AN ACT

 

1Amending Title 4 (Amusements) of the Pennsylvania Consolidated
2Statutes, in general provisions, further providing for
3definitions, in Pennsylvania Gaming Control Board, further
4providing for general and specific powers, for slot machine
5licensee application appeals from board, for board minutes
6and records, for regulatory authority of board, for reports
7of board, for diversity goals of board, for Category 3 slot
8machine license, for supplier licenses and for manufacturer
9licenses; providing for Internet gaming; in administration
10and enforcement, further providing for responsibility and
11authority of the Department of Revenue, for wagering on
12credit, for compulsive and problem gambling program, for
13financial and employment interest, for regulation requiring
14exclusion or ejection of certain persons, for repeat
15offenders excludable from licensed gaming facility, for list
16of persons self excluded from gaming activities, for
17investigations and enforcement and for prohibited acts and
18penalties; in miscellaneous provisions, further providing for
19appropriations; and making an editorial change.

20The General Assembly of the Commonwealth of Pennsylvania
21hereby enacts as follows:

22Section 1. The definitions of "associated equipment," "cash 
23equivalent," "cheat," "cheating or thieving device," "conduct of 
24gaming," "contest," "counterfeit chip," "gaming employee," 
25"gaming school," "key employee," "licensed facility," "rake," 
26"supplier," "supplier license" and "table game" in section 1103

1of Title 4 of the Pennsylvania Consolidated Statutes are amended
2and the section is amended by adding definitions to read:

3§ 1103. Definitions.

4The following words and phrases when used in this part shall
5have the meanings given to them in this section unless the
6context clearly indicates otherwise:

7* * *

8"Associated equipment." Any equipment or mechanical, 
9electromechanical or electronic contrivance, component or 
10machine used in connection with slot machines or table games, 
11including linking devices which connect to progressive slot 
12machines or slot machines, replacement parts, equipment which 
13affects the proper reporting and counting of gross terminal 
14revenue [and], gross table game revenue and gross Internet 
15gaming revenue, computerized systems for controlling and 
16monitoring slot machines [or], table games or Internet games, 
17including, but not limited to, the central control computer to 
18which all slot machines communicate [and], devices for weighing 
19or counting money and Internet gaming devices necessary for the 
20operation of Internet games as approved by the Pennsylvania 
21Gaming Control Board.

22* * *

23"Authorized Internet game." A table game, slot machine or
24any other game approved by regulation of the Pennsylvania Gaming
25Control Board to be suitable for use for Internet gaming
26activities offered by a slot machine licensee in accordance with
27the requirements of Chapter 13B (relating to Internet gaming).

28* * *

29"Cash equivalent." An asset that is readily convertible to
30cash, including, but not limited to, any of the following:

1(1) Chips or tokens.

2(2) Travelers checks.

3(3) Foreign currency and coin.

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

5(5) Personal checks or drafts.

6(6) A negotiable instrument applied against credit
7extended by a certificate holder, an Internet gaming 
8certificate holder or a financial institution.

9(7) Any other instrument or representation of value that
10the Pennsylvania Gaming Control Board deems a cash
11equivalent.

12* * *

13"Certificate." An Internet gaming certificate issued to a
14slot machine licensee in accordance with section 13B13 (relating
15to issuance of Internet gaming certificate).

16"Cheat." To defraud or steal from any player, slot machine 
17licensee or the Commonwealth while operating or playing a slot 
18machine [or], table game[,] or Internet game, including causing, 
19aiding, abetting or conspiring with another person to do so. The 
20term shall also mean to alter or causing, aiding, abetting or 
21conspiring with another person to alter the elements of chance, 
22method of selection or criteria which determine:

23(1) The result of a slot machine game [or], table game 
24or Internet game.

25(2) The amount or frequency of payment in a slot machine
26game [or], table game or Internet game.

27(3) The value of a wagering instrument.

28(4) The value of a wagering credit.

29The term does not include altering a slot machine, table game 
30device or associated equipment or Internet gaming device or 

1associated equipment for maintenance or repair with the approval 
2of a slot machine licensee.

3"Cheating or thieving device." A device or software used or
4possessed with the intent to be used to cheat during the
5operation or play of any slot machine [or], table game or 
6Internet game. The term shall also include any device used to
7alter a slot machine [or], a table game device, an Internet game 
8or Internet gaming device or associated equipment without the
9slot machine licensee's approval.

10* * *

11"Conduct of gaming." The licensed placement, operation and 
12play of slot machines [and], table games and Internet games 
13under this part, as authorized and approved by the Pennsylvania 
14Gaming Control Board.

15"Contest." A table game or Internet game competition among
16players for cash, cash equivalents or prizes.

17* * *

18"Counterfeit chip." Any object that is:

19(1) used or intended to be used to play a table game at
20a certificate holder's licensed facility and which was not
21issued by that certificate holder for such use; [or]

22(2) presented to a certificate holder for redemption if
23the object was not issued by the certificate holder[.];

24(3) used or intended to be used to play an Internet game
25offered online by a slot machine licensee and which was not
26approved by the slot machine licensee for such use; or

27(4) presented online to a slot machine licensee during
28play of an Internet game for redemption, if the object was
29not issued by the slot machine licensee.

30* * *

1"Gaming employee." Any employee of a slot machine licensee, 
2including, but not limited to:

3(1) Cashiers.

4(2) Change personnel.

5(3) Count room personnel.

6(4) Slot attendants.

7(5) Hosts or other individuals authorized to extend
8complimentary services, including employees performing 
9functions similar to those performed by a gaming junket 
10representative.

11(6) Machine mechanics, computer machine technicians or 
12table game device technicians.

13(7) Security personnel.

14(8) Surveillance personnel.

15(9) Promotional play supervisors, credit supervisors, 
16pit supervisors, cashier supervisors, shift supervisors, 
17table game managers and assistant managers and other 
18supervisors and managers, except for those specifically 
19identified in this part as key employees.

20(10) Boxmen.

21(11) Dealers or croupiers.

22(12) Floormen.

23(13) Personnel authorized to issue promotional play.

24(14) Personnel authorized to issue credit.

25The term shall include employees of a person holding a
26supplier's license whose duties are directly involved with the
27repair or distribution of slot machines, table game devices or
28associated equipment or Internet gaming devices or associated 
29equipment sold or provided to a licensed facility within this
30Commonwealth as determined by the Pennsylvania Gaming Control

1Board. The term shall further include employees of a person 
2authorized by the board to supply goods and services related to 
3Internet gaming or any subcontractor or an employee of a 
4subcontractor that supplies Internet gaming devices or 
5associated equipment to a holder of an Internet gaming 
6certificate. The term does not include bartenders, cocktail
7servers or other persons engaged solely in preparing or serving
8food or beverages, clerical or secretarial personnel, parking
9attendants, janitorial, stage, sound and light technicians and
10other nongaming personnel as determined by the board.

11* * *

12"Gaming school." Any educational institution approved by the
13Department of Education as an accredited college or university,
14community college, Pennsylvania private licensed school or its
15equivalent and whose curriculum guidelines are approved by the
16Department of Labor and Industry to provide education and job
17training related to employment opportunities associated with
18slot machines [or], table games or Internet games, including
19slot machine, table game device and associated equipment
20maintenance and repair and Internet gaming devices and 
21associated equipment maintenance and repair.

22* * *

23"Internet game." Any variation or composite of an authorized
24Internet game that is offered through the Internet, provided
25that such games, or variations or composites, are found suitable
26for use by the Pennsylvania Gaming Control Board after an
27appropriate test or experimental period and any other game which
28is determined by the board to be compatible with the public
29interest and to be suitable for Internet gaming after such
30appropriate test or experimental period. The term shall include

1contests or tournaments conducted via the Internet in which
2registered players compete against one another in one or more of
3the Internet games authorized by the board or in approved
4variations or composites thereof, if the contests or tournaments
5are authorized by the board.

6"Internet gaming." The placing of bets or wagers with a slot
7machine licensee located in this Commonwealth using a computer
8network of both Federal and non-Federal interoperable packet
9switched data networks through which a slot machine licensee may
10offer authorized Internet games to individuals who have
11registered and established an Internet gaming account with the
12slot machine licensee.

13"Internet gaming account." The formal, electronic system 
14implemented by a slot machine licensee to record the balance of 
15a registered player's debits, credits and other activity 
16relating to Internet gaming.

17"Internet gaming account agreement." The agreement entered
18into between a slot machine licensee and an individual which
19governs the terms and conditions of the individual's Internet
20gaming account and the use of the Internet for purposes of
21placing wagers on Internet games operated by a slot machine
22licensee in this Commonwealth. The Internet gaming account
23agreement shall be executed in person.

24"Internet gaming device." The technology, including
25software, system programs, hardware or any other gaming
26equipment as approved by the Pennsylvania Gaming Control Board
27that is used to manage, administer or control Internet gaming or
28the wagers associated with Internet gaming to facilitate the
29offering of authorized Internet games to registered players.

30"Internet gaming gross revenue." As follows:

1(1) For all Internet games, with the exception of
2Internet poker, the total of all sums received by a slot
3machine licensee from Internet gaming, less the total of all
4sums actually paid out as winnings to registered players. The
5cash equivalent value of any merchandise or thing of value
6included in a jackpot or payout shall not be included in the
7total of all sums paid out as winnings to registered players
8for purposes of determining Internet gaming gross revenue.

9(2) For Internet poker, the total of all sums received
10by a slot machine licensee from Internet poker, or the
11aggregate, during the relevant period, of the rake, contests
12or tournament fees and all other fees or charges required or
13received from registered players directly as a result of
14Internet poker, from deposits into any Internet gaming
15account maintained by the slot machine licensee or on behalf
16of the slot machine licensee, less the total of all sums
17actually paid out as winnings to registered players. The cash
18equivalent value of any merchandise or thing of value
19included in a jackpot or payout shall not be included in the
20total of all sums paid out as winnings to registered players
21for purposes of determining Internet gaming gross revenue.

22(3) For all Internet games, including Internet poker,
23the term shall not include registered player deposits nor
24deposits that reflect promotional credits, incentives from
25loyalty or similar programs, bonuses or complimentary
26services provided by or on behalf of the slot machine
27licensee attendant to Internet gaming or returns of funds by
28or on behalf of a slot machine licensee to an Internet gaming
29account or bad debt incurred by the slot machine licensee
30with respect to an Internet gaming account.

1"Internet gaming certificate." The authorization issued to a
2slot machine licensee by the Pennsylvania Gaming Control Board
3authorizing the operation and conduct of Internet gaming.

4"Internet gaming certificate holder." A slot machine
5licensee that has been granted authorization by the Pennsylvania
6Gaming Control Board to conduct Internet gaming.

7"Internet gaming restricted area." Any room or area within 
8the premises of a licensed facility or other location within 
9this Commonwealth as approved by the Pennsylvania Gaming Control 
10Board to conduct Internet gaming, including, where approved by 
11the board, redundancy facilities.

12"Internet token." A representation of value issued by an
13Internet gaming certificate holder for use in playing an
14Internet game and redeemable with the issuing Internet gaming
15certificate holder for cash or cash equivalent.

16* * *

17"Key employee." Any individual who is employed in a director 
18or department head capacity and who is empowered to make 
19discretionary decisions that regulate slot machine or table game 
20operations or Internet gaming operations, including the general 
21manager and assistant manager of the licensed facility, director 
22of slot operations, director of table game operations, director 
23of Internet gaming, director of cage and/or credit operations, 
24director of surveillance, director of marketing, director of 
25management information systems, director of Internet gaming 
26system programs or other similar job classifications associated 
27with Internet gaming, persons who manage, control or administer 
28Internet games or the bets and wagers associated with Internet 
29games, director of security, comptroller and any employee who is 
30not otherwise designated as a gaming employee and who supervises 

1the operations of these departments or to whom these department 
2directors or department heads report and such other positions 
3not otherwise designated or defined under this part which the 
4Pennsylvania Gaming Control Board shall determine based on 
5detailed analyses of job descriptions as provided in the 
6internal controls of the licensee as approved by the 
7Pennsylvania Gaming Control Board. All other gaming employees 
8unless otherwise designated by the Pennsylvania Gaming Control 
9Board shall be classified as non-key employees.

10* * *

11"Licensed facility." The physical land-based location at 
12which a licensed gaming entity is authorized to place and 
13operate slot machines and, if authorized by the Pennsylvania 
14Gaming Control Board under Chapter 13A (relating to table 
15games), to conduct table games and under Chapter 13B (relating 
16to Internet gaming) to conduct Internet gaming. The term 
17includes any:

18(1) area of a licensed racetrack at which a slot machine
19licensee was previously authorized pursuant to section
201207(17) (relating to regulatory authority of board) to
21operate slot machines prior to the effective date of this
22paragraph;

23(2) board-approved interim facility or temporary
24facility; and

25(3) area of a hotel which the Pennsylvania Gaming
26Control Board determines is suitable to conduct table games.

27The term shall not include a redundancy facility or
28restricted area which is not located on the premises of a
29licensed facility as approved by the board and which is
30maintained and operated by a slot machine licensee in

1connection with Internet gaming.

2* * *

3"Rake." A set fee or percentage assessed by a certificate 
4holder or a holder of an Internet gaming certificate for 
5providing the services of a dealer, gaming table or location, to 
6allow the play or operation of any nonbanking game[.], including 
7any nonbanking Internet game.

8"Redundancy facilities." Any and all rooms or areas within
9this Commonwealth used by a slot machine licensee for emergency
10back-up, redundancy or secondary operations attendant to
11Internet gaming as approved by the Pennsylvania Gaming Control
12Board.

13"Registered player." An individual who has entered into an
14Internet gaming account agreement with a slot machine licensee.

15* * *

16"Supplier." A person that sells, leases, offers or otherwise 
17provides, distributes or services any slot machine, table game 
18device or associated equipment or Internet gaming device or 
19associated equipment for use or play of slot machines [or], 
20table games or Internet games in this Commonwealth.

21"Supplier license." A license issued by the Pennsylvania 
22Gaming Control Board authorizing a supplier to provide products 
23or services related to slot machines, table game devices or 
24associated equipment or Internet gaming device or associated 
25equipment to slot machine licensees for use in this Commonwealth 
26for gaming purposes.

27* * *

28"Table game." Any banking or nonbanking game approved by the 
29Pennsylvania Gaming Control Board. The term includes roulette, 
30baccarat, blackjack, poker, craps, big six wheel, mini-baccarat, 

1red dog, pai gow, twenty-one, casino war, acey-ducey, sic bo, 
2chuck-a-luck, Panguingue, Fan-tan, Asia poker, Boston 5 stud 
3poker, Caribbean stud poker, Colorado hold'em poker, double 
4attack blackjack, double cross poker, double down stud poker, 
5fast action hold'em, flop poker, four card poker, let it ride 
6poker, mini-craps, mini-dice, pai gow poker, pokette, Spanish 
721, Texas hold'em bonus poker, three card poker, two card joker 
8poker, ultimate Texas hold'em, winner's pot poker and any other 
9banking or nonbanking game. The term shall not include:

10(1) Lottery games of the Pennsylvania State Lottery as
11authorized under the act of August 26, 1971 (P.L.351, No.91),
12known as the State Lottery Law.

13(2) Bingo as authorized under the act of July 10, 1981
14(P.L.214, No.67), known as the Bingo Law.

15(3) Pari-mutuel betting on the outcome of thoroughbred
16or harness horse racing as authorized under the act of
17December 17, 1981 (P.L.435, No.135), known as the Race Horse
18Industry Reform Act.

19(4) Small games of chance as authorized under the act of
20December 19, 1988 (P.L.1262, No.156), known as the Local
21Option Small Games of Chance Act.

22(5) Slot machine gaming and progressive slot machine
23gaming as defined and authorized under this part.

24[(6) Keno.]

25* * *

26Section 2. Section 1202(a)(1) and (b)(20) and (23) of Title
274 are amended and subsection (b) is amended by adding paragraphs
28to read:

29§ 1202. General and specific powers.

30(a) General powers.--

1(1) The board shall have general and sole regulatory
2authority over the conduct of gaming, including Internet 
3gaming, or related activities as described in this part. The
4board shall ensure the integrity of the acquisition and
5operation of slot machines, table games, table game devices
6and associated equipment and Internet games, Internet gaming 
7devices and associated equipment and shall have sole
8regulatory authority over every aspect of the authorization,
9operation and play of slot machines [and], table games and 
10Internet games.

11* * *

12(b) Specific powers.--The board shall have the specific
13power and duty:

14* * *

15(12.2) At its discretion, to award, revoke, suspend,
16condition or deny an Internet gaming certificate in
17accordance with Chapter 13B (relating to Internet gaming).

18* * *

19(20) In addition to the power of the board regarding 
20license and permit applicants, to determine at its discretion 
21the suitability of any person who furnishes or seeks to 
22furnish to a slot machine licensee directly or indirectly any 
23goods, services or property related to slot machines, table 
24games, table game devices or associated equipment, Internet 
25games, Internet gaming devices and associated equipment or 
26through any arrangements under which that person receives 
27payment based directly or indirectly on earnings, profits or 
28receipts from the slot machines, table games, table game 
29devices and associated equipment or Internet games, Internet 
30gaming devices and associated equipment. The board may 

1require any such person to comply with the requirements of 
2this part and the regulations of the board and may prohibit 
3the person from furnishing the goods, services or property.

4* * *

5(23) The board shall not approve an application for or 
6issue or renew a license, certificate, registration or permit
7unless it is satisfied that the applicant has demonstrated by 
8clear and convincing evidence that the applicant is a person
9of good character, honesty and integrity and is a person
10whose prior activities, criminal record, if any, reputation,
11habits and associations do not pose a threat to the public
12interest or the effective regulation and control of slot
13machine or table game operations or Internet gaming 
14operations or create or enhance the danger of unsuitable,
15unfair or illegal practices, methods and activities in the
16conduct of slot machine or table game operations, Internet 
17gaming operations or the carrying on of the business and
18financial arrangements incidental thereto.

19* * *

20(27.2) To publish each January in the Pennsylvania
21Bulletin and on the board's Internet website a complete list
22of all slot machine licensees who filed a petition seeking
23authorization to conduct Internet gaming and the status of
24each petition or Internet gaming certificate.

25* * *

26(35) To review detailed site plans identifying the
27restricted area or room where a slot machine licensee
28proposes to manage, administer or control Internet gaming
29operations within a licensed facility to determine the
30adequacy of the proposed internal and external security and

1proposed surveillance measures.

2(36) To require each slot machine licensee that holds an
3Internet gaming certificate to provide on a quarterly basis
4the following information with respect to Internet gaming:

5(i) the name of any person, entity or firm to whom
6any payment, remuneration or other benefit or thing of
7value has been made or conferred for professional
8services, including, but not limited to, legal,
9consulting and lobbying services;

10(ii) the amount or value of the payments,
11remuneration, benefit or thing of value;

12(iii) the date on which the payments, remuneration,
13benefit or thing of value was made; and

14(iv) the reason or purpose for the procurement of
15the services.

16Section 3. Sections 1204 and 1206(f)(1) of Title 4 are
17amended to read:

18§ 1204. Licensed gaming entity application appeals from board.

19The Supreme Court of Pennsylvania shall be vested with
20exclusive appellate jurisdiction to consider appeals of any
21final order, determination or decision of the board involving
22the approval, issuance, denial or conditioning of a slot machine
23license or the award, denial or conditioning of a table game
24operation certificate or the award, denial or conditioning of an 
25Internet gaming certificate. Notwithstanding the provisions of 2 
26Pa.C.S. Ch. 7 Subch. A (relating to judicial review of
27Commonwealth agency action) and 42 Pa.C.S. § 763 (relating to
28direct appeals from government agencies), the Supreme Court
29shall affirm all final orders, determinations or decisions of
30the board involving the approval, issuance, denial or

1conditioning of a slot machine license or the award, denial or
2conditioning of a table game operation certificate or the award, 
3denial or conditioning of an Internet gaming certificate unless
4it shall find that the board committed an error of law or that
5the order, determination or decision of the board was arbitrary
6and there was a capricious disregard of the evidence.

7§ 1206. Board minutes and records.

8* * *

9(f) Confidentiality of information.--

10(1) The following information submitted by an applicant, 
11permittee [or], licensee or certificate holder pursuant to
12section 1310(a) (relating to slot machine license application
13character requirements) [or], 1308(a.1) (relating to 
14applications for license or permit) or 13B12(b) (relating to 
15Internet gaming certificate required and content of petition)
16or obtained by the board or the bureau as part of a
17background or other investigation from any source shall be
18confidential and withheld from public disclosure:

19(i) All information relating to character, honesty
20and integrity, including family, habits, reputation,
21history of criminal activity, business activities,
22financial affairs and business, professional and personal
23associations submitted under section 1310(a) or 1308(a.1)
24or otherwise obtained by the board or the bureau.

25(ii) Nonpublic personal information, including home
26addresses, telephone numbers and other personal contact
27information, Social Security numbers, educational
28records, memberships, medical records, tax returns and
29declarations, actual or proposed compensation, financial
30account records, creditworthiness or financial condition

1relating to an applicant, licensee [or], permittee or 
2certificate holder or the immediate family thereof.

3(iii) Information relating to proprietary
4information, trade secrets, patents or exclusive
5licenses, architectural and engineering plans and
6information relating to competitive marketing materials
7and strategies, which may include customer-identifying
8information or customer prospects for services subject to
9competition.

10(iv) Security information, including risk prevention
11plans, detection and countermeasures, location of count
12rooms, location of restricted areas and redundancy 
13facilities, emergency management plans, security and
14surveillance plans, equipment and usage protocols and
15theft and fraud prevention plans and countermeasures.

16(v) Information with respect to which there is a
17reasonable possibility that public release or inspection
18of the information would constitute an unwarranted
19invasion into personal privacy of any individual as
20determined by the board.

21(vi) Records of an applicant or licensee not 
22required to be filed with the Securities and Exchange 
23Commission by issuers that either have securities 
24registered under section 12 of the Securities Exchange 
25Act of 1934 (48 Stat. 881, 15 U.S.C. § 78l) or are 
26required to file reports under section 15(d) of the 
27Securities Exchange Act of 1934 (48 Stat. 881, 15 U.S.C. 
28§ 78o).

29(vii) Records considered nonpublic matters or
30information by the Securities and Exchange Commission as

1provided by 17 CFR 200.80 (relating to commission records
2and information).

3(viii) Any financial information deemed confidential
4by the board upon a showing of good cause by the
5applicant or licensee.

6* * *

7Section 4. Section 1207(5), (8), (9) and (21) of Title 4 are
8amended and the section is amended by adding paragraphs to read:

9§ 1207. Regulatory authority of board.

10The board shall have the power and its duties shall be to:

11* * *

12(5) Prescribe the procedures to be followed by slot
13machine licensees for any financial event that occurs in the
14operation and play of slot machines [or], table games or 
15Internet games.

16* * *

17(7.2) Enforce prescribed hours for the operation of
18Internet games so that a slot machine licensee may conduct
19Internet games on any day during the year in order to meet
20the needs of registered players or to meet competition.

21(8) Require that each licensed gaming entity prohibit
22persons under 21 years of age from operating or using slot
23machines or playing table games or participating in Internet 
24gaming.

25(9) Establish procedures for the inspection and
26certification of compliance of each slot machine, table game,
27table game device and associated equipment and Internet game, 
28Internet gaming device and associated equipment prior to
29being placed into use by a slot machine licensee.

30* * *

1(21) Authorize, in its discretion, a slot machine
2licensee to conduct slot machine tournaments or Internet 
3gaming tournaments and adopt regulations governing the
4conduct of such tournaments.

5(22) License, regulate, investigate and take any other
6action determined necessary regarding all aspects of Internet
7gaming.

8(23) Define and limit the areas of operation and the
9rules of authorized Internet games, including odds, devices
10permitted and the method of operation of Internet games,
11Internet gaming devices and associated equipment.

12(24) Require that all wagering offered through Internet
13gaming display online the permissible minimum and maximum
14wagers associated with each Internet game.

15Section 5. Section 1211 of Title 4 is amended by adding
16subsections to read:

17§ 1211. Reports of board.

18* * *

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

20(1) No later than 12 months after the effective date of
21Chapter 13B (relating to Internet gaming) and every year
22thereafter, the annual report submitted by the board in
23accordance with subsection (a) shall include information on
24the conduct of Internet games as follows:

25(i) Total gross Internet gaming revenue.

26(ii) The number and win by type of Internet game at
27each licensed facility conducting Internet gaming during
28the previous year.

29(iii) All taxes, fees, fines and other revenue
30collected and, where appropriate, revenue disbursed

1during the previous year. The department shall
2collaborate with the board to carry out the requirements
3of this subparagraph.

4(iv) Other information, data and recommendations
5related to the conduct of Internet games and
6recommendations regarding the operation of Internet
7gaming by licensed gaming entities.

8(2) The board may also report periodically to the
9Governor and the General Assembly on the effectiveness of the
10statutory and regulatory control in place to ensure the
11integrity of Internet gaming.

12(3) The board may require the Internet gaming
13certificate holders to provide information to the board to
14assist in the preparation of the report.

15* * *

16(d.1) Impact of Internet gaming, annual report.--One year
17after the commencement of Internet gaming in this Commonwealth,
18an annual report shall be prepared and distributed to the
19Governor, and the standing committees of the General Assembly
20with jurisdiction over this part, on the impact of Internet
21gaming on compulsive and problem gambling and gambling addiction
22in this Commonwealth. The report shall be prepared by a private
23organization or entity with expertise in serving and treating
24the needs of persons with compulsive gambling addictions, which
25organization or entity shall be selected by the Department of
26Drug and Alcohol Programs. The report may be prepared and
27distributed under the supervision of, and in coordination with,
28the board. Any costs associated with the preparation and
29distribution of the report shall be borne by slot machine
30licensees who have been authorized by the board to conduct

1Internet gaming. The board shall be authorized to assess a fee
2against each slot machine licensee for these purposes.

3* * *

4Section 6. Section 1212(e) of Title 4 is amended by adding a
5paragraph to read:

6§ 1212. Diversity goals of board.

7* * *

8(e) Definition.--As used in this section, the term
9"professional services" means those services rendered to a slot
10machine licensee which relate to a licensed facility in this
11Commonwealth, including, but not limited to:

12* * *

13(9) Technology related to Internet games, Internet
14gaming devices and associated equipment.

15Section 6.1. Section 1305 of Title 4 is amended by adding a
16subsection to read:

17§ 1305. Category 3 slot machine license.

18* * *

19(c.1) Internet gaming.--Notwithstanding any provision of
20Chapter 13B (relating to Internet gaming), the operation of
21Internet gaming by a Category 3 slot machine licensee shall be
22subject to the patron of the amenities requirements of this
23section. The board shall, through regulation, determine the
24criteria and conditions under which Internet games may be
25operated by a Category 3 slot machine licensee. Such regulations
26shall require that individuals seeking to participate in
27Internet gaming operated by a Category 3 slot machine licensee
28shall only be individuals who hold a valid seasonal or year-
29round membership, as approved by the board, which entitles the
30individuals to use one or more of the amenities available at the

1Category 3 licensed facility and a valid Internet gaming account
2with the Category 3 slot machine licensee.

3* * *

4Section 7. Sections 1309(a.1), 1317(a) and (c.1), 1317.1 and
513A27(c) of Title 4 are amended to read:

6§ 1309. Slot machine license application.

7* * *

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

9(1) An applicant for a slot machine license may submit
10with its application all information required under Chapter
1113A (relating to table games) or under Chapter 13B (relating 
12to Internet gaming) and request that the board consider its
13application for a slot machine license [and], a table game
14operation certificate or an Internet gaming certificate
15concurrently. All fees for a table game operation certificate
16shall be paid by the applicant in accordance with section
1713A61 (relating to table game authorization fee) or section 
1813B51 (relating to Internet gaming authorization fee).

19(2) The board shall permit any applicant for a slot
20machine license that has an application pending before the
21board on the effective date of this subsection to supplement
22its application with all information required under Chapter
2313A and to request that the board consider its application
24for a slot machine license and a table game operation
25certificate concurrently. All fees for a table game operation
26certificate shall be paid by the applicant in accordance with
27section 13A61.

28(3) Notwithstanding paragraph (2), the board may permit
29an applicant for a slot machine license that has an
30application pending before the board to supplement its

1application with all information required under Chapter 13B
2and to request that the board consider its application for a
3slot machine license, a table game operation certificate or
4an Internet gaming certificate concurrently. All fees for an
5Internet gaming certificate shall be paid by the applicant in
6accordance with section 13B51.

7* * *

8§ 1317. Supplier licenses.

9(a) Application.--A manufacturer that elects to contract
10with a supplier under section 1317.1(d.1) (relating to
11manufacturer licenses) shall ensure that the supplier is
12appropriately licensed under this section. A person seeking to
13provide slot machines, table game devices or associated
14equipment or Internet gaming devices or associated equipment to
15a slot machine licensee within this Commonwealth through a
16contract with a licensed manufacturer shall apply to the board
17for the appropriate supplier license.

18* * *

19(c.1) Abbreviated process.--In the event an applicant for a
20supplier license to supply table game devices or associated
21equipment used in connection with table games or Internet gaming 
22devices or associated equipment used in connection with Internet 
23games is licensed by the board under this section to supply slot
24machines or associated equipment used in connection with slot
25machines, the board may determine to use an abbreviated process
26requiring only that information determined by the board to be
27necessary to consider the issuance of a license to supply table
28game devices or associated equipment used in connection with
29table games or Internet gaming devices or associated equipment 
30used in connection with Internet games, including financial

1viability of the applicant. Nothing in this section shall be
2construed to waive any fees associated with obtaining a license
3through the normal application process. The board may only use
4the abbreviated process if all of the following apply:

5(1) The supplier license was issued by the board within
6a 36-month period immediately preceding the date the supplier
7licensee files an initial application to supply table game
8devices or associated equipment.

9(2) The person to whom the supplier license was issued
10affirms there has been no material change in circumstances
11relating to the license.

12(3) The board determines, in its sole discretion, that
13there has been no material change in circumstances relating
14to the licensee that necessitates that the abbreviated
15process not be used.

16* * *

17§ 1317.1. Manufacturer licenses.

18(a) Application.--A person seeking to manufacture slot
19machines, table game devices and associated equipment or 
20Internet gaming devices or associated equipment for use in this
21Commonwealth shall apply to the board for a manufacturer
22license.

23(b) Requirements.--An application for a manufacturer license
24shall be on the form required by the board, accompanied by the
25application fee, and shall include all of the following:

26(1) The name and business address of the applicant and
27the applicant's affiliates, intermediaries, subsidiaries and
28holding companies; the principals and key employees of each
29business; and a list of employees and their positions within
30each business, as well as any financial information required

1by the board.

2(2) A statement that the applicant and each affiliate,
3intermediary, subsidiary or holding company of the applicant
4are not slot machine licensees.

5(3) The consent to a background investigation of the
6applicant, its principals and key employees or other persons
7required by the board and a release to obtain any and all
8information necessary for the completion of the background
9investigation.

10(4) The details of any equivalent license granted or
11denied by other jurisdictions where gaming activities as
12authorized by this part are permitted and consent for the
13board to acquire copies of applications submitted or licenses
14issued in connection therewith.

15(5) The type of slot machines, table game devices or
16associated equipment or Internet gaming devices or associated 
17equipment to be manufactured or repaired.

18(6) Any other information determined by the board to be
19appropriate.

20(c) Review and approval.--Upon being satisfied that the
21requirements of subsection (b) have been met, the board may
22approve the application and grant the applicant a manufacturer
23license consistent with all of the following:

24(1) The initial license shall be for a period of one 
25year, and, if renewed under subsection (d), the license shall 
26be for a period of three years. Nothing in this paragraph 
27shall relieve the licensee of the affirmative duty to notify 
28the board of any changes relating to the status of its 
29license or to any other information contained in application 
30materials on file with the board.

1(2) The license shall be nontransferable.

2(3) Any other condition established by the board.

3(c.1) Abbreviated process.--In the event an applicant for a
4manufacturer license to manufacture table game devices or
5associated equipment used in connection with table games or 
6Internet games, Internet gaming devices or associated equipment 
7used in connection with Internet games is licensed by the board
8under this section to manufacture slot machines, table game 
9devices or associated equipment used in connection with slot
10machines or table games, the board may determine to use an
11abbreviated process requiring only that information determined
12by the board to be necessary to consider the issuance of a
13license to manufacture table game devices or associated
14equipment used in connection with table games or Internet games, 
15Internet gaming devices or associated equipment used in 
16connection with Internet gaming, including financial viability
17of the applicant. Nothing in this section shall be construed to
18waive any fees associated with obtaining a license through the
19normal application process. The board may only use the
20abbreviated process if all of the following apply:

21(1) The manufacturer license was issued by the board
22within a 36-month period immediately preceding the date the
23manufacturer licensee files an application to manufacture
24table game devices or associated equipment[.] or the 
25manufacturer license was issued by the board within a 36-
26month period preceding the date the manufacturer licensee 
27filed an application to manufacture Internet gaming devices 
28or associated equipment.

29(2) The person to whom the manufacturer license was
30issued affirms there has been no material change in

1circumstances relating to the license.

2(3) The board determines, in its sole discretion, that
3there has been no material change in circumstances relating
4to the licensee that necessitates that the abbreviated
5process not be used.

6(d) Renewal.--

7(1) Two months prior to expiration of a manufacturer
8license, the manufacturer licensee seeking renewal of its
9license shall submit a renewal application accompanied by the
10renewal fee to the board.

11(2) If the renewal application satisfies the
12requirements of subsection (b), the board may renew the
13licensee's manufacturer license.

14(3) If the board receives a complete renewal application
15but fails to act upon the renewal application prior to the
16expiration of the manufacturer license, the manufacturer
17license shall continue in effect for an additional six-month
18period or until acted upon by the board, whichever occurs
19first.

20(d.1) Authority.--The following shall apply to a licensed
21manufacturer:

22(1) A manufacturer or its designee, as licensed by the
23board, may supply or repair any slot machine, table game 
24device or associated equipment or Internet gaming device or 
25associated equipment manufactured by the manufacturer, 
26provided the manufacturer holds the appropriate manufacturer 
27license.

28(2) A manufacturer of slot machines may contract with a
29supplier under section 1317 (relating to supplier licenses)
30to provide slot machines or associated equipment to a slot

1machine licensee within this Commonwealth, provided the 
2supplier is licensed to supply slot machines or associated 
3equipment used in connection with slot machines.

4(3) A manufacturer may contract with a supplier under
5section 1317 to provide table game devices or associated
6equipment to a certificate holder, provided the supplier is
7licensed to supply table game devices or associated equipment
8used in connection with table games.

9(4) A manufacturer may contract with a supplier under
10section 1317 to provide Internet gaming devices or associated
11equipment to an Internet gaming certificate holder, provided
12the supplier is licensed to supply Internet gaming devices or
13associated equipment used in connection with Internet games.

14(e) Prohibitions.--

15(1) No person may manufacture slot machines, table game 
16devices or associated equipment or Internet gaming devices or 
17associated equipment for use within this Commonwealth by a
18slot machine licensee unless the person has been issued the 
19appropriate manufacturer license under this section.

20(2) Except as permitted in section 13A23.1 (relating to 
21training equipment) or, in the case of Internet gaming, 
22authorized by the board, no slot machine licensee may use
23slot machines, table game devices or associated equipment or 
24Internet gaming devices or associated equipment unless the
25slot machines, table game devices or associated equipment or 
26Internet gaming devices or associated equipment were
27manufactured by a person that has been issued the appropriate
28manufacturer license under this section.

29(3) No person issued a license under this section shall
30apply for or be issued a license under section 1317.

1(4) No limitation shall be placed on the number of
2manufacturer licenses issued or the time period to submit
3applications for licensure, except as required to comply with
4section 1306 (relating to order of initial license issuance).

5§ 13A27. Other financial transactions.

6* * *

7(c) Credit application verification.---Prior to approving an
8application for credit, a certificate holder shall verify:

9(1) The identity, creditworthiness and indebtedness
10information of the applicant by conducting a comprehensive
11review of the information submitted with the application and
12any information regarding the applicant's credit activity at
13other licensed facilities which the certificate holder may
14obtain through a casino credit bureau and, if appropriate,
15through direct contact with other slot machine licensees.

16(2) That the applicant's name is not included on an
17exclusion list under section 1514 (relating to regulation
18requiring exclusion [or], ejection or denial of access of
19certain persons) or 1516 (relating to list of persons self
20excluded from gaming activities) or the voluntary credit
21suspension list under subsection (h).

22* * *

23Section 8. Title 4 is amended by adding a chapter to read:

24CHAPTER 13B

25INTERNET GAMING

26Subchapter

27A.  General Provisions

28B.  Internet Gaming Authorized

29C.  Conduct of Internet Gaming

30D. Facilities and Equipment

1E. Testing and Certification

2F.  Taxes and Fees

3G. Miscellaneous Provisions

4SUBCHAPTER A

5GENERAL PROVISIONS

6Sec.

713B01. Legislative finding.

813B02. Regulatory authority.

913B03. Temporary Internet gaming regulations.

10§ 13B01. Legislative finding.

11The General Assembly finds and declares that:

12(1) The primary objective of the Pennsylvania Race Horse
13Development and Gaming Act, to which all other objectives are
14secondary, is to protect the public through the regulation
15and policing of all activities involving gaming and practices
16that continue to be unlawful.

17(2)  Legislative authorization of slot machine gaming and
18the conduct of table games is intended to enhance live horse
19racing, breeding programs, entertainment and employment in
20this Commonwealth.

21(3) Legalized gaming is seen as a means to provide a
22source of revenue for property and wage tax relief and
23economic development and to enhance development of tourism
24markets throughout this Commonwealth.

25(4) Legalized gaming in the Category I, Category II and
26Category III licensed facilities geographically dispersed in
27this Commonwealth has become a critical component of economic
28development and, if its development continues to be properly
29regulated and fostered, will provide a substantial
30contribution to the general health, welfare and prosperity of

1this Commonwealth and its citizens.

2(5) The General Assembly remains committed to ensuring a
3robust casino gaming industry in this Commonwealth that is
4capable of competing regionally, nationally and
5internationally at the highest levels of quality while
6maintaining strict regulatory oversight to ensure the
7integrity of all gaming operations as supervised by the
8board.

9(6) Since its development, the Internet has provided the
10opportunity for millions of people worldwide to engage in
11online gambling, mostly through illegal off-shore operations.

12(7) In 2006, the United States Congress passed and the
13President signed the Unlawful Internet Gambling Enforcement
14Act of 2006 (Public Law 109-347, 31 U.S.C. § 5361 et seq.),
15which generally prohibits the use of banking instruments,
16including credit cards, checks and money transfers for
17interstate Internet gambling.

18(8) Although the Unlawful Internet Gambling Enforcement
19Act of 2006 prohibits interstate Internet gambling by United
20States citizens, it included an exception that permits
21individual states to create a regulatory framework to govern
22intrastate Internet gambling, provided that the bets or
23wagers would be made exclusively within a single state under
24certain circumstances.

25(9) Internet gaming is illegal in this Commonwealth and
26without legislative authorization and strict regulation, the
27public's trust and confidence in gaming is impacted.

28(10) Internet gambling is conducted without oversight,
29regulation or enforcement, all of which raises significant
30concerns for the protection of the health, welfare and safety

1of the citizens of this Commonwealth.

2(11) An effective regulatory, licensing and enforcement
3system for Internet gambling in this Commonwealth would
4inhibit underage wagering and otherwise protect vulnerable
5individuals, ensure that the games offered through the
6Internet are fair and safe, stop sending much-needed jobs,
7tax and other revenue offshore to illegal operators, provide
8a significant source of taxable revenue, create jobs and
9economic development and address the concerns of law
10enforcement.

11(12) By legalizing intrastate Internet gambling and
12subjecting it to the regulatory oversight of the board, the
13General Assembly is assuring the citizens of this
14Commonwealth that only those persons licensed by the board to
15conduct slot machine gaming and table games in accordance
16with the requirements of this title have been determined to
17be suitable to facilitate and conduct online gaming
18activities in this Commonwealth.

19(13) By legalizing intrastate Internet gambling, the
20General Assembly will provide the board with the tools
21necessary to restrict and stop illegal gambling conducted
22over the Internet through persons in foreign jurisdictions
23and authorize strict controls over how licensed facilities in
24this Commonwealth may accept wagers placed over the Internet.

25(14) An effective regulatory, licensing and enforcement
26system to govern Internet gambling in this Commonwealth is
27consistent with the original objectives and intent of the
28Pennsylvania Race Horse Development and Gaming Act and will
29provide the citizens of this Commonwealth with assurance that
30access to and the conduct of Internet gambling activities

1will not occur in locations adjacent or in close proximity to
2historic sights, battlefields, churches and schools, thereby
3ensuring the public trust and confidence in legalized
4gambling in this Commonwealth.

5(15) The Commonwealth has a legitimate State interest in
6protecting the integrity of State-authorized intrastate
7Internet gaming by licensing those entities already engaged
8in the conduct of gaming in this Commonwealth, which are
9subject to the scrutiny and discipline of the board and other
10regulatory agencies and which are in good standing with those
11agencies.

12§ 13B02. Regulatory authority.

13(a) Authority.--The board shall promulgate and adopt rules
14and regulations to govern Internet gaming in order for Internet
15gaming to be implemented in a manner that provides for the
16security and effective management, administration and control of
17Internet gaming, including, but not limited to, regulations:

18(1) Ensuring that Internet games are offered for play in
19this Commonwealth in a manner that is consistent with Federal
20law and the provisions of this chapter.

21(2) Establishing standards and procedures for testing
22and approving Internet games and Internet gaming devices and
23associated equipment, and any variations or composites of
24authorized Internet games, provided that the board determines
25that the Internet games and any new Internet games or any
26variations or composites are suitable for use after a test or
27experimental period under any terms and conditions as the
28board may deem appropriate. The board may give priority to
29the testing of Internet games, Internet gaming devices and
30associated equipment or other gaming equipment which a slot

1machine licensee has certified that it will use to conduct
2Internet gaming in this Commonwealth.

3(3) Establishing standards and rules to govern the
4conduct of Internet gaming and the system of and wagering
5associated with Internet gaming, including internal controls
6and accounting controls, and the type, number, payout,
7wagering limits and rules for Internet games.

8(4) Establishing the method for calculating Internet
9gaming gross revenue and standards for the daily counting and
10recording of cash and cash equivalents received in the
11conduct of Internet games and ensure that internal controls
12and accounting controls are followed, including the
13maintenance of financial books and records and the conduct of
14audits. The board shall consult with the department in
15establishing these regulations.

16(5) Establishing notice requirements pertaining to
17minimum and maximum wagers on Internet games. Minimum and
18maximum wagers may be adjusted by the slot machine licensee
19in the normal course of conducting an Internet game, except
20that changes in the minimum wagers of any Internet game shall
21not apply to players already engaged in wagering on an
22Internet game when the minimum wager is changed, unless 30
23minutes' notice is provided electronically in a form and
24manner approved by the board.

25(6) Ensuring that all facilities, Internet gaming
26devices and associated equipment are arranged in a manner to
27promote appropriate security for Internet gaming.

28(7) Establishing technical standards for the approval of
29Internet games, Internet gaming devices and associated 
30equipment, including mechanical, electrical or program

1reliability, security against tampering, the
2comprehensibility of wagering and noise and light levels, as
3it may deem necessary to protect registered players from
4fraud or deception.

5(8) Governing the creation and utilization of Internet
6gaming accounts by registered players, including requiring
7the following:

8(i) That Internet gaming accounts shall be possessed
9by a natural person and not in the name of any
10beneficiary, custodian, joint trust, corporation,
11partnership or other organization or entity.

12(ii) That Internet gaming accounts shall not be
13assignable or otherwise transferable.

14(iii) That no account shall be established for an
15individual under 21 years of age.

16(iv) That all Internet gaming accounts shall be
17established in person at a licensed facility.

18(9) Establishing procedures for Internet gaming account
19holders to log into their gaming accounts, authenticate
20identities, agree to terms, conditions and rules applicable
21to Internet games and log out of gaming accounts, including
22procedures for automatically logging off persons from an
23Internet game after a specified period of inactivity.

24(10) Establishing procedures for:

25(i) Acquiring funds in an Internet gaming account by
26cash, transfer or other means.

27(ii) The withdrawal of funds from Internet gaming
28accounts.

29(iii) The suspension of Internet gaming account
30activity for security reasons.

1(iv) The termination of Internet gaming accounts and
2disposition of proceeds in accounts.

3(v) The disposition of unclaimed amounts in dormant
4Internet gaming accounts.

5(11) Establishing mechanisms by which registered players
6may place limits on the amount of money being wagered per
7Internet game or during any specified time period or the
8amount of losses incurred during any specified time period.

9(12) Establishing mechanisms to exclude from Internet
10gaming persons not eligible to play by reason of age,
11location or inclusion on a list of persons denied access to
12Internet gaming activities in accordance with sections 1514
13(relating to regulation requiring exclusion, ejection or
14denial of access of certain persons), 1515 (relating to
15repeat offenders excludable from licensed gaming facility)
16and 1516 (relating to list of persons self excluded from
17gaming activities).

18(13) Establishing procedures for the protection,
19security and reliability of Internet gaming accounts,
20Internet games, Internet gaming devices and associated
21equipment and mechanisms to prevent tampering or utilization
22by unauthorized persons.

23(14) Establishing data security standards to govern age
24and location verification of persons engaged in Internet
25gaming activity.

26(15) Requiring each slot machine licensee to:

27(i) Provide written information on its Internet
28gaming website, which explains the rules for each
29Internet game, payoffs or winning wagers and other
30information as the board may require.

1(ii) Provide specifications approved by the board to
2integrate and update the licensed facility's surveillance
3system to cover all areas in the licensed facility where
4Internet gaming will be managed, administered or
5controlled. The specifications shall include provisions
6providing the board and other persons authorized by the
7board with onsite access to the surveillance system or
8its signal.

9(iii) Designate one or more restricted areas within
10the licensed facility where Internet gaming activity will
11be managed, administered or controlled.

12(iv) Provide the board with access to the Internet
13website, signal or transmission used in connection with
14Internet gaming.

15(v) Ensure that visibility in the designated
16restricted area in the licensed facility where Internet
17gaming will be managed, administered or controlled is not
18obstructed in any way that could interfere with the
19ability of the slot machine licensee, the board and other
20persons authorized by the board or other persons
21authorized under this part to oversee the surveillance of
22the conduct of Internet gaming operations.

23(vi) Adopt procedures for the recordation,
24replication and storage of all play and transactions for
25a period to be determined by the board.

26(vii) Provide statements on its Internet gaming
27website about the permissible minimum and maximum wagers
28for each Internet game, as applicable.

29(viii) Adopt policies or procedures to prohibit any
30unauthorized person from having access to Internet gaming

1devices and associated equipment, including software,
2system programs, hardware and any other gaming equipment
3which is used to manage, administer or control Internet
4gaming.

5(ix) Adopt data security standards to verify the age
6and location of persons engaged in Internet gaming
7activity and prevent unauthorized access by any person
8whose age and location have not been verified or whose
9age and location cannot be verified in accordance with
10regulations adopted by the board.

11(x) Adopt standards to protect the privacy and
12security of persons engaged in Internet gaming activity.

13(xi) Collect, report and pay any and all applicable
14taxes and fees and maintain all books, records and
15documents related to the slot machine licensee's Internet
16gaming activities in a manner and in a location within
17this Commonwealth as approved by the board or the
18department. All books, records and documents shall be
19immediately available for inspection during all hours of
20operation in accordance with the regulations of the board
21and shall be maintained in a manner and during periods of
22time as the board shall by regulation require.

23(b) Additional authority.--

24(1) At its discretion, the board may determine whether
25persons that provide the following goods or services and any
26other goods or services related to Internet gaming as the
27board may determine shall be required to obtain a license,
28permit or other authorization:

29(i) Payment processing and related money
30transmitting and services.

1(ii) Customer identity or age verification and
2geospatial technology services.

3(iii) General telecommunications services, which are
4not specifically designed for or related to Internet
5gaming.

6(iv) Other goods or services that are not
7specifically designed for use with Internet gaming if the
8persons providing the goods or services are not paid a
9percentage of gaming revenue or of money gambled on
10Internet games or online poker commission fees by the
11slot machine licensee, not including fees to financial
12institutions and payment providers for facilitating a
13deposit by an Internet gaming account holder.

14(2) The board shall develop a classification system for
15the licensure, permitting or other authorization of persons
16that provide the following goods or services related to
17Internet gaming:

18(i) Persons that provide Internet games and Internet
19gaming devices and associated equipment.

20(ii) Persons that manage, control or administer the
21Internet games or the wagers associated with Internet
22games.

23(iii) Providers of customer lists comprised of
24persons identified or selected, in whole or in part,
25because they placed wagers on Internet gaming.

26§ 13B03. Temporary Internet gaming regulations.

27(a) Promulgation.--

28(1) In order to facilitate the prompt implementation of
29this chapter, regulations promulgated by the board shall be
30deemed temporary regulations which shall expire not later

1than two years following the publication of the temporary
2regulation in the Pennsylvania Bulletin and on the board's
3Internet website.

4(2) The board may promulgate temporary regulations not
5subject to:

6(i) Sections 201, 202, 203, 204 and 205 of the act
7of July 31, 1968 (P.L.769, No.240), referred to as the
8Commonwealth Documents Law.

9(ii) The act of June 25, 1982 (P.L.633, No.181),
10known as the Regulatory Review Act.

11(iii) Sections 204(b) and 301(10) of the act of
12October 15, 1980 (P.L.950, No.164), known as the
13Commonwealth Attorneys Act.

14(b) Temporary regulations.--The board shall begin publishing
15temporary regulations governing the rules for Internet gaming,
16the issuance of Internet gaming certificates, standards for
17approving licensing of providers of Internet games, Internet
18gaming devices and associated equipment, including age and
19location verification software or system programs and security
20and surveillance standards in the Pennsylvania Bulletin not
21later than February 1, 2015.

22(c)  Expiration of temporary regulations.--Except for
23temporary regulations governing the rules for new Internet
24games, for approving Internet games, Internet gaming devices and
25associated equipment and for approving providers of Internet
26games, Internet gaming devices and associated equipment, the
27board's authority to adopt temporary regulations under
28subsection (a) shall expire two years after the effective date
29of this section. Regulations adopted after this period shall be
30promulgated as provided by law.

1SUBCHAPTER B

2INTERNET GAMING AUTHORIZED

3Sec.

413B11.  Authorization to conduct Internet gaming.

513B12.  Internet gaming certificate required and content of
6petition.

713B13. Issuance of Internet gaming certificate.

813B14. Internet gaming certificate.

913B15. Timing of initial Internet gaming authorizations.

10§ 13B11. Authorization to conduct Internet gaming.

11(a) Authority of board.--

12(1) The board may authorize a slot machine licensee:

13(i) To conduct Internet gaming, including contests
14and tournaments and any other game which is determined by
15the board to be suitable for Internet gaming.

16(ii) To deploy an Internet gaming website to
17facilitate the conduct of Internet gaming activities.

18(2) All individuals playing Internet games must be
19physically located within this Commonwealth. No individual
20under 21 years of age shall open, maintain, use or have
21access to an Internet gaming account.

22(b) Authority to play Internet games.--Notwithstanding any
23other provision of law, a person in this Commonwealth who is 21
24years of age or older is hereby permitted to participate as a
25registered player in Internet gaming activities and wagering
26associated with playing an Internet game offered by a slot
27machine licensee in this Commonwealth in accordance with
28regulations of the board.

29§ 13B12. Internet gaming certificate required and content of
30petition.

1(a) Certificate required.--No slot machine licensee or any
2other person associated with or representing a slot machine
3licensee shall operate or attempt to conduct Internet gaming,
4except for test purposes, at a licensed facility or open
5Internet gaming to the public in this Commonwealth without first
6obtaining an Internet gaming certificate from the board. A slot
7machine licensee may seek approval to conduct Internet gaming by
8filing a petition for an Internet gaming certificate with the
9board. The board shall prescribe the form and manner to govern
10the submission of a petition for an Internet gaming certificate.
11Not more than one Internet gaming certificate shall be issued to
12operate Internet gaming within a licensed facility in this
13Commonwealth.

14(b) Content of petition.--In addition to information and
15documentation demonstrating that the slot machine licensee is
16legally and technically qualified for an Internet gaming
17certificate under this chapter, a petition seeking board
18approval to conduct Internet gaming within this Commonwealth
19shall include the following:

20(1) The name, business address and contact information
21of the slot machine licensee.

22(2) The name and business address, job title and a
23photograph of each principal and key employee of the slot
24machine licensee who will be involved in the conduct of
25Internet gaming and who is not currently licensed by the
26board, if known.

27(3) The name and business address, job title and a
28photograph of each principal or key employee of the slot
29machine licensee who will be involved in the conduct of
30Internet gaming and who is currently licensed by the board.

1(4) An itemized list of the Internet games and any other
2game or games the slot machine licensee plans to offer over
3the Internet for which authorization is being sought. The
4slot machine licensee shall, in accordance with regulations
5promulgated by the board, file any changes in the number of
6authorized games offered through Internet gaming with the
7board.

8(5) The estimated number of full-time and part-time
9employment positions that will be created at the licensed
10facility if Internet gaming operations are authorized and an
11updated hiring plan pursuant to section 1510(a) (relating to
12labor hiring preferences) which outlines the slot machine
13licensee's plan to promote the representation of diverse
14groups and Commonwealth residents in the employment
15positions.

16(6) A brief description of the economic benefits
17expected to be realized by the Commonwealth, its
18municipalities and its residents if Internet gaming
19operations are authorized.

20(7) The details of any financing obtained or that will
21be obtained to fund an expansion or modification of the
22licensed facility to accommodate Internet gaming activities
23and to otherwise fund the cost of commencing Internet gaming
24operations.

25(8) Information and documentation concerning financial
26background and resources, as the board may require, to
27establish by clear and convincing evidence the financial
28stability, integrity and responsibility of the slot machine
29licensee.

30(9) Information and documentation, as the board may 

1require, to establish by clear and convincing evidence that 
2the slot machine licensee has sufficient business ability and 
3experience to create and maintain a successful Internet 
4gaming operation. In making this determination, the board may 
5consider the results of the slot machine licensee's slot 
6machine and table game operations, including financial 
7information, employment data and capital investment.

8(10) Information and documentation, as the board may
9require, to establish by clear and convincing evidence that
10the slot machine licensee has or will have the financial
11ability to pay the Internet gaming authorization fee.

12(11) Detailed site plans identifying the slot machine
13licensee's proposed restricted area where Internet gaming
14operations will be managed, administered or controlled within
15the licensed facility as approved by the board.

16(12) A detailed description of all of the following:

17(i)  The slot machine licensee's initial system of
18internal and accounting controls applicable to Internet
19gaming.

20(ii)  The slot machine licensee's proposed standards
21to protect, with a reasonable degree of certainty, the
22privacy and security of its registered players.

23(iii)  How the slot machine licensee will facilitate
24compliance with all of the requirements set forth in this
25chapter and in section 802(a) of the Unlawful Internet
26Gambling Enforcement Act of 2006 (Public Law 109-347, 31
27U.S.C. § 5362(10)(B)), including, but not limited to, all
28of the following:

29(A) Age and location verification requirements
30designed to block access to individuals under 21

1years of age and persons located outside this
2Commonwealth.

3(B) Appropriate data security standards to
4prevent unauthorized access by any person whose age
5and location have not been verified or whose age and
6location cannot be verified in accordance with this
7chapter and applicable regulations of the board.

8(C) The requirement that all Internet gaming be
9initiated and received or otherwise made exclusively
10within this Commonwealth.

11(iv)  The slot machine licensee's proposed age and
12location verification standards designed to block access
13to persons under 21 years of age, persons located outside
14this Commonwealth and persons excluded or prohibited from
15participating in Internet gaming activities under this
16part.

17(v)  The procedures the slot machine licensee will
18use to register individuals who wish to participate in
19Internet gaming activities.

20(vi)  The procedures the slot machine licensee will
21use to establish Internet gaming accounts for registered
22players.

23(vii)  The Internet games and services the slot
24machine licensee proposes to offer to registered players.

25(viii)  Documentation and information relating to all
26proposed subcontractors of the slot machine licensee,
27including, but not limited to, all of the following:

28(A) A description of the services to be provided
29by each subcontractor.

30(B) Information on the experience and

1qualifications of each subcontractor to provide the
2services anticipated.

3(C) The names of all proposed subcontractor's
4owners, executives and employees that will be
5directly or indirectly involved in the slot machine
6licensee's Internet gaming operations, as well as
7sufficient personal identifying information on each
8such person to conduct background checks as may be
9required by the board.

10(13) The Internet gaming devices and associated
11equipment, including the computer system or systems, that the
12slot machine licensee plans to or will utilize to manage,
13administer or control its Internet gaming operations,
14including, but not limited to:

15(i)  Connectivity.

16(ii)  Software and hardware.

17(iii)  Antifraud systems.

18(iv)  Virus and hacker protection.

19(v)  Data protection.

20(vi)  Access controls.

21(vii)  Firewalls.

22(viii)  Emergency and disaster recovery.

23(ix)  Redundancy.

24(x)  Internet gaming devices and associated
25equipment, including, but not limited to, hardware and
26software that ensure all of the following:

27(A)  The Internet games are authorized Internet
28games.

29(B)  The Internet games are independent and fair
30and played by natural persons.

1(C)  Internet game and wagering rules are
2available to all registered players.

3(D)  All data used for the operation of each
4Internet game is randomly generated.

5(14)  Compliance certification of its Internet gaming
6devices and associated equipment, including Internet gaming
7software, by a board-approved gaming laboratory to ensure
8that the gaming software complies with the requirements of
9this chapter, if required by the board.

10(15) Detailed description of accounting systems,
11including, but not limited to, accounting systems for all of
12the following:

13(i)  Registered Internet gaming accounts.

14(ii)  Per-hand charges, if applicable.

15(iii)  Transparency and reporting to the board and
16the department.

17(iv)  Distribution of revenue to the Commonwealth and
18winnings to registered players.

19(v)  Ongoing auditing and internal control compliance
20reviews.

21(16) Detailed information on security systems at the
22licensed facility to protect the Internet gaming website from
23internal and external breaches and threats.

24(17) Any other information as the board may require.

25(c) Confidentiality.--Information submitted to the board
26under subsection (b) may be considered confidential by the board
27if the information would be confidential under section 1206(f)
28(relating to board minutes and records).

29§ 13B13. Issuance of Internet gaming certificate.

30(a)  Requirements for approval of petition.--

1(1) The board may approve a petition under section 13B12
2(relating to Internet gaming certificate required and content
3of petition) upon finding, upon clear and convincing
4evidence, all of the following:

5(i) The slot machine licensee's Internet gaming
6operations comply in all respects with the requirements
7of this chapter and regulations promulgated by the board.

8(ii) Age and location verification requirements
9designed to block access to individuals under 21 years of
10age, persons located outside of this Commonwealth and
11those persons excluded, denied access or prohibited from
12Internet gaming in accordance with this chapter, as
13approved by the board, have been implemented by the slot
14machine licensee.

15(iii) The slot machine licensee has implemented or
16will implement appropriate data security standards to
17prevent unauthorized access by any person whose age and
18location has not been verified or cannot be verified in
19accordance with the regulations promulgated and adopted
20by the board.

21(iv) The slot machine licensee has implemented or
22will implement appropriate standards to protect the
23privacy and security of registered players.

24(v) The slot machine licensee's initial system of
25internal and accounting controls applicable to Internet
26gaming, and the security and integrity of all financial
27transactions in connection with the system, complies with
28this chapter and regulations promulgated and adopted by
29the board.

30(vi) The slot machine licensee is in good standing

1with the board.

2(vii) The conduct of Internet gaming activities will
3have a positive economic impact on this Commonwealth, its
4municipalities and residents through increased revenue
5and employment opportunities.

6(viii) The slot machine licensee agrees that the
7number of slot machines and table games in operation at
8its licensed facility, as of the effective date of this
9section, will not be permanently reduced as a result of
10the authorization and commencement of Internet gaming.

11(2) It shall be an express condition of any Internet
12gaming certificate that a slot machine licensee shall
13collect, report and pay all applicable taxes and fees and
14shall maintain all books, records and documents pertaining to
15the slot machine licensee's Internet gaming operations in a
16manner and location within this Commonwealth as approved by
17the board. All books, records and documents shall be
18immediately available for inspection by the board during all
19hours of operation in accordance with the regulations of the
20board and shall be maintained in a manner and during periods
21of time as the board shall require.

22(b) Issuance of Internet gaming certificate.--

23(1)  Upon approval of a petition for an Internet gaming 
24certificate, the board shall issue an Internet gaming 
25certificate to the slot machine licensee. The issuance of an 
26Internet gaming certificate prior to the full payment of the 
27authorization fee required under section 13B51 (relating to 
28Internet gaming authorization fee) shall not relieve the slot
29machine licensee from the obligation to pay the authorization
30fee in accordance with the requirements of section 13B51.

1(2) Upon issuing an Internet gaming certificate, the
2board shall amend the slot machine licensee's statement of
3conditions to require the slot machine license to include
4conditions pertaining to the requirements of this chapter.

5(c) Term of Internet gaming certificate.--Subject to the
6power of the board to deny, revoke or suspend an Internet gaming
7certificate issued in accordance with the requirements of this
8section, an Internet gaming certificate shall be renewed every
9three years and shall be subject to the requirements of section
101326 (relating to license renewals).

11(d) Sanctions.--A slot machine licensee that fails to abide
12by the requirements of this chapter or any condition contained
13in the slot machine licensee's statement of conditions governing
14the operation of Internet gaming shall be subject to board-
15imposed administrative sanctions or other penalties authorized
16under this part.

17(e) Background investigations.--Each petition for an
18Internet gaming certificate shall be accompanied by a
19nonrefundable fee established by the board to cover the cost of
20background investigations. The board shall determine by
21regulation the persons involved, directly or indirectly, in a
22slot machine licensee's Internet gaming operations who shall be
23subject to background investigation. The reasonable and
24necessary costs and expenses incurred in any background
25investigation or other investigation or proceeding under this
26chapter shall be reimbursed to the board.

27§ 13B14. Internet gaming certificate.

28The following shall apply:

29(1) An Internet gaming certificate shall be in effect
30unless:

1(i) The certificate is suspended or revoked by the
2board consistent with the requirements of this part.

3(ii) The slot machine license held by the
4certificate holder is suspended, revoked or not renewed
5by the board consistent with the requirements of this
6part.

7(iii) The slot machine licensee relinquishes or does
8not seek renewal of its slot machine license.

9(iv) The slot machine licensee does not seek renewal
10of its Internet gaming certificate.

11(2) The Internet gaming certificate shall include an
12itemized list by type and of Internet games approved by the
13board and authorized for Internet gaming conducted by the
14slot machine licensee. The slot machine licensee may increase
15or decrease the number of Internet games authorized for play
16on its Internet website or change the type of Internet games
17played on its Internet gaming website upon notice to the
18board and approval by the board or a designated employee of
19the board. Unless approved by the board or a designated
20employee of the board, the total number and type of Internet
21games offered for play by a slot machine licensee may not
22differ from the number and type approved by the board and
23authorized in the Internet gaming certificate.

24(3) A slot machine licensee shall be required to update
25the information in its initial Internet gaming petition at
26times and in the form and manner as prescribed by the board.

27§ 13B15. Timing of initial Internet gaming authorizations.

28The board shall prescribe the date on which petitions for an
29Internet gaming certificate must be filed with the board and
30shall approve or deny a petition within 90 days following

1receipt.

2SUBCHAPTER C

3CONDUCT OF INTERNET GAMING

4Sec.

513B21. Situs of Internet gaming operations.

613B22. Establishment of Internet gaming accounts.

713B23. Internet gaming account credits and payment.

813B24. Acceptance of account wagers.

913B25. Dormant Internet gaming accounts.

1013B26. Log-in procedure required.

1113B27. Information provided at log-in.

1213B28. Prohibitions.

1313B29. Commencement of Internet gaming operations.

14§ 13B21. Situs of Internet gaming operations.

15All wagers made through Internet gaming shall be deemed to be
16initiated, received or otherwise made within the geographic
17boundaries of this Commonwealth. Internet gaming must be
18conducted by a slot machine licensee that has been issued an
19Internet gaming certificate by the board in accordance with the
20requirements of this chapter and regulations of the board,
21provided, however, that the intermediate routing of electronic
22data associated or in connection with Internet gaming shall not
23determine the location or locations in which a bet or wager is
24initiated, received or otherwise made.

25§ 13B22. Establishment of Internet gaming accounts.

26(a) Registration restrictions.--Only a natural person who
27has first established an Internet gaming account with a slot
28machine licensee shall be permitted to play an Internet game
29offered by or place any bet or wager associated with an Internet
30game offered by the slot machine licensee. An Internet gaming

1account shall be in the name of a natural person and may not be
2in the name of any beneficiary, custodian, joint trust,
3corporation, partnership or other organization or entity. A slot
4machine licensee shall not:

5(1) Permit an individual to establish an Internet gaming
6account unless the person is 21 years of age or older.

7(2) Permit an individual to establish an Internet gaming
8account unless the individual holds an active players' club
9membership which was applied for and issued at the slot
10machine licensee's licensed facility.

11(b)  Establishment of Internet gaming accounts.--

12(1)  An Internet gaming account shall be executed in 
13person. Each Internet gaming account shall comply with the 
14internal controls of the slot machine licensee that, at a 
15minimum, require the following:

16(i) The filing and execution of an Internet gaming
17account application, the form of which has been
18preapproved by the board.

19(ii) Proof of age and residency as demonstrated by
20at least two forms of identification approved by the
21board through regulation.

22(iii) Physical address of the principal residence of
23the prospective account holder in this Commonwealth,
24electronic mail address of the prospective account holder
25and other contact information, as the board or slot
26machine licensee may require.

27(iv) Password or other secured identification
28provided by the slot machine licensee to access the
29Internet gaming account or some other mechanism approved
30by the board to authenticate the player as the holder to

1the Internet gaming account.

2(v) An acknowledgment under penalty of perjury that
3false or misleading statements made in regard to an
4application for an Internet gaming account may subject
5the applicant to civil and criminal penalties.

6(2) The slot machine licensee may accept or reject an
7application after receipt and review of the application and
8proof of age for compliance with the provisions of this
9chapter. The slot machine licensee shall have the right, at
10any time with or without cause, to suspend or close any
11Internet gaming account at its sole discretion.

12(3)  The address provided by the applicant in the 
13application for an Internet gaming account shall be deemed 
14the proper address for the purposes of mailing checks, 
15account withdrawals, notices and other materials.

16(4) An Internet gaming account shall not be assignable
17or otherwise transferable, and a slot machine licensee may,
18at any time, declare all or any part of an Internet gaming
19account to be closed for wagering.

20(c) Password required.--As part of the application process,
21the slot machine licensee shall provide the prospective Internet
22gaming account holder with a password to access the gaming
23account or shall establish some other mechanism approved by the
24board to authenticate the individual as the holder of the
25Internet gaming account and allow the individual access to the
26Internet gaming account.

27(d)  Grounds for rejection.--Any prospective Internet gaming
28account holder who provides false or misleading information on
29the application for an Internet gaming account is subject to
30rejection of the application or cancellation of the account by

1the slot machine licensee.

2(e)  Suspension of Internet gaming account.--The slot machine
3licensee shall have the right to suspend or close any Internet
4gaming account at its discretion.

5(f)  Persons prohibited from establishing or maintaining an
6Internet gaming account.--The following persons shall not be
7entitled to establish or maintain an Internet gaming account:

8(1) Any person under 21 years of age and persons located
9outside the geographic boundaries of this Commonwealth.

10(2) Any person on the list of persons who are to be
11excluded or ejected from any licensed facility pursuant to
12section 1514 (relating to regulation requiring exclusion,
13ejection or denial of access of certain persons), 1515
14(relating to repeat offenders excludable from licensed gaming
15facility) or 1516 (relating to list of persons self excluded
16from gaming activities).

17(3) Any gaming employee or key employee of a slot
18machine licensee.

19§ 13B23. Internet gaming account credits and payment.

20(a) Credits to Internet gaming accounts.--Notwithstanding
21any provision of this part to the contrary, credits to an
22Internet gaming account shall not be made except as provided by
23this section. The following shall apply:

24(1) A deposit to an Internet gaming account by an
25account holder may be submitted by the account holder to the
26slot machine licensee in one of the following forms:

27(i) Cash given to the slot machine licensee.

28(ii) Check, money order, negotiable order of
29withdrawal or wire or electronic transfer, payable and
30remitted to the slot machine licensee.

1(iii) Notwithstanding section 1504 (relating to
2wagering on credit), charges made to an account holder's
3credit card upon the account holder's direct and personal
4authorization, which authorization may be given to the
5slot machine licensee in a form and manner prescribed by
6regulation of the board, if the use of the credit card
7has been approved by the slot machine licensee.

8(iv) Any other method approved by the board.

9(b) Payment of winnings.--When an Internet gaming account
10holder wins an Internet game, the slot machine licensee shall
11credit the holder's Internet gaming account the appropriate
12amount pursuant to the rules of the particular game. When the
13account holder logs off or cashes out, the slot machine licensee
14shall credit the holder's gaming account in the amount of tokens
15or other cash equivalents cashed in.

16(c) Rights of slot machine licensee.--A slot machine
17licensee shall have the right to:

18(1)  Credit an Internet gaming account as part of a
19promotion.

20(2)  Refuse, for any valid reason, all or part of any
21wager or deposit to the account of an account holder.

22(d)  Interest prohibited.--Funds deposited in a registered
23player's Internet gaming account shall not bear interest to the
24account holder.

25(e)  Debits to Internet gaming accounts.--Debits to an
26Internet gaming account shall not be made except as follows:

27(1) When an account holder logs onto a gaming account
28and exchanges account funds for Internet tokens or other cash
29equivalents, the slot machine licensee shall debit the
30holder's account in the amount of funds exchanged. Upon

1receipt by a slot machine licensee of an account wager or an
2account purchase order, the slot machine licensee shall debit
3the account holder's Internet tokens or other cash
4equivalents in the amount of the wager or purchase.

5(2) A slot machine licensee may authorize a withdrawal
6from an Internet gaming account when the account holder
7submits to the slot machine licensee all of the following:

8(i) Proper identification.

9(ii) The correct password or other authentication
10information for accessing the gaming account.

11(iii) A properly completed and executed withdrawal
12form in a form and manner approved by the board through
13regulation.

14(3) Upon receipt of a properly completed and executed
15withdrawal form, and, if there are sufficient funds in the
16gaming account to cover the withdrawal, the slot machine
17licensee shall send, within three business days of receipt of
18the withdrawal form, a check payable in the amount requested
19to the account holder at the address specified in the
20application for the Internet gaming account or shall transmit
21payment to the account holder electronically as approved by
22the board by regulation.

23§ 13B24. Acceptance of account wagers.

24(a)  Acceptance.--A slot machine licensee may accept Internet
25gaming account wagers or bets only as follows:

26(1) The account wager shall be placed directly with the
27slot machine licensee by the account holder, after the slot
28machine licensee has verified the account holder's physical
29presence in this Commonwealth and that the individual seeking
30to place a wager or bet is the registered account holder.

1(2) The account holder provides the slot machine
2licensee with the correct password or other authentication
3information for access to his Internet gaming account.

4(b) Nonacceptance.--A slot machine licensee may not accept
5an account wager in an amount in excess of funds on deposit in
6an Internet gaming account of the account holder placing the bet
7or wager. Funds on deposit include amounts credited to an
8account holder's Internet gaming account in accordance with this
9chapter and any funds in the account at the time the wager is
10placed.

11§ 13B25. Dormant Internet gaming accounts.

12(a) Dormant Internet gaming accounts.--Any funds remaining
13in Internet gaming accounts inactive or dormant for the period
14and under the conditions as established by regulation of the
15board shall be paid 50% to the slot machine licensee and 50% to
16the State Gaming Fund established under section 1509(c)
17(relating to compulsive and problem gambling program).

18(b) Closure of dormant accounts.--Before closing a dormant
19Internet gaming account, the slot machine licensee shall attempt
20to contact the account holder by mail, phone or electronic mail
21to inform the account holder that the Internet gaming account is
22inactive and may be subject to termination at such time and
23manner as determined by regulation of the board.

24§ 13B26. Log-in procedure required.

25(a) Establishment of log-in procedure.--Each slot machine
26licensee shall establish a log-in procedure for Internet gaming
27account holders to access Internet gaming. The log-in procedure
28shall include the provision of the appropriate authentication
29information by the Internet gaming account holder for access to
30the Internet gaming account. The slot machine licensee shall not

1allow an account holder to log-in and access the Internet gaming
2account holder's Internet gaming account unless the Internet
3gaming account holder provides the correct password or other
4authentication information.

5(b) Exchange of funds.--Upon log-in, the Internet gaming
6account holder shall have the option to exchange any amount of
7funds in the Internet gaming account for Internet tokens or
8other cash equivalents to be used for Internet gaming.

9(c) Credits to account.--Upon logging off, the current
10amount of the Internet gaming account holder's Internet tokens
11or other cash equivalents shall be credited to the Internet
12gaming account holder's Internet gaming account.

13§ 13B27. Information provided at log-in.

14The slot machine licensee shall configure its Internet gaming
15website to include a link that, upon log-in, will allow an
16Internet gaming account holder to access all of the following
17information:

18(1) The current amount of money in the Internet gaming
19account holder's Internet gaming account, including the
20current amount of the Internet gaming holder's Internet
21tokens or other cash equivalents.

22(2) The Internet gaming account holder's wins and losses
23since the Internet gaming account was established.

24(3) The Internet gaming account holder's win and losses
25at the beginning of the current gaming session and the wins
26and losses at the end of the current gaming session.

27(4) The complete text in searchable format of the rules
28of each Internet game offered by the slot machine licensee
29and any other information as the board may require.

30§ 13B28. Prohibitions.

1Except as provided in this section, no slot machine licensee
2or any person licensed under this part and no person acting on
3behalf of, or under any arrangement with, a slot machine
4licensee or other person licensed under this part shall:

5(1) Make any loan to any person for the purpose of
6crediting an Internet gaming account.

7(2) Release or discharge any debt, either in whole or in
8part, or make any loan which represents any losses incurred
9by any Internet gaming account holder while playing Internet
10games without maintaining a written record thereof in
11accordance with regulations of the board.

12§ 13B29. Commencement of Internet gaming operations.

13A slot machine licensee may not operate or offer Internet
14games for play on its Internet gaming website until the board
15determines that:

16(1) The slot machine licensee is in compliance with the
17requirements of this part.

18(2) The slot machine licensee's internal, administrative
19and accounting controls are sufficient to meet the
20requirements of section 13B32 (relating to internal,
21administrative and accounting controls).

22(3) The slot machine licensee's Internet gaming
23employees, where applicable, are licensed, permitted or
24otherwise authorized by the board to perform their respective
25duties.

26(4) The slot machine licensee is prepared in all
27respects to offer Internet gaming to the public over its
28Internet gaming website.

29(5) The slot machine licensee has implemented necessary
30internal, administrative, accounting controls, security

1arrangements and surveillance systems for the operation of
2Internet gaming.

3(6) The slot machine licensee is in compliance with or
4has complied with section 13B51 (relating to Internet gaming
5authorization fee).

6SUBCHAPTER D

7FACILITIES AND EQUIPMENT

8Sec.

913B31.  Responsibilities of slot machine licensee.

1013B32.  Internal, administrative and accounting controls.

11§ 13B31.  Responsibilities of slot machine licensee.

12(a)  Facilities and equipment.--All facilities and Internet
13gaming devices and associated equipment shall:

14(1) Be arranged in a manner promoting appropriate
15security for Internet gaming.

16(2) Include a closed-circuit visual monitoring system
17according to rules or specifications approved by the board,
18with board access to the slot machine licensee's Internet
19gaming website, signal or transmission used in connection
20with Internet gaming.

21(3) Not be designed in any way that might interfere with
22or impede the board in its regulation of Internet gaming.

23(4) Comply in all respects with regulations of the
24board.

25(b) Location of equipment and restricted areas.--All
26Internet gaming devices and associated equipment used by a slot
27machine licensee to conduct Internet gaming may be located, with
28the prior approval of the board, in a restricted area on the
29premises of the licensed facility within the geographic limits
30of the county in this Commonwealth where the licensed facility

1is situated. Any Internet gaming equipment used on a temporary
2basis may, in accordance with regulations and approval of the
3board, be located outside the geographic boundaries of the
4county where the licensed facility is located. However, no
5Internet gaming shall occur unless a wager is accepted by a slot
6machine licensee within the geographic boundaries of this
7Commonwealth. All wagers associated with Internet gaming shall
8be deemed to be placed when received at the licensed facility of
9the slot machine licensee. Any intermediate routing of
10electronic data in connection with a wager shall not affect the
11fact that the wager is placed in a licensed facility in this
12Commonwealth.

13(c)  Verification of registered players.--No Internet game
14shall be used in Internet gaming unless it is able to verify
15that a player placing a wager is physically present in this
16Commonwealth. The board shall require by regulation that
17Internet games used by each slot machine licensee are verifying
18each registered player's physical presence in this Commonwealth
19each time the player logs onto a new playing session.

20§ 13B32.  Internal, administrative and accounting controls.

21(a)  Submissions to board.--Notwithstanding any provision of
22this part, each slot machine licensee who holds or has applied
23for an Internet gaming certificate to conduct Internet gaming in
24accordance with this chapter shall submit a description of its
25system of internal procedures and administrative and accounting
26controls for Internet gaming to the board, including provisions
27that provide for real-time monitoring, recordation or storage of
28all Internet games and a description of any changes to its
29procedures and controls. The submission shall be made at least
3090 days before Internet gaming operations are to commence or at

1least 90 days before any change in those procedures or controls
2is to take effect, unless otherwise directed by the board.

3(b) Filing.--Notwithstanding subsection (a), the procedures
4and controls may be implemented by a slot machine licensee upon
5the filing of the procedures and controls with the board. Each
6procedure or control submission shall contain both narrative and
7diagrammatic representations of the system to be utilized with
8regard to Internet gaming, including, but not limited to:

9(1) Accounting controls, including the standardization
10of forms and definition of terms to be utilized in the
11Internet gaming operations.

12(2) Procedures, forms and, where appropriate, formulas
13to govern the following:

14(i) calculation of hold percentages;

15(ii) revenue drops;

16(iii) expense and overhead schedules;

17(iv) complimentary services; and

18(v) cash equivalent transactions.

19(3) Job descriptions and the system of personnel and
20chain of command, establishing a diversity of responsibility
21among employees engaged in Internet gaming operations and
22identifying primary and secondary management and supervisory
23positions for areas of responsibility, salary structure and
24personnel practices.

25(4) Procedures for the registration of players and
26establishment of Internet gaming accounts, including a
27procedure for authenticating the age of applicants for gaming
28accounts.

29(5) Procedures for the termination of a registered
30player's Internet gaming account by the account holder and

1the return of any funds remaining in the gaming account to
2the account holder.

3(6) Procedures for the suspension or termination of a
4dormant gaming account.

5(7) Procedures for the logging in and authentication of
6a registered player in order to enable the player to commence
7Internet gaming and the logging off of the registered player
8when the player has completed play, including a procedure to
9automatically log a registered player out of the player's
10Internet gaming account after a specified period of
11inactivity.

12(8) Procedures for the crediting and debiting of
13registered players' Internet gaming accounts.

14(9) Procedures for:

15(i) the cashing of checks to establish credit in an
16Internet gaming account;

17(ii) the receipt and security of cash to establish
18credit in an Internet gaming account, whether the cash is
19received by wire transfer or by other means as approved
20by the board; and

21(iii) receipt of other electronic negotiable
22instruments approved by the board to establish credit in
23an Internet gaming account.

24(10) Procedures for the withdrawal of funds from an
25Internet gaming account by the registered player.

26(11) The redemption of chips, tokens or other cash
27equivalents used in Internet gaming and the payout of
28jackpots.

29(12) The recording of transactions pertaining to
30Internet gaming.

1(13) Procedures for the security of personal identifying
2information of registered players and other information as
3required by the board and funds in Internet gaming accounts.

4(14) Procedures for the transfer of Internet gaming
5revenue from Internet gaming accounts to the counting
6process.

7(15) Procedures and security for the counting and
8recordation of revenue.

9(16) Procedures for the security of Internet gaming
10devices and associated equipment within a restricted area on
11the premises of the licensed facility or in a secure facility
12inaccessible to the public and specifically designed for that
13purpose off the premises of a licensed facility but within
14the geographic boundaries of this Commonwealth as approved by
15the board.

16(17) Procedures and security standards as to receipt of
17and the handling and storage of Internet gaming devices and
18associated equipment.

19(18) Procedures and security standards to protect the
20slot machine licensee's Internet gaming website and Internet
21gaming devices and associated equipment from tampering by any
22person.

23(19) Procedures for responding to suspected or actual
24tampering with a slot machine licensee's Internet gaming
25website and Internet gaming devices and associated equipment,
26including partial or complete suspension of Internet gaming
27or the suspension of any or all player Internet gaming
28accounts when warranted.

29(20) Procedures to verify each registered player's
30physical presence in this Commonwealth each time a wager is

1placed on an Internet game.

2(21) Procedures to assist problem and compulsive
3gamblers, including procedures reasonably intended to prevent
4a person from participating in Internet gaming activities in
5accordance with sections 1514 (relating to regulation
6requiring exclusion, ejection or denial of access of certain
7persons), 1515 (relating to repeat offenders excludable from
8licensed gaming facility) and 1516 (relating to list of
9persons self excluded from gaming activities).

10(c)  Review of submissions.--

11(1) The board shall review each submission required by
12subsections (a) and (b) and shall determine whether the
13submission conforms to the requirements of this chapter and
14regulations promulgated by the board and whether the system
15submitted provides adequate and effective controls for
16Internet gaming operations of the particular slot machine
17licensee.

18(2)  If the board determines that insufficiencies exist,
19it shall specify the insufficiencies in writing to the slot
20machine licensee, who shall make appropriate alterations to
21ensure compliance with the requirements of this chapter and
22regulations of the board. When the board determines a
23submission to be adequate in all respects, it shall notify
24the slot machine licensee.

25(3)  Except as otherwise provided in subsection (a), no
26slot machine licensee shall commence or alter Internet gaming
27operations unless and until the system of procedures,
28controls and alternations is approved by the board.

29(d)  Marketing permitted.--It shall be lawful for a slot
30machine licensee to provide marketing information by means of

1the Internet to players engaged in Internet gaming and to offer
2the players incentives to visit the slot machine licensee's
3licensed facility.

4SUBCHAPTER E

5TESTING AND CERTIFICATION

6Sec.

713B41.  Internet games and Internet gaming devices and
8associated equipment testing and certification
9standards.

10§ 13B41.  Internet games and Internet gaming devices and
11associated equipment testing and certification
12standards.

13(a) Testing required.--

14(1) No Internet game or Internet gaming device or
15associated equipment shall be used to conduct Internet gaming
16unless it has been tested by the board. The board may, in its
17discretion and for the purpose of expediting the approval
18process, refer testing to any testing laboratory as approved
19by the board.

20(2)  The board shall establish, by regulation, technical
21standards for approval of Internet games and Internet gaming
22devices and associated equipment, including mechanical,
23electrical or program reliability, security against tampering
24and threats, the comprehensibility of wagering and noise and
25light levels, as it may deem necessary to protect the
26registered player from fraud or deception and to ensure the
27integrity of Internet gaming.

28(b) Independent testing and certification facility.--Any
29costs associated with the board's testing and certification
30facility shall be assessed on persons authorized by the board to

1distribute or otherwise provide Internet games and Internet
2gaming devices and associated equipment to slot machine
3licensees in this Commonwealth. The costs shall be assessed in
4accordance with a schedule adopted by the board.

5(c) Use of other state standards.--The board may determine
6whether the testing and certification standards for Internet
7games and Internet gaming devices and associated equipment as
8adopted by another jurisdiction within the United States or any
9of the testing and certification standards used by a slot
10machine licensee are comprehensive and thorough and provide
11similar and adequate safeguards as those required by this
12chapter. If the board makes that determination, it may permit
13the person authorized to distribute or otherwise provide
14Internet games and Internet gaming devices and associated
15equipment to furnish Internet games and Internet gaming devices
16and associated equipment to slot machine licensees in this
17Commonwealth without undergoing the full testing and
18certification process by the board's independent testing and
19certification facility.

20SUBCHAPTER F

21TAXES AND FEES

22Sec.

2313B51.  Internet gaming authorization fee.

2413B52. Internet gaming tax.

25§ 13B51.  Internet gaming authorization fee.

26(a)  Amount of authorization fee.--Each slot machine licensee
27that is issued a an Internet gaming certificate to conduct
28Internet gaming in accordance with section 13B11 (relating to
29authorization to conduct Internet gaming) shall pay a one-time
30nonrefundable authorization fee in the amount of $5,000,000.

1(b)  Payment of fee.--A slot machine licensee that is
2required to pay the authorization fee under subsection (a) shall
3remit the fee to the board within 60 days of the board's
4approval of its petition to conduct Internet gaming. The board
5may allow the fee to be paid in installments, provided that all
6such installments are paid within the 60-day time period and
7that the installment payments are made in accordance with the
8terms of an agreement between the board and the slot machine
9licensee that sets forth the terms of the installment payment.

10(c) Renewal fee.--Notwithstanding any other provision of
11this chapter, a slot machine licensee that has been issued an
12Internet gaming certificate in accordance with the requirements
13of this chapter shall pay a renewal fee in the amount of
14$500,000 upon the renewal of its Internet gaming certificate in
15accordance with sections 13B13(c) (relating to issuance of
16Internet gaming certificate) and 1326 (relating to license
17renewals).

18§ 13B52. Internet gaming tax.

19(a)  Imposition of tax.--Each slot machine licensee that
20operates Internet gaming shall report to the department and pay
21from its daily Internet gaming gross revenue, on a form and in
22the manner prescribed by the department, a tax of 28% of its
23daily Internet gaming gross revenue.

24(b) Deposits and distributions.--

25(1) The tax imposed under subsection (a) shall be
26payable to the department on a weekly basis and shall be
27based upon Internet gaming gross revenue derived during the
28previous week.

29(2) All funds owed to the Commonwealth under this
30section shall be held in trust for the Commonwealth by the

1slot machine licensee until the funds are paid to the
2department for deposit in the appropriate fund. A slot
3machine licensee shall establish a separate bank account into
4which Internet gaming gross revenue shall be deposited and
5maintained until such time as the funds are paid to the
6department under this section.

7(c)  Use of funds.--The tax imposed under subsection (a)
8shall be deposited as follows:

9(1) Fifty-five percent shall be deposited into the State
10Lottery Fund and shall be allocated solely for the purpose of
11providing property tax relief for the elderly pursuant to
12Chapter 13 of the act of June 27, 2006 (1st Sp.Sess.,
13P.L.1873, No.1), known as the Taxpayer Relief Act.

14(2) Thirty percent shall be deposited in the State
15Lottery Fund for the purpose of providing free or reduced
16fare transit service for the elderly pursuant to Chapter 9 of
17the act of August 26, 1971 (P.L.351, No.91), known as the
18State Lottery Law, and the act of February 11, 1976 (P.L.14,
19No.10), known as the Pennsylvania Rural and Intercity Common
20Carrier Surface Transportation Assistance Act.

21(3) Moneys deposited under paragraphs (1) and (2) are
22hereby appropriated for the purposes enumerated in paragraphs
23(1) and (2).

24(4) Fifteen percent shall be deposited into the fund
25established in accordance with section 1405 (relating to
26Pennsylvania Race Horse Development Fund). All moneys
27deposited into the Pennsylvania Race Horse Development Fund
28shall be distributed in accordance with section 1406
29(relating to distributions from Pennsylvania Race Horse
30Development Fund) and shall be distributed and used solely

1for the purposes enumerated in section 1406 and for no other
2purpose whatsoever.

3SUBCHAPTER G

4MISCELLANEOUS PROVISIONS

5Sec.

613B61.  Participation in Internet gaming by persons outside
7Commonwealth.

813B62.  Construction.

9§ 13B61.  Participation in Internet gaming by persons outside
10Commonwealth.

11Notwithstanding any other provision of this chapter to the
12contrary, a slot machine licensee may accept Internet gaming
13wagers from a person who is not physically present in this
14Commonwealth, if the board determines the following:

15(1) Participation in Internet gaming and acceptance of
16wagers associated with Internet gaming from a person not
17physically present in this Commonwealth is not inconsistent
18with Federal law or regulation or the law or regulation of
19the jurisdiction, including any foreign jurisdiction, in
20which the person is located.

21(2)  Participation in Internet gaming is conducted
22pursuant to an interstate compact or reciprocal agreement
23between the Commonwealth and another jurisdiction, including
24a foreign jurisdiction, to which the Commonwealth is a party
25and the interstate compact or reciprocal agreement is not
26inconsistent with Federal law or regulation.

27§ 13B62.  Construction.

28The following apply:

29(1) Internet gaming in this Commonwealth shall be
30subject to and preempted and superseded by the provisions of

1the Unlawful Internet Gambling Enforcement Act of 2006
2(Public Law 109-347, 31 U.S.C. § 5361 et seq.) and any other
3applicable Federal law.

4(2)  Internet gaming shall be deemed to take place where
5a licensed facility's server is located in this Commonwealth,
6regardless of the registered player's location within this
7Commonwealth.

8Section 9. Sections 1501(b), 1504 and 1509(c) of Title 4 are
9amended to read:

10§ 1501. Responsibility and authority of department.

11* * *

12(b) Application of rules and regulations.--The department
13may prescribe the extent, if any, to which any rules and
14regulations shall be applied without retroactive effect. The
15department shall have authority to prescribe the forms and the
16system of accounting and recordkeeping to be employed and
17through its representative shall at all times have power of
18access to and examination and audit of any equipment and records
19relating to all aspects of the operation of slot machines [and],
20table games and Internet games under this part.

21* * *

22§ 1504. Wagering on credit.

23Except as otherwise provided in this section, slot machine
24licensees shall not extend credit. Slot machine licensees shall
25not accept credit cards, charge cards or debit cards from a 
26patron or a player for the exchange or purchase of slot machine
27credits or for an advance of coins or currency to be utilized by
28a player to play slot machine games or extend credit in any
29manner to a player so as to enable the player to play slot
30machines. Slot machine licensees who hold a table game operation 

1certificate or an Internet gaming certificate may extend credit 
2for slot machine gaming, table games and Internet gaming in 
3accordance with section 13A26 (relating to cash equivalents).

4§ 1509. Compulsive and problem gambling program.

5* * *

6(c) Notice of availability of assistance.--

7(1) Each slot machine licensee shall obtain a toll-free
8telephone number to be used to provide persons with
9information on assistance for compulsive or problem gambling.
10Each licensee shall conspicuously post at least 20 signs
11similar to the following statement:

12If you or someone you know has a gambling problem, help
13is available. Call (Toll-free telephone number).

14The signs must be posted within 50 feet of each entrance and
15exit, within 50 feet of each automated teller machine
16location within the licensed facility and in other 
17appropriate public areas of the licensed facility as 
18determined by the slot machine licensee.

19(2) Each racetrack where slot machines or table games
20are operated shall print a statement on daily racing programs
21provided to the general public that is similar to the
22following:

23If you or someone you know has a gambling problem, help
24is available. Call (Toll-free telephone number).

25(2.1)  Each slot machine licensee shall:

26(i)  Cause the words "If you or someone you know has
27a gambling problem and wants help, call 1-800 XXXX," or
28some comparable language approved by the board, which
29language shall include the words "gambling problem" and
30"call 1-800 XXXX," to be prominently and continuously

1displayed to any person visiting or logged onto the slot
2machine licensee's Internet gaming website.

3(ii) Provide a mechanism by which an Internet gaming
4account holder may establish the following controls on
5wagering activity through the Internet gaming account:

6(A) A limit on the amount of money lost within a
7specified period of time and the length of time the
8account holder will be unable to participate in
9gaming if the holder reaches the established loss
10limit.

11(B) A limit on the maximum amount of any single
12wager on any Internet game.

13(C) A temporary suspension of Internet gaming
14through the account for any number of hours or days.

15(iii)  Not mail or otherwise forward any gaming-
16related promotional material or electronic mail to a
17registered player during any period in which Internet
18gaming through the registered players Internet gaming
19account has been suspended or terminated. The slot
20machine licensee shall provide a mechanism by which an
21account holder may change the controls, except that while
22Internet gaming through the Internet gaming account is
23suspended, the account holder may not change gaming
24controls until the suspension expires, but the holder
25shall continue to have access to the account and shall be
26permitted to withdraw funds from the account upon proper
27application for the funds to the slot machine licensee.

28(iv) Establish a system by which a registered player
29who sustains continuous losses at a sufficient level in
30accordance with regulations of the board, will have

1mailed or otherwise forwarded to his residential mailing
2address and electronic mail address:

3(A) a list detailing all gaming winnings and
4losses through the Internet gaming account;

5(B) contact information for assistance with
6identifying a potential gambling problem; and

7(C) other information about compulsive and
8problem gambling as deemed appropriate by the board,
9in consultation with the Department of Drug and
10Alcohol Programs.

11(3) A licensed facility which fails to post or print the
12warning sign in accordance with paragraph (1) [or], (2) or 
13(2.1)(i) shall be assessed a fine of $1,000 a day for each
14day the minimum number of signs are not posted or the
15required statement is not printed as provided in this
16subsection.

17(4) A slot machine licensee that fails to establish the
18mechanisms, controls and systems in accordance with paragraph
19(2.1)(ii), (iii) and (iv) shall be assessed a fine of not
20less than $5,000 per day for each day the mechanisms,
21controls and systems are not available to Internet gaming
22account holders.

23* * *

24Section 10. Section 1512 of Title 4 is amended by adding a
25subsection to read:

26§ 1512. Financial and employment interests.

27* * *

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

29(1) Except as set forth in paragraph (2), no executive-
30level public employee, public official or party officer or

1immediate family member thereof shall hold, directly or
2indirectly, an interest in, or hold employment with, or
3represent, appear for, or negotiate on behalf of, or derive
4any remuneration, payment, benefit or any other thing of
5value for any services, including, but not limited to,
6consulting or similar services, from any holder of, or
7applicant for, an Internet gaming certificate, or other
8authorization to conduct Internet gaming, or any holding or
9intermediary company with respect thereto, or any Internet
10gaming affiliate of any holder of, or applicant for, a slot
11machine license, or any holding or intermediary company with
12respect thereto, or any business, association, enterprise or
13other entity that is organized, in whole or in part, for the
14purpose of promoting, advocating for, or advancing the
15interests of the Internet gaming industry generally or any
16Internet gaming-related business or businesses in connection
17with any cause, application or matter.

18(2) A member of the immediate family of an executive-
19level public employee, public official or party officer may
20hold employment with the holder of, or applicant for, an
21Internet gaming certificate or other authorization to conduct
22Internet gaming, or any holding or intermediary company with
23respect thereto, or any Internet gaming affiliate of any
24holder of, or applicant for, a slot machine license, or any
25holding or intermediary company with respect thereto if, in
26the judgment of the State Ethics Commission or the Supreme
27Court, as appropriate, employment will not interfere with the
28responsibilities of the executive-level public employee,
29public official or party officer and will not create a
30conflict of interest, or reasonable risk of the public

1perception of a conflict of interest, on the part of the
2executive-level public employee, public official or party
3officer.

4* * *

5Section 11. Sections 1514 heading, (a), (d), (e) and (f),
61515, 1516 and 1517(b)(1), (c)(11) and (12) and (e)(1) of Title
74 are amended to read:

8§ 1514. Regulation requiring exclusion [or], ejection or denial 
9of access of certain persons.

10(a) General rule.--The board shall by regulation provide for
11the establishment of a list of persons who are to be excluded or
12ejected from any licensed facility or who may be denied access 
13to Internet gaming activity. The provisions shall define the
14standards for exclusion and shall include standards relating to
15persons who are career or professional offenders as defined by
16regulations of the board or whose presence in a licensed
17facility or access to Internet gaming activities would, in the
18opinion of the board, be inimical to the interest of the
19Commonwealth or of licensed gaming therein, or both.

20* * *

21(d) Sanctions.--The board may impose sanctions upon a
22licensed gaming entity in accordance with this part if the
23licensed gaming entity knowingly fails to exclude or eject from
24the premises of any licensed facility or deny access to Internet 
25gaming activity any person placed by the board on the list of
26persons to be excluded [or], ejected or denied access.

27(e) List not all-inclusive.--Any list compiled by the board
28of persons to be excluded [or], ejected or denied access shall
29not be deemed an all-inclusive list, and a licensed gaming
30entity shall have a duty to keep from the licensed facility and 

1from Internet gaming activity persons known to it to be within
2the classifications declared in this section and the regulations
3promulgated under this section whose presence in a licensed
4facility or participation in Internet gaming activities would be
5inimical to the interest of the Commonwealth or of licensed
6gaming therein, or both, as defined in standards established by
7the board.

8(f) Notice.--Whenever the bureau seeks to place the name of 
9any person on a list pursuant to this section, the bureau shall 
10serve notice of this fact to such person by personal service or 
11certified mail at the last known address of the person. The 
12notice shall inform the person of the right to request a hearing 
13under subsection (g). The bureau may also provide notice by 
14electronic mail, if the electronic mail address of the person is 
15known to the bureau.

16* * *

17§ 1515. Repeat offenders excludable from licensed gaming
18facility.

19A licensed gaming entity may exclude or eject from its 
20licensed facility or deny access to Internet gaming activities 
21any person who is known to it to have been convicted of a 
22misdemeanor or felony committed in or on the premises of any 
23licensed facility. Nothing in this section or in any other law 
24of this Commonwealth shall limit the right of a licensed gaming 
25entity to exercise its common law right to exclude or eject 
26permanently from its licensed facility or permanently deny 
27access to its Internet gaming activities any person who disrupts 
28the operations of its premises or its Internet gaming 
29operations, threatens the security of its premises or its 
30occupants or is disorderly or intoxicated or who threatens the 

1security of its Internet gaming operations.

2§ 1516. List of persons self excluded from gaming activities.

3(a) General rule.--The board shall provide by regulation for
4the establishment of a list of persons self excluded from gaming
5activities, including Internet gaming activities, at all
6licensed facilities. Any person may request placement on the
7list of self-excluded persons by acknowledging in a manner to be
8established by the board that the person is a problem gambler
9and by agreeing that, during any period of voluntary exclusion,
10the person may not collect any winnings or recover any losses
11resulting from any gaming activity at licensed facilities, 
12including Internet gaming activities.

13(b) Regulations.--The regulations of the board shall
14establish procedures for placements on and removals from the
15list of self-excluded persons. The regulations shall establish
16procedures for the transmittal to licensed gaming entities of
17identifying information concerning self-excluded persons and
18shall require licensed gaming entities to establish procedures
19designed at a minimum to deny self-excluded persons access to 
20Internet gaming and to remove self-excluded persons from
21targeted mailings or other forms of advertising or promotions
22and deny self-excluded persons access to complimentaries, check
23cashing privileges, club programs and other similar benefits.

24(c) Liability.--A licensed gaming entity or employee thereof
25shall not be liable to any self-excluded person or to any other
26party in any judicial proceeding for any harm, monetary or
27otherwise, which may arise as a result of:

28(1) the failure of a licensed gaming entity to withhold
29gaming privileges from or restore gaming privileges to a
30self-excluded person; [or]

1(1.1) the failure of a licensed gaming entity to
2withhold Internet gaming privileges from or restore Internet
3gaming privileges to a self-excluded person; or

4(2) otherwise permitting or not permitting a self-
5excluded person to engage in gaming activity in the facility
6or participate in Internet gaming while on the list of self-
7excluded persons.

8(d) Disclosure.--Notwithstanding any other law to the
9contrary, the board's list of self-excluded persons shall not be
10open to public inspection. Nothing in this section, however,
11shall be construed to prohibit a licensed gaming entity from
12disclosing the identity of persons self excluded pursuant to
13this section to affiliated gaming entities in this Commonwealth
14or other jurisdictions for the limited purpose of assisting in
15the proper administration of responsible gaming programs
16operated by affiliated licensed gaming entities.

17§ 1517. Investigations and enforcement.

18* * *

19(b) Powers and duties of department.--

20(1) The department shall at all times have the power of
21access to examine and audit equipment and records relating to
22all aspects of the operation of slot machines [or], table 
23games or Internet games under this part.

24* * *

25(c) Powers and duties of the Pennsylvania State Police.--The
26Pennsylvania State Police shall have the following powers and
27duties:

28* * *

29(11) Conduct administrative inspections on the premises
30of licensed racetrack or nonprimary location or licensed

1facility, including restricted areas and redundancy 
2facilities used by a slot machine licensee in its Internet 
3gaming operations, at such times, under such circumstances
4and to such extent as the bureau determines to ensure
5compliance with this part and the regulations of the board
6and, in the course of inspections, review and make copies of
7all documents and records required by the inspection through
8onsite observation and other reasonable means to assure
9compliance with this part and regulations promulgated under
10this part.

11(12) Conduct audits or verification of information of
12slot machine [or], table game or Internet gaming operations
13at such times, under such circumstances and to such extent as
14the bureau determines. This paragraph includes reviews of
15accounting, administrative and financial records and
16management control systems, procedures and records utilized
17by a slot machine licensee.

18* * *

19(e) Inspection, seizure and warrants.--

20(1) The bureau, the department and the Pennsylvania
21State Police shall have the authority without notice and
22without warrant to do all of the following in the performance
23of their duties:

24(i) Inspect and examine all premises where slot
25machine [or], table game or Internet gaming operations
26are conducted, slot machines, table game devices and 
27associated equipment or Internet gaming devices and 
28associated equipment are manufactured, sold, distributed
29or serviced or where records of these activities are
30prepared or maintained.

1(ii) Inspect all equipment and supplies in, about,
2upon or around premises referred to in subparagraph (i).

3(iii) Seize, summarily remove and impound equipment
4and supplies from premises referred to in subparagraph
5(i) for the purposes of examination and inspection.

6(iv) Inspect, examine and audit all books, records
7and documents pertaining to a slot machine licensee's
8operation.

9(v) Seize, impound or assume physical control of any 
10book, record, ledger, game, device, cash box and its 
11contents, count room or its equipment, Internet gaming 
12devices and associated equipment or slot machine [or], 
13table game or Internet gaming operations.

14* * *

15Section 12. Section 1518(a)(3), (4), (5), (7.1), (11),
16(13.1), (15) and (17) and (b)(2) and (3) of Title 4 are amended
17and subsections (a) and (b) are amended by adding paragraphs to
18read:

19§ 1518. Prohibited acts; penalties.

20(a) Criminal offenses.--

21* * *

22(3) It shall be unlawful for any licensed entity, gaming
23employee, key employee or any other person to permit a slot
24machine, table game or table game device, Internet game or 
25Internet gaming device or associated equipment to be
26operated, transported, repaired or opened on the premises of
27a licensed facility by a person other than a person licensed
28or permitted by the board pursuant to this part.

29(3.1) It shall be unlawful for any person who does not
30possess a valid and then effective Internet gaming

1certificate issued by the board in accordance with Chapter
213B (relating to Internet gaming) to accept any wager
3associated with any Internet game from any individual
4physically located in this Commonwealth at the time of such
5play or wager.

6(4) It shall be unlawful for any licensed entity or
7other person to manufacture, supply or place slot machines, 
8table games, table game devices or associated equipment or 
9Internet game or Internet gaming devices or associated 
10equipment into play or display slot machines, table games, 
11table game devices or associated equipment on the premises of
12a licensed facility without the authority of the board.

13(4.1) It shall be unlawful for any slot machine licensee
14to offer Internet games into play or display such games on
15its Internet gaming website without the approval of the
16board.

17(4.2) It shall be unlawful for any licensed entity or
18other person to manufacture, supply or place Internet gaming
19devices or associated equipment into operation at a licensed
20facility without the approval of the board.

21(5) Except as provided for in section 1326 (relating to
22license renewals), it shall be unlawful for a licensed entity
23or other person to manufacture, supply, operate, carry on or
24expose for play any slot machine, table game, table game 
25device or associated equipment, Internet game or Internet 
26gaming device or associated equipment after the person's
27license has expired and prior to the actual renewal of the
28license.

29* * *

30(7.1) It shall be unlawful for an individual to do any

1of the following:

2(i) Use or possess counterfeit, marked, loaded or
3tampered with table game devices or associated equipment,
4chips or other cheating devices in the conduct of gaming
5under this part, except that an authorized employee of a
6licensee or an authorized employee of the board may
7possess and use counterfeit chips or table game devices
8or associated equipment that have been marked, loaded or
9tampered with, or other cheating devices or any 
10unauthorized Internet gaming device in performance of the
11duties of employment for training, investigative or
12testing purposes only.

13(ii) Knowingly, by a trick or sleight of hand
14performance or by fraud or fraudulent scheme, or 
15manipulation, table game device or other device, or 
16Internet gaming device for himself or for another, win or
17attempt to win any cash, property or prize at a licensed
18facility or to reduce or attempt to reduce a losing
19wager.

20(7.2) It shall be unlawful for a person to knowingly
21alter, tamper or manipulate Internet gaming devices or
22associated equipment, including software, system programs,
23hardware and any other device or equipment used in Internet
24gaming operations, in order to alter the odds or the payout
25of an Internet game or to disable the Internet game from
26operating according to the rules of the game as authorized by
27the board.

28(7.3) It shall be unlawful for a person to knowingly
29offer, or allow to be offered, any Internet game that has
30been altered, tampered with or manipulated in a way that

1affects the odds or the payout of an Internet game, or
2disables the internet game from operating according to the
3rules of the game as authorized by the board.

4* * *

5(11) It shall be unlawful for a licensed gaming entity
6that is a licensed racing entity and that has lost the
7license issued to it by either the State Horse Racing
8Commission or the State Harness Racing Commission under the
9Race Horse Industry Reform Act or that has had that license
10suspended to operate slot machines [or], table games or 
11Internet games at the racetrack for which its slot machine
12license was issued unless the license issued to it by either
13the State Horse Racing Commission or the State Harness Racing
14Commission will be subsequently reissued or reinstated within
1530 days after the loss or suspension.

16* * *

17(13.1) It shall be unlawful for an individual under 21
18years of age to wager, play or attempt to play a slot machine
19or table game at a licensed facility or wager, play or 
20attempt to play an Internet game.

21(13.2) It shall be unlawful to allow a person under 21
22years of age to open, maintain or use in any way an Internet
23gaming account. Any slot machine licensee or employee of a
24slot machine licensee who knowingly allows a person under 21
25years of age to open, maintain or use an Internet gaming
26account shall be subject to the penalty set forth in this
27section, except that the establishment of all of the
28following facts by a slot machine licensee or employee of a
29slot machine licensee shall constitute a defense to any
30regulatory action by the board or the penalty authorized

1under this section:

2(i) the underage person falsely represented that he
3was of the permitted 21 years of age in the application
4for an Internet gaming account; and

5(ii) the establishment of the Internet gaming
6account was made in good faith reliance upon such
7representation and in the reasonable belief that the
8underage person was 21 years of age.

9* * *

10(15) It shall be unlawful for a licensed gaming entity
11to require a wager to be greater than the stated minimum
12wager or less than the stated maximum wager. However, a wager
13made by a player and not rejected by a licensed gaming entity
14prior to commencement of play shall be treated as a valid
15wager. A wager accepted by a dealer or through an Internet 
16game shall be paid or lost in its entirety in accordance with
17the rules of the game, notwithstanding that the wager
18exceeded the current table maximum wager or Internet game 
19wager or was lower than the current table minimum wager or 
20minimum Internet game wager.

21* * *

22(17) It shall be unlawful for an individual to claim,
23collect or take, or attempt to claim, collect or take, money
24or anything of value in or from a slot machine, gaming table
25or other table game device, or Internet game or Internet 
26gaming device with the intent to defraud, or to claim,
27collect or take an amount greater than the amount won, or to
28manipulate with the intent to cheat, any component of any
29slot machine, table game or table game device, Internet game 
30or Internet gaming device in a manner contrary to the

1designed and normal operational purpose.

2(b) Criminal penalties and fines.--

3(1) (i) A person that commits a first offense in
4violation of 18 Pa.C.S. § 4902, 4903 or 4904 in
5connection with providing information or making any
6statement, whether written or oral, to the board, the
7bureau, the department, the Pennsylvania State Police,
8the Office of Attorney General or a district attorney as
9required by this part commits an offense to be graded in
10accordance with the applicable section violated. A person
11that is convicted of a second or subsequent violation of
1218 Pa.C.S. § 4902, 4903 or 4904 in connection with
13providing information or making any statement, whether
14written or oral, to the board, the bureau, the
15department, the Pennsylvania State Police, the Office of
16Attorney General or a district attorney as required by
17this part commits a felony of the second degree.

18(ii) A person that violates subsection (a)(2), (3) 
19and (4) through (12) or (17) commits a misdemeanor of the
20first degree. A person that is convicted of a second or
21subsequent violation of subsection (a)(2), (3) and (4)
22through (12) or (17) commits a felony of the second
23degree.

24(2) (i) For a first violation of subsection (a)(1), 
25(2), (3) and (4) through (12) or (17), a person shall be
26sentenced to pay a fine of:

27(A) not less than $75,000 nor more than $150,000
28if the person is an individual;

29(B) not less than $300,000 nor more than
30$600,000 if the person is a licensed gaming entity;

1or

2(C) not less than $150,000 nor more than
3$300,000 if the person is a licensed manufacturer
4[or], supplier[.] or gaming service provider or other 
5person authorized by the board to provide Internet 
6games and Internet gaming devices or associated 
7equipment.

8(ii) For a second or subsequent violation of
9subsection (a)(1), (2), (3) and (4) through (12) or (17),
10a person shall be sentenced to pay a fine of:

11(A) not less than $150,000 nor more than
12$300,000 if the person is an individual;

13(B) not less than $600,000 nor more than
14$1,200,000 if the person is a licensed gaming entity;
15or

16(C) not less than $300,000 nor more than
17$600,000 if the person is a licensed manufacturer
18[or], supplier[.], or gaming service provider or 
19other person authorized by the board to provide 
20Internet games and Internet gaming devices or 
21associated equipment.

22(2.1) A person that commits an offense in violation of
23subsection (a)(3.1) commits a felony of the second degree and
24shall be sentenced to pay a fine of not less than $500,000 or
25more than $1,000,000. A person that is convicted of a second
26or subsequent violation of subsection (a)(3.1) commits a
27felony of the first degree and shall be sentenced to pay a
28fine of not less than $1,000,000 or more than $2,500,000.

29(3) An individual who commits an offense in violation of
30subsection (a)(13) [or], (13.1) or (13.2) commits a

1nongambling summary offense and upon conviction of a first
2offense shall be sentenced to pay a fine of not less than
3$200 nor more than $1,000. An individual that is convicted of
4a second or subsequent offense under subsection (a)(13) [or],
5(13.1) or (13.2) shall be sentenced to pay a fine of not less
6than $500 nor more than $1,500. In addition to the fine
7imposed, an individual convicted of an offense under
8subsection (a)(13) or (13.1) may be sentenced to perform a
9period of community service not to exceed 40 hours.

10* * *

11Section 13. Section 1901(a) of Title 4 is amended by adding
12a paragraph to read:

13§ 1901. Appropriations.

14(a) Appropriation to board.--

15* * *

16(3) The sum of $5,000,000 is hereby appropriated from
17the State Gaming Fund to the Pennsylvania Gaming Control
18Board for salaries, wages and all necessary expenses for the
19proper operation and administration of the board for the
20expansion of gaming associated with Internet gaming. This
21appropriation shall be a supplemental appropriation for
22fiscal year 2012-2103 and shall be in addition to the
23appropriation contained in the act of June 13, 2012 (P.L. ,
24No.6A), known as the Gaming Control Appropriation Act of
252012.

26* * *

27Section 14. This act shall take effect immediately.

 

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