H0271B1237A01435 MSP:CMD 05/23/17 #90 A01435
AMENDMENTS TO HOUSE BILL NO. 271
Sponsor: SENATOR SCAVELLO
Printer's No. 1237
Amend Bill, page 1, lines 1 through 10, by striking out all
of said lines and inserting
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 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 and for manufacturer licenses, providing for
nongaming service provider, further providing for license
renewals and providing for slot machine license operation
fee; in table games, further providing for other financial
transactions and for local share assessment; providing for
interactive gaming; imposing a multi-use gaming device tax;
in revenues, further providing for establishment of State
Gaming Fund and net slot machine revenue distribution and for
the Pennsylvania Gaming Economic Development and Tourism
Fund, establishing the Casino Marketing and Capital
Development Account and further providing for transfers from
State Gaming Fund; in administration and enforcement, further
providing for responsibility and authority of department, for
wagering on credit, for compulsive and problem gambling
program, for financial and employment interests, 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.
Amend Bill, page 1, lines 13 through 21; pages 2 through 24,
lines 1 through 30; page 25, lines 1 through 17; by striking out
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all of said lines on said pages and inserting
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. (Reserved)
7. 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
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
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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:
(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
Pennsylvania Gaming Control 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).
"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.
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"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 Pennsylvania Gaming Control 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
corporation, foundation, organization, business trust, estate,
limited liability company, licensed corporation, trust,
partnership, limited liability partnership, association or 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
section 15(d) of the Securities Exchange Act of 1934 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 computer program created by a participant or
third party not approved by the licensed operator to automate
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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.
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.
(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, any funds appropriated for the administration of this
chapter which are unexpended, uncommitted and unencumbered at
the end of a fiscal year shall remain available for
expenditure by the board until the enactment of appropriation
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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.
(7.1) To require prospective and existing employees,
independent contractors, applicants, licensees and permittees
to submit to fingerprinting by the Pennsylvania State Police
or an authorized agent of the Pennsylvania State Police. The
Pennsylvania State Police shall submit the fingerprints to
the Federal Bureau of Investigation for purposes of verifying
the identity of the individual and obtaining records of
criminal arrests and convictions.
(7.2) To require prospective and existing employees,
independent contractors, applicants, licensees and permittees
to submit photographs consistent with the standards
established by the board.
(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 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
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 Drug and
Alcohol Programs or successor agency, to develop a process by
which licensed operators provide participants with a toll-
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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 on the board's
publicly accessible Internet website.
(c) Exceptions.--Except as provided under section 342
(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 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.
(d) Additional powers.--The board may develop additional
classifications, investigations and conditions as it deems
appropriate.
§ 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 publication. 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
new fantasy contests or variations of approved fantasy contests,
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 another 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 posted on the board's publicly accessible
Internet website.
(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.
(c) Other files and records.--The board shall maintain 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
background investigation 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
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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
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 the release
is requested by an applicant for a fantasy contest license or
licensed operator and does not otherwise contain confidential
information about another person.
(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 other action of the board.
(e) Notice.--Notice of the contents of 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.
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(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
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:
(1) The name, Federal employer identification number and
principal address of the applicant; if a corporation, the
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state of its incorporation, the full name and address of each
officer and director of the corporation, 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 of the partnership or joint venture.
(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
and character suitability, 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) Application fee.--Each application submitted under this
chapter shall be accompanied by an application fee which shall
be determined by the board. The fees established by the board
shall be utilized to pay all costs incurred by the board to
fulfill the requirements of this section and section 323
(relating to issuance and denial of license). If the fee is
greater than the costs incurred by the board, then the board
shall remit the difference to the applicant.
(c) Additional information.--A person applying for a fantasy
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
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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
within 10 years prior to the date of the application for
license;
(3) has at any time knowingly failed to comply with the
provisions of this chapter or requirements of the board;
(4) has had a registration, permit or license to conduct
fantasy contests denied or revoked in another jurisdiction;
(5) has legally defaulted in the payment of an
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.
(c) Time period for review.--The board shall conclude its
review of an application for a fantasy contest license within
180 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 a 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 $50,000 or an amount equivalent to 7.5% of the
applicant's fantasy contest adjusted revenues for the
previous calendar year, whichever is less, except that an
applicant who is also a licensed gaming entity shall pay to
the board a license fee of $50,000. The minimum amount of the
license fee shall be $5,000.
(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
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 changes relating to the status of its fantasy
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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 a provision
of this chapter;
(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.
(c) Renewal fee.--
(1) Within 30 days of the board renewing a fantasy
contest license, the licensed operator shall pay to the board
a renewal fee of $5,000, or an amount equal to 7.5% of the
applicant's fantasy contest adjusted revenue, whichever is
less.
(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
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revoke the licensed operator's fantasy contest license until
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 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 a
participant prior to making a deposit into a fantasy contest
account for a participant located in this Commonwealth. No
individual under 18 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
username 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 an 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 in part, on
the accumulated statistical results of a team of individuals
in the league in which the player is a member.
(6) Allow an individual to self-exclude from entering a
fantasy contest or accessing a fantasy contest account for a
specific period of time as determined by the participant and
implement reasonable procedures to prevent the individual
from participating in the licensed operator's fantasy
contests.
(7) Allow a participant or other 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 Drug and
Alcohol Programs or successor agency.
(9) Disclose the number of entries a single participant
may submit to each fantasy contest and take steps to prevent
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
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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 steps to maintain the confidentiality of a
participant's personal and financial 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 scripts from
participation in future fantasy contests.
(18) Establish conditions deemed appropriate by the
board.
§ 326. Prohibitions.
(a) General rule.--No licensed operator may:
(1) accept an entry fee from or permit a natural person
under 18 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 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
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fantasy contest account;
(7) knowingly directly market to an individual during
the time period in which the individual has self-excluded
from the licensed operators' fantasy contests;
(8) knowingly permit an individual to enter the licensed
operator's fantasy contests during the time period in which
individual 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
relative living in the same household of an employee or
principal to become a participant in a fantasy contest
offered by a 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;
or
(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 another action prohibited by the board.
(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.
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(a) Notification and approval.--
(1) A licensed operator shall notify the board upon
becoming aware of a 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) Another 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 20% 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
the 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,
except that the institutional investor may vote on matters
put to the vote of the outstanding security holders. Notice
to the board shall be required prior to completion of a
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 a 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 initial 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.
(c) Change in control defined.--For purposes of this
section, a change in control of a licensed operator shall mean
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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 an ownership
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 a 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 a 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 the
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
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.
(c) Civil penalties.--
(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 violation.
(2) The civil penalty shall be recovered in a civil
action brought by the board and shall be paid into the
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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 12% of its quarterly fantasy contest
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 General Fund.
(c) Penalty.--
(1) A licensed operator who fails to timely remit to the
department amounts required under this section shall be
liable, in addition to liability imposed 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
board or the department in connection with carrying out their
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
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necessary to:
(i) recover costs or expenses incurred by the board
and the department in carrying out powers and duties
under this chapter based on a budget submitted by the
board and the department under subsection (c); and
(ii) repay loans made from the General Fund to the
board in connection with carrying out its powers and
duties under this chapter.
(c) Itemized budget reporting.--
(1) The board and the department shall prepare and
annually submit to the chairman and minority chairman of the
Appropriations Committee of the Senate and the chairman and
minority chairman 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
prepare and submit to the chairman and minority chairman of
the Appropriations Committee of the Senate and the chairman
and minority chairman of the Appropriations Committee of the
House of Representatives analyses of and make recommendations
regarding the itemized budgets.
(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 liability imposed 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.
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341. Applicability of other statutes.
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.
(c) Lotteries.--The provisions of 18 Pa.C.S. § 5512
(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 or iLottery under section 703 (relating to
iLottery authorization).
§ 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.
(c) Restricted contests.--A licensed gaming entity may offer
fantasy contests that are exclusive to participants who are at
least 21 years of age.
(d) Promotional play.--For a restricted contest under
subsection (c), a licensed gaming entity may offer slot machine
promotional play or table game match 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 from the
General Fund to the board for the fiscal year period July 1,
2017, to June 30, 2018, for the purpose of implementing and
administering the provisions of this chapter.
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(2) The sum of $500,000 is appropriated from the General
Fund to the department for the fiscal period July 1, 2017, to
June 30, 2018, 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.
(c) Unused amounts.--On July 1, 2018, any portion of amounts
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
(Reserved)
CHAPTER 7
iLOTTERY
Sec.
701. Scope of chapter.
702. Definitions.
703. iLottery authorization.
§ 701. Scope of chapter.
This chapter relates to iLottery.
§ 702. 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 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. The term does not include games that represent
physical, Internet-based or monitor-based interactive lottery
games which simulate casino style lottery games, specifically
including poker, roulette, slot machines or blackjack.
"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
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. The term shall include instant
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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.
§ 703. 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
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.
(c) Prompt implementation.--Notwithstanding any other
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
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exempt from disclosure whether retained by the department, any
agent of the department or a lottery retailer.
(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, revenues raised under this
chapter shall not be subject to the profit margin limitations
set forth 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
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.
* * *
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," "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:
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§ 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." Any of the following:
(1) 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
(2) a city of the first class that regulates the use and
control of a qualified airport that is located partially in a
county of the first class and partially in a county
contiguous to a county of the first class.
"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 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 or slot machines, 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
certificate holder or other persons on behalf of a slot machine
licensee or other entity in accordance with Chapter 13C
(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.
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(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) A prepaid access instrument as defined in this
section.
(8) 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:
(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, interactive gaming device or
associated equipment or a multi-use computing device 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,
interactive gaming device or associated equipment or a multi-use
computing device 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].
* * *
"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
person.
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"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 who is at
least 21 years of age and has cleared security check points with
a valid airline boarding pass for travel from one destination to
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
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table game device technicians.
(7) Security personnel.
(8) Surveillance personnel.
(9) Promotional play supervisors, credit supervisors,
pit supervisors, cashier supervisors, shift supervisors,
table game managers and assistant managers and other
supervisors and managers, except for those specifically
identified in this part as key employees.
(10) Boxmen.
(11) Dealers or croupiers.
(12) Floormen.
(13) Personnel authorized to issue promotional play.
(14) Personnel authorized to issue credit.
The term shall include employees of a person holding a
supplier's license whose duties are directly involved with the
repair or distribution of slot machines, table game devices or
associated equipment or 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." A portion of a licensed facility where slot
machines or table games have been installed for use or play.
* * *
"Gaming-related restricted area." A room or area of a
licensed facility which is specifically designated by the
Pennsylvania Gaming Control Board as restricted or by the slot
machine licensee or other entity as restricted in its board-
approved internal 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 or regulations of the
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Pennsylvania Gaming Control Board 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] requires access to
the gaming floor or a gaming-related restricted area of a
licensed facility as determined by the Pennsylvania Gaming
Control Board.
"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
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.
* * *
"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, debit cards or 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 or iLottery under section 702 (relating to
definitions).
(2) Nongambling games that do not otherwise require a
license under the laws of this Commonwealth.
(3) Fantasy contests as defined under Chapter 3.
For the purposes of this definition, the term "communications
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
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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
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 or other entity by the Pennsylvania
Gaming Control Board authorizing the operation and conduct of
interactive gaming by a slot machine licensee or other entity or
other person on behalf of a slot machine licensee or other
entity in accordance with Chapter 13C (relating to interactive
gaming).
"Interactive gaming certificate holder." A slot machine
licensee or other entity that has been granted authorization by
the Pennsylvania Gaming Control Board to operate authorized
interactive games in accordance with Chapter 13C (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 13C
(relating to interactive gaming).
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"Interactive gaming licensee." A person who has been issued
a license to act as an interactive gaming operator under Chapter
13C (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
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." A 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 another state or jurisdiction 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
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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
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
13C (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
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,
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fabricates, assembles, produces, programs, designs or otherwise
makes modifications to any slot machine, table game device or
associated equipment or authorized interactive games or
associated equipment for use or play of slot machines [or],
table games or authorized interactive games in this Commonwealth
for gaming purposes. The term does 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
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 an authorized interactive game
in accordance with section 1323 (relating to central
control computer system).
(vi) Offers a player additional functions that
include Internet browsing, the capability of checking
flight status and ordering food or beverages.
(2) The term does not include a tablet or computing
device that restricts, prohibits or is incapable of providing
access to interactive gaming, interactive gaming skins or
interactive gaming platforms .
* * *
"Nongaming service provider." A person that is not a gaming
service provider or required to be licensed as a manufacturer,
supplier, management company or gaming junket enterprise under
this part or regulations of the board and that provides goods or
services:
(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 of a licensed facility.
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"Non-peer-to-peer interactive game." An interactive game in
which the player does not compete against other players and
which is not a peer-to-peer interactive game.
* * *
"Peer-to-peer interactive game." An interactive game which
is nonbanking, such as online poker, in which a player competes
against one or more other players and in which the interactive
gaming certificate holder collects a rake.
* * *
"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.
"Prepaid access instrument." A card, code, electronic serial
number, mobile identification number, personal identification
number or similar device that allows patron access to funds that
have been paid in advance and can be retrieved or transferred at
some point in the future through such a device which:
(1) qualifies as an access device for purposes of
Regulation E issued by the Board of Governors of the Federal
Reserve System under 12 CFR Pt. 205 (relating to electronic
fund transfers (Regulation E));
(2) must be distributed by a slot machine licensee or
its affiliates in order to be considered a cash equivalent at
that licensee's location or the location of its affiliates;
and
(3) must be used in conjunction with an approved
cashless wagering system or electronic credit system in order
to transfer funds for gaming purposes.
* * *
"Qualified airport." Any of the following:
(1) A publicly owned commercial service airport that is
designated by the Federal Government as an international
airport.
(2) A publicly owned commercial service airport that has
at least 50,000 passenger enplanements in any calendar year.
"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.
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* * *
"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,
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 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
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 or 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,
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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
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 multi-use
computing 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, 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 13C
(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
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
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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 and other
entities that 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 or other entity proposes to manage,
administer or control 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 or other
entity that holds an interactive gaming certificate to
provide on a quarterly basis the following information with
respect to interactive gaming:
(i) the name of a person, entity or firm to whom
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.
Section 5. Sections 1204 and 1206(f)(1) of Title 4 are
amended to read:
§ 1204. Licensed gaming entity application appeals from board.
The Supreme Court of Pennsylvania shall be vested with
exclusive appellate jurisdiction to consider appeals of any
final order, determination or decision of the board involving
the approval, issuance, denial or conditioning of a slot machine
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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), 13C12 (relating to
interactive gaming certificate required and content of
petition) or 13C14 (relating to interactive gaming operators)
or obtained by the board or the bureau as part of a
background or other investigation from any source shall be
confidential and withheld from public disclosure:
(i) All information relating to character, honesty
and integrity, including family, habits, reputation,
history of criminal activity, business activities,
financial affairs and business, professional and personal
associations submitted under section 1310(a) or 1308(a.1)
or otherwise obtained by the board or the bureau.
(ii) Nonpublic personal information, including home
addresses, telephone numbers and other personal contact
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.
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(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
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), (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
authorizations provided for in this part if the board finds
in its sole discretion that a licensee [or], permittee,
registrant or certificate holder, including an 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 certificate holders and interactive gaming operators.
(4) Require that each licensed entity, including, in the
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case of interactive gaming, each interactive gaming
certificate holder and 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.
* * *
(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, participating in
interactive gaming or using multi-use computing devices .
(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 and
multi-use computing device and associated equipment prior 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.
* * *
(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.
(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
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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
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
the 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.
Section 7. (Reserved).
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 or
other entity to provide information to the board to assist in
the preparation of the report.
* * *
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(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 by the board
to the 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 board may contract
with a private organization or entity with expertise in serving
and treating the needs of persons with compulsive gambling
addictions, in consultation with the Department of Drug and
Alcohol Programs or successor agency. The report may be prepared
and distributed in coordination with the board. Costs associated
with the preparation and distribution of the report shall be
borne by slot machine licensees and other entities 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 or other entity for these purposes.
(d.2) Time of submission and reports.--Notwithstanding any
provision of this part, all reports and studies required to be
submitted under subsection (d.1) after the effective date of
this subsection shall be submitted initially by October 1, 2018,
and by October 1 of each year thereafter.
* * *
Section 9. Section 1212(e) of Title 4 is amended by adding a
paragraph to read:
§ 1212. Diversity goals of board.
* * *
(e) Definition.--As used in this section, the term
"professional services" means those services rendered to a slot
machine licensee which relate to a licensed facility in this
Commonwealth, including, but not limited to:
* * *
(9) Technology related to interactive gaming and
interactive gaming devices and associated equipment.
Section 10. Section 1305(a) of Title 4 is amended by adding
a paragraph to read:
§ 1305. Category 3 slot machine license.
(a) Eligibility.--
* * *
(1.2) The requirements under paragraph (1)(i), (ii) and
(iii) and the membership fee required under paragraphs (1)
(iv) and (1.1) shall not apply to the licensed facility if
the Category 3 slot machine licensee makes notification to
the board and a payment of $1,000,000 to the department for
deposit into the General Fund. The board shall submit notice
to the Legislative Reference Bureau for publication in the
Pennsylvania Bulletin upon receipt of the notification and
confirmation of the payment by any Category 3 slot machine
licensee.
* * *
Section 11. Section 1309(a.1) heading of Title 4 is amended
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and the subsection is amended by adding a paragraph to read:
§ 1309. Slot machine license application.
* * *
(a.1) Table games and interactive gaming information.--
* * *
(3) Notwithstanding paragraph (2), the board may permit
an applicant for a slot machine license that has an
application pending before the board to supplement its
application with all information required under Chapter 13C
(relating to interactive gaming) and to request that the
board consider its application for a slot machine license, a
table game operation certificate, 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 1317.1(a), (b), (d.1) and
(e) of Title 4 are amended 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 or associated equipment to a slot
machine licensee or an interactive gaming certificate holder or
interactive gaming operator within this Commonwealth through a
contract with a licensed manufacturer shall apply to the board
for the appropriate supplier license.
* * *
§ 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
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required by the board and a release to obtain any and all
information necessary for the completion of the background
investigation.
(4) The details of any equivalent license granted or
denied by other jurisdictions where gaming activities as
authorized by this part are permitted and consent for the
board to acquire copies of applications submitted or licenses
issued in connection therewith.
(5) The type of slot machines, table game devices or
associated equipment or interactive gaming devices or
associated equipment to be manufactured or repaired.
(6) Any other information determined by the board to be
appropriate.
* * *
(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.
(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.
* * *
Section 12.1. Title 4 is amended by adding a section to
read:
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§ 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 the nongaming service
provider's provision of goods or services at the slot machine
licensee's licensed facility.
(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, which 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 of a licensed facility.
(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) Other information that the board may require.
(c) Duration of notification.--The nongaming service
provider notification required under subsection (a) may be valid
for five years unless modified by the board. In determining the
duration of a nongaming service provider notification, the board
shall consider the following:
(1) The type or nature of the goods or services.
(2) The frequency of business transactions related to
the provision of the goods or services.
(3) Any other information the board deems necessary and
appropriate.
(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
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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 of the licensed facility.
(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 employees from providing goods or services to a slot
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) (Reserved).
(g) Additional authority.--If, upon examination of the
provided notification, the bureau determines that the
registration or certification of a nongaming service provider is
necessary to protect the integrity of gaming, the bureau may
require the nongaming service provider to file an application
for registration or certification and be authorized by the board
prior to providing services at a licensed facility.
(h) 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
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subsection (a) within a reasonable time as established by
the board.
(i) 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.
(j) 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 a
change in circumstances to the board in such form and manner
as the board may establish.
(k) Construction.--Nothing in this section shall be
construed to limit the powers and authority of the board under
section 1202 (relating to general and specific powers of the
board) or the regulatory authority of the board under section
1207 (relating to regulatory authority of the board).
Section 13. (Reserved).
Section 14. 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 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 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
by this part. Unless otherwise specifically provided in this
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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 15. Title 4 is amended by adding a section to read:
§ 1326.1. Slot machine license operation fee.
(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 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 in equal
installments on a monthly basis.
(b) Payment of fee.--The department shall develop a payment
schedule for the slot machine operation fee imposed under
subsection (a).
(c) Credit for payment.--The department shall credit against
the slot machine operation fee imposed under subsection (a) any
amount paid by a Category 1 or Category 2 licensed gaming entity
under 1403(c)(3) (relating to establishment of State Gaming Fund
and net slot machine revenue distribution) prior to the
effective date of this section. For a Category 2 licensed gaming
entity located in a county of the first class, the department
shall credit against the slot machine operation fee any amount
paid by that licensed gaming entity under 1403(c)(2).
(d) Failure to pay.--The board may at the board's discretion
suspend, revoke or deny a permit or license issued under this
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part if a Category 1 or Category 2 licensed gaming entity fails
to pay the slot machine license operation fee imposed under
subsection (a).
(e) 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 16. Section 13A27(a) and (c) of Title 4 are amended
to read:
§ 13A27. Other financial transactions.
(a) Credit.--Notwithstanding section 1504 (relating to
wagering on credit), a certificate holder may extend interest-
free, unsecured credit to patrons for the purpose of playing
slot machines or table games in accordance with this section;
however, a certificate holder shall not accept credit cards,
charge cards or debit cards from a patron or player for the
exchange or purchase or chips, slot machine or table game
credits or for an advance of coins or currency to be utilized by
a player to play slot machine or table games. No credit card
advance machine may be placed on the gaming floor. Prepaid
access instruments are not deemed to be a credit card, charge
card, debit card or any other instrument of credit and are not
prohibited under this section. A device or other mechanism which
allows or facilitates the funding of a prepaid access instrument
as defined in section 1103 shall not be deemed a credit card
advance machine under this section.
* * *
(c) Credit application verification.---Prior to approving an
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 17. (Reserved).
Section 18. Section 13A63(b)(3)(iii)(C) and (4) of Title 4
are amended to read:
§ 13A63. Local share assessment.
* * *
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(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:
* * *
(C) Twenty percent to the nonhost county in
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 for grants to municipalities that
are contiguous to the host city] exclusively for
economic development projects, community improvement
projects and other projects in the public interest
within the county, with priority given to
municipalities contiguous to the host city.
* * *
(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
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.
(B) Twelve and one-half percent shall be
distributed to the county hosting the licensed
facility from each licensed facility for the purpose
of supporting a child advocacy center located within
the county in which the licensee is located.
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(C) Twelve and one-half percent shall be
distributed to the county hosting the licensed
facility from each 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 19. Title 4 is amended by adding chapters to read:
CHAPTER 13B
(RESERVED)
CHAPTER 13C
INTERACTIVE GAMING
Subchapter
A. General Provisions
B. Interactive Gaming Authorized
C. Conduct of Interactive Gaming
D. Facilities and Equipment
E. Testing and Certification
F. Taxes and Fees
G. Miscellaneous Provisions
SUBCHAPTER A
GENERAL PROVISIONS
Sec.
13C01. Legislative findings.
13C02. Regulatory authority.
13C03. Temporary interactive gaming regulations.
§ 13C01. 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
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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 the residents of this Commonwealth.
(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 offshore
gambling operations.
(7) In 2006, the Congress of the United States passed
and the President of the United States signed the Unlawful
Internet Gambling Enforcement Act of 2006 (Title VIII of
Public Law 109-347, 31 U.S.C. § 5361 et seq.), which
generally prohibits the use of banking instruments, including
credit cards, checks and money transfers for interstate
Internet gambling.
(8) Although the Unlawful Internet Gambling Enforcement
Act of 2006 prohibits interstate Internet gambling by United
States citizens, it permits individual states to create a
regulatory framework to govern intrastate Internet or
interactive gambling.
(9) Without legislative authorization and strict
regulation of interactive gaming in this Commonwealth, the
public's trust and confidence in legalized commercial gaming
may be impacted.
(10) 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 jobs, tax and other
revenue 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 residents of this Commonwealth that
only those persons who have been determined to be suitable
are licensed 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.
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(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
agencies and which are in good standing with those agencies.
§ 13C02. 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 variations or
composites of authorized interactive games, if the board
determines that the interactive games and new interactive
games or variations or composites are suitable for use after
a test or experimental period under 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 or other entity 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 a determination and 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
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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
equipment, including mechanical, electrical or program
reliability, security against tampering and 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 a 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.
(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 a specified time period
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or the amount of losses incurred during the 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
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 an
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 a person whose age and location have not been
verified or whose age and location cannot be verified in
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accordance with regulations adopted by the board.
(viii) Adopt standards to protect the privacy and
security of registered players engaged in interactive
gaming.
(ix) Collect, report and pay any and all applicable
taxes and fees and maintain all books, data, 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, data, 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
require by regulation.
(16) To require prospective and existing employees,
independent contractors, applicants, licensees and
permittees to submit to fingerprinting by the
Pennsylvania State Police or an authorized agent of the
Pennsylvania State Police. The Pennsylvania State Police
shall submit the fingerprints to the Federal Bureau of
Investigation for purposes of verifying the identity of
the individual and obtaining records of criminal arrests
and convictions.
(17) To require prospective and existing employees,
independent contractors, applicants, licensees and
permittees to submit photographs consistent with the
standards established by the board.
(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.
(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
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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.
(iv) Any other person as determined by the board.
(c) Definition.--For the purposes of subsection (a)(12),
(14) and (15)(vi) and (vii), the term "person" shall mean a
natural person.
§ 13C03. 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
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.
(c) Expiration of temporary regulations.--Except for
temporary regulations governing the rules for issuing
certificates and licenses under this chapter, for new
interactive games, for approving interactive games or variations
of interactive games, 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
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Sec.
13C11. Authorization to conduct interactive gaming.
13C12. Interactive gaming certificate required and content of
petition.
13C13. Issuance of interactive gaming certificate.
13C14. Interactive gaming operators.
13C15. Interactive gaming certificate and license.
13C16. Timing of initial interactive gaming authorizations.
§ 13C11. Authorization to conduct interactive gaming.
(a) Authority of board.--
(1) The board may authorize a slot machine licensee or
any other entity which petitions the board for an interactive
gaming certificate under section 13C13 (relating to issuance
of interactive gaming certificate):
(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 into 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 permitted to participate as a registered player in
interactive gaming and wagering associated with playing an
authorized interactive game offered by an interactive gaming
certificate holder in accordance with regulations of the board.
§ 13C12. Interactive gaming certificate required and content of
petition.
(a) Certificate required.--No slot machine licensee or other
entity or other person associated with or representing a slot
machine licensee or other entity 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 or other entity 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) Classifications.--There shall be two classifications of
interactive gaming certificates:
(1) One classification shall permit the interactive
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gaming certificate holder to conduct interactive gaming with
peer-to-peer interactive games.
(2) One classification shall permit the interactive
gaming certificate holder to conduct interactive gaming with
non-peer-to-peer interactive games.
(c) Petition.--The petition for an interactive gaming
certificate shall specify whether the petitioner is seeking
approval to offer peer-to-peer interactive games, non-peer-to-
peer interactive games, or both.
(d) Content of petition.--In addition to information and
documentation demonstrating that the slot machine licensee or
other entity 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 or other entity.
(2) The name, business address and contact information
of an 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 or other entity.
(3) The name and business address, job title and a
photograph of each principal and key employee of the slot
machine licensee or other entity 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 other
game or games the slot machine licensee or other entity plans
to offer over the Internet for which authorization is being
sought. The slot machine licensee or other entity 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 or
other entity'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
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authorized.
(8) The details of financing obtained or that will be
obtained to fund an expansion or modification of the 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 or other entity, and information or documentation
concerning an interactive gaming operator that will operate
interactive gaming or an interactive gaming system on behalf
of the slot machine licensee or other entity, 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 or other entity 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 or other entity 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 or other entity's
initial system of internal and accounting controls
applicable to interactive gaming.
(ii) The slot machine licensee's or other entity'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 or other entity
will facilitate compliance with all of the requirements
set forth in this chapter and in section 802(a) of the
Unlawful Internet Gambling Enforcement Act of 2006 (Title
VIII of Public Law 109-347, 31 U.S.C. § 5362(10)(B)),
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 a person whose age,
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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.
(C) Except as provided in this chapter, the
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 or other entity'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 or
other entity will use to register individuals who wish to
participate in interactive gaming.
(vi) The procedures the slot machine licensee or
other entity will use to establish interactive gaming
accounts for registered players.
(vii) The interactive games and services the slot
machine licensee or other entity proposes to offer to
registered players.
(viii) Documentation and information relating to all
proposed subcontractors of the slot machine licensee or
other entity, 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.
(C) The names of all proposed subcontractors,
owners, executives and employees that will be
directly or indirectly involved in the slot machine
licensee's or other entity's interactive gaming
operations, as well as sufficient personal
identifying information on each 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 or other entity 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.
(16) Detailed description of accounting systems,
including, but not limited to, accounting systems for all of
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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) Other information the board may require.
(e) Confidentiality.--Information submitted to the board
under subsection (d) may be considered confidential by the board
if the information would be confidential under section 1206(f)
(relating to board minutes and records).
§ 13C13. Issuance of interactive gaming certificate.
(a) Requirements for approval of petition.--
(1) The board may approve a petition under section 13C12
(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 or other entity's
conduct of interactive gaming complies in all respects
with the requirements of this chapter and regulations
promulgated by the board.
(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 or other entity.
(iii) The slot machine licensee or other entity has
implemented or will implement appropriate data security
standards to prevent unauthorized access by a 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 or other entity has
implemented or will implement appropriate standards to
protect the privacy and security of registered players.
(v) The slot machine licensee's or other entity'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 or other entity is in
good standing with the board.
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(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 an interactive
gaming certificate that a slot machine licensee or other
entity shall collect, report and pay all applicable taxes and
fees and shall maintain all books, data, records and
documents pertaining to the slot machine licensee's or other
entity's interactive gaming operations in a manner and
location within this Commonwealth as approved by the board.
All books, data, 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 or other
entity. The issuance of an interactive gaming certificate
prior to the full payment of the authorization fee required
under section 13C51 (relating to interactive gaming
authorization fee) shall not relieve the slot machine
licensee or other entity from the obligation to pay the
authorization fee in accordance with the requirements of
section 13C51.
(2) Upon issuing an interactive gaming certificate, the
board shall amend the slot machine licensee's or other
entity's statement of conditions to include conditions
pertaining to the requirements of this chapter.
(c) Term of interactive gaming certificate.--Subject to the
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 or other entity that
fails to abide by the requirements of this chapter or any
condition contained in the slot machine licensee's or other
entity'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 an 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
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background investigations. The board shall determine by
regulation the persons involved, directly or indirectly, in a
slot machine licensee's or other entity's interactive gaming
operations and persons involved in the operations of an
interactive gaming operator who shall be subject to background
investigation. Additional costs and expenses incurred in a
background investigation or other investigation or proceeding
under this chapter shall be reimbursed to the board by the
petitioner.
(f) Petitions for interactive gaming certificates.--
(1) The board shall establish a 90-day period for the
holder of a slot machine license to file a petition with the
board for an interactive gaming certificate. The petition by
the holder of a slot machine license may be for an
interactive gaming certificate to conduct peer-to-peer
interactive games, non-peer-to-peer interactive games or
both.
(2) For a slot machine license issued after the period
established by the board in paragraph (1), the slot machine
licensee shall have 90 days from the date of issuance of the
slot machine license to file a petition with the board for an
interactive gaming certificate. The petition by the holder of
a slot machine license may be for an interactive gaming
certificate to conduct peer-to-peer interactive games, non-
peer-to-peer interactive games, or both.
(3) Subject to the limitation in paragraph (4), after
the expiration of the 90-day period established by the board
in paragraph (1) or (2), any interactive gaming certificate
for which the holder of a slot machine license has not filed
a petition, the board may accept petitions from other
entities for interactive gaming certificates to conduct peer-
to-peer interactive games, non-peer-to-peer interactive
games, or both.
(4) The board shall not issue more interactive gaming
certificates for peer-to-peer interactive games than the
number of slot machine licenses issued by the board. The
board shall not issue more interactive gaming certificates
for non-peer-to-peer interactive games than the number of
slot machine licenses issued by the board.
(5) If a slot machine licensee does not apply for an
interactive gaming certificate during the 90-day period
established by the board in paragraph (1) or (2), the slot
machine licensee and any affiliate of the slot machine
licensee shall not be eligible to apply for an interactive
gaming certificate for two years after the expiration of the
time period under paragraph (1) or (2).
(g) Additional requirements.--Any entity, other than a slot
machine licensee, which seeks approval to conduct interactive
gaming must satisfy all the requirements for approval under this
chapter as well as any requirements for licensure under this
part that the board deems appropriate to ensure that the entity
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has the qualifications to conduct gaming in this Commonwealth,
including, but not limited to, character suitability and
financial capability requirements.
§ 13C14. 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 or other entity . The board shall determine
suitability in accordance with the applicable requirements of
this part and 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
gaming certificate holder and an interactive gaming operator
or 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).
(c) Applicability of certain provisions.--Interactive gaming
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
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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:
(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 bureau has no objection to the issuance of
a conditional authorization to the applicant.
(3) Within 90 days of the date that the bureau receives
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
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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.
§ 13C15. 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.
(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 or other entity does
not seek renewal of its interactive gaming certificate.
(2) The interactive gaming certificate shall 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 interactive gaming certificate
holder 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 or other entity 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.
§ 13C16. Timing of initial interactive gaming authorizations.
Except as provided under section 13C13(f) (relating to
issuance of interactive gaming certificate), the board shall
prescribe the date on which petitions for an 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 120 days following receipt of a
completed application.
SUBCHAPTER B.1
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MULTI-USE COMPUTING DEVICES
Sec.
13C20. Authorization.
13C20.1. Board authorization required.
13C20.2. Standard for review of petitions.
13C20.3. Fees.
13C20.4. Multi-use gaming device tax.
13C20.5. (Reserved).
13C20.6. Regulations.
13C20.7. Construction.
§ 13C20. Authorization.
(a) Authority.--
(1) Notwithstanding any provision of law 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
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.
(c) Satisfaction of contingencies.--Authorization for an
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
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qualified airport for the conduct of interactive gaming
through the use of multi-use computing devices within the
airport gaming area, or for operation at a qualified airport
which is not located partially in a county of the first class
and partially in a county contiguous to a county of the first
class, the interactive gaming certificate holder or
interactive gaming operator has entered into an agreement
with the qualified airport operator for the conduct of
interactive gaming through the use of multi-use computing
devices within the airport gaming area.
(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 law 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.
§ 13C20.1. Board authorization required.
(a) Contents of petition.--An interactive gaming certificate
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
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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 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
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.
(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
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and records).
(c) Approval of petition.--Upon approval of a petition as
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 subchapter prior to the full payment of the
authorization fee under section 13C20.3 (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 13C20.3.
§ 13C20.2. Standard for review of petitions.
The board shall approve a petition under section 13C20.1
(relating to board authorization required) if the interactive
gaming operator has been or will be issued an interactive gaming
license under law, 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 airport
or for operation at a qualified airport which is not located
partially in a county of the first class and partially in a
county contiguous to a county of the first class , the
interactive gaming certificate holder or interactive gaming
operator has entered into an agreement with the qualified
airport operator for the conduct of interactive gaming
through the use of multi-use computing devices within the
airport gaming area .
(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 law.
(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.
§ 13C20.3. Fees.
(a) Required fees.--An interactive gaming certificate holder
shall pay a one-time, nonrefundable fee upon the authorization
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to conduct interactive gaming at a qualified airport through the
use of multi-use computing devices in accordance with this
subchapter. The amount of the fee shall be as follows:
(1) If the airport is an international airport located
partially in a county of the first class and partially in a
county contiguous to a county of the first class , the amount
of the fee shall be $5,000,000.
(2) If the airport is an international airport located
in a county of the second class, the amount of the fee shall
be $2,500,000.
(3) If the airport is an international airport located
in a county other than a county of the first or second class,
the amount of the fee shall be $1,000,000.
(4) If the airport is a qualified airport which has not
been designated an international airport, the amount of the
fee shall be $250,000.
(b) Deposit of fees.--Notwithstanding section 1208 (relating
to collection of fees and fines), all fees or penalties received
by the board under this subchapter shall be deposited in the
General Fund.
§ 13C20.4. Multi-use gaming device tax.
(a) Imposition.--
(1) Each interactive gaming certificate holder
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 34% of its daily gross interactive
gaming revenue generated from multi-use computing devices at
the qualified airport.
(2) The tax imposed under subsection (a) shall be
payable to the department on a weekly 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).
§ 13C20.5. (Reserved).
§ 13C20.6. Regulations.
(a) Regulations.--The board shall promulgate regulations
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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
persons 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 subchapter, 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.
§ 13C20.7. 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.
SUBCHAPTER C
CONDUCT OF INTERACTIVE GAMING
Sec.
13C21. Situs of interactive gaming operations.
13C22. Establishment of interactive gaming accounts.
13C23. Interactive gaming account credits, debits, deposits and
payments.
13C24. Acceptance of account wagers.
13C25. Dormant interactive gaming accounts.
13C26. Log-in procedure required.
13C27. Information provided at login.
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13C28. Prohibitions.
13C29. Commencement of interactive gaming operations.
§ 13C21. 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.
§ 13C22. 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 a 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 a beneficiary, custodian,
joint trust, corporation, partnership or other organization or
entity. An interactive gaming certificate holder shall not
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
the applicant to civil and criminal penalties.
(2) The interactive gaming certificate holder may accept
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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 an
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.
(c) Password required.--As part of the application process,
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.--An 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 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) A person under 21 years of age.
(2) A 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) A gaming employee, key employee or principal
employee of a slot machine licensee and an employee or key
employee of an interactive gaming certificate holder or
interactive gaming operator or other person directly involved
in the operation of interactive gaming or an interactive
gaming system on behalf of an interactive gaming certificate
holder.
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§ 13C23. 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,
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 a wager or deposit to the
interactive gaming account of a registered player.
(c) Interest prohibited.--Funds deposited in a registered
player's interactive gaming account shall not bear interest to
the account holder.
§ 13C24. 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 funds in
the account at the time the wager is placed.
§ 13C25. Dormant interactive gaming accounts.
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 the
time and manner as determined by regulation of the board.
§ 13C26. Log-in procedure required.
Each interactive gaming certificate holder shall establish a
log-in procedure for registered players to access interactive
gaming. The log-in 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
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log in and access the interactive gaming account unless the
correct password or other authentication information is
provided.
§ 13C27. 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
interactive gaming certificate holder and other information
as the board may require.
§ 13C28. Prohibitions.
Except as provided in this part, no interactive gaming
certificate holder or person licensed under this part to operate
interactive gaming or an interactive gaming system and no person
acting on behalf of, or under an arrangement with, an
interactive gaming certificate holder or other person licensed
under this part shall:
(1) Make any loan to a person for the purpose of
crediting an interactive gaming account.
(2) Release or discharge a debt, either in whole or in
part, or make a loan which represents losses incurred by a
registered player while playing authorized interactive games
without maintaining a written record thereof in accordance
with regulations of the board.
§ 13C29. 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 13C32
(relating to internal, administrative and accounting
controls).
(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, registered,
certified or otherwise authorized by the board to perform
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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 13C31 (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 the interactive gaming certificate
holder .
SUBCHAPTER D
FACILITIES AND EQUIPMENT
Sec.
13C31. Responsibilities of interactive gaming certificate
holder .
13C32. Internal, administrative and accounting controls.
§ 13C31. 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
another area approved by the board.
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(2) All wagers associated with interactive gaming shall
be deemed to be placed when received by the interactive
gaming certificate holder .
§ 13C32. Internal, administrative and accounting controls.
(a) Approval.--Notwithstanding any provision of this part,
each slot machine licensee or other entity 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.--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
(v) cash-equivalent transactions.
(3) Job descriptions, organizational charts 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 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 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
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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.
(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 personal
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 personal identifiable information.
For the purpose of this paragraph, "personal identifiable
information" shall mean 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
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 a 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
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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 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).
(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.
(23) Any other item or procedure as determined by the
board.
(c) Review of submissions.--
(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 alterations is approved by the board.
SUBCHAPTER E
TESTING AND CERTIFICATION
Sec.
13C41. Interactive games and interactive gaming devices and
associated equipment testing and certification
standards.
§ 13C41. Interactive games and interactive gaming devices and
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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 a 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.--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.
(c) Use of other state standards.--The board may determine
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 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.
13C51. Interactive gaming authorization fee.
13C52. Interactive gaming tax.
13C53. (Reserved).
13C54. Compulsive and problem gambling.
13C55. Certificate holder deposits.
§ 13C51. Interactive gaming authorization fee.
(a) Amount of authorization fee.--Each slot machine licensee
or other entity that is issued an interactive gaming certificate
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or certificates to conduct interactive gaming in accordance with
section 13C11 (relating to authorization to conduct interactive
gaming) shall pay a one-time nonrefundable authorization fee as
follows:
(1) $5,000,000 for an interactive gaming certificate
authorizing non-peer-to-peer interactive games
(2) $5,000,000 for an interactive gaming certificate
authorizing non-peer-to-peer interactive games.
(3) $10,000,000 for interactive gaming certificates
authorizing both classifications of interactive games.
(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
to conduct interactive gaming. The board may allow the fee to be
paid in installments, if all 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 that sets forth the
terms of the installment payment.
(c) Renewal fee.-- Notwithstanding any other provision of
this chapter, an interactive gaming certificate holder shall pay
a renewal fee in the amount of $250,000 upon the renewal of its
interactive gaming certificate in accordance with sections 1326
(relating to renewals) and 13C13(c) (relating to issuance of
interactive gaming certificate).
(d) Deposit of fees.--The fees imposed and collected under
this section shall be deposited in the General Fund.
§ 13C52. 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 16% on its daily gross interactive gaming
revenue from peer-to-peer interactive games and 54% on its daily
gross interactive gaming revenue from non-peer-to-peer
interactive games. This section shall not apply to interactive
gaming revenue generated from multi-use computing devices at
qualified airports, which is subject to section 13C20.4
(relating to m ulti-use gaming device tax).
(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 the funds are
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paid to the department under this section.
(c) Taxes on out-of-State wagering.--The tax rate which
shall be assessed and collected by the department with respect
to wagers placed by registered players located in this
Commonwealth with an interactive gaming operator outside of this
Commonwealth, but authorized under an interactive gaming
reciprocal agreement shall be governed by the agreement but may
not exceed 16% of gross interactive gaming revenue derived from
registered players located in this Commonwealth.
(d) Deposit of funds.--The tax imposed under subsection (a)
shall be collected by the department for deposit in the General
Fund.
§ 13C53. (Reserved).
§ 13C54. Compulsive and problem gambling.
The following shall apply:
(1) Each year, from the tax imposed in section 13C52
(relating to interactive gaming tax), $2,000,000 or an amount
equal to .002 multiplied by the total gross interactive
gaming revenue of all active and operating interactive gaming
certificate holders, whichever is greater, 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 13C52,
$2,000,000 or an amount equal to .002 multiplied by the total
gross interactive gaming revenue of all active and operating
interactive gaming certificate holders, whichever is greater,
shall be transferred to the Department of Drug and Alcohol
Programs or successor agency 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).
§ 13C55. Certificate holder deposits.
(a) Accounts established.--Except for an interactive gaming
certificate holder that already has an account established under
section 1401 (relating to slot machine licensee deposits), the
State Treasurer shall establish within the State Treasury an
account for each interactive gaming certificate holder for the
deposit of sums required under subsection (b) to 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).
(b) Deposits.--The following shall apply:
(1) The department shall determine the appropriate
assessment amount for each interactive gaming certificate
holder, which shall be a percentage assessed on the
interactive gaming certificate holder's gross interactive
gaming revenues. Each interactive gaming certificate holder
shall deposit funds into its account established under this
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section or under section 1401 on a quarterly basis.
(2) The percentage assessed shall not exceed an amount
necessary to recover costs or expenses incurred by the board
and the department in carrying out powers and duties under
this chapter based on a budget submitted by the board and the
department under subsection (c).
(c) Itemized budget reporting.--The following shall apply:
(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 chairperson of the
Appropriations Committee of the Senate and the chairperson of
the Appropriations Committee of the House of Representatives
analyses of and make recommendations regarding the itemized
budget.
(d) Appropriation.--Costs and expenses from accounts
established under subsection (a) or under section 1401 shall
only be disbursed upon appropriation by the General Assembly.
(e) Penalty.--The following shall apply:
(1) An interactive gaming certificate holder who fails
to timely remit to the department amounts required under this
section shall be liable, in addition to liability imposed 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.
SUBCHAPTER G
MISCELLANEOUS PROVISIONS
Sec.
13C61. Participation in interactive gaming by persons outside
Commonwealth.
13C62. Institutional investors.
13C63. Internet cafes and prohibition.
§ 13C61. 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
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inconsistent with Federal law or regulation or the law or
regulation of the jurisdiction, including a 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,
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.
§ 13C62. 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 an 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 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
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 an 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 requirements established by the
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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 a holding,
intermediary or subsidiary company of an interactive gaming
certificate holder, interactive gaming operator or applicant
shall notify the board immediately of 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 a security of
a holding or intermediary company of an interactive gaming
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 necessary action otherwise authorized
under this chapter to protect the public interest.
§ 13C63. 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
within a licensed facility.
(b) Construction.--Nothing in this section shall be
construed to:
(1) 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; or
(2) require an interactive gaming certificate holder or
an interactive gaming operator to prohibit registered players
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within a licensed facility from playing interactive games.
CHAPTER 13D
(RESERVED)
CHAPTER 13E
(RESERVED)
CHAPTER 13F
(RESERVED)
Section 20. Section 1403 of Title 4 is 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).
(c) Transfers and distributions.--The department shall:
(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:
(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.
(C) A county of the second class A: 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
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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.
(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
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
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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
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 may
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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
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.
(C) A county of the second class A: 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) A county of the third class: 1% of the
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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
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
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 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.
(C) A county of the second class A: 1% of the
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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 following shall apply:
(I) 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 contiguous
to the host city.]
(a) Twenty percent shall be distributed
to the host city.
(b) Thirty percent shall be distributed
to the host county.
(c) Fifty percent shall be distributed
as follows:
(1) Beginning January 1, 2018, the
sum of $250,000 shall be distributed
annually for a period of 20 years to a
city of the third class located in two
counties of the third class for
purposes of funding the redevelopment
of an existing arts and education
center which has professional artist
space and studios and is located within
the city of the third class that is
located in two counties of the third
class.
(2) After the distribution under
subunit (1), the remaining funds shall
be deposited into a restricted receipts
account to be established in the
Commonwealth Financing Authority for
distribution to the host county to be
used exclusively for economic
development projects, community
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improvement projects and other projects
in the public interest within the
county, with priority given to
municipalities contiguous to the host
city.
(II) 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.]
(a) Sixty percent shall be distributed
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.
(b) Thirty-five percent shall be
distributed to the nonhost county.
(c) Five percent shall be deposited into
a restricted receipts account to be
established in the Commonwealth Financing
Authority for distribution to the host county
to be used exclusively for economic
development projects, community improvement
projects and other projects in the public
interest within the county, with priority
given to municipalities contiguous to the
host city.
(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
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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
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
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
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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
Wastewater Infrastructure Program).] to the county
hosting the licensed facility from each 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.
(C) If the facility is a Category 3 licensed
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
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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
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.
(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
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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
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.
(i.1) To a city of the first class hosting one or
more licensed facilities, other than a Category 3
licensed facility, $10,000,000 from each licensed
facility located in a city of the first class shall be
distributed annually as follows:
(A) From a licensed facility operating in the
city of the first class on the effective date of this
subparagraph, the first $5,000,000 shall be
distributed annually to the Philadelphia School
District. Of the remaining funds, 60% shall be
distributed to the city of the first class and 40%
shall be deposited into a restricted receipts account
established in the Department of Community and
Economic Development to be used exclusively for
grants for economic development projects,
neighborhood revitalization projects, community
improvement projects and other projects in the public
interest within the city of the first class.
(B) From a licensed facility that begins
operating in the city of the first class after the
effective date of this subparagraph, 70% of the slot
machine license operation fee shall be distributed to
the city of the first class and 30% of the slot
machine license operation fee shall be deposited into
a restricted receipts account established in the
Department of Community and Economic Development to
be used exclusively for grants for economic
development projects, neighborhood revitalization
projects, community improvement projects and other
projects in the public interest within the city of
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the first class.
(C) Notwithstanding any other provision of this
part to the contrary, slot machine license operation
fees from licensed gaming entities located within a
city of the first class shall not be distributed
outside of a city of the first class.
(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
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 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, a portion of the $10,000,000 local share
assessment equal to 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
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revenue required to be paid pursuant to the agreement
shall be deemed to be gross terminal revenue for purposes
of this subparagraph.] distributed in accordance with
paragraph (2) based upon the classification of the county
in which the licensed facility is located. 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, 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
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
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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
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
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
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$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
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).]
(C) [$160,000 annually 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, 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
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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
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,
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
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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
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.
(C) If the municipality hosting a Category 3
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
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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
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 a 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 a 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
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paragraph (2) based upon the county where the licensed
facility is located.
(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
(C) for any other purposes as determined to be
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
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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.
(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
intentional violation of 65 Pa.C.S. § 13A09(e) (relating to
penalties).
Section 20.1. Section 1407(b) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 1407. Pennsylvania Gaming Economic Development and Tourism
Fund.
* * *
(b) Fund administration and distribution.--The Pennsylvania
Gaming Economic Development and Tourism Fund shall be
administered by the Department of Community and Economic
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Development. [All] Except as provided under subsection (c.1),
all moneys in the Pennsylvania Gaming Economic Development and
Tourism Fund shall be distributed pursuant to a subsequently
enacted Economic Development Capital Budget that appropriates
money from the fund pursuant to this section. The procedures for
enactment, authorization and release of economic development and
tourism funds authorized under this section for both capital
projects and operational expenditures shall be the same as those
provided for in sections 303(a), (b) and (c) and 318(a) of the
act of February 9, 1999 (P.L.1, No.1), known as the Capital
Facilities Debt Enabling Act, without reference to the nature or
purpose of the project, and any other statutory provision, if
any, necessary to effectuate the release of funds appropriated
in such economic development capital budget.
* * *
(c.1) Supplemental Pennsylvania Gaming Economic Development
and Tourism Fund Assessment.--Beginning July 1, 2017, each
licensed gaming entity shall pay a daily assessment of 0.5% of
its gross terminal revenue to the Casino Marketing and Capital
Development Account. The following shall apply:
(1) The board shall submit notice to the Legislative
Reference Bureau for publication in the Pennsylvania Bulletin
when the gross terminal revenue for each Category 1 and
Category 2 slot machine licensee for the previous fiscal year
exceeds $200,000,000.
(2) This subsection shall expire on the earlier of:
(i) ten years after the effective date of this
subsection; or
(ii) the date of publication of the notice under
paragraph (1).
* * *
Section 20.2. Title 4 is amended by adding a section to
read:
§ 1407.1. Casino Marketing and Capital Development Account.
(a) Establishment.--There is established in the Pennsylvania
Gaming Economic Development and Tourism Fund a restricted
account to be known as the Casino Marketing and Capital
Development Account.
(b) Administration and distribution.--The Casino Marketing
and Capital Development Account shall be administered by the
board. All money in the Casino Marketing and Capital Development
Account shall be distributed as grants in accordance with this
section. The Department of Community and Economic Development
shall make payments to grant recipients as directed by the
board.
(c) Grant procedures.--The board shall establish procedures
for a slot machine licensee to apply for grants from the Casino
Marketing and Capital Development Account. The board shall
determine the form and manner in which an application for a
grant may be filed with the board.
(d) Program guidelines.--The board shall establish program
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guidelines. Each slot machine licensee may apply to the board
for a grant under this section. Each grant awarded under this
section shall be used by the slot machine licensee for marketing
or capital development.
(e) Distribution of grants.--
(1) Each year, before the board awards a grant under
this section, the following distributions shall be made:
(i) Each Category 1 or Category 2 slot machine
licensee with gross terminal revenues of $150,000,000 or
less for the fiscal year ending June 30, 2016, shall
receive $5,000,000.
(ii) Each Category 1 or Category 2 slot machine
licensee with gross terminal revenues of more than
$150,000,000 but less than $200,000,000 for the fiscal
year ending June 30, 2016, shall receive $3,000,000.
(iii) If there is insufficient money in the Casino
Marketing and Capital Development Account to make the
required distributions under subparagraphs (i) and (ii),
distributions shall be made in the proportion of:
(A) the eligible licensees under each
subparagraph; to
(B) the total amount of money in the Casino
Marketing and Capital Development Account.
(2) After distribution under paragraph (1), remaining
money in the Casino Marketing and Capital Development Account
shall be distributed by the board to other slot machine
licensees that have applied for grants.
(3) No slot machine licensee may receive more than
$5,000,000 from the Casino Marketing and Capital Development
Account in one year.
(f) Expiration.--
(1) The board shall submit notice to the Legislative
Reference Bureau for publication in the Pennsylvania Bulletin
when the gross terminal revenue for each Category 1 and
Category 2 slot machine licensee for the previous fiscal year
exceeds $200,000,000.
(2) This section shall expire on the earlier of:
(i) ten years after the effective date of this
subsection; or
(ii) the date of publication of the notice under
paragraph (1).
(g) Definition.--As used in this section, the term "capital
development" shall include, but is not limited to, expansion or
renovation of an existing licensed facility or constructing or
expanding amenities at a licensed facility.
Section 20.3. Section 1408(c) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 1408. Transfers from State Gaming Fund.
* * *
(c) Local law enforcement grants.--[Annually] Except as
provided in subsection (c.1), annually, the sum of $2,000,000
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shall be transferred to the board for the purpose of issuing
grants to local law enforcement agencies to investigate
violations of and enforce laws relating to unlawful gambling in
this Commonwealth. For purposes of this subsection, the term
"local law enforcement agency" shall include the Pennsylvania
State Police when conducting unlawful gambling enforcement and
prevention activities in a municipality which does not have a
municipal police department and in which the Pennsylvania State
Police provide the municipality with primary police coverage.
(c.1) Transfer to the Casino Marketing and Capital
Development Account.--Beginning July 1, 2017, and each year
thereafter, $2,000,000 shall be transferred to the Casino
Marketing and Capital Development Account established in section
1407.1 (relating to Casino Marketing and Capital Development
Account). Any money not committed for local law enforcement
grants under subsection (c) on the effective date of this
subsection shall be transferred to the Casino Marketing and
Capital Development Account. The following shall apply:
(1) The board shall submit notice to the Legislative
Reference Bureau for publication in the Pennsylvania Bulletin
when the gross terminal revenue for each Category 1 and
Category 2 slot machine licensee for the previous fiscal year
exceeds $200,000,000.
(2) This subsection shall expire on the earlier of:
(i) ten years after the effective date of this
subsection; or
(ii) the date of publication of the notice under
paragraph (1).
* * *
Section 20.4. Sections 1501(b), 1504 and 1509 of Title 4 are
amended to read:
§ 1501. Responsibility and authority of department.
* * *
(b) Application of rules and regulations.--The department
may prescribe the extent, if any, to which any rules and
regulations shall be applied without retroactive effect. The
department shall have authority to prescribe the forms and the
system of accounting and recordkeeping to be employed and
through its representative shall at all times have power of
access to and examination and audit of any equipment and records
relating to all aspects of the operation of slot machines [and],
table games and interactive gaming under this part.
* * *
§ 1504. Wagering on credit.
Except as otherwise provided in this section, slot machine
licensees shall not extend credit. Slot machine licensees shall
not accept credit cards, charge cards or debit cards from a
patron or a player for the exchange or purchase of slot machine
credits or for an advance of coins or currency to be utilized by
a player to play slot machine games or extend credit in any
manner to a player so as to enable the player to play slot
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machines. Prepaid access instruments are not deemed to be a
credit card, charge card, debit card or any other instrument of
credit and are not prohibited under this section. Slot machine
licensees who hold a table game operation certificate may extend
credit for slot machine gaming in accordance with section 13A26
(relating to cash equivalents).
§ 1509. Compulsive and problem gambling program.
(a) Establishment of program.--The Department of [Health]
Drug and Alcohol Programs or successor agency, in consultation
with organizations similar to the Mid-Atlantic Addiction
Training Institute, shall develop program guidelines for public
education, awareness and training regarding compulsive and
problem gambling and the treatment and prevention of compulsive
and problem gambling. The guidelines shall include strategies
for the prevention of compulsive and problem gambling. The
Department of [Health] Drug and Alcohol Programs or successor
agency may consult with the board and licensed gaming entities
to develop such strategies.
(a.1) Duties of Department of [Health] Drug and Alcohol
Programs.--From funds available in the Compulsive and Problem
Gambling Treatment Fund, the Department of [Health] Drug and
Alcohol Programs or successor agency shall:
(1) Maintain [a] one compulsive gamblers assistance
organization's toll-free problem gambling telephone number,
which shall be the number 1-800-GAMBLER, to provide crisis
counseling and referral services to individuals and families
experiencing difficulty as a result of problem or compulsive
gambling. If the Department of Drug and Alcohol Programs or
successor agency determines that it is unable to adopt the
number 1-800-GAMBLER, the Department of Drug and Alcohol
Programs or successor agency shall maintain another number.
(2) Facilitate, through in-service training and other
means, the availability of effective assistance programs for
problem and compulsive gamblers and family members affected
by problem and compulsive gambling.
(3) At its discretion, conduct studies to identify
individuals in this Commonwealth who are or are at risk of
becoming problem or compulsive gamblers.
(4) Provide grants to and contract with single county
authorities and other organizations which provide services as
set forth in this section.
(5) Reimburse organizations for reasonable expenses
incurred assisting the Department of [Health] Drug and
Alcohol Programs or successor agency with implementing this
section.
(a.2) Duties of Department of [Health] Drug and Alcohol
Programs and board.--[Within 60 days following the effective
date of this subsection, the] The Department of [Health's Bureau
of] Drug and Alcohol Programs or successor agency and the
board's Office of Compulsive and Problem Gambling shall jointly
collaborate with other appropriate offices and agencies of State
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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 or successor agency's uniform
Statewide guidelines that 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.
(b) Compulsive and Problem Gambling Treatment Fund.--There
is hereby established in the State Treasury a special fund to be
known as the Compulsive and Problem Gambling Treatment Fund. All
moneys in the fund shall be administered by the Department of
[Health] Drug and Alcohol Programs or successor agency and
expended solely for programs for the prevention and treatment of
gambling addiction and other emotional and behavioral problems
associated with or related to gambling addiction and for the
administration of the compulsive and problem gambling program,
provided that the Department of [Health] Drug and Alcohol
Programs or successor agency shall annually distribute at least
50% of the money in the fund to single county authorities under
subsection (d). The fund shall consist of money annually
allocated to it from the annual payment established under
section 1408(a) (relating to transfers from State Gaming Fund),
money which may be allocated by the board, interest earnings on
moneys in the fund and any other contributions, payments or
deposits which may be made to the fund.
(c) Notice of availability of assistance.--
(1) [Each] Except as otherwise provided for in paragraph
(4), each slot machine licensee shall [obtain a] use the
toll-free telephone number [to be used] established by the
Department of Drug and Alcohol Programs or successor agency
in subsection (a.1)(1) 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:
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If you or someone you know has a gambling problem, help
is available. Call (Toll-free telephone number).
The signs must be posted within 50 feet of each entrance and
exit, within 50 feet of each automated teller machine
location within the licensed facility and in other
appropriate public areas of the licensed facility as
determined by the slot machine licensee.
(2) Each racetrack where slot machines or table games
are operated shall print a statement on daily racing programs
provided to the general public that is similar to the
following:
If you or someone you know has a gambling problem, help
is available. Call (Toll-free telephone number).
Except as otherwise provided for in paragraph (4), the toll-
free telephone number shall be the same telephone number
established by the Department of Drug and Alcohol Programs or
successor agency under subsection (a.1)(1).
(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 a 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 a single
wager on an interactive game.
(C) A temporary suspension of interactive gaming
through the account for any number of hours or days.
(iii) Shall not mail or otherwise forward a gaming-
related promotional material or e-mail to a registered
player during a period in which interactive gaming
through the registered players' 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
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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] 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.
(4) Slot machine licensees or racetracks utilizing a
toll-free telephone number other than the number established
by the Department of Drug and Alcohol Programs or successor
agency under subsection (a.1)(1) prior to the effective date
of this paragraph may continue to use that number for a
period not to exceed three years from the effective date of
this paragraph upon showing good cause to the Department of
Drug and Alcohol Programs or successor agency .
(d) Single county authorities.--The Department of [Health]
Drug and Alcohol Programs or successor agency shall make grants
from the fund established under subsection (b) to single county
authorities created pursuant to the act of April 14, 1972
(P.L.221, No.63), known as the Pennsylvania Drug and Alcohol
Abuse Control Act, for the purpose of providing compulsive
gambling and gambling addiction prevention, treatment and
education programs. Treatment may include financial counseling,
irrespective of whether the financial counseling is provided by
the single county authority, the treatment service provider or
subcontracted to a third party. It is the intention of the
General Assembly that any grants made by the Department of
[Health] Drug and Alcohol Programs or successor agency to any
single county authority in accordance with the provisions of
this subsection be used exclusively for the development and
implementation of compulsive and problem gambling programs
authorized under this section.
(d.1) Eligibility.--Eligibility to receive treatment
services for treatment of compulsive and problem gambling under
this section shall be determined using financial eligibility and
other requirements of the single county authorities as approved
by the Department of [Health] Drug and Alcohol Programs or
successor agency.
(d.2) Report.--[No later than October 1, 2010, and each]
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Annually on October 1 [thereafter], the Department of [Health]
Drug and Alcohol Programs or successor agency , in 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.
(e) Definition.--As used in subsection (d), the term "single
county authority" means the agency designated by the Department
of Health pursuant to the act of April 14, 1972 (P.L.221,
No.63), known as the Pennsylvania Drug and Alcohol Abuse Control
Act, to plan and coordinate drug and alcohol prevention,
intervention and treatment services for a geographic area, which
may consist of one or more counties.
Section 21. 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
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
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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 22. Sections 1514 heading, (a), (d), (e) and (f),
1515 and 1516 of Title 4 are amended to read:
§ 1514. Regulation requiring exclusion [or], ejection or denial
of access of certain persons.
(a) General rule.--The board shall by regulation provide for
the establishment of a list of persons who are to be excluded or
ejected from any licensed facility or who may be denied access
to 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, interactive gaming certificate holder or
interactive gaming licensee in accordance with this part if the
licensed gaming entity, interactive gaming certificate holder or
interactive gaming licensee 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.
(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 e-mail address of the person is known to the
bureau.
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* * *
§ 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 at all licensed facilities. Any person may request
placement on the list of self-excluded persons by acknowledging
in a manner to be established by the board that the person is a
problem gambler and by agreeing that, during any period of
voluntary exclusion, the person may not collect any winnings or
recover any losses resulting from any gaming activity at
licensed facilities.
(a.1) Interactive gaming self-exclusion.--The board shall
provide by regulation for the establishment of a list of persons
self-excluded from interactive gaming activities at all licensed
facilities. Any person may request placement on the list of
self-excluded persons by acknowledging in a manner to be
established by the board that the person is a problem gambler
and by agreeing that, during any period of voluntary exclusion,
the person may not collect any winnings or recover any losses
resulting from any gaming activity related to 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.
(c) Liability.--A licensed gaming entity, interactive gaming
certificate holder or interactive gaming licensee or employee
thereof shall not be liable to any self-excluded person or to
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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
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.
Section 22.1. Section 1517(b)(1), (c)(12) and (e)(1) of
Title 4 are amended to read:
§ 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.
* * *
(c) Powers and duties of the Pennsylvania State Police.--The
Pennsylvania State Police shall have the following powers and
duties:
* * *
(12) Conduct audits or verification of information of
slot machine [or], table game operations and interactive
gaming operations at such times, under such circumstances and
to such extent as the bureau determines. This paragraph
includes reviews of accounting, administrative and financial
records and management control systems, procedures and
records utilized by a slot machine licensee.
* * *
(e) Inspection, seizure and warrants.--
(1) The bureau, the department and the Pennsylvania
State Police shall have the authority without notice and
without warrant to do all of the following in the performance
of their duties:
(i) Inspect and examine all premises where slot
machine [or], table game operations and interactive
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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 operations or interactive gaming operations.
* * *
Section 23. 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
certificate or interactive gaming license issued by the board
in accordance with Chapter 13C (relating to interactive
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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 interactive gaming
certificate holder or interactive gaming 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.
* * *
(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
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alter, tamper 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
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
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
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representation and in the reasonable belief that the
underage person was 21 years of age.
(13.3) It shall be unlawful for an individual who is
under 21 years of age to enter and remain in an airport
gaming area, except that an individual who is 18 years of age
and employed by a slot machine licensee, a gaming service
provider, the board or any other regulatory or emergency
response agency may enter and remain in the area while
engaged in the performance of the individual's employment
duties.
* * *
(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,
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)
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and (4) through (12) or (17) commits a misdemeanor of the
first degree. A person that is convicted of a second or
subsequent violation of subsection (a)(2), (3) and (4)
through (12) or (17) commits a felony of the second
degree.
(2) (i) For a first violation of subsection (a)(1)
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 certificate holder or an
interactive gaming licensee; or
(C) not less than $150,000 nor more than
$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;
or
(C) not less than $300,000 nor more than
$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 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 more
than $2,500,000.
(3) An individual who commits an offense in violation of
subsection (a)(13) [or], (13.1), (13.2) or (13.3) 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), (13.2) or (13.3) 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), (13.2) or
(13.3) may be sentenced to perform a period of community
service not to exceed 40 hours.
* * *
Section 24. Section 1901(a) of Title 4 is amended by adding
a paragraph to read:
§ 1901. Appropriations.
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(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 act. 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 25. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 4
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 26. This act shall take effect as follows:
(1) The following shall take effect in 60 days:
(i) The addition of 4 Pa.C.S. Ch. 13C.
(ii) The amendment of 4 Pa.C.S. § 1509.
(2) Except as set forth in paragraph (3)(ii), the
addition of 4 Pa.C.S. Ch. 3 shall take effect in 180 days.
(3) 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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See A01435 in
the context
of HB0271