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PRINTER'S NO. 809
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
695
Session of
2015
INTRODUCED BY MICCARELLI, DIAMOND, BARRAR, COHEN AND DeLUCA,
MARCH 3, 2015
REFERRED TO COMMITTEE ON GAMING OVERSIGHT, MARCH 3, 2015
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, providing for authorized interactive gaming and for
duties of Pennsylvania Gaming Control Board and Department of
Health; imposing an interactive gaming tax; and prescribing
penalties.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 4 of the Pennsylvania Consolidated Statutes
is amended by adding a chapter to read:
CHAPTER 13B
AUTHORIZED INTERACTIVE GAMING
Sec.
13B01. Legislative policy.
13B02. Definitions.
13B03. Regulation and enforcement by board.
13B04. Prohibition on unauthorized Internet gaming.
13B05. Application for license.
13B06. Board consideration of application.
13B07. Institutional investors.
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13B08. Presumption of unsuitability.
13B09. Licensing fee.
13B10. Accounting and operational internal controls.
13B11. Interactive gaming tax.
13B12. Prohibition on Internet cafes.
13B13. Testing of hardware, software and equipment.
13B14. Expanded compulsive and problem gambling programs.
13B15. Application of other provisions of this part.
§ 13B01. Legislative policy.
The General Assembly recognizes the following public policy
purposes and declares that the following objectives of the
Commonwealth are to be served by this chapter:
(1) The legalization of slot machines and table games in
Pennsylvania has delivered substantial benefits to the
Commonwealth, including tax revenue for property tax relief
and general economic development, the creation of more than
15,000 jobs and significant contributions to the horse racing
and agricultural industries.
(2) Developments in technology and recent legal
decisions have created an opportunity to legalize interactive
poker as a means to further enhance and complement the
benefits delivered by casino gaming and licensed facilities
to or for the benefit of the communities in which they
operate.
(3) Interactive gaming operates by having players
establish and draw funds from an individual account to place
a wager in authorized games through the Internet and similar
communications media. The Commonwealth currently authorizes
gaming in the form of slot machines and banking and
nonbanking table games, including poker. These gaming
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operations provide licensed entities in this Commonwealth the
appropriate level of experience to introduce a platform for
interactive gaming that protects the player and the integrity
of the game.
(4) It is a vital public interest that licensed entities
retain responsibility for the interactive gaming software and
hardware which shall remain under their ultimate operational
and supervisory control. Vendors' ability to provide the
interactive gaming platform must depend solely on, and be
tied to, the status of the licensed entity for which they are
providing their services. To ensure that actual control and
supervision remains with the licensed entity, the licensed
entity's publicly accessible Internet website or similar
public portal must be marketed and made available to the
public under the licensed entity's own name and brands and
not the brands of third parties.
(5) Poker is unlike banking games in important respects
that make it well-suited for interactive gaming. Poker
operators are not participants in the games and are
indifferent to the outcome because winnings come from the
pool of other players, not the house. In addition, winning at
poker involves some measure of skill. Skillful poker players
can earn winnings in the long term, while players of banking
games play against odds favoring the house.
(6) Any interactive gaming enforcement and regulatory
structure must begin from the premise that participation in a
lawful and licensed gaming industry is a privilege, not a
right and that regulatory oversight is intended to safeguard
the integrity of the games and participants and to ensure
accountability.
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(7) The passage of the Unlawful Internet Gambling
Enforcement Act of 2006, codified at 31 U.S.C. Ch. 53, Subch.
IV (relating to prohibition on funding of unlawful Internet
gambling), clarified issues concerning the scope and
interpretation of State law, including the importance of the
location of the wager, wagering activity and website. For
purposes of suitability for licensing under this act, persons
who provided goods or services related to Internet gaming
involving citizens of this Commonwealth that ceased
operations as a result of the enactment of the Unlawful
Internet Gambling Enforcement Act should be regarded
differently from those that continued to flout Federal and
State law. Granting licenses or allowing the use of the
assets of persons who ignored Federal and State law would
reward unlawful gaming activity, permit manifestly unsuitable
persons to profit from their unlawful gaming activity and
create unfair competition with licensees that respected
Federal and State law.
(8) The Commonwealth has entrusted the control and
regulation of gaming to the Pennsylvania Gaming Control Board
for the past seven years. Based on that experience, it is now
appropriate to delegate the responsibility for the
implementation and regulation of interactive gaming to the
board.
(9) Authorized interactive gaming, once fully developed,
will allow persons in this Commonwealth to participate in
interactive poker, not only with other persons in this
Commonwealth, but with persons in other cooperating United
States jurisdictions where interactive gaming has been
authorized.
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(10) The expansion of gaming through the authorization
of interactive gaming requires the Commonwealth to take steps
to increase awareness of problem gambling across interactive
channels and to implement effective strategies for
prevention, assessment and treatment of this behavioral
disorder.
§ 13B02. 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:
"Affiliate." As defined in section 1103 (relating to
definitions). The term does not include an individual.
"Authorized game." Any interactive poker game approved by
the board pursuant to this chapter.
"Authorized participant." A person placing a wager who is
either physically present in this Commonwealth or located in a
jurisdiction with which the Commonwealth has negotiated an
interactive gaming agreement. The intermediate routing of
electronic data in connection with interactive games shall not
determine the location or locations in which a wager is
initiated, received or otherwise made.
"Covered asset." Any of the following categories of assets,
if specifically designed for use and knowingly and willfully
used in connection with wagers or gambling games, using the
Internet and involving customers located in the United States
after December 31, 2006, unless licensed by a Federal or State
authority to engage in such activity:
(1) any trademark, trade name, service mark or similar
intellectual property that is used to identify any aspect of
the Internet website or the operator offering the wagers or
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interactive games to its customers;
(2) any database or customer list of individuals
residing in the United States who placed wagers or
participated in interactive games with or through an Internet
website or operator not licensed by a Federal or State
authority to engage in such activity;
(3) any derivative of a database or customer list
described in paragraph (2); or
(4) software, including any derivative, update or
customization of such software, or hardware relating to the
management, administration, development, testing or control
of the Internet website, the interactive games or wagers
offered through the website or the operator.
"Gross interactive gaming revenue." The total of all cash or
cash equivalents paid by authorized participants to a licensee
in consideration for the play of interactive games minus:
(1) The total of cash or cash equivalents paid out to
players as winnings.
(2) Promotional gaming credits.
(3) The cash equivalent value of any personal property
or other noncash item of value included in a drawing, contest
or tournament and distributed to players.
(4) Taxes paid to other states or territories of the
United States pursuant to interactive gaming agreements
implemented under this chapter.
(5) Revenues from nongaming sources, such as food,
beverages, souvenirs, advertising, clothing or other
nongaming sources.
Amounts deposited with a licensee for purposes of interactive
gaming and amounts taken in fraudulent acts perpetrated against
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a licensee for which the licensee is not reimbursed shall be
considered to have been paid to the licensee for purposes of
calculating gross interactive gaming revenue.
"Interactive game." Any 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 any other instrumentality, to transmit to
electronic information to assist in the placing of a wager and
corresponding information related to the display of the game,
game outcomes or other similar information. The term does not
include the conduct of gaming that occurs entirely among
participants located within the licensed facility of the
licensee or its affiliate, to the extent that any such gaming
may be authorized by the board, or nongambling games that do not
otherwise require a license under the laws of this Commonwealth.
For purposes of this definition, "communications technology"
means any method used and the components employed by an
establishment to facilitate the transmission of information,
including, but not limited to, transmission and reception by
systems based on wire, cable, radio, microwave, light, optics or
computer data networks, including, but not limited to, the
Internet and intranets.
"Interactive gaming agreement." A negotiated agreement
between the Commonwealth and one or more of the states or
territories of the United States in which interactive gaming is
legally authorized that permits persons located in such other
jurisdictions to place wagers on interactive games with
licensees in this Commonwealth or to permit persons located in
this Commonwealth to place wagers on interactive games with
licensees in such other jurisdictions, or both. Agreements may
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contain other provisions the board deems appropriate, except
that only authorized games may be permitted to be offered to
persons located in this Commonwealth pursuant to an agreement.
"Interactive gaming license." A license issued by the board
pursuant to this chapter which authorizes the holder to offer
authorized games for play by, and to accept bets and wagers
associated with authorized games from, authorized participants.
"Interactive gaming platform." The combination of hardware
and software designed and used to manage, conduct or record
interactive games or the wagers associated with those games and
which has been approved by the board for purposes of the conduct
of authorized games.
"Interactive gaming skin." The portal to an interactive
gaming platform or Internet website through which an authorized
game is made available to customers in this Commonwealth.
"Internet." A computer network of interoperable packet-
switched data networks.
"Key interactive gaming employee." An individual employed by
a licensee, significant vendor or applicant, or by a holding or
intermediary company of a licensee, significant vendor or
applicant, who is involved in the operation of, or of the wagers
associated with, interactive gaming and who is empowered to make
discretionary decisions that regulate interactive gaming
operations.
"Licensee." A licensed entity that holds an interactive
gaming license.
"Poker." Any of several card games traditionally known as
poker, in which players compete against each other and not
against the person operating the game, including a game using an
electronic device that simulates a deck of cards. The term
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includes cash games and tournaments. Licensees may assess a rake
or any other type of fee associated with the game, contest or
tournament but may not wager with or against any player.
"Promotional gaming credit." Any bonus, promotion or amount
received by a licensee from an authorized participant for which
the licensee can demonstrate that it or its affiliate has not
received cash.
"Significant vendor." A person who offers or proposes to
offer any of the following services with respect to interactive
gaming:
(1) management, administration or control of wagers or
of the interactive games themselves;
(2) development, maintenance, provision or operation of
an interactive gaming platform or any discrete component
thereof;
(3) sale, licensing or other receipt of compensation for
selling or licensing a database or customer list of
individuals residing in the United States selected, in whole
or in part, because they placed wagers or participated in
gambling games with or through an Internet website or
operator or any derivative of such a database or customer
list;
(4) provision of any product, service or asset to a
licensee or significant vendor in return for a percentage of
interactive gaming revenue, not including fees to financial
institutions and payment providers for facilitating a deposit
or withdrawal by an authorized participant; or
(5) provision of any trademark, trade name, service mark
or similar intellectual property under which a licensee or
significant vendor identifies to customers the authorized
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games, the website or equivalent hosting the authorized
games, any interactive gaming skin or the interactive gaming
platform, but excluding intellectual property of a person
providing only art or graphics.
The term does not include any key interactive gaming employee of
a licensee or significant vendor. A significant vendor must be
licensed by the board to provide these services.
§ 13B03. Regulation and enforcement by board.
(a) General rule.--The board shall promulgate regulations
for the operation and conduct of interactive gaming in this
Commonwealth and shall enforce the regulations.
(b) Powers and duties.--
(1) The board shall authorize licensees and significant
vendors to conduct interactive gaming involving authorized
participants, subject to the provisions of this chapter and
other applicable provisions of law. The board shall also
develop standards for evaluating and approving interactive
gaming platforms for use with interactive gaming.
(2) The board may determine in its discretion the
categories of employees who satisfy the definition of "key
interactive employee" and may exclude from the scope of this
definition any particular licensee, significant vendor,
applicant or employee or category of employee it deems
appropriate.
(c) Delegated authority.--The board is designated as the
agency of the Commonwealth with the power and authority to
negotiate and enter into interactive gaming agreements on behalf
of the Commonwealth consistent with this chapter.
(d) Interactive gaming agreements.--To the extent
practicable, the board shall negotiate interactive gaming
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agreements with other states, territories or possessions of the
United States in which interactive gaming has been authorized to
allow players in this Commonwealth to participate in authorized
games with players in such other jurisdictions.
§ 13B04. Prohibition on unauthorized Internet gaming.
(a) Unauthorized gaming.--
(1) It shall be unlawful for any person to willfully and
knowingly operate, carry on, offer or expose for play any
interactive game or to accept any bet or wager associated
with any interactive game from any person physically located
in this Commonwealth at the time of such play that is not
within the scope of a valid and current license issued by the
board pursuant to this chapter or by another state, territory
or possession of the United States with which the
Commonwealth has an interactive gaming agreement that permits
such activity.
(2) It shall be unlawful for any person to willfully and
knowingly provide services with respect to any interactive
game, bet or wager specified in paragraph (1).
(b) Grading of offense.--A person who violates subsection
(a) commits a misdemeanor of the first degree. For a second or
subsequent violation of subsection (a), a person commits a
felony of the second degree.
(c) Penalties.--
(1) For a first violation of subsection (a), a person
shall be sentenced to pay a fine of:
(i) not less than $75,000 nor more than $150,000, if
the person is an individual;
(ii) not less than $150,000 nor more than $300,000,
if the person is a licensed manufacturer or supplier; or
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(iii) not less than $300,000 nor more than $600,000,
if the person is a licensed gaming entity.
(2) For a second or subsequent violation of subsection
(a), a person shall be sentenced to pay a fine of:
(i) Not less than $150,000 nor more than $300,000,
if the person is an individual.
(ii) Not less than $300,000 nor more than $600,000,
if the person is a licensed manufacturer or supplier.
(iii) Not less than $600,000 nor more than
$1,200,000, if the person is a licensed gaming entity.
(d) Forfeiture.--If a person places a wager on an
interactive game from a location in which such activity is
unauthorized, the person shall forfeit all entitlement to any
winnings and the moneys associated with any such forfeited
winnings shall be deposited by the licensee into the Compulsive
and Problem Gambling Treatment Fund established under section
1509(b) (relating to compulsive and problem gambling program).
(e) Tax Liability.--An unlicensed person offering
interactive games to persons in this Commonwealth shall be
liable for all taxes required by this chapter in the same manner
and amounts as if such person were a licensee. Timely payment of
such taxes shall not constitute a defense to any prosecution or
other proceeding in connection with unauthorized interactive
gaming, except for a prosecution or proceeding alleging failure
to make such payment.
§ 13B05. Application for license.
(a) Filing of application.--Ninety days from the effective
date of this section, the board shall permit filing of
applications for licenses pursuant to this chapter. The
application shall include, as applicable:
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(1) The name and business address of the applicant,
including an organizational chart which identifies the
applicant's relationship to any person that holds a slot
machine license and a table game operation certificate issued
by the board.
(2) Identification of and a detailed description of the
qualifications of any proposed significant vendors. Detailed
information shall be provided describing the specific
operational responsibilities of significant vendors and the
nature of the economic relationship with those significant
vendors.
(3) A detailed description of the technical protocols
and parameters of the interactive gaming platform proposed to
be utilized.
(4) Identification and a description of the interactive
games the applicant proposes to make available.
(5) Such other information as the board, in its
discretion, shall determine to require.
(b) Temporary authorization.--
(1) During the first 18 months from the effective date
of this section, the board may issue temporary authorizations
to applicants for licensing as a significant vendor, which
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. Temporary authorizations may be renewed
not more than once, upon a showing of good cause. Temporary
authorization shall allow the applicant to engage in all of
the functions of a fully licensed significant vendor for the
duration of the temporary authorization.
(2) No temporary authorization may be issued unless:
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(i) The applicant has submitted a complete license
application.
(ii) The applicant agrees to pay the fee prescribed
in section 13B09 (relating to licensing fee) within 60
days of issuance of the temporary authorization, which
may be refundable in the event a permanent license is not
issued. Failure to make timely payment shall result in
revocation of the temporary authorization.
(iii) The bureau has stated that it has no objection
to the issuance of a temporary authorization to the
applicant.
(3) Within 45 days of the date that the bureau receives
the completed application of an applicant for investigation,
the bureau shall conduct a preliminary investigation of the
applicant and any key interactive gaming employee of the
applicant, which shall include:
(i) a criminal background investigation of the
applicant and any key interactive gaming employee of the
applicant; and
(ii) any investigation necessary to determine
whether the applicant or any key interactive gaming
employee of the applicant may fall within the scope of
section 13B08 (relating to presumption of unsuitability).
(4) If the bureau's preliminary investigation discloses
no material adverse information, then the bureau shall issue
to the executive director a statement of no objection to the
issuance of a temporary authorization to the applicant.
(5) If the bureau's preliminary investigation discloses
material adverse information or if the bureau is unable to
confirm that section 13B08 does not apply, it shall register
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an objection and no temporary authorization may be issued
until the material concern is resolved or, if applicable,
confirmation that section 13B08 does not apply is received.
(6) If the bureau's full investigation of an applicant
discloses material adverse information, the temporary
authorization of any applicant may be suspended or withdrawn
upon a showing of cause by the bureau.
§ 13B06. Board consideration of application.
(a) Suitability.--A holder, or an affiliate of a holder, of
a slot machine license and table game operation certificate,
whose license and certificate are in good standing, shall be
considered suitable to be issued an interactive gaming license
by the board without additional investigation, subject to the
provisions of section 13B08 (relating to presumption of
unsuitability).
(b) Significant vendors.--The board shall determine the
suitability of any significant vendors, consistent with the
requirements of this chapter.
(c) Qualifications.--A review of the suitability of a person
to hold a license as a licensee or significant vendor shall
include the review and determination of whether:
(1) The person possesses the requisite experience and
skill to perform the functions consistent with the
requirements of this chapter.
(2) The applicant is a person of good character, honesty
and integrity.
(3) The applicant is a person whose prior activities,
criminal record, if any, reputation, habits and associations
do not:
(i) pose a threat to the public interest or to the
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effective regulation and control of interactive gaming;
or
(ii) create or enhance the dangers of unsuitable,
unfair or illegal practices, methods and activities in
the conduct of interactive gaming or in the carrying on
of the business and financial arrangements incidental to
such gaming.
(4) The applicant has disclosed to the board all known
affiliations or relationships, whether direct or indirect,
with persons and covered assets of persons described by
section 13B08.
(d) Owners and key interactive gaming employees.--In
connection with an application for a license as a licensee or
significant vendor, the applicant shall identify and the board
shall determine the suitability of an applicant's owners, chief
executive officer, chief financial officer, any other officer
whom the board deems significantly involved in the management or
control of the applicant and all key interactive gaming
employees.
(e) Brand transparency.--The board may not approve the
application of any prospective licensee and shall suspend the
license of any licensee if the licensee's Internet website
through which authorized games are offered to customers in this
Commonwealth or any interactive gaming skin with which the
licensee is associated is identified by a brand or name that is
not owned or controlled by the licensee or an affiliate of the
licensee.
(f) Issuance of order.--The board shall issue an order
granting or denying an application for a license as a licensee
or significant vendor within 120 days of the date on which a
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properly completed application and any additional information
that the board may require is filed. If the board approves an
application, it may impose reasonable conditions of licensure
consistent with the requirements of this chapter.
§ 13B07. Institutional investors.
(a) Declaration of investment intent.--
(1) An institutional investor holding less than 25% of
the equity securities of a licensee's, significant vendor's
or applicant's holding or intermediary companies, shall be
granted a waiver of any investigation of suitability or other
requirement if the securities are those of a corporation,
whether publicly traded or privately held, and the holdings
of the securities were purchased for investment purposes
only. The institutional investor shall file a certified
statement that it has no intention of influencing or
affecting the affairs of the licensee, significant vendor,
applicant or its holding or intermediary companies. 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 such 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 the licensee, significant vendor or
applicant's holding or intermediary company shall provide not
less than 30 days' notice of such intent and shall file with
the board a request for determination of suitability before
taking any action that may influence or affect the affairs of
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the issuer. An institutional investor shall be permitted to
vote on matters put to the vote of the outstanding security
holders.
(4) If an institutional investor changes its investment
intent or if the board finds reasonable cause to believe that
the institutional investor may be found unsuitable, no action
other than divestiture shall be taken by the institutional
investor with respect to its security holdings until there
has been compliance with any requirements established by the
board, which may include the execution of a trust agreement.
(5) The licensee or significant vendor or applicant and
its relevant holding, intermediary or subsidiary company
shall notify the board immediately of any information about,
or actions of, an institutional investor holding its equity
securities where such information or action may impact the
eligibility of the institutional investor for a waiver
pursuant to this subsection.
(b) Failure to declare.--If the board finds:
(1) that an institutional investor holding any security
of a holding or intermediary company of a licensee or
significant vendor or applicant or, where relevant, of
another subsidiary company of a holding or intermediary
company of a licensee or significant vendor or applicant
which is related in any way to the financing of the licensee
or significant vendor 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 a
licensee or significant vendor or applicant that
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investigation and determination of suitability of the
institutional investor is necessary to protect the public
interest;
then the board may take any necessary action otherwise
authorized under this chapter to protect the public interest.
§ 13B08. Presumption of unsuitability.
(a) General rule.--The board may not issue a license to or
otherwise find suitable any prospective licensee or significant
vendor, or key interactive gaming employee of a licensee or
significant vender, who has:
(1) At any time, either directly or through a third
party whom it controlled or owned in whole or in significant
part, knowingly or willfully:
(i) accepted or made available wagers on interactive
games using the Internet from persons located in the
United States after December 31, 2006, unless licensed by
a Federal or State authority to engage in such activity;
or
(ii) facilitated or otherwise provided services with
respect to wagers or interactive games using the Internet
involving persons located in the United States for a
person described in subparagraph (i), if such activities
or services would cause such person to be considered a
significant vendor if those activities or services were
provided with respect to interactive games pursuant to
this chapter, and if such person acted with knowledge of
the fact that such wagers or interactive games involved
persons located in the United States.
(2) Purchased or acquired, directly or indirectly, in
whole or in significant part, a third party described in
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paragraph (1) or will use that third party or a covered asset
in connection with interactive gaming.
(b) Appeal procedures.--A prospective licensee, significant
vendor or key interactive gaming employee may appeal a
determination by the board that it is within the scope of
subsection (a) only in accordance with the following procedures:
(1) The board shall afford the prospective licensee or
significant vendor a hearing at which such person may provide
evidence to support the basis on which it seeks relief.
(2) The prospective licensee or significant vendor must
demonstrate by a preponderance of the evidence that:
(i) its conduct in connection with interactive games
and wagers involving persons located in the United States
was not unlawful; and
(ii) if applicable, the covered assets to be used or
that are being used by such person in connection with
interactive gaming were not used in a manner that was
unlawful, in each case under Federal law and the laws of
each state in which persons making the wagers or playing
the games were located.
(3) The determination of the board shall be made without
regard to whether the person has been prosecuted under the
criminal laws of any state, the United States or other
jurisdiction or has been prosecuted and the proceeding
terminated in a manner other than with a conviction.
(4) If the prohibition is waived, the prospective
licensee or significant vendor shall satisfy all otherwise
applicable license and suitability requirements.
§ 13B09. Licensing fee.
If the board grants an application under section 13B05
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(relating to application for license) within 60 days of entry of
the board's order, the successful applicant shall pay a
licensing fee of $5,000,000 if a licensee or $50,000 if a
significant vendor.
§ 13B10. Accounting and operational internal controls.
Each interactive gaming license applicant shall submit to the
board and department, in such manner as the board shall require,
a description of its administrative and accounting procedures in
detail, including its written system of internal control. In
addition to other such standards that the board, in its
discretion, may choose to require, the board shall require
licensees to implement appropriate safeguards:
(1) To ensure, to a reasonable degree of certainty, that
authorized participants are not less than 21 years of age.
(2) To ensure, to a reasonable degree of certainty, that
authorized participants are physically located within this
Commonwealth or such other jurisdiction that is permissible
under this chapter.
(3) To protect, to a reasonable degree of certainty, the
privacy and online security of authorized participants.
(4) 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, sometimes referred to as
"bots," that make bets or wagers according to algorithms.
(5) To minimize compulsive gambling and to provide
notice to authorized participants of resources to help
problem gamblers.
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(6) To ensure authorized participants' funds are held in
accounts segregated from the funds of licensees and otherwise
are protected from corporate insolvency, financial risk or
criminal or civil actions against the licensee.
§ 13B11. Interactive gaming tax.
(a) Weekly taxation.--Each licensee shall report to the
department and pay from its daily gross interactive gaming
revenue, on a form and in a manner prescribed by the department,
a tax of 14% of its daily gross interactive gaming revenue,
which shall be payable to the department on a weekly basis and
shall be based upon gross interactive gaming revenue for the
previous week.
(b) Taxes on out-of-State wagering.--The tax rate which
shall be assessed and collected by the department with respect
to any wagers placed by residents of this Commonwealth with an
interactive gaming operator outside of this Commonwealth, but
authorized pursuant to an interactive gaming agreement, shall be
governed by the agreement but may not exceed 14% of gross
interactive gaming revenue derived from residents of this
Commonwealth.
(c) Taxes held in trust.--All funds owed to the Commonwealth
under this section shall be held in trust for the Commonwealth
by the licensee until the funds are paid to the department.
Unless otherwise agreed to by the board, a licensee shall
establish a separate bank account into which such funds shall be
deposited and maintained until paid to the department.
(d) Federal presumption.--In the event Federal law
authorizes interactive gaming which establishes a tax based on
gross interactive gaming revenue, deposits or the substantial
equivalent of or intended substitute for either of them, of
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which a portion is allocated to the states, that tax shall
supersede, in its entirety, the tax imposed by this section.
§ 13B12. Prohibition on Internet cafes.
(a) General rule.--No organization or commercial enterprise,
other than a licensee, 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 interactive games.
(b) Construction.--Nothing in this section shall be
construed to require the owner or operator of a hotel or motel
or other public place of general use in this Commonwealth to
prohibit or block guests from playing interactive games.
§ 13B13. Testing of hardware, software and equipment.
(a) Testing by the board.--The board may expand its testing
facility, utilize the services of a private testing facility or
adopt the testing and certification standards of another
jurisdiction and may approve computer hardware, software or
associated equipment based on the prior approval of a private
testing facility or of another jurisdiction whose standards the
board reasonably determines are adequate and comparable to those
required by this part. Costs associated with the expansion of
its own testing facility shall be assessed on significant
vendors licensed to provide interactive gaming platforms.
(b) Approval.--
(1) No interactive gaming platform may be utilized by a
licensee unless approved by the board or its testing and
certification facility under this section. The board shall
not approve an interactive gaming platform unless the
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platform is subject to the control, and is the ultimate
responsibility, of the licensee.
(2) This subsection shall not be construed to prohibit a
licensee from licensing use or delegating daily operation of
the interactive gaming platform from or to a significant
vendor.
§ 13B14. Expanded compulsive and problem gambling programs.
(a) Expanded programs.--
(1) The board and the Department of Health shall jointly
develop expanded programs to address compulsive and problem
gambling issues relating to interactive gaming.
(2) Licensees shall address compulsive and problem
gambling issues in the context of interactive gaming in their
respective compulsive and problem gambling plans on file with
the board.
(b) Message.--Licensees shall permanently and continuously
display the following message to persons at the time of logging
on to the Internet websites of the licensees or any interactive
gaming skin:
If you or someone you know has a gambling problem and
wants help, call 1-800-GAMBLER.
§ 13B15. Application of other provisions of this part.
The following sections of this part, which are expressly
applicable to the conduct or operation of slot machines or table
games, are also deemed applicable to interactive gaming under
this chapter:
(1) The board's power and duty to require that licensees
prohibit persons under 21 years of age from playing
interactive games under section 1207(8) (relating to
regulatory authority of board).
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(2) The obligation to include information on interactive
gaming in the board's annual report under section 1211(a.1)
(relating to reports of board).
(3) The procedures, parameters and time frames for
promulgating temporary regulations under section 13A03(a) and
(b) (relating to temporary table game regulations).
(4) Manufacturing licensing requirements pursuant to
section 1317.1 (relating to manufacturer licenses).
(5) Gaming service provider requirements pursuant to
section 1317.2 (relating to gaming service provider).
(6) Permit renewal requirements pursuant to section 1326
(relating to license renewals).
(7) Section 1402 (relating to gross terminal revenue
deductions), except that recovery of the costs and expenses
of regulating interactive gaming under this chapter shall be
limited to 1% of gross interactive gaming revenue.
(8) The declaration that it shall be unlawful for an
individual under 21 years of age to wager, play or attempt to
play an interactive game under section 1518(a)(13.1)
(relating to prohibited acts; penalties).
Section 2. This act shall take effect in 60 days.
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