HB 6451 — AN ACT CONCERNING THE AUTHORIZATION, LICENSING AND REGULATION OF ONLINE CASINO GAMING, RETAIL AND ONLINE SPORTS WAGERING, FANTASY CONTESTS, KENO AND ONLINE SALE OF LOTTERY TICKETS.

709 instrumentality or an affiliate wholly-owned by said tribe, and a master wagering license to the Mohegan Tribe of Indians of Connecticut, or an instrumentality or an affiliate wholly-owned by said tribe, and each master wagering license shall permit the licensee to operate one skin for online sports wagering within the state, operate one skin for online casino gaming within the state and operate fantasy contests within the state, pursuant to the provisions of sections 6 to 22, inclusive, of this act, as applicable, provided:

(2) The governing bodies of the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut each enact a resolution providing that (A) such tribe waives the defense of sovereign immunity withPublic respectAct toNo. any action against such tribe as a master wagering licensee, and against an instrumentality of or affiliate wholly-owned by such tribe that is acting on behalf of such tribe as a master wagering licensee, to compel compliance with the provisions of sections 1 to 22, inclusive, of this act, and, as applicable, section 12-586f of the general statutes, as amended by this act, section 12-586g of the general statutes, as amended by this act, section 12-578f of the general statutes, as amended by this act, section 12-806c of the general statutes, as amended by this act, section 52-553 of the general statutes, as amended by this act, section 52-554 of the general statutes, as amended by this act, section 53- 278a of the general statutes, as amended by this act, and section 53-278g of the general statutes, as amended by this act, and the regulations promulgated by the state pursuant to said sections, applicable to the operation of online casino gaming, online sports wagering and fantasy contests outside of the reservation lands of the tribe;

(B)21-23 if10 suchof tribe65 asSubstitute sHB6451House /Bill File No.

7096451 sHB6451with Filerespect No.to any action against such tribe as a master wagering licensee, and against an instrumentality of or affiliate wholly-owned by such tribe that is acting on behalf of such tribe as a master wagering licensee, to compel compliance with the provisions of sections 1 to 22, inclusive, of this act, and, as applicable, section 12-586f of the general statutes, as amended by this act, section 12-586g of the general statutes, as amended by this act, section 12-578f of the general statutes, as amended by this act, section 12-806c of the general statutes, as amended by this act, section 52-553 of the general statutes, as amended by this act, section 52-554 of the general statutes, as amended by this act, section 53- 278a of the general statutes, as amended by this act, and section 53-278g of the general statutes, as amended by this act, and the regulations promulgated by the state pursuant to said sections, applicable to the operation of online casino gaming, online sports wagering and fantasy contests outside of the reservation lands of the tribe;

709(B) if such tribe as master wagering licensee, or such tribe's instrumentality or wholly- owned affiliate that is acting on behalf of such tribe as master wagering licensee, fails to pay any fees or taxes due to the state under sections 1 to 22, inclusive, of this act, or, as applicable, section 12-586f of the general statutes, as amended by this act, section 12-586g of the general statutes, as amended by this act, section 12-578f of the general statutes, as amended by this act, section 12-806c of the general statutes, as amended by this act, section 17a-713 of the general statutes, as amended by this act, section 52-553 of the general statutes, as amended by this act, section 52-554 of the general statutes, as amended by this act, section 53- 278a of the general statutes, as amended by this act, or section 53-278g of the general statutes, as amended by this act, the tribe waives the defense of sovereign immunity with respect to any action by the state against such tribe as master wagering licensee, or against an instrumentality of or affiliate wholly-owned by such tribe acting on behalf of such tribe as master wagering licensee, to permit the collection of such fees or taxes against such master wagering licensee from the operation of online casino gaming, online sports wagering and fantasy contests,Public asAct applicable,No. outside the reservation lands of the tribe;

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6451 contests, as applicable, outside the reservation lands of the tribe;

(c) (1) A master wagering license issued pursuant to subsection (a) of this section shall expire (A) upon the expiration of any new compact or amendment, or renewal thereof, entered into pursuant to section 2 of this act, (B) if the tribe holding such license operates E-bingo machines sHB6451at /a Filecasino No.on the tribe's reservation in this state at any time during the ten-year initial term of any amendment or new compact, as described in subdivision (3) of subsection (a) of section 2 of this act, or (C) if the holder of such master wagering license ceases to be a tribe, or an instrumentality of or an affiliate wholly-owned by a tribe.

709 sHB6451 File No.

709 at a casino on the tribe's reservation in this state at any time during the ten-year initial term of any amendment or new compact, as described in subdivision (3) of subsection (a) of section 2 of this act, or (C) if the holder of such master wagering license ceases to be a tribe, or an instrumentality of or an affiliate wholly-owned by a tribe.

(d) The holder of a master wagering license issued under subsection (a) of this section may enter into an agreement with an online gaming operator for the provision of services for a skin authorized pursuant to thisPublic sectionAct orNo. for fantasy contests, provided such online gaming operator is licensed by the department under section 8 of this act.

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6451 this section or for fantasy contests, provided such online gaming operator is licensed by the department under section 8 of this act.

(NEW) (Effective July 1, 2021) (a) If amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with the Mohegan Tribe of Indians of Connecticut, are effective pursuant to section 2 of this act, amendments to thetheagreementsentered agreementsenteredintointo pursuant to section12-806cofthegeneral statutes, as amended by this act, are effective, and the commissioner has determined that the requirements to issue a master wagering license to the Mashantucket Pequot Tribe, or an instrumentality or an affiliate wholly-owned by said tribe, and a master wagering license to the Mohegan Tribe of Indians of Connecticut, or an instrumentality or an affiliate wholly-owned by said tribe, under section 3 of this act have been met, the commissioner may issue a master wagering license to the Connecticut Lottery Corporation to permit the corporation to:

sHB6451(1) /Operate Fileretail No.sports wagering, pursuant to the provisions of sections 5 to 16, inclusive, and section 18 of this act, as applicable, at not more than fifteen facilities located throughout the state, provided no such facility shall be located within twenty-five miles of either tribe's reservation;

709 sHB6451 File No.

709 (1) Operate retail sports wagering, pursuant to the provisions of sections 5 to 16, inclusive, and section 18 of this act, as applicable, at not more than fifteen facilities located throughout the state, provided no such facility shall be located within twenty-five miles of either tribe's reservation;

(B)Public SuchAct skinNo. is not branded along with an entity or brand that operates a physical casino in any jurisdiction;

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6451 (B) Such skin is not branded along with an entity or brand that operates a physical casino in any jurisdiction;

(i) Drawings may occur not more frequently than once every three sHB6451minutes; / File No.

709 sHB6451 File No.

709 minutes;

(A) Lottery draw games for which tickets are sold through the programPublic occurAct regularlyNo. and not more frequently than once every four minutes;

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6451 program occur regularly and not more frequently than once every four minutes;

(c) The Connecticut Lottery Corporation shall not conduct any of the activities authorized by subsection (a) of this section until regulations, sHB6451including, /but Filenot No.limited to, emergency regulations, adopted by the commissioner pursuant to section 16 of this act are effective.

709 sHB6451 File No.

709 including, but not limited to, emergency regulations, adopted by the commissioner pursuant to section 16 of this act are effective.

(2) may implement initiatives to promote both the purchase of tickets for lottery draw gamesPublic throughAct theNo. corporation's Internet web site, online service or mobile application and the purchase of lottery tickets through lottery sales agents;

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6451 games through the corporation's Internet web site, online service or mobile application and the purchase of lottery tickets through lottery sales agents;

(f) For purposes of this section, "gross gaming revenue from keno" means the total of all sums actually received by the Connecticut Lottery Corporation from operating keno both through lottery sales agents and through the corporation's Internet web site, online service or mobile applicationlesstheapplicationlessthetotalofallsumspaidaswinningsto totalofallsumspaidaswinningsto patronsandany federal excise tax applicable to such sums received, provided the total of all sums paid as winnings to such patrons shall not include the cash sHB6451equivalent /value Fileof No.any merchandise or thing of value included in a jackpot or payout.

709 sHB6451 File No.

709 equivalent value of any merchandise or thing of value included in a jackpot or payout.

The corporation (1) shall develop new facilities, or enter into an agreementPublic withAct aNo. state entity or a business entity to act as a sports wagering retailer at facilities in the cities of Bridgeport and Hartford, and (2) may enter into one or more other agreements, which may include an agreement or agreements with the off-track betting system licensee to act as a sports wagering retailer.

(b)21-23 Prior16 toof the65 corporationSubstitute contractingHouse withBill anyNo. person or entity to actasasportswageringretailer,thepersonor entityshallobtainasports wagering retailer license pursuant to section 7 of this act.

6451 agreement with a state entity or a business entity to act as a sports wagering retailer at facilities in the cities of Bridgeport and Hartford, and (2) may enter into one or more other agreements, which may include an agreement or agreements with the off-track betting system licensee to act as a sports wagering retailer.

(b) Prior to the corporation contracting with any person or entity to actasasportswageringretailer,thepersonorentityshallobtainasports wagering retailer license pursuant to section 7 of this act.

The initial application fee for an online gaming service provider license shall be two thousand dollars and the annual renewal fee shall be two thousand sHB6451dollars. / File No.

709(b) sHB6451The Filecommissioner shall establish through regulations adopted pursuant to section 16 of this act, the criteria for determining when Public Act No.

70921-23 dollars.17 of 65 Substitute House Bill No.

(b)6451 The commissioner shall establish through regulations adopted pursuant to section 16 of this act, the criteria for determining when licensure as an online gaming service provider is required, based, in part, on whether the online gaming service provider (1) provides goods orservicesrelatedtoacceptingwagersforInternetgamesorretailsports wagering, including, but not limited to, services to determine the location and identity of customers such as geolocation and "know your customer" services, payment processing and data provision, or (2) provides other goods or services that the department determines are used in, or are incidental to, Internet games or retail sports wagering, in a manner requiring licensing in order to contribute to the public confidence and trust in the credibility and integrity of the gaming industry in this state.

(NEW) (Effective July 1, 2021) (a) No online gaming operator shall provide services to a master wagering licensee or a licensed sports sHB6451wagering /retailer Filein No.the state without a license from the department.

709An sHB6451Public FileAct No.

70921-23 wagering18 retailerof in65 theSubstitute stateHouse withoutBill aNo. license from the department.

An6451 online gaming operator shall apply for a license on a form and in a manner prescribed by the commissioner.

For purposesPublic ofAct this subsection, a "critical component" means a component of an electronic wagering platform that records, stores, processes, sHB6451 / File No.

70921-23 sHB645119 Fileof 65 Substitute House Bill No.

7096451 purposes of this subsection, a "critical component" means a component of an electronic wagering platform that records, stores, processes, shares, transmits or receives sensitive information, such as validation numbers and personal identification numbers, or which stores the results or the current state of a participant's wager for an Internet game.

The commissioner may establish, through regulations adopted pursuant to section 16 of this act, criteria to exercise discretionPublic toAct determineNo. that an individual who is a key employee is not required to be licensed as a key employee in order to protect the integrity of gaming.

(c)21-23 (1)20 Aof key65 employeeSubstitute shallHouse applyBill for a license on a form and in a sHB6451 / File No.

7096451 sHB6451discretion Fileto No.determine that an individual who is a key employee is not required to be licensed as a key employee in order to protect the integrity of gaming.

709(c) (1) A key employee shall apply for a license on a form and in a manner prescribed by the commissioner.

(e)Public TheAct department shall transfer any licensing fee collected pursuant to subsection (a) of this section for a key employee of the holder of a master wagering license under section 3 of this act, or of an online gaming operator or an online gaming service provider that is affiliated with such a holder of a master wagering license, to the State Sports Wagering and Online Gaming Regulatory Fund established under sHB6451 / File No.

70921-23 sHB645121 Fileof 65 Substitute House Bill No.

7096451 (e) The department shall transfer any licensing fee collected pursuant to subsection (a) of this section for a key employee of the holder of a master wagering license under section 3 of this act, or of an online gaming operator or an online gaming service provider that is affiliated with such a holder of a master wagering license, to the State Sports Wagering and Online Gaming Regulatory Fund established under section 20 of this act.

(NEW) (Effective July 1, 2021) Any individual who is a key employee or an occupational employee of a master wagering licensee described in section 3 of this act or of an online gaming operator or online gaming service provider that is an Indian tribe or an instrumentality of or affiliate wholly-owned by an Indian tribe shall not be permitted to raise sovereign immunity as a defense to any action to enforce applicable provisions of sections 1 to 22, inclusive, of this act or, as applicable, section 12-586f of the general statutes, as amended by this act, section 12-586g of the general statutes, as amended by this act, section 12-578f of the general statutes, as amended by this act, section 12-806c of the general statutes, as amended by this act, section 52-553 of thegeneralstatutes,asamendedbythegeneral statutes,asamendedby thisact,section52-554ofthegeneral statutes, as amended by this act, section 53-278a of the general statutes, as amended by this act, or section 53-278g of the general statutes, as amended by this act, and regulations adopted under said sections against such individual in his or her capacity as a key or occupational employee to the extent that such action may be brought against a key or occupational employee under any provision of the general statutes or the regulations of Connecticut state agencies.

Each person or business entity issued a license pursuant to section 3 or 4, or sections 6 to 10, inclusive, of this act and each person in charge, or having custody, ofPublic documentsAct onNo. behalf of a licensee, shall maintain such documents that are related to any operations under the provisions of sections 3 to 22, inclusive, of this act, in an auditable format for the current taxable year and the five preceding taxable years.

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6451 of documents on behalf of a licensee, shall maintain such documents that are related to any operations under the provisions of sections 3 to 22, inclusive, of this act, in an auditable format for the current taxable year and the five preceding taxable years.

Such documents shall be provided to the commissioner in electronic format, unless not sHB6451commercially /practical. File No.

709 sHB6451 File No.

709 commercially practical.

(NEW) (Effective July 1, 2021) (a) For sufficient cause found pursuant to subsection (b) of this section, the commissioner may suspend or revoke a license issued pursuant to section 3 or 4 or sections 6 to 10, inclusive, of this act, issue fines of not more than twenty-five thousandPublic dollarsAct perNo. violation, accept an offer in compromise or refuse to grant or renew a license issued pursuant to section 3 or 4 or sections 6 to 10, inclusive, ofthisact,place theholder ofalicense issuedpursuant to section 3 or 4 or sections 6 to 10, inclusive, of this act on probation, place conditions on such license or take other actions permitted by the general statutes or the regulations of Connecticut state agencies.

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6451 thousand dollars per violation, accept an offer in compromise or refuse to grant or renew a license issued pursuant to section 3 or 4 or sections to 10, inclusive, ofthisact,place theholder ofalicense issuedpursuant to section 3 or 4 or sections 6 to 10, inclusive, of this act on probation, place conditions on such license or take other actions permitted by the general statutes or the regulations of Connecticut state agencies.

(1) Furnishing of false or fraudulent information in any license application or failure to comply with representations made in any sHB6451application; / File No.

709 sHB6451 File No.

709 application;

(9)Public FailureAct toNo. properly license occupational employees, or failure to notify the department of a change in key employees or owners;

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6451 (9) Failure to properly license occupational employees, or failure to notify the department of a change in key employees or owners;

or (12) Failure to comply with any provision of sections 1 to 22, inclusive, of this act, corresponding regulations or any other provision of the general statutes that has an impact on the integrity of gaming in this state, including, but not limited to, failure of an online gaming sHB6451operator /who Filecontracts No.with the Connecticut Lottery Corporation to abide by the conditions for operation set forth in subparagraph (B), (C) or (E) of subdivision (2) of subsection (a) of section 4 of this act.

709 sHB6451 File No.

709 operator who contracts with the Connecticut Lottery Corporation to abide by the conditions for operation set forth in subparagraph (B), (C) or (E) of subdivision (2) of subsection (a) of section 4 of this act.

(d)No personwhosepersonwhoselicense license has beenrevokedunder thissectionmay apply for another license issued pursuant to section 3 or 4 or sections 6 to 10, inclusive, of this act, for a period of at least one year after the date ofPublic suchAct revocation.No.

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6451 of such revocation.

(NEW) (Effective July 1, 2021) (a) (1) An individual may only place a sports wager through retail sports wagering or online sports wagering outside of the reservations of the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut or place a wager through online casino gaming conducted outside of such reservations, if the wagering is authorized pursuant to sections 3 to 5, inclusive, of this act, and the individual (A) has attained the age of twenty-one, and (B) is physically present in the state when placing the wager, and, in the case of retail sports wagering, is physically present at a retail sports sHB6451wagering /facility Filein No.this state.

709 sHB6451 File No.

709 wagering facility in this state.

(A) Verify that an individual (i) with an account for online sports wagering, online casino gaming or retail sports wagering is twenty-one yearsPublic ofAct ageNo. or older and is physically present in the state when placing a wager or, in the case of retail sports wagering, is physically present at a retail sports wagering facility, (ii) with an account to participate in keno or to purchase lottery draw game tickets is eighteen years of age or older and is physically present in the state when participating or purchasing such tickets, or (iii) with an account for fantasy contests is eighteen years of age or older;

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6451 years of age or older and is physically present in the state when placing a wager or, in the case of retail sports wagering, is physically present at a retail sports wagering facility, (ii) with an account to participate in keno or to purchase lottery draw game tickets is eighteen years of age or older and is physically present in the state when participating or purchasing such tickets, or (iii) with an account for fantasy contests is eighteen years of age or older;

(1) Prohibit an individual from establishing more than one account sHB6451on /each Fileelectronic No.wagering platform operated by the licensee;

709 sHB6451 File No.

709 on each electronic wagering platform operated by the licensee;

(6)Public ProvideresponsibleAct gamblingNo. and problem gambling information to participants;

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6451 (6) Provideresponsible gambling and problem gambling information to participants;

and sHB6451(G) /A Fileclear No.display of the amount of money available to the individual in his or her account.

709 sHB6451 File No.

709 (G) A clear display of the amount of money available to the individual in his or her account.

(1) Depict an individual under twenty- one years of age, unless such individual is a professional athlete or a collegiate athlete who, if permitted by applicable law, is able to profit fromPublic theAct useNo. of his or her name and likeness;

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6451 from the use of his or her name and likeness;

sHB6451(b) /In Filedetermining No.which individuals are prohibited from placing a wager under subsection (a) of this section, a master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider shall use reasonably available public information and exercise reasonable efforts to obtain information from the department or the relevant sports governing body regarding (1) owners with a direct or indirect legal or beneficial ownership interest of five per cent or more of a member team of a sports governing body;

709 sHB6451 File No.

709 (b) In determining which individuals are prohibited from placing a wager under subsection (a) of this section, a master wagering licensee or a licensed online gaming operator, sports wagering retailer or online gaming service provider shall use reasonably available public information and exercise reasonable efforts to obtain information from the department or the relevant sports governing body regarding (1) owners with a direct or indirect legal or beneficial ownership interest of five per cent or more of a member team of a sports governing body;

(c)Public AnAct individualNo. shall only place a sports wager on such individual's behalf and shall not wager on the account of, or for, any other person.

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6451 (c) An individual shall only place a sports wager on such individual's behalf and shall not wager on the account of, or for, any other person.

The commissioner may take such action as the commissioner sHB6451deems /necessary Fileto No.ensure the integrity of wagering on such sporting event or events.

709 sHB6451 File No.

709 deems necessary to ensure the integrity of wagering on such sporting event or events.

Notwithstanding thePublic requirementsAct ofNo. subdivision (1) of subsection (g) of section 4-168 of the general statutes, the commissioner may adopt such regulations as emergency regulations without making the finding required under subparagraph (A) of subdivision (1) of subsection (g) of section 4-168 of the general statutes, provided the Governor approves the need for such emergency regulations, and the other requirements of subsection (g) of section 4-168 of the general statutes shall apply.

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6451 the requirements of subdivision (1) of subsection (g) of section 4-168 of the general statutes, the commissioner may adopt such regulations as emergency regulations without making the finding required under subparagraph (A) of subdivision (1) of subsection (g) of section 4-168 of the general statutes, provided the Governor approves the need for such emergency regulations, and the other requirements of subsection (g) of section 4-168 of the general statutes shall apply.

sHB6451(7) /Complaint Fileresolution No.processes;

709 sHB6451 File No.

709 (7) Complaint resolution processes;

(10) Revenue auditing and reporting standards, which shall include aPublic requirementAct thatNo. all payments be accompanied by a detailed supporting report on a form approved by the commissioner;

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6451 a requirement that all payments be accompanied by a detailed supporting report on a form approved by the commissioner;

sHB6451(1) /The Filetotal No.of all sums paid as winnings to such patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout;

709and sHB6451Public FileAct No.

70921-23 (1)32 The total of all65 sumsSubstitute paidHouse asBill winningsNo. to such patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout;

and6451 (2) Coupons or credits that are issued to patrons for the sole purpose of playing online casino games and are linked to online casino gaming in a documented way as part of a promotional program and actually played by the patrons shall not be included in the calculation of gross gaming revenue from online casino gaming, provided if the aggregate amount of such coupons and credits played during a calendar month (A) exceeds twenty-five per cent of the total amount of gross gaming revenue for that month, for any month during the first year that the operation of online casino gaming is permitted, (B) exceeds twenty per cent of the total amount of gross gaming revenue for that month, for any month during the second year that the operation of online casino gaming is permitted, or (C) exceeds fifteen per cent of the total amount of gross gaming revenue for that month, for any month during the third or succeeding year that the operation of online casino gaming is permitted, then the applicable excess amount of coupons or credits used in such calendar month shall be included in the calculation of gross gaming revenue.

Each such licensee shall commence payments under this subsection not later than the fifteenth day of the month following the month that the operation of online or retail sports wagering commences under section 3 or 4 of this act, as sHB6451applicable, /and Fileshall make payments not later than the fifteenth day of Public Act No.

70921-23 sHB645133 Fileof 65 Substitute House Bill No.

7096451 applicable, and shall make payments not later than the fifteenth day of each succeeding month, while such retail or online sports wagering is conducted.

(2) Coupons or credits that are issued to patrons for the sole purpose of sports wagering and are linked to sports wagering in a documented way as part of a promotional program and actually played by the patrons shall not be included in the calculation of gross gaming revenue from sports wagering, provided if the aggregate amount of such coupons and credits played during a calendar month (A) exceeds twenty-five per cent of the total amount of gross gaming revenue for that month, for any month during the first year that the operation of sports wagering is permitted, (B) exceeds twenty per cent of the total amount of gross gaming revenue for that month, for any month during the second year that the operation of sports wagering is permitted, or (C) exceeds fifteen per cent of the total amount of gross gaming revenue for that month, for any month during the third or succeeding year that theoperationtheoperationofsportswagering ofsportswagering ispermitted,thentheapplicableexcess amount of coupons or credits used in such calendar month shall be included in the calculation of gross gaming revenue.

sHB6451Public /Act File No.

70921-23 sHB645134 Fileof 65 Substitute House Bill No.

7096451 Sec.

(2) The estimated costs under subdivision (1) of this subsection shall notPublic exceedAct theNo. estimate of expenditure requirements transmitted by the commissioner pursuant to section 4-77 of the general statutes.

The21-23 sHB645135 /of File65 Substitute House Bill No.

7096451 sHB6451not Fileexceed No.the estimate of expenditure requirements transmitted by the commissioner pursuant to section 4-77 of the general statutes.

709The assessment for any fiscal year shall be:

Moneys in the fund shall be expended by the Treasurer for thePublic purposesAct ofNo. paying the costs incurred by the department to regulate online sports wagering and online casino gaming authorized under section 3 of this act.

sHB645121-23 /36 Fileof 65 Substitute House Bill No.

7096451 sHB6451the Filepurposes No.of paying the costs incurred by the department to regulate online sports wagering and online casino gaming authorized under section 3 of this act.

709 (2) The Treasurer shall deposit all funds received pursuant to subsection (b) of this section in the State Sports Wagering and Online Gaming Regulatory Fund.

(NEW) (Effective July 1, 2021) (a) During the five-year period commencing on the date the first license is issued pursuant to section 3 of this act, (1) any payment to the state made by the Mashantucket Pequot Tribe, or a master wagering licensee on behalf of said tribe, under section 17 or 18 of this act shall count toward the calculation of the minimum contribution for said tribe pursuant to the Mashantucket Pequot memorandum of understanding, and (2) any payment to the state made by the Mohegan Tribe of Indians of Connecticut, or a master wageringPublic licenseeAct onNo. behalf of said tribe, under section 17 or 18 of this act shall count toward the calculation of the minimum contribution for said tribe pursuant to the Mohegan memorandum of understanding.

(b)21-23 After37 the completion of the65 five-yearSubstitute periodHouse describedBill in subsection (a) of this section, (1) the obligation of the Mashantucket sHB6451 / File No.

7096451 sHB6451wagering Filelicensee No.on behalf of said tribe, under section 17 or 18 of this act shall count toward the calculation of the minimum contribution for said tribe pursuant to the Mohegan memorandum of understanding.

709(b) After the completion of the five-year period described in subsection (a) of this section, (1) the obligation of the Mashantucket Pequot Tribe to meet the minimum contribution shall continue as provided for in the Mashantucket Pequot memorandum of understanding, and the obligation of the Mohegan Tribe of Indians of Connecticut to meet the minimum contribution shall continue as provided for in the Mohegan memorandum of understanding, subject to any agreements entered into between the state and a tribe regarding the sources of payments that may be used to satisfy such minimum contribution, and (2) the state shall meet and confer in good faith with each tribe concerning which payments made to the state by each tribe should count toward each tribe's obligation.

(a)Public ForAct the purposes of this section, "tribe" means the Mashantucket Pequot Tribe and "compact" means the Tribal-State Compact between the tribe and the state of Connecticut, as incorporated and amended in the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the United States Department of the Interior pursuant to Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 56 Federal Register 24996 (May 31, 1991), as amended from sHB6451 / File No.

70921-23 sHB645138 Fileof 65 Substitute House Bill No.

7096451 (a) For the purposes of this section, "tribe" means the Mashantucket Pequot Tribe and "compact" means the Tribal-State Compact between the tribe and the state of Connecticut, as incorporated and amended in the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the United States Department of the Interior pursuant to Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 56 Federal Register 24996 (May 31, 1991), as amended from time to time, and includes any new compact entered into between the state and the tribe pursuant to section 2 of this act.

(2) "Mashantucket Pequot memorandum of understanding" means the memorandum of understanding entered into by and between the state and the Mashantucket Pequot Tribe on January 13, 1993, as amendedPublic onAct AprilNo. 30, 1993;

(3)21-23 "Mashantucket39 Pequot procedures" means the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the65 UnitedSubstitute StatesHouse DepartmentBill ofNo. the Interior pursuant to Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 56 Federal Register 24996 (May 31, 1991);

6451 amended on April 30, 1993;

(3) "Mashantucket Pequot procedures" means the Final Mashantucket Pequot Gaming Procedures prescribed by the Secretary of the United States Department of the Interior pursuant to Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in Federal Register 24996 (May 31, 1991);

sHB6451(5) /"Mohegan Filecompact" No.means the Tribal-State Compact entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994;

709 sHB6451 File No.

709 (5) "Mohegan compact" means the Tribal-State Compact entered into by and between the state and the Mohegan Tribe of Indians of Connecticut on May 17, 1994;

(B) The amendments to the Mashantucket Pequot procedures and the Mohegan compact shall include a provision that the authorization of MMCTPublic Venture,Act LLC,No. to conduct authorized games in the state does not terminate the moratorium against the operation of video facsimile gamesby theMashantucket Pequot Tribeand Mohegan TribeofIndians of Connecticut on each tribe's reservation.

21-23 40 of 65 Substitute House Bill No.

6451 MMCT Venture, LLC, to conduct authorized games in the state does not terminate the moratorium against the operation of video facsimile gamesby theMashantucket Pequot Tribeand Mohegan TribeofIndians of Connecticut on each tribe's reservation.

(2) The amendments to the Mashantucket Pequot procedures, the sHB6451Mashantucket /Pequot Filememorandum No.of understanding, the Mohegan compact and the Mohegan memorandum of understanding 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.

709 sHB6451 File No.

709 Mashantucket Pequot memorandum of understanding, the Mohegan compact and the Mohegan memorandum of understanding 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.

(A) That if MMCT Venture, LLC, fails to pay any fees or taxes due the state,Public theAct tribes,No. as the members of MMCT Venture, LLC, waive the possible defense of sovereign immunity with respect to any action or claim by the state against the tribes as the members of MMCT Venture, LLC,totheextentsuchactionorclaimispermittedtobe broughtagainst a member of a limited liability company under state law to collect any fees or taxes, while preserving any other defenses available to the tribes, and (B) that the venue for such action or claim shall be in the judicial district of Hartford.

(d)Suchauthorizationshallapply21-23 to41 MMCTVenture,LLC,provided:of 65 Substitute House Bill No.

6451 state, the tribes, as the members of MMCT Venture, LLC, waive the possible defense of sovereign immunity with respect to any action or claim by the state against the tribes as the members of MMCT Venture, LLC,totheextentsuchactionorclaimispermittedtobebroughtagainst a member of a limited liability company under state law to collect any fees or taxes, while preserving any other defenses available to the tribes, and (B) that the venue for such action or claim shall be in the judicial district of Hartford.

(d)Suchauthorizationshallapply to MMCTVenture, LLC,provided:

and (3) each tribe holds at least a twenty-five per cent equity interest in MMCT sHB6451Venture, /LLC. File No.

709 sHB6451 File No.

709 Venture, LLC.

(e) Notwithstanding the provisions of subsections (b) and (c) of this section, the authorization to conduct authorized games at a casino gamingfacilitypursuantgamingfacilitypursuanttosaidsubsectionsshallnotbeeffectiveduring tosaidsubsectionsshallnotbeeffectiveduring the ten-year initial term that amendments to the Mashantucket Pequot procedures and to the Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with the Mohegan Tribe of Indians of Connecticut, entered into pursuant to section 2 of this act are effective, as described in subdivision (3) of subsection (b) of section 2 of this act.

Sec.Public Act No.

21-23 42 of 65 Substitute House Bill No.

6451 Sec.

(b) Notwithstanding the provisions of subsection (a) of this section, the requirement to make a payment to the state pursuant to subsection (a) of this section shall not be effective during the ten-year initial term that amendments to the Mashantucket Pequot procedures and to the sHB6451Mashantucket /Pequot Filememorandum No.of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with the Mohegan Tribe of Indians of Connecticut, entered into pursuant to section 2 of this act are effective, as described in subdivision (3) of subsection (b) of section 2 of this act.

709 sHB6451 File No.

709 Mashantucket Pequot memorandum of understanding with the Mashantucket Pequot Tribe, or a new compact with the Mashantucket Pequot Tribe, and amendments to the Mohegan compact and to the Mohegan memorandum of understanding with the Mohegan Tribe of Indians of Connecticut, or a new compact with the Mohegan Tribe of Indians of Connecticut, entered into pursuant to section 2 of this act are effective, as described in subdivision (3) of subsection (b) of section 2 of this act.

(a) Notwithstanding the provisions of section 3-6c, the Secretary of the Office of Policy and Management, on behalf of the state of Connecticut, may enter into separate agreements with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut concerning the operation of keno by the Connecticut LotteryPublic CorporationAct inNo. the state of Connecticut.

21-23 43 of 65 Substitute House Bill No.

6451 Lottery Corporation in the state of Connecticut.

(c) For purposes of this section, "keno" means a lottery game in which a subset of numbers are drawn from a larger field of numbers by a sHB6451central /computer Filesystem No.using an approved random number generator, wheel system device or other drawing device.

709 sHB6451 File No.

709 central computer system using an approved random number generator, wheel system device or other drawing device.

As used in section 12-563a, as amended by this act, and sections 12- 800 to 12-818, inclusive, as amended by this act, the following terms [shall] have the following meanings unless the context clearly indicates another meaning:

(2) "Corporation" means the Connecticut Lottery Corporation as createdPublic underAct sectionNo. 12-802;

21-23 44 of 65 Substitute House Bill No.

6451 created under section 12-802;

[(5)] (7) "Keno" means a lottery game in which a subset of numbers are drawn from a larger field of numbers by a central computer system sHB6451using /an Fileapproved No.random number generator, wheel system device or other drawing device;

709 sHB6451 File No.

709 using an approved random number generator, wheel system device or other drawing device;

[and] (9)Public "OnlineAct sportsNo. wagering" has the same meaning as provided in section 1 of this act;

21-23 45 of 65 Substitute House Bill No.

6451 (9) "Online sports wagering" has the same meaning as provided in section 1 of this act;

(2) provide continuing and increased revenue to the people of the state through the lottery, and retail sports wagering, online sports wagering and fantasy contests if licensed pursuant to section 4 of this act, by being responsive to market sHB6451forces /and Fileacting No.generally as a corporation engaged in entrepreneurial pursuits;

709 sHB6451 File No.

709 forces and acting generally as a corporation engaged in entrepreneurial pursuits;

(1)Public ToAct receiveNo. 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)21-23 To46 operate and manage the lottery consistent with the provisions of sections65 1-120,Substitute 1-121,House 1-125,Bill 12-563,No. 12-563a, as amended by this act, 12-564, 12-566, 12-568a and12-569, subsection (c)of section12-574, [and] sections 12-800 to 12-818, inclusive, as amended by this act, and section 4 of this act, and as specifically provided in section 12-812, as amended by this act;

6451 (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, as amended by this act, 12-564, 12-566, 12-568a and12-569, subsection (c)of section12-574, [and] sections 12-800 to 12-818, inclusive, as amended by this act, and section of this act, and as specifically provided in section 12-812, as amended by this act;

(4) (A) To introduce new lottery games, modify existing lottery games, utilize existing and new technologies, determine distribution channelsforthesaleoflotterytickets,introducekenopursuanttosigned agreements with the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of Connecticut, in accordance with section 12-806c, as amended by this act, or pursuant to section 4 of this act, and, to the extent specifically authorized by regulations adopted by the sHB6451Department /of FileConsumer No.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;

709[, sHB6451except Filethat the corporation shall not offer any interactive on-line lottery games, including on-line video lottery games for promotional purposes;] and (B) To sell tickets for lottery draw games through the corporation's Public Act No.

70921-23 Department47 of Consumer65 ProtectionSubstitute pursuantHouse toBill chapterNo. 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;

[,6451 except that the corporation shall not offer any interactive on-line lottery games, including on-line video lottery games for promotional purposes;] and (B) To sell tickets for lottery draw games through the corporation's Internet web site, online service or mobile application in accordance with section 4 of this act and to advertise lottery games on the corporation's Internet web site, online service or mobile application, except the corporation shall not offer any interactive lottery game, including for promotional purposes;

(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, and retail sports wagering, online sports wagering and fantasy contests if licensed pursuant to section 4 of this act, 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 sHB6451deems /necessary Fileand No.appropriate;

709 sHB6451 File No.

709 deems necessary and appropriate;

(10)Public ToAct retainNo. 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;

21-23 48 of 65 Substitute House Bill No.

6451 (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;

sHB6451(14) /In Filethe No.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;

709Public sHB6451Act File No.

70921-23 (14)49 In the event that the operation or management of the65 corporationSubstitute becomesHouse subjectBill toNo. the federal gaming occupation tax, to pay such tax on behalf of lottery sales agents and to assist agents subject thereto;

6451 (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;

to engage consultants,accountants,attorneysandfinancialandotherconsultants,accountants, attorneysandfinancialandother independent professionals as may be necessary or desirable to assist the corporation in performing its purposes in accordance with sections 12-563a, as amended by this act, [and] 12-800 to 12-818, inclusive, as amended by this act, and sections 4, 5, 14 to 16, inclusive, 18 and 19 of this act;

sHB6451(20) /To Filemake and enter into all contracts and agreements necessary Public Act No.

70921-23 sHB645150 Fileof 65 Substitute House Bill No.

7096451 (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, as amended by this act, [and] 12-800 to 12-818, inclusive, as amended by this act, and sections 4, 5, 14 to 16, inclusive, 18 and 19 of this act;

and] as amendedPublic byAct this act, and sections 4, 5, 14 to 16, inclusive, 18 and 19 of sHB6451 / File No.

70921-23 sHB645151 Fileof 65 Substitute House Bill No.

7096451 amended by this act, and sections 4, 5, 14 to 16, inclusive, 18 and 19 of this act;

and [(28)] (30) To exercise any powers necessary to carry out the purposes of sections 12-563a, as amended by this act, [and] 12-800 to 12-818, inclusive, as amended by this act, and sections 4, 5, 14 to 16, inclusive, 18 and 19 of this act.

Section 12-810 of the general statutes is repealed and the followingPublic isAct substitutedNo. in lieu thereof (Effective July 1, 2021):

(a)21-23 The52 Freedom of Information65 Act,Substitute asHouse definedBill in section 1-200, shall sHB6451 / File No.

7096451 sHB6451following Fileis No.substituted in lieu thereof (Effective July 1, 2021):

709(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, (3) with respect to any personally identifying, financial, credit or wagering information associated with any person's account for Internet games, as defined in section 1 of this act, and (4) where otherwise limited by subsection (d) of this section as to information submitted by any person to the corporation regarding such person's participation in the voluntary self-exclusion process established pursuant to subdivision (5) of subsection (c) of section 13 of this act.

(b)Therecordsofproceedingsasprovidedinsubsection(a)ofsection(b)Therecordsofproceedingsasprovided insubsection(a)ofsection 12-805 shall be subject to disclosure pursuant to the provisions of subsection (a) of section 1-210.

(d) The name and any personally identifying information of a person who is participating or who has participated in the corporation's voluntaryPublic self-exclusionAct process shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of the Freedom of Information Act, as defined in section 1-200, except that the president may disclose the name and any relevant records of such person, other than records regarding such person's sHB6451 / File No.

70921-23 sHB645153 Fileof 65 Substitute House Bill No.

7096451 voluntary self-exclusion process shall not be deemed public records, as defined in section 1-200, and shall not be available to the public under the provisions of the Freedom of Information Act, as defined in section 1-200, except that the president may disclose the name and any relevant records of such person, other than records regarding such person's participation in the voluntary self-exclusion process, if such person claims a winning lottery ticket from the purchase of a ticket for a lottery draw game through the corporation's Internet web site, online service or mobile application or if such person claims or is paid a winning wager from online sports wagering or retail sports wagering or is paid a prize from a fantasy contest.

(a) (1) 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 the conductPublic ofAct multistateNo. lottery games.

21-23 54 of 65 Substitute House Bill No.

6451 conduct of multistate lottery games.

sHB6451(2) /The Filepresident No.of the corporation, subject to the direction of the board, shall conduct retail sports wagering, online sports wagering and fantasy contests, if licensed to do so pursuant to section 4 of this act.

709The sHB6451proceeds Fileof No.such wagering and contest activities shall be deposited in the lottery and gaming fund of the corporation from which winnings shall be paid and from which the payments required by sections 18 and of this act shall be made.

709 (2) The president of the corporation, subject to the direction of the board, shall conduct retail sports wagering, online sports wagering and fantasy contests, if licensed to do so pursuant to section 4 of this act.

The proceeds of such wagering and contest activities shall be deposited in the lottery and gaming fund of the corporation from which winnings shall be paid and from which the payments required by sections 18 and 19 of this act shall be made.

The corporation shall transfer the amount so certified from the lottery and gaming fund of the corporation to the General Fund upon notification of receipt of such certification by the Treasurer, except that if the amount on deposit in the Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve Fund, established in section 10-183vv, is less than the required minimum capital reserve, as defined in subsection (b) of said section, the corporation shall pay such amount so certified to the trustee of the fundPublic forAct depositNo. in the fund.

21-23 55 of 65 Substitute House Bill No.

6451 fund for deposit in the fund.

The exercise of the powers granted by sections 1-120, 1-121, 1-125, 12- sHB6451563, /12-563a, Fileas No.amended by this act, 12-564, 12-566, 12-568a and 12-569, subsection (c) of section 12-574, [and] sections 12-800 to 12-818, inclusive, as amended by this act, and sections 4, 5, 14 to 16, inclusive, and 18 and 19 of this act constitute the performance of an essential governmentalfunctionandalloperationsofthecorporationshallbefree from any form of federal or state taxation.

709 sHB6451 File No.

709 563, 12-563a, as amended by this act, 12-564, 12-566, 12-568a and 12-569, subsection (c) of section 12-574, [and] sections 12-800 to 12-818, inclusive, as amended by this act, and sections 4, 5, 14 to 16, inclusive, and 18 and 19 of this act constitute the performance of an essential governmentalfunctionandalloperationsofthecorporationshallbefree from any form of federal or state taxation.

For the fiscal years ending June 30, 2012,Public toAct JuneNo. 30, 2013, inclusive, the Connecticut Lottery Corporation shall transfer one million nine hundred thousand dollars of the revenue received from the sale of lottery tickets to the chronic gamblers treatment rehabilitation account created pursuant to section 17a-713.] (a) For the fiscal year ending June 30, 2014, and each fiscal year thereafter, the Connecticut Lottery Corporation shall transfer two million three hundred thousand dollars of the revenue received from thesaleoflotteryticketstothechronicgamblerstreatmentrehabilitation account created pursuant to section 17a-713, as amended by this act.

(b)21-23 In56 addition to the amount transferred pursuant to subsection (a) of this65 section,Substitute theHouse ConnecticutBill Lottery Corporation shall transfer one sHB6451 / File No.

7096451 sHB64512012, Fileto No.June 30, 2013, inclusive, the Connecticut Lottery Corporation shall transfer one million nine hundred thousand dollars of the revenue received from the sale of lottery tickets to the chronic gamblers treatment rehabilitation account created pursuant to section 17a-713.] (a) For the fiscal year ending June 30, 2014, and each fiscal year thereafter, the Connecticut Lottery Corporation shall transfer two million three hundred thousand dollars of the revenue received from thesaleoflotteryticketstothechronicgamblerstreatmentrehabilitation account created pursuant to section 17a-713, as amended by this act.

709(b) In addition to the amount transferred pursuant to subsection (a) of this section, the Connecticut Lottery Corporation shall transfer one million dollars of the revenue received from retail sports wagering, online sports wagering and fantasy contests to the chronic gamblers treatment rehabilitation account created pursuant to section 17a-713, as amended by this act, in each fiscal year that the corporation is licensed to operate retail sports wagering, online sports wagering or fantasy contests pursuant to section 4 of this act.

For purposesofthis section,aninterest doesnot include ownership of investment securities in a publicly held corporation that is traded on a national exchange or over-the-counter market, provided the investmentPublic securitiesAct heldNo. by such person and such person's spouse, parent andchild,intheaggregate, donotexceedone-halfofonepercent of the total number of shares issued by such corporation.

21-23 57 of 65 Substitute House Bill No.

6451 investment securities held by such person and such person's spouse, parent andchild,intheaggregate, donotexceedone-halfofonepercent of the total number of shares issued by such corporation.

For purposes of this section, "unit head" means a managerial employee with direct oversight of a legalized sHB6451gambling /activity. File No.

709 sHB6451 File No.

709 gambling activity.

AllPublic wagers,Act and all contracts and securities ofwhich the whole or any part of the consideration is money or other valuable thing won, laid or bet, at any game, horse race, sport or pastime, and all contracts to repay any money knowingly lent at the time and place of such game, race, sport or pastime, to any person so gaming, betting or wagering, or to repay any money lent to any person who, at such time and place, so pays, betsor wagers, shallbevoid,provided nothing inthissectionshall (1) affect the validity of any negotiable instrument held by any person who acquired the same for value and in good faith without notice of illegality in the consideration, (2) apply to the sale of a raffle ticket pursuant to section 7-172, (3) apply to online casino gaming, online sports wagering, retail sports wagering and fantasy contests, as such terms are defined in section 1 of this act, and conducted pursuant to sections 3 to 16, inclusive, of this act, as applicable, (4) apply to the operation of keno through or the purchase of tickets for lottery draw games through the Internet web site, online service or mobile application of the Connecticut Lottery Corporation, pursuant to section sHB6451 / File No.

70921-23 sHB645158 Fileof 65 Substitute House Bill No.

7096451 4All wagers, and all contracts and securities ofwhich the whole or any part of the consideration is money or other valuable thing won, laid or bet, at any game, horse race, sport or pastime, and all contracts to repay any money knowingly lent at the time and place of such game, race, sport or pastime, to any person so gaming, betting or wagering, or to repay any money lent to any person who, at such time and place, so pays, betsor wagers, shallbevoid,providednothing inthissectionshall (1) affect the validity of any negotiable instrument held by any person who acquired the same for value and in good faith without notice of illegality in the consideration, (2) apply to the sale of a raffle ticket pursuant to section 7-172, (3) apply to online casino gaming, online sports wagering, retail sports wagering and fantasy contests, as such terms are defined in section 1 of this act, and conducted pursuant to sections 3 to 16, inclusive, of this act, as applicable, (4) apply to the operation of keno through or the purchase of tickets for lottery draw games through the Internet web site, online service or mobile application of the Connecticut Lottery Corporation, pursuant to section of this act, or [(3)] (5) apply to any wager or contract otherwise authorized by law.

If the defendant refuses to testify, if called upon in such action, relative to the discovery of the property so won,Public [he]Act theNo. defendant shall be defaulted;

21-23 59 of 65 Substitute House Bill No.

6451 won, [he] the defendant shall be defaulted;

Legal contests of skill, speed, strength or sHB6451endurance /in Filewhich No.awards are made only to entrants or the owners of entries;

709 sHB6451 File No.

709 endurance in which awards are made only to entrants or the owners of entries;

[Fantasy contests, as defined in section 12-578aa shall not be considered gambling, provided the conditions set forth in subsection (b) of section 12-578aa have been met and the operator of such contests is registered pursuant to subdivision (1) of subsection (d) of section 12-578aa] Online casino gaming, online sports wagering, retail sports wagering and fantasy contests, as such terms are defined in section 1 of this act, shall notPublic beAct consideredNo. gambling if the online casino gaming, online sports wagering, retail sports wagering or fantasy contest is conducted pursuant to sections 3 to 16, inclusive, of this act;

21-23 60 of 65 Substitute House Bill No.

6451 not be considered gambling if the online casino gaming, online sports wagering, retail sports wagering or fantasy contest is conducted pursuant to sections 3 to 16, inclusive, of this act;

[A device or equipment used to play fantasy contests, as defined in sHB6451section /12-578aa, Fileshall No.not be considered a gambling device, provided the conditions set forth in subsection (b) of section 12-578aa have been met] A device or equipment used to participate in online casino gaming, online sports wagering, retail sports wagering or fantasy contests, as such terms are defined in section 1 of this act, shall not be considered a gambling device if the conditions set forth in sections 3 to 16, inclusive, of this act, as applicable, have been met;

709 sHB6451 File No.

709 section 12-578aa, shall not be considered a gambling device, provided the conditions set forth in subsection (b) of section 12-578aa have been met] A device or equipment used to participate in online casino gaming, online sports wagering, retail sports wagering or fantasy contests, as such terms are defined in section 1 of this act, shall not be considered a gambling device if the conditions set forth in sections 3 to 16, inclusive, of this act, as applicable, have been met;

(a)Public NothingAct inNo. sections 53-278a to 53-278f, inclusive, as amended by this act, shall be construed to prohibit the publication of an advertisement of, or the operation of, or participation in, a state lottery, pari-mutuel betting at race tracks licensed by the state, off-track betting conducted by the state or a licensee authorized to operate the off-track betting system, authorized games at a casino gaming facility, online casino gaming, online sports wagering, retail sports wagering, and fantasy contests as authorized by sections 3 to 16, inclusive, of this act, a promotional drawing for a prize or prizes, conducted for advertising purposes by any person, firm or corporation other than a retail grocer or retail grocery chain, wherein members of the general public may participate without making any purchase orotherwise paying or risking credit, money, or any other tangible thing of value or a sweepstakes conducted pursuant to sections 42-295 to 42-301, inclusive.

21-23 61 of 65 Substitute House Bill No.

6451 (a) Nothing in sections 53-278a to 53-278f, inclusive, as amended by this act, shall be construed to prohibit the publication of an advertisement of, or the operation of, or participation in, a state lottery, pari-mutuel betting at race tracks licensed by the state, off-track betting conducted by the state or a licensee authorized to operate the off-track betting system, authorized games at a casino gaming facility, online casino gaming, online sports wagering, retail sports wagering, and fantasy contests as authorized by sections 3 to 16, inclusive, of this act, a promotional drawing for a prize or prizes, conducted for advertising purposes by any person, firm or corporation other than a retail grocer or retail grocery chain, wherein members of the general public may participate without making any purchase orotherwise paying or risking credit, money, or any other tangible thing of value or a sweepstakes conducted pursuant to sections 42-295 to 42-301, inclusive.

Any personreceiving such training or testing such device may use sHB6451any /such Filedevice No.in the course of such training or testing.

709 sHB6451 File No.

709 any such device in the course of such training or testing.

(c) Any casino gaming facility, or its agents, may use and possess at any location within the state, solely for the purpose of training individualsPublic inAct skillsNo. required for employment by the casino gaming facility or testing a gambling device, any gambling device which the casino gaming facility may use for conducting authorized games at the casino gaming facility, provided no money or other thing of value shall be paid to any person as a result of the operation of such gambling device in the course of such training or testing at locations outside of the casino gaming facility.

21-23 62 of 65 Substitute House Bill No.

6451 individuals in skills required for employment by the casino gaming facility or testing a gambling device, any gambling device which the casino gaming facility may use for conducting authorized games at the casino gaming facility, provided no money or other thing of value shall be paid to any person as a result of the operation of such gambling device in the course of such training or testing at locations outside of the casino gaming facility.

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, as amended by this act, annually shall be set aside for contracts with subregional planning and action councils establishedpursuant to section17a-671andnonprofitorganizationsand not less than five per cent of the amount received pursuant to section 12-818, as amended by this act, annually shall be set aside for a contract sHB6451with /the FileConnecticut No.Council on Problem Gambling.

709 sHB6451 File No.

709 with the Connecticut Council on Problem Gambling.

The department shall implement such program when the account established under subsection (b) of this section is sufficient to meet initial operating expenses.Asusedinthissection,"chronicgambler"meansapersonwhoPublic isAct chronicallyNo. and progressively preoccupied with gambling and the urge to gamble, and with gambling behavior that compromises, disrupts or damages personal, family or vocational pursuits.

21-23 63 of 65 Substitute House Bill No.

6451 expenses.Asusedinthissection,"chronicgambler"meansapersonwho is chronically and progressively preoccupied with gambling and the urge to gamble, and with gambling behavior that compromises, disrupts or damages personal, family or vocational pursuits.

(Effective July 1, 2021) Notwithstanding the provisions of section 1-3 of the general statutes, if any provision of sections 1 to 22, inclusive, of this act, any amendment made to the provisions of the general statutes pursuant to this act, or any provision of an amendment sHB6451or /new Filecompact entered into pursuant to section 2 of this act is held invalid by a court of competent jurisdiction in a final judgment which is not appealable, (1) the provisions of sections 1 to 22, inclusive, of this act Public Act No.

70921-23 sHB645164 Fileof 65 Substitute House Bill No.

7096451 or new compact entered into pursuant to section 2 of this act is held invalid by a court of competent jurisdiction in a final judgment which is not appealable, (1) the provisions of sections 1 to 22, inclusive, of this act shall cease to be effective, (2) the amendments made to the provisions of the sections of the general statutes pursuant to this act shall be inoperative, and (3) keno may be operated under the agreements that were entered into pursuant to section 12-806c of the general statutes, as amended by this act, and in effect on April 1, 2021.

(Effective July 1, 2021) ThisApproved actMay shall27, take2021 effectPublic asAct followsNo. and shall amend the following sections:

from21-23 passage65 Sectionof 165 New section Sec.

2 from passage New section Sec.

3 July 1, 2021 New section Sec.

4 July 1, 2021 New section Sec.

5 July 1, 2021 New section Sec.

6 July 1, 2021 New section Sec.

7 July 1, 2021 New section July 1, 2021 Sec.

8 New section Sec.

9 July 1, 2021 New section Sec.

10 July 1, 2021 New section Sec.

11 July 1, 2021 New section Sec.

12 July 1, 2021 New section Sec.

13 July 1, 2021 New section Sec.

14 July 1, 2021 New section Sec.

15 July 1, 2021 New section Sec.

16 July 1, 2021 New section Sec.

17 July 1, 2021 New section Sec.

18 July 1, 2021 New section Sec.

19 July 1, 2021 New section Sec.

20 July 1, 2021 New section Sec.

21 July 1, 2021 New section Sec.

22 July 1, 2021 New section Sec.

23 July 1, 2021 12-586f(a) Sec.

24 July 1, 2021 12-586g(a) sHB6451 / File No.

709 sHB6451 File No.

709 Sec.

25 July 1, 2021 12-578f Sec.

26 July 1, 2021 12-578j Sec.

27 July 1, 2021 12-806c Sec.

28 July 1, 2021 12-801 Sec.

29 July 1, 2021 12-806 Sec.

30 July 1, 2021 12-806a Sec.

31 July 1, 2021 12-810 Sec.

32 July 1, 2021 12-811 Sec.

33 July 1, 2021 12-812 Sec.

34 July 1, 2021 12-816 Sec.

35 July 1, 2021 12-818 Sec.

36 July 1, 2021 12-561 Sec.

37 July 1, 2021 12-563a July 1, 2021 Sec.

38 52-553 Sec.

39 July 1, 2021 52-554 Sec.

40 July 1, 2021 53-278a(2) Sec.

41 July 1, 2021 53-278a(4) Sec.

42 July 1, 2021 53-278g Sec.

43 July 1, 2021 17a-713 Sec.

44 July 1, 2021 New section July 1, 2021 Sec.

45 Repealer section sHB6451 / File No.

709 sHB6451 File No.

709 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ FY 23 $ Connecticut Lottery Corporation Lottery 14.6-19.6 14.6-19.6 Enterprise Fund - million million Potential Cost Consumer Protection, Dept.

State Sports 2.4-3.5 2.2-3.3 Wagering and million million Online Gaming Regulatory Fund - Potential Cost Consumer Protection, Dept.

State Sports 2.4-3.5 2.2-3.3 Wagering and million million Online Gaming Regulatory Fund - Potential Revenue Gain Mental Health & Addiction Chronic Up to 1.5 Up to 1.5 Serv., Dept.

Gamblers Fund - million million Potential Revenue Gain Resources of the General Fund GF - Potential See Below See Below Revenue Gain Note:

GF=General Fund Municipal Impact:

None Explanation The bill, which legalizes, regulates, and taxes expanded gaming in sHB6451 / File No.

709 63 sHB6451 File No.

709 the state, results in the following fiscal impacts:

Potential Revenue Impacts Sections 1-5, 18, and 37 authorize and tax sports wagering which results in a potential General Fund revenue gain of up to $19.3 million in FY 22 and $21.1 million in FY 23.

It is estimated that annual potential General Fund revenues could grow to $24.8 million by FY 26.

Sections 1-3, and 17 authorize and tax online casino gaming by the tribes which results in a potential General Fund revenue gain of up to $8.6 million in FY 22 and $11.4 million in FY 23.

It is estimated that annual potential General Fund revenues could grow to $28.1 million by FY 26.

Sections 3-13 require the Department of Consumer Protection (DCP) to issue various new licenses and issue fines for violations resulting in a potential revenue gain to the General Fund and to the State Sports Wagering and Online Gaming Regulatory Fund to the extent licenses and fines are issued.

The fees for certain licenses are deposited into the Sports Wagering and Online Gaming Regulatory Fund.

All other license fees and revenue from violations are deposited into the General Fund.

Sections 4 and 29 authorize online lottery draw games by the Connecticut Lottery Corporation (CLC) which results in a potential revenue gain of up to $2 million in FY 22 and $3 million in FY 23.

It is estimated that annual potential General Fund revenues could grow to The bill's provisions are subject to several conditions, including that the governor must first enter into specific contractual agreements with the Mashantucket Pequot and Mohegan tribes, which must then be approved or deemed approved by the U.S.

Department of Interior secretary, pursuant to the federal Indian Gaming Regulatory Act and its implementing regulations.

Consequently, all impacts are potential in nature.

Under the bill, the CLC is subject to the same 13.75% tax on gross gaming revenue from sports betting that applies to the tribes.

However, it is unclear what effect this would have as the CLC transfers all net revenue to the General Fund after paying all agency expenses (which presumably would include this tax).

sHB6451 / File No.

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709 $19 million by FY 26.

Sections 1, 4, and 27-28 authorize online keno by the CLC which results in a potential General Fund revenue gain of up to $0.7 million in FY 22 and $0.9 million in FY 23.

It is estimated that annual potential General Fund revenues could grow to $2.1 million by FY 26.

Section 19 establishes a 13.75% tax on gross receipts that each tribe and the CLC must pay to the General Fund for the operation of fantasy contests.

This results in a potential revenue gain to the General Fund beginning in FY 22.

Section 22 results in a potential revenue gain to the chronic gamblers treatment account to the extent that the tribes choose to contribute the required $500,000 annual contribution to that account.

Sections 25 and 26 delay the authorization of an off-reservation casino gaming facility in East Windsor and suspends a provision requiring a $30 million, interest-free advance to the state.

This does not result in any fiscal impact as no such revenue is anticipated in current revenue projections.

Sections 35 and 43 increase the amount of CLC revenue to be deposited in the chronic gamblers treatment rehabilitation account.

This results in a potential General Fund revenue loss of $1 million, and a commensurate revenue gain to the chronic gamblers treatment rehabilitation account, annually beginning in FY 22.

Potential Cost Impacts Sections 4-5 allow the Connecticut Lottery Corporation (CLC) to offer mobile and retail sports betting, online keno, and online lottery draw games resulting in a potential cost of $14.6-$19.6 million per year to the Lottery Enterprise Fund.

To meet the requirements of the bill, CLC will need to hire approximately 20 new employees ($3.3 million cost for salary and fringe benefits) for marketing, finance, IT, and security for sports betting and the new lottery games being offered.

sHB6451 / File No.

709 65 sHB6451 File No.

709 The CLC will also need to partner with vendors (estimated $11.3- $16.3 million cost per year) to provide gaming systems and platforms, player account management systems, audit and regulatory expenses, and marketing services.

The exact cost will depend upon the contracts between the CLC and the vendors.

Section 20 requires DCP to assess the holder of any master wagering license for the regulatory costs the department will incur resulting in a revenue gain and a corresponding cost to theState Sports Wagering and Online Gaming Regulatory Fund established by the bill.

DCP will incur a regulatory cost of $2.4–$3.5 million in FY 22 and $2.2-$3.3 million in FY 23 to hire 15-24 full-time employees and one durational employee to meet the requirements of the bill.

The assessment costs that DCP will charge will be made in consultation with the tribes and any holder of a master wagering license and the parties being assessed may request a hearing if they are aggrieved by an assessment.

The annual regulatory costs will be assessed to the Tribes and CLC, subject to negotiation and approval.

House "A" strikes the underlying bill and replaces it with the fiscal impacts described above.

The Out Years The annualized ongoing cost impacts identified above would continue into the future subject to inflation.

The annualized ongoing revenue impacts would continue into the future subject to growth in the gaming activities authorized under the bill, and an increase in the tax rate on online gaming to 20% beginning with the sixth year of operation as specified in the bill.

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709 OLR Bill Analysis sHB 6451 (as amended by House "A")* AN ACT CONCERNING GAMING AGREEMENTS WITH THE MASHANTUCKET PEQUOT TRIBE AND THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT.

SUMMARY This bill establishes new frameworks for legalizing and regulating (1) in-person and online sports wagering, (2) online casino gaming, (3) in- person and online keno, (4) online lottery draw games other than keno, and (5) fantasy contests.

These frameworks are subject to several conditions, principally that the governor must first enter into specific contractual agreements with the Mashantucket Pequot and Mohegan tribes.TheseagreementsmustthenbeapprovedbytheU.S.Department of Interior (DOI) secretary and published in the Federal Register, pursuant to the federal Indian Gaming Regulatory Act (IGRA) and its implementing regulations.

The bill generally authorizes the tribes and the Connecticut Lottery Corporation (CLC) to operate these games subject to specific requirements, including limiting the authorizations to an initial 10-year period with an option for a five-year renewal.

The bill specifically allows the tribes to conduct the following wagering and gaming:

on the tribes’ reservations, in-person and online sports wagering as well as fantasy contests;

outside the tribes’ reservations, one skin for online sports wagering, one skin for online casino gaming, and fantasy contests.

(Under the bill, a “skin” is a brand or cobranded name and logo on a website or mobile application for enabling certain online games.) Under the bill, CLC is authorized to conduct in-person and online sHB6451 / File No.

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709 sports wagering, online keno, and online lottery draw games.

It may specifically conduct in-person sports wagering at up to fifteen facilities, which may be licensed off-track betting (OTB) facilities (i.e., Sportech Venues, Inc.) pursuant to an operating agreement.

The bill assigns several regulatory responsibilities to the Department of Consumer Protection (DCP), including adopting specific regulations, establishing and maintaining multiple new gaming licenses, and investigating and enforcing the bill’s provisions.

Additionally, the bill requires monthly payments from the tribes and CLC to the General Fund ranging from 13.75% to 20% of gross revenues from sports wagering, online casino gaming, and fantasy contests, and annual payments of $500,000 from each tribe and $1 million from the CLC towards certain problem gambling accounts or programs.

The bill also delays the authorization for an off-reservation casino gaming facility in East Windsor for 10 years and makes technical and conforming changes.

*House Amendment “A” strikes the underlying bill and replaces it with similar provisions that, among other things:

(1) prohibit sports wagering on games involving Connecticut intercollegiate teams except for tournaments;

(2) prevent sovereign immunity defenses from being raised by the tribes and their affiliates;

(3) establish five license classes for people and businesses that contract with the tribes and CLC to provide the bill’s gaming activities;

(4) authorize DCP to issue emergency regulations;

(5) require licensees to take specific actions related to responsible play;

(6) limit the ability of athletes, coaches, and others to place sports wagers;

and (7) require annual contributions by the tribes and CLC towards problem gambling programs.

EFFECTIVE DATE:

July 1, 2021, except provisions defining terms and authorizing the governor to reach amended or new agreements with the tribes are effective upon passage.

DEFINITIONS, STATE-TRIBAL AGREEMENTS & SEVERABILITY sHB6451 / File No.

709 68 sHB6451 File No.

709 Gaming Definitions (§ 1) Under the bill, “sports wagering” means risking or accepting any money, credit, deposit, or other thing of value for gain contingent in whole or in part on (1) all or part of a live sporting event, including future or propositional events during the sporting event, or (2) the individual performance statistics of an athlete or athletes in a sporting event or combination of events.

“Sports wagering” does not include the fees for participating in fantasy contests or e-sports.

The bill allows sports wagering to be done in-person or over the Internet through a website or mobile device.

“Sporting event” generally means any:

1.

sporting or athletic event where two or more people participate, individually or on a team, and receive compensation in excess of actual expenses for their participation;

2.

sporting or athletic event sponsored by a higher education institution’s intercollegiate athletic program or an association of intercollegiate athletic programs;

3.

Olympic or international sports competition event;

or 4.

“e-sports” (i.e., electronic sports and competitive video games played as a game of skill) events.

“Sporting event” does not include horse racing, jai alai, or greyhound racing.

It also does not include intercollegiate sporting, athletic, and e- sport events that involve a Connecticut intercollegiate team (i.e., a Connecticut public university or college or independent institution of higher education team, or a team for a for-profit college or university physically located inConnecticut that offersin-personclasseswithinthe state) unless (1) four or more intercollegiate teams are involved and (2) wagers on the tournament are based on the outcome of all the tournament’s games.

“Online casino gaming” means the following games conducted over sHB6451 / File No.

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709 the Internet:

(1) slots, blackjack, craps, roulette, baccarat, poker and video poker, bingo, live dealer, other peer-to-peer games, and any variations of these games and (2) any games authorized by the Department of Consumer Protection (DCP).

“Keno” is a lottery game where a subset of numbers is drawn from a larger fieldofnumbersby a centralcomputer systemusing anapproved number generator, wheel system device, or other drawing device.

“Lottery draw game” is any game where one or more numbers, letters, or symbols are randomly drawn at predetermined times, but not more frequentlythanonce every fourminutes, fromarange ofnumbers, letters, or symbols;

and prizes are paid to players possessing winning plays as set forth in each game’s official game rules.

“Lottery draw game” does not include (1) keno, (2) any game involving lottery draw tickets that are not available through a lottery sales agent, or (3) any game that simulates online casino gaming.

“Fantasy contest” is any fantasy or simulated game or contest (excluding lottery games) conducted over the Internet, including through a website or mobile device, in which:

1.

players pay an entry fee;

2.

thevalueofallprizesandawardsisestablishedandmadeknown to players before the game or contest;

3.

all winning outcomes reflect player knowledge and skill and are determined predominantly by accumulated statistical results of participants’ performance in events;

and 4.

the winning outcome is not based on the score, point spread, or any performance of any single team or combination of teams or solely on any single performance of a contestant or player in a single event.

Lastly, “Internet games” means (1) online casino gaming;

(2) online sports wagering;

(3) fantasy contests;

(4) keno through the Internet, an sHB6451 / File No.

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and (5) the sale of lottery draw game tickets through the Internet, an online service, or a mobile application.

State-Tribal Agreement Provisions and Requirements (§§ 1 & 2) The bill authorizes the governor to enter into (1) amendments to the existing Mashantucket Pequot procedures, Mohegan compact, and related memoranda of understanding (MOUs) with each tribe (see BACKGROUND) and (2) new compacts with the tribes (“State-Tribal agreements”).

These agreements must contain a series of five multi-part provisions.

First, they must permit each tribe to conduct on their tribal reservations (1) in-person sports wagering;

(2) online sports wagering, so long as the wagers are placed by people physically present on the reservations;

and (3) fantasy contests, so long as the entry fees are paid by participants physically present on the reservations.

Second, the agreements must provide that gaming activities authorized under the bill will not terminate the existing video facsimile moratorium and do not relieve the tribes from their obligations to contribute a percentage of their gross operating revenues from video facsimile games to the state as provided in each tribe’s MOU (see BACKGROUND).

This second provision applies if state law at any time authorizes (1) each tribe to conduct the in-person and online sports wagering andfantasy contestsdescribedabove;

(2) eachtribe to operate, outside of the tribes’ reservations, one skin for online sports wagering, one skin for online casino gaming, and fantasy contests;

and (3) CLC to operate certain games.

These games are generally as follows, subject to specific conditions (see below):

1.

retail sports wagering at up to 15 facilities throughout the state (for the purposes of the bill, “retail sports wagering” refers to in- person sports wagering conducted in connection with CLC);

2.

one skin for online sports wagering;

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709 3.

fantasy contests;