Regular Session 2015-2016 House Bill 0920 P.N. 1110

PRINTER'S NO. 1110

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

920

Session of

2015

INTRODUCED BY DAVIS, COHEN, KINSEY, DONATUCCI, BROWNLEE,

DAVIDSON, CALTAGIRONE, DeLUCA, KORTZ, M. DALEY AND McNEILL,

APRIL 6, 2015

REFERRED TO COMMITTEE ON GAMING OVERSIGHT, APRIL 6, 2015

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

Statutes, in general provisions, further providing for

definitions, in Pennsylvania Gaming Control Board, further

providing for general and specific powers, for slot machine

licensee application appeals from board, for board minutes

and records, for regulatory authority of board, for reports

of board, for diversity goals of board, for Category 3 slot

machine license, for supplier licenses and for manufacturer

licenses; providing for Internet gaming; in administration

and enforcement, further providing for responsibility and

authority of the Department of Revenue, for wagering on

credit, for compulsive and problem gambling program, for

financial and employment interest, for regulation requiring

exclusion or ejection of certain persons, for repeat

offenders excludable from licensed gaming facility, for list

of persons self excluded from gaming activities, for

investigations and enforcement and for prohibited acts and

penalties; in miscellaneous provisions, further providing for

appropriations; and making an editorial change.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The definitions of "associated equipment," "cash

equivalent," "cheat," "cheating or thieving device," "conduct of

gaming," "contest," "counterfeit chip," "gaming employee,"

"gaming school," "key employee," "licensed facility," "rake,"

"supplier," "supplier license" and "table game" in section 1103

of Title 4 of the Pennsylvania Consolidated Statutes are amended

and the section is amended by adding definitions to read:

§ 1103. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Associated equipment." Any equipment or mechanical,

electromechanical or electronic contrivance, component or

machine used in connection with slot machines or table games,

including linking devices which connect to progressive slot

machines or slot machines, replacement parts, equipment which

affects the proper reporting and counting of gross terminal

revenue [and], gross table game revenue and gross Internet

gaming revenue, computerized systems for controlling and

monitoring slot machines [or], table games or Internet games,

including, but not limited to, the central control computer to

which all slot machines communicate [and], devices for weighing

or counting money and Internet gaming devices necessary for the

operation of Internet games as approved by the Pennsylvania

Gaming Control Board.

* * *

"Authorized Internet game." A table game, slot machine or

any other game approved by regulation of the Pennsylvania Gaming

Control Board to be suitable for use for Internet gaming

activities offered by a slot machine licensee in accordance with

the requirements of Chapter 13B (relating to Internet gaming).

* * *

"Cash equivalent." An asset that is readily convertible to

cash, including, but not limited to, any of the following:

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(1) Chips or tokens.

(2) Travelers checks.

(3) Foreign currency and coin.

(4) Certified checks, cashier's checks and money orders.

(5) Personal checks or drafts.

(6) A negotiable instrument applied against credit

extended by a certificate holder, an Internet gaming

certificate holder or a financial institution.

(7) Any other instrument or representation of value that

the Pennsylvania Gaming Control Board deems a cash

equivalent.

* * *

"Certificate." An Internet gaming certificate issued to a

slot machine licensee in accordance with section 13B13 (relating

to issuance of Internet gaming certificate).

* * *

"Cheat." To defraud or steal from any player, slot machine

licensee or the Commonwealth while operating or playing a slot

machine [or], table game[,] or Internet game, including causing,

aiding, abetting or conspiring with another person to do so. The

term shall also mean to alter or causing, aiding, abetting or

conspiring with another person to alter the elements of chance,

method of selection or criteria which determine:

(1) The result of a slot machine game [or], table game

or Internet game.

(2) The amount or frequency of payment in a slot machine

game [or], table game or Internet game.

(3) The value of a wagering instrument.

(4) The value of a wagering credit.

The term does not include altering a slot machine, table game

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device or associated equipment or Internet gaming device or

associated equipment for maintenance or repair with the approval

of a slot machine licensee.

"Cheating or thieving device." A device or software used or

possessed with the intent to be used to cheat during the

operation or play of any slot machine [or], table game or

Internet game. The term shall also include any device used to

alter a slot machine [or], a table game device, an Internet game

or Internet gaming device or associated equipment without the

slot machine licensee's approval.

* * *

"Conduct of gaming." The licensed placement, operation and

play of slot machines [and], table games and Internet games

under this part, as authorized and approved by the Pennsylvania

Gaming Control Board.

"Contest." A table game or Internet game competition among

players for cash, cash equivalents or prizes.

* * *

"Counterfeit chip." Any object that is:

(1) used or intended to be used to play a table game at

a certificate holder's licensed facility and which was not

issued by that certificate holder for such use; [or]

(2) presented to a certificate holder for redemption if

the object was not issued by the certificate holder[.];

(3) used or intended to be used to play an Internet game

offered online by a slot machine licensee and which was not

approved by the slot machine licensee for such use; or

(4) presented online to a slot machine licensee during

play of an Internet game for redemption, if the object was

not issued by the slot machine licensee.

20150HB0920PN1110 - 4 -

* * *

"Gaming employee." Any employee of a slot machine licensee,

including, but not limited to:

(1) Cashiers.

(2) Change personnel.

(3) Count room personnel.

(4) Slot attendants.

(5) Hosts or other individuals authorized to extend

complimentary services, including employees performing

functions similar to those performed by a gaming junket

representative.

(6) Machine mechanics, computer machine technicians or

table game device technicians.

(7) Security personnel.

(8) Surveillance personnel.

(9) Promotional play supervisors, credit supervisors,

pit supervisors, cashier supervisors, shift supervisors,

table game managers and assistant managers and other

supervisors and managers, except for those specifically

identified in this part as key employees.

(10) Boxmen.

(11) Dealers or croupiers.

(12) Floormen.

(13) Personnel authorized to issue promotional play.

(14) Personnel authorized to issue credit.

The term shall include employees of a person holding a

supplier's license whose duties are directly involved with the

repair or distribution of slot machines, table game devices or

associated equipment or Internet gaming devices or associated

equipment sold or provided to a licensed facility within this

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Commonwealth as determined by the Pennsylvania Gaming Control

Board. The term shall further include employees of a person

authorized by the board to supply goods and services related to

Internet gaming or any subcontractor or an employee of a

subcontractor that supplies Internet gaming devices or

associated equipment to a holder of an Internet gaming

certificate. The term does not include bartenders, cocktail

servers or other persons engaged solely in preparing or serving

food or beverages, clerical or secretarial personnel, parking

attendants, janitorial, stage, sound and light technicians and

other nongaming personnel as determined by the board.

* * *

"Gaming school." Any educational institution approved by the

Department of Education as an accredited college or university,

community college, Pennsylvania private licensed school or its

equivalent and whose curriculum guidelines are approved by the

Department of Labor and Industry to provide education and job

training related to employment opportunities associated with

slot machines [or], table games or Internet games, including

slot machine, table game device and associated equipment

maintenance and repair and Internet gaming devices and

associated equipment maintenance and repair.

* * *

"Internet game." Any variation or composite of an authorized

Internet game that is offered through the Internet, provided

that such games, or variations or composites, are found suitable

for use by the Pennsylvania Gaming Control Board after an

appropriate test or experimental period and any other game which

is determined by the board to be compatible with the public

interest and to be suitable for Internet gaming after such

20150HB0920PN1110 - 6 -

appropriate test or experimental period. The term shall include

contests or tournaments conducted via the Internet in which

registered players compete against one another in one or more of

the Internet games authorized by the board or in approved

variations or composites thereof, if the contests or tournaments

are authorized by the board.

"Internet gaming." The placing of bets or wagers with a slot

machine licensee located in this Commonwealth using a computer

network of both Federal and non-Federal interoperable packet

switched data networks through which a slot machine licensee may

offer authorized Internet games to individuals who have

registered and established an Internet gaming account with the

slot machine licensee.

"Internet gaming account." The formal, electronic system

implemented by a slot machine licensee to record the balance of

a registered player's debits, credits and other activity

relating to Internet gaming.

"Internet gaming account agreement." The agreement entered

into between a slot machine licensee and an individual which

governs the terms and conditions of the individual's Internet

gaming account and the use of the Internet for purposes of

placing wagers on Internet games operated by a slot machine

licensee in this Commonwealth. The Internet gaming account

agreement shall be executed in person.

"Internet gaming certificate." The authorization issued to a

slot machine licensee by the Pennsylvania Gaming Control Board

authorizing the operation and conduct of Internet gaming.

"Internet gaming certificate holder." A slot machine

licensee that has been granted authorization by the Pennsylvania

Gaming Control Board to conduct Internet gaming.

20150HB0920PN1110 - 7 -

"Internet gaming device." The technology that is used to

manage, administer or control Internet gaming or the wagers

associated with Internet gaming to facilitate the offering of

authorized Internet games to registered players. The term

includes:

(1) Software.

(2) System programs.

(3) Hardware.

(4) Any other gaming equipment approved by the

Pennsylvania Gaming Control Board.

"Internet gaming gross revenue." As follows:

(1) For all Internet games, with the exception of

Internet poker, the total of all sums received by a slot

machine licensee from Internet gaming, less the total of all

sums actually paid out as winnings to registered players. The

cash equivalent value of any merchandise or thing of value

included in a jackpot or payout shall not be included in the

total of all sums paid out as winnings to registered players

for purposes of determining Internet gaming gross revenue.

(2) For Internet poker, the total of all sums received

by a slot machine licensee from Internet poker, or the

aggregate, during the relevant period, of the rake, contests

or tournament fees and all other fees or charges required or

received from registered players directly as a result of

Internet poker, from deposits into any Internet gaming

account maintained by the slot machine licensee or on behalf

of the slot machine licensee, less the total of all sums

actually paid out as winnings to registered players. The cash

equivalent value of any merchandise or thing of value

included in a jackpot or payout shall not be included in the

20150HB0920PN1110 - 8 -

total of all sums paid out as winnings to registered players

for purposes of determining Internet gaming gross revenue.

(3) For all Internet games, including Internet poker,

the term shall not include registered player deposits nor

deposits that reflect promotional credits, incentives from

loyalty or similar programs, bonuses or complimentary

services provided by or on behalf of the slot machine

licensee attendant to Internet gaming or returns of funds by

or on behalf of a slot machine licensee to an Internet gaming

account or bad debt incurred by the slot machine licensee

with respect to an Internet gaming account.

"Internet gaming restricted area." Any room or area within

the premises of a licensed facility or other location within

this Commonwealth as approved by the Pennsylvania Gaming Control

Board to conduct Internet gaming, including, where approved by

the board, redundancy facilities.

"Internet token." A representation of value issued by an

Internet gaming certificate holder for use in playing an

Internet game and redeemable with the issuing Internet gaming

certificate holder for cash or cash equivalent.

* * *

"Key employee." Any individual who is employed in a director

or department head capacity and who is empowered to make

discretionary decisions that regulate slot machine or table game

operations or Internet gaming operations, including the general

manager and assistant manager of the licensed facility, director

of slot operations, director of table game operations, director

of Internet gaming, director of cage and/or credit operations,

director of surveillance, director of marketing, director of

management information systems, director of Internet gaming

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system programs or other similar job classifications associated

with Internet gaming, persons who manage, control or administer

Internet games or the bets and wagers associated with Internet

games, director of security, comptroller and any employee who is

not otherwise designated as a gaming employee and who supervises

the operations of these departments or to whom these department

directors or department heads report and such other positions

not otherwise designated or defined under this part which the

Pennsylvania Gaming Control Board shall determine based on

detailed analyses of job descriptions as provided in the

internal controls of the licensee as approved by the

Pennsylvania Gaming Control Board. All other gaming employees

unless otherwise designated by the Pennsylvania Gaming Control

Board shall be classified as non-key employees.

* * *

"Licensed facility." The physical land-based location at

which a licensed gaming entity is authorized to place and

operate slot machines and, if authorized by the Pennsylvania

Gaming Control Board under Chapter 13A (relating to table

games), to conduct table games and under Chapter 13B (relating

to Internet gaming) to conduct Internet gaming. The term

includes any:

(1) area of a licensed racetrack at which a slot machine

licensee was previously authorized pursuant to section

1207(17) (relating to regulatory authority of board) to

operate slot machines prior to the effective date of this

paragraph;

(2) board-approved interim facility or temporary

facility; and

(3) area of a hotel which the Pennsylvania Gaming

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Control Board determines is suitable to conduct table games.

The term shall not include a redundancy facility or restricted

area which is not located on the premises of a licensed facility

as approved by the board and which is maintained and operated by

a slot machine licensee in connection with Internet gaming.

* * *

"Rake." A set fee or percentage assessed by a certificate

holder or a holder of an Internet gaming certificate for

providing the services of a dealer, gaming table or location, to

allow the play or operation of any nonbanking game[.], including

any nonbanking Internet game.

"Redundancy facilities." Any and all rooms or areas within

this Commonwealth used by a slot machine licensee for emergency

back-up, redundancy or secondary operations attendant to

Internet gaming as approved by the Pennsylvania Gaming Control

Board.

"Registered player." An individual who has entered into an

Internet gaming account agreement with a slot machine licensee.

* * *

"Supplier." A person that sells, leases, offers or otherwise

provides, distributes or services any slot machine, table game

device or associated equipment or Internet gaming device or

associated equipment for use or play of slot machines [or],

table games or Internet games in this Commonwealth.

"Supplier license." A license issued by the Pennsylvania

Gaming Control Board authorizing a supplier to provide products

or services related to slot machines, table game devices or

associated equipment or Internet gaming device or associated

equipment to slot machine licensees for use in this Commonwealth

for gaming purposes.

20150HB0920PN1110 - 11 -

* * *

"Table game." Any banking or nonbanking game approved by the

Pennsylvania Gaming Control Board. The term includes roulette,

baccarat, blackjack, poker, craps, big six wheel, mini-baccarat,

red dog, pai gow, twenty-one, casino war, acey-ducey, sic bo,

chuck-a-luck, Panguingue, Fan-tan, Asia poker, Boston 5 stud

poker, Caribbean stud poker, Colorado hold'em poker, double

attack blackjack, double cross poker, double down stud poker,

fast action hold'em, flop poker, four card poker, let it ride

poker, mini-craps, mini-dice, pai gow poker, pokette, Spanish

21, Texas hold'em bonus poker, three card poker, two card joker

poker, ultimate Texas hold'em, winner's pot poker and any other

banking or nonbanking game. The term shall not include:

(1) Lottery games of the Pennsylvania State Lottery as

authorized under the act of August 26, 1971 (P.L.351, No.91),

known as the State Lottery Law.

(2) Bingo as authorized under the act of July 10, 1981

(P.L.214, No.67), known as the Bingo Law.

(3) Pari-mutuel betting on the outcome of thoroughbred

or harness horse racing as authorized under the act of

December 17, 1981 (P.L.435, No.135), known as the Race Horse

Industry Reform Act.

(4) Small games of chance as authorized under the act of

December 19, 1988 (P.L.1262, No.156), known as the Local

Option Small Games of Chance Act.

(5) Slot machine gaming and progressive slot machine

gaming as defined and authorized under this part.

[(6) Keno.]

* * *

Section 2. Section 1202(a)(1) and (b)(20) and (23) of Title

20150HB0920PN1110 - 12 -

4 are amended and subsection (b) is amended by adding paragraphs

to read:

§ 1202. General and specific powers.

(a) General powers.--

(1) The board shall have general and sole regulatory

authority over the conduct of gaming, including Internet

gaming, or related activities as described in this part. The

board shall ensure the integrity of the acquisition and

operation of slot machines, table games, table game devices

and associated equipment and Internet games, Internet gaming

devices and associated equipment and shall have sole

regulatory authority over every aspect of the authorization,

operation and play of slot machines [and], table games and

Internet games.

* * *

(b) Specific powers.--The board shall have the specific

power and duty:

* * *

(12.2) At its discretion, to award, revoke, suspend,

condition or deny an Internet gaming certificate in

accordance with Chapter 13B (relating to Internet gaming).

* * *

(20) In addition to the power of the board regarding

license and permit applicants, to determine at its discretion

the suitability of any person who furnishes or seeks to

furnish to a slot machine licensee directly or indirectly any

goods, services or property related to slot machines, table

games, table game devices or associated equipment, Internet

games, Internet gaming devices and associated equipment or

through any arrangements under which that person receives

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payment based directly or indirectly on earnings, profits or

receipts from the slot machines, table games, table game

devices and associated equipment or Internet games, Internet

gaming devices and associated equipment. The board may

require any such person to comply with the requirements of

this part and the regulations of the board and may prohibit

the person from furnishing the goods, services or property.

* * *

(23) The board shall not approve an application for or

issue or renew a license, certificate, registration or permit

unless it is satisfied that the applicant has demonstrated by

clear and convincing evidence that the applicant is a person

of good character, honesty and integrity and is a person

whose prior activities, criminal record, if any, reputation,

habits and associations do not pose a threat to the public

interest or the effective regulation and control of slot

machine or table game operations or Internet gaming

operations or create or enhance the danger of unsuitable,

unfair or illegal practices, methods and activities in the

conduct of slot machine or table game operations, Internet

gaming operations or the carrying on of the business and

financial arrangements incidental thereto.

* * *

(27.2) To publish each January in the Pennsylvania

Bulletin and on the board's Internet website a complete list

of all slot machine licensees who filed a petition seeking

authorization to conduct Internet gaming and the status of

each petition or Internet gaming certificate.

* * *

(35) To review detailed site plans identifying the

20150HB0920PN1110 - 14 -

restricted area or room where a slot machine licensee

proposes to manage, administer or control Internet gaming

operations within a licensed facility to determine the

adequacy of the proposed internal and external security and

proposed surveillance measures.

(36) To require each slot machine licensee that holds an

Internet gaming certificate to provide on a quarterly basis

the following information with respect to Internet gaming:

(i) the name of any person, entity or firm to whom

any payment, remuneration or other benefit or thing of

value has been made or conferred for professional

services, including, but not limited to, legal,

consulting and lobbying services;

(ii) the amount or value of the payments,

remuneration, benefit or thing of value;

(iii) the date on which the payments, remuneration,

benefit or thing of value was made; and

(iv) the reason or purpose for the procurement of

the services.

Section 3. Sections 1204 and 1206(f)(1) of Title 4 are

amended to read:

§ 1204. Licensed gaming entity application appeals from board.

The Supreme Court of Pennsylvania shall be vested with

exclusive appellate jurisdiction to consider appeals of any

final order, determination or decision of the board involving

the approval, issuance, denial or conditioning of a slot machine

license or the award, denial or conditioning of a table game

operation certificate or the award, denial or conditioning of an

Internet gaming certificate. Notwithstanding the provisions of 2

Pa.C.S. Ch. 7 Subch. A (relating to judicial review of

20150HB0920PN1110 - 15 -

Commonwealth agency action) and 42 Pa.C.S. § 763 (relating to

direct appeals from government agencies), the Supreme Court

shall affirm all final orders, determinations or decisions of

the board involving the approval, issuance, denial or

conditioning of a slot machine license or the award, denial or

conditioning of a table game operation certificate or the award,

denial or conditioning of an Internet gaming certificate unless

it shall find that the board committed an error of law or that

the order, determination or decision of the board was arbitrary

and there was a capricious disregard of the evidence.

§ 1206. Board minutes and records.

* * *

(f) Confidentiality of information.--

(1) The following information submitted by an applicant,

permittee [or], licensee or certificate holder pursuant to

section 1310(a) (relating to slot machine license application

character requirements) [or], 1308(a.1) (relating to

applications for license or permit) or 13B12(b) (relating to

Internet gaming certificate required and content of petition)

or obtained by the board or the bureau as part of a

background or other investigation from any source shall be

confidential and withheld from public disclosure:

(i) All information relating to character, honesty

and integrity, including family, habits, reputation,

history of criminal activity, business activities,

financial affairs and business, professional and personal

associations submitted under section 1310(a) or 1308(a.1)

or otherwise obtained by the board or the bureau.

(ii) Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

20150HB0920PN1110 - 16 -

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

relating to an applicant, licensee [or], permittee or

certificate holder or the immediate family thereof.

(iii) Information relating to proprietary

information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and

information relating to competitive marketing materials

and strategies, which may include customer-identifying

information or customer prospects for services subject to

competition.

(iv) Security information, including risk prevention

plans, detection and countermeasures, location of count

rooms, location of restricted areas and redundancy

facilities, emergency management plans, security and

surveillance plans, equipment and usage protocols and

theft and fraud prevention plans and countermeasures.

(v) Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of any individual as

determined by the board.

(vi) Records of an applicant or licensee not

required to be filed with the Securities and Exchange

Commission by issuers that either have securities

registered under section 12 of the Securities Exchange

Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are

required to file reports under section 15(d) of the

20150HB0920PN1110 - 17 -

Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C.

§ 78o).

(vii) Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to commission records

and information).

(viii) Any financial information deemed confidential

by the board upon a showing of good cause by the

applicant or licensee.

* * *

Section 4. Section 1207(5), (8), (9) and (21) of Title 4 are

amended and the section is amended by adding paragraphs to read:

§ 1207. Regulatory authority of board.

The board shall have the power and its duties shall be to:

* * *

(5) Prescribe the procedures to be followed by slot

machine licensees for any financial event that occurs in the

operation and play of slot machines [or], table games or

Internet games.

* * *

(7.2) Enforce prescribed hours for the operation of

Internet games so that a slot machine licensee may conduct

Internet games on any day during the year in order to meet

the needs of registered players or to meet competition.

(8) Require that each licensed gaming entity prohibit

persons under 21 years of age from operating or using slot

machines [or], playing table games or participating in

Internet gaming.

(9) Establish procedures for the inspection and

certification of compliance of each slot machine, table game,

20150HB0920PN1110 - 18 -

table game device and associated equipment and Internet game,

Internet gaming device and associated equipment prior to

being placed into use by a slot machine licensee.

* * *

(21) Authorize, in its discretion, a slot machine

licensee to conduct slot machine tournaments or Internet

gaming tournaments and adopt regulations governing the

conduct of such tournaments.

(22) License, regulate, investigate and take any other

action determined necessary regarding all aspects of Internet

gaming.

(23) Define and limit the areas of operation and the

rules of authorized Internet games, including odds, devices

permitted and the method of operation of Internet games,

Internet gaming devices and associated equipment.

(24) Require that all wagering offered through Internet

gaming display online the permissible minimum and maximum

wagers associated with each Internet game.

Section 5. Section 1211 of Title 4 is amended by adding

subsections to read:

§ 1211. Reports of board.

* * *

(a.4) Internet gaming reporting requirements.--

(1) No later than 12 months after the effective date of

Chapter 13B (relating to Internet gaming) and every year

thereafter, the annual report submitted by the board in

accordance with subsection (a) shall include information on

the conduct of Internet games as follows:

(i) Total gross Internet gaming revenue.

(ii) The number and win by type of Internet game at

20150HB0920PN1110 - 19 -

each licensed facility conducting Internet gaming during

the previous year.

(iii) All taxes, fees, fines and other revenue

collected and, where appropriate, revenue disbursed

during the previous year. The department shall

collaborate with the board to carry out the requirements

of this subparagraph.

(iv) Other information, data and recommendations

related to the conduct of Internet games and

recommendations regarding the operation of Internet

gaming by licensed gaming entities.

(2) The board may also report periodically to the

Governor and the General Assembly on the effectiveness of the

statutory and regulatory control in place to ensure the

integrity of Internet gaming.

(3) The board may require the Internet gaming

certificate holders to provide information to the board to

assist in the preparation of the report.

* * *

(d.1) Impact of Internet gaming, annual report.--One year

after the commencement of Internet gaming in this Commonwealth,

an annual report shall be prepared and distributed to the

Governor, and the standing committees of the General Assembly

with jurisdiction over this part, on the impact of Internet

gaming on compulsive and problem gambling and gambling addiction

in this Commonwealth. The report shall be prepared by a private

organization or entity with expertise in serving and treating

the needs of persons with compulsive gambling addictions, which

organization or entity shall be selected by the Department of

Drug and Alcohol Programs. The report may be prepared and

20150HB0920PN1110 - 20 -

distributed under the supervision of and in coordination with

the board. Any costs associated with the preparation and

distribution of the report shall be borne by slot machine

licensees who have been authorized by the board to conduct

Internet gaming. The board shall be authorized to assess a fee

against each slot machine licensee for these purposes.

* * *

Section 6. Section 1212(e) of Title 4 is amended by adding a

paragraph to read:

§ 1212. Diversity goals of board.

* * *

(e) Definition.--As used in this section, the term

"professional services" means those services rendered to a slot

machine licensee which relate to a licensed facility in this

Commonwealth, including, but not limited to:

* * *

(9) Technology related to Internet games, Internet

gaming devices and associated equipment.

Section 7. Section 1305 of Title 4 is amended by adding a

subsection to read:

§ 1305. Category 3 slot machine license.

* * *

(c.1) Internet gaming.--Notwithstanding any provision of

Chapter 13B (relating to Internet gaming), the operation of

Internet gaming by a Category 3 slot machine licensee shall be

subject to the patron of the amenities requirements of this

section. The board shall, through regulation, determine the

criteria and conditions under which Internet games may be

operated by a Category 3 slot machine licensee. Such regulations

shall require that individuals seeking to participate in

20150HB0920PN1110 - 21 -

Internet gaming operated by a Category 3 slot machine licensee

shall only be individuals who hold a valid seasonal or year-

round membership, as approved by the board, which entitles the

individuals to use one or more of the amenities available at the

Category 3 licensed facility and a valid Internet gaming account

with the Category 3 slot machine licensee.

* * *

Section 8. Sections 1309(a.1), 1317(a) and (c.1), 1317.1 and

13A27(c) of Title 4 are amended to read:

§ 1309. Slot machine license application.

* * *

(a.1) Table games and Internet gaming information.--

(1) An applicant for a slot machine license may submit

with its application all information required under Chapter

13A (relating to table games) or under Chapter 13B (relating

to Internet gaming) and request that the board consider its

application for a slot machine license [and], a table game

operation certificate or an Internet gaming certificate

concurrently. All fees for a table game operation certificate

shall be paid by the applicant in accordance with section

13A61 (relating to table game authorization fee) or section

13B51 (relating to Internet gaming authorization fee).

(2) The board shall permit any applicant for a slot

machine license that has an application pending before the

board on the effective date of this subsection to supplement

its application with all information required under Chapter

13A and to request that the board consider its application

for a slot machine license and a table game operation

certificate concurrently. All fees for a table game operation

certificate shall be paid by the applicant in accordance with

20150HB0920PN1110 - 22 -

section 13A61.

(3) Notwithstanding paragraph (2), the board may permit

an applicant for a slot machine license that has an

application pending before the board to supplement its

application with all information required under Chapter 13B

and to request that the board consider its application for a

slot machine license, a table game operation certificate or

an Internet gaming certificate concurrently. All fees for an

Internet gaming certificate shall be paid by the applicant in

accordance with section 13B51.

* * *

§ 1317. Supplier licenses.

(a) Application.--A manufacturer that elects to contract

with a supplier under section 1317.1(d.1) (relating to

manufacturer licenses) shall ensure that the supplier is

appropriately licensed under this section. A person seeking to

provide slot machines, table game devices or associated

equipment or Internet gaming devices or associated equipment to

a slot machine licensee within this Commonwealth through a

contract with a licensed manufacturer shall apply to the board

for the appropriate supplier license.

* * *

(c.1) Abbreviated process.--In the event an applicant for a

supplier license to supply table game devices or associated

equipment used in connection with table games or Internet gaming

devices or associated equipment used in connection with Internet

games is licensed by the board under this section to supply slot

machines or associated equipment used in connection with slot

machines, the board may determine to use an abbreviated process

requiring only that information determined by the board to be

20150HB0920PN1110 - 23 -

necessary to consider the issuance of a license to supply table

game devices or associated equipment used in connection with

table games or Internet gaming devices or associated equipment

used in connection with Internet games, including financial

viability of the applicant. Nothing in this section shall be

construed to waive any fees associated with obtaining a license

through the normal application process. The board may only use

the abbreviated process if all of the following apply:

(1) The supplier license was issued by the board within

a 36-month period immediately preceding the date the supplier

licensee files an initial application to supply table game

devices or associated equipment.

(2) The person to whom the supplier license was issued

affirms there has been no material change in circumstances

relating to the license.

(3) The board determines, in its sole discretion, that

there has been no material change in circumstances relating

to the licensee that necessitates that the abbreviated

process not be used.

* * *

§ 1317.1. Manufacturer licenses.

(a) Application.--A person seeking to manufacture slot

machines, table game devices and associated equipment or

Internet gaming devices or associated equipment for use in this

Commonwealth shall apply to the board for a manufacturer

license.

(b) Requirements.--An application for a manufacturer license

shall be on the form required by the board, accompanied by the

application fee, and shall include all of the following:

(1) The name and business address of the applicant and

20150HB0920PN1110 - 24 -

the applicant's affiliates, intermediaries, subsidiaries and

holding companies; the principals and key employees of each

business; and a list of employees and their positions within

each business, as well as any financial information required

by the board.

(2) A statement that the applicant and each affiliate,

intermediary, subsidiary or holding company of the applicant

are not slot machine licensees.

(3) The consent to a background investigation of the

applicant, its principals and key employees or other persons

required by the board and a release to obtain any and all

information necessary for the completion of the background

investigation.

(4) The details of any equivalent license granted or

denied by other jurisdictions where gaming activities as

authorized by this part are permitted and consent for the

board to acquire copies of applications submitted or licenses

issued in connection therewith.

(5) The type of slot machines, table game devices or

associated equipment or Internet gaming devices or associated

equipment to be manufactured or repaired.

(6) Any other information determined by the board to be

appropriate.

requirements of subsection (b) have been met, the board may

approve the application and grant the applicant a manufacturer

license consistent with all of the following:

(1) The initial license shall be for a period of one

year, and, if renewed under subsection (d), the license shall

be for a period of three years. Nothing in this paragraph

20150HB0920PN1110 - 25 -

shall relieve the licensee of the affirmative duty to notify

the board of any changes relating to the status of its

license or to any other information contained in application

materials on file with the board.

(2) The license shall be nontransferable.

(3) Any other condition established by the board.

(c.1) Abbreviated process.--In the event an applicant for a

manufacturer license to manufacture table game devices or

associated equipment used in connection with table games or

Internet games, Internet gaming devices or associated equipment

used in connection with Internet games is licensed by the board

under this section to manufacture slot machines, table game

devices or associated equipment used in connection with slot

machines or table games, the board may determine to use an

abbreviated process requiring only that information determined

by the board to be necessary to consider the issuance of a

license to manufacture table game devices or associated

equipment used in connection with table games or Internet games,

Internet gaming devices or associated equipment used in

connection with Internet gaming, including financial viability

of the applicant. Nothing in this section shall be construed to

waive any fees associated with obtaining a license through the

normal application process. The board may only use the

abbreviated process if all of the following apply:

(1) The manufacturer license was issued by the board

within a 36-month period immediately preceding the date the

manufacturer licensee files an application to manufacture

table game devices or associated equipment[.] or the

manufacturer license was issued by the board within a 36-

month period preceding the date the manufacturer licensee

20150HB0920PN1110 - 26 -

filed an application to manufacture Internet gaming devices

or associated equipment.

(2) The person to whom the manufacturer license was

issued affirms there has been no material change in

circumstances relating to the license.

(3) The board determines, in its sole discretion, that

there has been no material change in circumstances relating

to the licensee that necessitates that the abbreviated

process not be used.

(d) Renewal.--

(1) Two months prior to expiration of a manufacturer

license, the manufacturer licensee seeking renewal of its

license shall submit a renewal application accompanied by the

renewal fee to the board.

(2) If the renewal application satisfies the

requirements of subsection (b), the board may renew the

licensee's manufacturer license.

(3) If the board receives a complete renewal application

but fails to act upon the renewal application prior to the

expiration of the manufacturer license, the manufacturer

license shall continue in effect for an additional six-month

period or until acted upon by the board, whichever occurs

first.

(d.1) Authority.--The following shall apply to a licensed

manufacturer:

(1) A manufacturer or its designee, as licensed by the

board, may supply or repair any slot machine, table game

device or associated equipment or Internet gaming device or

associated equipment manufactured by the manufacturer,

provided the manufacturer holds the appropriate manufacturer

20150HB0920PN1110 - 27 -

license.

(2) A manufacturer of slot machines may contract with a

supplier under section 1317 (relating to supplier licenses)

to provide slot machines or associated equipment to a slot

machine licensee within this Commonwealth, provided the

supplier is licensed to supply slot machines or associated

equipment used in connection with slot machines.

(3) A manufacturer may contract with a supplier under

section 1317 to provide table game devices or associated

equipment to a certificate holder, provided the supplier is

licensed to supply table game devices or associated equipment

used in connection with table games.

(4) A manufacturer may contract with a supplier under

section 1317 to provide Internet gaming devices or associated

equipment to an Internet gaming certificate holder, provided

that the supplier is licensed to supply Internet gaming

devices or associated equipment used in connection with

Internet games.

(e) Prohibitions.--

(1) No person may manufacture slot machines, table game

devices or associated equipment or Internet gaming devices or

associated equipment for use within this Commonwealth by a

slot machine licensee unless the person has been issued the

appropriate manufacturer license under this section.

(2) Except as permitted in section 13A23.1 (relating to

training equipment) or, in the case of Internet gaming,

authorized by the board, no slot machine licensee may use

slot machines, table game devices or associated equipment or

Internet gaming devices or associated equipment unless the

slot machines, table game devices or associated equipment or

20150HB0920PN1110 - 28 -

Internet gaming devices or associated equipment were

manufactured by a person that has been issued the appropriate

manufacturer license under this section.

(3) No person issued a license under this section shall

apply for or be issued a license under section 1317.

(4) No limitation shall be placed on the number of

manufacturer licenses issued or the time period to submit

applications for licensure, except as required to comply with

section 1306 (relating to order of initial license issuance).

§ 13A27. Other financial transactions.

* * *

application for credit, a certificate holder shall verify:

(1) The identity, creditworthiness and indebtedness

information of the applicant by conducting a comprehensive

review of the information submitted with the application and

any information regarding the applicant's credit activity at

other licensed facilities which the certificate holder may

obtain through a casino credit bureau and, if appropriate,

through direct contact with other slot machine licensees.

(2) That the applicant's name is not included on an

exclusion list under section 1514 (relating to regulation

requiring exclusion [or], ejection or denial of access of

certain persons) or 1516 (relating to list of persons self

excluded from gaming activities) or the voluntary credit

suspension list under subsection (h).

* * *

Section 9. Title 4 is amended by adding a chapter to read:

CHAPTER 13B

INTERNET GAMING

20150HB0920PN1110 - 29 -

Subchapter

A. General Provisions

B. Internet Gaming Authorized

C. Conduct of Internet Gaming

D. Facilities and Equipment

E. Testing and Certification

F. Taxes and Fees

G. Miscellaneous Provisions

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

13B01. Legislative finding.

13B02. Regulatory authority.

13B03. Temporary Internet gaming regulations.

§ 13B01. Legislative finding.

The General Assembly finds and declares that:

(1) The primary objective of the Pennsylvania Race Horse

Development and Gaming Act, to which all other objectives are

secondary, is to protect the public through the regulation

and policing of all activities involving gaming and practices

that continue to be unlawful.

(2) Legislative authorization of slot machine gaming and

the conduct of table games is intended to enhance live horse

racing, breeding programs, entertainment and employment in

this Commonwealth.

(3) Legalized gaming is seen as a means to provide a

source of revenue for property and wage tax relief and

economic development and to enhance development of tourism

markets throughout this Commonwealth.

(4) Legalized gaming in the Category I, Category II and

20150HB0920PN1110 - 30 -

Category III licensed facilities geographically dispersed in

this Commonwealth has become a critical component of economic

development and, if its development continues to be properly

regulated and fostered, will provide a substantial

contribution to the general health, welfare and prosperity of

this Commonwealth and its citizens.

(5) The General Assembly remains committed to ensuring a

robust casino gaming industry in this Commonwealth that is

capable of competing regionally, nationally and

internationally at the highest levels of quality while

maintaining strict regulatory oversight to ensure the

integrity of all gaming operations as supervised by the

board.

(6) Since its development, the Internet has provided the

opportunity for millions of people worldwide to engage in

online gambling, mostly through illegal off-shore operations.

(7) In 2006, the United States Congress passed and the

President signed the Unlawful Internet Gambling Enforcement

Act of 2006 (Public Law 109-347, 31 U.S.C. § 5361 et seq.),

which generally prohibits the use of banking instruments,

including credit cards, checks and money transfers for

interstate Internet gambling.

(8) Although the Unlawful Internet Gambling Enforcement

Act of 2006 prohibits interstate Internet gambling by United

States citizens, it included an exception that permits

individual states to create a regulatory framework to govern

intrastate Internet gambling, provided that the bets or

wagers would be made exclusively within a single state under

certain circumstances.

(9) Internet gaming is illegal in this Commonwealth and

20150HB0920PN1110 - 31 -

without legislative authorization and strict regulation, the

public's trust and confidence in gaming is impacted.

(10) Internet gambling is conducted without oversight,

regulation or enforcement, all of which raises significant

concerns for the protection of the health, welfare and safety

of the citizens of this Commonwealth.

(11) An effective regulatory, licensing and enforcement

system for Internet gambling in this Commonwealth would

inhibit underage wagering and otherwise protect vulnerable

individuals, ensure that the games offered through the

Internet are fair and safe, stop sending much-needed jobs,

tax and other revenue offshore to illegal operators, provide

a significant source of taxable revenue, create jobs and

economic development and address the concerns of law

enforcement.

(12) By legalizing intrastate Internet gambling and

subjecting it to the regulatory oversight of the board, the

General Assembly is assuring the citizens of this

Commonwealth that only those persons licensed by the board to

conduct slot machine gaming and table games in accordance

with the requirements of this title have been determined to

be suitable to facilitate and conduct online gaming

activities in this Commonwealth.

(13) By legalizing intrastate Internet gambling, the

General Assembly will provide the board with the tools

necessary to restrict and stop illegal gambling conducted

over the Internet through persons in foreign jurisdictions

and authorize strict controls over how licensed facilities in

this Commonwealth may accept wagers placed over the Internet.

(14) An effective regulatory, licensing and enforcement

20150HB0920PN1110 - 32 -

system to govern Internet gambling in this Commonwealth is

consistent with the original objectives and intent of the

Pennsylvania Race Horse Development and Gaming Act and will

provide the citizens of this Commonwealth with assurance that

access to and the conduct of Internet gambling activities

will not occur in locations adjacent or in close proximity to

historic sights, battlefields, churches and schools, thereby

ensuring the public trust and confidence in legalized

gambling in this Commonwealth.

(15) The Commonwealth has a legitimate State interest in

protecting the integrity of State-authorized intrastate

Internet gaming by licensing those entities already engaged

in the conduct of gaming in this Commonwealth, which are

subject to the scrutiny and discipline of the board and other

regulatory agencies and which are in good standing with those

agencies.

§ 13B02. Regulatory authority.

(a) Authority.--The board shall promulgate and adopt rules

and regulations to govern Internet gaming in order for Internet

gaming to be implemented in a manner that provides for the

security and effective management, administration and control of

Internet gaming, including, but not limited to, regulations:

(1) Ensuring that Internet games are offered for play in

this Commonwealth in a manner that is consistent with Federal

law and the provisions of this chapter.

(2) Establishing standards and procedures for testing

and approving Internet games and Internet gaming devices and

associated equipment, and any variations or composites of

authorized Internet games, provided that the board determines

that the Internet games and any new Internet games or any

20150HB0920PN1110 - 33 -

variations or composites are suitable for use after a test or

experimental period under any terms and conditions as the

board may deem appropriate. The board may give priority to

the testing of Internet games, Internet gaming devices and

associated equipment or other gaming equipment which a slot

machine licensee has certified that it will use to conduct

Internet gaming in this Commonwealth.

(3) Establishing standards and rules to govern the

conduct of Internet gaming and the system of and wagering

associated with Internet gaming, including internal controls

and accounting controls, and the type, number, payout,

wagering limits and rules for Internet games.

(4) Establishing the method for calculating Internet

gaming gross revenue and standards for the daily counting and

recording of cash and cash equivalents received in the

conduct of Internet games and ensure that internal controls

and accounting controls are followed, including the

maintenance of financial books and records and the conduct of

audits. The board shall consult with the department in

establishing these regulations.

(5) Establishing notice requirements pertaining to

minimum and maximum wagers on Internet games. Minimum and

maximum wagers may be adjusted by the slot machine licensee

in the normal course of conducting an Internet game, except

that changes in the minimum wagers of any Internet game shall

not apply to players already engaged in wagering on an

Internet game when the minimum wager is changed, unless 30

minutes' notice is provided electronically in a form and

manner approved by the board.

(6) Ensuring that all facilities, Internet gaming

20150HB0920PN1110 - 34 -

devices and associated equipment are arranged in a manner to

promote appropriate security for Internet gaming.

(7) Establishing technical standards for the approval of

Internet games, Internet gaming devices and associated

equipment, including mechanical, electrical or program

reliability, security against tampering, the

comprehensibility of wagering and noise and light levels, as

it may deem necessary to protect registered players from

fraud or deception.

(8) Governing the creation and utilization of Internet

gaming accounts by registered players, including requiring

the following:

(i) That Internet gaming accounts shall be possessed

by a natural person and not in the name of any

beneficiary, custodian, joint trust, corporation,

partnership or other organization or entity.

(ii) That Internet gaming accounts shall not be

assignable or otherwise transferable.

(iii) That no account shall be established for an

individual under 21 years of age.

(iv) That all Internet gaming accounts shall be

established in person at a licensed facility.

(9) Establishing procedures for Internet gaming account

holders to log into their gaming accounts, authenticate

identities, agree to terms, conditions and rules applicable

to Internet games and log out of gaming accounts, including

procedures for automatically logging off persons from an

Internet game after a specified period of inactivity.

(10) Establishing procedures for:

(i) Acquiring funds in an Internet gaming account by

20150HB0920PN1110 - 35 -

cash, transfer or other means.

(ii) The withdrawal of funds from Internet gaming

accounts.

(iii) The suspension of Internet gaming account

activity for security reasons.

(iv) The termination of Internet gaming accounts and

disposition of proceeds in accounts.

(v) The disposition of unclaimed amounts in dormant

Internet gaming accounts.

(11) Establishing mechanisms by which registered players

may place limits on the amount of money being wagered per

Internet game or during any specified time period or the

amount of losses incurred during any specified time period.

(12) Establishing mechanisms to exclude from Internet

gaming persons not eligible to play by reason of age,

location or inclusion on a list of persons denied access to

Internet gaming activities in accordance with sections 1514

(relating to regulation requiring exclusion, ejection or

denial of access of certain persons), 1515 (relating to

repeat offenders excludable from licensed gaming facility)

and 1516 (relating to list of persons self excluded from

gaming activities).

(13) Establishing procedures for the protection,

security and reliability of Internet gaming accounts,

Internet games, Internet gaming devices and associated

equipment and mechanisms to prevent tampering or utilization

by unauthorized persons.

(14) Establishing data security standards to govern age

and location verification of persons engaged in Internet

gaming activity.

20150HB0920PN1110 - 36 -

(15) Requiring each slot machine licensee to:

(i) Provide written information on its Internet

gaming website, which explains the rules for each

Internet game, payoffs or winning wagers and other

information as the board may require.

(ii) Provide specifications approved by the board to

integrate and update the licensed facility's surveillance

system to cover all areas in the licensed facility where

Internet gaming will be managed, administered or

controlled. The specifications shall include provisions

providing the board and other persons authorized by the

board with onsite access to the surveillance system or

its signal.

(iii) Designate one or more restricted areas within

the licensed facility where Internet gaming activity will

be managed, administered or controlled.

(iv) Provide the board with access to the Internet

website, signal or transmission used in connection with

Internet gaming.

(v) Ensure that visibility in the designated

restricted area in the licensed facility where Internet

gaming will be managed, administered or controlled is not

obstructed in any way that could interfere with the

ability of the slot machine licensee, the board and other

persons authorized by the board or other persons

authorized under this part to oversee the surveillance of

the conduct of Internet gaming operations.

(vi) Adopt procedures for the recordation,

replication and storage of all play and transactions for

a period to be determined by the board.

20150HB0920PN1110 - 37 -

(vii) Provide statements on its Internet gaming

website about the permissible minimum and maximum wagers

for each Internet game, as applicable.

(viii) Adopt policies or procedures to prohibit any

unauthorized person from having access to Internet gaming

devices and associated equipment, including software,

system programs, hardware and any other gaming equipment

which is used to manage, administer or control Internet

gaming.

(ix) Adopt data security standards to verify the age

and location of persons engaged in Internet gaming

activity and prevent unauthorized access by any person

whose age and location have not been verified or whose

age and location cannot be verified in accordance with

regulations adopted by the board.

(x) Adopt standards to protect the privacy and

security of persons engaged in Internet gaming activity.

(xi) Collect, report and pay any and all applicable

taxes and fees and maintain all books, records and

documents related to the slot machine licensee's Internet

gaming activities in a manner and in a location within

this Commonwealth as approved by the board or the

department. All books, records and documents shall be

immediately available for inspection during all hours of

operation in accordance with the regulations of the board

and shall be maintained in a manner and during periods of

time as the board shall by regulation require.

(b) Additional authority.--

(1) At its discretion, the board may determine whether

persons that provide the following goods or services and any

20150HB0920PN1110 - 38 -

other goods or services related to Internet gaming as the

board may determine shall be required to obtain a license,

permit or other authorization:

(i) Payment processing and related money

transmitting and services.

(ii) Customer identity or age verification and

geospatial technology services.

(iii) General telecommunications services, which are

not specifically designed for or related to Internet

gaming.

(iv) Other goods or services that are not

specifically designed for use with Internet gaming if the

persons providing the goods or services are not paid a

percentage of gaming revenue or of money gambled on

Internet games or of online poker commission fees by the

slot machine licensee, not including fees to financial

institutions and payment providers for facilitating a

deposit by an Internet gaming account holder.

(2) The board shall develop a classification system for

the licensure, permitting or other authorization of persons

that provide the following goods or services related to

Internet gaming:

(i) Persons that provide Internet games and Internet

gaming devices and associated equipment.

(ii) Persons that manage, control or administer the

Internet games or the wagers associated with Internet

games.

(iii) Providers of customer lists comprised of

persons identified or selected, in whole or in part,

because they placed wagers on Internet gaming.

20150HB0920PN1110 - 39 -

§ 13B03. Temporary Internet gaming regulations.

(a) Promulgation.--

(1) In order to facilitate the prompt implementation of

this chapter, regulations promulgated by the board shall be

deemed temporary regulations which shall expire not later

than two years following the publication of the temporary

regulation in the Pennsylvania Bulletin and on the board's

Internet website.

(2) The board may promulgate temporary regulations not

subject to:

(i) Sections 201, 202, 203, 204 and 205 of the act

of July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(ii) The act of June 25, 1982 (P.L.633, No.181),

known as the Regulatory Review Act.

(iii) Sections 204(b) and 301(10) of the act of

October 15, 1980 (P.L.950, No.164), known as the

Commonwealth Attorneys Act.

(b) Temporary regulations.--The board shall begin publishing

temporary regulations governing the rules for Internet gaming,

the issuance of Internet gaming certificates, standards for

approving licensing of providers of Internet games, Internet

gaming devices and associated equipment, including age and

location verification software or system programs and security

and surveillance standards in the Pennsylvania Bulletin not

later than February 1, 2017.

temporary regulations governing the rules for new Internet

games, for approving Internet games, Internet gaming devices and

associated equipment and for approving providers of Internet

20150HB0920PN1110 - 40 -

games, Internet gaming devices and associated equipment, the

board's authority to adopt temporary regulations under

subsection (a) shall expire two years after the effective date

of this section. Regulations adopted after this period shall be

promulgated as provided by law.

SUBCHAPTER B

INTERNET GAMING AUTHORIZED

Sec.

13B11. Authorization to conduct Internet gaming.

13B12. Internet gaming certificate required and content of

petition.

13B13. Issuance of Internet gaming certificate.

13B14. Internet gaming certificate.

13B15. Timing of initial Internet gaming authorizations.

§ 13B11. Authorization to conduct Internet gaming.

(a) Authority of board.--

(1) The board may authorize a slot machine licensee:

(i) To conduct Internet gaming, including contests

and tournaments and any other game which is determined by

the board to be suitable for Internet gaming.

(ii) To deploy an Internet gaming website to

facilitate the conduct of Internet gaming activities.

(2) All individuals playing Internet games must be

physically located within this Commonwealth. No individual

under 21 years of age shall open, maintain, use or have

access to an Internet gaming account.

(b) Authority to play Internet games.--Notwithstanding any

other provision of law, a person in this Commonwealth who is 21

years of age or older is hereby permitted to participate as a

registered player in Internet gaming activities and wagering

20150HB0920PN1110 - 41 -

associated with playing an Internet game offered by a slot

machine licensee in this Commonwealth in accordance with

regulations of the board.

§ 13B12. Internet gaming certificate required and content of

petition.

(a) Certificate required.--No slot machine licensee or any

other person associated with or representing a slot machine

licensee shall operate or attempt to conduct Internet gaming,

except for test purposes, at a licensed facility or open

Internet gaming to the public in this Commonwealth without first

obtaining an Internet gaming certificate from the board. A slot

machine licensee may seek approval to conduct Internet gaming by

filing a petition for an Internet gaming certificate with the

board. The board shall prescribe the form and manner to govern

the submission of a petition for an Internet gaming certificate.

Not more than one Internet gaming certificate shall be issued to

operate Internet gaming within a licensed facility in this

Commonwealth.

(b) Content of petition.--In addition to information and

documentation demonstrating that the slot machine licensee is

legally and technically qualified for an Internet gaming

certificate under this chapter, a petition seeking board

approval to conduct Internet gaming within this Commonwealth

shall include the following:

(1) The name, business address and contact information

of the slot machine licensee.

(2) The name and business address, job title and a

photograph of each principal and key employee of the slot

machine licensee who will be involved in the conduct of

Internet gaming and who is not currently licensed by the

20150HB0920PN1110 - 42 -

board, if known.

(3) The name and business address, job title and a

photograph of each principal or key employee of the slot

machine licensee who will be involved in the conduct of

Internet gaming and who is currently licensed by the board.

(4) An itemized list of the Internet games and any other

game or games the slot machine licensee plans to offer over

the Internet for which authorization is being sought. The

slot machine licensee shall, in accordance with regulations

promulgated by the board, file any changes in the number of

authorized games offered through Internet gaming with the

board.

(5) The estimated number of full-time and part-time

employment positions that will be created at the licensed

facility if Internet gaming operations are authorized and an

updated hiring plan under section 1510(a) (relating to labor

hiring preferences) which outlines the slot machine

licensee's plan to promote the representation of diverse

groups and Commonwealth residents in the employment

positions.

(6) A brief description of the economic benefits

expected to be realized by the Commonwealth, its

municipalities and its residents if Internet gaming

operations are authorized.

(7) The details of any financing obtained or that will

be obtained to fund an expansion or modification of the

licensed facility to accommodate Internet gaming activities

and to otherwise fund the cost of commencing Internet gaming

operations.

(8) Information and documentation concerning financial

20150HB0920PN1110 - 43 -

background and resources, as the board may require, to

establish by clear and convincing evidence the financial

stability, integrity and responsibility of the slot machine

licensee.

(9) Information and documentation, as the board may

require, to establish by clear and convincing evidence that

the slot machine licensee has sufficient business ability and

experience to create and maintain a successful Internet

gaming operation. In making this determination, the board may

consider the results of the slot machine licensee's slot

machine and table game operations, including financial

information, employment data and capital investment.

(10) Information and documentation, as the board may

require, to establish by clear and convincing evidence that

the slot machine licensee has or will have the financial

ability to pay the Internet gaming authorization fee.

(11) Detailed site plans identifying the slot machine

licensee's proposed restricted area where Internet gaming

operations will be managed, administered or controlled within

the licensed facility as approved by the board.

(12) A detailed description of all of the following:

(i) The slot machine licensee's initial system of

internal and accounting controls applicable to Internet

gaming.

(ii) The slot machine licensee's proposed standards

to protect, with a reasonable degree of certainty, the

privacy and security of its registered players.

(iii) How the slot machine licensee will facilitate

compliance with all of the requirements set forth in this

chapter and in section 802(a) of the Unlawful Internet

20150HB0920PN1110 - 44 -

Gambling Enforcement Act of 2006 (Public Law 109-347, 31

U.S.C. § 5362(10)(B)), including, but not limited to, all

of the following:

(A) Age and location verification requirements

designed to block access to individuals under 21

years of age and persons located outside this

Commonwealth.

(B) Appropriate data security standards to

prevent unauthorized access by any person whose age

and location have not been verified or whose age and

location cannot be verified in accordance with this

chapter and applicable regulations of the board.

initiated and received or otherwise made exclusively

within this Commonwealth.

(iv) The slot machine licensee's proposed age and

location verification standards designed to block access

to persons under 21 years of age, persons located outside

this Commonwealth and persons excluded or prohibited from

participating in Internet gaming activities under this

part.

(v) The procedures the slot machine licensee will

use to register individuals who wish to participate in

Internet gaming activities.

(vi) The procedures the slot machine licensee will

use to establish Internet gaming accounts for registered

players.

(vii) The Internet games and services the slot

machine licensee proposes to offer to registered players.

(viii) Documentation and information relating to all

20150HB0920PN1110 - 45 -

proposed subcontractors of the slot machine licensee,

including, but not limited to, all of the following:

(A) A description of the services to be provided

by each subcontractor.

(B) Information on the experience and

qualifications of each subcontractor to provide the

services anticipated.

owners, executives and employees that will be

directly or indirectly involved in the slot machine

licensee's Internet gaming operations, as well as

sufficient personal identifying information on each

such person to conduct background checks as may be

required by the board.

(13) The Internet gaming devices and associated

equipment, including the computer system or systems, that the

slot machine licensee plans to or will utilize to manage,

administer or control its Internet gaming operations,

including, but not limited to:

(i) Connectivity.

(ii) Software and hardware.

(iii) Antifraud systems.

(iv) Virus and hacker protection.

(v) Data protection.

(vi) Access controls.

(vii) Firewalls.

(viii) Emergency and disaster recovery.

(ix) Redundancy.

(x) Internet gaming devices and associated

equipment, including, but not limited to, hardware and

20150HB0920PN1110 - 46 -

software that ensure all of the following:

(A) The Internet games are authorized Internet

games.

(B) The Internet games are independent and fair

and played by natural persons.

available to all registered players.

(D) All data used for the operation of each

Internet game is randomly generated.

(14) Compliance certification of its Internet gaming

devices and associated equipment, including Internet gaming

software, by a board-approved gaming laboratory to ensure

that the gaming software complies with the requirements of

this chapter, if required by the board.

(15) Detailed description of accounting systems,

including, but not limited to, accounting systems for all of

the following:

(i) Registered Internet gaming accounts.

(ii) Per-hand charges, if applicable.

(iii) Transparency and reporting to the board and

the department.

(iv) Distribution of revenue to the Commonwealth and

winnings to registered players.

(v) Ongoing auditing and internal control compliance

reviews.

(16) Detailed information on security systems at the

licensed facility to protect the Internet gaming website from

internal and external breaches and threats.

(17) Any other information as the board may require.

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under subsection (b) may be considered confidential by the board

if the information would be confidential under section 1206(f)

(relating to board minutes and records).

§ 13B13. Issuance of Internet gaming certificate.

(a) Requirements for approval of petition.--

(1) The board may approve a petition under section 13B12

(relating to Internet gaming certificate required and content

of petition) upon finding clear and convincing evidence of

all of the following:

(i) The slot machine licensee's Internet gaming

operations comply in all respects with the requirements

of this chapter and regulations promulgated by the board.

(ii) Age and location verification requirements

designed to block access to individuals under 21 years of

age, persons located outside of this Commonwealth and

those persons excluded, denied access or prohibited from

Internet gaming in accordance with this chapter, as

approved by the board, have been implemented by the slot

machine licensee.

(iii) The slot machine licensee has implemented or

will implement appropriate data security standards to

prevent unauthorized access by any person whose age and

location has not been verified or cannot be verified in

accordance with the regulations promulgated and adopted

by the board.

(iv) The slot machine licensee has implemented or

will implement appropriate standards to protect the

privacy and security of registered players.

(v) The slot machine licensee's initial system of

internal and accounting controls applicable to Internet

20150HB0920PN1110 - 48 -

gaming, and the security and integrity of all financial

transactions in connection with the system, complies with

this chapter and regulations promulgated and adopted by

the board.

(vi) The slot machine licensee is in good standing

with the board.

(vii) The conduct of Internet gaming activities will

have a positive economic impact on this Commonwealth, its

municipalities and residents through increased revenue

and employment opportunities.

(viii) The slot machine licensee agrees that the

number of slot machines and table games in operation at

its licensed facility, as of the effective date of this

section, will not be permanently reduced as a result of

the authorization and commencement of Internet gaming.

(2) It shall be an express condition of any Internet

gaming certificate that a slot machine licensee shall

collect, report and pay all applicable taxes and fees and

shall maintain all books, records and documents pertaining to

the slot machine licensee's Internet gaming operations in a

manner and location within this Commonwealth as approved by

the board. All books, records and documents shall be

immediately available for inspection by the board during all

hours of operation in accordance with the regulations of the

board and shall be maintained in a manner and during periods

of time as the board shall require.

(b) Issuance of Internet gaming certificate.--

(1) Upon approval of a petition for an Internet gaming

certificate, the board shall issue an Internet gaming

certificate to the slot machine licensee. The issuance of an

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Internet gaming certificate prior to the full payment of the

authorization fee required under section 13B51 (relating to

Internet gaming authorization fee) shall not relieve the slot

machine licensee from the obligation to pay the authorization

fee in accordance with the requirements of section 13B51.

(2) Upon issuing an Internet gaming certificate, the

board shall amend the slot machine licensee's statement of

conditions to require the slot machine license to include

conditions pertaining to the requirements of this chapter.

power of the board to deny, revoke or suspend an Internet gaming

certificate issued in accordance with the requirements of this

section, an Internet gaming certificate shall be renewed every

three years and shall be subject to the requirements of section

1326 (relating to license renewals).

(d) Sanctions.--A slot machine licensee that fails to abide

by the requirements of this chapter or any condition contained

in the slot machine licensee's statement of conditions governing

the operation of Internet gaming shall be subject to board-

imposed administrative sanctions or other penalties authorized

under this part.

(e) Background investigations.--Each petition for an

Internet gaming certificate shall be accompanied by a

nonrefundable fee established by the board to cover the cost of

background investigations. The board shall determine by

regulation the persons involved, directly or indirectly, in a

slot machine licensee's Internet gaming operations who shall be

subject to background investigation. The reasonable and

necessary costs and expenses incurred in any background

investigation or other investigation or proceeding under this

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chapter shall be reimbursed to the board.

§ 13B14. Internet gaming certificate.

The following shall apply:

(1) An Internet gaming certificate shall be in effect

unless:

(i) The certificate is suspended or revoked by the

board consistent with the requirements of this part.

(ii) The slot machine license held by the

certificate holder is suspended, revoked or not renewed

by the board consistent with the requirements of this

part.

(iii) The slot machine licensee relinquishes or does

not seek renewal of its slot machine license.

(iv) The slot machine licensee does not seek renewal

of its Internet gaming certificate.

(2) The Internet gaming certificate shall include an

itemized list by type and of Internet games approved by the

board and authorized for Internet gaming conducted by the

slot machine licensee. The slot machine licensee may increase

or decrease the number of Internet games authorized for play

on its Internet website or change the type of Internet games

played on its Internet gaming website upon notice to the

board and approval by the board or a designated employee of

the board. Unless approved by the board or a designated

employee of the board, the total number and type of Internet

games offered for play by a slot machine licensee may not

differ from the number and type approved by the board and

authorized in the Internet gaming certificate.

(3) A slot machine licensee shall be required to update

the information in its initial Internet gaming petition at

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times and in the form and manner as prescribed by the board.

§ 13B15. Timing of initial Internet gaming authorizations.

The board shall prescribe the date on which petitions for an

Internet gaming certificate must be filed with the board and

shall approve or deny a petition within 90 days following

receipt.

SUBCHAPTER C

CONDUCT OF INTERNET GAMING

Sec.

13B21. Situs of Internet gaming operations.

13B22. Establishment of Internet gaming accounts.

13B23. Internet gaming account credits and payment.

13B24. Acceptance of account wagers.

13B25. Dormant Internet gaming accounts.

13B26. Log-in procedure required.

13B27. Information provided at log-in.

13B28. Prohibitions.

13B29. Commencement of Internet gaming operations.

§ 13B21. Situs of Internet gaming operations.

All wagers made through Internet gaming shall be deemed to be

initiated, received or otherwise made within the geographic

boundaries of this Commonwealth. Internet gaming must be

conducted by a slot machine licensee that has been issued an

Internet gaming certificate by the board in accordance with the

requirements of this chapter and regulations of the board. The

intermediate routing of electronic data associated or in

connection with Internet gaming shall not determine the location

or locations in which a bet or wager is initiated, received or

otherwise made.

§ 13B22. Establishment of Internet gaming accounts.

20150HB0920PN1110 - 52 -

(a) Registration restrictions.--Only a natural person who

has first established an Internet gaming account with a slot

machine licensee shall be permitted to play an Internet game

offered by or place any bet or wager associated with an Internet

game offered by the slot machine licensee. An Internet gaming

account shall be in the name of a natural person and may not be

in the name of any beneficiary, custodian, joint trust,

corporation, partnership or other organization or entity. A slot

machine licensee shall not:

(1) Permit an individual to establish an Internet gaming

account unless the person is 21 years of age or older.

(2) Permit an individual to establish an Internet gaming

account unless the individual holds an active players' club

membership which was applied for and issued at the slot

machine licensee's licensed facility.

(b) Establishment of Internet gaming accounts.--

(1) An Internet gaming account shall be executed in

person. Each Internet gaming account shall comply with the

internal controls of the slot machine licensee that, at a

minimum, require the following:

(i) The filing and execution of an Internet gaming

account application, the form of which has been

preapproved by the board.

(ii) Proof of age and residency as demonstrated by

at least two forms of identification approved by the

board through regulation.

(iii) Physical address of the principal residence of

the prospective account holder in this Commonwealth,

electronic mail address of the prospective account holder

and other contact information, as the board or slot

20150HB0920PN1110 - 53 -

machine licensee may require.

(iv) Password or other secured identification

provided by the slot machine licensee to access the

Internet gaming account or some other mechanism approved

by the board to authenticate the player as the holder to

the Internet gaming account.

(v) An acknowledgment under penalty of perjury that

false or misleading statements made in regard to an

application for an Internet gaming account may subject

the applicant to civil and criminal penalties.

(2) The slot machine licensee may accept or reject an

application after receipt and review of the application and

proof of age for compliance with the provisions of this

chapter. The slot machine licensee shall have the right, at

any time with or without cause, to suspend or close any

Internet gaming account at its sole discretion.

(3) The address provided by the applicant in the

application for an Internet gaming account shall be deemed

the proper address for the purposes of mailing checks,

account withdrawals, notices and other materials.

(4) An Internet gaming account shall not be assignable

or otherwise transferable, and a slot machine licensee may,

at any time, declare all or any part of an Internet gaming

account to be closed for wagering.

the slot machine licensee shall provide the prospective Internet

gaming account holder with a password to access the gaming

account or shall establish some other mechanism approved by the

board to authenticate the individual as the holder of the

Internet gaming account and allow the individual access to the

20150HB0920PN1110 - 54 -

Internet gaming account.

(d) Grounds for rejection.--Any prospective Internet gaming

account holder who provides false or misleading information on

the application for an Internet gaming account is subject to

rejection of the application or cancellation of the account by

the slot machine licensee.

(e) Suspension of Internet gaming account.--The slot machine

licensee shall have the right to suspend or close any Internet

gaming account at its discretion.

(f) Persons prohibited from establishing or maintaining an

Internet gaming account.--The following persons shall not be

entitled to establish or maintain an Internet gaming account:

(1) Any person under 21 years of age and persons located

outside the geographic boundaries of this Commonwealth.

(2) Any person on the list of persons who are to be

excluded or ejected from any licensed facility under section

1514 (relating to regulation requiring exclusion, ejection or

denial of access of certain persons), 1515 (relating to

repeat offenders excludable from licensed gaming facility) or

1516 (relating to list of persons self excluded from gaming

activities).

(3) Any gaming employee or key employee of a slot

machine licensee.

§ 13B23. Internet gaming account credits and payment.

(a) Credits to Internet gaming accounts.--Notwithstanding

any provision of this part to the contrary, credits to an

Internet gaming account shall not be made except as provided by

this section. The following shall apply:

(1) A deposit to an Internet gaming account by an

account holder may be submitted by the account holder to the

20150HB0920PN1110 - 55 -

slot machine licensee in one of the following forms:

(i) Cash given to the slot machine licensee.

(ii) Check, money order, negotiable order of

withdrawal or wire or electronic transfer, payable and

remitted to the slot machine licensee.

(iii) Notwithstanding section 1504 (relating to

wagering on credit), charges made to an account holder's

credit card upon the account holder's direct and personal

authorization, which authorization may be given to the

slot machine licensee in a form and manner prescribed by

regulation of the board, if the use of the credit card

has been approved by the slot machine licensee.

(iv) Any other method approved by the board.

(b) Payment of winnings.--When an Internet gaming account

holder wins an Internet game, the slot machine licensee shall

credit the holder's Internet gaming account the appropriate

amount pursuant to the rules of the particular game. When the

account holder logs off or cashes out, the slot machine licensee

shall credit the holder's gaming account in the amount of tokens

or other cash equivalents cashed in.

licensee shall have the right to:

(1) Credit an Internet gaming account as part of a

promotion.

(2) Refuse, for any valid reason, all or part of any

wager or deposit to the account of an account holder.

(d) Interest prohibited.--Funds deposited in a registered

player's Internet gaming account shall not bear interest to the

account holder.

(e) Debits to Internet gaming accounts.--Debits to an

20150HB0920PN1110 - 56 -

Internet gaming account shall not be made except as follows:

(1) When an account holder logs onto a gaming account

and exchanges account funds for Internet tokens or other cash

equivalents, the slot machine licensee shall debit the

holder's account in the amount of funds exchanged. Upon

receipt by a slot machine licensee of an account wager or an

account purchase order, the slot machine licensee shall debit

the account holder's Internet tokens or other cash

equivalents in the amount of the wager or purchase.

(2) A slot machine licensee may authorize a withdrawal

from an Internet gaming account when the account holder

submits to the slot machine licensee all of the following:

(i) Proper identification.

(ii) The correct password or other authentication

information for accessing the gaming account.

(iii) A properly completed and executed withdrawal

form in a form and manner approved by the board through

regulation.

(3) Upon receipt of a properly completed and executed

withdrawal form, and, if there are sufficient funds in the

gaming account to cover the withdrawal, the slot machine

licensee shall send, within three business days of receipt of

the withdrawal form, a check payable in the amount requested

to the account holder at the address specified in the

application for the Internet gaming account or shall transmit

payment to the account holder electronically as approved by

the board by regulation.

§ 13B24. Acceptance of account wagers.

(a) Acceptance.--A slot machine licensee may accept Internet

gaming account wagers or bets only as follows:

20150HB0920PN1110 - 57 -

(1) The account wager shall be placed directly with the

slot machine licensee by the account holder, after the slot

machine licensee has verified the account holder's physical

presence in this Commonwealth and that the individual seeking

to place a wager or bet is the registered account holder.

(2) The account holder provides the slot machine

licensee with the correct password or other authentication

information for access to his Internet gaming account.

(b) Nonacceptance.--A slot machine licensee may not accept

an account wager in an amount in excess of funds on deposit in

an Internet gaming account of the account holder placing the bet

or wager. Funds on deposit include amounts credited to an

account holder's Internet gaming account in accordance with this

chapter and any funds in the account at the time the wager is

placed.

§ 13B25. Dormant Internet gaming accounts.

(a) Dormant Internet gaming accounts.--Any funds remaining

in Internet gaming accounts inactive or dormant for the period

and under the conditions as established by regulation of the

board shall be paid 50% to the slot machine licensee and 50% to

the State Gaming Fund.

(b) Closure of dormant accounts.--Before closing a dormant

Internet gaming account, the slot machine licensee shall attempt

to contact the account holder by mail, phone or electronic mail

to inform the account holder that the Internet gaming account is

inactive and may be subject to termination at such time and

manner as determined by regulation of the board.

§ 13B26. Log-in procedure required.

(a) Establishment of log-in procedure.--Each slot machine

licensee shall establish a log-in procedure for Internet gaming

20150HB0920PN1110 - 58 -

account holders to access Internet gaming. The log-in procedure

shall include the provision of the appropriate authentication

information by the Internet gaming account holder for access to

the Internet gaming account. The slot machine licensee shall not

allow an account holder to log-in and access the Internet gaming

account holder's Internet gaming account unless the Internet

gaming account holder provides the correct password or other

authentication information.

(b) Exchange of funds.--Upon log-in, the Internet gaming

account holder shall have the option to exchange any amount of

funds in the Internet gaming account for Internet tokens or

other cash equivalents to be used for Internet gaming.

amount of the Internet gaming account holder's Internet tokens

or other cash equivalents shall be credited to the Internet

gaming account holder's Internet gaming account.

§ 13B27. Information provided at log-in.

The slot machine licensee shall configure its Internet gaming

website to include a link that, upon log-in, will allow an

Internet gaming account holder to access all of the following

information:

(1) The current amount of money in the Internet gaming

account holder's Internet gaming account, including the

current amount of the Internet gaming holder's Internet

tokens or other cash equivalents.

(2) The Internet gaming account holder's wins and losses

since the Internet gaming account was established.

(3) The Internet gaming account holder's wins and losses

at the beginning of the current gaming session and the wins

and losses at the end of the current gaming session.

20150HB0920PN1110 - 59 -

(4) The complete text in searchable format of the rules

of each Internet game offered by the slot machine licensee

and any other information as the board may require.

§ 13B28. Prohibitions.

Except as provided in this section, no slot machine licensee

or any person licensed under this part and no person acting on

behalf of, or under any arrangement with, a slot machine

licensee or other person licensed under this part shall:

(1) Make any loan to any person for the purpose of

crediting an Internet gaming account.

(2) Release or discharge any debt, either in whole or in

part, or make any loan which represents any losses incurred

by any Internet gaming account holder while playing Internet

games without maintaining a written record thereof in

accordance with regulations of the board.

§ 13B29. Commencement of Internet gaming operations.

A slot machine licensee may not operate or offer Internet

games for play on its Internet gaming website until the board

determines that:

(1) The slot machine licensee is in compliance with the

requirements of this part.

(2) The slot machine licensee's internal, administrative

and accounting controls are sufficient to meet the

requirements of section 13B32 (relating to internal,

administrative and accounting controls).

(3) The slot machine licensee's Internet gaming

employees, where applicable, are licensed, permitted or

otherwise authorized by the board to perform their respective

duties.

(4) The slot machine licensee is prepared in all

20150HB0920PN1110 - 60 -

respects to offer Internet gaming to the public over its

Internet gaming website.

(5) The slot machine licensee has implemented necessary

internal, administrative, accounting controls, security

arrangements and surveillance systems for the operation of

Internet gaming.

(6) The slot machine licensee is in compliance with or

has complied with section 13B51 (relating to Internet gaming

authorization fee).

SUBCHAPTER D

FACILITIES AND EQUIPMENT

Sec.

13B31. Responsibilities of slot machine licensee.

13B32. Internal, administrative and accounting controls.

§ 13B31. Responsibilities of slot machine licensee.

(a) Facilities and equipment.--All facilities and Internet

gaming devices and associated equipment shall:

(1) Be arranged in a manner promoting appropriate

security for Internet gaming.

(2) Include a closed-circuit visual monitoring system

according to rules or specifications approved by the board,

with board access to the slot machine licensee's Internet

gaming website, signal or transmission used in connection

with Internet gaming.

(3) Not be designed in any way that might interfere with

or impede the board in its regulation of Internet gaming.

(4) Comply in all respects with regulations of the

board.

(b) Location of equipment and restricted areas.--All

Internet gaming devices and associated equipment used by a slot

20150HB0920PN1110 - 61 -

machine licensee to conduct Internet gaming may be located, with

the prior approval of the board, in a restricted area on the

premises of the licensed facility within the geographic limits

of the county in this Commonwealth where the licensed facility

is situated. Any Internet gaming equipment used on a temporary

basis may, in accordance with regulations and approval of the

board, be located outside the geographic boundaries of the

county where the licensed facility is located. However, no

Internet gaming shall occur unless a wager is accepted by a slot

machine licensee within the geographic boundaries of this

Commonwealth. All wagers associated with Internet gaming shall

be deemed to be placed when received at the licensed facility of

the slot machine licensee. Any intermediate routing of

electronic data in connection with a wager shall not affect the

fact that the wager is placed in a licensed facility in this

Commonwealth.

shall be used in Internet gaming unless it is able to verify

that a player placing a wager is physically present in this

Commonwealth. The board shall require by regulation that

Internet games used by each slot machine licensee are verifying

each registered player's physical presence in this Commonwealth

each time the player logs onto a new playing session.

§ 13B32. Internal, administrative and accounting controls.

(a) Submissions to board.--Notwithstanding any provision of

this part, each slot machine licensee who holds or has applied

for an Internet gaming certificate to conduct Internet gaming in

accordance with this chapter shall submit a description of its

system of internal procedures and administrative and accounting

controls for Internet gaming to the board, including provisions

20150HB0920PN1110 - 62 -

that provide for real-time monitoring, recordation or storage of

all Internet games and a description of any changes to its

procedures and controls. The submission shall be made at least

90 days before Internet gaming operations are to commence or at

least 90 days before any change in those procedures or controls

is to take effect, unless otherwise directed by the board.

(b) Filing.--Notwithstanding subsection (a), the procedures

and controls may be implemented by a slot machine licensee upon

the filing of the procedures and controls with the board. Each

procedure or control submission shall contain both narrative and

diagrammatic representations of the system to be utilized with

regard to Internet gaming, including, but not limited to:

(1) Accounting controls, including the standardization

of forms and definition of terms to be utilized in the

Internet gaming operations.

(2) Procedures, forms and, where appropriate, formulas

to govern the following:

(i) calculation of hold percentages;

(ii) revenue drops;

(iii) expense and overhead schedules;

(iv) complimentary services; and

(v) cash equivalent transactions.

(3) Job descriptions and the system of personnel and

chain of command, establishing a diversity of responsibility

among employees engaged in Internet gaming operations and

identifying primary and secondary management and supervisory

positions for areas of responsibility, salary structure and

personnel practices.

(4) Procedures for the registration of players and

establishment of Internet gaming accounts, including a

20150HB0920PN1110 - 63 -

procedure for authenticating the age of applicants for gaming

accounts.

(5) Procedures for the termination of a registered

player's Internet gaming account by the account holder and

the return of any funds remaining in the gaming account to

the account holder.

(6) Procedures for the suspension or termination of a

dormant gaming account.

(7) Procedures for the logging in and authentication of

a registered player in order to enable the player to commence

Internet gaming and the logging off of the registered player

when the player has completed play, including a procedure to

automatically log a registered player out of the player's

Internet gaming account after a specified period of

inactivity.

(8) Procedures for the crediting and debiting of

registered players' Internet gaming accounts.

(9) Procedures for:

(i) the cashing of checks to establish credit in an

Internet gaming account;

(ii) the receipt and security of cash to establish

credit in an Internet gaming account, whether the cash is

received by wire transfer or by other means as approved

by the board; and

(iii) receipt of other electronic negotiable

instruments approved by the board to establish credit in

an Internet gaming account.

(10) Procedures for the withdrawal of funds from an

Internet gaming account by the registered player.

(11) The redemption of chips, tokens or other cash

20150HB0920PN1110 - 64 -

equivalents used in Internet gaming and the payout of

jackpots.

(12) The recording of transactions pertaining to

Internet gaming.

(13) Procedures for the security of personal identifying

information of registered players and other information as

required by the board and funds in Internet gaming accounts.

(14) Procedures for the transfer of Internet gaming

revenue from Internet gaming accounts to the counting

process.

(15) Procedures and security for the counting and

recordation of revenue.

(16) Procedures for the security of Internet gaming

devices and associated equipment within a restricted area on

the premises of the licensed facility or in a secure facility

inaccessible to the public and specifically designed for that

purpose off the premises of a licensed facility but within

the geographic boundaries of this Commonwealth as approved by

the board.

(17) Procedures and security standards as to receipt of

and the handling and storage of Internet gaming devices and

associated equipment.

(18) Procedures and security standards to protect the

slot machine licensee's Internet gaming website and Internet

gaming devices and associated equipment from tampering by any

person.

(19) Procedures for responding to suspected or actual

tampering with a slot machine licensee's Internet gaming

website and Internet gaming devices and associated equipment,

including partial or complete suspension of Internet gaming

20150HB0920PN1110 - 65 -

or the suspension of any or all player Internet gaming

accounts when warranted.

(20) Procedures to verify each registered player's

physical presence in this Commonwealth each time a wager is

placed on an Internet game.

(21) Procedures to assist problem and compulsive

gamblers, including procedures reasonably intended to prevent

a person from participating in Internet gaming activities in

accordance with sections 1514 (relating to regulation

requiring exclusion, ejection or denial of access of certain

persons), 1515 (relating to repeat offenders excludable from

licensed gaming facility) and 1516 (relating to list of

persons self excluded from gaming activities).

(1) The board shall review each submission required by

subsections (a) and (b) and shall determine whether the

submission conforms to the requirements of this chapter and

regulations promulgated by the board and whether the system

submitted provides adequate and effective controls for

Internet gaming operations of the particular slot machine

licensee.

(2) If the board determines that insufficiencies exist,

it shall specify the insufficiencies in writing to the slot

machine licensee, who shall make appropriate alterations to

ensure compliance with the requirements of this chapter and

regulations of the board. When the board determines a

submission to be adequate in all respects, it shall notify

the slot machine licensee.

(3) Except as otherwise provided in subsection (a), no

slot machine licensee shall commence or alter Internet gaming

20150HB0920PN1110 - 66 -

operations unless and until the system of procedures,

controls and alternations is approved by the board.

(d) Marketing permitted.--It shall be lawful for a slot

machine licensee to provide marketing information by means of

the Internet to players engaged in Internet gaming and to offer

the players incentives to visit the slot machine licensee's

licensed facility.

SUBCHAPTER E

TESTING AND CERTIFICATION

Sec.

13B41. Internet games and Internet gaming devices and

associated equipment testing and certification

standards.

§ 13B41. Internet games and Internet gaming devices and

associated equipment testing and certification

standards.

(a) Testing required.--

(1) No Internet game or Internet gaming device or

associated equipment shall be used to conduct Internet gaming

unless it has been tested by the board. The board may, in its

discretion and for the purpose of expediting the approval

process, refer testing to any testing laboratory as approved

by the board.

(2) The board shall establish, by regulation, technical

standards for approval of Internet games and Internet gaming

devices and associated equipment, including mechanical,

electrical or program reliability, security against tampering

and threats, the comprehensibility of wagering and noise and

light levels, as it may deem necessary to protect the

registered player from fraud or deception and to ensure the

20150HB0920PN1110 - 67 -

integrity of Internet gaming.

(b) Independent testing and certification facility.--Any

costs associated with the board's testing and certification

facility shall be assessed on persons authorized by the board to

distribute or otherwise provide Internet games and Internet

gaming devices and associated equipment to slot machine

licensees in this Commonwealth. The costs shall be assessed in

accordance with a schedule adopted by the board.

whether the testing and certification standards for Internet

games and Internet gaming devices and associated equipment as

adopted by another jurisdiction within the United States or any

of the testing and certification standards used by a slot

machine licensee are comprehensive and thorough and provide

similar and adequate safeguards as those required by this

chapter. If the board makes that determination, it may permit

the person authorized to distribute or otherwise provide

Internet games and Internet gaming devices and associated

equipment to furnish Internet games and Internet gaming devices

and associated equipment to slot machine licensees in this

Commonwealth without undergoing the full testing and

certification process by the board's independent testing and

certification facility.

SUBCHAPTER F

TAXES AND FEES

Sec.

13B51. Internet gaming authorization fee.

13B52. Internet gaming tax.

§ 13B51. Internet gaming authorization fee.

(a) Amount of authorization fee.--Each slot machine licensee

20150HB0920PN1110 - 68 -

that is issued an Internet gaming certificate to conduct

Internet gaming in accordance with section 13B11 (relating to

authorization to conduct Internet gaming) shall pay a one-time

nonrefundable authorization fee in the amount of $5,000,000.

(b) Payment of fee.--A slot machine licensee that is

required to pay the authorization fee under subsection (a) shall

remit the fee to the board within 60 days of the board's

approval of its petition to conduct Internet gaming. The board

may allow the fee to be paid in installments, provided that all

such installments are paid within the 60-day time period and

that the installment payments are made in accordance with the

terms of an agreement between the board and the slot machine

licensee that sets forth the terms of the installment payment.

this chapter, a slot machine licensee that has been issued an

Internet gaming certificate in accordance with the requirements

of this chapter shall pay a renewal fee in the amount of

$500,000 upon the renewal of its Internet gaming certificate in

accordance with sections 13B13(c) (relating to issuance of

Internet gaming certificate) and 1326 (relating to license

renewals).

§ 13B52. Internet gaming tax.

(a) Imposition of tax.--Each slot machine licensee that

operates Internet gaming shall report to the department and pay

from its daily Internet gaming gross revenue, on a form and in

the manner prescribed by the department, a tax of 28% of its

daily Internet gaming gross revenue.

(b) Deposits and distributions.--

(1) The tax imposed under subsection (a) shall be

payable to the department on a weekly basis and shall be

20150HB0920PN1110 - 69 -

based upon Internet gaming gross revenue derived during the

previous week.

(2) All funds owed to the Commonwealth under this

section shall be held in trust for the Commonwealth by the

slot machine licensee until the funds are paid to the

department for deposit in the appropriate fund. A slot

machine licensee shall establish a separate bank account into

which Internet gaming gross revenue shall be deposited and

maintained until such time as the funds are paid to the

department under this section.

shall be deposited as follows:

(1) Fifty-five percent shall be deposited into the State

Lottery Fund and shall be allocated solely for the purpose of

providing property tax relief for the elderly under Chapter

13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873,

No.1), known as the Taxpayer Relief Act.

(2) Thirty percent shall be deposited in the State

Lottery Fund for the purpose of providing free or reduced

fare transit service for the elderly under Chapter 9 of the

act of August 26, 1971 (P.L.351, No.91), known as the State

Lottery Law, and the act of February 11, 1976 (P.L.14,

No.10), known as the Pennsylvania Rural and Intercity Common

Carrier Surface Transportation Assistance Act.

(3) Moneys deposited under paragraphs (1) and (2) are

hereby appropriated for the purposes enumerated in paragraphs

(1) and (2).

(4) Fifteen percent shall be deposited into the fund

established in accordance with section 1405 (relating to

Pennsylvania Race Horse Development Fund). All moneys

20150HB0920PN1110 - 70 -

deposited into the Pennsylvania Race Horse Development Fund

shall be distributed in accordance with section 1406

(relating to distributions from Pennsylvania Race Horse

Development Fund) and shall be distributed and used solely

for the purposes enumerated in section 1406 and for no other

purpose whatsoever.

SUBCHAPTER G

MISCELLANEOUS PROVISIONS

Sec.

13B61. Participation in Internet gaming by persons outside

Commonwealth.

13B62. Construction.

§ 13B61. Participation in Internet gaming by persons outside

Commonwealth.

Notwithstanding any other provision of this chapter to the

contrary, a slot machine licensee may accept Internet gaming

wagers from a person who is not physically present in this

Commonwealth, if the board determines the following:

(1) Participation in Internet gaming and acceptance of

wagers associated with Internet gaming from a person not

physically present in this Commonwealth is not inconsistent

with Federal law or regulation or the law or regulation of

the jurisdiction, including any foreign jurisdiction, in

which the person is located.

(2) Participation in Internet gaming is conducted

pursuant to an interstate compact or reciprocal agreement

between the Commonwealth and another jurisdiction, including

a foreign jurisdiction, to which the Commonwealth is a party

and the interstate compact or reciprocal agreement is not

inconsistent with Federal law or regulation.

20150HB0920PN1110 - 71 -

§ 13B62. Construction.

The following apply:

(1) Internet gaming in this Commonwealth shall be

subject to and preempted and superseded by the provisions of

the Unlawful Internet Gambling Enforcement Act of 2006

(Public Law 109-347, 31 U.S.C. § 5361 et seq.) and any other

applicable Federal law.

(2) Internet gaming shall be deemed to take place where

a licensed facility's server is located in this Commonwealth,

regardless of the registered player's location within this

Commonwealth.

Section 10. Sections 1501(b), 1504 and 1509(c) of Title 4

are amended to read:

§ 1501. Responsibility and authority of department.

* * *

(b) Application of rules and regulations.--The department

may prescribe the extent, if any, to which any rules and

regulations shall be applied without retroactive effect. The

department shall have authority to prescribe the forms and the

system of accounting and recordkeeping to be employed and

through its representative shall at all times have power of

access to and examination and audit of any equipment and records

relating to all aspects of the operation of slot machines [and],

table games and Internet games under this part.

* * *

§ 1504. Wagering on credit.

Except as otherwise provided in this section, slot machine

licensees shall not extend credit. Slot machine licensees shall

not accept credit cards, charge cards or debit cards from a

patron or a player for the exchange or purchase of slot machine

20150HB0920PN1110 - 72 -

credits or for an advance of coins or currency to be utilized by

a player to play slot machine games or extend credit in any

manner to a player so as to enable the player to play slot

machines. Slot machine licensees who hold a table game operation

certificate or an Internet gaming certificate may extend credit

for slot machine gaming, table games and Internet gaming in

accordance with section 13A26 (relating to cash equivalents).

§ 1509. Compulsive and problem gambling program.

* * *

(1) Each slot machine licensee shall obtain a toll-free

telephone number to be used to provide persons with

information on assistance for compulsive or problem gambling.

Each licensee shall conspicuously post at least 20 signs

similar to the following statement:

If you or someone you know has a gambling problem, help

is available. Call (Toll-free telephone number).

The signs must be posted within 50 feet of each entrance and

exit, within 50 feet of each automated teller machine

location within the licensed facility and in other

appropriate public areas of the licensed facility as

determined by the slot machine licensee.

(2) Each racetrack where slot machines or table games

are operated shall print a statement on daily racing programs

provided to the general public that is similar to the

following:

If you or someone you know has a gambling problem, help

is available. Call (Toll-free telephone number).

(2.1) Each slot machine licensee shall:

(i) Cause the words "If you or someone you know has

20150HB0920PN1110 - 73 -

a gambling problem and wants help, call 1-800 XXXX," or

some comparable language approved by the board, which

language shall include the words "gambling problem" and

"call 1-800 XXXX," to be prominently and continuously

displayed to any person visiting or logged onto the slot

machine licensee's Internet gaming website.

(ii) Provide a mechanism by which an Internet gaming

account holder may establish the following controls on

wagering activity through the Internet gaming account:

(A) A limit on the amount of money lost within a

specified period of time and the length of time the

account holder will be unable to participate in

gaming if the holder reaches the established loss

limit.

(B) A limit on the maximum amount of any single

wager on any Internet game.

through the account for any number of hours or days.

(iii) Not mail or otherwise forward any gaming-

related promotional material or electronic mail to a

registered player during any period in which Internet

gaming through the registered players Internet gaming

account has been suspended or terminated. The slot

machine licensee shall provide a mechanism by which an

account holder may change the controls, except that,

while Internet gaming through the Internet gaming account

is suspended, the account holder may not change gaming

controls until the suspension expires, but the holder

shall continue to have access to the account and shall be

permitted to withdraw funds from the account upon proper

20150HB0920PN1110 - 74 -

application for the funds to the slot machine licensee.

(iv) Establish a system by which a registered player

who sustains continuous losses at a sufficient level in

accordance with regulations of the board will have mailed

or otherwise forwarded to his residential mailing address

and electronic mail address:

(A) a list detailing all gaming winnings and

losses through the Internet gaming account;

(B) contact information for assistance with

identifying a potential gambling problem; and

problem gambling as deemed appropriate by the board,

in consultation with the Department of Drug and

Alcohol Programs.

(3) A licensed facility which fails to post or print the

warning sign in accordance with paragraph (1) [or], (2) or

(2.1)(i) shall be assessed a fine of $1,000 a day for each

day the minimum number of signs are not posted or the

required statement is not printed as provided in this

subsection.

(4) A slot machine licensee that fails to establish the

mechanisms, controls and systems in accordance with paragraph

(2.1)(ii), (iii) and (iv) shall be assessed a fine of not

less than $5,000 per day for each day the mechanisms,

controls and systems are not available to Internet gaming

account holders.

* * *

Section 11. Section 1512 of Title 4 is amended by adding a

subsection to read:

§ 1512. Financial and employment interests.

20150HB0920PN1110 - 75 -

* * *

(a.6) Prohibition related to Internet gaming.--

(1) Except as set forth in paragraph (2), no executive-

level public employee, public official or party officer or

immediate family member thereof shall hold, directly or

indirectly, an interest in, or hold employment with, or

represent, appear for, or negotiate on behalf of, or derive

any remuneration, payment, benefit or any other thing of

value for any services, including, but not limited to,

consulting or similar services, from any holder of, or

applicant for, an Internet gaming certificate, or other

authorization to conduct Internet gaming, or any holding or

intermediary company with respect thereto, or any Internet

gaming affiliate of any holder of, or applicant for, a slot

machine license, or any holding or intermediary company with

respect thereto, or any business, association, enterprise or

other entity that is organized, in whole or in part, for the

purpose of promoting, advocating for, or advancing the

interests of the Internet gaming industry generally or any

Internet gaming-related business or businesses in connection

with any cause, application or matter.

(2) A member of the immediate family of an executive-

level public employee, public official or party officer may

hold employment with the holder of, or applicant for, an

Internet gaming certificate or other authorization to conduct

Internet gaming, or any holding or intermediary company with

respect thereto, or any Internet gaming affiliate of any

holder of, or applicant for, a slot machine license, or any

holding or intermediary company with respect thereto if, in

the judgment of the State Ethics Commission or the Supreme

20150HB0920PN1110 - 76 -

Court, as appropriate, employment will not interfere with the

responsibilities of the executive-level public employee,

public official or party officer and will not create a

conflict of interest, or reasonable risk of the public

perception of a conflict of interest, on the part of the

executive-level public employee, public official or party

officer.

* * *

Section 12. Sections 1514 heading, (a), (d), (e) and (f),

1515, 1516 and 1517(b)(1), (c)(11) and (12) and (e)(1) of Title

4 are amended to read:

§ 1514. Regulation requiring exclusion [or], ejection or denial

of access of certain persons.

(a) General rule.--The board shall by regulation provide for

the establishment of a list of persons who are to be excluded or

ejected from any licensed facility or who may be denied access

to Internet gaming activity. The provisions shall define the

standards for exclusion and shall include standards relating to

persons who are career or professional offenders as defined by

regulations of the board or whose presence in a licensed

facility or access to Internet gaming activities would, in the

opinion of the board, be inimical to the interest of the

Commonwealth or of licensed gaming therein, or both.

* * *

(d) Sanctions.--The board may impose sanctions upon a

licensed gaming entity in accordance with this part if the

licensed gaming entity knowingly fails to exclude or eject from

the premises of any licensed facility or deny access to Internet

gaming activity any person placed by the board on the list of

persons to be excluded [or], ejected or denied access.

20150HB0920PN1110 - 77 -

(e) List not all-inclusive.--Any list compiled by the board

of persons to be excluded [or], ejected or denied access shall

not be deemed an all-inclusive list, and a licensed gaming

entity shall have a duty to keep from the licensed facility and

from Internet gaming activity persons known to it to be within

the classifications declared in this section and the regulations

promulgated under this section whose presence in a licensed

facility or participation in Internet gaming activities would be

inimical to the interest of the Commonwealth or of licensed

gaming therein, or both, as defined in standards established by

the board.

(f) Notice.--Whenever the bureau seeks to place the name of

any person on a list pursuant to this section, the bureau shall

serve notice of this fact to such person by personal service or

certified mail at the last known address of the person. The

notice shall inform the person of the right to request a hearing

under subsection (g). The bureau may also provide notice by

electronic mail, if the electronic mail address of the person is

known to the bureau.

* * *

§ 1515. Repeat offenders excludable from licensed gaming

facility.

A licensed gaming entity may exclude or eject from its

licensed facility or deny access to Internet gaming activities

any person who is known to it to have been convicted of a

misdemeanor or felony committed in or on the premises of any

licensed facility. Nothing in this section or in any other law

of this Commonwealth shall limit the right of a licensed gaming

entity to exercise its common law right to exclude or eject

permanently from its licensed facility or permanently deny

20150HB0920PN1110 - 78 -

access to its Internet gaming activities any person who disrupts

the operations of its premises or its Internet gaming

operations, threatens the security of its premises or its

occupants or is disorderly or intoxicated or who threatens the

security of its Internet gaming operations.

§ 1516. List of persons self excluded from gaming activities.

(a) General rule.--The board shall provide by regulation for

the establishment of a list of persons self excluded from gaming

activities, including Internet gaming activities, at all

licensed facilities. Any person may request placement on the

list of self-excluded persons by acknowledging in a manner to be

established by the board that the person is a problem gambler

and by agreeing that, during any period of voluntary exclusion,

the person may not collect any winnings or recover any losses

resulting from any gaming activity at licensed facilities,

including Internet gaming activities.

(b) Regulations.--The regulations of the board shall

establish procedures for placements on and removals from the

list of self-excluded persons. The regulations shall establish

procedures for the transmittal to licensed gaming entities of

identifying information concerning self-excluded persons and

shall require licensed gaming entities to establish procedures

designed at a minimum to deny self-excluded persons access to

Internet gaming and to remove self-excluded persons from

targeted mailings or other forms of advertising or promotions

and deny self-excluded persons access to complimentaries, check

cashing privileges, club programs and other similar benefits.

shall not be liable to any self-excluded person or to any other

party in any judicial proceeding for any harm, monetary or

20150HB0920PN1110 - 79 -

otherwise, which may arise as a result of:

(1) the failure of a licensed gaming entity to withhold

gaming privileges from or restore gaming privileges to a

self-excluded person; [or]

(1.1) the failure of a licensed gaming entity to

withhold Internet gaming privileges from or restore Internet

gaming privileges to a self-excluded person; or

(2) otherwise permitting or not permitting a self-

excluded person to engage in gaming activity in the facility

or participate in Internet gaming while on the list of self-

excluded persons.

(d) Disclosure.--Notwithstanding any other law to the

contrary, the board's list of self-excluded persons shall not be

open to public inspection. Nothing in this section, however,

shall be construed to prohibit a licensed gaming entity from

disclosing the identity of persons self excluded pursuant to

this section to affiliated gaming entities in this Commonwealth

or other jurisdictions for the limited purpose of assisting in

the proper administration of responsible gaming programs

operated by affiliated licensed gaming entities.

§ 1517. Investigations and enforcement.

* * *

(b) Powers and duties of department.--

(1) The department shall at all times have the power of

access to examine and audit equipment and records relating to

all aspects of the operation of slot machines [or], table

games or Internet games under this part.

* * *

Pennsylvania State Police shall have the following powers and

20150HB0920PN1110 - 80 -

duties:

* * *

(11) Conduct administrative inspections on the premises

of licensed racetrack or nonprimary location or licensed

facility, including restricted areas and redundancy

facilities used by a slot machine licensee in its Internet

gaming operations, at such times, under such circumstances

and to such extent as the bureau determines to ensure

compliance with this part and the regulations of the board

and, in the course of inspections, review and make copies of

all documents and records required by the inspection through

onsite observation and other reasonable means to assure

compliance with this part and regulations promulgated under

this part.

(12) Conduct audits or verification of information of

slot machine [or], table game or Internet gaming operations

at such times, under such circumstances and to such extent as

the bureau determines. This paragraph includes reviews of

accounting, administrative and financial records and

management control systems, procedures and records utilized

by a slot machine licensee.

* * *

(e) Inspection, seizure and warrants.--

(1) The bureau, the department and the Pennsylvania

State Police shall have the authority without notice and

without warrant to do all of the following in the performance

of their duties:

(i) Inspect and examine all premises where slot

machine [or], table game or Internet gaming operations

are conducted, slot machines, table game devices and

20150HB0920PN1110 - 81 -

associated equipment or Internet gaming devices and

associated equipment are manufactured, sold, distributed

or serviced or where records of these activities are

prepared or maintained.

(ii) Inspect all equipment and supplies in, about,

upon or around premises referred to in subparagraph (i).

(iii) Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

(iv) Inspect, examine and audit all books, records

and documents pertaining to a slot machine licensee's

operation.

(v) Seize, impound or assume physical control of any

book, record, ledger, game, device, cash box and its

contents, count room or its equipment, Internet gaming

devices and associated equipment or slot machine [or],

table game or Internet gaming operations.

* * *

Section 13. Section 1518(a)(3), (4), (5), (7.1), (11),

(13.1), (15) and (17) and (b)(1),(2) and (3) of Title 4 are

amended and subsections (a) and (b) are amended by adding

paragraphs to read:

§ 1518. Prohibited acts; penalties.

(a) Criminal offenses.--

* * *

(3) It shall be unlawful for any licensed entity, gaming

employee, key employee or any other person to permit a slot

machine, table game or table game device, Internet game or

Internet gaming device or associated equipment to be

operated, transported, repaired or opened on the premises of

20150HB0920PN1110 - 82 -

a licensed facility by a person other than a person licensed

or permitted by the board pursuant to this part.

(3.1) It shall be unlawful for any person who does not

possess a valid and then effective Internet gaming

certificate issued by the board in accordance with Chapter

13B (relating to Internet gaming) to accept any wager

associated with any Internet game from any individual

physically located in this Commonwealth at the time of such

play or wager.

(4) It shall be unlawful for any licensed entity or

other person to manufacture, supply or place slot machines,

table games, table game devices or associated equipment or

Internet game or Internet gaming devices or associated

equipment into play or display slot machines, table games,

table game devices or associated equipment on the premises of

a licensed facility without the authority of the board.

(4.1) It shall be unlawful for any slot machine licensee

to offer Internet games into play or display such games on

its Internet gaming website without the approval of the

board.

(4.2) It shall be unlawful for any licensed entity or

other person to manufacture, supply or place Internet gaming

devices or associated equipment into operation at a licensed

facility without the approval of the board.

(5) Except as provided for in section 1326 (relating to

license renewals), it shall be unlawful for a licensed entity

or other person to manufacture, supply, operate, carry on or

expose for play any slot machine, table game, table game

device or associated equipment, Internet game or Internet

gaming device or associated equipment after the person's

20150HB0920PN1110 - 83 -

license has expired and prior to the actual renewal of the

license.

* * *

(7.1) It shall be unlawful for an individual to do any

of the following:

(i) Use or possess counterfeit, marked, loaded or

tampered with table game devices or associated equipment,

chips or other cheating devices in the conduct of gaming

under this part, except that an authorized employee of a

licensee or an authorized employee of the board may

possess and use counterfeit chips or table game devices

or associated equipment that have been marked, loaded or

tampered with, or other cheating devices or any

unauthorized Internet gaming device in performance of the

duties of employment for training, investigative or

testing purposes only.

(ii) Knowingly, by a trick or sleight of hand

performance or by fraud or fraudulent scheme, or

manipulation, table game device or other device, or

Internet gaming device for himself or for another, win or

attempt to win any cash, property or prize at a licensed

facility or to reduce or attempt to reduce a losing

wager.

(7.2) It shall be unlawful for a person to knowingly

alter, tamper or manipulate Internet gaming devices or

associated equipment, including software, system programs,

hardware and any other device or equipment used in Internet

gaming operations, in order to alter the odds or the payout

of an Internet game or to disable the Internet game from

operating according to the rules of the game as authorized by

20150HB0920PN1110 - 84 -

the board.

(7.3) It shall be unlawful for a person to knowingly

offer, or allow to be offered, any Internet game that has

been altered, tampered with or manipulated in a way that

affects the odds or the payout of an Internet game, or

disables the Internet game from operating according to the

rules of the game as authorized by the board.

* * *

(11) It shall be unlawful for a licensed gaming entity

that is a licensed racing entity and that has lost the

license issued to it by either the State Horse Racing

Commission or the State Harness Racing Commission under the

Race Horse Industry Reform Act or that has had that license

suspended to operate slot machines [or], table games or

Internet games at the racetrack for which its slot machine

license was issued unless the license issued to it by either

the State Horse Racing Commission or the State Harness Racing

Commission will be subsequently reissued or reinstated within

30 days after the loss or suspension.

* * *

(13.1) It shall be unlawful for an individual under 21

years of age to wager, play or attempt to play a slot machine

or table game at a licensed facility or wager, play or

attempt to play an Internet game.

(13.2) It shall be unlawful to allow a person under 21

years of age to open, maintain or use in any way an Internet

gaming account. Any slot machine licensee or employee of a

slot machine licensee who knowingly allows a person under 21

years of age to open, maintain or use an Internet gaming

account shall be subject to the penalty set forth in this

20150HB0920PN1110 - 85 -

section, except that the establishment of all of the

following facts by a slot machine licensee or employee of a

slot machine licensee shall constitute a defense to any

regulatory action by the board or the penalty authorized

under this section:

(i) the underage person falsely represented that he

was of the permitted 21 years of age in the application

for an Internet gaming account; and

(ii) the establishment of the Internet gaming

account was made in good faith reliance upon such

representation and in the reasonable belief that the

underage person was 21 years of age.

* * *

(15) It shall be unlawful for a licensed gaming entity

to require a wager to be greater than the stated minimum

wager or less than the stated maximum wager. However, a wager

made by a player and not rejected by a licensed gaming entity

prior to commencement of play shall be treated as a valid

wager. A wager accepted by a dealer or through an Internet

game shall be paid or lost in its entirety in accordance with

the rules of the game, notwithstanding that the wager

exceeded the current table maximum wager or Internet game

wager or was lower than the current table minimum wager or

minimum Internet game wager.

* * *

(17) It shall be unlawful for an individual to claim,

collect or take, or attempt to claim, collect or take, money

or anything of value in or from a slot machine, gaming table

or other table game device, or Internet game or Internet

gaming device with the intent to defraud, or to claim,

20150HB0920PN1110 - 86 -

collect or take an amount greater than the amount won, or to

manipulate with the intent to cheat, any component of any

slot machine, table game or table game device, Internet game

or Internet gaming device in a manner contrary to the

designed and normal operational purpose.

(b) Criminal penalties and fines.--

(1) (i) A person that commits a first offense in

violation of 18 Pa.C.S. § 4902, 4903 or 4904 in

connection with providing information or making any

statement, whether written or oral, to the board, the

bureau, the department, the Pennsylvania State Police,

the Office of Attorney General or a district attorney as

required by this part commits an offense to be graded in

accordance with the applicable section violated. A person

that is convicted of a second or subsequent violation of

18 Pa.C.S. § 4902, 4903 or 4904 in connection with

providing information or making any statement, whether

written or oral, to the board, the bureau, the

department, the Pennsylvania State Police, the Office of

Attorney General or a district attorney as required by

this part commits a felony of the second degree.

(ii) A person that violates subsection (a)(2), (3)

and (4) through (12) or (17) commits a misdemeanor of the

first degree. A person that is convicted of a second or

subsequent violation of subsection (a)(2), (3) and (4)

through (12) or (17) commits a felony of the second

degree.

(2) (i) For a first violation of subsection (a)(1),

(2), (3) and (4) through (12) or (17), a person shall be

sentenced to pay a fine of:

20150HB0920PN1110 - 87 -

(A) not less than $75,000 nor more than $150,000

if the person is an individual;

(B) not less than $300,000 nor more than

$600,000 if the person is a licensed gaming entity;

$300,000 if the person is a licensed manufacturer

[or], supplier[.] or gaming service provider or other

person authorized by the board to provide Internet

games and Internet gaming devices or associated

equipment.

(ii) For a second or subsequent violation of

subsection (a)(1), (2), (3) and (4) through (12) or (17),

a person shall be sentenced to pay a fine of:

(A) not less than $150,000 nor more than

$300,000 if the person is an individual;

(B) not less than $600,000 nor more than

$1,200,000 if the person is a licensed gaming entity;

$600,000 if the person is a licensed manufacturer

[or], supplier[.], or gaming service provider or

other person authorized by the board to provide

Internet games and Internet gaming devices or

associated equipment.

(2.1) A person that commits an offense in violation of

subsection (a)(3.1) commits a felony of the second degree and

shall be sentenced to pay a fine of not less than $500,000

nor more than $1,000,000. A person that is convicted of a

second or subsequent violation of subsection (a)(3.1) commits

20150HB0920PN1110 - 88 -

a felony of the first degree and shall be sentenced to pay a

fine of not less than $1,000,000 nor more than $2,500,000.

(3) An individual who commits an offense in violation of

subsection (a)(13) [or], (13.1) or (13.2) commits a

nongambling summary offense and upon conviction of a first

offense shall be sentenced to pay a fine of not less than

$200 nor more than $1,000. An individual that is convicted of

a second or subsequent offense under subsection (a)(13) [or],

(13.1) or (13.2) shall be sentenced to pay a fine of not less

than $500 nor more than $1,500. In addition to the fine

imposed, an individual convicted of an offense under

subsection (a)(13) or (13.1) may be sentenced to perform a

period of community service not to exceed 40 hours.

* * *

Section 14. Section 1901(a) of Title 4 is amended by adding

a paragraph to read:

§ 1901. Appropriations.

(a) Appropriation to board.--

* * *

(3) The sum of $5,000,000 is hereby appropriated from

the State Gaming Fund to the Pennsylvania Gaming Control

Board for salaries, wages and all necessary expenses for the

proper operation and administration of the board for the

expansion of gaming associated with Internet gaming. This

appropriation shall be a supplemental appropriation for

fiscal year 2014-2015 and shall be in addition to the

appropriation contained in the act of July 10, 2014 (P.L. ,

No.10A), known as the Gaming Control Appropriation Act of

2014.

* * *

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Section 15. This act shall take effect immediately.

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