subsection (e) of this section, each such license shall expire biennially on the anniversary date of the issuance of such license unless renewed in accordance with this LCO No.
5506 5 of 21 Raised Bill No.7331 section.
The nonrefundable application fee for such renewal shall be one hundred thousand dollars.
(3)(4) ApplicationsExcept foras renewalprovided ofin anysubsection such(e) licenseof shallthis besection, oneach suchsports formwagering aslottery prescribedagent bylicense theshall commissioner.be renewed biennially.
(j)Upon (1)the Theissuance commissioneror shall,renewal asof soonsuch aslicense, practicable after the receiptlicensee ofshall pay a completedlicensing licensefee orof renewaltwo application,hundred grantfifty ordollars denyto the licensecommissioner. or renewal application.
(5) Applications for renewal of any such license shall be on such form as prescribed by the commissioner.
(e) (1) The commissioner shall, as soon as practicable after the receipt of a completed license or renewal application, grant or deny the license or renewal application.
(2) Failure by any operatorperson eligibleor tobusiness conductorganization, sportslimited wageringliability oncompany aor platformcorporation that holds a license pursuant to this section or any off-track betting facility to comply with the provisionsrequirements of this section and any regulations adopted pursuant to section 5 of this actsection shall constitute grounds for the commissioner to LCOinvestigate {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07310such licensee or facility and after a hearing held in accordance with the provisions of 31chapter R01-HB.docx54 }of Substitutethe Billgeneral No.statutes, suspend or revoke such license for good cause or suspend operations at such facility and impose a civil penalty of not more than two hundred fifty thousand dollars.
7331Any investigatelicensee suchwhose licensee.license is suspended or revoked or who is fined, any facility whose sports wagering operations are suspended or that is fined, or any applicant aggrieved by the action of the commissioner concerning an application for a license or renewal application, may appeal in accordance with the provisions of said chapter.
A(f) violation(1) ofIf thelicensed provisionsunder ofsubsection section(e) 3 of this actsection, bya an operator eligible to conduct sports wageringLCO onNo. a platform that is licensed pursuant to section 3 of this act and this section shall constitute grounds for an investigation.
After5506 a6 hearingof held21 inRaised accordanceBill withNo.7331 thewagering provisionsoperator ofor chapter 54 of the generalConnecticut statutes,Lottery theCorporation commissioner may suspendoffer orsports revokewagering suchthrough licensean forelectronic goodsports causewagering andplatform imposeto aindividuals civilphysically penaltylocated ofin notthis morestate thanwhen twoplacing hundreda fiftysports thousandwager. dollars.
AnySuch licenseeoperator whoseor licensecorporation ismay suspendedestablish orits revokedown platform or whomay iscontract finedwith ora anythird applicantparty aggrievedfor by the actiondevelopment of thea commissionerplatform concerningon anbehalf applicationof forthe aoperator license or renewalcorporation, application,provided maysuch appealthird inparty accordanceholds witha thesports provisionswagering ofvendor chapterlicense 54issued ofby the generalcommissioner statutes.pursuant to this section.
Sec.(2) At a minimum, each electronic sports wagering platform shall be developed to:
5.(A) Verify that an individual with a sports wagering account is twenty-one years of age or older and is located in the state;
(NEW)(B) (Effectiveestablish Julya 1,voluntary 2019)self-exclusion (a)process Eachto licensedallow sportsan wageringindividual operatorto shall:exclude himself or herself from placing sports wagers;
(C) establish a voluntary process to allow an individual to limit the amount of money such individual may use to place sports wagers;
(D) provide a mechanism to prevent an individual who (i) participates in the self- exclusion process from placing sports wagers, or (ii) limits the amount of money such individual may use to place sports wagers from exceeding such limits;
(E) permit an individual to permanently close his or her sports wagering account at any time and for any reason;
(F) prominently display introductory procedures for sports bettors on the main page of the platform that explain sports wagering;
(G) offer an individual access to his or her sports wagering account history and details;
(H) provide that any money in a sports wagering account belongs solely to the owner of the account and may be withdrawn by the owner at any time;
(I) provide a mechanism to prevent the unauthorized use of sports wagering accounts and maintain the security of wagering data, sport bettor's data and other confidential information;
(J) post a conspicuous link to responsible gambling information, as specified by the commissioner, on all sports wagering account web pages;
and (K) transmit real-time information regarding sports wagers placed on sporting events.
(3) Prior to placing wagers on an electronic sports wagering platform, a sports bettor shall establish a sports wagering account in LCO No.
5506 7 of 21 Raised Bill No.7331 person at the casino gaming facility, off-track betting facility, central office of the Connecticut Lottery Corporation or any high tier claim center so designated by the corporation, as the case may be, and present at least two forms of identification at the time of establishing the sports wagering account.
(g) Each sports wagering operator, the Connecticut Lottery Corporation and a lottery sales agent offering sports wagering shall:
(2) Allow any individual to exclude himself or herself from placing sports wagers or limit the amount of money such individual may use to place sports wagers with an operator, and,corporation onor andlottery aftersales theagent, dateand the operatoroperator, iscorporation or lottery sales agent that has been notified by such individual of such exclusion or limit,limit shall take reasonable steps to prevent such individual from placing sports wagers or exceeding such limit, as the case may be;
(3) Enter into an agreement with a provider of sporting event data that meets or exceeds the minimum qualifications as set forth in regulations adopted by the commissioner pursuant to subsection (i)(p) of this section;
(5) Maintain the security of wagering data, sportscustomer bettor data and other confidential information to prevent unauthorized access to and dissemination of such data and information;
and LCO(6) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07311Share ofrecords 31in R01-HB.docxreal }time, Substituteat Billthe No.account level and in pseudonymous form to the department with respect to sports wagers placed with such operator, corporation or lottery sales agent.
7331(h) (6)(1) ShareNo recordsindividual inwho realis time,a atlicensed thesports accountwagering leveloperator andor insports pseudonymouswagering form,vendor, toan theofficer, departmentdirector, withowner respector toemployee of a sports wagerswagering placedoperator withor suchsports operator.wagering vendor, and no family LCO No.
(b)5506 (1)8 No individual who is a licensed sports wagering operator or sports wagering vendor, an officer, director, owner or employee of a21 sportsRaised wageringBill operatorNo.7331 or sports wagering vendor, and no family member of such individual who resides in the same household as such individual, shall place any wager with a licensed sports wagering operator.operator, the Connecticut Lottery Corporation or any lottery sales agent.
In determining which individuals are prohibited from placing a wager under this subdivision, a licensed sports wagering operator and the Connecticut Lottery Corporation shall use publicly available information and any lists provided by the relevant sports governing body to the commissioner.Department of Consumer Protection.
(3) No individual with access to nonpublic, confidential information that could affect the outcome of a sporting event shall place any wager on such sporting event with any licensed sports wagering operator.operator, the Connecticut Lottery Corporation or any lottery sales agent.
(5) Each sports wagering operator, the Connecticut Lottery Corporation and each licensed sports wagering operatorlottery sales agent shall take reasonable steps to prevent the conduct prohibited under subdivisions (1) to (4), inclusive, of this subsection and shall immediately notify the commissioner if such operatoroperator, corporation or agent believes such conduct has occurred.
(6) A licensed sports wagering operatoroperator, andthe Connecticut Lottery Corporation, a licensedlottery sales agent and a sports wagering vendor licensee shall not disclose or sell any sports bettor's information.
LCO(7) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07312No ofprizes 31shall R01-HB.docxbe }paid Substituteto Billany No.individual who is restricted from placing sports wagers pursuant to this subsection.
7331Any (7)such Noprize prizes shall beLCO paidNo. to any individual who is restricted from placing sports wagers pursuant to this subsection.
Any5506 such9 prizeof shall21 Raised Bill No.7331 be deposited into the sports wagering account established in section 62 of this act.
(c)(i) ExceptA as provided in section 12-816 of the general statutes, as amended by this act, a tax is imposed on sports wagering gross revenue earned by a licensed sports wagering operator at the rate of tennine and eighty-nine- hundredths per cent.
The commissioner shall deposit the tax collected pursuant to this section in the sports wagering account established by section 6 of this act.
If any such tax is not paid when due, the commissioner shall impose a delinquency assessment upon the licensed sports wagering operator in the amount of ten per cent of such tax or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such tax for each month or fraction of a month from the date such tax is due to the date of payment.
(d)(j) The amount of unclaimed moneys, as determined by the Commissioner of Consumer Protection, held by a licensed sports wagering operator on account of outstanding and uncashed winning sports wagering tickets, shall be due and payable to the commissioner at the expiration of six months after the date of the sporting event during which such tickets were issued.
If any such unclaimed moneys LCOare {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07313not paid when due, the commissioner shall impose a delinquency assessment upon the sports wagering operator in the amount of 31ten R01-HB.docxper }cent Substituteof Billsuch No.money or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such moneys for each month or fraction of a month from the date such moneys are due to the date of payment.
7331Subject are not paid when due, the commissioner shall impose a delinquency assessment upon the licensed sports wagering operator in the amount of ten per cent of such money or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such moneys for each month or fraction of a month from the date such moneys are due to the dateLCO ofNo. payment.
Subject5506 to10 theof 21 Raised Bill No.7331 provisions of section 12-3a of the general statutes, the commissioner may waive all or part of the penalties provided under this subsection when it is proven to the commissioner's satisfaction that the failure to pay such moneys within the time required was due to reasonable cause and was not intentional or due to neglect.
(e)(k) The commissioner or the commissioner's designee may authorize deputies to enter upon the premises of a licensed sports wagering operator'soperator, the Connecticut Lottery Corporation or a lottery sales agent's place of business for the purposes of inspecting books and records, and supervising and examining cashiers, ticket sellers and other persons handling money on behalf of such operator.operator, corporation or agent.
(f)(l) A sports governing body may request that the commissioner restrict, limit or exclude wagering on a sporting event or events by providing notice in such form and manner as the commissioner prescribes.
(g)(m) (1) Each licensed sports wagering operatoroperator, the Connecticut Lottery Corporation and any lottery sales agent that offers sports wagering shall immediately report to the commissioner any information relating to (A) criminal or disciplinary proceedings commenced against such operatoroperator, corporation or agent or an employee of such operatoroperator, corporation or agent in connection with its operations, (B) abnormal betting activity or patterns that may indicate a concern with the integrity of a sporting event, (C) any potential breach of the relevant sports governing body's internal rules or codes of conduct pertaining to sports wagering, (D) any other conduct that corrupts the betting outcome of a sporting event for purposes of financial gain, including match-fixing, and (E) suspicious or illegal wagering activities, including the use of funds derived from illegal activity to place a wager, the placing of a wager to conceal funds derived from illegal activity, the use of an agent or a LCOproxy {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07314to place a wager or the use of 31false R01-HB.docxidentification }to Substituteplace Billa No.wager.
7331(2) proxySuch tooperator, placecorporation a wager or theagent useshall ofalso falseimmediately identificationLCO toNo. place a wager.
(2)5506 Such11 operatorof shall21 alsoRaised immediatelyBill No.7331 report to the relevant sports governing body any information relating to conduct described under subparagraphs (B) to (D), inclusive, of subdivision (1) of this subsection.
(h)(n) If the commissioner finds, after a hearing conducted pursuant to chapter 54 of the general statutes, that any individual or entity knowingly violatedviolates any provision of this section or any regulation adopted pursuant to subsection (i)(o) of this section, the commissioner shall assess such individual or entity a civil penalty of not more than fifty thousand dollars for each violation, not to exceed two hundred fifty thousand dollars for multiple violations arising out of the same transaction or occurrence.
(i)(o) The commissioner shall adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to implement the provisions of this sectionsection. and sections 3 and 4 of this act.
(2) the minimum amount of cash reserves to be maintained by licensed sports wagering operators;
(4) the maximum wagers which may be accepted by aan licensedoperator sportsor wageringthe operatorConnecticut Lottery Corporation from any one sports bettor on any one sports event;
(7) minimum accounting standards for a licensed sports wagering operator;operator or the corporation;
(8) the types of records which shall be maintained by a licensed sports wagering operator or the corporation and available for inspection upon the request of the commissioner;
(9) requirements for information and reports from a licensed sports wagering operator toand LCOthe {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07315corporation ofto 31enable R01-HB.docxeffective }auditing Substituteof Billsports No.wagering operations;
7331 enable effective auditing of sports wagering operations;
and (12) requirements for any advertisement for sports betting to ensureLCO suchNo. advertisement (A) does not target minors, problem gamblers or other vulnerable individuals, (B) includes information about gambling addiction or Internet web site links to resources related to gambling addiction, and (C) is not false, misleading or deceptive to a reasonable consumer.
5506 12 of 21 Raised Bill No.7331 ensure such advertisement (A) does not target minors, problem gamblers or other vulnerable individuals, (B) includes information about gambling addiction or Internet web site links to resources related to gambling addiction, and (C) is not false, misleading or deceptive to a reasonable consumer.
(p) Any amounts received by the commissioner pursuant to this section shall be deposited in the sports wagering account established in section 2 of this act.
(q) The commissioner may establish receivables for the expenses to be incurred by the department prior to moneys being deposited in the sports wagering account established in section 2 of this act in accordance with this section.
Such receivables shall not exceed nine hundred thousand dollars.
6.2.
(NEW) (Effective July 1, 2019) (a) There is established an account to be known as the "sports wagering account" which shall be a separate, nonlapsing account within the General Fund.
AnyThe amountsaccount receivedshall bycontain theany commissionermoneys pursuantrequired toby sectionslaw 3 to 5, inclusive, of this act shall be deposited in the sports wagering account.
TheMoneys in the account shall containbe anyexpended otherby moneysthe requiredCommissioner of Consumer Protection for the purposes of compensating the Department of Consumer Protection for the reasonable and necessary costs incurred by lawthe todepartment befor depositedthe regulatory and licensing activities specified in thesection account.1 of this act.
(b)On Moneysand inafter the accountfirst shallfull befiscal expendedyear bythat the commissioner forfinds themoney purposeshas ofbeen compensatingdeposited in the departmentsports forwagering account, the reasonablecommissioner andshall necessarycontribute costsone-half incurredof byone theper departmentcent forof the regulatorymoneys anddeposited licensingin activitiesthe specifiedaccount induring sectionsthe 1previous fiscal year to 5,the inclusive,five Regional Behavioral Health Action Organizations designated by the Commissioner of thisMental act.Health and Addiction Services.
On and after the first full fiscal year that the commissioner finds money has been deposited in the sports wagering account, the commissioner shall contribute two per cent of the moneys deposited in the account during the previous fiscal year to the program for treatment and rehabilitation of compulsive gamblers established pursuant to section 17a-713 of the general statutes.
(c)Sec. The commissioner may establish receivables for the expenses to be incurred by the department prior to moneys being deposited in the sports wagering account.
Such3. receivables shall not exceed nine hundred thousand dollars.
LCOSection {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0731612-577 of 31the R01-HB.docxgeneral }statutes Substituteis Billrepealed and the LCO No.
73315506 Sec.13 of 21 Raised Bill No.
7.7331 following is substituted in lieu thereof (Effective July 1, 2019):
Section 12-577 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
8.4.
(b) No director, officer or employee of the corporation shall, directly or indirectly, participate in, or share in the winnings from, (1) a game conducted pursuant to sections 12-563a and 12-800 to 12-818, inclusive, or (2) sports wagering, if the corporation conducts sports wagering pursuant to section 31 or 4 of this act.
9.5.
SectionSubsection (c) of section 12-812 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
(a) The president of the corporation, subject to the direction of the board, shall conduct daily, weekly, multistate, special instant or other lottery games and shall determine the number of times a lottery shall be held each year, the form and price of the tickets and the aggregate amount of prizes, which shall not be less than forty-five per cent of the sales unless required by the terms of any agreement entered into for LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0733117 of 31 R01-HB.docx } Substitute Bill No.
7331 the conduct of multistate lottery games.
The proceeds of the sale of tickets shall be deposited in the lottery fund of the corporation from which prizes shall be paid, upon vouchers signed by the president, or by either of two persons designated and authorized by him, in such numbers and amounts as the president determines.
The corporation may limit its liability in games with fixed payouts and may cause a cessation of sales of tickets of certain designation when such liability limit has been reached.
If licensed to conduct sports wagering pursuant to section 3 or 4 of this act, the president shall deposit the proceeds of sales related to sports wagering, as defined in section 1 of this act, in the lottery fund, from which prizes shall be paid.
(b) The president, subject to the direction of the board, may enter into agreements for the sale of product advertising on lottery tickets, play slips and other lottery media.
Upon notification of receipt of such certification by the Treasurer,LCO theNo. corporation shall transfer the amount so certified from the lottery fund of the corporation to the General Fund, [upon notification of receipt of such certification by the Treasurer] except that the corporation shall transfer the amount attributable to the proceeds of sports wagering to the sports wagering account established in section 6 of this act.
5506 14 of 21 Raised Bill No.7331 Treasurer, the corporation shall transfer the amount so certified from the lottery fund of the corporation to the General Fund, [upon notification of receipt of such certification by the Treasurer] except that the corporation shall transfer the amount attributable to the proceeds of sports wagering to the sports wagering account established in section 2 of this act.
10.6.
(2) "Gambling" means risking any money, credit, deposit or other thing of value for gain contingent in whole or in part upon lot, chance LCOor {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07318the operation of 31a R01-HB.docxgambling }device, Substituteincluding Billthe No.playing of a casino gambling game such as blackjack, poker, craps, roulette or a slot machine, but does not include:
7331 or the operation of a gambling device, including the playing of a casino gambling game such as blackjack, poker, craps, roulette or a slot machine, but does not include:
Fantasy contests, as defined in section 12-578aa, as amended by this act, shall not be considered gambling, provided the conditions set forth in subsection (b) of section 12-578aa12-578aa, as amended by this act, have been met and the operator of such contests is registered pursuant to subdivision (1) of subsection (d) of section 12-12-578aa. 578aa.
Sports wagering, as defined in section 1 of this act, shall not be considered gambling if the conditions set forth in subsection (b) of section 21 of this act have been met and the sports wagering is conducted by a licensed sports wagering operator,operator aslicensed definedunder insection 1 of this act, the Connecticut Lottery Corporation or a lottery sales agent licensed under section 1 of this act;
11.7.
Subdivision (4) of section 53-278a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1,LCO 2019):No.
5506 15 of 21 Raised Bill No.7331 1, 2019):
and any subassembly or essential part designed or intended for use in connection with any such device, mechanism, furniture, fixture, construction or installation, provided an immediate and unrecorded right of replay mechanically conferred on players of pinball machines and similar amusement LCOdevices {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07319shall ofbe 31presumed R01-HB.docxto }be Substitutewithout Billvalue. No.
7331 devices shall be presumed to be without value.
A device or equipment used to play fantasy contests, as defined in section 12-578aa, as amended by this act, shall not be considered a gambling device, provided the conditions set forth in subsection (b) of section 12-578aa12-578aa, as amended by this act, have been met.
A device or equipment used to participate in sports wagering, as defined in subsection (a) of section 1 of this act, shall not be considered a gambling device if the conditions set forth in subsection (b) of section 21 of this act have been met;
12.8.
No commissioner or unit head shall, directly or indirectly, wager at any off-track betting facility, race track or frontonLCO authorizedNo. under this chapter, purchase lottery tickets issued under this chapter, [or] play, directly or indirectly, any authorized game conducted at a casino gaming facility or place a sports wager with a licensed sports wagering operator, as defined in section 1 of this act.
5506 16 of 21 Raised Bill No.7331 fronton authorized under this chapter, purchase lottery tickets issued under this chapter, [or] play, directly or indirectly, any authorized game conducted at a casino gaming facility or place a sports wager with a sports wagering operator licensed under section 1 of this act, the Connecticut Lottery Corporation or a lottery sales agent licensed under section 1 of this act.
13.9.
LCO(a) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07320The Freedom of 31Information R01-HB.docxAct, }as Substitutedefined Billin No.section 1-200, shall apply to all actions, meetings and records of the corporation, except (1) where otherwise limited by subsection (c) of this section as to new lottery games and serial numbers of unclaimed lottery tickets, [and] (2) with respect to financial, credit and proprietary information submitted by any person to the corporation in connection with any proposal to provide goods, services or professional advice to the corporation as provided in section 12-815, and (3) as provided in subsection (d) of this section.
7331 (a) The Freedom of Information Act, as defined in section 1-200, shall apply to all actions, meetings and records of the corporation, except (1) where otherwise limited by subsection (c) of this section as to new lottery games and serial numbers of unclaimed lottery tickets, [and] (2) with respect to financial, credit and proprietary information submitted by any person to the corporation in connection with any proposal to provide goods, services or professional advice to the corporation as provided in section 12-815, and (3) as provided in subsection (d) of this section.
The president shall submit a fiscal note prepared by the corporation with respect to the proceduresLCO forNo. a new lottery game to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue, bonding and public safety after approval of such game by the board.
(d)5506 The17 nameof and21 anyRaised personallyBill identifyingNo.7331 informationprocedures offor a personnew wholottery isgame participatingto inthe orjoint hasstanding participatedcommittees inof the corporation'sGeneral sportsAssembly wageringhaving voluntarycognizance self-exclusion process established in subsection (a) of sectionmatters 5relating ofto thisfinance, actrevenue, shallbonding notand be deemed public records,safety asafter definedapproval inof sectionsuch 1-200,game andby shall not be available to the publicboard. under the provisions of section 1-210.
(d) The name and any personally identifying information of a person who is participating in or has participated in the corporation's sports wagering voluntary self-exclusion process established in subdivision (2) of subsection (f) of section 1 of this act or subdivision (2) of subsection (g) of section 1 of this act shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of section 1-210.
14.10.
Subdivision (1) of subsection (a) of section 12-578f of the general statutes is repealed and the following is substituted in lieu LCOthereof {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07321(Effective ofJuly 311, R01-HB.docx2019): } Substitute Bill No.
7331 thereof (Effective July 1, 2019):
15.11.
Subsection (b) of section 12-578aa of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
(b) The provisions of this section shall not be effective unless the following conditions have been met:
(1) The Governor enters into [amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe and amendments LCO No.
5506 18 of 21 Raised Bill No.7331 to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut concerning the authorization of fantasy contests in the state] tribal- state compacts with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut pursuant to the federal Indian Gaming Regulatory Act, P.L.
100-497, 25 USC 2710(d)(3) concerning the authorization of fantasy contests.
Any such tribal-state compact shall:
(A) Allow each tribe to offer fantasy contests on Indian lands, (B) provide that the authorization of fantasy contests in this state does not relieve each tribe from the tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in the Mashantucket Pequot memorandum of understanding and the Mohegan memorandum of understanding, as the case may be, and (C) provide that the authorization of fantasy contests in this state does not terminate the moratoria on the operation of video facsimile games by the tribes pursuant to section 15(a) of the Mashantucket Pequot procedures and section 15(a) of the Mohegan compact.
[(2) The amendments to the Mashantucket Pequot procedures and the Mohegan compact shall include a provision that the authorization of fantasy contests in the state does not terminate the moratorium against the operation of video facsimile games by the Mashantucket Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each tribe's reservation.
(3) The amendments to each tribe's memorandum of understanding shall include a provision that the authorization of fantasy contests in the state does not relieve each tribe from each tribe's obligation to contribute a percentage of the gross operating revenues of video facsimile games to the state as provided in each tribe's memorandum of understanding.] [(4)] (2) The [amendments to the Mashantucket Pequot procedures, the Mashantucket Pequot memorandum of understanding, the Mohegan compact and the Mohegan memorandum of understanding] tribal-state compacts entered into under subdivision (1) of this LCO No.
5506 19 of 21 Raised Bill No.7331 subsection are approved or deemed approved by the Secretary of the United States Department of the Interior pursuant to the federal Indian Gaming Regulatory Act, P.L.
100-497, 25 USC 2701 et seq., and its implementing regulations.
If such approval is overturned by a court in a final judgment, which is not appealable, the authorization for fantasy contests provided under this section shall cease to be effective.
[(5)] (3) The [amendments to the Mashantucket Pequot procedures and to the Mohegan compact] tribal-state compacts entered into under subdivision (1) of this subsection are approved by the General Assembly pursuant to section 3-6c.
[(6) The amendments to the Mashantucket Pequot memorandum of understanding and to the Mohegan memorandum of understanding are approved by the General Assembly pursuant to the process described in section 3-6c.] Sec.
12.
(b) Not later than July 1, 2020, and annually thereafter, the commissioner shall submit a report, in accordance with the provisions ofLCO sectionNo. 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to public safety and security and commerce concerning the commissioner's activities during the preceding year in developing partnerships with professional sports leagues and governing bodies and scheduling events in the state.
LCO5506 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0732220 of 3121 R01-HB.docxRaised } Substitute Bill No.
7331 Sec.of section 11-4a of the general statutes, to the joint standing committee of the General Assembly having cognizance of matters relating to public safety and security and commerce concerning the commissioner's activities during the preceding year in developing partnerships with professional sports leagues and governing bodies and scheduling events in the state.
16.
Section 12-816 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
The exercise of the powers granted by sections 1-120, 1-121, 1-125, 12-563, 12-563a, 12-564, 12-566, 12-568a and 12-569, subsection (c) of section 12-574, [and] sections 12-800 to 12-818, inclusive, and sections 3 and 4 of this act, if the corporation is a licensed sports wagering operator, constitute the performance of an essential governmental function and all operations of the corporation shall be free from any form of federal or state taxation.
In addition, except pursuant to any federal requirements, the corporation shall not be required to pay any taxes or assessments upon or in respect to sales of lottery tickets, or any property or moneys of the corporation, levied by the state or any political subdivision or municipal taxing authority.
The corporation and its assets, property and revenues shall at all times be free from taxation of every kind by the state and by the municipalities and all other political subdivisions or special districts having taxing powers in the state.
17.13.
Section 12-801 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
As used in section 12-563a and sections 12-800 to 12-818, inclusive, the following terms shall have the following meanings unless the context clearly indicates another meaning:
(1) "Board" or "board of directors" means the board of directors of the corporation;
(2) "Corporation" means the Connecticut Lottery Corporation as created under section 12-802;
(3) "Division" means the former Division of Special Revenue in the Department of Revenue Services;
(4) "Lottery" means (A) the Connecticut state lottery conducted prior to the transfer authorized under section 12-808 by the Division of LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0733123 of 31 R01-HB.docx } Substitute Bill No.
7331 Special Revenue, (B) after such transfer, the Connecticut state lottery conducted by the corporation pursuant to sections 12-563a and 12-800 to 12-818, inclusive, (C) the state lottery referred to in subsection (a) of section 53-278g, and (D) keno conducted by the corporation pursuant to section 12-806c;
(5) "Keno" means a lottery game in which a subset of numbers are drawn from a larger field of numbers by a central computer system using an approved random number generator, wheel system device or other drawing device.
"Keno" does not include a game operated on a video facsimile machine;
(6) "Lottery fund" means a fund or funds established by, and under the management and control of, the corporation, into which all lottery revenues of the corporation, and all revenues of sports wagering if the corporation is licensed to conduct sports wagering pursuant to section 3 or 4 of this act, are deposited, from which all payments and expenses of the corporation are paid and from which transfers to the General Fund and sports wagering account are made pursuant to section 12- 812, as amended by this act;
and (7) "Operating revenue" means total revenue received from lottery sales less all cancelled sales and amounts paid as prizes but before payment or provision for payment of any other expenses.
Sec.
18.
Section 12-806 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
(a) The purposes of the corporation shall be to:
(1) Operate and manage the lottery in an entrepreneurial and business-like manner free from the budgetary and other constraints that affect state agencies;
(2) provide continuing and increased revenue to the people of the state through the lottery by being responsive to market forces and acting generally as a corporation engaged in entrepreneurial pursuits;
and (3) ensure that the lottery continues to be operated with integrity and for the public good.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0733124 of 31 R01-HB.docx } Substitute Bill No.
7331 (b) The corporation shall have the following powers:
(1) To receive as transferee from the state of Connecticut all of the tangible and intangible assets constituting the lottery including the exclusive right to operate the lottery as the exclusive lottery of the state and, subject to subsection (b) of section 12-808, to assume and discharge all of the agreements, covenants and obligations of the Department of Consumer Protection entered into which constitute a part of the operation and management of the lottery;
(2) To operate and manage the lottery consistent with the provisions of sections 1-120, 1-121, 1-125, 12-563, 12-563a, 12-564, 12-566, 12-568a and 12-569, subsection (c) of section 12-574 and sections 12-800 to 12- 818, inclusive, and as specifically provided in section 12-812;
(3) To have perpetual succession as a body corporate and to adopt bylaws, policies and procedures for the operation of its affairs and conduct of its businesses;
(4) To introduce new lottery games, modify existing lottery games, utilize existing and new technologies, determine distribution channels for the sale of lottery tickets, introduce keno pursuant to signed agreements with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut, in accordance with section 12-806c, and, to the extent specifically authorized by regulations adopted by the Department of Consumer Protection pursuant to chapter 54, introduce instant ticket vending machines, kiosks and automated wagering systems or machines, with all such rights being subject to regulatory oversight by the Department of Consumer Protection, except that the corporation shall not offer any interactive on-line lottery games, including on-line video lottery games for promotional purposes;
(5) To establish an annual budget of revenues and expenditures, along with reasonable reserves for working capital, capital expenditures, debt retirement and other anticipated expenditures, in a manner and at levels considered by the board of directors as LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07325 of 31 R01-HB.docx } Substitute Bill No.
7331 appropriate and prudent;
(6) To adopt such administrative and operating procedures which the board of directors deems appropriate;
(7) To enter into agreements with one or more states or territories of the United States for the promotion and operation of joint lottery games and to continue to participate in any joint lottery game in which the corporation participates on July 1, 2003, regardless of whether any government-authorized lottery operated outside of the United States participates in such game;
(8) Subject to the provisions of section 12-815, to enter into agreements with vendors with respect to the operation and management of the lottery, including operation of lottery terminals, management services, printing of lottery tickets, management expertise, marketing expertise, advertising or such other goods or services as the board of directors deems necessary and appropriate;
(9) To purchase or lease operating equipment, including, but not limited to, computer gaming and automated wagering systems and to employ agents or employees to operate such systems;
(10) To retain unclaimed prize funds as additional revenue for the state, or to use unclaimed prize funds to increase sales, or to return to participants unclaimed prize funds in a manner designed to increase sales;
(11) To establish prize reserve accounts as the board of directors deems appropriate;
(12) To pay lottery prizes as awarded under section 12-812, as amended by this act, to purchase annuities to fund such prizes, and to assure that all annuities from which payments to winners of lottery prizes are made are invested in instruments issued by agencies of the United States government and backed by the full faith and credit of the United States, or are issued by insurance companies licensed to do LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07326 of 31 R01-HB.docx } Substitute Bill No.
7331 business in the state, provided the issuer has been determined by the Department of Consumer Protection to be financially stable and meets the minimum investment rating as determined by the department;
(13) To pay the Office of Policy and Management to reimburse the Department of Consumer Protection for the reasonable and necessary costs arising from the department's regulatory oversight of the corporation, in accordance with the assessment made pursuant to section 12-806b, including costs arising directly or indirectly from the licensing of lottery agents, performance of state police background investigations, and the implementation of subsection (b) of section 12- 562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 12-818, inclusive;
(14) In the event that the operation or management of the corporation becomes subject to the federal gaming occupation tax, to pay such tax on behalf of lottery sales agents and to assist agents subject thereto;
(15) To determine the commissions payable to lottery sales agents, provided any agent's commission shall not average less than four per cent of such agent's lottery sales;
(16) To invest in, acquire, lease, purchase, own, manage, hold and dispose of real property and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to carrying out the purposes of sections 12-563a and 12-800 to 12-818, inclusive, provided such transactions shall not be subject to approval, review or regulation pursuant to title 4b or any other statute by any state agency, except that real property transactions shall be subject to review by the State Properties Review Board;
(17) To borrow money for the purpose of obtaining working capital;
(18) To hold patents, copyrights, trademarks, marketing rights, licenses or any other evidence of protection or exclusivity issued under the laws of the United States or any state;
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07327 of 31 R01-HB.docx } Substitute Bill No.
7331 (19) To employ such assistants, agents and other employees as may be necessary or desirable to carry out its purposes in accordance with sections 12-563a and 12-800 to 12-818, inclusive, to fix their compensation and, subject to the provisions of subsections (e) and (f) of section 12-802, establish all necessary and appropriate personnel practices and policies;
to engage consultants, accountants, attorneys and financial and other independent professionals as may be necessary or desirable to assist the corporation in performing its purposes in accordance with sections 12-563a and 12-800 to 12-818, inclusive;
(20) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under sections 12-563a and 12-800 to 12-818, inclusive;
(21) In its own name, to sue and be sued, plead and be impleaded, adopt a seal and alter the same at pleasure;
(22) Subject to the approval of the board and to the requirement to remit excess lottery funds to the General Fund as set forth in section 12-812, as amended by this act, to invest any funds not needed for immediate use or disbursement, including any funds held in approved reserve accounts, in investments permitted by sections 3-20 and 3-27a for the proceeds of state bonds;
(23) To procure insurance against any loss in connection with its property and other assets in such amounts and from such insurers as it deems desirable;
(24) To the extent permitted under any contract with other persons to which the corporation is a party, to consent to any termination, modification, forgiveness or other change of any term of any contractual right, payment, royalty, contract or agreement of any kind;
(25) To acquire, lease, purchase, own, manage, hold and dispose of personal property, and lease, convey or deal in or enter into agreements with respect to such property on any terms necessary or incidental to the carrying out of these purposes;
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07328 of 31 R01-HB.docx } Substitute Bill No.
7331 (26) To account for and audit funds of the corporation;
(27) To pay or provide for payment from operating revenues all expenses, costs and obligations incurred by the corporation in the exercise of the powers of the corporation under sections 12-563a and 12-800 to 12-818, inclusive;
[and] (28) To exercise any powers necessary to carry out the purposes of sections 12-563a and 12-800 to 12-818, inclusive;
[.] and (29) To operate sports wagering in person, if licensed pursuant to section 3 of this act, and to operate sports wagering on a platform, if licensed pursuant to section 4 of this act.
Sec.
19.
Section 17a-713 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2019):
(a) The Department of Mental Health and Addiction Services shall establish a program for the treatment and rehabilitation of compulsive gamblers in the state.
The program shall provide prevention, treatment and rehabilitation services for chronic gamblers.
The department may enter into agreements with subregional planning and action councils and nonprofit organizations to assist in providing these services, provided not less than twenty-five per cent of the amount received pursuant to section 12-818 annually shall be set aside for contracts with subregional planning and action councils established pursuant to section 17a-671 and nonprofit organizations and not less than five per cent of the amount received pursuant to section 12-818 annually shall be set aside for a contract with the Connecticut Council on Problem Gambling.
The department may impose a reasonable fee, on a sliding scale, on those participants who can afford to pay for any such services.
The department shall implement such program when the account established under subsection (b) of this section is sufficient to meet initial operating expenses.
As used in this section, "chronic gambler" means a person who is chronically and progressively preoccupied with gambling and the urge to gamble, and with LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07329 of 31 R01-HB.docx } Substitute Bill No.
7331 gambling behavior that compromises, disrupts or damages personal, family or vocational pursuits.
(b) The program established by subsection (a) of this section shall be funded by:
[imposition of:] (1) [A] Imposition of a fee of one hundred thirty-five dollars on each association license, for each performance of jai alai or dog racing conducted under the provisions of chapter 226, provided no such licensee shall contribute more than forty-five thousand dollars in any one year;
(2) imposition of a fee of twenty-five dollars for each teletheater performance on each operator of a teletheater facility;
[and] (3) the amount received from the Connecticut Lottery Corporation pursuant to section 12-818;
and (4) the amount received from the sports wagering account pursuant to section 6 of this act.
The Commissioner of Consumer Protection shall collect the fee from each association licensee or such operator on a monthly basis.
The receipts shall be deposited in the General Fund and credited to a separate, nonlapsing chronic gamblers treatment and rehabilitation account which shall be established by the Comptroller.
All moneys in the account are deemed to be appropriated and shall be expended for the purposes established in subsection (a) of this section.
(c) The department shall adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of this section.
Sec.
20.
3 July 1, 2019 New12-577 section Sec.
4 July 1, 2019 New12-811(b) section Sec.
5 July 1, 2019 New12-812(c) section Sec.
6 July 1, 2019 New53-278a(2) section Sec.
7 July 1, 2019 12-57753-278a(4) LCOSec. {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331-30 of 31 R01-HB.docx } Substitute Bill No.
73318 July 1, 2019 12-561 Sec.
89 July 1, 2019 12-811(b)12-810 Sec.
910 July 1, 2019 12-81212-578f(a)(1) July 1, 2019 Sec.
1011 July12-578aa(b) 1, 2019 53-278a(2) Sec.
1112 July 1, 2019 53-278a(4)New section Sec.
1213 July 1, 2019 12-561Repealer Sec.section Statement of Purpose:
13To Julyauthorize 1,sports 2019wagering 12-810in Sec.the state if certain conditions are met and to require the Commissioner of Economic and Community Development to seek partnerships with professional sports leagues and governing bodies.
14[Proposed Julydeletions 1,are 2019enclosed 12-578f(a)(1)in Sec.brackets.
15Proposed Julyadditions 1,are 2019indicated Newby underline, not underlined.] the entire text of a bill or resolution or a section Sec.of a bill or resolution is new, it is LCO No.
165506 July21 1,of 201921 12-816 Sec.
17 July 1, 2019 12-801 July 1, 2019 Sec.
18 12-806 Sec.
19 July 1, 2019 17a-713 Sec.
20 July 1, 2019 Repealer section Statement of Legislative Commissioners:
In Section 2(a), internal and statutory references were changed for accuracy;
in Section 4(g), an internal reference was changed for accuracy.
PS Joint Favorable Subst.
LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- 31 of 31 R01-HB.docx }
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Action History
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REF. BY HOUSE TO COMMITTEE ON Finance, Revenue and Bonding
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FILE NO. 501
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HOUSE CALENDAR NUMBER 329
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FAV. RPT., TABLED FOR HOUSE CALENDER
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/08/19
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FILED WITH LCO
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Joint Favorable Substitute
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PUBLIC HEARING 0312
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REF. TO JOINT COMM. ON Public Safety and Security
Sponsors
- Public Safety and Security Committee · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 186 not signed on
Sponsors (1)
- Public Safety and Security Committee
Co-sponsors (0)
None.
Not signed on (186)
186 members have not signed on to this bill.
Show all 186 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors HB 7331?
- HB 7331 is sponsored by Public Safety and Security Committee.
- What is the current status of HB 7331?
- This bill died with 2019 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
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