Regular Session 2017-2018 Senate Bill 0524 P.N. 0537

PRINTER'S NO. 537

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

524

Session of

2017

INTRODUCED BY COSTA, FONTANA, HUGHES AND SCHWANK, MARCH 20, 2017

REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,

MARCH 20, 2017

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

Statutes, providing for fantasy contests and for iLottery; in

general provisions, further providing for legislative intent

and for definitions; in Pennsylvania Gaming Control Board,

further providing for general and specific powers, for

licensed gaming entity application appeals from board, for

board minutes and records, for regulatory authority of board,

for slot machine license fee, for reports of board and for

diversity goals of board; in licensees, further providing for

Category 3 slot machine license, for slot machine license

application, for supplier licenses, for manufacturer

licenses, for slot machine testing and certification

standards and for license renewals and providing for

nongaming service provider and for slot machine license

operation fee; in table games, further providing for other

financial transactions, for table game device and associated

equipment testing and certification standards and for local

share assessment; providing for interactive gaming; in

revenues, further providing for establishment of State Gaming

Fund and net slot machine revenue distribution; in

administration and enforcement, further providing for

responsibility and authority of the Department of Revenue,

for compulsive and problem gambling program, for financial

and employment interests, for political influence, for

regulation requiring exclusion or ejection of certain

persons, for repeat offenders excludable from licensed gaming

facility, for list of persons self excluded from gaming

activities, for investigations and enforcement and for

prohibited acts and penalties; in miscellaneous provisions,

further providing for appropriations; and making a related

repeal.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 4 of the Pennsylvania Consolidated Statutes

is amended by adding a part to read:

PART I

AMUSEMENTS GENERALLY

Chapter

1. Preliminary Provisions (Reserved)

3. Fantasy Contests

5. iLottery

CHAPTER 1

PRELIMINARY PROVISIONS

(Reserved)

CHAPTER 3

FANTASY CONTESTS

Subchapter

A. General Provisions

B. Administration

C. Licensure

D. Fiscal Provisions

E. Miscellaneous Provisions

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

301. Scope of chapter.

302. Definitions.

§ 301. Scope of chapter.

This chapter relates to fantasy contests.

§ 302. Definitions.

The following words and phrases when used in this chapter

shall have the meanings given to them in this section unless the

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context clearly indicates otherwise:

"Board." The Pennsylvania Gaming Control Board.

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

play of slot machines and table games under Part II (relating to

gaming) as authorized and approved by the board.

"Controlling interest." Either of the following:

(1) For a publicly traded domestic or foreign

corporation, a controlling interest is an interest if a

person's sole voting rights under State law or corporate

articles or bylaws entitle the person to elect or appoint one

or more of the members of the board of directors or other

governing board or the ownership or beneficial holding of 5%

or more of the securities of the publicly traded corporation,

partnership, limited liability company or other form of

publicly traded legal entity, unless this presumption of

control or ability to elect is rebutted by clear and

convincing evidence.

(2) For a privately held domestic or foreign

corporation, partnership, limited liability company or other

form of privately held legal entity, a controlling interest

is the holding of securities of 15% or more in the legal

entity, unless this presumption of control is rebutted by

clear and convincing evidence.

"Department." The Department of Revenue of the Commonwealth.

"Entry fee." The cash or cash equivalent paid by a

participant to a licensed operator in order to participate in a

fantasy contest.

"Fantasy contest." An online fantasy or simulated game or

contest with an entry fee and a prize or award administered by a

licensed operator in which:

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(1) The value of all prizes or awards offered to winning

participants is established and made known to participants in

advance of the contest.

(2) All winning outcomes reflect the relative knowledge

and skill of participants and are determined by accumulated

statistical results of the performance of individuals,

including athletes in the case of sports events.

(3) No winning outcome is based on the score, point

spread or performance of a single actual team or combination

of teams or solely on a single performance of an individual

athlete or player in a single actual event.

"Fantasy contest account." The formal electronic system

implemented by a licensed operator to record a participant's

entry fees, prizes or awards and other activities related to

participation in the licensed operator's fantasy contests.

"Fantasy contest adjusted revenues." For each fantasy

contest, the amount equal to the total amount of all entry fees

collected from all participants entering the fantasy contest

minus prizes or awards paid to participants in the fantasy

contest, multiplied by the in-State percentage.

"Fantasy contest license." A license issued by the board

authorizing a person to offer fantasy contests in this

Commonwealth in accordance with this chapter.

"Gaming service provider." As defined in section 1103

(relating to definitions).

"iLottery." A modern digital system that provides for the

distribution of lottery products through numerous channels that

include, but are not limited to, web applications, mobile

applications, mobile web, tablets and social media platforms

that allow players to interface through a portal for the purpose

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of obtaining lottery products and ancillary services, such as

account management, game purchase, game play and prize

redemption.

"In-State participant." An individual who participates in a

fantasy contest conducted by a licensed operator and pays a fee

to a licensed operator from a location within this Commonwealth.

"In-State percentage." For each fantasy contest, the

percentage, rounded to the nearest tenth of a percent, equal to

the total entry fees collected from all in-State participants

divided by the total entry fees collected from all participants

in the fantasy contest.

"Key employee." An individual who is employed by an

applicant for a fantasy contest license or a licensed operator

in a director or department head capacity and who is empowered

to make discretionary decisions that regulate fantasy contest

operations as determined by the board.

"Licensed entity representative." A person, including an

attorney, agent or lobbyist, acting on behalf of or authorized

to represent the interest of an applicant, licensee or other

person authorized by the board to engage in an act or activity

which is regulated under this chapter regarding a matter before,

or which may be reasonably expected to come before, the board.

"Licensed gaming entity." As defined in section 1103

(relating to definitions).

"Licensed operator." A person who holds a fantasy contest

license.

"Participant." An individual who participates in a fantasy

contest, whether the individual is located in this Commonwealth

or another jurisdiction.

"Person." A natural person, corporation, publicly traded

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corporation, foundation, organization, business trust, estate,

limited liability company, licensed corporation, trust,

partnership, limited liability partnership, association or any

other form of legal business entity.

"Principal." An officer, director, person who directly holds

a beneficial interest in or ownership of the securities of an

applicant for a fantasy contest license or a licensed operator,

person who has a controlling interest in an applicant for a

fantasy contest license or a licensed operator or who has the

ability to elect a majority of the board of directors of a

licensed operator or to otherwise control a licensed operator,

lender or other licensed financial institution of an applicant

for a fantasy contest license or a licensed operator, other than

a bank or lending institution which makes a loan or holds a

mortgage or other lien acquired in the ordinary course of

business, underwriter of an applicant for a fantasy contest

license or a licensed operator or other person or employee of an

applicant for a fantasy contest license or a licensed operator

deemed to be a principal by the board.

"Prize or award." Anything of value worth $100 or more or

any amount of cash or cash equivalents.

"Publicly traded corporation." A person, other than an

individual, that:

(1) has a class or series of securities registered under

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

§ 78a et seq.);

(2) is a registered management company under the

Investment Company Act of 1940 (54 Stat. 789, 15 U.S.C. §

80a-1 et seq.); or

(3) is subject to the reporting obligations imposed by

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section 15(d) of the Securities Exchange Act of 1934 (48

Stat. 881, 15 U.S.C. § 780) by reason of having filed a

registration statement that has become effective under the

Securities Act of 1933 (48 Stat. 74, 15 U.S.C. § 77a et

seq.).

"Script." A list of commands that a fantasy-contest-related

computer program can execute that is created by a participant or

third party not approved by the licensed operator to automate

processes on a licensed operator's fantasy contest platform.

"Season-long fantasy contest." A fantasy contest offered by

a licensed operator that is conducted over an entire sports

season.

"Subscription services." A payment, advance payment or

promise of payment for multiple lottery products over a

specified period of time, which shall include payments through

iLottery.

SUBCHAPTER B

ADMINISTRATION

Sec.

311. General and specific powers of board.

312. Temporary regulations.

313. Fantasy contest license appeals.

314. Board minutes and records.

315. Reports of board.

§ 311. General and specific powers of board.

(a) General powers.--

(1) The board shall have regulatory authority over

licensed operators, principals and key employees and shall

ensure the integrity of fantasy contests offered in this

Commonwealth in accordance with this chapter.

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(2) The board may employ individuals as necessary to

carry out the requirements of this chapter who shall serve at

the board's pleasure. An employee of the board shall be

considered a State employee for purposes of 71 Pa.C.S. Pt.

XXV (relating to retirement for State employees and

officers).

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

powers:

(1) At the board's discretion, to issue, approve, renew,

revoke, suspend, condition or deny issuance of licenses.

(2) At the board's discretion, to suspend, condition or

deny the issuance or renewal of a license or levy fines for

any violation of this chapter.

(3) To publish each January on the board's publicly

accessible Internet website a complete list of all persons

who applied for or held a fantasy contest license at any time

during the preceding calendar year and the status of the

application or fantasy contest license.

(4) To prepare and, through the Governor, submit

annually to the General Assembly an itemized budget

consistent with Article VI of the act of April 9, 1929

(P.L.177, No.175), known as The Administrative Code of 1929,

consisting of the amounts necessary to be appropriated by the

General Assembly out of the accounts established under

section 332 (relating to licensed operator deposits) required

to meet the obligations under this chapter accruing during

the fiscal period beginning July 1 of the following year.

(5) In the event that, in any year, appropriations for

the administration of this chapter are not enacted by June

30, to use any funds appropriated for the administration of

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this chapter which are unexpended, uncommitted and

unencumbered at the end of a fiscal year, which shall remain

available for expenditure by the board until the enactment of

appropriation for the ensuing fiscal year.

(6) To promulgate rules and regulations necessary for

the administration and enforcement of this chapter. Except as

provided in section 312 (relating to temporary regulations),

regulations shall be adopted under the act of July 31, 1968

(P.L.769, No.240), referred to as the Commonwealth Documents

Law, and the act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(7) To administer oaths, examine witnesses and issue

subpoenas compelling the attendance of witnesses or the

production of documents and records or other evidence or to

designate officers or employees to perform duties required by

this chapter.

(8) At the board's discretion, to delegate any of the

board's responsibilities under this chapter to the executive

director of the board or other designated staff.

(9) To require licensed operators and applicants for a

fantasy contest license to submit any information or

documentation necessary to ensure the proper regulation of

fantasy contests in accordance with this chapter.

(10) To require licensed operators, except for a

licensed operator operating season-long fantasy contests that

generate less than $250,000 in season-long fantasy contest

adjusted revenue, unless the board determines otherwise, to:

(i) annually contract with a certified public

accountant to conduct an independent audit in accordance

with standards adopted by the American Institute of

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Certified Public Accountants to verify compliance with

the provisions of this chapter and board regulations;

(ii) annually contract with a testing laboratory

approved by the board to verify compliance with the

provisions of this chapter and board regulations; and

(iii) annually submit to the board and department a

copy of the audit report required by subparagraph (i) and

submit to the board a copy of the report of the testing

laboratory required by subparagraph (ii).

(11) In conjunction with the Department of Health, to

develop a process by which licensed operators provide

participants with a toll-free telephone number that provides

individuals with information on how to access appropriate

treatment services for compulsive and problem play.

(b.1) Licensed entity representative.--

(1) A licensed entity representative shall register with

the board, in a manner prescribed by the board. The

registration shall include the name, employer or firm,

business address and business telephone number of both the

licensed entity representative and any licensed operator,

applicant for licensure or other person being represented.

(2) A licensed entity representative shall have an

affirmative duty to update its registration information on an

ongoing basis. Failure to update shall be punishable by the

board.

(3) The board shall maintain a list of licensed entity

representatives which shall contain the information required

under paragraph (1) and shall be available for public

inspection at the offices of the board and on the board's

publicly accessible Internet website.

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(relating to licensed gaming entities), nothing in this section

shall be construed to authorize the board:

(1) To require background investigations for employees,

other than key employees and principals, of an applicant for

a fantasy contest license or a licensed operator.

(2) To require any additional permits or licenses not

specifically enumerated in this chapter.

(3) To impose additional conditions of licensure on

licensed operators or prohibitions on the operation of

fantasy contests not specifically enumerated in this chapter.

§ 312. Temporary regulations.

(a) Promulgation.--In order to facilitate the prompt

implementation of this chapter, regulations promulgated by the

board shall be deemed temporary regulations and shall expire no

later than two years following the effective date of this

section. The board may promulgate temporary regulations not

subject to:

(1) Sections 201, 202 and 203 of the act of July 31,

1968 (P.L.769, No.240), referred to as the Commonwealth

Documents Law.

(2) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(b) Expiration.--Except for temporary regulations concerning

network connectivity, security and testing and compulsive and

problem play, the authority provided to the board to adopt

temporary regulations in subsection (a) shall expire no later

than two years following the effective date of this section.

Regulations adopted after this period shall be promulgated as

provided by law.

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§ 313. Fantasy contest license appeals.

An applicant may appeal any final order, determination or

decision of the board involving the approval, issuance, denial,

revocation or conditioning of a fantasy contest license in

accordance with 2 Pa.C.S. Chs. 5 Subch. A (relating to practice

and procedure of Commonwealth agencies) and 7 Subch. A (relating

to judicial review of Commonwealth agency action).

§ 314. Board minutes and records.

(a) Record of proceedings.--The board shall maintain a

record of all proceedings held at public meetings of the board.

The verbatim transcript of the proceedings shall be the property

of the board and shall be prepared by the board upon the request

of any board member or upon the request of any other person and

the payment by that person of the costs of preparation.

(b) Applicant information.--

(1) The board shall maintain a list of all applicants

for a fantasy contest license. The list shall include a

record of all actions taken with respect to each applicant.

The list shall be open to public inspection during the normal

business hours of the board.

(2) Information under paragraph (1) regarding an

applicant whose fantasy contest license has been denied,

revoked or not renewed shall be removed from the list after

seven years from the date of the action.

other files and records as it may deem appropriate.

(d) Confidentiality of information.--

(1) The following information submitted by an applicant

for a fantasy contest license under section 322 (relating to

application) or otherwise obtained by the board as part of a

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background or other investigation from any source shall be

confidential and withheld from public disclosure:

(i) All information relating to character, honesty

and integrity, including family, habits, reputation,

history of criminal activity, business activities,

financial affairs and business, professional and personal

associations.

(ii) Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

relating to an applicant.

(iii) Information relating to proprietary

information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and

information relating to competitive marketing materials

and strategies that may include customer-identifying

information or customer prospects for services subject to

competition.

(iv) Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of an individual as

determined by the board.

(v) Records of an applicant for a fantasy contest

license or a licensed operator not required to be filed

with the Securities and Exchange Commission by issuers

that either have securities registered under section 12

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of the Securities Exchange Act of 1934 (48 Stat. 881, 15

U.S.C. § 78l) or are required to file reports under

section 15(d) of the Securities Exchange Act of 1934 (48

Stat. 881, 15 U.S.C. § 78o)

(vi) Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to commission records

and information).

(vii) Financial or security information deemed

confidential by the board upon a showing of good cause by

the applicant for a fantasy contest license or licensed

operator.

(2) No claim of confidentiality may be made regarding

any criminal history record information that is available to

the public under 18 Pa.C.S. § 9121(b) (relating to general

regulations).

(3) No claim of confidentiality shall be made regarding

any record in possession of the board that is otherwise

publicly available from a Commonwealth agency, local agency

or another jurisdiction.

(4) The information made confidential under this section

shall be withheld from public disclosure, in whole or in

part, except that any confidential information shall be

released upon the order of a court of competent jurisdiction

or, with the approval of the Attorney General, to a duly

authorized law enforcement agency or shall be released to the

public, in whole or in part, to the extent that such release

is requested by an applicant for a fantasy contest license or

licensed operator and does not otherwise contain confidential

information about another person.

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(5) The board may seek a voluntary waiver of

confidentiality from an applicant for a fantasy contest

license or a licensed operator, but may not require an

applicant or licensed operator to waive any confidentiality

provided for in this subsection as a condition for the

approval of an application, renewal of a fantasy contest

license or any other action of the board.

(e) Notice.--Notice of the contents of any information,

except to a duly authorized law enforcement agency under this

section, shall be given to an applicant or licensee in a manner

prescribed by the rules and regulations adopted by the board.

(f) Information held by department.--Files, records, reports

and other information in the possession of the department

pertaining to licensed operators shall be made available to the

board as may be necessary for the effective administration of

this chapter.

§ 315. Reports of board.

(a) General rule.--The annual report submitted by the board

under section 1211 (relating to reports of board) shall include

the following information on the conduct of fantasy contests:

(1) Total fantasy contest adjusted revenues.

(2) All taxes, fees, fines and other revenue collected

from licensed operators during the previous year. The

department shall collaborate with the board to carry out the

requirements of this section.

(3) At the board's discretion, any other information

related to the conduct of fantasy contests or licensed

operators.

(b) Licensed operators.--The board may require licensed

operators to provide information to the board to assist in the

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preparation of the report.

SUBCHAPTER C

LICENSURE

Sec.

321. General prohibition.

322. Application.

323. Issuance and denial of license.

324. License renewal.

325. Conditions of licensure.

326. Prohibitions.

327. Change in ownership or control of licensed operators.

328. Penalties.

§ 321. General prohibition.

(a) General rule.--Except as provided for in subsection (b),

no person may offer or otherwise make available for play in this

Commonwealth a fantasy contest without a fantasy contest license

issued by the board.

(b) Existing activity.--A person who applies for or renews a

fantasy contest license in accordance with this chapter may

operate during the application or renewal period unless:

(1) The board has reasonable cause to believe the person

is or may be in violation of the provisions of this chapter.

(2) The board requires the person to suspend the

operation of any fantasy contest until the license is issued

or renewed.

§ 322. Application.

(a) Form and information.--An application for a license

shall be submitted on a form and in a manner as shall be

required by the board. An application for a fantasy contest

license shall contain the following information:

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(1) The name, Federal employer identification number and

principal address of the applicant; if a corporation, the

state of its incorporation, the full name and address of each

officer and director thereof, and, if a foreign corporation,

whether it is qualified to do business in this Commonwealth;

if a partnership or joint venture, the name and address of

each officer thereof.

(2) The name and address of the person having custody of

the applicant's financial records.

(3) The names and addresses of key employees.

(4) The names and addresses of each of the applicant's

principals.

(5) Information, documentation and assurances related to

financial and criminal history as the board deems necessary

to establish by clear and convincing evidence the financial

stability, integrity and responsibility of the applicant and

the applicant's key employees and principals.

(6) Information and documentation necessary to establish

the applicant's ability to comply with section 325 (relating

to conditions of licensure).

(7) Any other information required by the board.

(b) Nonrefundable application fee.--Each application

submitted under this chapter shall be accompanied by a

nonrefundable application fee, which shall be established by the

board, and which may not exceed the amount necessary to

reimburse the board for all costs incurred by the board for

fulfilling the requirements of this section and section 323

(relating to issuance and denial of license) or exceed an amount

equal to 5% of the applicant's fantasy contest adjusted revenues

for the previous calendar year.

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contest license shall have the continuing duty to provide

information required by the board and to cooperate in any

inquiry or investigation.

(d) Abbreviated application process.--The board, at its

discretion, may establish an abbreviated application process for

a fantasy contest license for persons that are also licensed

gaming entities. The abbreviated application may only require

information not in possession of the board that is necessary to

fulfill the requirements of this chapter.

§ 323. Issuance and denial of license.

(a) Duty to review applications.--The board shall review all

applications for a license and shall issue a license to any

applicant that:

(1) Has submitted a completed application and paid the

nonrefundable application fee as required by the board under

section 322 (relating to application).

(2) Has demonstrated that the applicant has the

financial stability, integrity and responsibility to comply

with the provisions of this chapter and regulations

established by the board.

(3) Has not been denied a license under subsection (b).

(b) Reasons to deny applications.--The board may deny an

application for a license if the applicant:

(1) has knowingly made a false statement of material

fact or has deliberately failed to disclose any information

requested;

(2) employs a principal or key employee who has been

convicted of a felony, a crime of moral turpitude or any

criminal offense involving dishonesty or breach of trust

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within 10 years prior to the date of the application for a

license;

(3) has at any time knowingly failed to comply with the

provisions of this chapter or of any requirements of the

board;

(4) has had a registration, permit or license to conduct

fantasy contests denied or revoked in any other jurisdiction;

(5) has legally defaulted in the payment of any

obligation or debt due to the Commonwealth or is not

compliant with taxes due; or

(6) is not qualified to do business in this Commonwealth

or is not subject to the jurisdiction of the courts of the

Commonwealth.

review of an application for a fantasy contest license within

120 days of receipt of the completed application. If the license

is not issued, the board shall provide the applicant with the

justification for not issuing such license with specificity.

(d) License fee.--

(1) Within 30 days of the board issuing a fantasy

contest license, an applicant shall pay to the board a

license fee of $2,500,000.

(2) The license fee collected under this subsection

shall be deposited into the General Fund.

(3) If an applicant fails to pay the fee required by

this subsection, the board shall suspend or revoke the

applicant's fantasy contest license until payment of the

license fee is received.

(e) Abbreviated approval process.--The board, at its

discretion, may establish an abbreviated approval process for

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the issuance of a fantasy contest license to a licensed gaming

entity whose slot machine license and table game certificate are

in good standing.

§ 324. License renewal.

(a) Renewal.--

(1) A license issued under this chapter shall be valid

for a period of five years.

(2) Nothing in this paragraph shall be construed to

relieve a licensed operator of the affirmative duty to notify

the board of any changes relating to the status of its

fantasy contest license or to any other information contained

in the application materials on file with the board.

(3) The application for renewal of a fantasy contest

license must be submitted at least 90 days prior to the

expiration of the license and include an update of the

information contained in the initial application for a

fantasy contest license. A fantasy contest license for which

a completed renewal application and fee as required under

subsection (c) has been received by the board shall continue

in effect unless and until the board sends written

notification to the licensed operator that the board has

denied the renewal of the license.

(b) Revocation or failure to renew.--

(1) In addition to any other sanction the board may

impose under this chapter, the board may at its discretion

suspend, revoke or deny renewal of a fantasy contest license

issued under this chapter if it receives information that:

(i) the applicant or any of the applicant's key

employees or principals are in violation of any provision

of this chapter;

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(ii) the applicant has furnished the board with

false or misleading information;

(iii) the information contained in the applicant's

initial application or any renewal application is no

longer true and correct;

(iv) the applicant has failed to remit taxes or

assessments required under section 331 (relating to

fantasy contest tax), 332 (relating to licensed operator

deposits) or 333 (relating to responsibility and

authority of department); or

(v) the applicant has legally defaulted in the

payment of any obligation or debt due to the

Commonwealth.

(2) In the event of a revocation or failure to renew,

the applicant's authorization to conduct fantasy contests

shall immediately cease, and all fees paid in connection with

the application shall be deemed to be forfeited.

(3) In the event of a suspension, the applicant's

authorization to conduct fantasy contests shall immediately

cease until the board has notified the applicant that the

suspension is no longer in effect.

(1) Within 30 days of the board renewing a fantasy

contest license, the licensed operator shall pay to the board

a renewal fee of $500,000.

(2) The renewal fee collected by the board under this

subsection shall be deposited into the General Fund.

(3) If a licensed operator fails to pay the renewal fee

required under this subsection, the board shall suspend or

revoke the licensed operator's fantasy contest license until

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payment of the renewal fee is received.

§ 325. Conditions of licensure.

As a condition of licensure, a licensed operator shall

establish and implement the following commercially reasonable

procedures related to conduct of fantasy contests in this

Commonwealth:

(1) Permit-only participants who have established a

fantasy contest account with the licensed operator to

participate in a fantasy contest conducted by the licensed

operator.

(2) Verify the age, location and identity of any

participant prior to making a deposit into a fantasy contest

account for a participant located in this Commonwealth. No

participant under 21 years of age may be permitted to

establish a fantasy contest account with a licensed operator.

(3) Verify the identity of a participant by requiring

the participant to provide the licensed operator a unique

user name and password prior to accessing a fantasy contest

account.

(4) Ensure rules and prizes and awards established by

the licensed operator for a fantasy contest are made known to

a participant prior to the acceptance of any entry fee.

(5) Ensure that a player who is the subject of a fantasy

contest is restricted from entering as a participant in a

fantasy contest that is determined, in whole or part, on the

accumulated statistical results of a team of individuals in

the league in which the player is a member.

(6) Allow a person to restrict himself from entering a

fantasy contest or accessing a fantasy contest account for a

specific period of time as determined by the participant and

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implement reasonable procedures to prevent the individual

from participating in the licensed operator's fantasy

contests.

(7) Allow a person to restrict the total amount of

deposits that the participant may pay to the licensed

operator for a specific time period established by the

participant and implement reasonable procedures to prevent

the participant from exceeding the limit.

(8) Conspicuously post compulsive and problem play

notices at fantasy contest registration points and provide a

toll-free telephone number to participants who have expressed

to the licensed operator issues with compulsive and problem

play of fantasy contests. The toll-free telephone number and

the compulsive and problem play notice shall be approved by

the board, in consultation with the Department of Health.

(9) Disclose the number of entries a single participant

may submit to each fantasy contest and take commercially

reasonable steps to prevent such participants from submitting

more than the allowable number.

(10) Prevent the licensed operator's principals,

employees and relatives living in the same household of an

employee or principal from competing in a fantasy contest

offered by any licensed operator to the general public and in

which fantasy contest the licensed operator offers a prize or

award.

(11) Prevent the sharing of confidential information

that could affect fantasy contest play with third parties

until the information is made publicly available.

(12) Take commercially reasonable steps to maintain the

confidentiality of a participant's personal and financial

20170SB0524PN0537 - 23 -

information.

(13) Segregate participant funds from operational funds

in separate accounts and maintain a reserve in the form of

cash, cash equivalents, security deposits held by banks and

processors, an irrevocable letter of credit, payment

processor reserves and receivables, a bond or a combination

thereof in an amount sufficient to pay all prizes and awards

offered to winning participants. To satisfy this paragraph, a

licensed operator that only offers season-long fantasy

contests that generate less than $250,000 in season-long

fantasy contest adjusted revenue may contract with a third

party to hold prizes and awards in an escrow account until

after the season is concluded and prizes and awards are

distributed.

(14) Provide winning in-State participants with

information and documentation necessary to ensure the proper

reporting of winnings by in-State participants to the

department.

(15) Remit taxes or assessments to the department in

accordance with sections 331 (relating to fantasy contest

tax), 332 (relating to licensed operator deposits) and 333

(relating to responsibility and authority of department).

(16) Prohibit the use of scripts by participants and

implement technologies to prevent the use of scripts.

(17) Monitor fantasy contests for the use of scripts and

restrict players found to have used such scripts from

participation in future fantasy contests.

(18) Establish any other condition deemed appropriate by

the board.

§ 326. Prohibitions.

20170SB0524PN0537 - 24 -

(a) General rule.--No licensed operator may:

(1) accept an entry fee from or permit a natural person

under 21 years of age to become a participant in a fantasy

contest;

(2) offer a fantasy contest based, in whole or in part,

on collegiate or high school athletic events or players;

(3) permit a participant to enter a fantasy contest

prior to establishing a fantasy contest account;

(4) establish a fantasy contest account for a person who

is not an individual;

(5) alter rules established for a fantasy contest after

a participant has entered the fantasy contest;

(6) issue credit to a participant to establish or fund a

fantasy contest account;

(7) knowingly directly market to a participant during

the time period in which the participant has self-excluded

from the licensed operators' fantasy contests;

(8) knowingly permit a participant to enter the licensed

operator's fantasy contests during the time period in which

the participant has self-excluded from the licensed

operators' fantasy contests;

(8.1) knowingly allow a self-excluded individual to keep

a prize or award;

(9) knowingly accept a deposit in excess of a limit

established by a participant for the specific time period

established by the participant;

(10) share confidential information that could affect

fantasy contest play with third parties until the information

is made publicly available;

(11) knowingly permit a principal, an employee or a

20170SB0524PN0537 - 25 -

relative living in the same household of an employee or

principal to become a participant in a fantasy contest

offered by any licensed operator in which a licensed operator

offers a prize or award;

(12) offer a fantasy contest where:

(i) the value of all prizes or awards offered to

winning participants is not established and made known to

participants in advance of the fantasy contest;

(ii) winning outcomes do not reflect the relative

knowledge and skill of participants;

(iii) the winning outcome is based on the score,

point spread or performance of a single actual team or

combination of teams or solely on a single performance of

an individual athlete or player in a single actual event;

(iv) the winning outcome is not based on statistical

results accumulated from fully completed athletic sports

contests or events, except that participants may be

credited for statistical results accumulated in a

suspended or shortened sports event which has been

partially completed on account of weather or other

natural or unforeseen event;

(13) fail to remit taxes or assessments to the

department in accordance with sections 331 (relating to

fantasy contest tax), 332 (relating to licensed operator

deposits) and 333 (relating to responsibility and authority

of department);

(14) knowingly allow a participant to use a script

during a fantasy contest; and

(15) perform any other action prohibited by the board or

20170SB0524PN0537 - 26 -

the Commonwealth.

(b) Deposit.--The licensed operator shall deposit the amount

of the prize or award under subsection (a)(8.1) in the General

Fund.

§ 327. Change in ownership or control of licensed operators.

(a) Notification and approval.--

(1) A licensed operator shall notify the board upon

becoming aware of any proposed change of ownership of the

licensed operator by a person or group of persons acting in

concert which involves any of the following:

(i) More than 15% of a licensed operator's

securities or other ownership interests.

(ii) The sale other than in the ordinary course of

business of a licensed operator's assets.

(iii) Any other transaction or occurrence deemed by

the board to be relevant to fantasy contest license

qualifications.

(2) Notwithstanding the provisions of paragraph (1), a

licensed operator shall not be required to notify the board

of any acquisition by an institutional investor under

paragraph (1)(i) or (ii) if the institutional investor holds

less than 10% of the securities or other ownership interests

referred to in paragraph (1)(i) or (ii), the securities or

interests are publicly traded securities and its holdings of

such securities were purchased for investment purposes only

and the institutional investor files with the board a

certified statement to the effect that the institutional

investor has no intention of influencing or affecting,

directly or indirectly, the affairs of the licensed operator,

provided, however, that the institutional investor may vote

20170SB0524PN0537 - 27 -

on matters put to the vote of the outstanding security

holders. Notice to the board shall be required prior to

completion of any proposed or contemplated change of

ownership of a licensed operator that meets the criteria of

this section.

(b) Qualification of purchaser and change of control.--

(1) A purchaser of the assets, other than in the

ordinary course of business, of a licensed operator shall

independently qualify for a fantasy contest license in

accordance with this chapter and shall pay the application

fee and license fee as required by sections 322 (relating to

application) and 323 (relating to issuance and denial of

license) , except that if the purchaser of assets is another

licensed operator, the purchaser of assets shall not be

required to requalify for a fantasy contest license or pay

another application fee and license fee.

(2) A change in control of any licensed operator shall

require that the licensed operator independently qualify for

a fantasy contest license in accordance with this chapter,

and the licensed operator shall pay a new application and

license fee as required by sections 322 and 323, except that

if the new controller is another licensed operator, the new

controller shall not be required to requalify for a fantasy

contest license or pay another application fee and license

fee.

section, a change in control of a licensed operator shall mean

the acquisition by a person or group of persons acting in

concert of more than 20% of a licensed operator's securities or

other ownership interests, with the exception of any ownership

20170SB0524PN0537 - 28 -

interest of the person that existed at the time of initial

licensing and payment of the initial fantasy contest license

fee, or more than 20% of the securities or other ownership

interests of a corporation or other form of business entity that

owns directly or indirectly at least 20% of the voting or other

securities or other ownership interests of the licensed

operator.

(d) License revocation.--Failure to comply with this section

may cause the fantasy contest license issued under this chapter

to be revoked or suspended by the board unless the purchase of

the assets or the change in control that meets the criteria of

this section has been independently qualified in advance by the

board and any required application or license fee has been paid.

§ 328. Penalties.

(a) Suspension or revocation of license.--

(1) After a public hearing with at least 15 days'

notice, the board may suspend or revoke a licensed operator's

fantasy contest license in any case where a violation of this

chapter has been shown by a preponderance of the evidence.

(2) The board may revoke a fantasy contest license if

the board finds that facts not known by the board at the time

the board considered the application indicate that such

license should not have been issued.

(b) Administrative penalties.--

(1) In addition to suspension or revocation of a fantasy

contest license, the board may impose administrative

penalties on a licensed operator for violations of this

chapter not to exceed $5,000 for each violation.

(2) A violation of this chapter that is determined to be

an offense of a continuing nature shall be deemed to be a

20170SB0524PN0537 - 29 -

separate offense on each event or day during which the

violation occurs, except that the total administrative

penalty for an offense of a continuing nature may not exceed

$25,000.

(3) The licensed operator shall have the right to appeal

administrative penalties in accordance with 2 Pa.C.S. Chs. 5

Subch. A (relating to practice and procedure of Commonwealth

agencies) and 7 Subch. A (relating to judicial review of

Commonwealth agency action).

(4) Penalties imposed under this subsection shall be

deposited into the General Fund.

(1) In addition to the provisions of this section, a

person who knowingly violates a provision of this chapter

shall be liable for a civil penalty of not more than $1,000

for each such violation.

(2) The civil penalty shall be recovered in a civil

action brought by the board and shall be paid into the

General Fund.

SUBCHAPTER D

FISCAL PROVISIONS

Sec.

331. Fantasy contest tax.

332. Licensed operator deposits.

333. Responsibility and authority of department.

§ 331. Fantasy contest tax.

(a) Imposition.--Each licensed operator shall report to the

department and pay from its quarterly fantasy contest adjusted

revenues, on a form and in the manner prescribed by the

department, a tax of 25% of its quarterly fantasy contest

20170SB0524PN0537 - 30 -

adjusted revenues.

(b) Deposits and distributions.--

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

payable to the department on a quarterly basis and shall be

based upon quarterly fantasy contest adjusted revenue derived

during the previous quarter.

(2) All funds owed to the Commonwealth under this

section shall be held in trust for the Commonwealth by the

licensed operator until the funds are paid to the department.

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

deposited into the State Lottery Fund.

(1) A licensed operator who fails to timely remit to the

department amounts required under this section shall be

liable, in addition to any liability imposed elsewhere in

this chapter, to a penalty of 5% per month up to a maximum of

25% of the amounts ultimately found to be due, to be

recovered by the department.

(2) Penalties imposed under this subsection shall be

deposited in the General Fund.

§ 332. Licensed operator deposits.

(a) Accounts established.--The State Treasurer shall

establish within the State Treasury an account for each licensed

operator for the deposit of sums required under subsection (b)

to:

(1) recover costs or expenses incurred by the board and

the department in carrying out their powers and duties under

this chapter based upon a budget submitted by the board and

the department under subsection (c); and

(2) repay any loans made by the General Fund to the

20170SB0524PN0537 - 31 -

board or the department in connection with carrying out its

powers and duties under this chapter.

(b) Deposits.--

(1) The department shall determine the appropriate

assessment amount for each licensed operator, which shall be

a percentage assessed on the licensed operator's fantasy

contest adjusted revenues. Each licensed operator shall

deposit funds into its account on a quarterly basis.

(2) The percentage assessed shall not exceed an amount

necessary to:

(i) recover costs or expenses incurred by the board

and the department in carrying out their powers and

duties under this chapter based on a budget submitted by

the board and the department under subsection (c); and

(ii) repay any loans made from the General Fund to

the board in connection with carrying out its powers and

duties under this chapter.

(1) The board and the department shall prepare and

annually submit to the chairperson and minority chairperson

of the Appropriations Committee of the Senate and the

chairperson and minority chairperson of the Appropriations

Committee of the House of Representatives an itemized budget

consisting of amounts to be appropriated out of the accounts

established under this section necessary to administer this

chapter.

(2) As soon as practicable after submitting copies of

the itemized budget, the board and the department shall

jointly prepare and submit to the chairpersons and minority

chairpersons of the committees analyses of and make

20170SB0524PN0537 - 32 -

recommendations regarding the itemized budget.

(d) Appropriation.--Costs and expenses from accounts

established under subsection (a) shall only be disbursed upon

appropriation by the General Assembly.

(e) Penalty.--

(1) A licensed operator who fails to timely remit to the

department amounts required under this section shall be

liable, in addition to any liability imposed elsewhere in

this chapter, to a penalty of 5% per month up to a maximum of

25% of the amounts ultimately found to be due, to be

recovered by the department.

(2) Penalties imposed under this subsection shall be

deposited into the General Fund.

§ 333. Responsibility and authority of department.

(a) General rule.--The department may administer and collect

taxes imposed under section 331 (relating to fantasy contest

tax) and interest imposed under section 806 of the act of April

9, 1929 (P.L.343, No.176), known as The Fiscal Code, and

promulgate and enforce rules and regulations to carry out its

prescribed duties in accordance with sections 331 and 332

(relating to licensed operator deposits), including the

collection of taxes, penalties, assessments and interest.

(b) Procedure.--For purposes of implementing sections 331

and 332, the department may promulgate regulations in the same

manner in which the board is authorized as provided in section

312 (relating to temporary regulations).

SUBCHAPTER E

MISCELLANEOUS PROVISIONS

Sec.

341. Applicability of other statutes.

20170SB0524PN0537 - 33 -

342. Licensed gaming entities.

343. Funding.

§ 341. Applicability of other statutes.

(a) Unlawful gambling.--The provisions of 18 Pa.C.S. § 5513

(relating to gambling devices, gambling, etc.) shall not apply

to a fantasy contest conducted in accordance with this chapter.

(b) Pool selling and bookmaking.--The provisions of 18

Pa.C.S. § 5514 (relating to pool selling and bookmaking) shall

not apply to a fantasy contest conducted in accordance with this

chapter.

(relating to lotteries, etc.) shall not apply to a fantasy

contest conducted in accordance with this chapter.

(d) State Lottery Law.--This chapter shall not apply to a

fantasy contest or similar product authorized under the act of

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

Law, and authorized solely by the department and the Division of

the State Lottery.

§ 342. Licensed gaming entities.

(a) Scope.--This section shall apply to a licensed gaming

entity that holds a fantasy contest license.

(b) Applicability.--Nothing in this chapter shall be

construed to limit the board's general and sole regulatory

authority over the conduct of gaming or related activities under

Part II (relating to gaming), including, but not limited to, the

certification, registration and regulation of gaming service

providers and individuals and entities associated with them.

fantasy contests that are exclusive to participants who are at

least 21 years of age.

20170SB0524PN0537 - 34 -

(d) Promotional play.--For a restricted contest under

subsection (c), a licensed gaming entity may offer slot machine

or table game promotional play to a participant who is at least

21 years of age as a prize or award or for participating in a

fantasy contest conducted by the licensed gaming entity.

(e) Gaming service providers.--A licensed operator who is

not a licensed gaming entity may, at the discretion of the

board, be certificated or registered as a gaming service

provider under section 1317.2 (relating to gaming service

provider) in order to operate fantasy contests subject to the

restrictions of subsection (c) on behalf of a licensed gaming

entity.

§ 343. Funding.

(a) Appropriation.--The following amounts are appropriated:

(1) The sum of $1,250,000 is appropriated to the board

for the fiscal-year period July 1, 2016, to June 30, 2017,

for the purpose of implementing and administering the

provisions of this chapter.

(2) The sum of $500,000 is appropriated to the

department for the fiscal-year period July 1, 2016, to June

30, 2017, for the purpose of implementing and administering

the provisions of this chapter.

(b) Repayment.--The appropriations in this section shall be

considered loans from the General Fund and shall be repaid to

the General Fund quarterly through assessments on licensed

operators authorized under section 332 (relating to licensed

operator deposits) by the department. The total amounts

appropriated to the board and department under this section

shall be repaid to the General Fund no later than 10 years from

the date the board issues the first fantasy contest license.

20170SB0524PN0537 - 35 -

appropriated under subsection (a) that is unexpended,

unencumbered or uncommitted as of June 30 of the prior fiscal

year shall automatically be transferred to the General Fund.

CHAPTER 5

iLOTTERY

Sec.

501. Scope of chapter.

502. Definitions.

503. iLottery authorization.

§ 501. Scope of chapter.

This chapter relates to iLottery.

§ 502. Definitions.

As used in this chapter, the following words and phrases

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Department." The Department of Revenue of the Commonwealth.

"iLottery." A modern digital system that provides for the

distribution of lottery products through numerous channels that

include, but are not limited to, web applications, mobile

applications, mobile web, tablets and social media platforms

that allow players to interface through a portal for the purpose

of obtaining lottery products and ancillary services, such as

account management, game purchase, game play and prize

redemption.

"Internet instant game." A lottery game of chance in which,

by the use of a computer, tablet computer or other mobile

device, a player purchases a lottery play, with the result of

play being a reveal on the device of numbers, letters or symbols

indicating whether a lottery prize has been won according to an

20170SB0524PN0537 - 36 -

established methodology as provided by the lottery.

"Lottery products." Plays, shares or chances offered by the

lottery as well as lottery property that may be exchanged for

plays, shares or chances. This term shall include instant

tickets, terminal-based tickets, raffle games, Internet instant

tickets, iLottery games, play-for-fun games, lottery vouchers,

subscription services and gift cards.

"Secretary." The Secretary of Revenue of the Commonwealth.

"Subscription services." A payment, advance payment or

promise of payment for multiple lottery products over a

specified period of time, which shall include payments through

iLottery.

§ 503. iLottery authorization.

(a) Authority.--Notwithstanding any provision of law to the

contrary, the department shall have the authority to operate

iLottery and Internet instant games.

(b) Temporary regulatory authority.--The following apply:

(1) In order to facilitate the prompt implementation of

iLottery products or new sales methods of existing lottery

products over the Internet, regulations promulgated by the

secretary shall be deemed temporary regulations which shall

expire not later than two years following the publication of

the temporary regulation. The secretary may promulgate

temporary regulations not subject to:

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

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

Commonwealth Documents Law.

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

known as the Regulatory Review Act.

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

20170SB0524PN0537 - 37 -

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

Commonwealth Attorneys Act.

(2) Except for temporary regulations as proscribed

above, the secretary's authority to adopt temporary

regulations under subsection (a) shall expire two years after

the effective date of this section. Regulations adopted after

this period shall be promulgated as provided by law.

provision of law to the contrary and in order to facilitate the

prompt implementation of iLottery in this Commonwealth, initial

contracts entered into by the department for iLottery and

related gaming systems, including any necessary hardware,

software, licenses or related services shall not be subject to

the provisions of 62 Pa.C.S. (relating to procurement).

Contracts entered into under this authority shall not exceed

five years.

(d) Player identifiable information.--With the exception of

certain information released by the department to notify the

public of the identity of a prize recipient or to perform any

other obligation of the lottery under law or regulation related

to the payment of lottery prizes, personally identifying

information obtained by the department as a result of a player's

purchase of lottery products or the claim of a lottery prize,

such as name, address, telephone number or player financial

information, shall be considered confidential and otherwise

exempt from disclosure whether retained by the department, any

agent of the department or a lottery retailer. Proprietary

information shall include any research or studies conducted by

the lottery or a lottery vendor that utilizes proprietary

information obtained under this section.

20170SB0524PN0537 - 38 -

(e) Lottery proprietary information.--Any information

obtained by the department as a result of a player's purchase of

lottery products or entering a lottery drawing, such as

aggregate statistical data which may include play history or

player tendencies shall be considered proprietary information of

the department and otherwise exempt from disclosure whether

retained by the department, any agent of the lottery or a

lottery retailer. Proprietary information shall include any

research or studies conducted by the lottery or a lottery vendor

that utilizes proprietary information obtained under this

section.

(f) Revenues.--Notwithstanding any provision of law to the

contrary, all revenues accruing from the sale of lottery

products under this chapter shall be dedicated to and deposited

in the State Lottery Fund as provided for in section 311 of the

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

Lottery Law. The revenues shall be apportioned as provided for

in section 303(a)(11) of the State Lottery Law. For fiscal years

beginning after June 30, 2017, the apportionment shall not be

subject to the dedicated minimum amount as provided for in

section 303(a)(11)(iv) of the State Lottery Law.

Section 2. Section 1102 of Title 4 is amended by adding

paragraphs to read:

§ 1102. Legislative intent.

The General Assembly recognizes the following public policy

purposes and declares that the following objectives of the

Commonwealth are to be served by this part:

* * *

(12.1) The continued growth and success of the

commercial gaming industry in this Commonwealth is dependent

20170SB0524PN0537 - 39 -

upon a regulatory environment which promotes and fosters

technological advances and encourages the development and

delivery of innovative gaming products.

(12.2) It is also the intent of the General Assembly to

ensure the sustainability and competitiveness of the

commercial gaming industry in this Commonwealth by

authorizing interactive gaming, the operation of multistate

wide-area progressive slot machines, skill and hybrid slot

machines.

* * *

Section 3. The definitions of "associated equipment," "cash

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

"commission" or "commissions," "conduct of gaming," "contest,"

"counterfeit chip," "fully automated electronic gaming table,"

"gaming employee," "gaming school," "gaming service provider,"

"key employee," "licensed facility," "licensed racing entity,"

"manufacturer," "manufacturer license," "player," "progressive

payout," "progressive system," "Race Horse Industry Reform Act,"

"slot machine," "supplier," "supplier license" and "table game

device" in section 1103 of Title 4 are amended and the section

is amended by adding definitions to read:

§ 1103. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Airport authority." The governing body of a municipal

authority organized and incorporated to oversee the operations

of a qualified airport under 53 Pa.C.S. Ch. 56 (relating to

municipal authorities) or the governing body of a city of the

20170SB0524PN0537 - 40 -

first class, which regulates the use and control of a qualified

airport.

"Airport gaming area." A location or locations within a

qualified airport approved for the conduct of authorized

interactive games through the use of multi-use computing devices

by eligible passengers as approved by the airport authority or,

in the case of a qualified airport located in a city of the

first class, as approved by the governing body of the city of

the first class and the Pennsylvania Gaming Control Board.

* * *

"Associated equipment." Any equipment or mechanical,

electromechanical or electronic contrivance, component or

machine used in connection with slot machines or table games,

including linking devices which connect to progressive slot

machines and multistate wide-area progressive slot machines or

slot [machines, replacement] machine replacement parts,

equipment which affects the proper reporting and counting of

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

interactive gaming revenue, computerized systems for controlling

and monitoring slot machines [or], table games or interactive

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

computer to which all slot machines communicate [and], devices

for weighing or counting money[.] and interactive gaming devices

and associated equipment necessary for the operation of

interactive games as approved by the Pennsylvania Gaming Control

Board. The term shall not include count room equipment.

* * *

"Authorized interactive game." An interactive game approved

by regulation of the Pennsylvania Gaming Control Board to be

suitable for interactive gaming offered by an interactive gaming

20170SB0524PN0537 - 41 -

certificate holder or other persons on behalf of a slot machine

licensee in accordance with Chapter 13B (relating to interactive

gaming). The term shall include any interactive game approved by

regulation of the Pennsylvania Gaming Control Board to be

suitable for interactive gaming through the use of a multi-use

computing device.

* * *

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

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

(1) Chips or tokens.

(2) Travelers checks.

(3) Foreign currency and coin.

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

(5) Personal checks or drafts.

(6) A negotiable instrument applied against credit

extended by a certificate holder, an interactive gaming

certificate holder, a holder of an interactive gaming license

or a financial institution.

(7) Any other instrument or representation of value that

the Pennsylvania Gaming Control Board deems a cash

equivalent.

* * *

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

licensee or the Commonwealth while operating or playing a slot

machine [or], table game[,] or authorized interactive game,

including causing, aiding, abetting or conspiring with another

person to do so. The term shall also mean to alter or causing,

aiding, abetting or conspiring with another person to alter the

elements of chance, method of selection or criteria which

determine:

20170SB0524PN0537 - 42 -

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

or authorized interactive game.

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

game [or], table game or authorized interactive game.

(3) The value of a wagering instrument.

(4) The value of a wagering credit.

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

device or associated equipment or interactive gaming device or

associated equipment for maintenance or repair with the approval

of a slot machine licensee.

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

hardware used or possessed with the intent to be used to cheat

during the operation or play of any slot machine [or], table

game or authorized interactive game. The term shall also include

any device used to alter a slot machine [or], a table game

device or associated equipment, an authorized interactive game

or interactive gaming device or associated equipment without the

slot machine licensee's approval.

* * *

["Commission" or "commissions."] "Commission." The State

Horse Racing Commission [or the State Harness Racing Commission,

or both as the context may require.] as defined in 3 Pa.C.S. §

9301 (relating to definitions).

* * *

"Concession operator." A person engaged in the sale or

offering for sale of consumer goods or services to the public at

a qualified airport, or authorized to conduct other commercial

activities related to passenger services at a qualified airport,

in accordance with the terms and conditions of an agreement or

contract with an airport authority, government entity or other

20170SB0524PN0537 - 43 -

person.

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

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

under this part, as authorized and approved by the Pennsylvania

Gaming Control Board. The term shall include the licensed

placement, operation and play of authorized interactive games

through the use of multi-use computing devices at a qualified

airport, as authorized and approved by the Pennsylvania Gaming

Control Board.

"Contest." A slot machine, table game or authorized

interactive game competition among players for cash, cash

equivalents or prizes.

* * *

"Counterfeit chip." Any object or thing that is:

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

a certificate holder's licensed facility and which was not

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

(2) presented to a certificate holder for redemption if

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

(3) used or intended to be used to play an authorized

interactive game which was not approved by the interactive

gaming certificate holder for such use; or

(4) presented during play of an authorized interactive

game for redemption if the object or thing was not issued by

the interactive gaming certificate holder or other person on

behalf of an interactive gaming certificate holder.

* * *

"Eligible passenger" or "passenger." An individual 21 years

of age or older who has cleared security check points with a

valid airline boarding pass for travel from one destination to

20170SB0524PN0537 - 44 -

another by airplane.

* * *

"Fully automated electronic gaming table." An electronic

gaming table determined by the Pennsylvania Gaming Control Board

to be playable or operable as a table game without the

assistance or participation of a person acting on behalf of a

certificate holder. The term shall include a multi-use computing

device which, through the use of digital, electronic or other

communications technology, is capable of simulating a table

game.

* * *

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

including, but not limited to:

(1) Cashiers.

(2) Change personnel.

(3) Count room personnel.

(4) Slot attendants.

(5) Hosts or other individuals authorized to extend

complimentary services, including employees performing

functions similar to those performed by a gaming junket

representative.

(6) Machine mechanics, computer machine technicians or

table game device technicians.

(7) Security personnel.

(8) Surveillance personnel.

(9) Promotional play supervisors, credit supervisors,

pit supervisors, cashier supervisors, shift supervisors,

table game managers and assistant managers and other

supervisors and managers, except for those specifically

identified in this part as key employees.

20170SB0524PN0537 - 45 -

(10) Boxmen.

(11) Dealers or croupiers.

(12) Floormen.

(13) Personnel authorized to issue promotional play.

(14) Personnel authorized to issue credit.

The term shall include employees of a person holding a

supplier's license whose duties are directly involved with the

repair or distribution of slot machines, table game devices or

associated equipment or interactive gaming devices or associated

equipment sold or provided to a licensed facility within this

Commonwealth as determined by the Pennsylvania Gaming Control

Board. The term shall further include employees of a person

authorized by the board to supply goods and services related to

interactive gaming or any subcontractor or an employee of a

subcontractor that supplies interactive gaming devices,

including multi-use computing devices, or associated equipment

to a holder of an interactive gaming certificate or interactive

gaming license. The term does not include bartenders, cocktail

servers or other persons engaged solely in preparing or serving

food or beverages, clerical or secretarial personnel, parking

attendants, janitorial, stage, sound and light technicians and

other nongaming personnel as determined by the board.

"Gaming floor." Any portion of a licensed facility where

slot machines or table games have been installed for use or

play.

* * *

"Gaming-related restricted area." Any room or area of a

licensed facility and which is specifically designated by the

Pennsylvania Gaming Control Board as restricted or by the slot

machine licensee as restricted in its board-approved internal

20170SB0524PN0537 - 46 -

controls.

"Gaming school." Any educational institution approved by the

Department of Education as an accredited college or university,

community college, Pennsylvania private licensed school or its

equivalent and whose curriculum guidelines are approved by the

Department of Labor and Industry to provide education and job

training related to employment opportunities associated with

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

slot machine, table game device and associated equipment

maintenance and repair and interactive gaming devices and

associated equipment maintenance and repair.

"Gaming service provider." A person that is not required to

be licensed as a manufacturer, supplier, management company or

gaming junket enterprise under this part and:

(1) provides goods or services, including, but not

limited to, count room equipment, to a slot machine licensee

or an applicant for a slot machine license for use in the

operation of a licensed facility; [or] and

(2) [provides goods or services at a licensed facility.]

requires access to the gaming floor or a gaming-related

restricted area.

"Gross interactive gaming revenue." The total of all cash or

cash equivalent wagers paid by registered players to an

interactive gaming certificate holder in consideration for the

play of authorized interactive games, minus:

(1) The total of cash or cash equivalents paid out to

registered players as winnings.

(2) The cash equivalent value of any personal property

or other noncash items or things of value included in a

drawing, contest or tournament and distributed to registered

20170SB0524PN0537 - 47 -

players as a result of playing authorized interactive games.

(3) Any administrative fee, operations fee or tax paid

to another state or jurisdiction pursuant to an interactive

gaming reciprocal agreement.

Amounts deposited with an interactive gaming certificate holder

for purposes of interactive gaming and amounts taken in

fraudulent acts perpetrated against an interactive gaming

certificate holder for which the interactive gaming certificate

holder is not reimbursed may not be considered to have been paid

to the interactive gaming certificate holder for purposes of

calculating gross interactive gaming revenue.

* * *

"Hybrid slot machine." A slot machine in which a combination

of the skill of the player and elements of chance affects the

outcome of the game.

* * *

"Interactive game." Any gambling game offered through the

use of communications technology that allows a person utilizing

money, checks, electronic checks, electronic transfers of money,

credit cards or any other instrumentality to transmit electronic

information to assist in the placement of a bet or wager and

corresponding information related to the display of the game,

game outcomes or other similar information. The term shall not

include:

(1) A lottery game or Internet instant game as defined

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

State Lottery Law.

(2) Nongambling games that do not otherwise require a

license under the laws of this Commonwealth.

For the purposes of this definition, the term "communications

20170SB0524PN0537 - 48 -

technology" shall mean any method used and the components

employed to facilitate the transmission and receipt of

information, including transmission and reception by systems

using wire, wireless, cable, radio, microwave, light, fiber

optics, satellite or computer data networks, including the

Internet and intranets, as approved by the board.

"Interactive gaming." The placing of bets or wagers with an

interactive gaming certificate holder or interactive gaming

licensee located in this Commonwealth using a computer network

of both Federal and non-Federal interoperable packet switched

data networks through which an interactive gaming certificate

holder may offer authorized interactive games to registered

players. The term shall include the placing of bets or wagers

through the use of a multi-use computing device.

"Interactive gaming account." The formal, electronic system

implemented by an interactive gaming certificate holder to

record the balance of a registered player's debits, credits and

other activity related to interactive gaming.

"Interactive gaming account agreement." An agreement entered

into between an interactive gaming certificate holder or other

person on behalf of an interactive gaming certificate holder and

an individual which governs the terms and conditions of the

individual's interactive gaming account and the use of the

Internet for purposes of placing bets or wagers on authorized

interactive games operated by an interactive gaming certificate

holder or other person on behalf of an interactive gaming

certificate holder.

"Interactive gaming agreement." An agreement entered into by

or between an interactive gaming certificate holder and an

interactive gaming operator related to the offering or operation

20170SB0524PN0537 - 49 -

of interactive gaming or an interactive gaming system on behalf

of an interactive gaming certificate holder. The term shall

include an interactive gaming agreement entered into by or

between an interactive gaming certificate holder and an

interactive gaming operator for the conduct of interactive

gaming through the use of multi-use computing devices at a

qualified airport in accordance with this part.

"Interactive gaming certificate." The authorization issued

to a slot machine licensee by the Pennsylvania Gaming Control

Board authorizing the operation and conduct of interactive

gaming by a slot machine licensee or other person on behalf of a

slot machine licensee in accordance with Chapter 13B (relating

to interactive gaming).

"Interactive gaming certificate holder." A slot machine

licensee that has been granted authorization by the Pennsylvania

Gaming Control Board to operate authorized interactive games in

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

"Interactive gaming device." All hardware and software and

other technology, equipment or device of any kind as determined

by the Pennsylvania Gaming Control Board to be necessary for the

conduct of authorized interactive games.

"Interactive gaming license." A license issued to a person

by the Pennsylvania Gaming Control Board under Chapter 13B

(relating to interactive gaming).

"Interactive gaming licensee." A person who has been issued

a license to act as an interactive gaming operator under Chapter

13B (relating to interactive gaming) .

"Interactive gaming operator." A person, including an

affiliate of a slot machine licensee, licensed by the

Pennsylvania Gaming Control Board to operate interactive gaming

20170SB0524PN0537 - 50 -

or an interactive gaming system on behalf of an interactive

gaming certificate holder.

"Interactive gaming platform." The combination of hardware

and software or other technology designed and used to manage,

conduct and record interactive games and the bets or wagers

associated with interactive games, as approved by the

Pennsylvania Gaming Control Board. The term shall include any

emerging or new technology deployed to advance the conduct and

operation of interactive gaming, as approved through regulation

by the Pennsylvania Gaming Control Board.

"Interactive gaming reciprocal agreement." An agreement

negotiated by the Pennsylvania Gaming Control Board on behalf of

the Commonwealth with the authorized agency of one or more

states or jurisdictions where interactive gaming is legally

authorized which will permit the conduct of interactive gaming

between interactive gaming certificate holders in this

Commonwealth and gaming entities in the states or jurisdictions

that are parties to the agreement.

"Interactive gaming restricted area." Any room or area, as

approved by the Pennsylvania Gaming Control Board, used by an

interactive gaming certificate holder or interactive gaming

license holder to manage, control and operate interactive

gaming, including, where approved by the board, redundancy

facilities.

"Interactive gaming skin or skins." The portal or portals to

an interactive gaming platform or Internet website through which

authorized interactive games are made available to registered

players by an interactive gaming certificate holder or other

person on behalf of an interactive gaming certificate holder in

this Commonwealth or players in any other state or jurisdiction

20170SB0524PN0537 - 51 -

in which an interactive gaming reciprocal agreement has been

entered.

"Interactive gaming system." All hardware, software and

communications that comprise a type of server-based gaming

system for the purpose of offering authorized interactive games.

* * *

"Internet website." The interactive gaming skin or skins or

Internet portal or portals through which an interactive gaming

certificate holder or other person makes authorized interactive

games available for play.

* * *

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

or department head capacity and who is empowered to make

discretionary decisions that regulate slot machine or table game

operations or interactive gaming operations, including the

general manager and assistant manager of the licensed facility,

director of slot operations, director of table game operations,

director of interactive gaming, director of cage and/or credit

operations, director of surveillance, director of marketing,

director of management information systems, director of

interactive gaming system programs or other similar job

classifications associated with interactive gaming, persons who

manage, control or administer interactive gaming or the bets and

wagers associated with authorized interactive games, director of

security, comptroller and any employee who is not otherwise

designated as a gaming employee and who supervises the

operations of these departments or to whom these department

directors or department heads report and such other positions

not otherwise designated or defined under this part which the

Pennsylvania Gaming Control Board shall determine based on

20170SB0524PN0537 - 52 -

detailed analyses of job descriptions as provided in the

internal controls of the licensee as approved by the

Pennsylvania Gaming Control Board. All other gaming employees

unless otherwise designated by the Pennsylvania Gaming Control

Board shall be classified as non-key employees.

* * *

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

which a licensed gaming entity is authorized to place and

operate slot machines and, if authorized by the Pennsylvania

Gaming Control Board under Chapter 13A (relating to table

games), to conduct table games and, if authorized under Chapter

13B (relating to interactive gaming), to conduct interactive

gaming. The term includes any:

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

licensee was previously authorized pursuant to section

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

operate slot machines prior to the effective date of this

paragraph;

(2) board-approved interim facility or temporary

facility; and

(3) area of a hotel which the Pennsylvania Gaming

Control Board determines is suitable to conduct table games.

The term shall not include a redundancy facility or an

interactive gaming restricted area which is not located on the

premises of a licensed facility as approved by the Pennsylvania

Gaming Control Board and which is maintained and operated by an

interactive gaming certificate holder in connection with

interactive gaming.

* * *

"Licensed racing entity." Any legal entity that has obtained

20170SB0524PN0537 - 53 -

a license to conduct live thoroughbred or harness horse race

meetings respectively with pari-mutuel wagering from [either]

the State Horse Racing Commission [or the State Harness Racing

Commission] pursuant to [the act of December 17, 1981 (P.L.435,

No.135), known as] the Race Horse Industry Reform Act.

"Manufacturer." A person who manufactures, builds, rebuilds,

fabricates, assembles, produces, programs, designs or otherwise

makes modifications to any slot machine, table game device or

associated equipment or authorized interactive games for use or

play of slot machines [or], table games or authorized

interactive games in this Commonwealth for gaming purposes. The

term shall not include a person who manufactures, builds,

rebuilds, fabricates, assembles, produces, programs, designs or

otherwise makes modifications to multi-use computing devices

used in connection with the conduct of interactive gaming at a

qualified airport.

"Manufacturer license." A license issued by the Pennsylvania

Gaming Control Board authorizing a manufacturer to manufacture

or produce slot machines, table game devices or associated

equipment, interactive gaming devices or associated equipment

for use in this Commonwealth for gaming purposes.

* * *

"Multi-use computing device." As follows:

(1) A computing device, including, but not limited to, a

tablet computer, that:

(i) Allows a player to access an authorized

interactive game.

(ii) Is located and accessible to eligible

passengers only in an airport gaming area.

(iii) Communicates with a server that is in a

20170SB0524PN0537 - 54 -

location approved by the Pennsylvania Gaming Control

Board.

(iv) Is approved by the Pennsylvania Gaming Control

Board.

(v) Has the capability of being linked to and

monitored by the department's central control computer

system, as applicable for any particular interactive

game, in accordance with section 1323 (relating to

central control computer system).

(vi) Offers a player additional functions which

shall include Internet browsing, the capability of

checking flight status and ordering food or beverages.

(2) The term shall not include any tablet or computing

device that restricts, prohibits or is incapable of providing

access to interactive gaming, interactive gaming skins or

interactive gaming platforms.

"Multistate wide-area progressive slot machine system." The

linking of slot machines located in this Commonwealth with slot

machines located in one or more states or jurisdictions in which

the Pennsylvania Gaming Control Board has entered into an

agreement authorizing the conduct of a multistate wide-area

progressive slot machine system by slot machine licensees in

this Commonwealth with gaming entities in such other state or

jurisdiction, as approved by the Pennsylvania Gaming Control

Board.

* * *

"Nongaming service provider." A person that is not a gaming

service provider or required to be licensed as a manufacturer,

supplier or management company or gaming junket enterprise under

this part and that provides goods or services:

20170SB0524PN0537 - 55 -

(1) to a slot machine licensee or applicant for a slot

machine license for use in the operation of a licensed

facility; and

(2) that does not require access to the gaming floor or

a gaming-related restricted area.

* * *

"Player." An individual wagering cash, a cash equivalent or

other thing of value in the play or operation of a slot machine

[or], an authorized interactive game or a table game, including

during a contest or tournament, the play or operation of which

may deliver or entitle the individual playing or operating the

slot machine [or], authorized interactive game or table game to

receive cash, a cash equivalent or other thing of value from

another player or a slot machine licensee.

* * *

"Progressive payout." A slot machine wager payout that

increases in a monetary amount based on the amounts wagered in a

progressive system, including a multistate wide-area progressive

slot machine system.

"Progressive system." A computerized system linking slot

machines in one or more licensed facilities within this

Commonwealth and offering one or more common progressive payouts

based on the amounts wagered. The term shall include the linking

of slot machines in a licensed facility in this Commonwealth

with a multistate wide-area progressive system operated by

gaming entities in one or more states or jurisdictions as

approved by the Pennsylvania Gaming Control Board.

* * *

"Qualified airport." A publicly owned commercial service

airport that is designated by the Federal Government as an

20170SB0524PN0537 - 56 -

international airport and is located in either a city of the

first class or a county of the second class.

"Race Horse Industry Reform Act." [The act of December 17,

1981 (P.L.435, No.135), known as the Race Horse Industry Reform

Act.] 3 Pa.C.S. Ch. 93 (relating to race horse industry reform).

* * *

"Redundancy facilities." Any and all rooms or areas used by

a slot machine licensee for emergency backup, redundancy or

secondary operations attendant to interactive gaming as approved

by the Pennsylvania Gaming Control Board.

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

interactive gaming account agreement with an interactive gaming

certificate holder.

* * *

"Skill." The knowledge, dexterity, adroitness, acumen or

other mental skill of an individual.

"Skill slot machine." A slot machine in which the skill of

the player, rather than the elements of chance, is the

predominant factor in affecting the outcome of the game.

"Slot machine." Includes:

(1) Any mechanical, electrical or computerized

contrivance, terminal, machine or other device approved by

the Pennsylvania Gaming Control Board which, upon insertion

of a coin, bill, ticket, token or similar object therein or

upon payment of any consideration whatsoever, including the

use of any electronic payment system except a credit card or

debit card, is available to play or operate, the play or

operation of which, whether by reason of skill or application

of the element of chance or both, may deliver or entitle the

person or persons playing or operating the contrivance,

20170SB0524PN0537 - 57 -

terminal, machine or other device to receive cash, billets,

tickets, tokens or electronic credits to be exchanged for

cash or to receive merchandise or anything of value

whatsoever, whether the payoff is made automatically from the

machine or manually. A slot machine:

[(1)] (i) May utilize spinning reels or video

displays or both.

[(2)] (ii) May or may not dispense coins, tickets or

tokens to winning patrons.

[(3)] (iii) May use an electronic credit system for

receiving wagers and making payouts.

(2) The term shall include [associated equipment] all of

the following:

(i) Associated equipment necessary to conduct the

operation of the contrivance, terminal, machine or other

device.

(ii) A skill slot machine, hybrid slot machine and

the devices or associated equipment necessary to conduct

the operation of a skill slot machine or hybrid slot

machine.

(iii) A multistate wide-area progressive slot

machine and devices and associated equipment as defined

by the board through regulations.

(iv) A multi-use computing device which is capable

of simulating, either digitally or electronically, a slot

machine.

* * *

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

provides, distributes or services any slot machine, table game

device or associated equipment, or interactive gaming device or

20170SB0524PN0537 - 58 -

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

table games or interactive games in this Commonwealth. The term

shall include a person that sells, leases, offers or otherwise

provides, distributes or services any multi-use computing device

as approved by the Pennsylvania Gaming Control Board.

"Supplier license." A license issued by the Pennsylvania

Gaming Control Board authorizing a supplier to provide products

or services related to slot machines, table game devices or

associated equipment, interactive gaming devices, including any

multi-use computing devices or associated equipment, to slot

machine licensees for use in this Commonwealth for gaming

purposes.

* * *

"Table game device." Includes gaming tables, cards, dice,

chips, shufflers, tiles, dominoes, wheels[, drop boxes] or any

mechanical, electrical or computerized contrivance, terminal,

machine or other device, apparatus, equipment or supplies

approved by the Pennsylvania Gaming Control Board and used to

conduct a table game or that is capable, through the use of

digital, electronic or other communications technology, of

simulating play of a table game.

* * *

Section 4. Section 1202(a)(1) and (b)(20) and (23) of Title

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

to read:

§ 1202. General and specific powers.

(a) General powers.--

(1) The board shall have general and sole regulatory

authority over the conduct of gaming [or] and related

activities as described in this part. The board shall ensure

20170SB0524PN0537 - 59 -

the integrity of the acquisition and operation of slot

machines, table games, table game devices and associated

equipment and authorized interactive games and interactive

gaming devices and associated equipment and shall have sole

regulatory authority over every aspect of the authorization,

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

interactive gaming devices and associated equipment and the

implementation and regulation of airport gaming.

* * *

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

power and duty:

* * *

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

condition or deny an interactive gaming certificate or an

interactive gaming license in accordance with Chapter 13B

(relating to interactive gaming).

* * *

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

license and permit applicants, to determine at its discretion

the suitability of any person who furnishes or seeks to

furnish to a slot machine licensee directly or indirectly any

goods, services or property related to slot machines, table

games, table game devices or associated equipment,

interactive games and interactive gaming devices and

associated equipment or through any arrangements under which

that person receives payment based directly or indirectly on

earnings, profits or receipts from the slot machines, table

games, table game devices and associated equipment,

interactive games, interactive gaming devices and associated

equipment. The board may require any such person to comply

20170SB0524PN0537 - 60 -

with the requirements of this part and the regulations of the

board and may prohibit the person from furnishing the goods,

services or property.

* * *

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

issue or renew a license, certificate, registration or permit

unless it is satisfied that the applicant has demonstrated by

clear and convincing evidence that the applicant is a person

of good character, honesty and integrity and is a person

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

habits and associations do not pose a threat to the public

interest or the effective regulation and control of slot

machine [or] operations, table game operations or interactive

gaming operations, or create or enhance the danger of

unsuitable, unfair or illegal practices, methods and

activities in the conduct of slot machine or table game

operations, interactive gaming operations or the carrying on

of the business and financial arrangements incidental

thereto.

* * *

(27.2) Within six months of the effective date of this

section, to publish on the board's Internet website a

complete list of all slot machine licensees who filed a

petition seeking authorization to conduct interactive gaming

and the status of each petition or interactive gaming

certificate.

* * *

(35) To review detailed site plans identifying the

interactive gaming restricted area or room where a slot

machine licensee proposes to manage, administer or control

20170SB0524PN0537 - 61 -

interactive gaming operations to determine the adequacy of

the proposed internal and external security and proposed

surveillance measures.

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

interactive gaming certificate to provide on a quarterly

basis the following information with respect to interactive

gaming:

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

any payment, remuneration or other benefit or thing of

value has been made or conferred for professional

services, including, but not limited to, interactive

gaming system operations or management, legal, consulting

and lobbying services;

(ii) the amount or value of the payments,

remuneration, benefit or thing of value;

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

benefit or thing of value was submitted; and

(iv) the reason or purpose for the procurement of

the services.

(37) To review and approve detailed site and

architectural plans identifying the area of a licensed

facility where a slot machine licensee proposes to place and

make multistate wide-area progressive slot machines, skill

slot machines or hybrid slot machines available for play in

order to determine the adequacy of proposed internal and

external controls, security and proposed surveillance

measures.

Section 5. Sections 1204 and 1206(f)(1) of Title 4 are

amended to read:

§ 1204. Licensed gaming entity application appeals from board.

20170SB0524PN0537 - 62 -

The Supreme Court of Pennsylvania shall be vested with

exclusive appellate jurisdiction to consider appeals of any

final order, determination or decision of the board involving

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

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

operation certificate[.] or the award, denial or conditioning of

an interactive gaming certificate or an interactive gaming

license. Notwithstanding the provisions of 2 Pa.C.S. Ch. 7

Subch. A (relating to judicial review of Commonwealth agency

action) and 42 Pa.C.S. § 763 (relating to direct appeals from

government agencies), the Supreme Court shall affirm all final

orders, determinations or decisions of the board involving the

approval, issuance, denial or conditioning of a slot machine

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

operation certificate or the award, denial or conditioning of an

interactive gaming certificate or an interactive gaming license,

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

that the order, determination or decision of the board was

arbitrary and there was a capricious disregard of the evidence.

§ 1206. Board minutes and records.

* * *

(f) Confidentiality of information.--

(1) The following information submitted by an applicant,

permittee, certificate holder or licensee pursuant to section

1310(a) (relating to slot machine license application

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

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

interactive gaming certificate required and content of

petition) or 13B14 (relating to interactive gaming operators)

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

20170SB0524PN0537 - 63 -

background or other investigation from any source shall be

confidential and withheld from public disclosure:

(i) All information relating to character, honesty

and integrity, including family, habits, reputation,

history of criminal activity, business activities,

financial affairs and business, professional and personal

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

or otherwise obtained by the board or the bureau.

(ii) Nonpublic personal information, including home

addresses, telephone numbers and other personal contact

information, Social Security numbers, educational

records, memberships, medical records, tax returns and

declarations, actual or proposed compensation, financial

account records, creditworthiness or financial condition

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

including the holder of an interactive gaming certificate

or interactive gaming license, or the immediate family

thereof.

(iii) Information relating to proprietary

information, trade secrets, patents or exclusive

licenses, architectural and engineering plans and

information relating to competitive marketing materials

and strategies, which may include customer-identifying

information or customer prospects for services subject to

competition.

(iv) Security information, including risk prevention

plans, detection and countermeasures, location of count

rooms, location of interactive gaming restricted areas

and redundancy facilities, emergency management plans,

security and surveillance plans, equipment and usage

20170SB0524PN0537 - 64 -

protocols and theft and fraud prevention plans and

countermeasures.

(v) Information with respect to which there is a

reasonable possibility that public release or inspection

of the information would constitute an unwarranted

invasion into personal privacy of any individual as

determined by the board.

(vi) Records of an applicant or licensee not

required to be filed with the Securities and Exchange

Commission by issuers that either have securities

registered under section 12 of the Securities Exchange

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

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

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

§ 78o).

(vii) Records considered nonpublic matters or

information by the Securities and Exchange Commission as

provided by 17 CFR 200.80 (relating to commission records

and information).

(viii) Any financial information deemed confidential

by the board upon a showing of good cause by the

applicant or licensee.

* * *

Section 6. Section 1207(1), (3), (4), (5), (6), (8), (9),

(10) and (21) of Title 4 are amended and the section is amended

by adding paragraphs to read:

§ 1207. Regulatory authority of board.

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

(1) Deny, deny the renewal, revoke, condition or suspend

any license [or], permit, certificate, registration or other

20170SB0524PN0537 - 65 -

authorizations provided for in this part if the board finds

in its sole discretion that a licensee [or], permittee,

registrant or certificate holder, including any interactive

gaming operator, under this part, or its officers, employees

or agents, have furnished false or misleading information to

the board or failed to comply with the provisions of this

part or the rules and regulations of the board and that it

would be in the public interest to deny, deny the renewal,

revoke, condition or suspend the license [or], permit,

certificate, registration or other authorizations.

* * *

(3) Prescribe and require periodic financial reporting

and internal control requirements for all licensed entities,

including, in the case of interactive gaming, all interactive

gaming operators.

(4) Require that each licensed entity, including, in the

case of interactive gaming, each interactive gaming operator,

provide to the board its audited annual financial statements,

with such additional detail as the board from time to time

shall require, which information shall be submitted not later

than 90 days after the end of the licensee's fiscal year.

(5) Prescribe the procedures to be followed by slot

machine licensees for any financial event that occurs in the

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

authorized interactive games or multi-use computing devices.

(6) Prescribe criteria and conditions for the operation

of slot machine progressive systems, including multistate

wide-area progressive slot machine systems. A wide area

progressive slot system shall be collectively administered by

participating slot machine licensees in accordance with the

20170SB0524PN0537 - 66 -

terms of a written agreement executed by each participating

slot machine licensee and, in the case of a multistate wide-

area progressive slot machine system, in accordance with the

terms of an agreement executed by the slot machine licensee

and authorized gaming entities in other states or

jurisdictions as approved by the board.

(6.1) Collaborate with the appropriate gaming

authorities in other states or jurisdictions to facilitate

the establishment of multistate wide-area progressive slot

machine systems by slot machine licensees in this

Commonwealth and, if determined necessary, enter into the

necessary agreements with such other states or jurisdictions

as necessary for the operation of multistate wide-area

progressive slot machine systems by slot machine licensees in

this Commonwealth.

* * *

(7.2) Enforce prescribed hours for the operation of

authorized interactive games so that an interactive gaming

certificate holder or interactive gaming licensee may conduct

authorized interactive games on any day during the year in

order to meet the needs of registered players or to meet

competition.

(8) Require that each licensed gaming entity prohibit

persons under 21 years of age from operating or using slot

machines [or], playing table games or participating in

interactive gaming.

(9) Establish procedures for the inspection and

certification of compliance of each slot machine, table game,

table game device and associated equipment, interactive game

and interactive gaming device and associated equipment prior

20170SB0524PN0537 - 67 -

to being placed into use by a slot machine licensee.

(10) Require that no slot machine or authorized

interactive game that replicates the play of a slot machine

may be set to pay out less than the theoretical payout

percentage, which shall be no less than 85%, as specifically

approved by the board. The board shall adopt regulations that

define the theoretical payout percentage of a slot machine

game based on the total value of the jackpots expected to be

paid by a play or a slot machine game divided by the total

value of slot machine wagers expected to be made on that play

or slot machine game during the same portion of the game

cycle. In so doing, the board shall decide whether the

calculation shall include the entire cycle of a slot machine

game or any portion thereof[.], except that in the case of

skill slot machines and hybrid slot machines, the board shall

adopt regulations to define the player's win percentage based

on the relative skill of the player or the combination of

skill and the elements of chance of the game. In the case of

a multistate wide-area progressive slot machine system, the

theoretical payout percentage or a player's win percentage

shall be as set forth in the agreement, as approved by the

board.

* * *

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

licensee to conduct slot machine contests or tournaments,

table game tournaments or contests in accordance with section

13A22.1 (relating to table game tournaments) or interactive

gaming contests or tournaments and adopt regulations

governing the conduct of such tournaments and contests.

(21.1) Authorize, at its discretion, a slot machine

20170SB0524PN0537 - 68 -

licensee to place and make multistate wide-area progressive

slot machines, skill slot machines or hybrid slot machines

available for play at licensed facilities.

(21.2) Adopt and promulgate regulations to govern the

operation and placement of skill slot machines and hybrid

slot machines by slot machine licensees at licensed

facilities. In order to facilitate the operation and

placement of skill and hybrid slot machines at licensed

facilities pursuant to this paragraph, regulations

promulgated by the board shall be deemed temporary

regulations which shall expire two years after the date of

publication in the Pennsylvania Bulletin.

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

action determined necessary regarding all aspects of

interactive gaming.

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

rules of authorized interactive games, including odds,

devices and associated equipment permitted and the method of

operation of authorized interactive games and interactive

gaming devices and associated equipment.

(24) Require, as applicable, that all wagering offered

through interactive gaming display online the permissible

minimum and maximum wagers associated with each authorized

interactive game.

(25) (Reserved).

(26) Negotiate and enter into interactive gaming

reciprocal agreements on behalf of the Commonwealth to govern

the conduct of interactive gaming between interactive gaming

certificate holders in this Commonwealth and gaming entities

of other states or jurisdictions. Notwithstanding any

20170SB0524PN0537 - 69 -

provision of this part, wagers may be accepted in accordance

with this part and regulations of the board from persons in

other states or jurisdictions if the board determines that

such wagering is not inconsistent with Federal law or the law

of the state or jurisdiction, including a foreign

jurisdiction, in which the person is located, or such

wagering is conducted pursuant to an interactive gaming

reciprocal agreement to which this Commonwealth is a party

that is not inconsistent with Federal law. The board, with

the approval of the Governor, is hereby designated as the

agency of the Commonwealth with the sole power and authority

to enter into interactive gaming reciprocal agreements with

other states or jurisdictions.

(27) Enter into agreements with other states for the

operation of multistate wide-area progressive slot machine

systems.

Section 7. Section 1209(b) of Title 4 is amended to read:

§ 1209. Slot machine license fee.

* * *

(b) Term.--A slot machine license, after payment of the fee,

shall be in effect unless suspended, revoked or not renewed by

the board upon good cause consistent with the license

requirements as provided for in this part. Slot machine

licensees shall be required to update the information in their

initial applications annually, and the license of a licensee in

good standing shall be renewed every [three] five years. Nothing

in this subsection shall relieve a licensee of the affirmative

duty to notify the board of any changes relating to the status

of its license or to any other information contained in the

application materials on file with the board. As to the renewal

20170SB0524PN0537 - 70 -

of a license, except as required in subsection (f)(3), no

additional license fee pursuant to subsection (a) shall be

required.

* * *

Section 8. Section 1211 of Title 4 is amended by adding

subsections to read:

§ 1211. Reports of board.

* * *

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

(1) The annual report submitted by the board in

accordance with subsection (a) shall include information on

the conduct of interactive games as follows:

(i) Total gross interactive gaming revenue.

(ii) The number and win by type of authorized

interactive game at each licensed facility conducting

interactive gaming during the previous year.

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

collected and, where appropriate, revenue disbursed

during the previous year. The department shall

collaborate with the board to carry out the requirements

of this subparagraph.

(2) The board may require interactive gaming certificate

holders and other persons involved in the operation of

interactive gaming on behalf of a slot machine licensee to

provide information to the board to assist in the preparation

of the report.

* * *

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

after the issuance of the first interactive gaming certificate,

an annual report shall be prepared and distributed to the

20170SB0524PN0537 - 71 -

Governor and the standing committees of the General Assembly

with jurisdiction over this part on the impact of interactive

gaming on compulsive and problem gambling and gambling addiction

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

organization or entity with expertise in serving and treating

the needs of persons with compulsive gambling addictions, which

organization or entity shall be selected by the Department of

Health. The report may be prepared and distributed in

coordination with the board. Any costs associated with the

preparation and distribution of the report shall be borne by

slot machine licensees who have been authorized by the board to

conduct interactive gaming. The board shall be authorized to

assess a fee against each slot machine licensee for these

purposes.

(d.2) Additional information and annual reporting.--

(1) One year after the commencement of the operation of

skill slot machines, hybrid slot machines and the operation

of a multistate wide-area slot machine system, the report

required under subsection (a) shall include information

related to the following:

(i) The operation of skill slot machines and hybrid

slot machines.

(ii) The operation of a multistate wide-area

progressive slot machine system.

(2) Information on revenue, taxes, fees and fines, if

any, collected during the preceding calendar year and any

other information, data or recommendations related to the

operation of multistate wide-area progressive slot machines,

skill slot machines and hybrid slot machines as determined by

the board.

20170SB0524PN0537 - 72 -

(d.3) Annual report.--In addition to its duties under

subsection (d), the board shall have the continuing duty to

study and annually report to the chairperson and minority

chairperson of the Community, Economic and Recreational

Development Committee of the Senate and to the chairperson and

minority chairperson of the Gaming Oversight Committee of the

House of Representatives on developments in gaming technology

and the impact, if any, new technologies are having or will have

on the sustainability and competitiveness of the commercial

gaming industry in this Commonwealth. The report shall

specifically address the following:

(1) Awareness and growth, to the extent known, of any

unregulated commercial gaming products, such as e-Sports and

other such digital-based computer or video technology.

(2) New gaming products, if any, which have been

introduced in other jurisdictions, both foreign and domestic.

(3) Any gaming products which the board may have the

authority to authorize pursuant to its regulatory authority

under this part.

(4) Any legislative or administrative concerns regarding

traditional, new or emerging gaming technologies with

recommendations regarding resolution of such concerns.

(d.4) Time of submission and reports.--Notwithstanding any

provision of this part, all reports and studies required to be

submitted under subsections (d.1), (d.2) and (d.3) after the

effective date of this subsection shall be submitted initially

by October 1, 2017, and by October 1 of each year thereafter.

* * *

Section 9. Section 1212(e) of Title 4 is amended by adding a

paragraph to read:

20170SB0524PN0537 - 73 -

§ 1212. Diversity goals of board.

* * *

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

"professional services" means those services rendered to a slot

machine licensee which relate to a licensed facility in this

Commonwealth, including, but not limited to:

* * *

(9) Technology related to interactive gaming and

interactive gaming devices and associated equipment.

Section 10. Section 1305 of Title 4 is amended by adding a

subsection to read:

§ 1305. Category 3 slot machine license.

* * *

(d.1) Waiver of gaming area restrictions.--Upon petition of

a Category 3 slot machine licensee, the board may waive the

gaming area restrictions under subsection (a)(1) and (1.1) upon

agreement of the petitioner to pay a waiver fee equaling

$1,000,000 each year for a period of five years beginning on the

date the waiver is granted by the board. The waiver fee shall be

remitted to the department on an annual basis at the time and in

the manner determined by the department. All waiver fees

received by the department shall be deposited into the General

Fund.

* * *

Section 11. Section 1309(a.1) heading of Title 4 is amended

and the subsection is amended by adding a paragraph to read:

§ 1309. Slot machine license application.

* * *

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

* * *

20170SB0524PN0537 - 74 -

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

an applicant for a slot machine license that has an

application pending before the board to supplement its

application with all of the information required under

Chapter 13B (relating to interactive gaming) and to request

that the board consider its application for a slot machine

license, a table game operation certificate and an

interactive gaming certificate concurrently. All fees for an

interactive gaming certificate shall be paid by the applicant

in accordance with the requirements of this part.

* * *

Section 12. Sections 1317(a) and (c) and 1317.1(a), (b),

(c), (c.1), (d.1) and (e) of Title 4 are amended and the

sections are amended by adding subsections to read:

§ 1317. Supplier licenses.

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

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

manufacturer licenses) shall ensure that the supplier is

appropriately licensed under this section. A person seeking to

provide slot machines, table game devices or associated

equipment, interactive gaming devices or associated equipment or

multi-use computing devices to a slot machine licensee or an

interactive gaming licensee within this Commonwealth through a

contract with a licensed manufacturer shall apply to the board

for the appropriate supplier license.

* * *

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

approve the application and issue the applicant a supplier

license consistent with all of the following:

20170SB0524PN0537 - 75 -

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

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

shall be issued for a period of [three] five years and shall

be renewed in accordance with subsection (d). Nothing in this

paragraph shall relieve a licensee of the affirmative duty to

notify the board of any changes relating to the status of its

license or to any information contained in the application

materials on file with the board.

(2) The license shall be nontransferable.

(3) Any other condition established by the board.

* * *

(c.2) Abbreviated process for supplier.--

(1) Notwithstanding subsection (c.1)(1) or any

regulations of the board to the contrary, the board may

extend the use of the abbreviated process authorized under

subsection (c.1) to an applicant for a supplier license to

supply slot machines used in a multistate wide-area

progressive slot machine system, skill slot machines, hybrid

slot machines and devices or associated equipment used in

connection with multistate wide-area progressive slot machine

systems, skill or hybrid slot machines, interactive gaming

devices or associated equipment used in connection with

interactive gaming, including multi-use computing devices, if

the applicant holds a valid supplier license issued by the

board to supply slot machines or associated equipment or

table games or table game devices and associated equipment.

The requirements of subsection (c.1)(2) and (3) shall apply

to this subsection.

(2) An applicant for a supplier's license to supply slot

machines used in a multistate wide-area progressive system,

20170SB0524PN0537 - 76 -

skill or hybrid slot machines or associated equipment or

interactive gaming devices or associated equipment shall be

subject to the applicable provisions of this part.

* * *

§ 1317.1. Manufacturer licenses.

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

machines, table game devices and associated equipment or

interactive gaming devices and associated equipment for use in

this Commonwealth shall apply to the board for a manufacturer

license.

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

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

application fee, and shall include all of the following:

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

the applicant's affiliates, intermediaries, subsidiaries and

holding companies; the principals and key employees of each

business; and a list of employees and their positions within

each business, as well as any financial information required

by the board.

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

intermediary, subsidiary or holding company of the applicant

are not slot machine licensees.

(3) The consent to a background investigation of the

applicant, its principals and key employees or other persons

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

information necessary for the completion of the background

investigation.

(4) The details of any equivalent license granted or

denied by other jurisdictions where gaming activities as

authorized by this part are permitted and consent for the

20170SB0524PN0537 - 77 -

board to acquire copies of applications submitted or licenses

issued in connection therewith.

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

associated equipment or interactive gaming devices or

associated equipment to be manufactured or repaired.

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

appropriate.

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

approve the application and grant the applicant a manufacturer

license consistent with all of the following:

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

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

shall be issued for a period of [three] five years and shall

be renewed in accordance with subsection (d). Nothing in this

paragraph shall relieve the licensee of the affirmative duty

to notify the board of any changes relating to the status of

its license or to any other information contained in

application materials on file with the board.

(2) The license shall be nontransferable.

(3) Any other condition established by the board.

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

manufacturer license to manufacture table game devices or

associated equipment used in connection with table games is

licensed by the board under this section to manufacture slot

machines or associated equipment used in connection with slot

machines, the board may determine to use an abbreviated process

requiring only that information determined by the board to be

necessary to consider the issuance of a license to manufacture

table game devices or associated equipment used in connection

20170SB0524PN0537 - 78 -

with table games, including financial viability of the

applicant. Nothing in this section shall be construed to waive

any fees associated with obtaining a license, certificate or

permit through the normal application process. The board may

only use the abbreviated process if all of the following apply:

(1) The manufacturer license was issued by the board

within a 36-month period immediately preceding the date the

manufacturer licensee files an application to manufacture

table game devices or associated equipment.

(2) The person to whom the manufacturer license was

issued affirms there has been no material change in

circumstances relating to the license.

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

there has been no material change in circumstances relating

to the licensee that necessitates that the abbreviated

process not be used.

(c.2) Abbreviated process for manufacturer.--

(1) Notwithstanding subsection (c.1)(1) or any

regulations of the board to the contrary, the board may

extend the use of the abbreviated process authorized under

subsection (c.1) to an applicant for a manufacturer license

to manufacture multistate wide-area progressive slot

machines, skill slot machines, hybrid slot machines or

associated equipment used in connection with multistate wide-

area progressive slot machines, skill or hybrid slot machines

or interactive gaming devices or associated equipment used in

connection with interactive gaming, if the applicant holds a

valid manufacturer license issued by the board to

manufacturer slot machines or associated equipment or table

games or table game devices or associated equipment. The

20170SB0524PN0537 - 79 -

requirements of subsection (c.1)(2) and (3) shall apply to

this subsection.

(2) An applicant for a manufacturer license to

manufacture slot machines used in a multistate wide-area

progressive system, skill or hybrid slot machines or

associated equipment or interactive gaming devices or

associated equipment shall be subject to the applicable

provisions of this part.

* * *

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

manufacturer:

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

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

device or associated equipment or interactive gaming device

or associated equipment manufactured by the manufacturer,

provided the manufacturer holds the appropriate manufacturer

license.

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

supplier under section 1317 (relating to supplier licenses)

to provide slot machines or associated equipment to a slot

machine licensee within this Commonwealth, provided the

supplier is licensed to supply slot machines or associated

equipment used in connection with slot machines.

(3) A manufacturer may contract with a supplier under

section 1317 to provide table game devices or associated

equipment to a certificate holder, provided the supplier is

licensed to supply table game devices or associated equipment

used in connection with table games.

(4) A manufacturer may contract with a supplier under

section 1317 to provide slot machines used in a multistate

20170SB0524PN0537 - 80 -

wide-area progressive system, skill or hybrid slot machines

or associated equipment, interactive gaming devices or

associated equipment to a slot machine licensee, provided

that the manufacturer is licensed to manufacture slot

machines used in a multistate wide-area progressive slot

machine system, skill or hybrid slot machines or associated

equipment or interactive gaming devices or associated

equipment used in connection with interactive games.

(e) Prohibitions.--

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

devices or associated equipment or interactive gaming devices

or associated equipment for use within this Commonwealth by a

slot machine licensee unless the person has been issued the

appropriate manufacturer license under this section.

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

training equipment), no slot machine licensee may use slot

machines, table game devices or associated equipment,

authorized interactive games or interactive gaming devices or

associated equipment unless the slot machines, table game

devices or associated equipment, interactive games or

interactive gaming devices or associated equipment were

manufactured by a person that has been issued the appropriate

manufacturer license under this section.

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

apply for or be issued a license under section 1317.

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

manufacturer licenses issued or the time period to submit

applications for licensure, except as required to comply with

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

Section 13. Title 4 is amended by adding a section to read:

20170SB0524PN0537 - 81 -

§ 1317.3. Nongaming service provider.

(a) Notification required.--

(1) A slot machine licensee or applicant for a slot

machine license that contracts with or otherwise engages in

business with a nongaming service provider shall provide

notification to the board prior to providing goods or

services to the slot machine licensee or applicant for a slot

machine license.

(2) Notification under this section shall be on a form

and in a manner as determined by the board. The board may

impose a fee, not to exceed $100, that must accompany the

notification.

(b) Contents of notification.--Notification under this

section shall include:

(1) The name and business address of the nongaming

service provider.

(2) A description of the type or nature of the goods or

services to be provided.

(3) An affirmation from the slot machine licensee or

applicant for a slot machine license that the goods or

services to be provided by the nongaming service provider

will not require access to the gaming floor or a gaming-

related restricted area.

(4) An affirmation from the slot machine licensee or

applicant for a slot machine license certifying that the

licensee or applicant has performed due diligence regarding

the nongaming service provider and believes that the

nongaming service provider and its employees will not

adversely affect the public interest or integrity of gaming.

(5) Any other information that the board deems necessary

20170SB0524PN0537 - 82 -

and appropriate.

provider notification required under subsection (a) may be valid

for three years.

(d) Conditions.--A slot machine licensee or applicant for a

slot machine license that contracts or otherwise engages in

business with a nongaming service provider shall be subject to

the following conditions:

(1) The nongaming service provider or its employees

shall only provide the goods and services described in the

notification under this section.

(2) The slot machine licensee or applicant for a slot

machine license shall notify the board of any material change

in the information provided in the notification under this

section. No fee shall be required for a subsequent change

during the time for which the notification remains valid

under subsection (c).

(3) The slot machine licensee or applicant for a slot

machine license shall ensure that employees of the nongaming

service provider do not enter the gaming floor or a gaming-

related restricted area.

(4) The slot machine licensee or applicant for a slot

machine license shall report to the board an employee of a

nongaming service provider that does any of the following:

(i) Enters the gaming floor or a gaming-related

restricted area of the licensed facility.

(ii) Commits an act that adversely affects the

public interest or integrity of gaming.

(5) The board may prohibit a nongaming service provider

and any employees from providing goods or services to a slot

20170SB0524PN0537 - 83 -

machine licensee or applicant for a slot machine license at a

licensed facility if the board determines the prohibition is

necessary to protect the public interest or integrity of

gaming.

(e) Authority to exempt.--The board may exempt a nongaming

service provider from the notification requirements of this

section if the board determines any of the following:

(1) The nongaming service provider or the type or nature

of the nongaming service provider's business is regulated by

an agency of the Federal Government, an agency of the

Commonwealth or the Pennsylvania Supreme Court.

(2) Notification is not necessary to protect the public

interest or integrity of gaming.

(f) Emergency notification.--

(1) A slot machine licensee may use a nongaming service

provider prior to the board receiving notification under this

section when a threat to public health, welfare or safety

exists or circumstances outside the control of the slot

machine licensee require immediate action to mitigate damage

or loss to the slot machine licensee's licensed facility or

to the Commonwealth.

(2) A slot machine licensee that uses a nongaming

service provider in accordance with paragraph (1) shall:

(i) Notify the board immediately upon engaging a

nongaming service provider for which the board has not

previously received notification in accordance with

subsection (a).

(ii) Provide the notification required under

subsection (a) within a reasonable time as established by

the board.

20170SB0524PN0537 - 84 -

(g) Nongaming service provider list.--

(1) The board shall have the authority to prohibit a

nongaming service provider from engaging in business with a

slot machine licensee upon a finding by the board that the

prohibition is necessary to protect the public interest and

the integrity of gaming.

(2) The board shall develop and maintain a list of

prohibited nongaming service providers.

(3) A slot machine licensee or applicant for a slot

machine license may not enter into an agreement or engage in

business with a nongaming service provider appearing on the

list under this subsection.

(h) Duties of nongaming service provider.--A nongaming

service provider shall:

(1) Cooperate with the board and bureau regarding an

investigation, hearing, enforcement action or disciplinary

action.

(2) Comply with each condition, restriction,

requirement, order or ruling of the board in accordance with

this part.

(3) Report any change in circumstances to the slot

machine licensee or applicant for a slot machine license that

may render the nongaming service provider ineligible,

unqualified or unsuitable for the provision of goods or

services at a licensed facility or use in the operation of a

licensed facility. The slot machine licensee shall report the

change in circumstances to the board in the form and manner

established by the board.

(i) Construction.--Nothing in this section shall be

construed to limit the powers and authority of the board under

20170SB0524PN0537 - 85 -

section 1202 (relating to general and specific powers) or the

regulatory authority of the board under section 1207 (relating

to regulatory authority of board).

Section 14. Section 1320(a) of Title 4 is amended and the

section is amended by adding a subsection to read:

§ 1320. Slot machine testing and certification standards.

(a) Use of other state standards.--[Until such time as the

board establishes an independent testing and certification

facility pursuant to subsection (b), the] The board may

determine, at its discretion, whether the slot machine testing

and certification standards of another jurisdiction within the

United States in which an applicant for a manufacturer license

is licensed are comprehensive and thorough and provide similar

adequate safeguards as those required by this part. If the board

makes that determination, it may permit a manufacturer through a

licensed supplier as provided in section 1317 (relating to

supplier [and manufacturer licenses application] licenses) to

deploy those slot machines which have met the slot machine

testing and certification standards in such other jurisdictions

without undergoing the full testing and certification process by

a board-established independent facility. In the event slot

machines of an applicant for a manufacturer license are licensed

in such other jurisdiction, the board may determine to use an

abbreviated process requiring only that information determined

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

machine certification to such an applicant. [Alternatively, the

board in its discretion may also rely upon the certification of

a slot machine that has met the testing and certification

standards of a board-approved private testing and certification

facility until such time as the board establishes an independent

20170SB0524PN0537 - 86 -

testing and certification facility pursuant to subsection (b).

Nothing in this section shall be construed to waive any fees

associated with obtaining a license through the normal

application process.]

* * *

(b.1) Use of private testing and certification facilities.--

Notwithstanding any other provisions of this part or regulation

of the board, if a slot machine is tested and certified by a

private testing and certification facility registered with the

board, the board shall use an abbreviated certification process

requiring only that information determined by it to be necessary

to consider the issuance of a slot machine certification under

this section. Within one year of the effective date of this

subsection, the board shall promulgate regulations that:

(1) Provide for the registration of private testing and

certification facilities. Persons seeking registration under

this subsection shall be subject to section 1202(b)(9)

(relating to general and specific powers).

(2) Specify the form and content of the application for

registration.

(3) Establish and collect an application fee for persons

seeking registration. The application fee shall include the

costs of all background investigations as determined

necessary and appropriate by the bureau.

(4) Establish uniform procedures and standards which

private testing and certification facilities must comply with

during the testing and certification of slot machines.

(5) Utilize information provided by private testing and

certification facilities for the abbreviated certification of

slot machines.

20170SB0524PN0537 - 87 -

(6) Establish an abbreviated certification process that

may be used by registered private testing and certification

facilities to test and certify slot machines.

(7) Establish fees that must be paid by licensed

manufacturers.

(8) Require slot machines submitted for abbreviated

certification to be approved or denied by the board within 30

days from the date of submission to the board. If the board

fails to act within the 30-day period, the abbreviated

certification shall be deemed conditionally approved.

(9) Provide procedures and standards for the suspension

and revocation of the registration of a private testing and

certification facility and the reinstatement of a suspended

or revoked registration, as determined appropriate by the

board.

* * *

Section 15. Section 1326 of Title 4 is amended to read:

§ 1326. [License renewals] Renewals.

(a) Renewal.--All permits [and], licenses, registrations or

certificates issued under this part unless otherwise provided

shall be subject to renewal every [three] five years. Nothing in

this subsection shall relieve a licensee of the affirmative duty

to notify the board of any changes relating to the status of its

license, permit, certificate or registration or to any other

information contained in the application materials on file with

the board. The application for renewal shall be submitted at

least [60] 180 days prior to the expiration of the permit [or],

license, registration or certificate and shall include an update

of the information contained in the initial and any prior

renewal applications and the payment of any renewal fee required

20170SB0524PN0537 - 88 -

by this part. Unless otherwise specifically provided in this

part, the amount of any renewal fee shall be calculated by the

board to reflect the longer renewal period. A permit [or],

license, registration or certificate for which a completed

renewal application and fee, if required, has been received by

the board will continue in effect unless and until the board

sends written notification to the holder of the permit [or],

license, registration or certificate that the board has denied

the renewal of such permit [or], license, registration or

certificate.

(b) Revocation or failure to renew.--In addition to any

other sanctions the board may impose under this part, the board

may at its discretion suspend, revoke or deny renewal of any

permit [or], license, registration or certificate issued under

this part if it receives any information from any source that

the applicant or any of its officers, directors, owners or key

employees is in violation of any provision of this part, that

the applicant has furnished the board with false or misleading

information or that the information contained in the applicant's

initial application or any renewal application is no longer true

and correct. In the event of a revocation or failure to renew,

the applicant's authorization to conduct the previously approved

activity shall immediately cease, and all fees paid in

connection therewith shall be deemed to be forfeited. In the

event of a suspension, the applicant's authorization to conduct

the previously approved activity shall immediately cease until

the board has notified the applicant that the suspension is no

longer in effect.

Section 16. Title 4 is amended by adding a section to read:

§ 1326.1. Slot machine license operation fee.

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(a) Imposition.--Beginning January 1, 2017, the board shall

impose an annual slot machine license operation fee on each

Category 1 and Category 2 licensed gaming entity, other than a

Category 1 or Category 2 licensed gaming entity operating in a

county of the first class, in an amount equal to 20% of the slot

machine license fee paid at the time of issuance under section

1209(a) (relating to slot machine license fee). The slot machine

license operation fee shall be paid by each Category 1 and

Category 2 licensed gaming entity, other than a Category 1 or

Category 2 licensed gaming entity operating in a county of the

first class, in equal installments on a monthly basis.

(b) Payment of fee.--The slot machine license operation fee

imposed under subsection (a) shall be paid on or before the

first day of each month.

suspend, revoke or deny any permit or license issued under this

part if a Category 1 or Category 2 licensed gaming entity , other

than a Category 1 or Category 2 licensed gaming entity operating

in a county of the first class, fails to pay the slot machine

license operation fee imposed under subsection (a).

(d) Deposit of slot machine license operation fee.--The

total amount of all license operation fees imposed and collected

by the board under this section shall be deposited in the fund

and shall be appropriated to the department on a continuing

basis for the purposes under section 1403(c)(3) (relating to

establishment of State Gaming Fund and net slot machine revenue

distribution).

Section 17. Section 13A27(c) of Title 4 is amended to read:

§ 13A27. Other financial transactions.

* * *

20170SB0524PN0537 - 90 -

application for credit, a certificate holder shall verify:

(1) The identity, creditworthiness and indebtedness

information of the applicant by conducting a comprehensive

review of the information submitted with the application and

any information regarding the applicant's credit activity at

other licensed facilities which the certificate holder may

obtain through a casino credit bureau and, if appropriate,

through direct contact with other slot machine licensees.

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

exclusion list under section 1514 (relating to regulation

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

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

excluded from gaming activities) or the voluntary credit

suspension list under subsection (h).

* * *

Section 18. Section 13A41 of Title 4 is amended by adding a

subsection to read:

§ 13A41. Table game device and associated equipment testing and

certification standards.

* * *

(b.1) Use of private testing and certification facilities.--

Notwithstanding any provision of this part or regulation of the

board, if a table game device or associated equipment is tested

and certified by a private testing and certification facility

registered with the board, the board shall use an abbreviated

certification process requiring only that information determined

by it to be necessary to consider the issuance of a table game

device or associated equipment certification under this section.

Within one year of the effective date of this subsection, the

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board shall promulgate regulations that:

(1) Provide for the registration of private testing and

certification facilities. Persons seeking registration under

this subsection shall be subject to section 1202(b)(9)

(relating to general and specific powers).

(2) Specify the form and content of the application for

registration.

(3) Establish and collect an application fee for persons

seeking registration. The application fee shall include the

costs of all background investigations as determined

necessary and appropriate by the board.

(4) Establish uniform procedures and standards which

private testing and certification facilities must comply with

during the testing and certification of table game devices

and associated equipment.

(5) Utilize information provided by private testing and

certification facilities for the abbreviated certification of

table game devices and associated equipment.

(6) Establish an abbreviated certification process that

may be used by registered private testing and certification

facilities to test and certify table game devices and

associated equipment.

(7) Establish fees that must be paid by a licensed

manufacturer.

(8) Require table game devices and associated equipment

submitted for abbreviated certification to be approved or

denied by the board within 30 days from the date of

submission to the board. If the board fails to act within the

30-day period, the abbreviated certification shall be deemed

conditionally approved.

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(9) Provide procedures and standards for the suspension

and revocation of the registration of a private testing and

certification facility and the reinstatement of a suspended

or revoked registration.

Section 19. Section 13A63(b)(3)(iii)(A) and (C) and (4) of

Title 4 are amended to read:

§ 13A63. Local share assessment.

* * *

(b) Distributions to counties.--The department shall make

quarterly distributions from the local share assessments

deposited into the fund under subsection (a) to counties,

including home rule counties, hosting a licensed facility

authorized to conduct table games under this chapter in

accordance with the following:

* * *

(3) If the facility is a Category 2 licensed facility

and if the county in which the licensed facility is located

is:

* * *

(iii) A county of the third class where a city of

the third class hosting the licensed facility is located

in two counties of the third class: 50% of the licensed

facility's local share assessment shall be distributed as

follows:

(A) Sixty percent to the county in which the

licensed facility is located, which shall be

deposited into a restricted receipts account to be

established in the Commonwealth Financing Authority

to be used exclusively for economic development

projects, community improvement projects and other

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projects in the public interest within the county.

* * *

which the host city is located, of which 50% shall be

deposited into a restricted receipts account to be

established in the Commonwealth Financing Authority

to be used [solely] exclusively for grants to

municipalities [that are contiguous to the host city]

within the nonhost county for economic development

projects, community improvement projects and other

projects in the public interest.

* * *

(4) The following apply:

(i) If the facility is a Category 3 licensed

facility located in a county of the second class A: 50%

of the licensed facility's local share assessment shall

be [deposited into a restricted receipts account to be

established in the Commonwealth Financing Authority to be

used exclusively for grants or guarantees for projects in

the county that qualify under 64 Pa.C.S. §§ 1551

(relating to Business in Our Sites Program), 1556

(relating to Tax Increment Financing Guarantee Program)

and 1558 (relating to Water Supply and Waste Water

Infrastructure Program).] distributed as follows:

(A) Seventy-five percent shall be distributed to

the county hosting the licensed facility from each

such licensed facility for the purpose of supporting

the maintenance and refurbishment of the Parks and

Heritage sites throughout the county in which the

licensee is located.

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(B) Twelve and one-half percent shall be

distributed to the county hosting the licensed

facility from each such licensed facility for the

purpose of supporting a child advocacy center located

within the county in which the licensee is located.

distributed to the county hosting the licensed

facility from each such licensed facility for the

purpose of supporting an organization providing

comprehensive support services to victims of domestic

violence, including legal and medical aid, shelters,

transitional housing and counseling located within

the county in which the licensee is located.

(ii) Except as provided in subparagraph (i), if the

facility is a Category 3 licensed facility in a county of

any class: 50% of the licensed facility's local share

assessment shall be added to the funds in the restricted

receipts account established under section 1403(c)(2)(iv)

for distribution with those funds.

* * *

Section 20. Title 4 is amended by adding a chapter to read:

CHAPTER 13B

INTERACTIVE GAMING

Subchapter

A. General Provisions

B. Interactive Gaming Authorized

B.1. Multi-use Computing Devices

C. Conduct of Interactive Gaming

D. Facilities and Equipment

E. Testing and Certification

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F. Taxes and Fees

G. Miscellaneous Provisions

SUBCHAPTER A

GENERAL PROVISIONS

Sec.

13B01. Legislative findings.

13B02. Regulatory authority.

13B03. Temporary interactive gaming regulations.

§ 13B01. Legislative findings.

The General Assembly finds and declares that:

(1) The primary objective of the Pennsylvania Race Horse

Development and Gaming Act, to which all other objectives are

secondary, is to protect the public through the regulation

and policing of all activities involving gaming and practices

that continue to be unlawful.

(2) Legislative authorization of slot machine gaming and

the conduct of table games is intended to enhance live horse

racing, breeding programs, entertainment and employment in

this Commonwealth.

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

source of revenue for property and wage tax relief, promote

economic development and enhance development of tourism

markets throughout this Commonwealth.

(4) Legalized gaming in the Category 1, Category 2 and

Category 3 licensed facilities geographically dispersed in

this Commonwealth has become a critical component of economic

development and, if gaming activities continue to be properly

regulated and fostered, it will provide a substantial

contribution to the general health, welfare and prosperity of

this Commonwealth and its citizens.

20170SB0524PN0537 - 96 -

(5) The General Assembly remains committed to ensuring a

robust gaming industry in this Commonwealth that is capable

of competing internationally, nationally and regionally at

the highest levels of quality while maintaining strict

regulatory oversight to ensure the integrity of all gaming

operations as supervised by the board.

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

opportunity for millions of people worldwide to engage in

online gambling, mostly through illegal, unregulated off-

shore gambling operations.

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

President of the United States signed the Unlawful Internet

Gambling Enforcement Act of 2006, codified at 31 U.S.C. Ch.

53 Subch. IV (relating to prohibition on funding of unlawful

Internet gambling), which generally prohibits the use of

banking instruments, including credit cards, checks and money

transfers for interstate Internet gambling.

(8) Although the Unlawful Internet Gambling Enforcement

Act of 2006 prohibits interstate Internet gambling by United

States citizens, it permits individual states to create a

regulatory framework to govern intrastate Internet or

interactive gambling.

(9) Interactive gaming is illegal in this Commonwealth

and without legislative authorization and strict regulation,

the public's trust and confidence in legalized commercial

gaming may be impacted.

(10) In this Commonwealth, interactive gaming has been

conducted without oversight, regulation or enforcement, all

of which raises significant concerns for the protection of

the health, welfare and safety of the citizens of this

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Commonwealth.

(11) An effective regulatory, licensing and enforcement

system for interactive gaming in this Commonwealth would

inhibit underage wagering and otherwise protect vulnerable

individuals, ensure that the games offered through the

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

tax and other revenue offshore to illegal operators, provide

a significant source of taxable revenue, create jobs and

economic development and address the concerns of law

enforcement.

(12) By legalizing interactive gaming and subjecting it

to the regulatory oversight of the board, the General

Assembly is assuring the citizens of this Commonwealth that

only those persons licensed by the board to conduct slot

machine gaming and table games and to operate interactive

games or interactive gaming systems, in accordance with the

requirements of this part, have been determined to be

suitable to facilitate and conduct interactive gaming

activities in this Commonwealth.

(13) An effective regulatory, licensing and enforcement

system to govern interactive gaming in this Commonwealth is

consistent with the original objectives and intent of the

Pennsylvania Race Horse Development and Gaming Act, thereby

ensuring the public trust and confidence in the commercial

gaming industry in this Commonwealth.

(14) The Commonwealth has a legitimate State interest in

protecting the integrity of State-authorized interactive

gaming by licensing those entities already engaged in the

conduct of gaming in this Commonwealth, which are subject to

the scrutiny and discipline of the board and other regulatory

20170SB0524PN0537 - 98 -

agencies and which are in good standing with those agencies.

§ 13B02. Regulatory authority.

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

and regulations to govern the conduct of interactive gaming in

order to ensure that it will be implemented in a manner that

provides for the security and effective management,

administration and control of interactive gaming, including, but

not limited to, regulations:

(1) Ensuring that interactive gaming is offered for play

in this Commonwealth in a manner that is consistent with

Federal law and the provisions of this chapter.

(2) Establishing standards and procedures for testing

and approving interactive games and interactive gaming

devices and associated equipment, and any variations or

composites of authorized interactive games, provided that the

board determines that the interactive games and any new

interactive games or any variations or composites are

suitable for use after a test or experimental period under

any terms and conditions as the board may deem appropriate.

The board may give priority to the testing of interactive

games, interactive gaming devices and associated equipment or

other gaming equipment which a slot machine licensee has

certified that it will use to conduct interactive gaming in

this Commonwealth. Nothing in this paragraph shall be

construed to prohibit the board from using the testing and

certification standards of another state or jurisdiction in

which interactive gaming is conducted if it determines that

the standards of the jurisdiction are comprehensive, thorough

and provide similar and adequate safeguards as those required

under this part. If the board makes such a determination, and

20170SB0524PN0537 - 99 -

the applicant for an interactive gaming certificate or an

interactive gaming license is licensed in another state or

jurisdiction to operate interactive gaming, it may use an

abbreviated process requiring only the information determined

by it to be necessary to consider the issuance of a

certification under this chapter. The board, in its

discretion, may also rely upon the certification of

interactive games that have met the testing and certification

standards of a board-approved private testing and

certification facility.

(3) Establishing standards and rules to govern the

conduct of interactive gaming and the system of and wagering

associated with interactive gaming, including internal

controls and accounting controls, and the type, number,

payout, wagering limits and rules for interactive games.

(4) Establishing the method for calculating gross

interactive gaming revenue and standards for the daily

counting and recording of cash and cash equivalents received

in the conduct of authorized interactive games and ensure

that internal controls and accounting controls are followed,

including the maintenance of financial books and records and

the conduct of audits. The board shall consult with the

department in establishing these regulations.

(5) Establishing notice requirements pertaining to

minimum and maximum wagers on authorized interactive games.

(6) Ensuring that all facilities and interactive gaming

devices and associated equipment are arranged in a manner to

promote appropriate security for interactive gaming.

(7) Establishing technical standards for the approval of

interactive games, interactive gaming devices and associated

20170SB0524PN0537 - 100 -

equipment, including mechanical, electrical or program

reliability, security against tampering and any other

standards as it may deem necessary to protect registered

players from fraud or deception.

(8) Governing the creation and utilization of

interactive gaming accounts by registered players, including

requiring that:

(i) Interactive gaming accounts be possessed by a

natural person and not in the name of any beneficiary,

custodian, joint trust, corporation, partnership or other

organization or entity.

(ii) Interactive gaming accounts shall not be

assignable or otherwise transferable.

(iii) No account be established for an individual

under 21 years of age.

(9) Establishing procedures for registered players to

log into their interactive gaming accounts, authenticate

identities, agree to terms, conditions and rules applicable

to authorized interactive games and log out of interactive

gaming accounts, including procedures for automatically

logging off registered players from an interactive game after

a specified period of inactivity.

(10) Establishing procedures for:

(i) Depositing funds in an interactive gaming

account by cash, transfer or other means, as approved by

the board.

(ii) The withdrawal of funds from interactive gaming

accounts.

(iii) The suspension of interactive gaming account

activity for security reasons.

20170SB0524PN0537 - 101 -

(iv) The termination of interactive gaming accounts

and disposition of proceeds in accounts.

(v) The disposition of unclaimed amounts in dormant

interactive gaming accounts.

(11) Establishing mechanisms by which registered players

may place limits on the amount of money being wagered per

authorized interactive game or during any specified time

period or the amount of losses incurred during any specified

time period.

(12) Establishing mechanisms to exclude from interactive

gaming persons not eligible to play by reason of age,

identity or location or inclusion on a list of persons denied

access to interactive gaming activities in accordance with

sections 1514 (relating to regulation requiring exclusion,

ejection or denial of access of certain persons), 1515

(relating to repeat offenders excludable from licensed gaming

facility) and 1516 (relating to list of persons self excluded

from gaming activities).

(13) Establishing procedures for the protection,

security and reliability of interactive gaming accounts,

authorized interactive games, interactive gaming devices and

associated equipment and mechanisms to prevent tampering or

utilization by unauthorized persons.

(14) Establishing data security standards to govern age,

identity and location verification of persons engaged in

interactive gaming activity.

(15) Requiring each interactive gaming certificate

holder to:

(i) Provide written information on its interactive

gaming skin or Internet website, which explains the rules

20170SB0524PN0537 - 102 -

for each authorized interactive game, payoffs or winning

wagers and other information as the board may require.

(ii) Designate one or more interactive gaming

restricted areas where interactive gaming will be

managed, administered or controlled.

(iii) Provide the board with access to the

interactive gaming skin or website, interactive gaming

platform, signal or transmission used in connection with

interactive gaming and interactive gaming restricted

areas.

(iv) Adopt procedures for the recordation,

replication and storage of all play and transactions for

a period to be determined by the board.

(v) Provide statements on its interactive gaming

skin or website about the permissible minimum and maximum

wagers for each authorized interactive game, as

applicable.

(vi) Adopt policies or procedures to prohibit any

unauthorized person from having access to interactive

gaming devices and associated equipment, including

software, system programs, hardware and any other gaming

equipment or devices which are used to manage, administer

or control interactive gaming.

(vii) Adopt data security standards to verify the

age, identity and location of persons engaged in

interactive gaming activity and prevent unauthorized

access by any person whose age and location have not been

verified or whose age and location cannot be verified in

accordance with regulations adopted by the board.

(viii) Adopt standards to protect the privacy and

20170SB0524PN0537 - 103 -

security of registered players engaged in interactive

gaming.

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

taxes and fees and maintain all books, records and

documents related to the interactive gaming certificate

holder's interactive gaming activities in a manner and in

a location within this Commonwealth as approved by the

board or the department. All books, records and documents

shall be immediately available for inspection during all

hours of operation in accordance with the regulations of

the board and shall be maintained in a manner and during

periods of time as the board shall by regulation require.

(b) Additional authority.--

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

persons that provide the following goods or services and any

other goods or services related to interactive gaming as the

board may determine shall be required to obtain a license,

permit or other authorization:

(i) Payment processing and related money

transmitting and services.

(ii) Customer identity or age verification and

geospatial technology services.

(iii) General telecommunications services, which are

not specifically designed for or related to interactive

gaming.

(iv) Other goods or services that are not

specifically designed for use with interactive gaming if

the persons providing the goods or services are not paid

a percentage of gaming revenue or of money wagered on

interactive games or of any fees, not including fees to

20170SB0524PN0537 - 104 -

financial institutions and payment providers for

facilitating a deposit by an interactive gaming account

holder.

(2) The board shall develop a classification system for

the licensure, permitting or other authorization of persons

that provide the following goods or services related to

interactive gaming:

(i) Persons that provide interactive games and

interactive gaming devices and associated equipment.

(ii) Persons that manage, control or administer the

interactive games or the wagers associated with

interactive games.

(iii) Providers of customer lists comprised of

persons identified or selected, in whole or in part,

because they placed or may place wagers on interactive

gaming.

(14) and (15)(vi) and (vii), the term "person" shall mean a

natural person.

§ 13B03. Temporary interactive gaming regulations.

(a) Promulgation.--

(1) In order to facilitate the prompt implementation of

this chapter, regulations promulgated by the board shall be

deemed temporary regulations which shall expire not later

than two years following the publication of the temporary

regulation in the Pennsylvania Bulletin and on the board's

publicly accessible Internet website.

(2) The board may promulgate temporary regulations not

subject to:

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

20170SB0524PN0537 - 105 -

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

Commonwealth Documents Law.

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

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

Commonwealth Attorneys Act.

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

known as the Regulatory Review Act.

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

temporary regulations governing the rules for interactive

gaming, the issuance of interactive gaming certificates and

interactive gaming licenses, standards for approving

manufacturers, suppliers and other persons seeking to provide

interactive games, interactive gaming devices and associated

equipment, including age and location verification software or

system programs and security and surveillance standards in the

Pennsylvania Bulletin within 30 days of the effective date of

this subsection.

temporary regulations governing the rules for issuing

certificates and licenses under this chapter, for new

interactive games, for approving interactive games or variations

thereof, interactive gaming devices and associated equipment and

for approving manufacturers, suppliers and other persons seeking

to provide interactive games, interactive gaming devices and

associated equipment, the board's authority to adopt temporary

regulations under subsection (a) shall expire two years after

the effective date of this section. Regulations adopted after

this period shall be promulgated as provided by law.

SUBCHAPTER B

INTERACTIVE GAMING AUTHORIZED

20170SB0524PN0537 - 106 -

Sec.

13B11. Authorization to conduct interactive gaming.

13B12. Interactive gaming certificate required and content of

petition.

13B13. Issuance of interactive gaming certificate.

13B14. Interactive gaming operators.

13B15. Interactive gaming certificate and license.

13B16. Timing of initial interactive gaming authorizations.

§ 13B11. Authorization to conduct interactive gaming.

(a) Authority of board.--

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

(i) To conduct interactive gaming, including

contests and tournaments and any other game which is

determined by the board to be suitable for interactive

gaming.

(ii) To deploy interactive gaming skins or Internet

websites to facilitate the conduct of interactive gaming

activities.

(2) Except as provided in this part, all individuals

playing authorized interactive games must be physically

located within this Commonwealth or within a state or

jurisdiction in which the board has entered an interactive

gaming reciprocal agreement. No individual under 21 years of

age shall open, maintain, use or have access to an

interactive gaming account.

(b) Authority to play interactive games.--Notwithstanding

any other provision of law, an individual who is 21 years of age

or older is hereby permitted to participate as a registered

player in interactive gaming and wagering associated with

playing an authorized interactive game offered by an interactive

20170SB0524PN0537 - 107 -

gaming certificate holder in accordance with regulations of the

board.

§ 13B12. Interactive gaming certificate required and content of

petition.

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

other person associated with or representing a slot machine

licensee shall operate or conduct or attempt to operate or

conduct interactive gaming, except for test purposes or open

interactive gaming to the public in this Commonwealth without

first obtaining an interactive gaming certificate or an

interactive gaming license from the board. A slot machine

licensee may seek approval to conduct interactive gaming by

filing a petition for an interactive gaming certificate with the

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

the submission of a petition for an interactive gaming

certificate.

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

documentation demonstrating that the slot machine licensee is

qualified for an interactive gaming certificate under this

chapter, a petition seeking board approval to conduct

interactive gaming within this Commonwealth shall include the

following:

(1) The name, business address and contact information

of the slot machine licensee.

(2) The name, business address and contact information

of any affiliate, interactive gaming operator or other person

that will be a party to an agreement related to the operation

of interactive gaming or an interactive gaming system on

behalf of a slot machine licensee.

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

20170SB0524PN0537 - 108 -

photograph of each principal and key employee of the slot

machine licensee who will be involved in the conduct of

interactive gaming and who is not currently licensed by the

board, if known.

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

photograph of each principal and key employee of the

interactive gaming certificate holder and interactive gaming

licensee, if any, who will be involved in the conduct of

interactive gaming and who is currently licensed by the

board.

(5) An itemized list of the interactive games and any

other game or games the slot machine licensee plans to offer

over the Internet for which authorization is being sought.

The slot machine licensee shall, in accordance with

regulations promulgated by the board, file any changes in the

number of authorized interactive games offered through

interactive gaming with the board.

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

employment positions that will be created at the licensed

facility if interactive gaming is authorized and an updated

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

preferences) which outlines the slot machine licensee's plan

to promote the representation of diverse groups and

Commonwealth residents in the employment positions.

(7) A brief description of the economic benefits

expected to be realized by the Commonwealth, the host

municipalities and residents if interactive gaming is

authorized.

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

be obtained to fund an expansion or modification of the

20170SB0524PN0537 - 109 -

licensed facility to accommodate interactive gaming and to

otherwise fund the cost of commencing interactive gaming.

(9) Information and documentation concerning financial

background and resources, as the board may require, to

establish by clear and convincing evidence the financial

stability, integrity and responsibility of the slot machine

licensee, and information or documentation concerning any

interactive gaming operator that will operate interactive

gaming or an interactive gaming system on behalf of the slot

machine licensee, as the board may require.

(10) Information and documentation, as the board may

require, to establish by clear and convincing evidence that

the slot machine licensee has sufficient business ability and

experience to conduct a successful interactive gaming

operation. In making this determination, the board may

consider the results of the slot machine licensee's slot

machine and table game operations, including financial

information, employment data and capital investment.

(11) Information and documentation, as the board may

require, to establish by clear and convincing evidence that

the slot machine licensee has or will have the financial

ability to pay the interactive gaming authorization fee.

(12) Detailed site plans identifying the proposed

interactive gaming restricted area where interactive gaming

operations will be managed, administered or controlled as

approved by the board.

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

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

internal and accounting controls applicable to

interactive gaming.

20170SB0524PN0537 - 110 -

(ii) The slot machine licensee's proposed standards

to protect, with a reasonable degree of certainty, the

privacy and security of its registered players.

(iii) How the slot machine licensee will facilitate

compliance with all of the requirements set forth in this

chapter and in 31 U.S.C. § 5362(10)(B) (relating to

definitions), including, but not limited to, all of the

following:

(A) Age, identity and location verification

requirements designed to block access to individuals

under 21 years of age.

(B) Appropriate data security standards to

prevent unauthorized access by any person whose age,

identity and location have not been verified or whose

age, identity and location cannot be verified in

accordance with this chapter and applicable

regulations of the board.

requirement that all wagers made in the conduct of

interactive gaming be initiated and received or

otherwise made exclusively within this Commonwealth.

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

identity and location verification standards designed to

block access to persons under 21 years of age and persons

excluded or prohibited from participating in interactive

gaming under this chapter.

(v) The procedures the slot machine licensee will

use to register individuals who wish to participate in

interactive gaming.

(vi) The procedures the slot machine licensee will

20170SB0524PN0537 - 111 -

use to establish interactive gaming accounts for

registered players.

(vii) The interactive games and services the slot

machine licensee proposes to offer to registered players.

(viii) Documentation and information relating to all

proposed subcontractors of the slot machine licensee,

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

(A) A description of the services to be provided

by each subcontractor.

(B) Information on the experience and

qualifications of each subcontractor to provide the

services anticipated.

owners, executives and employees that will be

directly or indirectly involved in the slot machine

licensee's interactive gaming operations, as well as

sufficient personal identifying information on each

such person to conduct background checks as may be

required by the board.

(14) The interactive gaming devices and associated

equipment, including the interactive gaming network,

interactive gaming system or systems, that the slot machine

licensee plans to or will utilize to manage, administer or

control its interactive gaming operations.

(15) Compliance certification of its interactive gaming

devices and associated equipment, including interactive

gaming software and hardware, by a board-approved gaming

laboratory to ensure that the gaming software and hardware

comply with the requirements of this chapter and regulations

of the board.

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(16) A detailed description of accounting systems,

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

the following:

(i) Interactive gaming accounts.

(ii) Per-hand charges, if applicable.

(iii) Transparency and reporting to the board and

the department.

(iv) Distribution of revenue to the Commonwealth and

winnings to registered players.

(v) Ongoing auditing and internal control compliance

reviews.

(17) Detailed information on security systems at the

licensed facility to protect the interactive gaming skins or

Internet website from internal and external breaches and

threats.

(18) Any other information the board may require.

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

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

(relating to board minutes and records).

§ 13B13. Issuance of interactive gaming certificate.

(a) Requirements for approval of petition.--

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

(relating to interactive gaming certificate required and

content of petition) upon finding clear and convincing

evidence of all of the following:

(i) The slot machine licensee's conduct of

interactive gaming complies in all respects with the

requirements of this chapter and regulations promulgated

by the board.

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(ii) Age, identity and location verification

requirements designed to block access to individuals

under 21 years of age and persons otherwise prohibited

from engaging in interactive gaming in accordance with

this chapter, as approved by the board, have been

implemented by the slot machine licensee.

(iii) The slot machine licensee has implemented or

will implement appropriate data security standards to

prevent unauthorized access by any person whose age,

identity and location has not been verified or cannot be

verified in accordance with the regulations promulgated

and adopted by the board.

(iv) The slot machine licensee has implemented or

will implement appropriate standards to protect the

privacy and security of registered players.

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

internal and accounting controls applicable to

interactive gaming, and the security and integrity of all

financial transactions in connection with the system,

complies with this chapter and regulations promulgated

and adopted by the board.

(vi) The slot machine licensee is in good standing

with the board.

(vii) The slot machine licensee agrees that the

number of slot machines and table games in operation at

its licensed facility, as of the effective date of this

section, will not be reduced as a result of the

authorization and commencement of interactive gaming.

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

gaming certificate that a slot machine licensee shall

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collect, report and pay all applicable taxes and fees and

shall maintain all books, records and documents pertaining to

the slot machine licensee's interactive gaming operations in

a manner and location within this Commonwealth as approved by

the board. All books, records and documents shall be

immediately available for inspection by the board and the

department during all hours of operation in accordance with

the regulations of the board and shall be maintained in a

manner and during periods of time as the board shall require.

(b) Issuance of interactive gaming certificate.--

(1) Upon approval of a petition for an interactive

gaming certificate, the board shall issue an interactive

gaming certificate to the slot machine licensee. The issuance

of an interactive gaming certificate prior to the full

payment of the authorization fee required under section 13B51

(relating to interactive gaming authorization fee) shall not

relieve the slot machine licensee from the obligation to pay

the authorization fee in accordance with the requirements of

section 13B51.

(2) Upon issuing an interactive gaming certificate, the

board shall amend the slot machine licensee's statement of

conditions to include conditions pertaining to the

requirements of this chapter.

(3) Notwithstanding any law to the contrary, the board

shall not issue any certificate under this part if the

licensee or any person affiliated with or directly related to

the licensee is a party in any ongoing civil proceeding in

which the party is seeking to overturn or otherwise challenge

a decision or order of the board pertaining to the approval,

denial or conditioning of a license to conduct thoroughbred

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or harness horse race meetings respectively with pari-mutuel

wagering or to operate slot machines. This paragraph shall

not be interpreted to affect the rights of licensees to seek

judicial enforcement of mandatory obligations of the board as

may be required by this part.

power of the board to deny, revoke or suspend an interactive

gaming certificate issued in accordance with the requirements of

this section, an interactive gaming certificate shall be renewed

every five years and shall be subject to the requirements of

section 1326 (relating to renewals).

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

by the requirements of this chapter or any condition contained

in the slot machine licensee's statement of conditions governing

the operation of interactive gaming shall be subject to board-

imposed administrative sanctions or other penalties authorized

under this part. The imposition of administrative sanctions in

accordance with this subsection shall apply to any interactive

gaming operator that fails to abide by the requirements of this

chapter and regulations of the board.

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

interactive gaming certificate shall be accompanied by a

nonrefundable fee established by the board to cover the cost of

background investigations. The board shall determine by

regulation the persons involved, directly or indirectly, in a

slot machine licensee's interactive gaming operations and

persons involved in the operations of an interactive gaming

operator who shall be subject to background investigation. Any

additional costs and expenses incurred in any background

investigation or other investigation or proceeding under this

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chapter shall be reimbursed to the board by the applicant for an

interactive gaming certificate.

§ 13B14. Interactive gaming operators.

(a) License required.--No person shall serve or attempt to

serve as an interactive gaming operator without first obtaining

an interactive gaming license from the board. A person may seek

approval to serve as an interactive gaming operator by filing an

application with the board. The board shall prescribe the form

and manner to govern the submission of an application for an

interactive gaming license. The board shall provide for the

licensure of interactive gaming operators that operate

interactive gaming or an interactive gaming system on behalf of

an interactive gaming certificate holder. The board shall:

(1) Determine suitability and provide for the licensure,

permitting, registration or certification, as it deems

appropriate, of interactive gaming operators or other persons

directly involved in the operation of interactive gaming or

an interactive gaming system on behalf of a slot machine

licensee. The board shall determine suitability in accordance

with the applicable requirements of this part, provided that

the board may extend suitability to a holder of a valid

license, permit, registration, certificate or other

authorizations approved and issued under this part, which is

in good standing, without additional investigation. The

extension of suitability in accordance with this paragraph

shall not relieve the holder of a valid license, permit,

registration or certificate issued under this chapter from

payment of all fees imposed under this chapter.

(2) Provide for the approval of the terms and conditions

of all agreements entered into by or between an interactive

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gaming certificate holder and an interactive gaming operator

or any other person related to the operation of interactive

games or an interactive gaming system on behalf of the

interactive gaming certificate holder.

(b) Classification and approval of employees.--

(1) The board shall establish a classification system

for employees of interactive gaming operators or other

persons who provide products or services associated with or

related to interactive gaming, interactive gaming platforms

and interactive gaming systems.

(2) The board shall provide for the licensure,

permitting, registration or certification, as it deems

appropriate, of employees in each employee classification

established by it in accordance with paragraph (1).

operators shall be subject to the applicable provisions of this

part that apply to interactive gaming certificate holders, as

determined by the board.

(d) Operators owned, controlled by slot machine licensee.--

This section shall not apply to an interactive gaming operator

that is owned by, affiliated with or otherwise controlled by a

slot machine licensee that has been approved for and issued an

interactive gaming certificate under this chapter. The board

shall determine by regulation the criteria or conditions

necessary to determine whether an interactive gaming operator is

owned by, affiliated with or otherwise controlled by a slot

machine licensee to effectuate the purpose of this subsection.

(e) Interactive gaming license and conditional

authorization.--

(1) The following shall apply:

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(i) During the first 18 months after the effective

date of this section, the board may issue conditional

authorizations to persons seeking licensure as

interactive gaming operators.

(ii) Conditional authorization awarded to an

interactive gaming operator may remain in effect until

the shorter of 12 months after the date of issue or the

date by which the board considers the subject

application.

(iii) Conditional authorization may be renewed by

the board not more than once, upon a showing of good

cause.

(iv) Conditional authorization shall allow an

applicant for an interactive gaming license to engage in

all of the functions of a licensed interactive gaming

operator for the duration of the conditional

authorization.

(2) No conditional authorization may be issued unless:

(i) The applicant has submitted a complete

application for an interactive gaming license to the

board.

(ii) The applicant agrees to pay or has paid the fee

prescribed in section 13B51 (relating to interactive

gaming authorization fee) prior to the issuance of

conditional authorization, which may be refundable in the

event the license is not approved and issued by the

board.

(iii) The bureau has no objection to the issuance of

a conditional authorization to the applicant.

(3) Within 45 days of the date that the bureau receives

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the completed application for an interactive gaming license

from an applicant for investigation, the bureau shall conduct

a preliminary investigation of the applicant and any key

interactive gaming employee of the applicant, as determined

by the board, which shall include a criminal background

investigation of the applicant and any interactive gaming

employees of the applicant, as determined by the board in

accordance with section 1202(b) (relating to general and

specific powers).

(4) If the bureau's preliminary investigation discloses

no adverse information that would impact suitability for

licensure, the bureau shall provide the board with a

statement of no objection to issuance of conditional

authorization to the applicant.

(5) If the bureau's preliminary investigation discloses

adverse information that would impact suitability for

licensure, it shall register an objection and no conditional

authorization may be issued until the bureau's concerns are

resolved.

(6) Any conditional authorization approved and issued to

an applicant for an interactive gaming license under this

subsection may be suspended or withdrawn by the board upon a

showing of good cause by the bureau.

§ 13B15. Interactive gaming certificate and license.

The following shall apply:

(1) An interactive gaming certificate and interactive

gaming license shall be in effect unless:

(i) The certificate or license is suspended or

revoked by the board consistent with the requirements of

this part.

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(ii) The slot machine license is suspended, revoked

or not renewed by the board consistent with the

requirements of this part.

(iii) The slot machine licensee relinquishes or does

not seek renewal of its slot machine license.

(iv) The slot machine licensee does not seek renewal

of its interactive gaming certificate.

(2) The interactive gaming certificate may include an

initial itemized list by number and type of authorized

interactive games for interactive gaming to be conducted by

the interactive gaming certificate holder or interactive

gaming operator or other person on behalf of an interactive

gaming certificate holder. The slot machine licensee may

increase or decrease the number of interactive games

authorized for play on its interactive gaming skin or

Internet website or change the type of authorized interactive

games played on its interactive gaming skin or Internet

website upon notice, if required by the board, to the board

and approval by the board or a designated employee of the

board. Unless approved by the board or a designated employee

of the board, the total number and type of authorized

interactive games offered for play by an interactive gaming

certificate holder may not differ from the number and type

approved by the board and authorized in the interactive

gaming certificate.

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

the information in its initial interactive gaming petition at

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

§ 13B16. Timing of initial interactive gaming authorizations.

The board shall prescribe the date on which petitions for an

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interactive gaming certificate and applications for an

interactive gaming license must be filed with the board and

shall approve or deny a petition or application within 90 days

following receipt.

SUBCHAPTER B.1

MULTI-USE COMPUTING DEVICES

Sec.

13B20. Authorization.

13B20.1. Board authorization required.

13B20.2. Standard for review of petitions.

13B20.3. Fees.

13B20.4. Multi-use gaming device tax.

13B20.5. Local share assessment.

13B20.6. Regulations.

13B20.7. Construction.

13B20.8. Expiration.

§ 13B20. Authorization.

(a) Authority.--

(1) Notwithstanding any provision of this part or

regulation of the board, an interactive gaming certificate

holder may provide for the conduct of interactive gaming at a

qualified airport through the use of multi-use computing

devices or enter into a written agreement with an interactive

gaming operator that provides for the conduct of such

interactive gaming by the interactive gaming operator on

behalf of the interactive gaming certificate holder.

(2) An interactive gaming certificate holder seeking to

make authorized interactive games available for play through

the use of multi-use computing devices at a qualified airport

shall file a petition with the board in such form and manner

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as the board, through regulations, shall require.

(b) Place of conduct.--The board, at its discretion, may

authorize an interactive gaming certificate holder or an

interactive gaming operator to place and make authorized

interactive games available for play at a qualified airport

through the use of multi-use computing devices in accordance

with the requirements of this subchapter and regulations of the

board.

interactive gaming certificate holder to conduct interactive

gaming at a qualified airport in accordance with subsection (a)

shall be contingent upon the following:

(1) The interactive gaming certificate holder has

submitted a petition to the board seeking authorization to

manage the conduct of interactive gaming at the qualified

airport and the board has approved the petition.

(2) The interactive gaming certificate holder has

disclosed that it has or will enter into an agreement with an

interactive gaming operator who will manage, operate and

control the conduct of interactive gaming at a qualified

airport on behalf of the interactive gaming certificate

holder and the interactive gaming operator has petitioned the

board for approval and the board has approved the agreement

and the petition.

(3) The interactive gaming certificate holder or

interactive gaming operator, as the case may be, has entered

into an agreement with the concession operator at the

qualified airport for the conduct of interactive gaming

through the use of multi-use computing devices within the

airport gaming area.

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(4) The interactive gaming certificate holder or

interactive gaming operator, as applicable, has provided

adequate assurances that the conduct of interactive gaming at

the qualified airport will be conducted and operated in

accordance with this part and regulations promulgated by the

board.

(5) The interactive gaming certificate holder has paid

or will pay all applicable taxes and fees.

(6) In the case of a qualified airport that is governed

by a municipal authority or joint municipal authority

organized and incorporated to oversee the operations of an

airport in accordance with 53 Pa.C.S. Ch. 56 (relating to

municipal authorities), the interactive gaming certificate

holder or interactive gaming operator, as the case may be,

has entered into an agreement with the municipal authority or

joint municipal authority for the conduct of interactive

gaming through the use of multi-use computing devices within

the gaming area of the qualified airport and the board has

approved the agreement.

(d) Agreement required.--The following shall apply:

(1) An interactive gaming certificate holder may seek

authorization for the operation and placement of authorized

interactive games at a qualified airport or may enter into an

agreement with an interactive gaming operator to provide for

the conduct of interactive gaming at the qualified airport.

(2) An agreement entered into in accordance with this

subsection shall be in writing and shall be submitted to the

board for review and approval.

§ 13B20.1. Board authorization required.

(a) Contents of petition.--An interactive gaming certificate

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holder seeking authorization to conduct interactive gaming at a

qualified airport through the use of a multi-use computing

device shall petition the board for approval. The petition shall

include:

(1) The name, business address and contact information

of the interactive gaming certificate holder or the name,

business address and contact information of the interactive

gaming operator, if an interactive gaming operator will

manage the operation of interactive gaming at a qualified

airport on behalf of an interactive gaming certificate holder

pursuant to an interactive gaming agreement.

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

photograph of each principal and key employee of the

interactive gaming certificate holder and, if relevant, the

interactive gaming operator who will be directly involved in

the conduct of authorized interactive games at the qualified

airport and who is not currently licensed by the board, if

known.

(3) The name and business address of the airport

authority, the location of the qualified airport and the

names of the governing body of the airport authority, if the

airport authority is incorporated in accordance with 53

Pa.C.S. Ch. 56 (relating to municipal authorities).

(4) If the use and control of a qualified airport is

regulated by a city of the first class, an identification of

the municipal agency and primary officials of a city of the

first class, which regulates the use and control of the

qualified airport.

(5) The name and job title of the person or persons who

will be responsible for ensuring the operation and integrity

20170SB0524PN0537 - 125 -

of the conduct of interactive gaming at a qualified airport

and reviewing reports of suspicious transactions.

(6) The brand name of the multi-use computing devices

that will be placed in operation at the qualified airport.

The board, at its discretion, may require any additional

information related to the conduct of interactive gaming at a

qualified airport through the use of multi-use computing

devices or persons that manufacture or supply multi-use

computing devices that it may determine necessary and

appropriate to ensure the integrity of interactive gaming at

a qualified airport and protect the public interest.

(7) An itemized list of the interactive games for which

authorization is being sought.

(8) Information, as the board may require, on any

computer applications or apps, including gaming apps, which

can be accessed on the multi-use computing devices.

(9) Information on the terms and conditions of any

interactive gaming agreement entered into by or between an

interactive gaming certificate holder and interactive gaming

operator or other person related to the conduct of

interactive gaming through the use of multi-use computing

devices at a qualified airport, if the board deems necessary

and appropriate.

(10) Detailed site plans illustrating the location of

the proposed airport gaming area at the qualified airport.

(11) Information and documentation concerning financial

background and resources, as the board may require, to

establish by clear and convincing evidence the financial

stability, integrity and responsibility of the petitioner.

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

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(b) Confidentiality.--Information submitted to the board

under subsection (a)(8), (9), (11) and (12) may be considered

confidential by the board if the information would be

confidential under section 1206(f) (relating to board minutes

and records).

required under this section, the board shall authorize an

interactive gaming certificate holder or an interactive gaming

operator, as applicable, to conduct interactive gaming at a

qualified airport through the use of multi-use computing

devices. The authorization of an interactive gaming certificate

holder or an interactive gaming operator, as applicable, to

conduct interactive gaming at a qualified airport in accordance

with this chapter prior to the full payment of the authorization

fee under section 13B20.3 (relating to fees) shall not relieve

the interactive gaming certificate holder or interactive gaming

operator, as applicable, from the obligation to pay the

authorization fee in accordance with section 13B20.3.

§ 13B20.2. Standard for review of petitions.

The board shall approve a petition under section 13B20.1

(relating to board authorization required) if the interactive

gaming operator has been or will be issued an interactive gaming

license under section 13B14 (relating to interactive gaming

operators), and if it establishes, by clear and convincing

evidence, all of the following:

(1) The interactive gaming certificate holder or

interactive gaming operator, as the case may be, has entered

into an agreement with a concession operator for the conduct

of interactive gaming through the use of multi-use computing

devices within the airport gaming area of a qualified

20170SB0524PN0537 - 127 -

airport.

(2) The interactive gaming operator has an agreement

with an interactive gaming certificate holder relating to the

conduct of authorized interactive games by the interactive

gaming operator on behalf of the interactive gaming

certificate holder.

(3) The board has approved the agreements under

paragraphs (1) and (2), as applicable.

(4) The interactive gaming operator has paid the

authorization fee under section 13B51 (relating to

interactive gaming authorization fee).

(5) The interactive gaming operator possesses the

necessary funds or has secured adequate financing to commence

the conduct of interactive gaming at the qualified airport.

(6) The proposed internal and external security and

surveillance measures within the airport gaming area of the

qualified airport are adequate.

§ 13B20.3. Fees.

(a) Required fees.--An interactive gaming certificate holder

shall pay a one-time, nonrefundable fee of $2,500,000 upon the

authorization to conduct interactive gaming at a qualified

airport through the use of multi-use computing devices in

accordance with this chapter.

(b) Deposit of fees.--Notwithstanding section 1208 (relating

to collection of fees and fines), all fees or penalties received

by the board under this chapter shall be deposited in the

General Fund.

§ 13B20.4. Multi-use gaming device tax.

(a) Imposition.--

(1) Each interactive gaming certificate holder

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authorized to conduct interactive gaming at a qualified

airport in accordance with the provisions of this subchapter

shall report to the department and pay from its daily gross

interactive gaming revenue generated from the conduct of

interactive gaming through multi-use computing devices at the

qualified airport, on a form and in the manner prescribed by

the department, a tax of 10% of its daily gross interactive

gaming revenue generated from multi-use computing devices at

the qualified airport and a local share assessment.

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

payable to the department on a daily basis and shall be based

upon the gross interactive gaming revenue generated from

multi-use computing devices at a qualified airport derived

during the previous week.

(3) All funds owed to the Commonwealth under this

section shall be held in trust for the Commonwealth by the

interactive gaming certificate holder until the funds are

paid to the department. An interactive gaming certificate

holder shall establish a separate bank account into which

gross interactive gaming revenue from multi-use computing

devices shall be deposited and maintained until such time as

the funds are paid to the department under this section.

(4) The department shall transfer the tax revenues

collected under this section to the General Fund.

(b) (Reserved).

§ 13B20.5. Local share assessment.

(a) Required payment.--In addition to the tax imposed under

section 13B20.4 (relating to multi-use gaming device tax), each

interactive gaming certificate holder shall pay on a weekly

basis and on a form and in a manner prescribed by the department

20170SB0524PN0537 - 129 -

a local share assessment into a restricted receipts account

established in the fund. All funds owed under this section shall

be held in trust by the interactive gaming certificate holder

until the funds are paid in accordance with subsection (b).

Funds in the account are hereby appropriated to the department

on a continuing basis for the purposes set forth in this

section.

(b) Distributions to qualified airports.--

(1) The department shall make quarterly distributions

from the local share assessments deposited into the fund

under subsection (a) to qualified airports.

(2) Notwithstanding paragraph (1) or any other provision

of law, the multi-use computing device local share assessment

generated at a qualified airport located in a city of the

first class which regulates the use and control of a

qualified airport shall be distributed as follows:

(i) Fifty percent of the funds to the city of the

first class to be used solely and exclusively for

neighborhood revitalization projects.

(ii) Fifty percent of the funds to the school

district of the first class located entirely in a city of

the first class.

(3) Notwithstanding paragraph (1) or any other provision

of law, the multi-use computing device local share assessment

in a qualified airport located in a county of the second

class shall be distributed as follows:

(i) Fifty percent to a county of the second class,

deposited into a restricted receipts account, to be

established in the Commonwealth Financing Authority, to

be used exclusively for grants within the county,

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excluding a city of the second class, for economic

development projects, road projects, community

improvement projects and other projects in the public

interest within the county.

(ii) Fifty percent to a city of the second class,

deposited into a restricted receipts account, to be

established in the Commonwealth Financing Authority, to

be used exclusively for grants within the city for

economic development projects, road projects, community

improvement projects and other projects in the public

interest within the city.

use computing device local share assessment" means 15% of an

interactive gaming certificate holder's gross interactive gaming

revenue from multi-use computing devices at qualified airports.

§ 13B20.6. Regulations.

(a) Regulations.--The board shall promulgate regulations

related to the operation of authorized interactive games through

the use of multi-use computing devices at qualified airports,

including, but not limited to:

(1) Procedures for the creation of temporary or

provisional interactive gaming accounts that take into

consideration the nature of interactive gaming through multi-

use computing devices at qualified airports.

(2) Procedures to govern credits, debits, deposits and

payments to interactive gaming accounts established through

multi-use computing devices at qualified airports.

(3) Procedures, in consultation with the department, to

govern financial transactions between an interactive gaming

certificate holder, an interactive gaming operator or other

20170SB0524PN0537 - 131 -

person that relates to the reporting of gross interactive

gaming revenue generated through the use of multi-use

computing devices at qualified airports.

(b) Temporary regulations.--In order to facilitate the

prompt implementation of this chapter, regulations promulgated

by the board in accordance with subsection (a) shall be deemed

temporary regulations. The board and the commission may

promulgate temporary regulations not subject to:

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

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

Commonwealth Documents Law.

(2) Sections 204(b) and 301(10) of the act of October

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

Attorneys Act.

(3) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

§ 13B20.7. Construction.

Nothing in this subchapter shall be construed to:

(1) Create a separate license governing the use of

multi-use computing devices for the conduct of interactive

games at eligible airports by interactive gaming certificate

holders within this Commonwealth.

(2) Limit the board's authority to determine the

suitability of any person who may be directly or indirectly

involved in or associated with the operation of interactive

gaming at a qualified airport to ensure the integrity of

interactive gaming and protect the public interest.

§ 13B20.8. Expiration.

This subchapter shall expire five years after the effective

date of this subchapter.

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SUBCHAPTER C

CONDUCT OF INTERACTIVE GAMING

Sec.

13B21. Situs of interactive gaming operations.

13B22. Establishment of interactive gaming accounts.

13B23. Interactive gaming account credits, debits, deposits and

payments.

13B24. Acceptance of account wagers.

13B25. Dormant interactive gaming accounts.

13B26. Login procedure required.

13B27. Information provided at login.

13B28. Prohibitions.

13B29. Commencement of interactive gaming operations.

§ 13B21. Situs of interactive gaming operations.

Except as provided in this chapter, all wagers made through

interactive gaming shall be deemed to be initiated, received or

otherwise made within the geographic boundaries of this

Commonwealth. The intermediate routing of electronic data

associated or in connection with interactive gaming shall not

determine the location or locations in which a bet or wager is

initiated, received or otherwise made.

§ 13B22. Establishment of interactive gaming accounts.

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

has first established an interactive gaming account shall be

permitted to play an authorized interactive game or place any

bet or wager associated with an authorized interactive game. An

interactive gaming account shall be in the name of a natural

person and may not be in the name of any beneficiary, custodian,

joint trust, corporation, partnership or other organization or

entity. An interactive gaming certificate holder shall not

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permit an individual to establish an interactive gaming account

unless the person is 21 years of age or older.

(b) Establishment of interactive gaming accounts.--

(1) An interactive gaming account may be executed in

person, provided that the board shall, through regulations,

provide procedures for the establishment of interactive

gaming accounts over the Internet through the interactive

gaming certificate holder's interactive gaming skin or portal

or Internet website. Each interactive gaming account shall

comply with the internal controls of the interactive gaming

certificate holder that, at a minimum, require the following:

(i) The filing and execution of an interactive

gaming account application, the form of which has been

preapproved by the board.

(ii) Proof of age, identity and residency as

demonstrated by at least two forms of identification

approved by the board through regulation.

(iii) Physical address or the principal residence of

the prospective account holder, e-mail address of the

prospective account holder and other contact information,

as the board or interactive gaming certificate holder may

require.

(iv) Password or other secured identification

provided by the interactive gaming certificate holder to

access the interactive gaming account or some other

mechanism approved by the board to authenticate the

player as the holder to the interactive gaming account.

(v) An acknowledgment under penalty of perjury that

false or misleading statements made in regard to an

application for an interactive gaming account may subject

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the applicant to civil and criminal penalties.

(2) The interactive gaming certificate holder may accept

or reject an application after receipt and review of the

application and verification of age and identity for

compliance with the provisions of this chapter. The

interactive gaming certificate holder shall have the right,

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

interactive gaming account at its sole discretion.

(3) The address provided by the applicant in the

application for an interactive gaming account shall be deemed

the address of record for the purposes of mailing checks,

account withdrawals, notices and other materials to the

interactive gaming account holder.

(4) An interactive gaming account shall not be

assignable or otherwise transferable, and an interactive

gaming certificate holder may, at any time, declare all or

any part of an interactive gaming account to be closed for

wagering.

the interactive gaming certificate holder shall provide the

prospective interactive gaming account holder with a password to

access the interactive gaming account or shall establish some

other method approved by the board to authenticate the

individual as the holder of the interactive gaming account and

allow the registered player access to the interactive gaming

account.

(d) Grounds for rejection.--Any individual who provides

false or misleading information in the application for an

interactive gaming account may be subject to rejection of the

application or cancellation of the account by the interactive

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gaming certificate holder.

(e) Suspension of interactive gaming account.--The

interactive gaming certificate holder shall have the right to

suspend or close any interactive gaming account at its

discretion.

(f) Persons prohibited from establishing or maintaining an

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

entitled to establish or maintain an interactive gaming account:

(1) Any person under 21 years of age.

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

excluded or ejected from or denied access to any licensed

facility under section 1514 (relating to regulation requiring

exclusion, ejection or denial of access of certain persons),

1515 (relating to repeat offenders excludable from licensed

gaming facility) or 1516 (relating to list of persons self

excluded from gaming activities).

(3) Any gaming employee, key employee or principal

employee of a slot machine licensee and any employee or key

employee of an interactive gaming operator or any other

person directly involved in the operation of interactive

gaming or an interactive gaming system on behalf of a slot

machine licensee.

§ 13B23. Interactive gaming account credits, debits, deposits

and payments.

(a) Duty of board.--The board shall, by regulation, develop

procedures to govern credits, debits and deposits to interactive

gaming accounts. Notwithstanding any provision of this part to

the contrary, all credits, debits and deposits to interactive

gaming accounts shall be made in accordance with regulations

promulgated by the board, in consultation with the department,

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and all payments of winnings shall be made in accordance with

the rules of each particular authorized interactive game.

(b) Rights of interactive gaming certificate holder.--An

interactive gaming certificate holder shall have the right to:

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

promotion.

(2) Refuse all or part of any wager or deposit to the

interactive gaming account of a registered player.

player's interactive gaming account shall not bear interest to

the account holder.

§ 13B24. Acceptance of account wagers.

(a) Acceptance.--A n interactive gaming certificate holder

may accept interactive gaming wagers or bets only as follows:

(1) The wager shall be placed directly with the

interactive gaming certificate holder by the registered

player, after the interactive gaming certificate holder has

verified that the individual seeking to place a wager or bet

is the registered player.

(2) The registered player provides the slot machine

licensee with the correct password or other authentication

information for access to the interactive gaming account.

(b) Nonacceptance.--A n interactive gaming certificate holder

may not accept an account wager in an amount in excess of funds

on deposit in an interactive gaming account of the registered

player placing the bet or wager. Funds on deposit include

amounts credited to a registered player's interactive gaming

account in accordance with regulations of the board and any

funds in the account at the time the wager is placed.

§ 13B25. Dormant interactive gaming accounts.

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Before closing a dormant interactive gaming account, the

interactive gaming certificate holder shall attempt to contact

the interactive gaming account holder by mail and phone or e-

mail to inform the account holder that the interactive gaming

account is inactive and may be subject to termination at such

time and manner as determined by regulation of the board.

§ 13B26. Login procedure required.

Each interactive gaming certificate holder shall establish a

gaming. The login procedure shall include the provision of the

appropriate authentication information by the registered player

for access to the interactive gaming account. The interactive

gaming certificate holder shall not allow a registered player to

correct password or other authentication information is

provided.

§ 13B27. Information provided at login.

The interactive gaming certificate holder shall configure its

interactive gaming skin to include a link that, upon login, will

allow a registered player to access all of the following

information:

(1) The current amount of funds in the interactive

gaming account.

(2) The wins and losses since the interactive gaming

account was established.

(3) The wins and losses at the beginning of the current

gaming session and the wins and losses at the end of the

current gaming session.

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

of each authorized interactive game offered by the

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interactive gaming certificate holder and any other

information as the board may require.

§ 13B28. Prohibitions.

Except as provided in this part, no interactive gaming

certificate holder or any person licensed under this part to

operate interactive gaming or an interactive gaming system and

no person acting on behalf of, or under any arrangement with, an

interactive gaming certificate holder or other person licensed

under this part shall:

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

crediting an interactive gaming account.

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

part, or make any loan which represents any losses incurred

by any registered player while playing authorized interactive

games without maintaining a written record thereof in

accordance with regulations of the board.

(3) Permit an interactive game to be offered at a

licensed facility or at any property owned by a licensed

gaming entity.

§ 13B29. Commencement of interactive gaming operations.

An interactive gaming certificate holder may not operate or

offer interactive games for play on its interactive gaming skin

until the board determines that:

(1) The interactive gaming certificate holder is in

compliance with the requirements of this chapter.

(2) The interactive gaming certificate holder 's

internal, administrative and accounting controls are

sufficient to meet the requirements of section 13B32

(relating to internal, administrative and accounting

controls).

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(3) The interactive gaming certificate holder 's

interactive gaming employees, where applicable, are licensed,

permitted, registered, certified or otherwise authorized by

the board to perform their respective duties.

(4) The employees of the interactive gaming operator

are, where applicable, licensed, permitted or otherwise

authorized by the board to perform their duties.

(5) The interactive gaming certificate holder is

prepared in all respects to offer interactive gaming to the

public over its interactive gaming skin.

(6) The interactive gaming certificate holder has

implemented necessary internal, administrative and accounting

controls, security arrangements and surveillance systems for

the operation of interactive gaming.

(7) The interactive gaming certificate holder is in

compliance with or will comply with section 13B31 (relating

to responsibilities of interactive gaming certificate

holder).

(8) The board has approved an agreement entered between

the interactive gaming certificate holder and an interactive

gaming operator or other person related to the operation of

interactive gaming or the operation of an interactive gaming

system on behalf of such interactive gaming certificate

holder .

SUBCHAPTER D

FACILITIES AND EQUIPMENT

Sec.

13B31. Responsibilities of interactive gaming certificate

holder .

13B32. Internal, administrative and accounting controls.

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§ 13B31. Responsibilities of interactive gaming certificate

holder .

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

interactive gaming devices and associated equipment shall:

(1) Be arranged in a manner promoting appropriate

security for interactive gaming.

(2) Include a closed-circuit video monitoring system

according to rules or specifications approved by the board,

with board absolute access to the interactive gaming

certificate holder 's interactive gaming skin, Internet

website and platform, signal or transmission used in

connection with interactive gaming.

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

or impede the board in its regulation of interactive gaming.

(4) Comply in all respects with regulations of the

board.

(b) Location of equipment and interactive gaming restricted

areas.--

(1) All interactive gaming devices and associated

equipment used by an interactive gaming certificate holder or

an interactive gaming licensee to conduct interactive gaming

may be located, with the prior approval of the board, in an

interactive gaming restricted area on the premises of the

licensed facility, in an interactive gaming restricted area

within the geographic limits of the county in this

Commonwealth where the licensed facility is situated or in

any other area approved by the board.

(2) All wagers associated with interactive gaming shall

be deemed to be placed when received by the interactive

gaming certificate holder .

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§ 13B32. Internal, administrative and accounting controls.

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

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

for an interactive gaming certificate in accordance with this

chapter shall submit a description of its system of internal

procedures and administrative and accounting controls for

interactive gaming to the board, including provisions that

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

interactive games and a description of any changes to its

procedures and controls. The submission shall be made at least

90 days before authorized interactive gaming is to commence or

at least 90 days before any change in those procedures or

controls is to take effect, unless otherwise directed by the

board.

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

and controls may be implemented by an interactive gaming

certificate holder upon the filing of the procedures and

controls with the board. Each procedure or control submission

shall contain both narrative and diagrammatic representations of

the system to be utilized with regard to interactive gaming,

including, but not limited to:

(1) Accounting controls, including the standardization

of forms and definition of terms to be utilized in the

interactive gaming operations.

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

to govern the following:

(i) calculation of hold percentages;

(ii) revenue drops;

(iii) expense and overhead schedules;

(iv) complimentary services; and

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(v) cash-equivalent transactions.

(3) Job descriptions and the system of personnel and

chain of command, establishing a diversity of responsibility

among employees engaged in interactive gaming operations,

including employees of an interactive gaming operator, and

identifying primary and secondary management and supervisory

positions for areas of responsibility, salary structure and

personnel practices.

(4) Procedures for the registration of players and

establishment of interactive gaming accounts, including a

procedure for authenticating the age, identity and location

of applicants for interactive gaming accounts.

(5) Procedures for terminating a registered player's

interactive gaming account and the return of any funds

remaining in the interactive gaming account to the registered

player.

(6) Procedures for suspending or terminating a dormant

interactive gaming account.

(7) Procedures for the logging in and authentication of

a registered player in order to enable the player to commence

interactive gaming and the logging off of the registered

player when the player has completed play, including a

procedure to automatically log a registered player out of the

player's interactive gaming account after a specified period

of inactivity.

(8) Procedures for the crediting and debiting of

registered players' interactive gaming accounts.

(9) Procedures for cashing checks, receiving electronic

negotiable instruments and for redeeming chips, tokens or

other cash equivalents.

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(10) Procedures for withdrawing funds from an

interactive gaming account by the registered player.

(11) Procedures for the protection of player funds,

including the segregation of player funds from operating

funds.

(12) Procedures for recording transactions pertaining to

interactive gaming.

(13) Procedures for the security and sharing of

personally identifiable information of registered players and

other information as required by the board and funds in

interactive gaming accounts. The procedures shall include the

means by which an interactive gaming certificate holder or

interactive gaming operator will provide notice to registered

players related to its sharing of personally identifiable

information. For the purpose of this paragraph, "personally

identifiable information" shall mean any data or information

that can be used, on its own or with other data or

information, to identify, contact or otherwise locate a

registered player, including a registered player's name,

address, date of birth and Social Security number.

(14) Procedures and security for the calculation and

recordation of revenue.

(15) Procedures for the security of interactive gaming

devices and associated equipment within an interactive gaming

restricted area on the premises of the licensed facility or

in a secure facility inaccessible to the public and

specifically designed for that purpose off the premises of a

licensed facility as approved by the board.

(16) Procedures and security standards as to receipt of

and the handling and storage of interactive gaming devices

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and associated equipment.

(17) Procedures and security standards to protect the

interactive gaming certificate holder 's interactive gaming

skin or Internet website and interactive gaming devices and

associated equipment from hacking or tampering by any person.

(18) Procedures for responding to suspected or actual

hacking or tampering with an interactive gaming certificate

holder 's interactive gaming skin or Internet website and

interactive gaming devices and associated equipment,

including partial or complete suspension of interactive

gaming or the suspension of any or all interactive gaming

accounts when warranted.

(19) Procedures to verify each registered player's

physical location each time a wager is placed on an

interactive game.

(20) Procedures to ensure, to a reasonable degree of

certainty, that the interactive games are fair and honest and

that appropriate measures are in place to deter, detect and,

to the extent reasonably possible, to prevent cheating,

including collusion, and the use of cheating devices,

including the use of software programs that make bets or

wagers according to algorithms.

(21) Procedures to assist problem and compulsive

gamblers, including procedures reasonably intended to prevent

a person from participating in interactive gaming activities

in accordance with sections 1514 (relating to regulation

requiring exclusion, ejection or denial of access of certain

persons), 1515 (relating to repeat offenders excludable from

licensed gaming facility) and 1516 (relating to list of

persons self excluded from gaming activities).

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(22) Procedures to govern emergencies, including

suspected or actual cyber attacks, hacking or tampering with

the interactive gaming certificate holder's interactive

gaming portal, platform or Internet website.

(1) The board shall review each submission required by

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

submission conforms to the requirements of this chapter and

regulations promulgated by the board and whether the system

submitted provides adequate and effective controls for

interactive gaming of the particular interactive gaming

certificate holder.

(2) If the board determines that insufficiencies exist,

it shall specify the insufficiencies in writing to the

interactive gaming certificate holder, who shall make

appropriate alterations to ensure compliance with the

requirements of this chapter and regulations of the board.

When the board determines a submission to be adequate in all

respects, it shall notify the interactive gaming certificate

holder.

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

interactive gaming certificate holder, interactive gaming

operator or other person shall commence or alter interactive

gaming operations unless and until the system of procedures,

controls and alternations is approved by the board.

SUBCHAPTER E

TESTING AND CERTIFICATION

Sec.

13B41. Interactive games and interactive gaming devices and

associated equipment testing and certification

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standards.

§ 13B41. Interactive games and interactive gaming devices and

associated equipment testing and certification

standards.

(a) Testing required.--

(1) No interactive game or interactive gaming device or

associated equipment shall be used to conduct interactive

gaming unless it has been tested and approved by the board.

The board may, in its discretion and for the purpose of

expediting the approval process, refer testing to any testing

laboratory as approved by the board.

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

standards for approval of interactive games and interactive

gaming devices and associated equipment, including standards

to govern mechanical, electrical or program reliability and

security against tampering and threats, as it may deem

necessary to protect the registered player from fraud or

deception and to ensure the integrity of interactive gaming.

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

costs associated with the board's testing and certification

facility shall be assessed on persons authorized by the board to

manufacture, supply, distribute or otherwise provide interactive

games and interactive gaming devices and associated equipment to

interactive gaming certificate holders or to interactive gaming

operators in this Commonwealth. The costs shall be assessed in

accordance with a schedule adopted by the board.

whether the testing and certification standards for interactive

games and interactive gaming devices and associated equipment as

adopted by another jurisdiction within the United States or any

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of the testing and certification standards used by an

interactive gaming certificate holder are comprehensive and

thorough and provide similar and adequate safeguards as those

required by this chapter and regulations of the board. If the

board makes that determination, it may permit the person

authorized to manufacture, supply, distribute or otherwise

provide interactive games and interactive gaming devices or

associated equipment to furnish interactive games or interactive

gaming devices and associated equipment to interactive gaming

certificate holders in this Commonwealth without undergoing the

full testing and certification process by the board's

independent testing and certification facility.

SUBCHAPTER F

TAXES AND FEES

Sec.

13B51. Interactive gaming authorization fee.

13B52. Interactive gaming tax.

13B53. (Reserved).

13B54. Compulsive and problem gambling.

§ 13B51. Interactive gaming authorization fee.

(a) Amount of authorization fee.--

(1) Each slot machine licensee that is issued an

interactive gaming certificate to conduct interactive gaming

in accordance with section 13B11 (relating to authorization

to conduct interactive gaming) shall pay a one-time

nonrefundable authorization fee in the amount of $10,000,000.

(2) Each interactive gaming operator or an affiliate of

an interactive gaming certificate holder that is issued an

interactive gaming license under this chapter to operate

interactive gaming or an interactive gaming system on behalf

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of a slot machine licensee pursuant to an interactive gaming

agreement and that is not owned, affiliated with or otherwise

controlled by a slot machine licensee shall pay a one-time

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

(3) Each interactive gaming operator that has been

approved by the board to provide for the conduct of

interactive gaming on behalf of an interactive gaming

certificate holder at a qualified airport in accordance with

Subchapter B.1 (relating to multi-use computing devices)

shall pay a one-time nonrefundable authorization fee in the

amount of $2,500,000.

(b) Payment of fee.--Persons required to pay the

authorization fee under subsection (a) shall remit the fee to

the board within 60 days of the board's approval of its

petition, license or conditional license to conduct interactive

gaming or to operate interactive gaming or an interactive gaming

system. The board may allow the fee to be paid in installments,

provided that all such installments are paid within the 60-day

period and that the installment payments are made in accordance

with the terms of an agreement between the board and the

interactive gaming certificate holder or an interactive gaming

operator under subsection (a)(2) that sets forth the terms of

the installment payment.

(1) Notwithstanding any other provision of this chapter,

an interactive gaming certificate holder shall pay a renewal

fee in the amount of $500,000 upon the renewal of its

interactive gaming certificate in accordance with sections

1326 (relating to renewals) and 13B13(c) (relating to

issuance of interactive gaming certificate).

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(2) Each interactive gaming operator under subsection

(a)(2) shall pay a renewal fee of $250,000 upon the renewal

of its interactive gaming license in accordance with this

chapter.

(d) Deposit of fees.--The fees imposed and collected under

subsections (a) and (c) shall be deposited in the General Fund.

§ 13B52. Interactive gaming tax.

(a) Imposition of tax.--Each interactive gaming certificate

holder that conducts interactive gaming shall report to the

department and pay from its daily gross interactive gaming

revenue, on a form and in the manner prescribed by the

department, a tax of 25% of its daily gross interactive gaming

revenue.

(b) Deposits and distributions.--

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

payable to the department on a weekly basis and shall be

based upon gross interactive gaming revenue derived during

the previous week.

(2) All funds owed to the Commonwealth under this

section shall be held in trust for the Commonwealth by the

interactive gaming certificate holder until the funds are

paid to the department for deposit in the General Fund. An

interactive gaming certificate holder shall establish a

separate bank account into which gross interactive gaming

revenue shall be deposited and maintained until such time as

the funds are paid to the department under this section.

shall be assessed and collected by the department with respect

to any wagers placed by registered players located in this

Commonwealth with an interactive gaming operator outside of this

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Commonwealth, but authorized under an interactive gaming

reciprocal agreement, shall be governed by the agreement but may

not be less than 25% of gross interactive gaming revenue derived

from registered players located in this Commonwealth.

(d) Deposit of funds.--The tax imposed under subsection (a)

or (c) shall be collected by the department for deposit as

follows:

(1) Sixty percent of the tax imposed shall be deposited

into the Property Tax Relief Fund.

(2) Twenty percent of the tax imposed shall be deposited

in a restricted account with the Commonwealth Financing

Authority to be used for grants for projects in the public

interest located in counties contiguous to counties hosting a

Category 1, 2 or 3 licensed facility.

(3) Twenty percent of the tax imposed shall be deposited

in a restricted account with the Commonwealth Financing

Authority to be used for grants for projects in the public

interest located in any county in this Commonwealth.

§ 13B53. (Reserved).

§ 13B54. Compulsive and problem gambling.

The following shall apply:

(1) Each year, from the tax imposed in section 13B52

(relating to interactive gaming tax), $2,000,000 or an amount

equal to 0.002 multiplied by the total gross interactive

gaming revenue of all active and operating interactive gaming

certificate holders shall be transferred into the Compulsive

and Problem Gambling Treatment Fund established in section

1509 (relating to compulsive and problem gambling program).

(2) Each year, from the tax imposed in section 13B52, an

amount equal to 0.002 multiplied by the total gross

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interactive gaming revenue of all active and operating

interactive gaming certificate holders shall be transferred

to the Department of Health to be used for drug and alcohol

addiction treatment services, including treatment for drug

and alcohol addiction related to compulsive and problem

gambling, as set forth in section 1509.1 (relating to drug

and alcohol treatment).

SUBCHAPTER G

MISCELLANEOUS PROVISIONS

Sec.

13B61. Participation in interactive gaming by persons outside

Commonwealth.

13B62. Institutional investors.

13B63. Internet cafes and prohibition.

§ 13B61. Participation in interactive gaming by persons outside

Commonwealth.

Notwithstanding any other provision of this chapter to the

contrary, an interactive gaming certificate holder may accept

interactive gaming wagers from a person who is not physically

present in this Commonwealth if the board determines the

following:

(1) Participation in interactive gaming and acceptance

of wagers associated with interactive gaming from a person

not physically present in this Commonwealth is not

inconsistent with Federal law or regulation or the law or

regulation of the jurisdiction, including any foreign

jurisdiction, in which the person is located.

(2) Participation in interactive gaming is conducted

pursuant to an interactive gaming reciprocal agreement

between the Commonwealth and another state or jurisdiction,

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including a foreign jurisdiction, to which the Commonwealth

is a party and the interactive gaming reciprocal agreement is

not inconsistent with Federal law or regulation.

§ 13B62. Institutional investors.

(a) Declaration of investment intent.--Notwithstanding any

other provision of this part, the following shall apply:

(1) An institutional investor holding 20% or less of the

equity securities of an interactive gaming certificate

holder's, interactive gaming operator's or applicant's

holding, subsidiary or intermediary companies shall be

granted a waiver of any investigation of suitability or other

requirement if the securities are those of a corporation,

whether publicly traded or privately held, and the holdings

of the securities were purchased for investment purposes

only. The institutional investor shall file a certified

statement that it has no intention of influencing or

affecting the affairs of the interactive gaming certificate

holder, interactive gaming operator, applicant or any

holding, subsidiary or intermediary company of an interactive

gaming certificate holder, interactive gaming operator or

applicant. However, an institutional investor shall be

permitted to vote on matters put to the vote of the

outstanding security holders.

(2) The board may grant a waiver to an institutional

investor holding a higher percentage of securities upon a

showing of good cause and if the conditions specified in

paragraph (1) are met.

(3) An institutional investor granted a waiver under

this subsection who subsequently decides to influence or

affect the affairs of an interactive gaming certificate

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holder, interactive gaming operator or applicant's holding,

subsidiary or intermediary company of an interactive gaming

certificate holder, interactive gaming operator or applicant

shall provide not less than 30 days' notice of intent and

shall file with the board a request for determination of

suitability before taking any action that may influence or

affect the affairs of the issuer. An institutional investor

shall be permitted to vote on matters put to the vote of the

outstanding security holders.

(4) If an institutional investor changes its investment

intent or if the board finds reasonable cause to believe that

the institutional investor may be found unsuitable, no action

other than divestiture shall be taken by the institutional

investor with respect to its security holdings until there

has been compliance with any requirements established by the

board, which may include the execution of a trust agreement

in accordance with section 1332 (relating to appointment of

trustee).

(5) The interactive gaming certificate holder or

interactive gaming operator or applicant or any holding,

intermediary or subsidiary company of an interactive gaming

certificate holder, interactive gaming operator or applicant

shall notify the board immediately of any information about,

or actions of, an institutional investor holding its equity

securities where the information or action may impact the

eligibility of the institutional investor for a waiver under

this subsection.

(b) Failure to declare.--If the board finds:

(1) that an institutional investor holding any security

of a holding or intermediary company of an interactive gaming

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certificate holder or interactive gaming operator or

applicant or, where relevant, of another subsidiary company

of a holding or intermediary company of an interactive gaming

certificate holder or interactive gaming operator or

applicant which is related in any way to the financing of the

interactive gaming certificate holder or interactive gaming

operator or applicant, fails to comply with the provisions of

subsection (a); or

(2) by reason of the extent or nature of its holdings,

an institutional investor is in a position to exercise such a

substantial impact upon the controlling interests of an

interactive gaming certificate holder or interactive gaming

operator or applicant that investigation and determination of

suitability of the institutional investor is necessary to

protect the public interest;

then the board may take any necessary action otherwise

authorized under this chapter to protect the public interest.

§ 13B63. Internet cafes and prohibition.

(a) General rule.--No organization or commercial enterprise

shall operate a place of public accommodation, club, including a

club or association limited to dues-paying members or similar

restricted groups, or similar establishment in which computer

terminals or similar access devices are advertised or made

available to be used principally for the purpose of accessing

authorized interactive games. No interactive gaming certificate

holder or interactive gaming operator shall offer or make

available computer terminals or similar access devices to be

used principally for the purpose of accessing interactive games

at a licensed facility.

(b) Construction.--Nothing in this section shall be

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construed to require the owner or operator of a hotel or motel

or other public place of general use in this Commonwealth to

prohibit or block guests from playing interactive games.

Section 21. Sections 1403, 1501(b) and 1509 (a.2), (c) and

(d.2) of Title 4 are amended to read:

§ 1403. Establishment of State Gaming Fund and net slot machine

revenue distribution.

(a) Fund established.--There is hereby established the State

Gaming Fund within the State Treasury.

(b) Slot machine tax.--The department shall determine and

each slot machine licensee shall pay a daily tax of 34% from its

daily gross terminal revenue from the slot machines in operation

at its facility and a local share assessment as provided in

subsection (c). All funds owed to the Commonwealth, a county or

a municipality under this section shall be held in trust by the

licensed gaming entity for the Commonwealth, the county and the

municipality until the funds are paid or transferred to the

fund. Unless otherwise agreed to by the board, a licensed gaming

entity shall establish a separate bank account to maintain

gross terminal revenue until such time as the funds are paid or

transferred under this section. Moneys in the fund are hereby

appropriated to the department on a continuing basis for the

purposes set forth in subsection (c).

(1) Transfer the slot machine tax and assessment imposed

in subsection (b) to the fund.

(2) From the local share assessment established in

subsection (b), make quarterly distributions among the

counties hosting a licensed facility in accordance with the

following schedule:

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(i) If the licensed facility is a Category 1

licensed facility that is located at a harness racetrack

and the county, including a home rule county, in which

the licensed facility is located is:

(A) A county of the first class: 4% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

Notwithstanding any other provision to the contrary,

funds from licensed gaming entities located within a

county of the first class shall not be distributed

outside of a county of the first class.

(B) A county of the second class: 2% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

(D) (I) A county of the third class: Except as

provided in subclause (II), 2% of the gross

terminal revenue from each such licensed facility

shall be deposited into a restricted receipts

account to be established in the Commonwealth

Financing Authority to be used exclusively for

grants for projects in the public interest to

municipalities within the county where the

licensed facility is located.

20170SB0524PN0537 - 157 -

(I.1) Priority shall be given to multiyear

projects approved or awarded by the Department of

Community and Economic Development under

subclause (I) on or before the effective date of

this subclause.

(I.2) In addition to municipalities that are

eligible to receive grant funding under subclause

(I), a county redevelopment authority within the

county shall also be eligible to receive grant

funding to be used exclusively for economic

development projects or infrastructure. A county

redevelopment authority shall not be eligible to

receive more than 10% of the total grant funds

awarded.

(I.3) Notwithstanding the act of February 9,

1999 (P.L.1, No.1), known as the Capital

Facilities Debt Enabling Act, grants made under

subclause (I) may be utilized as local matching

funds for other grants or loans from the

Commonwealth.

(II) If a licensed facility is located in

one of two counties of the third class where a

city of the third class is located in both

counties of the third class, the county in which

the licensed facility is located shall receive

1.2% of the gross terminal revenue to be

distributed as follows: 20% to the host city,

30% to the host county and 50% to the host county

for the purpose of making municipal grants within

the county, with priority given to municipalities

20170SB0524PN0537 - 158 -

contiguous to the host city. The county of the

third class, which includes a city of the third

class that is located in two counties of the

third class and is not the host county for the

licensed facility, shall receive .8% of the gross

terminal revenue to be distributed as follows:

60% to a nonhost city of the third class located

solely in the nonhost county in which the host

city of the third class is also located or 60% to

the nonhost city of the third class located both

in the host and nonhost counties of the third

class, 35% to the nonhost county and 5% to the

nonhost county for the purpose of making

municipal grants within the county.

(E) A county of the fourth class: 2% of the

gross terminal revenue from each such licensed

facility shall be distributed as follows:

(I) The department shall make distributions

directly to each municipality within the county,

except the host municipality, by using a formula

equal to the sum of $25,000 plus $10 per resident

of the municipality using the most recent

population figures provided by the Department of

Community and Economic Development, provided,

however, that the amount so distributed to any

municipality shall not exceed 50% of its total

budget for fiscal year 2009 or 2013, whichever is

greater, adjusted for inflation in subsequent

fiscal years by an amount not to exceed an annual

cost-of-living adjustment calculated by applying

20170SB0524PN0537 - 159 -

any upward percentage change in the Consumer

Price Index immediately prior to the date the

adjustment is due to take effect. Distributions

to a municipality in accordance with this

subclause shall be deposited into a special fund

which shall be established by the municipality.

The governing body of the municipality shall have

the right to draw upon the special fund for any

lawful purpose provided that the municipality

identifies the fund as the source of the

expenditure. Each municipality shall annually

submit a report to the Department of Community

and Economic Development detailing the amount and

purpose of each expenditure made from the special

fund during the prior fiscal year.

(II) Any funds not distributed under

subclause (I) shall be deposited into a

restricted receipts account established in the

Department of Community and Economic Development

to be used exclusively for grants to the county,

to economic development authorities or

redevelopment authorities within the county for

grants for economic development projects,

infrastructure projects, job training, community

improvement projects, other projects in the

public interest, and necessary and reasonable

administrative costs. Notwithstanding the

provisions of [the act of February 9, 1999

(P.L.1, No.1), known as] the Capital Facilities

Debt Enabling Act, grants made under this clause

20170SB0524PN0537 - 160 -

may be utilized as local matching funds for other

grants or loans from the Commonwealth.

(F) Counties of the fifth through eighth

classes:

(I) Except as set forth in subclause (II),

2% of the gross terminal revenue from each such

licensed facility shall be deposited into a

restricted account established in the Department

of Community and Economic Development to be used

exclusively for grants to the county.

(II) If the licensed facility is located in

a second class township in a county of the fifth

class, 2% of the gross terminal revenue from the

licensed facility shall be distributed as

follows:

(a) 1% shall be deposited into a

restricted receipts account to be established

in the Commonwealth Financing Authority to be

used exclusively for grants for projects in

the public interest to municipalities within

the county where the licensed facility is

located.

(b) 1% shall be distributed to the county

for projects in the public interest in the

county.

(G) Any county not specifically enumerated in

clauses (A) through (F), 2% of the gross terminal

revenue to the county hosting the licensed facility

from each such licensed facility.

(ii) If the licensed facility is a Category 1

20170SB0524PN0537 - 161 -

licensed facility and is located at a thoroughbred

racetrack and the county in which the licensed facility

is located is:

(A) A county of the first class: 4% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

Notwithstanding any other provision to the contrary,

funds from licensed gaming entities located within

the county of the first class shall not be

distributed outside of a county of the first class.

(B) A county of the second class: 2% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

(D) A county of the third class: 1% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

Notwithstanding the provisions of the Capital

Facilities Debt Enabling Act, grants made under this

clause may be utilized as local matching funds for

20170SB0524PN0537 - 162 -

other grants or loans from the Commonwealth.

(E) A county of the fourth class: 2% of the

gross terminal revenue from each such licensed

facility shall be deposited into a restricted account

established in the Department of Community and

Economic Development to be used exclusively for

grants to the county, to economic development

authorities or redevelopment authorities within the

county for grants for economic development projects,

community improvement projects, job training, other

projects in the public interest and reasonable

administrative costs. Notwithstanding the Capital

Facilities Debt Enabling Act, grants made under this

clause may be utilized as local matching funds for

other grants or loans from the Commonwealth.

(F) Counties of the fifth through eighth

classes: 2% of the gross terminal revenue from each

such licensed facility shall be deposited into a

restricted account established in the Department of

Community and Economic Development to be used

exclusively for grants to the county.

(G) Any county not specifically enumerated in

clauses (A) through (F), 2% of the gross terminal

revenue to the county hosting the licensed facility

from each such licensed facility.

(iii) If the facility is a Category 2 licensed

facility and if the county in which the licensed facility

is located is:

(A) A county of the first class: 4% of the

gross terminal revenue to the county hosting the

20170SB0524PN0537 - 163 -

licensed facility from each such licensed facility.

Notwithstanding any other provision to the contrary,

funds from licensed gaming entities located within a

county of the first class shall not be distributed

outside of a county of the first class. The first

$5,000,000 from each licensed facility of the total

amount distributed annually to the county of the

first class shall be distributed to the Philadelphia

School District.

(B) A county of the second class: 2% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

(D) A county of the third class: 1% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

(D.1) If a licensed facility is located in one

of two counties of the third class where a city of

the third class is located in both counties of the

third class, the county in which the licensed

20170SB0524PN0537 - 164 -

facility is located shall receive 1.2% of the gross

terminal revenue to be distributed as follows: 20%

to the host city, 30% to the host county and 50%,

which shall be deposited into a restricted receipts

account to be established in the Commonwealth

Financing Authority to be used exclusively for

economic development projects, community improvement

projects and other projects in the public interest

within the county, to the host county [for the

purpose of making municipal grants within the

county], with priority given to municipalities

contiguous to the host city. The county of the third

class, which includes a city of the third class that

is located in two counties of the third class and is

not the host county for the licensed facility, shall

receive .8% of the gross terminal revenue to be

distributed as follows: 60% to a nonhost city of the

third class located solely in the nonhost county in

which the host city of the third class is also

located or 60% to the nonhost city of the third class

located both in the host and nonhost counties of the

third class, 35% to the nonhost county and 5%, which

shall be deposited into a restricted receipts account

to be established in the Commonwealth Financing

Authority to be used exclusively for economic

development projects, community improvement projects

and other projects in the public interest within the

county, to the nonhost county [for the purpose of

making municipal grants within the county].

(E) A county of the fourth class: 2% of the

20170SB0524PN0537 - 165 -

gross terminal revenue from each such licensed

facility shall be deposited into a restricted account

established in the Department of Community and

Economic Development to be used exclusively for

grants to the county, to economic development

authorities or redevelopment authorities within the

county for grants for economic development projects,

community improvement projects, job training, other

projects in the public interest and reasonable

administrative costs. Notwithstanding the Capital

Facilities Debt Enabling Act, grants made under this

clause may be utilized as local matching funds for

other grants or loans from the Commonwealth.

(F) Counties of the fifth class: 2% of the

gross terminal revenue from each such licensed

facility shall be deposited and distributed as

follows:

(I) One percent to be distributed as

follows:

(a) Beginning in 2010, the sum of

$2,400,000 annually for a period of 20 years

to the county for purposes of funding debt

service related to the construction of a

community college campus located within the

county.

(b) Any funds not distributed under

subclause (a) shall be deposited into a

restricted receipts account to be established

in the Commonwealth Financing Authority to be

used exclusively for grants within the county

20170SB0524PN0537 - 166 -

for economic development projects, road

projects located within a 20-mile radius of

the licensed facility and located within the

county, community improvement projects and

other projects in the public interest within

the county. The amount under this subclause

includes reasonable administrative costs.

(II) One percent shall be deposited into a

restricted receipts account to be established in

the Commonwealth Financing Authority to be used

exclusively for grants within contiguous counties

for economic development projects, community

improvement projects and other projects in the

public interest within contiguous counties. The

amount under this subclause includes reasonable

administrative costs. A contiguous county that

hosts a Category 1 licensed facility shall be

ineligible to receive grants under this

subclause.

(II.1) Priority shall be given to multiyear

projects approved or awarded by the Department of

Community and Economic Development under

subclause (I)(b) or (II) on or before the

effective date of this subclause.

(III) Fifty percent of any revenue required

to be transferred under paragraph (3)(v) shall be

deposited into the restricted receipts account

established under subclause (I)(b), and 50% shall

be deposited into the restricted receipts account

established under subclause (II). Notwithstanding

20170SB0524PN0537 - 167 -

the Capital Facilities Debt Enabling Act, grants

made under this clause may be utilized as local

matching funds for other grants or loans from the

Commonwealth.

(G) Any county not specifically enumerated in

clauses (A) through (F), 2% of the gross terminal

revenue to the county hosting the licensed facility

from each such licensed facility.

(iv) (A) Except as provided in clause (B) or (C),

if the facility is a Category 3 licensed facility, 2%

of the gross terminal revenue from the licensed

facility shall be deposited into a restricted

receipts account established in the Department of

Community and Economic Development to be used

exclusively for grants to the county, to economic

development authorities or redevelopment authorities

within the county for grants for economic development

projects, community improvement projects and other

projects in the public interest.

(B) If the facility is a Category 3 licensed

facility located in a county of the second class A,

2% of the gross terminal revenue [from the licensed

facility shall be deposited into a restricted

receipts account to be established in the

Commonwealth Financing Authority to be used

exclusively for grants or guarantees for projects in

the host county that qualify under 64 Pa.C.S. §§ 1551

(relating to Business in Our Sites Program), 1556

(relating to Tax Increment Financing Guarantee

Program) and 1558 (relating to Water Supply and

20170SB0524PN0537 - 168 -

Wastewater Infrastructure Program).] to the county

hosting the licensed facility from each such licensed

facility shall be deposited as follows:

(I) Seventy-five percent shall be deposited

for the purpose of supporting the maintenance and

refurbishment of the parks and heritage sites

throughout the county in which the licensed

facility is located.

(II) Twelve and one-half percent shall be

deposited for the purpose of supporting a child

advocacy center located within the county in

which the licensed facility is located.

(III) Twelve and one-half percent shall be

deposited for the purpose of supporting an

organization providing comprehensive support

services to victims of domestic violence,

including legal and medical aid, shelters,

transitional housing and counseling located

within the county in which the licensed facility

is located.

facility located in a county of the fifth class that

is contiguous to a county of the seventh class, 2% of

the gross terminal revenue from the licensed facility

shall be deposited into a restricted receipts account

to be established in the Commonwealth Financing

Authority to be used exclusively for grants within

the county for economic development projects,

infrastructure projects, community improvement

projects and other projects in the public interest

20170SB0524PN0537 - 169 -

within the county and for infrastructure projects

within a 20-mile radius of the licensed facility in a

contiguous county of the seventh class.

(v) Unless otherwise specified, for the purposes of

this paragraph money designated for municipal grants

within a county, other than a county of the first class,

in which a licensed facility is located shall be used to

fund grants to the municipality in which the licensed

facility is located, to the county in which the licensed

facility is located and to the municipalities which are

contiguous to the municipality in which the licensed

facility is located and which are located within the

county in which the licensed facility is located. Grants

shall be administered by the county through its economic

development or redevelopment authority in which the

licensed facility is located. Grants shall be used to

fund the costs of human services, infrastructure

improvements, facilities, emergency services, health and

public safety expenses associated with licensed facility

operations. If at the end of a fiscal year uncommitted

funds exist, the county shall pay to the economic

development or redevelopment authority of the county in

which the licensed facility is located the uncommitted

funds.

(vi) If the licensed facility is located in more

than one county, the amount available shall be

distributed on a pro rata basis determined by the

percentage of acreage located in each county to the total

acreage of all counties occupied by the licensed

facility.

20170SB0524PN0537 - 170 -

(vii) The distributions provided in this paragraph

shall be based upon county classifications in effect on

the effective date of this section. Any reclassification

of counties as a result of a Federal decennial census or

of a State statute shall not apply to this subparagraph.

(viii) If any provision of this paragraph is found

to be unenforceable for any reason, the distribution

provided for in the unenforceable provision shall be made

to the county in which the licensed facility is located

for the purposes of grants to municipalities in that

county, including municipal grants as specified in

subparagraph (v).

(ix) Nothing in this paragraph shall prevent any of

the above counties which directly receive a distribution

under this section from entering into intergovernmental

cooperative agreements with other jurisdictions for

sharing this money.

(3) From the local share assessment established in

subsection (b) and the slot machine operation fees imposed

under section 1326.1 (relating to slot machine license

operation fee) and deposited under section 1326.1(d), make

quarterly distributions among the municipalities, including

home rule municipalities, hosting a licensed facility in

accordance with the following schedule:

(i) To a city of the second class hosting a licensed

facility, other than a Category 3 licensed facility, [2%

of the gross terminal revenue or] $10,000,000 annually[,

whichever is greater, shall be paid by each licensed

gaming entity operating a facility located in that city.

In the event that the revenues generated by the 2% do not

20170SB0524PN0537 - 171 -

meet the $10,000,000 minimum specified in this

subparagraph, the department shall collect the remainder

of the minimum amount of $10,000,000 from each licensed

gaming entity operating a facility in the city and

deposit that amount in the city treasury] shall be

distributed to the city treasury.

(ii) To a city of the second class A hosting a

licensed facility, other than a Category 3 licensed

facility, [2% of the gross terminal revenue or

$10,000,000 annually, whichever is greater, shall be paid

by each licensed entity operating a licensed facility

located in that city] $10,000,000 annually shall be

distributed to the city, subject, however, to the

budgetary limitation in this subparagraph. The amount

allocated to the designated municipalities shall not

exceed 50% of their total budget for fiscal year 2003-

2004, adjusted for inflation in subsequent years by an

amount not to exceed an annual cost-of-living adjustment

calculated by applying the percentage change in the

Consumer Price Index immediately prior to the date the

adjustment is due to take effect. Any remaining moneys

shall be [collected by the department from each licensed

gaming entity and] distributed in accordance with

paragraph (2) based upon the classification of county

where the licensed facility is located. [In the event

that the revenues generated by the 2% do not meet the

$10,000,000 minimum specified in this subparagraph, the

department shall collect the remainder of the minimum

amount of $10,000,000 from each licensed gaming entity

operating a facility in the city, pay any balance due to

20170SB0524PN0537 - 172 -

the city and transfer any remainder in accordance with

paragraph (2).]

(iii) To a city of the third class hosting a

licensed facility, other than a Category 3 licensed

facility, [2% of the gross terminal revenue or

$10,000,000 annually, whichever is greater, shall be paid

by each licensed gaming entity operating a licensed

facility located in that city] $10,000,000 annually , less

any amount up to $5,000,000 received pursuant to a

written agreement with a licensed gaming entity executed

prior to the effective date of this part, shall be

distributed to the city, subject, however, to the

budgetary limitation in this subparagraph. In the event

that the city has a written agreement with a licensed

gaming entity executed prior to the effective date of

this part, the amount paid under the agreement to the

city shall be applied and credited [to the difference

between 2% of the gross terminal revenue and the

$10,000,000 owed under this subparagraph if the 2% of the

gross terminal revenue is less than $10,000,000. If 2% of

the gross terminal revenue is greater than the

$10,000,000 required to be paid under this subparagraph,

the credit shall not apply. The amount of gross terminal

revenue required to be paid pursuant to the agreement

shall be deemed to be gross terminal revenue for purposes

of this subparagraph.], up to $5,000,000, to the slot

machine license operation fee owed under section 1326.1.

The amount allocated to the designated municipalities

shall not exceed 50% of their total budget for fiscal

year 2003-2004, adjusted for inflation in subsequent

20170SB0524PN0537 - 173 -

years by an amount not to exceed an annual cost-of-living

adjustment calculated by applying the percentage change

in the Consumer Price Index immediately prior to the date

the adjustment is due to take effect. Any remaining

moneys shall be [collected by the department from each

licensed gaming entity and] distributed in accordance

with paragraph (2) based upon the classification of

county where the licensed facility is located. [In the

event that the revenues generated by the 2% do not meet

the $10,000,000 minimum specified in this subparagraph,

the department shall collect the remainder of the minimum

amount of $10,000,000 from each licensed gaming entity

operating a facility, pay any balance due to the city of

the third class and transfer any remainder in accordance

with paragraph (2).]

(iii.1) If a licensed facility is located in a city

of the third class and the city is located in more than

one county of the third class, [2% of the gross terminal

revenue or $10,000,000 annually, whichever is greater,]

$10,000,000 annually shall be distributed as follows:

80% to the host city and 20% to the city of the third

class located solely in a nonhost county in which the

host city of the third class is also located. If a

licensed facility is located in a city of the third class

and that city is located solely in a host county of the

third class in which a nonhost city of the third class is

also located[, 2% of gross terminal revenue or

$10,000,000 annually, whichever is greater], $10,000,000

annually shall be distributed as follows: 80% to the

host city and 20% to a city of the third class located

20170SB0524PN0537 - 174 -

both in a nonhost county of the third class and in a host

county of the third class in which the host city of the

third class is located.

(iv) To a township of the first class hosting a

licensed facility, other than a Category 3 licensed

facility, [2% of the gross terminal revenue or

$10,000,000 annually, whichever is greater, shall be paid

by each licensed gaming entity operating a licensed

facility located in the township] $10,000,000 annually

shall be distributed to the township, subject, however,

to the budgetary limitation in this subparagraph. The

amount allocated to the designated municipalities shall

not exceed 50% of their total budget for fiscal year

2003-2004, adjusted for inflation in subsequent years by

an amount not to exceed an annual cost-of-living

adjustment calculated by applying the percentage change

in the Consumer Price Index immediately prior to the date

the adjustment is due to take effect. Any remaining money

shall be [collected by the department from each licensed

gaming entity and] distributed in accordance with

paragraph (2) based upon the classification of county

where the licensed facility is located. [In the event

that the revenues generated by the 2% do not meet the

$10,000,000 minimum specified in this subparagraph, the

department shall collect the remainder of the minimum

amount of $10,000,000 from each licensed gaming entity

operating a licensed facility in the township, pay any

balance due to the township and transfer any remainder in

accordance with paragraph (2).]

(v) To a township of the second class hosting a

20170SB0524PN0537 - 175 -

licensed facility:

(A) [2% of the gross terminal revenue or

$10,000,000 annually, whichever is greater, shall be

paid by each licensed gaming entity operating a

licensed facility, other than a Category 3 licensed

facility or a licensed facility owning land adjacent

to the licensed facility located in more than one

township of the second class,] $10,000,000 annually

shall be distributed to the township of the second

class hosting [the] a licensed facility, other than a

Category 3 licensed facility or a licensed facility

located in more than one township of the second

class, subject, however, to the budgetary limitation

in this subparagraph. The amount allocated to the

designated municipalities shall not exceed 50% of

their total budget for fiscal year 2003-2004,

adjusted for inflation in subsequent years by an

amount not to exceed an annual cost-of-living

adjustment calculated by applying the percentage

change in the Consumer Price Index immediately prior

to the date the adjustment is due to take effect. Any

remaining money shall be [collected by the department

from each licensed gaming entity and] distributed in

accordance with paragraph (2) based upon the

classification of county where the licensed facility

is located. [If revenues generated by the 2% do not

meet the $10,000,000 minimum specified in this

subparagraph, the department shall collect the

remainder of the minimum amount of $10,000,000 from

each licensed gaming entity operating a licensed

20170SB0524PN0537 - 176 -

facility in the township, pay any balance due to the

township and transfer any remainder in accordance

with paragraph (2).]

(B) [2% of the gross terminal revenue or

$10,000,000 annually, whichever is greater,]

$10,000,000 annually, less the amount paid under

clause (C), shall be [paid by each licensed gaming

entity operating a licensed facility and owning land

adjacent to the licensed facility located in more

than one township of the second class, other than a

Category 3 licensed facility,] distributed to the

township of the second class hosting [the] a licensed

facility which owns land adjacent to the licensed

facility located in more than one township of the

second class, other than a Category 3 licensed

facility, subject, however, to the budgetary

limitation in this subparagraph. The amount allocated

to the designated municipalities may not exceed 50%

of their total budget for the fiscal year 2003-2004,

adjusted for inflation in subsequent years by an

amount not to exceed an annual cost-of-living

adjustment calculated by applying the percentage

change in the Consumer Price Index immediately prior

to the date the adjustment is due to take effect. Any

remaining money shall be [collected by the department

from each licensed gaming entity and] distributed in

accordance with paragraph (2) based upon the

classification of the county where the licensed

facility is located. The county commissioners of a

county of the third class in which the licensed

20170SB0524PN0537 - 177 -

facility is located shall appoint an advisory

committee for the purpose of advising the county as

to the need for municipal grants for health, safety,

transportation and other projects in the public

interest to be comprised of two individuals from the

host municipality, two from contiguous municipalities

within the county of the third class and one from the

host county. [In the event that the revenues

generated by the 2% do not meet the $10,000,000

minimum specified in this subparagraph, the

department shall collect the remainder of the minimum

amount of $10,000,000 from each licensed gaming

entity operating a licensed facility in the township,

pay any balance due to the township and transfer any

remainder in accordance with paragraph (2).]

licensed gaming entity operating a licensed facility

and owning land adjacent to the licensed facility

located in more than one township of the second

class, other than a Category 3 licensed facility, to

the township of the second class that is located in a

county of the fifth class in which the adjacent land

is located, including racetracks, grazing fields or

any other adjoining real property.] For land owned by

a licensed gaming entity, other than a Category 3

licensed facility, and located in more than one

township of the second class: $160,000 shall be

distributed annually to the township of the second

class which is located in a county of the fifth class

if the land owned, including racetracks, grazing

20170SB0524PN0537 - 178 -

fields and other adjoining real property, is adjacent

to the licensed facility.

(vi) To a borough hosting a licensed facility, other

than a Category 3 licensed facility, [2% of the gross

terminal revenue or $10,000,000 annually, whichever is

greater, shall be paid by each licensed gaming entity

operating a licensed facility located in that borough,]

$10,000,000 annually shall be distributed to the borough,

subject, however, to the budgetary limitation in this

subparagraph. The amount allocated to the designated

municipalities shall not exceed 50% of their total budget

for fiscal year 2003-2004, adjusted for inflation in

subsequent years by an amount not to exceed an annual

cost-of-living adjustment calculated by applying the

percentage change in the Consumer Price Index immediately

prior to the date the adjustment is due to take effect.

Any remaining money shall be [collected by the department

from each licensed gaming entity and] distributed in

accordance with paragraph (2) based upon the

classification of county where the licensed facility is

located. [In the event that the revenues generated by the

2% do not meet the $10,000,000 minimum specified in this

subparagraph, the department shall collect the remainder

of the minimum amount of $10,000,000 from each licensed

gaming entity operating a licensed facility in the

borough, pay any balance due to the borough and transfer

any remainder in accordance with paragraph (2).]

(vii) To an incorporated town hosting a licensed

facility, other than a Category 3 licensed facility, [2%

of the gross terminal revenue or $10,000,000 annually,

20170SB0524PN0537 - 179 -

whichever is greater, shall be paid by each licensed

entity operating a licensed facility located in the

town,] $10,000,000 annually shall be distributed to the

incorporated town, subject, however, to the budgetary

limitation in this subparagraph. The amount allocated to

the designated municipalities shall not exceed 50% of

their total budget for fiscal year 2003-2004, adjusted

for inflation in subsequent years by an amount not to

exceed an annual cost-of-living adjustment calculated by

applying the percentage change in the Consumer Price

Index immediately prior to the date the adjustment is due

to take effect. Any remaining money shall be [collected

by the department from each licensed gaming entity and]

distributed in accordance with paragraph (2) based upon

the classification of county where the licensed facility

is located. [In the event that the revenues generated by

the 2% do not meet the $10,000,000 minimum specified in

this subparagraph, the department shall collect the

remainder of the minimum amount of $10,000,000 from each

licensed gaming entity operating a licensed facility in

the incorporated town, pay any balance due to the town

and transfer any remainder in accordance with paragraph

(2).]

(viii) (A) Except as provided in clause (B) or (C),

to a municipality of any class hosting a Category 3

facility, 2% of the gross terminal revenue from the

Category 3 licensed facility located in the

municipality, subject, however, to the budgetary

limitation in this clause. The amount allocated to

the designated municipalities shall not exceed 50% of

20170SB0524PN0537 - 180 -

their total budget for fiscal year 2009, adjusted for

inflation in subsequent years by an amount not to

exceed an annual cost-of-living adjustment calculated

by applying the percentage change in the Consumer

Price Index immediately prior to the date the

adjustment is due to take effect. Any remaining money

shall be collected by the department from each

licensed gaming entity and distributed in accordance

with paragraph (2) based upon the classification of

county where the licensed facility is located.

(B) If the municipality hosting a Category 3

licensed facility is a borough located in a county of

the third class and the borough is contiguous to a

city of the third class, 1% of gross terminal revenue

shall be distributed to the host borough and 1% of

gross terminal revenue shall be distributed to the

city of the third class that is contiguous to the

host borough, subject, however, to the budgetary

limitation in this clause. The amount allocated to

each designated municipality shall not exceed 50% of

its total budget for fiscal year 2009, adjusted for

inflation in subsequent years by an amount not to

exceed an annual cost-of-living adjustment calculated

by applying the percentage increase, if any, in the

Consumer Price Index immediately prior to the date

the adjustment is due to take effect. Any remaining

money shall be collected by the department from each

licensed gaming entity and distributed in accordance

with paragraph (2) based upon the classification of

county where the licensed facility is located.

20170SB0524PN0537 - 181 -

licensed facility is a township of the second class

in a county of the fifth class which is contiguous to

a county of the seventh class, 2% of the gross

terminal revenue from the Category 3 licensed

facility located in the municipality shall be

distributed to the municipality, subject, however, to

the budgetary limitation in this clause. The amount

allocated to the designated municipalities shall not

exceed the lesser of $1,000,000 or 50% of their total

budget for fiscal year 2009, adjusted for inflation

in subsequent years by an amount not to exceed an

annual cost-of-living adjustment calculated by

applying the percentage change in the Consumer Price

Index immediately prior to the date the adjustment is

due to take effect. Any remaining money shall be

collected by the department from each licensed gaming

entity and distributed in equal amounts to each

municipality contiguous to the host municipality.

However, the amount to be allocated to any contiguous

municipality shall not exceed the lesser of

$1,000,000 or 50% of the municipality's total budget

for fiscal year 2009, adjusted for inflation in

subsequent years by an amount not to exceed an annual

cost-of-living adjustment calculated by applying the

percentage change in the Consumer Price Index

immediately prior to the date the adjustment is due

to take effect. Any money remaining following

distribution to contiguous municipalities shall be

collected by the department and distributed in

20170SB0524PN0537 - 182 -

accordance with paragraph (2) based upon the

classification of county where the licensed facility

is located.

(ix) [Any municipality not specifically enumerated

in subparagraphs (i) through (viii),] To any

municipality, except for a city of the first class, not

specifically enumerated in subparagraphs (i), (ii),

(iii), (iii.1), (iv), (v), (vi), (vii) and (viii) hosting

a licensed facility, other than a Category 3 licensed

facility, $10,000,000 annually shall be distributed to

the host municipality. To any municipality not enumerated

in subparagraphs (i), (ii), (iii), (iii.1), (iv), (v),

(vi), (vii) and (viii) hosting a Category 3 licensed

facility, 2% of the gross terminal revenue to the

municipality hosting the Category 3 licensed facility

from each such Category 3 licensed facility.

(x) If the licensed facility is located in more than

one municipality, the amount available shall be

distributed on a pro rata basis determined by the

percentage of acreage located in each municipality to the

total acreage of all municipalities occupied by the

licensed facility.

(xi) If the licensed facility is located at a resort

which is also an incorporated municipality, such

municipality shall not be eligible to receive any

distribution under this paragraph. The distribution it

would have otherwise been entitled to under this

paragraph shall instead be distributed in accordance with

paragraph (2) based upon the county where the licensed

facility is located.

20170SB0524PN0537 - 183 -

(xii) The distributions provided in this paragraph

shall be based upon municipal classifications in effect

on the effective date of this section. For the purposes

of this paragraph, any reclassification of municipalities

as a result of a Federal decennial census or of a State

statute shall not apply to this paragraph.

(xiii) If any provision of this paragraph is found

to be unenforceable for any reason, the distribution

provided for in such unenforceable provision shall be

made to the municipality in which the licensed facility

is located.

(xiv) Nothing in this paragraph shall prevent any of

the above municipalities from entering into

intergovernmental cooperative agreements with other

jurisdictions for sharing this money.

(xv) Notwithstanding any other law, agreement or

provision in this part to the contrary, all revenues

provided, directed or earmarked under this section to or

for the benefit of a city of the second class in which an

intergovernmental cooperation authority has been

established and is in existence pursuant to the act of

February 12, 2004 (P.L.73, No.11), known as the

Intergovernmental Cooperation Authority Act for Cities of

the Second Class, shall be directed to and under the

exclusive control of such intergovernmental cooperation

authority to be used:

(A) to reduce the debt of the second class city;

(B) to increase the level of funding of the

municipal pension funds of the second class city; or

20170SB0524PN0537 - 184 -

in the best interest of the second class city by such

intergovernmental cooperation authority. Such

revenues shall not be directed to or under the

control of such city of the second class or any

coordinator appointed pursuant to the act of July 10,

1987 (P.L.246, No.47), known as the Municipalities

Financial Recovery Act, for such city of the second

class.

(d) Consumer Price Index.--For purposes of subsection (c),

references to the Consumer Price Index shall mean the Consumer

Price Index for All Urban Consumers for the Pennsylvania, New

Jersey, Delaware and Maryland area for the most recent 12-month

period for which figures have been officially reported by the

United States Department of Labor, Bureau of Labor Statistics.

(e) Reporting.--

(1) In cooperation with the department and the

Commonwealth Financing Authority, the Department of Community

and Economic Development shall submit an annual report on all

distributions of local share assessments and slot machine

license operation fees to counties and municipalities under

this section to the chairman and minority chairman of the

Appropriations Committee of the Senate, the chairman and

minority chairman of the Community, Economic and Recreational

Development Committee of the Senate, the chairman and

minority chairman of the Appropriations Committee of the

House of Representatives and the chairman and minority

chairman of the Gaming Oversight Committee of the House of

Representatives. The report shall be submitted by [August 31,

2010] March 31, 2018, and by [August] March 31 of each year

thereafter.

20170SB0524PN0537 - 185 -

(2) All counties and municipalities receiving

distributions of local share assessments or slot machine

license operation fees under this section shall submit

information to the Department of Community and Economic

Development on a form prepared by the Department of Community

and Economic Development that sets forth the amount and use

of the funds received in the prior calendar year. The form

shall set forth whether the funds received were deposited in

the county's or municipality's General Fund or committed to a

specific project or use.

(f) Prohibited activities.--

(1) A person or its affiliated entity or a political

subdivision shall not compensate or incur an obligation to

compensate a person to engage in lobbying for compensation

contingent in whole or in part upon the approval, award,

receipt or denial of funds under this section. A person or

its affiliated entity shall not engage in or agree to engage

in lobbying for compensation contingent in whole or in part

upon the approval, award, receipt or denial of funds under

this section. This subsection shall not apply to a county or

municipality that compensates a person to prepare a grant

application for funds under this section if the following

requirements are met:

(i) The person is not identified in the application.

(ii) The person has no direct contact with the

agency, county or municipality providing the funding.

(iii) The person is paid a fixed fee or percentage

of the amount of any funds approved, awarded or received

up to .5%.

(2) A violation of this section shall be considered an

20170SB0524PN0537 - 186 -

intentional violation of 65 Pa.C.S. § 13A09(e) (relating to

penalties).

§ 1501. Responsibility and authority of department.

* * *

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

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

regulations shall be applied without retroactive effect. The

department shall have authority to prescribe the forms and the

system of accounting and recordkeeping to be employed and

through its representative shall at all times have power of

access to and examination and audit of any equipment and records

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

table games and interactive gaming under this part.

* * *

§ 1509. Compulsive and problem gambling program.

* * *

(a.2) Duties of Department of Health and board.--[Within 60

days following the effective date of this subsection, the] The

Department of [Health's Bureau of] Health, the Department of

Drug and Alcohol Programs and the board's Office of Compulsive

and Problem Gambling shall jointly collaborate with other

appropriate offices and agencies of State or local government,

including single county authorities, and providers and other

persons, public or private, with expertise in compulsive and

problem gambling treatment to do the following:

(1) Implement a strategic plan for the prevention and

treatment of compulsive and problem gambling.

(2) Adopt compulsive and problem gambling treatment

standards to be integrated with the [Bureau] Department of

Drug and Alcohol Program's uniform Statewide guidelines that

20170SB0524PN0537 - 187 -

govern the provision of addiction treatment services.

(3) Develop a method to coordinate compulsive and

problem gambling data collection and referral information to

crisis response hotlines, child welfare and domestic violence

programs and providers and other appropriate programs and

providers.

(4) Develop and disseminate educational materials to

provide public awareness related to the prevention,

recognition and treatment of compulsive and problem gambling.

(5) Develop demographic-specific compulsive and problem

gambling prevention, intervention and treatment programs.

(6) Prepare an itemized budget outlining how funds will

be allocated to fulfill the responsibilities under this

section.

* * *

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

telephone number to be used to provide persons with

information on assistance for compulsive or problem gambling.

Each licensee shall conspicuously post at least 20 signs

similar to the following statement:

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

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

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

exit, within 50 feet of each automated teller machine

location within the licensed facility and in other

appropriate public areas of the licensed facility as

determined by the slot machine licensee.

(2) Each racetrack where slot machines or table games

are operated shall print a statement on daily racing programs

20170SB0524PN0537 - 188 -

provided to the general public that is similar to the

following:

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

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

(2.1) Each interactive gaming certificate holder,

interactive gaming operator or other person that operates

interactive gaming or an interactive gaming system on behalf

of an interactive gaming certificate holder:

(i) Shall cause the words:

If you or someone you know has a gambling problem,

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

or some comparable language approved by the board, which

language shall include the words "gambling problem" and

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

displayed to any person visiting or logged onto the

interactive gaming certificate holder's interactive

gaming skin or Internet website.

(ii) Shall provide a mechanism by which an

interactive gaming account holder may establish the

following controls on wagering activity through the

interactive gaming account:

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

specified period of time and the length of time the

account holder will be unable to participate in

gaming if the holder reaches the established loss

limit.

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

wager on any interactive game.

through the account for any number of hours or days.

20170SB0524PN0537 - 189 -

(iii) Shall not mail or otherwise forward any

gaming-related promotional material or e-mail to a

registered player during any period in which interactive

gaming through the registered player's interactive gaming

account has been suspended or terminated. The interactive

gaming certificate holder shall provide a mechanism by

which a registered player may change the controls, except

that, while interactive gaming through the interactive

gaming account is suspended, the registered player may

not change gaming controls until the suspension expires,

but the registered player shall continue to have access

to the account and shall be permitted to withdraw funds

from the account upon proper application for the funds to

the interactive gaming certificate holder.

(3) A [licensed facility] licensed gaming entity which

fails to post or print the warning sign in accordance with

paragraph (1) [or], (2) or (2.1)(i) shall be assessed a fine

of $1,000 a day for each day the minimum number of signs are

not posted or the required statement is not printed as

provided in this subsection.

(3.1) An interactive gaming certificate holder or

interactive gaming license holder, as the case may be, that

fails to establish the mechanisms, controls and systems in

accordance with paragraph (2.1)(ii) and (iii) shall be

assessed a fine of not less than $5,000 per day for each day

the mechanisms, controls and systems are not available to

interactive gaming account holders.

* * *

(d.2) Report.--[No later than October 1, 2010, and each]

Annually on October 1 [thereafter], the Department of Health, in

20170SB0524PN0537 - 190 -

consultation with the board, shall prepare and submit a report

on the impact of the programs funded by the Compulsive and

Problem Gambling Treatment Fund to the Governor and to the

members of the General Assembly. The report shall include

aggregate demographic-specific data, including race, gender,

geography and income of those individuals treated.

* * *

Section 22. Section 1512 of Title 4 is amended by adding a

subsection to read:

§ 1512. Financial and employment interests.

* * *

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

(1) Except as may be provided by rule or order of the

Pennsylvania Supreme Court and except as provided in section

1202.1 (relating to code of conduct) or 1512.1 (relating to

additional restrictions), no executive-level public employee,

public official or party officer or immediate family member

thereof shall hold, directly or indirectly, a financial

interest in, be employed by or represent, appear for or

negotiate on behalf of, or derive any remuneration, payment,

benefit or any other thing of value for any services,

including, but not limited to, consulting or similar services

from any holder of or applicant for an interactive gaming

certificate, holder or applicant for an interactive gaming

license or other authorization to conduct interactive gaming

or any holding, subsidiary or intermediary company with

respect thereto, or any business, association, enterprise or

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

purpose of promoting, advocating for or advancing the

interests of the interactive gaming industry generally or any

20170SB0524PN0537 - 191 -

interactive gaming-related business or businesses in

connection with any cause, application or matter. The

financial interest and employment prohibitions under this

paragraph shall remain in effect for one year following

termination of the individual's status as an executive-level

public employee, public official or party officer.

(2) Notwithstanding paragraph (1), a member of the

immediate family of an executive-level public employee,

public official or party officer may hold employment with the

holder of or applicant for an interactive gaming certificate,

holder or applicant for an interactive gaming license or

other authorization to conduct interactive gaming or any

holding, subsidiary or intermediary company with respect

thereto, if in the judgment of the State Ethics Commission or

the Supreme Court, as appropriate, employment will not

interfere with the responsibilities of the executive-level

public employee, public official or party officer and will

not create a conflict of interest or reasonable risk of the

public perception of a conflict of interest on the part of

the executive-level public employee, public official or party

officer.

* * *

Section 23. Sections 1513(a), 1514 heading, (a), (d), (e)

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

4 are amended to read:

§ 1513. Political influence.

(a) Contribution restriction.--The following persons shall

be prohibited from contributing any money or in-kind

contribution to a candidate for nomination or election to any

public office in this Commonwealth, or to any political party

20170SB0524PN0537 - 192 -

committee or other political committee in this Commonwealth or

to any group, committee or association organized in support of a

candidate, political party committee or other political

committee in this Commonwealth:

(1) An applicant for a slot machine license,

manufacturer license, supplier license, principal license,

key employee license, interactive gaming license or horse or

harness racing license.

(2) A slot machine licensee, licensed manufacturer,

licensed supplier, interactive gaming operator or licensed

racing entity.

(3) A licensed principal or licensed key employee of a

slot machine licensee, licensed manufacturer, licensed

supplier, interactive gaming operator or licensed racing

entity.

(4) An affiliate, intermediary, subsidiary or holding

company of a slot machine licensee, licensed manufacturer,

licensed supplier, interactive gaming operator or licensed

racing entity.

(5) A licensed principal or licensed key employee of an

affiliate, intermediary, subsidiary or holding company of a

slot machine licensee, licensed manufacturer, licensed

supplier, interactive gaming operator or licensed racing

entity.

(6) A person who holds a similar gaming license in

another jurisdiction and the affiliates, intermediaries,

subsidiaries, holding companies, principals or key employees

thereof.

* * *

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

20170SB0524PN0537 - 193 -

of access of certain persons.

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

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

ejected from any licensed facility or who may be denied access

to interactive gaming. The provisions shall define the standards

for exclusion and shall include standards relating to persons

who are career or professional offenders as defined by

regulations of the board or whose presence in a licensed

facility or whose access to interactive gaming would, in the

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

Commonwealth or of licensed gaming therein, or both.

* * *

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

licensed gaming entity or interactive gaming licensee in

accordance with this part if the licensed gaming entity

knowingly fails to exclude or eject from the premises of any

licensed facility or deny access to interactive gaming any

person placed by the board on the list of persons to be excluded

[or], ejected or denied access.

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

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

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

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

from interactive gaming persons known to it to be within the

classifications declared in this section and the regulations

promulgated under this section whose presence in a licensed

facility or whose participation in interactive gaming would be

inimical to the interest of the Commonwealth or of licensed

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

the board.

20170SB0524PN0537 - 194 -

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

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

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

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

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

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

mail if the electronic mail address of the person is known to

the bureau.

* * *

§ 1515. Repeat offenders excludable from licensed gaming

facility.

A licensed gaming entity may exclude or eject from its

licensed facility or deny access to interactive gaming any

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

misdemeanor or felony committed in or on the premises of any

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

of this Commonwealth shall limit the right of a licensed gaming

entity to exercise its common law right to exclude or eject

permanently from its licensed facility or permanently deny

access to its interactive gaming any person who disrupts the

operations of its premises or its interactive gaming, threatens

the security of its premises or its occupants or is disorderly

or intoxicated[.] or who threatens the security of its licensed

facility or the area of a licensed facility where interactive

gaming operations are managed, administered or controlled.

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

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

the establishment of a list of persons self excluded from gaming

activities, including interactive gaming, at all licensed

facilities. Any person may request placement on the list of

20170SB0524PN0537 - 195 -

self-excluded persons by acknowledging in a manner to be

established by the board that the person is a problem gambler

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

the person may not collect any winnings or recover any losses

resulting from any gaming activity at licensed facilities,

including interactive gaming.

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

establish procedures for placements on and removals from the

list of self-excluded persons. The regulations shall establish

procedures for the transmittal to licensed gaming entities of

identifying information concerning self-excluded persons and

shall require licensed gaming entities to establish procedures

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

interactive gaming and to remove self-excluded persons from

targeted mailings or other forms of advertising or promotions

and deny self-excluded persons access to complimentaries, check

cashing privileges, club programs and other similar benefits.

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

party in any judicial proceeding for any harm, monetary or

otherwise, which may arise as a result of:

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

gaming privileges from or restore gaming privileges to a

self-excluded person; [or]

(1.1) the failure of an interactive gaming certificate

holder or interactive gaming licensee to withhold interactive

gaming privileges from or restore interactive gaming

privileges to a self-excluded person; or

(2) otherwise permitting or not permitting a self-

excluded person to engage in gaming activity in the facility

20170SB0524PN0537 - 196 -

or participate in interactive gaming while on the list of

self-excluded persons.

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

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

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

shall be construed to prohibit a licensed gaming entity from

disclosing the identity of persons self excluded pursuant to

this section to affiliated gaming entities in this Commonwealth

or other jurisdictions for the limited purpose of assisting in

the proper administration of responsible gaming programs

operated by affiliated licensed gaming entities.

§ 1517. Investigations and enforcement.

* * *

(b) Powers and duties of department.--

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

access to examine and audit equipment and records relating to

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

games or interactive games under this part.

* * *

Pennsylvania State Police shall have the following powers and

duties:

* * *

(12) Conduct audits or verification of information of

slot machine [or], table game operations, including the

operation of slot machines used in a multistate wide-area

progressive slot machine system and in the operation of skill

or hybrid slot machines and interactive gaming operations at

such times, under such circumstances and to such extent as

the bureau determines. This paragraph includes reviews of

20170SB0524PN0537 - 197 -

accounting, administrative and financial records and

management control systems, procedures and records utilized

by a slot machine licensee.

* * *

(e) Inspection, seizure and warrants.--

(1) The bureau, the department and the Pennsylvania

State Police shall have the authority without notice and

without warrant to do all of the following in the performance

of their duties:

(i) Inspect and examine all premises where slot

machine [or], table game and interactive gaming

operations are conducted, slot machines, table game

devices and associated equipment, interactive gaming

devices and associated equipment are manufactured, sold,

distributed or serviced or where records of these

activities are prepared or maintained.

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

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

(iii) Seize, summarily remove and impound equipment

and supplies from premises referred to in subparagraph

(i) for the purposes of examination and inspection.

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

and documents pertaining to a slot machine licensee's

operation.

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

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

contents, count room or its equipment, interactive gaming

devices and associated equipment or slot machine [or],

table game or interactive gaming operations.

* * *

20170SB0524PN0537 - 198 -

Section 24. Section 1518(a)(1), (2), (3), (4), (5), (7.1),

(11), (13.1), (15) and (17) and (b)(1), (2) and (3) of Title 4

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

paragraphs to read:

§ 1518. Prohibited acts; penalties.

(a) Criminal offenses.--

(1) The provisions of 18 Pa.C.S. § 4902 (relating to

perjury), 4903 (relating to false swearing) or 4904 (relating

to unsworn falsification to authorities) shall apply to any

person providing information or making any statement, whether

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

the department, the Pennsylvania State Police or the Office

of Attorney General, as required by this part.

(2) It shall be unlawful for a person to willfully:

(i) fail to report, pay or truthfully account for

and pay over any license fee, authorization fee, permit

fee, tax or assessment imposed under this part; or

(ii) attempt in any manner to evade or defeat any

license fee, authorization fee, permit fee, registration

fee, tax or assessment or any other fee imposed under

this part.

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

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

machine, table game or table game device, interactive game or

interactive gaming device or associated equipment to be

operated, transported, repaired or opened on the premises of

a licensed facility by a person other than a person licensed

or permitted by the board pursuant to this part.

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

possess a valid and then effective interactive gaming

20170SB0524PN0537 - 199 -

certificate or interactive gaming license issued by the board

in accordance with Chapter 13B (relating to interactive

gaming) to accept any wager associated with any authorized

interactive game from any individual without verifying the

age, identity and physical location of the player at the time

of play or wager.

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

other person to manufacture, supply or place slot machines,

table games, table game devices or associated equipment,

authorized interactive game or interactive gaming devices or

associated equipment into play or display slot machines,

table games, table game devices or associated equipment on

the premises of a licensed facility without the authority of

the board.

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

to offer interactive games into play or display such games on

its interactive gaming skin or Internet website without the

approval of the board.

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

other person to manufacture, supply or place interactive

gaming devices or associated equipment into operation at a

licensed facility without the approval of the board.

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

[license] renewals), it shall be unlawful for a licensed

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

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

game device or associated equipment, interactive game or

interactive gaming device or associated equipment after the

person's license has expired and prior to the actual renewal

of the license.

20170SB0524PN0537 - 200 -

* * *

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

of the following:

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

tampered with table game devices or associated equipment,

chips or other cheating devices in the conduct of gaming

under this part, except that an authorized employee of a

licensee or an authorized employee of the board may

possess and use counterfeit chips or table game devices

or associated equipment that have been marked, loaded or

tampered with, or other cheating devices or any

unauthorized interactive gaming device or associated

equipment in performance of the duties of employment for

training, investigative or testing purposes only.

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

performance or by fraud or fraudulent scheme, or

manipulation, table game device or other device, or

interactive gaming device for himself or for another, win

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

licensed facility or to reduce or attempt to reduce a

losing wager.

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

alter, tamper with or manipulate interactive gaming devices

or associated equipment, including software, system programs,

hardware and any other device or associated equipment used in

interactive gaming operations, in order to alter the odds or

the payout of an interactive game or to disable the

interactive game from operating according to the rules of the

game as authorized by the board.

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

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offer or allow to be offered any authorized interactive game

that has been altered, tampered with or manipulated in a way

that affects the odds or the payout of an authorized

interactive game or disables the interactive game from

operating according to the authorized rules of the game as

authorized by the board.

* * *

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

that is a licensed racing entity and that has lost the

license issued to it by [either] the State Horse Racing

Commission or the State Harness Racing Commission under the

Race Horse Industry Reform Act or that has had that license

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

authorized interactive games at the racetrack for which its

slot machine license was issued unless the license issued to

it by either the State Horse Racing Commission or the State

Harness Racing Commission will be subsequently reissued or

reinstated within 30 days after the loss or suspension.

* * *

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

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

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

attempt to play an interactive game.

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

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

interactive gaming account. Any interactive gaming

certificate holder, interactive gaming licensee or employee

of an interactive gaming certificate holder or interactive

gaming licensee or other such person who knowingly allows a

person under 21 years of age to open, maintain or use an

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interactive gaming account shall be subject to the penalty

set forth in this section, except that the establishment of

all of the following facts by an interactive gaming

certificate holder, interactive gaming licensee or employee

of an interactive gaming certificate holder, interactive

gaming licensee or other such person shall constitute a

defense to any regulatory action by the board or the penalty

authorized under this section:

(i) the underage person falsely represented that he

was of the permitted 21 years of age in the application

for an interactive gaming account; and

(ii) the establishment of the interactive gaming

account was made in good faith reliance upon such

representation and in the reasonable belief that the

underage person was 21 years of age.

* * *

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

to require a wager to be greater than the stated minimum

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

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

prior to commencement of play shall be treated as a valid

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

interactive game shall be paid or lost in its entirety in

accordance with the rules of the game, notwithstanding that

the wager exceeded the current table maximum wager or

authorized interactive game wager or was lower than the

current table minimum wager or minimum interactive game

wager.

* * *

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

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

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

or other table game device, interactive game or interactive

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

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

manipulate with the intent to cheat, any component of any

slot machine, table game or table game device, interactive

game or interactive gaming device in a manner contrary to the

designed and normal operational purpose.

(b) Criminal penalties and fines.--

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

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

connection with providing information or making any

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

bureau, the department, the Pennsylvania State Police,

the Office of Attorney General or a district attorney as

required by this part commits an offense to be graded in

accordance with the applicable section violated. A person

that is convicted of a second or subsequent violation of

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

providing information or making any statement, whether

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

department, the Pennsylvania State Police, the Office of

Attorney General or a district attorney as required by

this part commits a felony of the second degree.

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

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

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

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

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

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degree.

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

through (12) or (17), a person shall be sentenced to pay

a fine of:

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

if the person is an individual;

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

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

an interactive gaming licensee; or

$300,000 if the person is a licensed manufacturer or

supplier.

(ii) For a second or subsequent violation of

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

a person shall be sentenced to pay a fine of:

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

$300,000 if the person is an individual;

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

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

$600,000 if the person is a licensed manufacturer or

supplier.

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

subsection (a)(3.1) commits a felony and, upon conviction,

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

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

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

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

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

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

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

nongambling summary offense and upon conviction of a first

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

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

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

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

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

imposed, an individual convicted of an offense under

subsection (a)(13) [or], (13.1) or (13.2) may be sentenced to

perform a period of community service not to exceed 40 hours.

* * *

Section 25. Section 1901(a) of Title 4 is amended by adding

a paragraph to read:

§ 1901. Appropriations.

(a) Appropriation to board.--

* * *

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

the State Gaming Fund to the Pennsylvania Gaming Control

Board for salaries, wages and all necessary expenses for the

proper operation and administration of the board for the

activities authorized under this part. This appropriation

shall be a supplemental appropriation for fiscal year 2016-

2017 and shall be in addition to the appropriation contained

in the act of July 8, 2016 (P.L.1570, No.10A), known as the

Gaming Control Appropriation Act of 2016.

* * *

Section 26. Repeals are as follows:

(1) The General Assembly declares that the repeal under

paragraph (2) is necessary to effectuate the addition of 4

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Pa.C.S. § 1403(c)(2)(i)(D)(I.2) and (I.3).

(2) Section 1753-E of the act of April 9, 1929 (P.L.343,

No.176), known as The Fiscal Code, is repealed.

Section 27. This act shall take effect as follows:

(1) The amendment of 4 Pa.C.S. § 1509 shall take effect

in 60 days.

(2) The following provisions shall take effect January

1, 2018:

(i) The addition of 4 Pa.C.S. § 1326.1.

(ii) The amendment of 4 Pa.C.S. § 13A63(b)(3)(iii)

(A) and (C).

(iii) The amendment of 4 Pa.C.S. § 1403.

(iv) Section 26 of this act.

(3) Except as set forth in paragraph (4)(ii), the

addition of 4 Pa.C.S. Chs. 3 and 5 shall take effect in 180

days.

(4) The following provisions shall take effect

immediately:

(i) This section.

(ii) The addition of 4 Pa.C.S. § 343.

(iii) The remainder of this act.

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