Regular Session 2017-2018 House Bill 0271 P.N. 1942

PRIOR PRINTER'S NOS. 229, 1028, 1237, 1821,

1839

PRINTER'S NO. 1942

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

271

Session of

2017

INTRODUCED BY ORTITAY, V. BROWN, D. COSTA, DUNBAR, ENGLISH,

KORTZ, WARD, YOUNGBLOOD, NELSON AND JOZWIAK, JANUARY 31, 2017

AMENDMENTS TO SENATE AMENDMENTS, HOUSE OF REPRESENTATIVES, JUNE

7, 2017

AN ACT

Amending Title 4 (Amusements) of the Pennsylvania Consolidated

Statutes, providing for fantasy contests and for iLottery; in

general provisions, further providing for legislative intent

and for definitions; in Pennsylvania Gaming Control Board,

further providing for general and specific powers, for

licensed gaming entity application appeals from board, for

board minutes and records, for regulatory authority of board,

for 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

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repeal.

AMENDING TITLES 3 (AGRICULTURE), 4 (AMUSEMENTS) AND 18 (CRIMES

AND OFFENSES) OF THE PENNSYLVANIA CONSOLIDATED STATUTES, IN

RACE HORSE INDUSTRY REFORM, REPEALING DEFINITIONS AND

PROVISIONS RELATING TO PLACE AND MANNER OF CONDUCTING PARI-

MUTUEL WAGERING AT RACETRACK ENCLOSURE AND TO PARI-MUTUEL

WAGERING AT NONPRIMARY LOCATIONS AND FURTHER PROVIDING FOR

LICENSING COSTS AND FEES AND FOR OPERATIONS; PROVIDING FOR

FANTASY CONTESTS, ESTABLISHING A LOTTERY SALES ADVISORY

COUNCIL WITHIN THE DEPARTMENT OF REVENUE AND PROVIDING FOR

ILOTTERY; IN GENERAL PROVISIONS, FURTHER PROVIDING FOR

LEGISLATIVE INTENT AND FOR DEFINITIONS; IN PENNSYLVANIA

GAMING CONTROL BOARD, FURTHER PROVIDING FOR PENNSYLVANIA

GAMING CONTROL BOARD ESTABLISHED, FOR GENERAL AND SPECIFIC

POWERS, FOR LICENSED GAMING ENTITY APPLICATION APPEALS FROM

BOARD, FOR BOARD MINUTES AND RECORDS, FOR REGULATORY

AUTHORITY OF BOARD, FOR SLOT MACHINE LICENSE FEE, FOR REPORTS

OF BOARD AND FOR DIVERSITY GOALS OF BOARD; IN LICENSEES,

FURTHER PROVIDING FOR CATEGORY 1 SLOT MACHINE LICENSE AND FOR

CATEGORY 3 SLOT MACHINE LICENSE, PROVIDING FOR REMAINING

CATEGORY 2 LICENSES, FURTHER PROVIDING FOR NUMBER OF SLOT

MACHINE LICENSES, FOR SLOT MACHINE LICENSE APPLICATION, FOR

SUPPLIER LICENSES AND FOR MANUFACTURER LICENSES, PROVIDING

FOR NONGAMING SERVICE PROVIDER, FURTHER PROVIDING FOR SLOT

MACHINE TESTING AND CERTIFICATION STANDARDS AND FOR LICENSE

RENEWALS, PROVIDING FOR SLOT MACHINE LICENSE OPERATION FEE

AND FURTHER PROVIDING FOR CHANGE IN OWNERSHIP OR CONTROL OF

SLOT MACHINE LICENSEE; REPEALING PROVISIONS RELATED TO

MULTIPLE SLOT MACHINE LICENSE PROHIBITION AND PROHIBITING

UNDUE ECONOMIC CONCENTRATION; IN TABLE GAMES, FURTHER

PROVIDING FOR AUTHORIZATION TO CONDUCT TABLE GAMES, FOR TABLE

GAME TOURNAMENTS, FOR OTHER FINANCIAL TRANSACTIONS, FOR TABLE

GAME DEVICE AND ASSOCIATED EQUIPMENT TESTING AND

CERTIFICATION STANDARDS, FOR TABLE GAME AUTHORIZATION FEE AND

FOR LOCAL SHARE ASSESSMENT; PROVIDING FOR INTERACTIVE GAMING,

FOR SPORTS WAGERING, SPORTS WAGERING TAX AND LOCAL FEE

ASSESSMENT AND FOR SLOT MACHINES AT NONPRIMARY LOCATIONS; IN

REVENUES, FURTHER PROVIDING FOR GROSS TERMINAL REVENUE

DEDUCTIONS, FOR ESTABLISHMENT OF STATE GAMING FUND AND NET

SLOT MACHINE REVENUE DISTRIBUTION AND FOR PENNSYLVANIA GAMING

ECONOMIC DEVELOPMENT AND TOURISM FUND; IN ADMINISTRATION AND

ENFORCEMENT, FURTHER PROVIDING FOR RESPONSIBILITY AND

AUTHORITY OF THE DEPARTMENT OF REVENUE, FOR WAGERING ON

CREDIT, FOR COMPULSIVE AND PROBLEM GAMBLING PROGRAM, FOR

FINANCIAL AND EMPLOYMENT INTERESTS, FOR POLITICAL INFLUENCE,

FOR REGULATION REQUIRING EXCLUSION OR EJECTION OF CERTAIN

PERSONS, FOR REPEAT OFFENDERS EXCLUDABLE FROM LICENSED GAMING

FACILITY, FOR LIST OF PERSONS SELF EXCLUDED FROM GAMING

ACTIVITIES, FOR INVESTIGATIONS AND ENFORCEMENT AND FOR

PROHIBITED ACTS AND PENALTIES AND PROVIDING FOR CASINO LIQUOR

LICENSES; IN MISCELLANEOUS PROVISIONS, FURTHER PROVIDING FOR

APPROPRIATIONS AND FOR REPAYMENTS TO STATE GAMING FUND;

PROVIDING FOR VIDEO GAMING; ESTABLISHING THE VIDEO GAMING

FUND, THE FIRE COMPANY AND EMERGENCY RESPONDER GRANT FUND,

THE CITY OF THE FIRST CLASS ENFORCEMENT FUND, THE LOTTERY

STABILIZATION FUND AND THE GUN VIOLENCE TASK FORCE FUND; IN

RIOT, DISORDERLY CONDUCT AND RELATED OFFENSES, FURTHER

PROVIDING FOR THE OFFENSE OF GAMBLING DEVICES, GAMBLING,

ETC.; AND MAKING RELATED REPEALS.

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The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Title 4 of the Pennsylvania Consolidated Statutes

is amended by adding a part to read:

PART I

AMUSEMENTS GENERALLY

Chapter

1. Preliminary Provisions (Reserved)

3. Fantasy Contests

5. (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.

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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

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

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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 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.

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

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

the total entry fees collected from all in-State participants

divided by the total entry fees collected from all participants

in the fantasy contest.

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

applicant for a fantasy contest license or a licensed operator

in a director or department head capacity and who is empowered

to make discretionary decisions that regulate fantasy contest

operations as determined by the board.

"Licensed entity representative." A person, including an

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

to represent the interest of an applicant, licensee or other

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

which is regulated under this chapter regarding a matter before,

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

"Licensed gaming entity." As defined in section 1103

(relating to definitions).

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

license.

"Participant." An individual who participates in a fantasy

contest, whether the individual is located in this Commonwealth

or another jurisdiction.

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

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, a director, a person who directly

holds a beneficial interest in or ownership of the securities of

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an applicant for a fantasy contest license or a licensed

operator, a 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, a 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, an 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

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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

appropriations 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

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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

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Certified Public Accountants to verify compliance with

the provisions of this chapter and board regulations;

(ii) annually contract with a testing laboratory

approved by the board to verify compliance with the

provisions of this chapter and board regulations; and

(iii) annually submit to the board and department a

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

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

laboratory required by subparagraph (ii).

(11) In conjunction with the Department of Drug and

Alcohol Programs or successor agency, to develop a process by

which licensed operators provide participants with a toll-

free telephone number that provides individuals with

information on how to access appropriate treatment services

for compulsive and problem play.

(b.1) Licensed entity representative.--

(1) A licensed entity representative shall register with

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

registration shall include the name, employer or firm,

business address and business telephone number of both the

licensed entity representative and any licensed operator,

applicant for licensure or other person being represented.

(2) A licensed entity representative shall have an

affirmative duty to update its registration information on an

ongoing basis. Failure to update shall be punishable by the

board.

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

representatives which shall contain the information required

under paragraph (1) and shall be available on the board's

publicly accessible Internet website.

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

shall be construed to authorize the board:

(1) To require background investigations for employees,

other than key employees and principals, of an applicant for

a fantasy contest license or a licensed operator.

(2) To require 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

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than two years following the effective date of this section.

Regulations adopted after this period shall be promulgated as

provided by law.

§ 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.

files and records as it may deem appropriate.

(d) Confidentiality of information.--

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(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

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.

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(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

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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.

(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

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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.

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(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

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

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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.

contest license shall have the continuing duty to provide

information required by the board and to cooperate in any

inquiry or investigation.

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

discretion, may establish an abbreviated application process for

a fantasy contest license for persons that are also licensed

gaming entities. The abbreviated application may only require

information not in possession of the board that is necessary to

fulfill the requirements of this chapter.

§ 323. Issuance and denial of license.

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

applications for a license and shall issue a license to any

applicant that:

(1) Has submitted a completed application and paid the

nonrefundable application fee as required by the board under

section 322 (relating to application).

(2) Has demonstrated that the applicant has the

financial stability, integrity and responsibility to comply

with the provisions of this chapter and regulations

established by the board.

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

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

application for a license if the applicant:

(1) has knowingly made a false statement of material

fact or has deliberately failed to disclose any information

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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.

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.

20170HB0271PN1942 - 20 -

(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

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.

20170HB0271PN1942 - 21 -

(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.

20170HB0271PN1942 - 22 -

(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

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

20170HB0271PN1942 - 23 -

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

20170HB0271PN1942 - 24 -

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).

20170HB0271PN1942 - 25 -

(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 other procedures 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

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

the individual has self-excluded from the licensed operators'

fantasy contests;

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

20170HB0271PN1942 - 26 -

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;

(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 events;

20170HB0271PN1942 - 27 -

(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.

(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

20170HB0271PN1942 - 28 -

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

20170HB0271PN1942 - 29 -

license fee.

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

the acquisition by a person or group of persons acting in

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

other ownership interests, with the exception of 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.--

20170HB0271PN1942 - 30 -

(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.

(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

General Fund.

SUBCHAPTER D

FISCAL PROVISIONS

Sec.

331. Fantasy contest tax.

332. Licensed operator deposits.

20170HB0271PN1942 - 31 -

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.

(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.

§ 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)

20170HB0271PN1942 - 32 -

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

necessary to:

(i) recover costs or expenses incurred by the board

and the department in carrying out their powers and

duties under this chapter based on a budget submitted by

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

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

board in connection with carrying out its powers and

duties under this chapter.

(1) The board and the department shall prepare and

annually submit to the chairperson and minority chairperson

of the Appropriations Committee of the Senate and the

chairperson and minority chairperson of the Appropriations

Committee of the House of Representatives an itemized budget

consisting of amounts to be appropriated out of the accounts

20170HB0271PN1942 - 33 -

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 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

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

20170HB0271PN1942 - 34 -

collection of taxes, penalties, assessments and interest.

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

and 332, the department may promulgate regulations in the same

manner in which the board is authorized as provided in section

312 (relating to temporary regulations).

SUBCHAPTER E

MISCELLANEOUS PROVISIONS

Sec.

341. Applicability of other statutes.

342. Licensed gaming entities.

343. Funding.

§ 341. Applicability of other statutes.

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

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

to a fantasy contest conducted in accordance with this chapter.

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

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

not apply to a fantasy contest conducted in accordance with this

chapter.

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

contest conducted in accordance with this chapter.

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

fantasy contest or similar product authorized under the act of

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

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

the State Lottery or iLottery under section 703 (relating to

iLottery authorization).

§ 342. Licensed gaming entities.

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

20170HB0271PN1942 - 35 -

entity that holds a fantasy contest license.

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

construed to limit the board's general and sole regulatory

authority over the conduct of gaming or related activities under

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

certification, registration and regulation of gaming service

providers and individuals and entities associated with them.

fantasy contests that are exclusive to participants who are at

least 21 years of age.

(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.

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

20170HB0271PN1942 - 36 -

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.

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.

20170HB0271PN1942 - 37 -

"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

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

20170HB0271PN1942 - 38 -

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) 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.

(2) Except for temporary regulations as proscribed

above, the secretary's authority to adopt temporary

regulations under subsection (a) shall expire two years after

the effective date of this section. Regulations adopted after

this period shall be promulgated as provided by law.

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

prompt implementation of iLottery in this Commonwealth, initial

contracts entered into by the department for iLottery and

related gaming systems, including any necessary hardware,

software, licenses or related services shall not be subject to

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

20170HB0271PN1942 - 39 -

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 laws or regulations

related to the payment of lottery prizes, personally identifying

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

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

such as name, address, telephone number or player financial

information, shall be considered confidential and otherwise

exempt from disclosure whether retained by the department, any

agent of the department or a lottery retailer.

(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

20170HB0271PN1942 - 40 -

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

20170HB0271PN1942 - 41 -

amended and the section is amended by adding definitions to

read:

§ 1103. Definitions.

The following words and phrases when used in this part shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

* * *

"Airport authority." 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

20170HB0271PN1942 - 42 -

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.

(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

20170HB0271PN1942 - 43 -

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, interactive gaming certificate holder, interactive

gaming 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, interactive gaming certificate holder or interactive

gaming 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

20170HB0271PN1942 - 44 -

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,

interactive gaming certificate holder's or interactive gaming

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.

"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.

* * *

20170HB0271PN1942 - 45 -

"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 or interactive gaming licensee 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:

20170HB0271PN1942 - 46 -

(1) Cashiers.

(2) Change personnel.

(3) Count room personnel.

(4) Slot attendants.

(5) Hosts or other individuals authorized to extend

complimentary services, including employees performing

functions similar to those performed by a gaming junket

representative.

(6) Machine mechanics, computer machine technicians or

table game device technicians.

(7) Security personnel.

(8) Surveillance personnel.

(9) Promotional play supervisors, credit supervisors,

pit supervisors, cashier supervisors, shift supervisors,

table game managers and assistant managers and other

supervisors and managers, except for those specifically

identified in this part as key employees.

(10) Boxmen.

(11) Dealers or croupiers.

(12) Floormen.

(13) Personnel authorized to issue promotional play.

(14) Personnel authorized to issue credit.

The term shall include employees of a person holding a

supplier's license whose duties are directly involved with the

repair or distribution of slot machines, table game devices or

associated equipment or 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

20170HB0271PN1942 - 47 -

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

20170HB0271PN1942 - 48 -

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.

* * *

20170HB0271PN1942 - 49 -

"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

(relating to fantasy contests).

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

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

20170HB0271PN1942 - 50 -

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 ,

interactive gaming licensee or other person on behalf of an

interactive gaming certificate holder or interactive gaming

licensee 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 , interactive gaming licensee 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

20170HB0271PN1942 - 51 -

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).

"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.

20170HB0271PN1942 - 52 -

"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

licensee 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 interactive gaming licensee makes

authorized interactive games available for play.

* * *

20170HB0271PN1942 - 53 -

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

or department head capacity and who is empowered to make

discretionary decisions that regulate slot machine or table game

operations or interactive gaming operations, including the

general manager and assistant manager of the licensed facility,

director of slot operations, director of table game operations,

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

operations, director of surveillance, director of marketing,

director of management information systems, director of

interactive gaming system programs or other similar job

classifications associated with interactive gaming, persons who

manage, control or administer interactive gaming or the bets and

wagers associated with authorized interactive games, director of

security, comptroller and any employee who is not otherwise

designated as a gaming employee and who supervises the

operations of these departments or to whom these department

directors or department heads report and such other positions

not otherwise designated or defined under this part which the

Pennsylvania Gaming Control Board shall determine based on

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

20170HB0271PN1942 - 54 -

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,

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

20170HB0271PN1942 - 55 -

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

20170HB0271PN1942 - 56 -

flight status and ordering food or beverages.

(2) The term does not include a tablet or computing

device that 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.

"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

20170HB0271PN1942 - 57 -

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

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

another player, a slot machine licensee, interactive gaming

certificate holder or interactive gaming 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).

20170HB0271PN1942 - 58 -

* * *

"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 or interactive gaming licensee .

* * *

"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

20170HB0271PN1942 - 59 -

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, interactive gaming certificate holders or

interactive gaming 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,

20170HB0271PN1942 - 60 -

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.

* * *

(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

20170HB0271PN1942 - 61 -

(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

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

20170HB0271PN1942 - 62 -

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;

20170HB0271PN1942 - 63 -

(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

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,

20170HB0271PN1942 - 64 -

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

20170HB0271PN1942 - 65 -

information or customer prospects for services subject to

competition.

(iv) Security information, including risk prevention

plans, detection and countermeasures, location of count

rooms, location of interactive gaming restricted areas

and redundancy facilities, emergency management plans,

security and surveillance plans, equipment and usage

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.

* * *

20170HB0271PN1942 - 66 -

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

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

20170HB0271PN1942 - 67 -

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

20170HB0271PN1942 - 68 -

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

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

20170HB0271PN1942 - 69 -

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 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 , interactive gaming licensee and other persons

20170HB0271PN1942 - 70 -

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.

* * *

(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 a 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:

20170HB0271PN1942 - 71 -

§ 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

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

§ 1309. Slot machine license application.

* * *

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

20170HB0271PN1942 - 72 -

* * *

(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 and an interactive gaming

certificate concurrently. All fees for an interactive gaming

certificate shall be paid by the applicant in accordance with

the requirements of this part.

* * *

Section 12. Sections 1317(a) and 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

20170HB0271PN1942 - 73 -

interactive gaming devices and associated equipment for use in

this Commonwealth shall apply to the board for a manufacturer

license.

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

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

application fee, and shall include all of the following:

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

the applicant's affiliates, intermediaries, subsidiaries and

holding companies; the principals and key employees of each

business; and a list of employees and their positions within

each business, as well as any financial information required

by the board.

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

intermediary, subsidiary or holding company of the applicant

are not slot machine licensees.

(3) The consent to a background investigation of the

applicant, its principals and key employees or other persons

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

information necessary for the completion of the background

investigation.

(4) The details of any equivalent license granted or

denied by other jurisdictions where gaming activities as

authorized by this part are permitted and consent for the

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.

20170HB0271PN1942 - 74 -

* * *

(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

20170HB0271PN1942 - 75 -

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:

§ 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-

20170HB0271PN1942 - 76 -

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.

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

during the time for which the notification remains valid

20170HB0271PN1942 - 77 -

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

20170HB0271PN1942 - 78 -

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 and any

required fee under this section when a threat to public

health, welfare or safety exists or circumstances outside the

control of the slot machine licensee require immediate action

to mitigate damage or loss to the slot machine licensee's

licensed facility or to the Commonwealth.

(2) A slot machine licensee that uses a nongaming

service provider in accordance with paragraph (1) shall:

(i) Notify the board immediately upon engaging a

nongaming service provider for which the board has not

previously received notification in accordance with

subsection (a).

(ii) Provide the notification required under

subsection (a) within a reasonable time as established by

the board.

(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.

20170HB0271PN1942 - 79 -

(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

20170HB0271PN1942 - 80 -

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, registration or certificate 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

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

20170HB0271PN1942 - 81 -

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).

(b) Payment of fee.--The department shall develop a payment

schedule for the slot machine license operation fee imposed

under subsection (a).

the slot machine license 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 license

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

20170HB0271PN1942 - 82 -

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

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 slot machine 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).

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 (relating to definitions) shall not

be deemed a credit card advance machine under this section.

* * *

20170HB0271PN1942 - 83 -

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.

* * *

(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:

20170HB0271PN1942 - 84 -

* * *

(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:

* * *

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:

20170HB0271PN1942 - 85 -

(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.

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

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INTERACTIVE GAMING

Subchapter

A. General Provisions

B. Interactive Gaming Authorized

B.1. Multi-use Computing Devices

C. Conduct of Interactive Gaming

D. Facilities and Equipment

E. Testing and Certification

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

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markets throughout this Commonwealth.

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

Category 3 licensed facilities geographically dispersed in

this Commonwealth has become a critical component of economic

development and, if gaming activities continue to be properly

regulated and fostered, it will provide a substantial

contribution to the general health, welfare and prosperity of

this Commonwealth and 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.

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(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.

(11) (Reserved).

(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.

(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

20170HB0271PN1942 - 89 -

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

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applicant for an interactive gaming certificate or an

interactive gaming license is licensed in another state or

jurisdiction to operate interactive gaming, it may use an

abbreviated process requiring only the information determined

by it to be necessary to consider the issuance of a

certification under this chapter. The board, in its

discretion, may also rely upon the certification of

interactive games that have met the testing and certification

standards of a board-approved private testing and

certification facility.

(3) Establishing standards and rules to govern the

conduct of interactive gaming and the system of and wagering

associated with interactive gaming, including internal

controls and accounting controls, and the type, number,

payout, wagering limits and rules for interactive games.

(4) Establishing the method for calculating gross

interactive gaming revenue and standards for the daily

counting and recording of cash and cash equivalents received

in the conduct of authorized interactive games and ensure

that internal controls and accounting controls are followed,

including the maintenance of financial books and records and

the conduct of audits. The board shall consult with the

department in establishing these regulations.

(5) Establishing notice requirements pertaining to

minimum and maximum wagers on authorized interactive games.

(6) Ensuring that all facilities and interactive gaming

devices and associated equipment are arranged in a manner to

promote appropriate security for interactive gaming.

(7) Establishing technical standards for the approval of

interactive games, interactive gaming devices and associated

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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.

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(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

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 or interactive gaming licensee to:

(i) Provide written information on its interactive

gaming skin or Internet website, which explains the rules

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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 Internet 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 Internet 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

accordance with regulations adopted by the board.

(viii) Adopt standards to protect the privacy and

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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 or interactive gaming licensee'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,

20170HB0271PN1942 - 95 -

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

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.

(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

20170HB0271PN1942 - 96 -

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.

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

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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

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.

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(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

20170HB0271PN1942 - 99 -

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.

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

20170HB0271PN1942 - 100 -

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 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 if interactive

gaming is 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

20170HB0271PN1942 - 101 -

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

20170HB0271PN1942 - 102 -

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,

identity and location have not been verified or whose

age, identity and location cannot be verified in

accordance with this chapter and applicable

regulations of the board.

requirement that all wagers made in the conduct of

interactive gaming be initiated and received or

otherwise made exclusively within this Commonwealth.

(iv) The slot machine licensee's 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

20170HB0271PN1942 - 103 -

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.

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) A detailed description of accounting systems,

20170HB0271PN1942 - 104 -

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

the following:

(i) Interactive gaming accounts.

(ii) Per-hand charges, if applicable.

(iii) Transparency and reporting to the board and

the department.

(iv) Distribution of revenue to the Commonwealth and

winnings to registered players.

(v) Ongoing auditing and internal control compliance

reviews.

(17) Detailed information on security systems at the

licensed facility to protect the interactive gaming skins or

Internet website from internal and external breaches and

threats.

(18) 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

20170HB0271PN1942 - 105 -

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.

(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

20170HB0271PN1942 - 106 -

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.

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).

20170HB0271PN1942 - 107 -

(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

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.

20170HB0271PN1942 - 108 -

(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

20170HB0271PN1942 - 109 -

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

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

20170HB0271PN1942 - 110 -

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).

operators shall be subject to the applicable provisions of this

part that apply to interactive gaming certificate holders, as

determined by the board.

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

This section shall not apply to an interactive gaming operator

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

slot machine licensee that has been approved for and issued an

interactive gaming certificate under this chapter. The board

shall determine by regulation the criteria or conditions

necessary to determine whether an interactive gaming operator is

20170HB0271PN1942 - 111 -

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

20170HB0271PN1942 - 112 -

from an applicant for investigation, the bureau shall conduct

a preliminary investigation of the applicant and any key

interactive gaming employee of the applicant, as determined

by the board, which shall include a criminal background

investigation of the applicant and any interactive gaming

employees of the applicant, as determined by the board in

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

specific powers).

(4) If the bureau's preliminary investigation discloses

no adverse information that would impact suitability for

licensure, the bureau shall provide the board with a

statement of no objection to issuance of conditional

authorization to the applicant.

(5) If the bureau's preliminary investigation discloses

adverse information that would impact suitability for

licensure, it shall register an objection and no conditional

authorization may be issued until the bureau's concerns are

resolved.

(6) Any conditional authorization approved and issued to

an applicant for an interactive gaming license under this

subsection may be suspended or withdrawn by the board upon a

showing of good cause by the bureau.

§ 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

20170HB0271PN1942 - 113 -

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

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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

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

20170HB0271PN1942 - 115 -

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.

interactive gaming certificate holder to conduct interactive

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

shall be contingent upon the following:

(1) The interactive gaming certificate holder has

submitted a petition to the board seeking authorization to

manage the conduct of interactive gaming at the qualified

airport and the board has approved the petition.

(2) The interactive gaming certificate holder has

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

interactive gaming operator who will manage, operate and

control the conduct of interactive gaming at a qualified

airport on behalf of the interactive gaming certificate

holder and the interactive gaming operator has petitioned the

board for approval and the board has approved the agreement

and the petition.

(3) The interactive gaming certificate holder or

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

into an agreement with the concession operator at the

qualified airport for the conduct of interactive gaming

through the use of multi-use computing devices within the

20170HB0271PN1942 - 116 -

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

20170HB0271PN1942 - 117 -

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

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).

20170HB0271PN1942 - 118 -

(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

20170HB0271PN1942 - 119 -

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

and records).

required under this section, the board shall authorize an

interactive gaming certificate holder or an interactive gaming

operator, as applicable, to conduct interactive gaming at a

qualified airport through the use of multi-use computing

devices. The authorization of an interactive gaming certificate

holder or an interactive gaming operator, as applicable, to

conduct interactive gaming at a qualified airport in accordance

with this 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:

20170HB0271PN1942 - 120 -

(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

20170HB0271PN1942 - 121 -

shall pay a one-time, nonrefundable fee upon the authorization

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

20170HB0271PN1942 - 122 -

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

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

20170HB0271PN1942 - 123 -

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 and shall expire no later than

two years following publication . 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

20170HB0271PN1942 - 124 -

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.

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

20170HB0271PN1942 - 125 -

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.

20170HB0271PN1942 - 126 -

(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

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.

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

20170HB0271PN1942 - 127 -

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.

§ 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

20170HB0271PN1942 - 128 -

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.

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 interactive

gaming certificate holder 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

20170HB0271PN1942 - 129 -

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

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.

20170HB0271PN1942 - 130 -

(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

20170HB0271PN1942 - 131 -

(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

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.

20170HB0271PN1942 - 132 -

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.

20170HB0271PN1942 - 133 -

(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

20170HB0271PN1942 - 134 -

(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

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

20170HB0271PN1942 - 135 -

interactive gaming account by the registered player.

(11) Procedures for the protection of player funds,

including the segregation of player funds from operating

funds.

(12) Procedures for recording transactions pertaining to

interactive gaming.

(13) Procedures for the security and sharing of

personally identifiable information of registered players and

other information as required by the board and funds in

interactive gaming accounts. The procedures shall include the

means by which an interactive gaming certificate holder or

interactive gaming operator will provide notice to registered

players related to its sharing of personally identifiable

information. For the purpose of this paragraph, "personally

identifiable information" shall mean 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.

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(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

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

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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.

(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

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associated equipment testing and certification

standards.

§ 13C41. Interactive games and interactive gaming devices and

associated equipment testing and certification

standards.

(a) Testing required.--

(1) No interactive game or interactive gaming device or

associated equipment shall be used to conduct interactive

gaming unless it has been tested and approved by the board.

The board may, in its discretion and for the purpose of

expediting the approval process, refer testing to 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.

whether the testing and certification standards for interactive

games and interactive gaming devices and associated equipment as

20170HB0271PN1942 - 139 -

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

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 peer-to-peer interactive games

20170HB0271PN1942 - 140 -

(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.

this chapter, an interactive gaming certificate holder shall pay

a renewal fee in the amount of $250,000 per interactive gaming

certificate classification 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

20170HB0271PN1942 - 141 -

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

paid to the department under this section.

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 be less than the tax rates imposed under subsection (a) on

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).

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§ 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

20170HB0271PN1942 - 143 -

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

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).

(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.

20170HB0271PN1942 - 144 -

(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 natural 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 natural

person not physically present in this Commonwealth is not

inconsistent with Federal law or regulation or the law or

20170HB0271PN1942 - 145 -

regulation of the jurisdiction, including a foreign

jurisdiction, in which the natural 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

20170HB0271PN1942 - 146 -

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

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

20170HB0271PN1942 - 147 -

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

20170HB0271PN1942 - 148 -

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

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

20170HB0271PN1942 - 149 -

municipality until the funds are paid or transferred to the

fund. Unless otherwise agreed to by the board, a licensed gaming

entity shall establish a separate bank account to maintain

gross terminal revenue until such time as the funds are paid or

transferred under this section. Moneys in the fund are hereby

appropriated to the department on a continuing basis for the

purposes set forth in subsection (c).

(1) Transfer the slot machine tax and assessment imposed

in subsection (b) to the fund.

(2) From the local share assessment established in

subsection (b), make quarterly distributions among the

counties hosting a licensed facility in accordance with the

following schedule:

(i) If the licensed facility is a Category 1

licensed facility that is located at a harness racetrack

and the county, including a home rule county, in which

the licensed facility is located is:

[(A) A county of the first class: 4% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

Notwithstanding any other provision to the contrary,

funds from licensed gaming entities located within a

county of the first class shall not be distributed

outside of a county of the first class.]

(B) A county of the second class: 2% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

gross terminal revenue to the county hosting the

20170HB0271PN1942 - 150 -

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

(D) (I) A county of the third class: Except as

provided in subclause (II), 2% of the gross

terminal revenue from each such licensed facility

shall be deposited into a restricted receipts

account to be established in the Commonwealth

Financing Authority to be used exclusively for

grants for projects in the public interest to

municipalities within the county where the

licensed facility is located.

(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

20170HB0271PN1942 - 151 -

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

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

20170HB0271PN1942 - 152 -

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

20170HB0271PN1942 - 153 -

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 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

20170HB0271PN1942 - 154 -

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)] (b) 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.

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

20170HB0271PN1942 - 155 -

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

(D) A county of the third class: 1% of the

gross terminal revenue to the county hosting the

licensed facility from each such licensed facility.

An additional 1% of the gross terminal revenue to the

county hosting the licensed facility from each such

licensed facility for the purpose of municipal grants

within the county in which the licensee is located.

Notwithstanding the provisions of the Capital

Facilities Debt Enabling Act, grants made under this

clause may be utilized as local matching funds for

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

20170HB0271PN1942 - 156 -

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)] (B) 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.

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

20170HB0271PN1942 - 157 -

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.

as follows:

(1) Beginning January 1, 2018, the

sum of $250,000 shall be distributed

annually for a period of 20 years to a

20170HB0271PN1942 - 158 -

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

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

20170HB0271PN1942 - 159 -

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.

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

20170HB0271PN1942 - 160 -

grants to the county, to economic development

authorities or redevelopment authorities within the

county for grants for economic development projects,

community improvement projects, job training, other

projects in the public interest and reasonable

administrative costs. Notwithstanding the Capital

Facilities Debt Enabling Act, grants made under this

clause may be utilized as local matching funds for

other grants or loans from the Commonwealth.

(F) Counties of the fifth class: 2% of the

gross terminal revenue from each such licensed

facility shall be deposited and distributed as

follows:

(I) One percent to be distributed as

follows:

(a) Beginning in 2010, the sum of

$2,400,000 annually for a period of 20 years

to the county for purposes of funding debt

service related to the construction of a

community college campus located within the

county.

(b) Any funds not distributed under

subclause (a) shall be deposited into a

restricted receipts account to be established

in the Commonwealth Financing Authority to be

used exclusively for grants within the county

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

20170HB0271PN1942 - 161 -

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

Commonwealth.

20170HB0271PN1942 - 162 -

(G) Any county not specifically enumerated in

clauses [(A)] (B) 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

20170HB0271PN1942 - 163 -

for the purpose of supporting the maintenance and

refurbishment of the parks and heritage sites

throughout the county in which the licensed

facility is located.

(II) Twelve and one-half percent shall be

deposited for the purpose of supporting a child

advocacy center located within the county in

which the licensed facility is located.

(III) Twelve and one-half percent shall be

deposited for the purpose of supporting an

organization providing comprehensive support

services to victims of domestic violence,

including legal and medical aid, shelters,

transitional housing and counseling located

within the county in which the licensed facility

is located.

facility located in a county of the fifth class that

is contiguous to a county of the seventh class, 2% of

the gross terminal revenue from the licensed facility

shall be deposited into a restricted receipts account

to be established in the Commonwealth Financing

Authority to be used exclusively for grants within

the county for economic development projects,

infrastructure projects, community improvement

projects and other projects in the public interest

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

20170HB0271PN1942 - 164 -

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

20170HB0271PN1942 - 165 -

of a State statute shall not apply to this subparagraph.

(viii) If any provision of this paragraph is found

to be unenforceable for any reason, the distribution

provided for in the unenforceable provision shall be made

to the county in which the licensed facility is located

for the purposes of grants to municipalities in that

county, including municipal grants as specified in

subparagraph (v).

(ix) Nothing in this paragraph shall prevent any of

the above counties which directly receive a distribution

under this section from entering into intergovernmental

cooperative agreements with other jurisdictions for

sharing this money.

(3) From the local share assessment established in

subsection (b) and the slot machine license 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

20170HB0271PN1942 - 166 -

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 a school district of the

first class . 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

20170HB0271PN1942 - 167 -

projects, community improvement projects and other

projects in the public interest within the city of

the first class.

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

20170HB0271PN1942 - 168 -

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, less

any amount up to $5,000,000 received pursuant to a

written agreement with a licensed gaming entity executed

prior to the effective date of this part, shall be

distributed to the city, subject, however, to the

budgetary limitation in this subparagraph. In the event

that the city has a written agreement with a licensed

gaming entity executed prior to the effective date of

this part, the amount paid under the agreement to the

city shall be applied and credited [to the difference

between 2% of the gross terminal revenue and the

$10,000,000 owed under this subparagraph if the 2% of the

gross terminal revenue is less than $10,000,000. If 2% of

the gross terminal revenue is greater than the

$10,000,000 required to be paid under this subparagraph,

the credit shall not apply. The amount of gross terminal

revenue required to be paid pursuant to the agreement

shall be deemed to be gross terminal revenue for purposes

of this subparagraph.], up to $5,000,000, to the slot

machine license operation fee owed under section 1326.1.

The amount allocated to the designated municipalities

20170HB0271PN1942 - 169 -

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

20170HB0271PN1942 - 170 -

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

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

20170HB0271PN1942 - 171 -

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

20170HB0271PN1942 - 172 -

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

$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

20170HB0271PN1942 - 173 -

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).]

licensed gaming entity operating a licensed facility

and owning land adjacent to the licensed facility

located in more than one township of the second

class, other than a Category 3 licensed facility, to

the township of the second class that is located in a

county of the fifth class in which the adjacent land

is located, including racetracks, grazing fields or

any other adjoining real property.] For land owned by

a licensed gaming entity, other than a Category 3

licensed facility and located in more than one

township of the second class, $160,000 shall be

distributed annually to the township of the second

20170HB0271PN1942 - 174 -

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

20170HB0271PN1942 - 175 -

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

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

20170HB0271PN1942 - 176 -

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

20170HB0271PN1942 - 177 -

with paragraph (2) based upon the classification of

county where the licensed facility is located.

licensed facility is a township of the second class

in a county of the fifth class which is contiguous to

a county of the seventh class, 2% of the gross

terminal revenue from the Category 3 licensed

facility located in the municipality shall be

distributed to the municipality, subject, however, to

the budgetary limitation in this clause. The amount

allocated to the designated municipalities shall not

exceed the lesser of $1,000,000 or 50% of their total

budget for fiscal year 2009, adjusted for inflation

in subsequent years by an amount not to exceed an

annual cost-of-living adjustment calculated by

applying the percentage change in the Consumer Price

Index immediately prior to the date the adjustment is

due to take effect. Any remaining money shall be

collected by the department from each licensed gaming

entity and distributed in equal amounts to each

municipality contiguous to the host municipality.

However, the amount to be allocated to any contiguous

municipality shall not exceed the lesser of

$1,000,000 or 50% of the municipality's total budget

for fiscal year 2009, adjusted for inflation in

subsequent years by an amount not to exceed an annual

cost-of-living adjustment calculated by applying the

percentage change in the Consumer Price Index

immediately prior to the date the adjustment is due

to take effect. Any money remaining following

20170HB0271PN1942 - 178 -

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), (i.1), (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), (i.1), (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

20170HB0271PN1942 - 179 -

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

20170HB0271PN1942 - 180 -

municipal pension funds of the second class city; or

in the best interest of the second class city by such

intergovernmental cooperation authority. Such

revenues shall not be directed to or under the

control of such city of the second class or any

coordinator appointed pursuant to the act of July 10,

1987 (P.L.246, No.47), known as the Municipalities

Financial Recovery Act, for such city of the second

class.

(d) Consumer Price Index.--For purposes of subsection (c),

references to the Consumer Price Index shall mean the Consumer

Price Index for All Urban Consumers for the Pennsylvania, New

Jersey, Delaware and Maryland area for the most recent 12-month

period for which figures have been officially reported by the

United States Department of Labor, Bureau of Labor Statistics.

(e) Reporting.--

(1) In cooperation with the department and the

Commonwealth Financing Authority, the Department of Community

and Economic Development shall submit an annual report on all

distributions of local share assessments and slot machine

license operation fees to counties and municipalities under

this section to the chairman and minority chairman of the

Appropriations Committee of the Senate, the chairman and

minority chairman of the Community, Economic and Recreational

Development Committee of the Senate, the chairman and

minority chairman of the Appropriations Committee of the

House of Representatives and the chairman and minority

chairman of the Gaming Oversight Committee of the House of

Representatives. The report shall be submitted by [August 31,

20170HB0271PN1942 - 181 -

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

20170HB0271PN1942 - 182 -

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

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

20170HB0271PN1942 - 183 -

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.

for a slot machine licensee to apply for grants from the Casino

Marketing and Capital Development Account. The board shall

20170HB0271PN1942 - 184 -

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

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.

20170HB0271PN1942 - 185 -

(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.

* * *

provided in subsection (c.1), annually, the sum of $2,000,000

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

20170HB0271PN1942 - 186 -

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

20170HB0271PN1942 - 187 -

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, interactive gaming and fantasy contests 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

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

20170HB0271PN1942 - 188 -

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

20170HB0271PN1942 - 189 -

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

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

20170HB0271PN1942 - 190 -

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.

(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:

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

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

20170HB0271PN1942 - 191 -

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

20170HB0271PN1942 - 192 -

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.

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

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

20170HB0271PN1942 - 193 -

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

20170HB0271PN1942 - 194 -

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]

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.--

20170HB0271PN1942 - 195 -

(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

20170HB0271PN1942 - 196 -

holding, subsidiary or intermediary company with respect

thereto, if in the judgment of the State Ethics Commission or

the Supreme Court, as appropriate, employment will not

interfere with the responsibilities of the executive-level

public employee, public official or party officer and will

not create a conflict of interest or reasonable risk of the

public perception of a conflict of interest on the part of

the executive-level public employee, public official or party

officer.

* * *

Section 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

20170HB0271PN1942 - 197 -

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.

* * *

§ 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

20170HB0271PN1942 - 198 -

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

20170HB0271PN1942 - 199 -

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.

certificate holder or interactive gaming licensee or employee

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

any other party in any judicial proceeding for any harm,

monetary or otherwise, which may arise as a result of:

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

gaming privileges from or restore gaming privileges to a

self-excluded person; [or]

(1.1) the failure of an interactive gaming certificate

holder or interactive gaming licensee to withhold interactive

gaming privileges from or restore interactive gaming

privileges to a self-excluded person; or

(2) otherwise permitting or not permitting a self-

excluded person to engage in gaming activity in the facility

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

20170HB0271PN1942 - 200 -

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.

* * *

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

20170HB0271PN1942 - 201 -

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

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

20170HB0271PN1942 - 202 -

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

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

20170HB0271PN1942 - 203 -

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

20170HB0271PN1942 - 204 -

under this part, except that an authorized employee of a

licensee or an authorized employee of the board may

possess and use counterfeit chips or table game devices

or associated equipment that have been marked, loaded or

tampered with, or other cheating devices or any

unauthorized interactive gaming device or associated

equipment in performance of the duties of employment for

training, investigative or testing purposes only.

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

performance or by fraud or fraudulent scheme, or

manipulation, table game device or other device, or

interactive gaming device for himself or for another, win

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

licensed facility or to reduce or attempt to reduce a

losing wager.

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

alter, tamper 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.

20170HB0271PN1942 - 205 -

* * *

(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

20170HB0271PN1942 - 206 -

defense to any regulatory action by the board or the penalty

authorized under this section:

(i) the underage person falsely represented that he

was of the permitted 21 years of age in the application

for an interactive gaming account; and

(ii) the establishment of the interactive gaming

account was made in good faith reliance upon such

representation and in the reasonable belief that the

underage person was 21 years of age.

(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.

20170HB0271PN1942 - 207 -

* * *

(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)

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

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

20170HB0271PN1942 - 208 -

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

$300,000 if the person is a licensed manufacturer or

supplier.

(ii) For a second or subsequent violation of

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

a person shall be sentenced to pay a fine of:

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

$300,000 if the person is an individual;

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

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

$600,000 if the person is a licensed manufacturer or

supplier.

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

subsection (a)(3.1) commits a felony and, upon conviction,

shall be sentenced to pay a fine of not more than $1,000,000.

A person that is convicted of a second or subsequent

20170HB0271PN1942 - 209 -

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.

(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.

20170HB0271PN1942 - 210 -

* * *

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.

SECTION 1. THE DEFINITIONS OF "PRIMARY MARKET AREA OF A

RACETRACK" AND "SECONDARY MARKET OF A RACETRACK" IN SECTION 9301

OF TITLE 3 OF THE PENNSYLVANIA CONSOLIDATED STATUTES ARE

REPEALED:

§ 9301. 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:

* * *

["PRIMARY MARKET AREA OF A RACETRACK." THE LAND AREA

INCLUDED IN A CIRCLE DRAWN WITH THE RACETRACK AS THE CENTER AND

A RADIUS OF 35 LAND MILES.]

20170HB0271PN1942 - 211 -

<--

* * *

["SECONDARY MARKET AREA OF A RACETRACK." THE LAND AREA

INCLUDED IN A CIRCLE DRAWN WITH THE RACETRACK AS THE CENTER AND

A RADIUS OF 50 LAND MILES, NOT INCLUDING THE PRIMARY MARKET AREA

OF THE RACETRACK.]

* * *

SECTION 1.1. SECTION 9330(F) OF TITLE 3 IS REPEALED:

§ 9330. PLACE AND MANNER OF CONDUCTING PARI-MUTUEL WAGERING AT

RACETRACK ENCLOSURE.

* * *

[(F) PRIMARY MARKET AREA.--

(1) A LICENSED RACING ENTITY OR SECONDARY PARI-MUTUEL

ORGANIZATION MAY NOT ACCEPT A WAGER OR ESTABLISH ELECTRONIC

WAGERING OR ADVANCED DEPOSIT ACCOUNT WAGERING FOR ANY PERSON

LOCATED IN THE PRIMARY MARKET AREA OF A RACETRACK, OTHER THAN

THE RACETRACK AT WHICH THE LICENSED RACING ENTITY IS

CONDUCTING A HORSE RACE MEETING.

(2) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO

PROHIBIT A LICENSED RACING ENTITY FROM ACCEPTING A WAGER FROM

OR ESTABLISHING AN ELECTRONIC WAGERING ACCOUNT FOR ANY PERSON

LOCATED IN THE PRIMARY MARKET AREA OF THE RACETRACK WHERE THE

LICENSED RACING ENTITY IS CONDUCTING A HORSE RACE MEETING. IF

TWO TRACKS SHARE THE PRIMARY MARKET AREA, BOTH RACETRACKS

SHALL HAVE EQUAL RIGHTS TO THE MARKET IN THE SHARED AREA.]

SECTION 1.2. SECTIONS 9331(A)(1), (D)(4) AND (E), 9352(3)

AND (4) AND 9356(B)(2) OF TITLE 3 ARE AMENDED TO READ:

§ 9331. PARI-MUTUEL WAGERING AT NONPRIMARY LOCATIONS.

(A) NONPRIMARY LOCATIONS.--THE FOLLOWING SHALL APPLY:

(1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS CHAPTER,

THE COMMISSION MAY APPROVE A LICENSED RACING ENTITY TO

20170HB0271PN1942 - 212 -

CONTINUE TO OPERATE A NONPRIMARY LOCATION WHERE IT HAS

CONDUCTED PARI-MUTUEL WAGERING ON HORSE RACES CONDUCTED BY

THE LICENSED RACING ENTITY. THE LICENSED RACING ENTITY MAY

CONTINUE TO CONDUCT PARI-MUTUEL WAGERING AT THE LOCATION ON

HORSE RACES CONDUCTED BY ANOTHER LICENSED RACING ENTITY,

WHICH HORSE RACES MAY BE TELEVISED TO THE LOCATION OR ON

HORSE RACES SIMULCAST TO THE LOCATION UNDER SECTION 9329

(RELATING TO INTERSTATE SIMULCASTING)[, PROVIDED THAT:

(I) A LICENSED RACING ENTITY HAS NOT ESTABLISHED A

NONPRIMARY LOCATION WITHIN THE PRIMARY MARKET AREA OF ANY

RACETRACK OTHER THAN A RACETRACK WHERE THE LICENSED

RACING ENTITY CONDUCTS HORSE RACE MEETINGS. ESTABLISHMENT

OF A NONPRIMARY LOCATION BY A LICENSED RACING ENTITY

WITHIN THE PRIMARY MARKET AREA OF A RACETRACK WHERE THE

LICENSED RACING ENTITY CONDUCTS HORSE RACE MEETINGS SHALL

REQUIRE APPROVAL OF THE COMMISSION.

(II) A LICENSED RACING ENTITY HAS NOT ESTABLISHED A

NONPRIMARY LOCATION WITHIN THE SECONDARY MARKET AREA OF A

RACETRACK IF THE NONPRIMARY LOCATION IS APPROVED BY THE

COMMISSION.

(III) A LICENSED RACING ENTITY HAS NOT ESTABLISHED A

NONPRIMARY LOCATION IN AN AREA OUTSIDE THE PRIMARY AND

SECONDARY MARKET AREAS OF ANY RACETRACK IF THE LOCATION

IS APPROVED BY THE COMMISSION].

* * *

(D) PAYMENT OF PURSES.--A LICENSED RACING ENTITY CONDUCTING

A HORSE RACE MEETING WHERE PARI-MUTUEL WAGERING IS CONDUCTED AT

ONE OR MORE NONPRIMARY LOCATIONS SHALL DISTRIBUTE MONEY TO THE

HORSEMEN'S ORGANIZATION, OR, IN ACCORDANCE WITH THE PRACTICE OF

THE PARTIES, TO BE USED FOR PAYMENT OF PURSES AT THAT RACETRACK,

20170HB0271PN1942 - 213 -

AS FOLLOWS:

* * *

[(4) WHENEVER A NONPRIMARY LOCATION IS WITHIN THE

PRIMARY MARKET AREA OF A LICENSED RACING ENTITY OTHER THAN

THE LICENSED RACING ENTITY CONDUCTING THE RACES, THE

APPLICABLE PERCENTAGE SHALL BE DISTRIBUTED ONE-HALF TO THE

HORSEMEN'S ORGANIZATION AT THE RACETRACK OR IN ACCORDANCE

WITH THE PRACTICE OF THE PARTIES.]

* * *

[(E) OTHER PAYMENTS.--NOTWITHSTANDING ANY OTHER PROVISION OF

THIS CHAPTER, A NONPRIMARY LOCATION MAY BE ESTABLISHED WITHIN

THE PRIMARY MARKET AREA OF A RACETRACK BY AGREEMENT BETWEEN THE

LICENSED RACING ENTITY AND THE HORSEMEN'S ORGANIZATION AT THE

RACETRACK SPECIFYING THE TOTAL PERCENTAGE OF HANDLE WAGERED AT

THE NONPRIMARY LOCATION TO BE DISTRIBUTED TO THE HORSEMEN'S

ORGANIZATION, OR, IN ACCORDANCE WITH THE PRACTICE OF THE

PARTIES, TO BE USED FOR THE PAYMENT OF PURSES AT THAT RACETRACK.

IF NO AGREEMENT IS REACHED COVERING THE LOCATIONS, THE TOTAL

PERCENTAGE TO BE PAID FOR PURSES SHALL BE THE SAME AS THAT

APPLIED TO ON-TRACK WAGERING AT THE RACETRACK LOCATED WITHIN THE

PRIMARY MARKET AREA.]

§ 9352. LICENSING COSTS AND FEES.

COSTS AND FEES ARE AS FOLLOWS:

* * *

(3) INITIAL LICENSE FEE:

(I) THE FEE FOR AN ELECTRONIC WAGERING LICENSE UNDER

SECTION 9351(A) (RELATING TO GENERAL LICENSE

REQUIREMENTS) SHALL BE [$500,000] $50,000. IF AN

APPLICANT THAT IS ALSO A CATEGORY 1 SLOT MACHINE LICENSEE

OR ITS CORPORATE SUCCESSOR OR AFFILIATE PAID THE LICENSE

20170HB0271PN1942 - 214 -

FEE UNDER 4 PA.C.S. § 1209 (RELATING TO SLOT MACHINE

LICENSE FEE), THE FEE REQUIRED UNDER THIS PARAGRAPH SHALL

BE DEEMED PAID. A FEE PAID UNDER THIS PARAGRAPH SHALL BE

DEPOSITED IN THE STATE RACING FUND, OR, IN THE CASE OF A

DEEMED PAYMENT, TRANSFERRED TO THE STATE RACING FUND UPON

CERTIFICATION OF THE SECRETARY OF THE BUDGET.

(II) THE FEE FOR AN INITIAL TOTALISATOR OR RACING

VENDOR LICENSE UNDER SECTION 9351(A.1) SHALL BE $25,000

AND SHALL BE DEPOSITED IN THE STATE RACING FUND.

(4) LICENSE RENEWAL FEE:

(I) THE FEE FOR AN ELECTRONIC WAGERING LICENSE

RENEWAL UNDER SECTION 9351(B)(2) SHALL BE [$100,000]

$10,000. IF AN EXISTING LICENSEE UNDER THIS SECTION THAT

IS ALSO A CATEGORY 1 SLOT MACHINE LICENSEE OR ITS

CORPORATE SUCCESSOR OR AN AFFILIATE PAID THE LICENSE FEE

UNDER 4 PA.C.S. § 1209, THE FEE REQUIRED UNDER THIS

PARAGRAPH SHALL BE DEEMED PAID. A LICENSE RENEWAL MAY NOT

BE ISSUED UNTIL RECEIPT OF THE LICENSE RENEWAL FEE. THE

LICENSE FEE SHALL BE DEPOSITED INTO THE STATE RACING

FUND, OR, IN THE CASE OF A DEEMED PAYMENT, IT SHALL BE

TRANSFERRED TO THE STATE RACING FUND.

(II) THE FEE FOR THE RENEWAL OF A TOTALISATOR OR

RACING VENDOR LICENSE UNDER SECTION 9351(B)(1) SHALL BE

$5,000 AND SHALL BE DEPOSITED IN THE STATE RACING FUND.

* * *

§ 9356. OPERATIONS.

* * *

(B) REQUIREMENTS.--

* * *

(2) A LICENSEE SHALL [ENTER INTO AN AGREEMENT WITH EACH

20170HB0271PN1942 - 215 -

LICENSED RACING ENTITY IN THIS COMMONWEALTH ON WHOSE RACES

THE LICENSEE OFFERS WAGERING REGARDING PAYMENT OF HOST FEES

AND ANY OTHER APPLICABLE FEES, COSTS OR PAYMENTS OF ANY KIND

TO BE PAID TO THE LICENSED RACING ENTITY. THE LICENSED RACING

ENTITY AND THE APPLICABLE HORSEMEN'S ORGANIZATION SHALL

NEGOTIATE A SEPARATE AGREEMENT FOR CONTRIBUTIONS TO THE PURSE

ACCOUNT.] CONTRIBUTE TO THE PURSE ACCOUNT IN ACCORDANCE WITH

SECTION 9331(D) (RELATING TO PARI-MUTUEL WAGERING AT

NONPRIMARY LOCATIONS).

* * *

SECTION 1.3. TITLE 4 IS AMENDED BY ADDING A PART TO READ:

PART I

AMUSEMENTS GENERALLY

CHAPTER

1. PRELIMINARY PROVISIONS (RESERVED)

3. FANTASY CONTESTS

5. LOTTERY

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

20170HB0271PN1942 - 216 -

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." AS DEFINED IN SECTION 1103 (RELATING TO

DEFINITIONS).

"CONTROLLING INTEREST." EITHER OF THE FOLLOWING:

(1) FOR A PUBLICLY TRADED DOMESTIC OR FOREIGN

CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER

FORM OF PUBLICLY TRADED LEGAL ENTITY, A CONTROLLING INTEREST

IS AN INTEREST IF A PERSON'S SOLE VOTING RIGHTS UNDER STATE

LAW OR CORPORATE ARTICLES OR BYLAWS ENTITLE THE PERSON TO

ELECT OR APPOINT ONE OR MORE OF THE MEMBERS OF THE BOARD OF

DIRECTORS OR OTHER GOVERNING BOARD OR THE OWNERSHIP OR

BENEFICIAL HOLDING OF 5% OR MORE OF THE SECURITIES OF THE

PUBLICLY TRADED CORPORATION, PARTNERSHIP, LIMITED LIABILITY

COMPANY OR OTHER FORM OF PUBLICLY TRADED LEGAL ENTITY, UNLESS

THIS PRESUMPTION OF CONTROL OR ABILITY TO ELECT IS REBUTTED

BY CLEAR AND CONVINCING EVIDENCE.

(2) FOR A PRIVATELY HELD DOMESTIC OR FOREIGN

CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER

FORM OF PRIVATELY HELD LEGAL ENTITY, A CONTROLLING INTEREST

IS THE HOLDING OF SECURITIES OF 15% OR MORE IN THE LEGAL

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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 BOARD

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AUTHORIZING A PERSON TO OFFER FANTASY CONTESTS IN THIS

COMMONWEALTH IN ACCORDANCE WITH THIS CHAPTER.

"FANTASY CONTEST TERMINAL." A PHYSICAL, LAND-BASED

COMPUTERIZED OR ELECTRONIC TERMINAL OR SIMILAR DEVICE THAT

ALLOWS PARTICIPANTS TO:

(1) REGISTER FOR A FANTASY CONTEST ACCOUNT;

(2) PAY AN ENTRY FEE;

(3) SELECT ATHLETES FOR A FANTASY CONTEST;

(4) RECEIVE WINNINGS; OR

(5) OTHERWISE PARTICIPATE IN A FANTASY CONTEST.

"GAMING SERVICE PROVIDER." AS DEFINED IN SECTION 1103.

"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.

THE TERM INCLUDES AN INDIVIDUAL WHO PAYS AN ENTRY FEE THROUGH A

FANTASY CONTEST TERMINAL WITHIN A LICENSED FACILITY.

"IN-STATE PERCENTAGE." FOR EACH FANTASY CONTEST, THE

PERCENTAGE, ROUNDED TO THE NEAREST TENTH OF A PERCENT, EQUAL TO

THE TOTAL ENTRY FEES COLLECTED FROM ALL IN-STATE PARTICIPANTS

DIVIDED BY THE TOTAL ENTRY FEES COLLECTED FROM ALL PARTICIPANTS

IN THE FANTASY CONTEST.

"KEY EMPLOYEE." AN INDIVIDUAL WHO IS EMPLOYED BY AN

APPLICANT FOR A FANTASY CONTEST LICENSE OR A LICENSED OPERATOR

IN A DIRECTOR OR DEPARTMENT HEAD CAPACITY AND WHO IS EMPOWERED

TO MAKE DISCRETIONARY DECISIONS THAT REGULATE FANTASY CONTEST

OPERATIONS AS DETERMINED BY THE BOARD.

"LICENSED ENTITY REPRESENTATIVE." A PERSON, INCLUDING AN

ATTORNEY, AGENT OR LOBBYIST, ACTING ON BEHALF OF OR AUTHORIZED

TO REPRESENT THE INTEREST OF AN APPLICANT, LICENSEE OR OTHER

PERSON AUTHORIZED BY THE BOARD TO ENGAGE IN AN ACT OR ACTIVITY

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WHICH IS REGULATED UNDER THIS CHAPTER REGARDING A MATTER BEFORE,

OR WHICH MAY BE REASONABLY BE EXPECTED TO COME BEFORE, THE

BOARD.

"LICENSED GAMING ENTITY." AS DEFINED IN SECTION 1103.

"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 ANY

OTHER FORM OF LEGAL BUSINESS ENTITY.

"PRINCIPAL." AN OFFICER, DIRECTOR, PERSON WHO DIRECTLY HOLDS

A BENEFICIAL INTEREST IN OR OWNERSHIP OF THE SECURITIES OF AN

APPLICANT FOR A FANTASY CONTEST LICENSE OR A LICENSED OPERATOR,

PERSON WHO HAS A CONTROLLING INTEREST IN AN APPLICANT FOR A

FANTASY CONTEST LICENSE OR A LICENSED OPERATOR OR WHO HAS THE

ABILITY TO ELECT A MAJORITY OF THE BOARD OF DIRECTORS OF A

LICENSED OPERATOR OR TO OTHERWISE CONTROL A LICENSED OPERATOR,

LENDER OR OTHER LICENSED FINANCIAL INSTITUTION OF AN APPLICANT

FOR A FANTASY CONTEST LICENSE OR A LICENSED OPERATOR, OTHER THAN

A BANK OR LENDING INSTITUTION WHICH MAKES A LOAN OR HOLDS A

MORTGAGE OR OTHER LIEN ACQUIRED IN THE ORDINARY COURSE OF

BUSINESS, UNDERWRITER OF AN APPLICANT FOR A FANTASY CONTEST

LICENSE OR A LICENSED OPERATOR OR OTHER PERSON OR EMPLOYEE OF AN

APPLICANT FOR A FANTASY CONTEST LICENSE OR A LICENSED OPERATOR

DEEMED TO BE A PRINCIPAL BY THE BOARD.

"PRIZE OR AWARD." ANYTHING OF VALUE WORTH $100 OR MORE OR

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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 LIST OF COMMANDS THAT A FANTASY-CONTEST-RELATED

COMPUTER PROGRAM CAN EXECUTE THAT IS CREATED BY A PARTICIPANT OR

THIRD PARTY NOT APPROVED BY THE LICENSED OPERATOR TO AUTOMATE

PROCESSES ON A LICENSED OPERATOR'S FANTASY CONTEST PLATFORM.

"SEASON-LONG FANTASY CONTEST." A FANTASY CONTEST OFFERED BY

A LICENSED OPERATOR THAT IS CONDUCTED OVER AN ENTIRE SPORTS

SEASON.

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.

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(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

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TO MEET THE OBLIGATIONS UNDER THIS CHAPTER ACCRUING DURING

THE PERIOD BEGINNING JULY 1 OF THE FOLLOWING FISCAL 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

FOR THE ENSUING FISCAL YEAR.

(6) TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR

THE ADMINISTRATION AND ENFORCEMENT OF THIS CHAPTER. EXCEPT AS

PROVIDED IN SECTION 312 (RELATING TO TEMPORARY REGULATIONS),

REGULATIONS SHALL BE ADOPTED UNDER THE ACT OF JULY 31, 1968

(P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH DOCUMENTS

LAW, AND THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS

THE REGULATORY REVIEW ACT.

(7) TO ADMINISTER OATHS, EXAMINE WITNESSES AND ISSUE

SUBPOENAS COMPELLING THE ATTENDANCE OF WITNESSES OR THE

PRODUCTION OF DOCUMENTS AND RECORDS OR OTHER EVIDENCE OR TO

DESIGNATE OFFICERS OR EMPLOYEES TO PERFORM DUTIES REQUIRED BY

THIS CHAPTER.

(8) AT THE BOARD'S DISCRETION, TO DELEGATE ANY OF THE

BOARD'S RESPONSIBILITIES UNDER THIS CHAPTER TO THE EXECUTIVE

DIRECTOR OF THE BOARD OR OTHER DESIGNATED STAFF.

(9) TO REQUIRE LICENSED OPERATORS AND APPLICANTS FOR A

FANTASY CONTEST LICENSE TO SUBMIT ANY INFORMATION OR

DOCUMENTATION NECESSARY TO ENSURE THE PROPER REGULATION OF

FANTASY CONTESTS IN ACCORDANCE WITH THIS CHAPTER.

(10) TO REQUIRE LICENSED OPERATORS, EXCEPT FOR A

LICENSED OPERATOR OPERATING SEASON-LONG FANTASY CONTESTS THAT

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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-

FREE TELEPHONE NUMBER THAT PROVIDES INDIVIDUALS WITH

INFORMATION ON HOW TO ACCESS APPROPRIATE TREATMENT SERVICES

FOR COMPULSIVE AND PROBLEM PLAY.

(12) TO PROMULGATE REGULATIONS REGARDING THE PLACEMENT

AND OPERATION OF FANTASY CONTEST TERMINALS WITHIN LICENSED

FACILITIES AND TO ENSURE THE INTEGRITY OF FANTASY CONTEST

TERMINALS.

(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,

20170HB0271PN1942 - 224 -

APPLICANT FOR LICENSURE OR OTHER PERSON BEING REPRESENTED.

(2) A LICENSED ENTITY REPRESENTATIVE SHALL HAVE AN

AFFIRMATIVE DUTY TO UPDATE ITS REGISTRATION INFORMATION ON AN

ONGOING BASIS. FAILURE TO UPDATE SHALL BE PUNISHABLE BY THE

BOARD.

(3) THE BOARD SHALL MAINTAIN A LIST OF LICENSED ENTITY

REPRESENTATIVES WHICH SHALL CONTAIN THE INFORMATION REQUIRED

UNDER PARAGRAPH (1) AND SHALL BE AVAILABLE FOR PUBLIC

INSPECTION AT THE OFFICES OF THE BOARD AND ON THE BOARD'S

PUBLICLY ACCESSIBLE INTERNET WEBSITE.

(RELATING TO LICENSED GAMING ENTITIES), NOTHING IN THIS SECTION

SHALL BE CONSTRUED TO AUTHORIZE THE BOARD:

(1) TO REQUIRE BACKGROUND INVESTIGATIONS FOR EMPLOYEES,

OTHER THAN KEY EMPLOYEES AND PRINCIPALS, OF AN APPLICANT FOR

A FANTASY CONTEST LICENSE OR A LICENSED OPERATOR.

(2) TO REQUIRE ANY ADDITIONAL PERMITS OR LICENSES NOT

SPECIFICALLY ENUMERATED IN THIS CHAPTER.

§ 312. TEMPORARY REGULATIONS.

(A) PROMULGATION.--IN ORDER TO FACILITATE THE PROMPT

IMPLEMENTATION OF THIS CHAPTER, REGULATIONS PROMULGATED BY THE

BOARD SHALL BE DEEMED TEMPORARY REGULATIONS AND SHALL EXPIRE NO

LATER THAN TWO YEARS FOLLOWING THE EFFECTIVE DATE OF THIS

SECTION. THE BOARD MAY PROMULGATE TEMPORARY REGULATIONS NOT

SUBJECT TO:

(1) SECTIONS 201, 202, 203 AND 205 OF THE ACT OF JULY

31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH

DOCUMENTS LAW.

(2) SECTION 204(B) OF THE ACT OF OCTOBER 15, 1980

(P.L.950, NO.164), KNOWN AS THE COMMONWEALTH ATTORNEYS ACT.

20170HB0271PN1942 - 225 -

(3) THE ACT OF JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS

THE REGULATORY REVIEW ACT.

(B) EXPIRATION.--EXCEPT FOR TEMPORARY REGULATIONS CONCERNING

NETWORK CONNECTIVITY, SECURITY AND TESTING AND COMPULSIVE AND

PROBLEM PLAY, THE AUTHORITY PROVIDED TO THE BOARD TO ADOPT

TEMPORARY REGULATIONS IN SUBSECTION (A) SHALL EXPIRE NO LATER

THAN TWO YEARS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION.

REGULATIONS ADOPTED AFTER THIS PERIOD SHALL BE PROMULGATED AS

PROVIDED BY LAW.

§ 313. FANTASY CONTEST LICENSE APPEALS.

AN APPLICANT MAY APPEAL ANY FINAL ORDER, DETERMINATION OR

DECISION OF THE BOARD INVOLVING THE APPROVAL, ISSUANCE, DENIAL,

REVOCATION OR CONDITIONING OF A FANTASY CONTEST LICENSE IN

ACCORDANCE WITH 2 PA.C.S. CHS. 5 SUBCH. A (RELATING TO PRACTICE

AND PROCEDURE OF COMMONWEALTH AGENCIES) AND 7 SUBCH. A (RELATING

TO JUDICIAL REVIEW OF COMMONWEALTH AGENCY ACTION).

§ 314. BOARD MINUTES AND RECORDS.

(A) RECORD OF PROCEEDINGS.--THE BOARD SHALL MAINTAIN A

RECORD OF ALL PROCEEDINGS HELD AT PUBLIC MEETINGS OF THE BOARD.

THE VERBATIM TRANSCRIPT OF THE PROCEEDINGS SHALL BE THE PROPERTY

OF THE BOARD AND SHALL BE PREPARED BY THE BOARD UPON THE REQUEST

OF ANY BOARD MEMBER OR UPON THE REQUEST OF ANY OTHER PERSON AND

THE PAYMENT BY THAT PERSON OF THE COSTS OF PREPARATION.

(B) APPLICANT INFORMATION.--

(1) THE BOARD SHALL MAINTAIN A LIST OF ALL APPLICANTS

FOR A FANTASY CONTEST LICENSE. THE LIST SHALL INCLUDE A

RECORD OF ALL ACTIONS TAKEN WITH RESPECT TO EACH APPLICANT.

THE LIST SHALL BE OPEN TO PUBLIC INSPECTION DURING THE NORMAL

BUSINESS HOURS OF THE BOARD.

(2) INFORMATION UNDER PARAGRAPH (1) REGARDING AN

20170HB0271PN1942 - 226 -

APPLICANT WHOSE FANTASY CONTEST LICENSE HAS BEEN DENIED,

REVOKED OR NOT RENEWED SHALL BE REMOVED FROM THE LIST AFTER

SEVEN YEARS FROM THE DATE OF THE ACTION.

OTHER FILES AND RECORDS AS IT MAY DEEM APPROPRIATE.

(D) CONFIDENTIALITY OF INFORMATION.--

(1) THE FOLLOWING INFORMATION SUBMITTED BY AN APPLICANT

FOR A FANTASY CONTEST LICENSE UNDER SECTION 322 (RELATING TO

APPLICATION) OR OTHERWISE OBTAINED BY THE BOARD AS PART OF A

BACKGROUND OR OTHER INVESTIGATION FROM ANY SOURCE SHALL BE

CONFIDENTIAL AND WITHHELD FROM PUBLIC DISCLOSURE:

(I) ALL INFORMATION RELATING TO CHARACTER, HONESTY

AND INTEGRITY, INCLUDING FAMILY, HABITS, REPUTATION,

HISTORY OF CRIMINAL ACTIVITY, BUSINESS ACTIVITIES,

FINANCIAL AFFAIRS AND BUSINESS, PROFESSIONAL AND PERSONAL

ASSOCIATIONS.

(II) NONPUBLIC PERSONAL INFORMATION, INCLUDING HOME

ADDRESSES, TELEPHONE NUMBERS AND OTHER PERSONAL CONTACT

INFORMATION, SOCIAL SECURITY NUMBERS, EDUCATIONAL

RECORDS, MEMBERSHIPS, MEDICAL RECORDS, TAX RETURNS AND

DECLARATIONS, ACTUAL OR PROPOSED COMPENSATION, FINANCIAL

ACCOUNT RECORDS, CREDITWORTHINESS OR FINANCIAL CONDITION

RELATING TO AN APPLICANT.

(III) INFORMATION RELATING TO PROPRIETARY

INFORMATION, TRADE SECRETS, PATENTS OR EXCLUSIVE

LICENSES, ARCHITECTURAL AND ENGINEERING PLANS AND

INFORMATION RELATING TO COMPETITIVE MARKETING MATERIALS

AND STRATEGIES THAT MAY INCLUDE CUSTOMER-IDENTIFYING

INFORMATION OR CUSTOMER PROSPECTS FOR SERVICES SUBJECT TO

COMPETITION.

20170HB0271PN1942 - 227 -

(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

20170HB0271PN1942 - 228 -

SHALL BE WITHHELD FROM PUBLIC DISCLOSURE, IN WHOLE OR IN

PART, EXCEPT THAT ANY CONFIDENTIAL INFORMATION SHALL BE

RELEASED UPON THE ORDER OF A COURT OF COMPETENT JURISDICTION

OR, WITH THE APPROVAL OF THE ATTORNEY GENERAL, TO A DULY

AUTHORIZED LAW ENFORCEMENT AGENCY OR SHALL BE RELEASED TO THE

PUBLIC, IN WHOLE OR IN PART, TO THE EXTENT THAT SUCH RELEASE

IS REQUESTED BY AN APPLICANT FOR A FANTASY CONTEST LICENSE OR

LICENSED OPERATOR AND DOES NOT OTHERWISE CONTAIN CONFIDENTIAL

INFORMATION ABOUT ANOTHER PERSON.

(5) THE BOARD MAY SEEK A VOLUNTARY WAIVER OF

CONFIDENTIALITY FROM AN APPLICANT FOR A FANTASY CONTEST

LICENSE OR A LICENSED OPERATOR, BUT MAY NOT REQUIRE AN

APPLICANT OR LICENSED OPERATOR TO WAIVE ANY CONFIDENTIALITY

PROVIDED FOR IN THIS SUBSECTION AS A CONDITION FOR THE

APPROVAL OF AN APPLICATION, RENEWAL OF A FANTASY CONTEST

LICENSE OR ANY OTHER ACTION OF THE BOARD.

(E) NOTICE.--NOTICE OF THE CONTENTS OF ANY INFORMATION,

EXCEPT TO A DULY AUTHORIZED LAW ENFORCEMENT AGENCY UNDER THIS

SECTION, SHALL BE GIVEN TO AN APPLICANT OR LICENSEE IN A MANNER

PRESCRIBED BY THE RULES AND REGULATIONS ADOPTED BY THE BOARD.

(F) INFORMATION HELD BY DEPARTMENT.--FILES, RECORDS, REPORTS

AND OTHER INFORMATION IN THE POSSESSION OF THE DEPARTMENT

PERTAINING TO LICENSED OPERATORS SHALL BE MADE AVAILABLE TO THE

BOARD AS MAY BE NECESSARY FOR THE EFFECTIVE ADMINISTRATION OF

THIS CHAPTER.

§ 315. REPORTS OF BOARD.

(A) GENERAL RULE.--THE ANNUAL REPORT SUBMITTED BY THE BOARD

UNDER SECTION 1211 (RELATING TO REPORTS OF BOARD) SHALL INCLUDE

THE FOLLOWING INFORMATION ON THE CONDUCT OF FANTASY CONTESTS:

(1) TOTAL FANTASY CONTEST ADJUSTED REVENUES.

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(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

20170HB0271PN1942 - 230 -

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 MANNER AS SHALL BE REQUIRED

BY THE BOARD. AN APPLICATION FOR A FANTASY CONTEST LICENSE SHALL

CONTAIN THE FOLLOWING INFORMATION:

(1) (I) IF AN INDIVIDUAL, THE NAME, FEDERAL EMPLOYER

IDENTIFICATION NUMBER AND PRINCIPAL ADDRESS OF THE

APPLICANT;

(II) IF A CORPORATION, THE STATE OF ITS

INCORPORATION, THE FULL NAME AND ADDRESS OF EACH OFFICER

AND DIRECTOR THEREOF;

(III) IF A FOREIGN CORPORATION, WHETHER IT IS

QUALIFIED TO DO BUSINESS IN THIS COMMONWEALTH; AND

(IV) IF A PARTNERSHIP OR JOINT VENTURE, THE NAME AND

ADDRESS OF EACH OFFICER THEREOF.

(2) THE NAME AND ADDRESS OF THE PERSON HAVING CUSTODY OF

THE APPLICANT'S FINANCIAL RECORDS.

(3) THE NAMES AND ADDRESSES OF KEY EMPLOYEES.

(4) THE NAMES AND ADDRESSES OF EACH OF THE APPLICANT'S

PRINCIPALS.

(5) INFORMATION, DOCUMENTATION AND ASSURANCES RELATED TO

FINANCIAL AND CRIMINAL HISTORY AS THE BOARD DEEMS NECESSARY

TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE FINANCIAL

STABILITY, INTEGRITY AND RESPONSIBILITY OF THE APPLICANT AND

THE APPLICANT'S KEY EMPLOYEES AND PRINCIPALS.

(6) INFORMATION AND DOCUMENTATION NECESSARY TO ESTABLISH

20170HB0271PN1942 - 231 -

THE APPLICANT'S ABILITY TO COMPLY WITH SECTION 325 (RELATING

TO CONDITIONS OF LICENSURE).

(7) ANY OTHER INFORMATION REQUIRED BY THE BOARD.

(B) NONREFUNDABLE APPLICATION FEE.--EACH APPLICATION

SUBMITTED UNDER THIS CHAPTER SHALL BE ACCOMPANIED BY A

NONREFUNDABLE APPLICATION FEE, WHICH SHALL BE ESTABLISHED BY THE

BOARD, AND WHICH MAY NOT EXCEED THE AMOUNT NECESSARY TO

REIMBURSE THE BOARD FOR ALL COSTS INCURRED BY THE BOARD FOR

FULFILLING THE REQUIREMENTS OF THIS SECTION AND SECTION 323

(RELATING TO ISSUANCE AND DENIAL OF LICENSE).

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

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ESTABLISHED BY THE BOARD.

(3) HAS NOT BEEN DENIED A LICENSE UNDER SUBSECTION (B).

(B) REASONS TO DENY APPLICATIONS.--THE BOARD MAY DENY AN

APPLICATION FOR A LICENSE IF THE APPLICANT:

(1) HAS KNOWINGLY MADE A FALSE STATEMENT OF MATERIAL

FACT OR HAS DELIBERATELY FAILED TO DISCLOSE ANY INFORMATION

REQUESTED;

(2) EMPLOYS A PRINCIPAL OR KEY EMPLOYEE WHO HAS BEEN

CONVICTED OF A FELONY, A CRIME OF MORAL TURPITUDE OR ANY

CRIMINAL OFFENSE INVOLVING DISHONESTY OR BREACH OF TRUST

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 OF ANY REQUIREMENTS OF THE

BOARD;

(4) HAS HAD A REGISTRATION, PERMIT OR LICENSE TO CONDUCT

FANTASY CONTESTS DENIED OR REVOKED IN ANY OTHER JURISDICTION;

(5) HAS LEGALLY DEFAULTED IN THE PAYMENT OF ANY

OBLIGATION OR DEBT DUE TO THE COMMONWEALTH OR IS NOT

COMPLIANT WITH TAXES DUE; OR

(6) IS NOT QUALIFIED TO DO BUSINESS IN THIS COMMONWEALTH

OR IS NOT SUBJECT TO THE JURISDICTION OF THE COURTS OF THE

COMMONWEALTH.

REVIEW OF AN APPLICATION FOR A FANTASY CONTEST LICENSE WITHIN

120 DAYS OF RECEIPT OF THE COMPLETED APPLICATION. IF THE LICENSE

IS NOT ISSUED, THE BOARD SHALL PROVIDE THE APPLICANT WITH THE

JUSTIFICATION FOR NOT ISSUING THE LICENSE WITH SPECIFICITY.

(D) LICENSE FEE.--

(1) WITHIN 30 DAYS OF THE BOARD ISSUING A FANTASY

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CONTEST LICENSE, AN APPLICANT SHALL PAY TO THE BOARD A

LICENSE FEE OF $50,000.

(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 UNDER CHAPTER 13 (RELATING TO

LICENSES) AND TABLE GAME OPERATION CERTIFICATE UNDER CHAPTER 13A

(RELATING TO TABLE GAMES) 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 SUBSECTION SHALL BE CONSTRUED TO

RELIEVE A LICENSED OPERATOR OF THE AFFIRMATIVE DUTY TO NOTIFY

THE BOARD OF ANY CHANGES RELATING TO THE STATUS OF ITS

FANTASY CONTEST LICENSE OR TO ANY OTHER INFORMATION CONTAINED

IN THE APPLICATION MATERIALS ON FILE WITH THE BOARD.

(3) THE APPLICATION FOR RENEWAL OF A FANTASY CONTEST

LICENSE MUST BE SUBMITTED AT LEAST 90 DAYS PRIOR TO THE

EXPIRATION OF THE LICENSE AND INCLUDE AN UPDATE OF THE

INFORMATION CONTAINED IN THE INITIAL APPLICATION FOR A

FANTASY CONTEST LICENSE. A FANTASY CONTEST LICENSE FOR WHICH

A COMPLETED RENEWAL APPLICATION AND FEE AS REQUIRED UNDER

SUBSECTION (C) HAS BEEN RECEIVED BY THE BOARD SHALL CONTINUE

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IN EFFECT UNLESS AND UNTIL THE BOARD SENDS WRITTEN

NOTIFICATION TO THE LICENSED OPERATOR THAT THE BOARD HAS

DENIED THE RENEWAL OF THE LICENSE.

(B) REVOCATION OR FAILURE TO RENEW.--

(1) IN ADDITION TO ANY OTHER SANCTION THE BOARD MAY

IMPOSE UNDER THIS CHAPTER, THE BOARD MAY AT ITS DISCRETION

SUSPEND, REVOKE OR DENY RENEWAL OF A FANTASY CONTEST LICENSE

ISSUED UNDER THIS CHAPTER IF IT RECEIVES INFORMATION THAT:

(I) THE APPLICANT OR ANY OF THE APPLICANT'S KEY

EMPLOYEES OR PRINCIPALS ARE IN VIOLATION OF ANY PROVISION

OF THIS CHAPTER;

(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

20170HB0271PN1942 - 235 -

CEASE UNTIL THE BOARD HAS NOTIFIED THE APPLICANT THAT THE

SUSPENSION IS NO LONGER IN EFFECT.

(1) WITHIN 30 DAYS OF THE BOARD RENEWING A FANTASY

CONTEST LICENSE, THE LICENSED OPERATOR SHALL PAY TO THE BOARD

A RENEWAL FEE OF $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

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 COMMERCIALLY REASONABLE

PROCEDURES RELATED TO CONDUCT OF FANTASY CONTESTS IN THIS

COMMONWEALTH:

(1) PERMIT ONLY PARTICIPANTS WHO HAVE ESTABLISHED A

FANTASY CONTEST ACCOUNT WITH THE LICENSED OPERATOR TO

PARTICIPATE IN A FANTASY CONTEST CONDUCTED BY THE LICENSED

OPERATOR.

(2) VERIFY THE AGE, LOCATION AND IDENTITY OF ANY

PARTICIPANT PRIOR TO MAKING A DEPOSIT INTO A FANTASY CONTEST

ACCOUNT FOR A PARTICIPANT LOCATED IN THIS COMMONWEALTH. NO

PARTICIPANT UNDER 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

20170HB0271PN1942 - 236 -

USER NAME AND PASSWORD PRIOR TO ACCESSING A FANTASY CONTEST

ACCOUNT.

(4) ENSURE RULES AND PRIZES AND AWARDS ESTABLISHED BY

THE LICENSED OPERATOR FOR A FANTASY CONTEST ARE MADE KNOWN TO

A PARTICIPANT PRIOR TO THE ACCEPTANCE OF ANY ENTRY FEE.

(5) ENSURE THAT A PLAYER WHO IS THE SUBJECT OF A FANTASY

CONTEST IS RESTRICTED FROM ENTERING AS A PARTICIPANT IN A

FANTASY CONTEST THAT IS DETERMINED, IN WHOLE OR PART, ON THE

ACCUMULATED STATISTICAL RESULTS OF A TEAM OF INDIVIDUALS IN

THE LEAGUE IN WHICH THE PLAYER IS A MEMBER.

(6) ALLOW A PERSON TO RESTRICT HIMSELF FROM ENTERING A

FANTASY CONTEST OR ACCESSING A FANTASY CONTEST ACCOUNT FOR A

SPECIFIC PERIOD OF TIME AS DETERMINED BY THE PARTICIPANT AND

IMPLEMENT REASONABLE PROCEDURES TO PREVENT THE INDIVIDUAL

FROM PARTICIPATING IN THE LICENSED OPERATOR'S FANTASY

CONTESTS.

(7) ALLOW A PERSON TO RESTRICT THE TOTAL AMOUNT OF

DEPOSITS THAT THE PARTICIPANT MAY PAY TO THE LICENSED

OPERATOR FOR A SPECIFIC TIME PERIOD ESTABLISHED BY THE

PARTICIPANT AND IMPLEMENT REASONABLE PROCEDURES TO PREVENT

THE PARTICIPANT FROM EXCEEDING THE LIMIT.

(8) CONSPICUOUSLY POST COMPULSIVE AND PROBLEM PLAY

NOTICES AT FANTASY CONTEST REGISTRATION POINTS AND PROVIDE A

TOLL-FREE TELEPHONE NUMBER TO PARTICIPANTS WHO HAVE EXPRESSED

TO THE LICENSED OPERATOR ISSUES WITH COMPULSIVE AND PROBLEM

PLAY OF FANTASY CONTESTS. THE TOLL-FREE TELEPHONE NUMBER AND

THE COMPULSIVE AND PROBLEM PLAY NOTICE SHALL BE APPROVED BY

THE BOARD, IN CONSULTATION WITH THE DEPARTMENT OF DRUG AND

ALCOHOL PROGRAMS OR A SUCCESSOR AGENCY.

(9) DISCLOSE THE NUMBER OF ENTRIES A SINGLE PARTICIPANT

20170HB0271PN1942 - 237 -

MAY SUBMIT TO EACH FANTASY CONTEST AND TAKE COMMERCIALLY

REASONABLE STEPS TO PREVENT SUCH PARTICIPANTS FROM SUBMITTING

MORE THAN THE ALLOWABLE NUMBER.

(10) PROHIBIT THE LICENSED OPERATOR'S PRINCIPALS,

EMPLOYEES AND RELATIVES LIVING IN THE SAME HOUSEHOLD OF AN

EMPLOYEE OR PRINCIPAL FROM COMPETING IN A FANTASY CONTEST

OFFERED BY ANY LICENSED OPERATOR TO THE GENERAL PUBLIC AND IN

WHICH FANTASY CONTEST THE LICENSED OPERATOR OFFERS A PRIZE OR

AWARD.

(11) PREVENT THE SHARING OF CONFIDENTIAL INFORMATION

THAT COULD AFFECT FANTASY CONTEST PLAY WITH THIRD PARTIES

UNTIL THE INFORMATION IS MADE PUBLICLY AVAILABLE.

(12) TAKE COMMERCIALLY REASONABLE STEPS TO MAINTAIN THE

CONFIDENTIALITY OF A PARTICIPANT'S PERSONAL AND FINANCIAL

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

20170HB0271PN1942 - 238 -

REPORTING OF WINNINGS BY IN-STATE PARTICIPANTS TO THE

DEPARTMENT.

(15) REMIT TAXES OR ASSESSMENTS TO THE DEPARTMENT IN

ACCORDANCE WITH SECTIONS 331 (RELATING TO FANTASY CONTEST

TAX), 332 (RELATING TO LICENSED OPERATOR DEPOSITS) AND 333

(RELATING TO RESPONSIBILITY AND AUTHORITY OF DEPARTMENT).

(16) PROHIBIT THE USE OF SCRIPTS BY PARTICIPANTS AND

IMPLEMENT TECHNOLOGIES TO PREVENT THE USE OF SCRIPTS.

(17) MONITOR FANTASY CONTESTS FOR THE USE OF SCRIPTS AND

RESTRICT PLAYERS FOUND TO HAVE USED SUCH SCRIPTS FROM

PARTICIPATION IN FUTURE FANTASY CONTESTS.

(18) ESTABLISH ANY OTHER CONDITION DEEMED APPROPRIATE BY

THE BOARD.

§ 326. PROHIBITIONS.

(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 ATHLETIC EVENTS OR PLAYERS;

(3) PERMIT A PARTICIPANT TO ENTER A FANTASY CONTEST

PRIOR TO ESTABLISHING A FANTASY CONTEST ACCOUNT, UNLESS THE

LICENSED OPERATOR IS ALSO A LICENSED GAMING ENTITY AND THE

PARTICIPANT ENTERS A FANTASY CONTEST THROUGH A FANTASY

CONTEST TERMINAL LOCATED WITHIN THE LICENSED GAMING ENTITY'S

LICENSED FACILITY;

(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;

20170HB0271PN1942 - 239 -

(6) ISSUE CREDIT TO A PARTICIPANT TO ESTABLISH OR FUND A

FANTASY CONTEST ACCOUNT;

(7) KNOWINGLY DIRECTLY MARKET TO A PARTICIPANT DURING

THE TIME PERIOD IN WHICH THE PARTICIPANT HAS SELF-EXCLUDED

FROM THE LICENSED OPERATOR'S FANTASY CONTESTS;

(8) KNOWINGLY PERMIT A PARTICIPANT TO ENTER THE LICENSED

OPERATOR'S FANTASY CONTESTS DURING THE TIME PERIOD IN WHICH

THE PARTICIPANT HAS SELF-EXCLUDED FROM THE LICENSED

OPERATORS' FANTASY CONTESTS;

(8.1) KNOWINGLY ALLOW A SELF-EXCLUDED INDIVIDUAL TO KEEP

A PRIZE OR AWARD.

(9) KNOWINGLY ACCEPT A DEPOSIT IN EXCESS OF A LIMIT

ESTABLISHED BY A PARTICIPANT FOR THE SPECIFIC TIME PERIOD

ESTABLISHED BY THE PARTICIPANT;

(10) SHARE CONFIDENTIAL INFORMATION THAT COULD AFFECT

FANTASY CONTEST PLAY WITH THIRD PARTIES UNTIL THE INFORMATION

IS MADE PUBLICLY AVAILABLE;

(11) KNOWINGLY PERMIT A PRINCIPAL, AN EMPLOYEE OR A

RELATIVE LIVING IN THE SAME HOUSEHOLD OF AN EMPLOYEE OR

PRINCIPAL TO BECOME A PARTICIPANT IN A FANTASY CONTEST

OFFERED BY ANY LICENSED OPERATOR IN WHICH A LICENSED OPERATOR

OFFERS A PRIZE OR AWARD;

(12) OFFER A FANTASY CONTEST WHERE:

(I) THE MINIMUM 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,

20170HB0271PN1942 - 240 -

POINT SPREAD OR PERFORMANCE OF A SINGLE ACTUAL TEAM OR

COMBINATION OF TEAMS OR SOLELY ON A SINGLE PERFORMANCE OF

AN INDIVIDUAL ATHLETE OR PLAYER IN A SINGLE ACTUAL EVENT;

(IV) THE WINNING OUTCOME IS NOT BASED ON STATISTICAL

RESULTS ACCUMULATED FROM FULLY COMPLETED ATHLETIC SPORTS

CONTESTS OR EVENTS, EXCEPT THAT PARTICIPANTS MAY BE

CREDITED FOR STATISTICAL RESULTS ACCUMULATED IN A

SUSPENDED OR SHORTENED SPORTS EVENT WHICH HAS BEEN

PARTIALLY COMPLETED ON ACCOUNT OF WEATHER OR OTHER

NATURAL OR UNFORESEEN EVENT;

(13) FAIL TO REMIT TAXES OR ASSESSMENTS TO THE

DEPARTMENT IN ACCORDANCE WITH SECTIONS 331 (RELATING TO

FANTASY CONTEST TAX), 332 (RELATING TO LICENSED OPERATOR

DEPOSITS) AND 333 (RELATING TO RESPONSIBILITY AND AUTHORITY

OF DEPARTMENT);

(14) KNOWINGLY ALLOW A PARTICIPANT TO USE A SCRIPT

DURING A FANTASY CONTEST;

(15) EXCEPT AS PERMITTED UNDER SECTION 342 (RELATING TO

LICENSED GAMING ENTITIES), OFFER OR MAKE AVAILABLE IN THIS

COMMONWEALTH A FANTASY CONTEST TERMINAL; AND

(16) PERFORM ANY OTHER 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.

(A) NOTIFICATION AND APPROVAL.--

(1) A LICENSED OPERATOR SHALL NOTIFY THE BOARD UPON

BECOMING AWARE OF ANY PROPOSED CHANGE OF OWNERSHIP OF THE

LICENSED OPERATOR BY A PERSON OR GROUP OF PERSONS ACTING IN

20170HB0271PN1942 - 241 -

CONCERT WHICH INVOLVES ANY OF THE FOLLOWING:

(I) MORE THAN 15% OF A LICENSED OPERATOR'S

SECURITIES OR OTHER OWNERSHIP INTERESTS.

(II) THE SALE OTHER THAN IN THE ORDINARY COURSE OF

BUSINESS OF A LICENSED OPERATOR'S ASSETS.

(III) ANY OTHER TRANSACTION OR OCCURRENCE DEEMED BY

THE BOARD TO BE RELEVANT TO FANTASY CONTEST LICENSE

QUALIFICATIONS.

(2) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (1), A

LICENSED OPERATOR SHALL NOT BE REQUIRED TO NOTIFY THE BOARD

OF ANY ACQUISITION BY AN INSTITUTIONAL INVESTOR UNDER

PARAGRAPH (1)(I) OR (II) IF THE INSTITUTIONAL INVESTOR HOLDS

LESS THAN 10% OF THE SECURITIES OR OTHER OWNERSHIP INTERESTS

REFERRED TO IN PARAGRAPH (1)(I) OR (II), THE SECURITIES OR

INTERESTS ARE PUBLICLY TRADED SECURITIES AND ITS HOLDINGS OF

SUCH SECURITIES WERE PURCHASED FOR INVESTMENT PURPOSES ONLY

AND THE INSTITUTIONAL INVESTOR FILES WITH THE BOARD A

CERTIFIED STATEMENT TO THE EFFECT THAT THE INSTITUTIONAL

INVESTOR HAS NO INTENTION OF INFLUENCING OR AFFECTING,

DIRECTLY OR INDIRECTLY, THE AFFAIRS OF THE LICENSED OPERATOR.

HOWEVER, 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 ANY

PROPOSED OR CONTEMPLATED CHANGE OF OWNERSHIP OF A LICENSED

OPERATOR THAT MEETS THE CRITERIA OF THIS SECTION.

(B) QUALIFICATION OF PURCHASER AND CHANGE OF CONTROL.--

(1) A PURCHASER OF THE ASSETS, OTHER THAN IN THE

ORDINARY COURSE OF BUSINESS, OF A LICENSED OPERATOR SHALL

INDEPENDENTLY QUALIFY FOR A FANTASY CONTEST LICENSE IN

ACCORDANCE WITH THIS CHAPTER AND SHALL PAY THE APPLICATION

20170HB0271PN1942 - 242 -

FEE AND LICENSE FEE AS REQUIRED BY SECTIONS 322 (RELATING TO

APPLICATION) AND 323 (RELATING TO ISSUANCE AND DENIAL OF

LICENSE), EXCEPT THAT IF THE PURCHASER OF ASSETS IS ANOTHER

LICENSED OPERATOR, THE PURCHASER OF ASSETS SHALL NOT BE

REQUIRED TO REQUALIFY FOR A FANTASY CONTEST LICENSE OR PAY

ANOTHER APPLICATION FEE AND LICENSE FEE.

(2) A CHANGE IN CONTROL OF ANY LICENSED OPERATOR SHALL

REQUIRE THAT THE LICENSED OPERATOR INDEPENDENTLY QUALIFY FOR

A FANTASY CONTEST LICENSE IN ACCORDANCE WITH THIS CHAPTER,

AND THE LICENSED OPERATOR SHALL PAY A NEW APPLICATION AND

LICENSE FEE AS REQUIRED BY SECTIONS 322 AND 323, EXCEPT THAT

IF THE NEW CONTROLLER IS ANOTHER LICENSED OPERATOR, THE NEW

CONTROLLER SHALL NOT BE REQUIRED TO REQUALIFY FOR A FANTASY

CONTEST LICENSE OR PAY ANOTHER APPLICATION FEE AND LICENSE

FEE.

MAY CAUSE THE FANTASY CONTEST LICENSE ISSUED UNDER THIS CHAPTER

TO BE REVOKED OR SUSPENDED BY THE BOARD UNLESS THE PURCHASE OF

THE ASSETS OR THE CHANGE IN CONTROL THAT MEETS THE CRITERIA OF

THIS SECTION HAS BEEN INDEPENDENTLY QUALIFIED IN ADVANCE BY THE

BOARD AND ANY REQUIRED APPLICATION OR LICENSE FEE HAS BEEN PAID.

(D) DEFINITIONS.--AS USED IN THIS SECTION, THE FOLLOWING

WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS

SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"CHANGE IN CONTROL OF A LICENSED OPERATOR." THE ACQUISITION

BY A PERSON OR GROUP OF PERSONS ACTING IN CONCERT OF MORE THAN

20% OF A LICENSED OPERATOR'S SECURITIES OR OTHER OWNERSHIP

INTERESTS, WITH THE EXCEPTION OF ANY OWNERSHIP 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

20170HB0271PN1942 - 243 -

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.

§ 328. PENALTIES.

(A) SUSPENSION OR REVOCATION OF LICENSE.--

(1) AFTER A PUBLIC HEARING WITH AT LEAST 15 DAYS'

NOTICE, THE BOARD MAY SUSPEND OR REVOKE A LICENSED OPERATOR'S

FANTASY CONTEST LICENSE IN ANY CASE WHERE A VIOLATION OF THIS

CHAPTER HAS BEEN SHOWN BY A PREPONDERANCE OF THE EVIDENCE.

(2) THE BOARD MAY REVOKE A FANTASY CONTEST LICENSE IF

THE BOARD FINDS THAT FACTS NOT KNOWN BY THE BOARD AT THE TIME

THE BOARD CONSIDERED THE APPLICATION INDICATE THAT SUCH

LICENSE SHOULD NOT HAVE BEEN ISSUED.

(B) ADMINISTRATIVE PENALTIES.--

(1) IN ADDITION TO SUSPENSION OR REVOCATION OF A FANTASY

CONTEST LICENSE, THE BOARD MAY IMPOSE ADMINISTRATIVE

PENALTIES ON A LICENSED OPERATOR FOR VIOLATIONS OF THIS

CHAPTER.

(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.

(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.

20170HB0271PN1942 - 244 -

(1) IN ADDITION TO THE PROVISIONS OF THIS SECTION, A

PERSON WHO KNOWINGLY VIOLATES A PROVISION OF THIS CHAPTER

SHALL BE LIABLE FOR A CIVIL PENALTY OF NOT MORE THAN $1,000

FOR EACH SUCH VIOLATION.

(2) THE CIVIL PENALTY SHALL BE RECOVERED IN A CIVIL

ACTION BROUGHT BY THE BOARD AND SHALL BE PAID INTO THE

GENERAL FUND.

SUBCHAPTER D

FISCAL PROVISIONS

SEC.

331. FANTASY CONTEST TAX.

332. LICENSED OPERATOR DEPOSITS.

333. RESPONSIBILITY AND AUTHORITY OF DEPARTMENT.

§ 331. FANTASY CONTEST TAX.

(A) IMPOSITION.--EACH LICENSED OPERATOR SHALL REPORT TO THE

DEPARTMENT AND PAY FROM ITS MONTHLY FANTASY CONTEST ADJUSTED

REVENUES, ON A FORM AND IN THE MANNER PRESCRIBED BY THE

DEPARTMENT, A TAX OF 19% OF ITS MONTHLY FANTASY CONTEST ADJUSTED

REVENUES.

(B) DEPOSITS AND DISTRIBUTIONS.--

(1) THE TAX IMPOSED UNDER SUBSECTION (A) SHALL BE

PAYABLE TO THE DEPARTMENT ON A MONTHLY BASIS AND SHALL BE

BASED UPON MONTHLY FANTASY CONTEST ADJUSTED REVENUE DERIVED

DURING THE PREVIOUS MONTH.

(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.

20170HB0271PN1942 - 245 -

(1) A LICENSED OPERATOR WHO FAILS TO TIMELY REMIT TO THE

DEPARTMENT AMOUNTS REQUIRED UNDER THIS SECTION SHALL BE

LIABLE, IN ADDITION TO ANY LIABILITY IMPOSED ELSEWHERE IN

THIS CHAPTER, TO A PENALTY OF 5% PER MONTH UP TO A MAXIMUM OF

25% OF THE AMOUNTS ULTIMATELY FOUND TO BE DUE, TO BE

RECOVERED BY THE DEPARTMENT.

(2) PENALTIES IMPOSED UNDER THIS SUBSECTION SHALL BE

DEPOSITED IN THE GENERAL FUND.

§ 332. LICENSED OPERATOR DEPOSITS.

(A) ACCOUNTS ESTABLISHED.--THE STATE TREASURER SHALL

ESTABLISH WITHIN THE STATE TREASURY AN ACCOUNT FOR EACH LICENSED

OPERATOR FOR THE DEPOSIT 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 ITS

POWERS AND DUTIES UNDER THIS CHAPTER.

(B) DEPOSITS.--

(1) THE DEPARTMENT SHALL DETERMINE THE APPROPRIATE

ASSESSMENT AMOUNT FOR EACH LICENSED OPERATOR, WHICH SHALL BE

A PERCENTAGE ASSESSED ON THE LICENSED OPERATOR'S FANTASY

CONTEST ADJUSTED REVENUES. EACH LICENSED OPERATOR SHALL

DEPOSIT FUNDS INTO ITS ACCOUNT ON A QUARTERLY BASIS.

(2) THE PERCENTAGE ASSESSED SHALL NOT EXCEED AN AMOUNT

NECESSARY TO:

(I) RECOVER COSTS OR EXPENSES INCURRED BY THE BOARD

AND THE DEPARTMENT IN CARRYING OUT THEIR POWERS AND

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DUTIES UNDER THIS CHAPTER BASED ON A BUDGET SUBMITTED BY

THE BOARD AND THE DEPARTMENT UNDER SUBSECTION (C); AND

(II) REPAY ANY LOANS MADE FROM THE GENERAL FUND TO

THE BOARD IN CONNECTION WITH CARRYING OUT ITS POWERS AND

DUTIES UNDER THIS CHAPTER.

(1) THE BOARD AND THE DEPARTMENT SHALL PREPARE AND

ANNUALLY SUBMIT TO THE CHAIRPERSON AND MINORITY CHAIRPERSON

OF THE APPROPRIATIONS COMMITTEE OF THE SENATE AND THE

CHAIRPERSON AND MINORITY CHAIRPERSON OF THE APPROPRIATIONS

COMMITTEE OF THE HOUSE OF REPRESENTATIVES AN ITEMIZED BUDGET

CONSISTING OF AMOUNTS TO BE APPROPRIATED OUT OF THE ACCOUNTS

ESTABLISHED UNDER THIS SECTION NECESSARY TO ADMINISTER THIS

CHAPTER.

(2) AS SOON AS PRACTICABLE AFTER SUBMITTING COPIES OF

THE ITEMIZED BUDGET, THE DEPARTMENT SHALL 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 ANALYSES OF AND RECOMMENDATIONS REGARDING THE

ITEMIZED BUDGET.

(3) THE ITEMIZED BUDGET REQUIRED UNDER PARAGRAPH (1)

SHALL BE SUBMITTED IN CONJUNCTION WITH THE BUDGET REQUIRED TO

BE SUBMITTED UNDER SECTION 1202(B)(28) (RELATING TO GENERAL

AND SPECIFIC POWERS).

(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

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DEPARTMENT AMOUNTS REQUIRED UNDER THIS SECTION SHALL BE

LIABLE, IN ADDITION TO ANY LIABILITY IMPOSED ELSEWHERE IN

THIS CHAPTER, TO A PENALTY OF 5% PER MONTH UP TO A MAXIMUM OF

25% OF THE AMOUNTS ULTIMATELY FOUND TO BE DUE, TO BE

RECOVERED BY THE DEPARTMENT.

(2) PENALTIES IMPOSED UNDER THIS SUBSECTION SHALL BE

DEPOSITED INTO THE GENERAL FUND.

§ 333. RESPONSIBILITY AND AUTHORITY OF DEPARTMENT.

(A) GENERAL RULE.--THE DEPARTMENT MAY ADMINISTER AND COLLECT

TAXES IMPOSED UNDER SECTION 331 (RELATING TO FANTASY CONTEST

TAX) AND INTEREST IMPOSED UNDER SECTION 806 OF THE ACT OF APRIL

9, 1929 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE, AND

PROMULGATE AND ENFORCE RULES AND REGULATIONS TO CARRY OUT ITS

PRESCRIBED DUTIES IN ACCORDANCE WITH SECTIONS 331 AND 332

(RELATING TO LICENSED OPERATOR DEPOSITS), INCLUDING THE

COLLECTION OF TAXES, PENALTIES, ASSESSMENTS AND INTEREST.

(B) PROCEDURE.--FOR PURPOSES OF IMPLEMENTING SECTIONS 331

AND 332, THE DEPARTMENT MAY PROMULGATE REGULATIONS IN THE SAME

MANNER IN WHICH THE BOARD IS AUTHORIZED AS PROVIDED IN SECTION

312 (RELATING TO TEMPORARY REGULATIONS).

SUBCHAPTER E

MISCELLANEOUS PROVISIONS

SEC.

341. APPLICABILITY OF OTHER STATUTES.

342. LICENSED GAMING ENTITIES.

§ 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

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PA.C.S. § 5514 (RELATING TO POOL SELLING AND BOOKMAKING) SHALL

NOT APPLY TO A FANTASY CONTEST CONDUCTED IN ACCORDANCE WITH THIS

CHAPTER.

(RELATING TO LOTTERIES, ETC.) SHALL NOT APPLY TO A FANTASY

CONTEST CONDUCTED IN ACCORDANCE WITH THIS CHAPTER.

(D) STATE LOTTERY LAW.--THIS CHAPTER SHALL NOT APPLY TO A

FANTASY CONTEST OR SIMILAR PRODUCT AUTHORIZED UNDER THE ACT OF

AUGUST 26, 1971 (P.L.351, NO.91), KNOWN AS THE STATE LOTTERY

LAW, AND AUTHORIZED SOLELY BY THE DEPARTMENT AND THE DIVISION OF

THE STATE LOTTERY.

§ 342. LICENSED GAMING ENTITIES.

(A) SCOPE.--THIS SECTION SHALL APPLY TO A LICENSED GAMING

ENTITY THAT HOLDS A FANTASY CONTEST LICENSE.

(B) APPLICABILITY.--NOTHING IN THIS CHAPTER SHALL BE

CONSTRUED TO LIMIT THE BOARD'S GENERAL AND SOLE REGULATORY

AUTHORITY OVER THE CONDUCT OF GAMING OR RELATED ACTIVITIES UNDER

PART II (RELATING TO GAMING), INCLUDING, BUT NOT LIMITED TO, THE

CERTIFICATION, REGISTRATION AND REGULATION OF GAMING SERVICE

PROVIDERS AND INDIVIDUALS AND ENTITIES ASSOCIATED WITH THEM.

FANTASY CONTESTS THAT ARE EXCLUSIVE TO PARTICIPANTS WHO ARE AT

LEAST 21 YEARS OF AGE.

(D) PROMOTIONAL PLAY.--FOR A RESTRICTED CONTEST UNDER

SUBSECTION (C), A LICENSED GAMING ENTITY MAY OFFER SLOT MACHINE

OR TABLE GAME PROMOTIONAL PLAY TO A PARTICIPANT WHO IS AT LEAST

21 YEARS OF AGE AS A PRIZE OR AWARD OR FOR PARTICIPATING IN A

FANTASY CONTEST CONDUCTED BY THE LICENSED GAMING ENTITY.

(E) GAMING SERVICE PROVIDERS.--A LICENSED OPERATOR WHO IS

NOT A LICENSED GAMING ENTITY MAY, AT THE DISCRETION OF THE

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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 SUBSECTIONS (C) AND (F) ON BEHALF OF A LICENSED

GAMING ENTITY.

(F) FANTASY CONTEST TERMINALS.--

(1) A LICENSED GAMING ENTITY MAY PETITION THE BOARD, ON

A FORM AND IN A MANNER AS REQUIRED BY THE BOARD, TO PLACE AND

OPERATE FANTASY CONTEST TERMINALS WITHIN THE LICENSED GAMING

ENTITY'S LICENSED FACILITY.

(2) THE BOARD MAY, ACCORDING TO REGULATIONS ADOPTED BY

THE BOARD, APPROVE THE PLACEMENT AND OPERATION OF FANTASY

CONTEST TERMINALS AT ONE OR MORE LOCATIONS WITHIN A LICENSED

FACILITY, PROVIDED THAT FANTASY CONTEST TERMINALS MAY NOT BE

PLACED ON THE GAMING FLOOR.

(3) THE BOARD MAY NOT REQUIRE A PARTICIPANT TO ESTABLISH

A FANTASY CONTEST ACCOUNT PRIOR TO ENTERING A FANTASY CONTEST

THROUGH A FANTASY CONTEST TERMINAL.

CHAPTER 5

LOTTERY

SEC.

501. DEFINITIONS.

502. SALES AGENT COMPENSATION.

503. LOTTERY SALES ADVISORY COUNCIL.

§ 501. 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:

"CASH BONUS." COMPENSATION PAID TO A LICENSED LOTTERY SALES

AGENT FOR ISSUING PRIZES TO PLAYERS FOR WINNING LOTTERY TICKETS

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OR SHARES, THE AMOUNT OF WHICH COMPENSATION IS A PERCENTAGE

AMOUNT OF THE PRIZE AWARDED BY THE LICENSED LOTTERY SALES AGENT

TO A PLAYER FOR A WINNING TICKET OR SHARE.

"COMMISSION." COMPENSATION PAID TO A LICENSED LOTTERY SALES

AGENT FOR THE SALE OF LOTTERY TICKETS OR SHARES TO THE PUBLIC,

THE AMOUNT OF WHICH COMPENSATION IS A PERCENTAGE AMOUNT OF THE

RETAIL PRICE OF A TICKET OR SHARE SOLD BY A LICENSED LOTTERY

SALES AGENT.

"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.

"SECRETARY." THE SECRETARY OF REVENUE OF THE COMMONWEALTH.

§ 502. SALES AGENT COMPENSATION.

(A) COMMISSION REQUIRED.--

(1) NOTWITHSTANDING SECTION 303 OF THE ACT OF AUGUST 26,

1971 (P.L.351, NO.91), KNOWN AS THE STATE LOTTERY LAW, AND

SUBJECT TO PARAGRAPH (2), THE SECRETARY SHALL PROVIDE A

COMMISSION TO LICENSED LOTTERY SALES AGENTS THAT SHALL BE NO

LESS THAN 5.5%.

(2) BEGINNING ONE YEAR AFTER THE EFFECTIVE DATE OF THIS

SECTION, THE SECRETARY SHALL PROVIDE A COMMISSION TO LICENSED

LOTTERY SALES AGENTS IN AN AMOUNT THAT SHALL BE NO LESS THAN

6%.

(B) CASH BONUS REQUIRED.--

(1) NOTWITHSTANDING SECTION 303 OF THE STATE LOTTERY

LAW, THE SECRETARY SHALL PROVIDE A CASH BONUS TO LICENSED

LOTTERY SALES AGENTS IN AN AMOUNT THAT SHALL BE NO LESS THAN

1%.

(2) THE SECRETARY SHALL PERMIT A LICENSED LOTTERY SALES

AGENT TO REDEEM A WINNING TICKET OR SHARE FOR A PRIZE AMOUNT

OF $2,500 OR LESS.

§ 503. LOTTERY SALES ADVISORY COUNCIL.

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(A) ESTABLISHMENT.--

(1) THE DEPARTMENT SHALL ESTABLISH A LOTTERY SALES

ADVISORY COUNCIL WHICH SHALL BE COMPRISED OF THE SECRETARY,

THE DIRECTOR OF THE DIVISION OF THE STATE LOTTERY, A

REPRESENTATIVE FROM THE DEPARTMENT OF AGING OR A SUCCESSOR

AGENCY, REPRESENTATIVES FROM A STATEWIDE FOOD MERCHANTS

ASSOCIATION, LICENSED LOTTERY SALES AGENTS AND ANY OTHER

INDIVIDUAL, AT THE DISCRETION OF THE DEPARTMENT.

(2) THE LOTTERY SALES ADVISORY COUNCIL SHALL MEET AT

TIMES AND IN A MANNER AT THE DEPARTMENT'S DISCRETION FOR THE

PURPOSES OF INCREASING THE PARTNERSHIP BETWEEN THE STATE

LOTTERY AND LICENSED LOTTERY SALES AGENTS AND DEVELOPING

POLICY RECOMMENDATIONS FOR INCREASED LOTTERY SALES.

(3) THE LOTTERY SALES ADVISORY COUNCIL SHALL OPERATE IN

AN ADVISORY, NONBINDING CAPACITY.

(B) COMPENSATION.--NO MEMBER OF THE LOTTERY SALES ADVISORY

COUNCIL SHALL BE ENTITLED TO ANY FORM OF COMPENSATION FROM THE

COMMONWEALTH FOR THE PERFORMANCE OF ANY DUTY THAT MAY BE

REQUIRED BY THE LOTTERY SALES ADVISORY COUNCIL.

CHAPTER 7

ILOTTERY

SEC.

701. SCOPE OF CHAPTER.

702. DEFINITIONS.

703. ILOTTERY AUTHORIZATION.

§ 701. SCOPE OF CHAPTER.

THIS CHAPTER RELATES TO ILOTTERY.

§ 702. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

20170HB0271PN1942 - 252 -

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 ALLOWS 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 INCLUDES INSTANT TICKETS,

TERMINAL-BASED TICKETS, RAFFLE GAMES, INTERNET INSTANT TICKETS,

ILOTTERY GAMES, PLAY-FOR-FUN GAMES, LOTTERY VOUCHERS,

SUBSCRIPTION SERVICES AND GIFT CARDS.

"SECRETARY." THE SECRETARY OF REVENUE OF THE COMMONWEALTH.

"SUBSCRIPTION SERVICES." A PAYMENT, ADVANCE PAYMENT OR

PROMISE OF PAYMENT FOR MULTIPLE LOTTERY PRODUCTS OVER A

SPECIFIED PERIOD OF TIME, INCLUDING PAYMENT THROUGH ILOTTERY.

§ 703. ILOTTERY AUTHORIZATION.

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(A) AUTHORITY.--NOTWITHSTANDING ANY PROVISION OF LAW TO THE

CONTRARY, THE DEPARTMENT MAY OPERATE ILOTTERY AND INTERNET

INSTANT GAMES.

(B) TEMPORARY REGULATORY AUTHORITY.--

(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 REGULATIONS. 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) 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.

(2) REGULATIONS ADOPTED AFTER THE TWO-YEAR TIME PERIOD

SHALL BE PROMULGATED AS PROVIDED BY LAW.

PROVISION OF LAW TO THE CONTRARY AND IN ORDER TO FACILITATE THE

PROMPT IMPLEMENTATION OF ILOTTERY IN THIS COMMONWEALTH, INITIAL

CONTRACTS ENTERED INTO BY THE DEPARTMENT FOR ILOTTERY AND

RELATED GAMING SYSTEMS, INCLUDING ANY NECESSARY HARDWARE,

SOFTWARE, LICENSES OR RELATED SERVICES, SHALL NOT BE SUBJECT TO

THE PROVISIONS OF 62 PA.C.S. (RELATING TO PROCUREMENT).

CONTRACTS ENTERED INTO UNDER THIS SUBSECTION MAY NOT EXCEED FIVE

YEARS.

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(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 LAWS OR REGULATIONS

RELATED TO THE PAYMENT OF LOTTERY PRIZES, PERSONALLY IDENTIFYING

INFORMATION OBTAINED BY THE DEPARTMENT AS A RESULT OF A PLAYER'S

PURCHASE OF LOTTERY PRODUCTS OR THE CLAIM OF A LOTTERY PRIZE,

SUCH AS NAME, ADDRESS, TELEPHONE NUMBER OR PLAYER FINANCIAL

INFORMATION, SHALL BE CONSIDERED CONFIDENTIAL AND OTHERWISE

EXEMPT FROM DISCLOSURE WHETHER RETAINED BY THE DEPARTMENT, AN

AGENT OF THE DEPARTMENT OR A LOTTERY RETAILER.

(E) LOTTERY PROPRIETARY INFORMATION.--

(1) 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, AN AGENT OF THE LOTTERY OR A LOTTERY RETAILER.

(2) PROPRIETARY INFORMATION SHALL INCLUDE ANY RESEARCH

OR STUDY CONDUCTED BY THE LOTTERY OR A LOTTERY VENDOR THAT

UTILIZES PROPRIETARY INFORMATION OBTAINED UNDER THIS SECTION.

(F) REVENUES.--

(1) NOTWITHSTANDING ANY PROVISION OF LAW TO THE

CONTRARY, 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.

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(2) FOR FISCAL YEARS BEGINNING AFTER JUNE 30, 2017,

REVENUES RAISED UNDER THIS CHAPTER SHALL NOT BE SUBJECT TO

THE PROFIT MARGIN LIMITATIONS SPECIFIED IN SECTION 303(A)(11)

(IV) OF THE STATE LOTTERY LAW.

(G) PREPAID CARDS.--

(1) THE DEPARTMENT SHALL PROVIDE LICENSED LOTTERY SALES

AGENTS PREPAID CARDS OR OTHER MECHANISMS FOR SALE TO THE

PUBLIC THAT ALLOW A PLAYER TO PREPURCHASE LOTTERY PRODUCTS

OFFERED THROUGH ILOTTERY.

(2) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO

REQUIRE A PLAYER TO PURCHASE PREPAID CARDS OR OTHER

MECHANISMS FROM A LICENSED LOTTERY SALES AGENT IN ORDER TO

ENGAGE IN ILOTTERY.

(H) SALES AGENT COMPENSATION.--A LICENSED LOTTERY SALES

AGENT SHALL BE ENTITLED TO NO LESS THAN 6% OF THE RETAIL AMOUNT

OF A PREPAID CARD OR OTHER MECHANISM AUTHORIZED UNDER SUBSECTION

(G) THAT IS SOLD BY THE LICENSED LOTTERY SALES AGENT.

SECTION 2. SECTION 1102 OF TITLE 4 IS AMENDED 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:

(1) THE PRIMARY OBJECTIVE OF THIS PART TO WHICH ALL

OTHER OBJECTIVES AND PURPOSES 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) THE AUTHORIZATION OF LIMITED GAMING BY THE

INSTALLATION AND OPERATION OF SLOT MACHINES AS AUTHORIZED IN

THIS PART IS INTENDED TO ENHANCE LIVE HORSE RACING, BREEDING

PROGRAMS, ENTERTAINMENT AND EMPLOYMENT IN THIS COMMONWEALTH.

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(2.1) THE AUTHORIZATION OF TABLE GAMES AND INTERACTIVE

GAMING IN THIS PART IS INTENDED TO SUPPLEMENT SLOT MACHINE

GAMING BY INCREASING REVENUES TO THE COMMONWEALTH AND

PROVIDING NEW EMPLOYMENT OPPORTUNITIES BY CREATING SKILLED

JOBS FOR INDIVIDUALS RELATED TO THE CONDUCT OF TABLE GAMES AT

LICENSED FACILITIES IN THIS COMMONWEALTH AND RELATED TO THE

CONDUCT OF INTERACTIVE GAMING.

(3) THE AUTHORIZATION OF LIMITED GAMING IS INTENDED TO

PROVIDE A SIGNIFICANT SOURCE OF NEW REVENUE TO THE

COMMONWEALTH TO SUPPORT PROPERTY TAX RELIEF, WAGE TAX

REDUCTION, ECONOMIC DEVELOPMENT OPPORTUNITIES AND OTHER

SIMILAR INITIATIVES.

(4) THE AUTHORIZATION OF LIMITED GAMING IS INTENDED TO

POSITIVELY ASSIST THE COMMONWEALTH'S HORSE RACING INDUSTRY,

SUPPORT PROGRAMS INTENDED TO FOSTER AND PROMOTE HORSE

BREEDING AND IMPROVE THE LIVING AND WORKING CONDITIONS OF

PERSONNEL WHO WORK AND RESIDE IN AND AROUND THE STABLE AND

BACKSIDE AREAS OF RACETRACKS.

(5) THE AUTHORIZATION OF LIMITED GAMING IS INTENDED TO

PROVIDE BROAD ECONOMIC OPPORTUNITIES TO THE CITIZENS OF THIS

COMMONWEALTH AND SHALL BE IMPLEMENTED IN SUCH A MANNER AS TO

PREVENT POSSIBLE MONOPOLIZATION BY ESTABLISHING REASONABLE

RESTRICTIONS ON THE CONTROL OF MULTIPLE LICENSED GAMING

FACILITIES IN THIS COMMONWEALTH.

(6) THE AUTHORIZATION OF LIMITED GAMING IS INTENDED TO

ENHANCE THE FURTHER DEVELOPMENT OF THE TOURISM MARKET

THROUGHOUT THIS COMMONWEALTH, INCLUDING, BUT NOT LIMITED TO,

YEAR-ROUND RECREATIONAL AND TOURISM LOCATIONS IN THIS

COMMONWEALTH.

(7) PARTICIPATION IN LIMITED GAMING AUTHORIZED UNDER

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THIS PART BY ANY LICENSEE [OR], PERMITTEE, REGISTRANT OR

CERTIFICATE HOLDER SHALL BE DEEMED A PRIVILEGE, CONDITIONED

UPON THE PROPER AND CONTINUED QUALIFICATION OF THE LICENSEE

[OR], PERMITTEE, REGISTRANT OR CERTIFICATE HOLDER AND UPON

THE DISCHARGE OF THE AFFIRMATIVE RESPONSIBILITY OF EACH

LICENSEE, PERMITTEE, REGISTRANT AND CERTIFICATE HOLDER TO

PROVIDE THE REGULATORY AND INVESTIGATORY AUTHORITIES OF THE

COMMONWEALTH WITH ASSISTANCE AND INFORMATION NECESSARY TO

ASSURE THAT THE POLICIES DECLARED BY THIS PART ARE ACHIEVED.

(8) STRICTLY MONITORED AND ENFORCED CONTROL OVER ALL

LIMITED GAMING AUTHORIZED BY THIS PART SHALL BE PROVIDED

THROUGH REGULATION, LICENSING AND APPROPRIATE ENFORCEMENT

ACTIONS OF SPECIFIED LOCATIONS, PERSONS, ASSOCIATIONS,

PRACTICES, ACTIVITIES, LICENSEES [AND], PERMITTEES,

REGISTRANTS AND CERTIFICATE HOLDERS.

(9) STRICT FINANCIAL MONITORING AND CONTROLS SHALL BE

ESTABLISHED AND ENFORCED BY ALL LICENSEES [OR], PERMITTEES,

REGISTRANTS AND CERTIFICATE HOLDERS.

(10) THE PUBLIC INTEREST OF THE CITIZENS OF THIS

COMMONWEALTH AND THE SOCIAL EFFECT OF GAMING SHALL BE TAKEN

INTO CONSIDERATION IN ANY DECISION OR ORDER MADE PURSUANT TO

THIS PART.

(10.1) THE GENERAL ASSEMBLY HAS A COMPELLING INTEREST IN

PROTECTING THE INTEGRITY OF BOTH THE ELECTORAL PROCESS AND

THE LEGISLATIVE PROCESS BY PREVENTING CORRUPTION AND THE

APPEARANCE OF CORRUPTION WHICH MAY ARISE THROUGH PERMITTING

ANY TYPE OF POLITICAL CAMPAIGN CONTRIBUTIONS BY CERTAIN

PERSONS INVOLVED IN THE GAMING INDUSTRY AND REGULATED UNDER

THIS PART.

(10.2) BANNING ALL TYPES OF POLITICAL CAMPAIGN

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CONTRIBUTIONS BY CERTAIN PERSONS SUBJECT TO THIS PART IS

NECESSARY TO PREVENT CORRUPTION AND THE APPEARANCE OF

CORRUPTION THAT MAY ARISE WHEN POLITICAL CAMPAIGN

CONTRIBUTIONS AND GAMING REGULATED UNDER THIS PART ARE

INTERMINGLED.

(11) IT IS NECESSARY TO MAINTAIN THE INTEGRITY OF THE

REGULATORY CONTROL AND LEGISLATIVE OVERSIGHT OVER THE

OPERATION AND PLAY OF SLOT MACHINES [AND], TABLE GAMES AND

INTERACTIVE GAMING IN THIS COMMONWEALTH; TO ENSURE THE

BIPARTISAN ADMINISTRATION OF THIS PART; AND AVOID ACTIONS

THAT MAY ERODE PUBLIC CONFIDENCE IN THE SYSTEM OF

REPRESENTATIVE GOVERNMENT.

(12) IT IS THE INTENT OF THE GENERAL ASSEMBLY TO

AUTHORIZE THE OPERATION AND PLAY OF SLOT MACHINES [AND],

TABLE GAMES AND INTERACTIVE GAMING UNDER A SINGLE SLOT

MACHINE LICENSE ISSUED TO A SLOT MACHINE LICENSEE WHEN A SLOT

MACHINE LICENSEE HAS BEEN ISSUED A TABLE GAME OPERATION

CERTIFICATE AND AN INTERACTIVE GAMING CERTIFICATE UNDER 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, THE OPERATION OF MULTISTATE

WIDE-AREA PROGRESSIVE SLOT MACHINES, SKILL AND HYBRID SLOT

MACHINES.

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(12.3) IT IS ALSO THE INTENT OF THE GENERAL ASSEMBLY TO

AUTHORIZE THE OPERATION AND PLAY OF INTERACTIVE GAMING IN

CONFORMANCE WITH FEDERAL LAW, INCLUDING THE UNLAWFUL INTERNET

GAMBLING ENFORCEMENT ACT OF 2006 (TITLE VIII OF PUBLIC LAW

109-347, 31 U.S.C. §§ 5361-5367).

(13) THE AUTHORIZATION OF LIMITED GAMING IN THIS

COMMONWEALTH REQUIRES THE COMMONWEALTH TO TAKE STEPS TO

INCREASE AWARENESS OF COMPULSIVE AND PROBLEM GAMBLING AND TO

DEVELOP AND IMPLEMENT EFFECTIVE STRATEGIES FOR PREVENTION,

ASSESSMENT AND TREATMENT OF THIS BEHAVIORAL DISORDER.

(14) RESEARCH INDICATES THAT [FOR SOME INDIVIDUALS]

COMPULSIVE AND PROBLEM GAMBLING AND DRUG AND ALCOHOL

ADDICTION ARE RELATED. THEREFORE, THE GENERAL ASSEMBLY

INTENDS TO ESTABLISH AN APPROACH TO COMPULSIVE AND PROBLEM

GAMBLING PREVENTION, ASSESSMENT AND TREATMENT THAT WILL

ENSURE THE PROVISION OF ADEQUATE RESOURCES TO IDENTIFY,

ASSESS AND TREAT BOTH COMPULSIVE AND PROBLEM GAMBLING AND

DRUG AND ALCOHOL ADDICTION.

SECTION 3. THE DEFINITIONS OF "ASSOCIATED EQUIPMENT," "CASH

EQUIVALENT," "CHEAT," "CHEATING OR THIEVING DEVICE,"

"COMMISSION" OR "COMMISSIONS," "CONDUCT OF GAMING," "CONTEST,"

"COUNTERFEIT CHIP," "FULLY AUTOMATED ELECTRONIC GAMING TABLE,"

"GAMING EMPLOYEE," "GAMING SCHOOL," "GAMING SERVICE PROVIDER,"

"KEY EMPLOYEE," "LICENSED FACILITY," "LICENSED RACING ENTITY,"

"MANUFACTURER," "MANUFACTURER LICENSE," "PLAYER," "PROGRESSIVE

PAYOUT," "PROGRESSIVE SYSTEM," "RACE HORSE INDUSTRY REFORM ACT,"

"SLOT MACHINE," "SUPPLIER," "SUPPLIER LICENSE," "TABLE GAME" AND

"TABLE GAME DEVICE" IN SECTION 1103 OF TITLE 4 ARE AMENDED AND

THE SECTION IS AMENDED BY ADDING DEFINITIONS TO READ:

§ 1103. DEFINITIONS.

20170HB0271PN1942 - 260 -

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 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 BY THE AIRPORT AUTHORITY AND THE

PENNSYLVANIA GAMING CONTROL BOARD FOR THE CONDUCT OF INTERACTIVE

GAMING THROUGH THE USE OF MULTI-USE COMPUTING DEVICES BY

ELIGIBLE PASSENGERS.

* * *

"ASSOCIATED EQUIPMENT." ANY EQUIPMENT OR MECHANICAL,

ELECTROMECHANICAL OR ELECTRONIC CONTRIVANCE, COMPONENT OR

MACHINE USED IN CONNECTION WITH SLOT MACHINES OR TABLE GAMES,

INCLUDING LINKING DEVICES WHICH CONNECT TO PROGRESSIVE SLOT

MACHINES AND MULTISTATE WIDE-AREA PROGRESSIVE SLOT MACHINES OR

SLOT [MACHINES, REPLACEMENT] MACHINE REPLACEMENT PARTS,

EQUIPMENT WHICH AFFECTS THE PROPER REPORTING AND COUNTING OF

GROSS TERMINAL REVENUE [AND], GROSS TABLE GAME REVENUE AND GROSS

INTERACTIVE GAMING REVENUE, COMPUTERIZED SYSTEMS FOR CONTROLLING

AND MONITORING SLOT MACHINES [OR], TABLE GAMES OR INTERACTIVE

GAMES, INCLUDING, BUT NOT LIMITED TO, THE CENTRAL CONTROL

20170HB0271PN1942 - 261 -

COMPUTER TO WHICH ALL SLOT MACHINES COMMUNICATE [AND], DEVICES

FOR WEIGHING OR COUNTING MONEY[.] AND INTERACTIVE GAMING DEVICES

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 AN INTERACTIVE GAMING OPERATOR ON BEHALF

OF AN INTERACTIVE GAMING CERTIFICATE HOLDER IN ACCORDANCE WITH

CHAPTER 13B (RELATING TO INTERACTIVE GAMING). THE TERM SHALL

INCLUDE ANY INTERACTIVE GAME APPROVED BY REGULATION OF THE

PENNSYLVANIA CONTROL BOARD TO BE SUITABLE FOR INTERACTIVE GAMING

THROUGH THE USE OF A MULTI-USE COMPUTING DEVICE.

* * *

"CASH EQUIVALENT." AN ASSET THAT IS READILY CONVERTIBLE TO

CASH, INCLUDING, BUT NOT LIMITED TO, ANY OF THE FOLLOWING:

(1) CHIPS OR TOKENS.

(2) TRAVELERS CHECKS.

(3) FOREIGN CURRENCY AND COIN.

(4) CERTIFIED CHECKS, CASHIER'S CHECKS AND MONEY ORDERS.

(5) PERSONAL CHECKS OR DRAFTS.

(6) A NEGOTIABLE INSTRUMENT APPLIED AGAINST CREDIT

EXTENDED BY A CERTIFICATE HOLDER, AN INTERACTIVE GAMING

CERTIFICATE HOLDER, AN INTERACTIVE GAMING OPERATOR OR A

FINANCIAL INSTITUTION.

(6.1) A PREPAID ACCESS INSTRUMENT.

(7) ANY OTHER INSTRUMENT OR REPRESENTATION OF VALUE THAT

THE PENNSYLVANIA GAMING CONTROL BOARD DEEMS A CASH

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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 OR INTERACTIVE GAMING DEVICE OR

ASSOCIATED EQUIPMENT FOR MAINTENANCE OR REPAIR WITH THE APPROVAL

OF A SLOT MACHINE LICENSEE.

"CHEATING OR THIEVING DEVICE." A DEVICE, SOFTWARE OR

HARDWARE USED OR POSSESSED WITH THE INTENT TO BE USED TO CHEAT

DURING THE OPERATION OR PLAY OF ANY SLOT MACHINE [OR], TABLE

GAME OR AUTHORIZED INTERACTIVE GAME. THE TERM SHALL ALSO INCLUDE

ANY DEVICE USED TO ALTER A SLOT MACHINE [OR], A TABLE GAME

DEVICE OR ASSOCIATED EQUIPMENT, AN AUTHORIZED INTERACTIVE GAME

OR INTERACTIVE GAMING DEVICE OR ASSOCIATED EQUIPMENT WITHOUT THE

SLOT MACHINE LICENSEE'S APPROVAL.

* * *

["COMMISSION" OR "COMMISSIONS."] "COMMISSION." THE STATE

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HORSE RACING COMMISSION [OR THE STATE HARNESS RACING COMMISSION,

OR BOTH AS THE CONTEXT MAY REQUIRE.] AS DEFINED IN 3 PA.C.S. §

9301 (RELATING TO DEFINITIONS) .

"COMMUNICATIONS TECHNOLOGY." ANY METHOD USED AND THE

COMPONENTS EMPLOYED TO FACILITATE THE TRANSMISSION AND RECEIPT

OF INFORMATION, INCLUDING TRANSMISSION AND RECEPTION BY SYSTEMS

USING WIRE, WIRELESS, CABLE, RADIO, MICROWAVE, LIGHT, FIBER

OPTICS, SATELLITE OR COMPUTER DATA NETWORKS, INCLUDING THE

INTERNET AND INTRANETS.

* * *

"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.

"CONDUCT OF GAMING." THE LICENSED PLACEMENT, OPERATION AND

PLAY OF SLOT MACHINES [AND], TABLE GAMES AND INTERACTIVE GAMES

AND CASINO SIMULCASTING 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 UNDER SUBCHAPTER B.1 OF

CHAPTER 13B (RELATING TO MULTI-USE COMPUTING DEVICES).

"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:

20170HB0271PN1942 - 264 -

(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 INTERACTIVE

GAMING OPERATOR.

* * *

"ELIGIBLE PASSENGER." AN INDIVIDUAL 21 YEARS OF AGE OR OLDER

WHO HAS CLEARED SECURITY CHECK POINTS WITH A VALID AIRLINE

BOARDING PASS FOR TRAVEL FROM ONE DESTINATION TO 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.

20170HB0271PN1942 - 265 -

(2) CHANGE PERSONNEL.

(3) COUNT ROOM PERSONNEL.

(4) SLOT ATTENDANTS.

(5) HOSTS OR OTHER INDIVIDUALS AUTHORIZED TO EXTEND

COMPLIMENTARY SERVICES, INCLUDING EMPLOYEES PERFORMING

FUNCTIONS SIMILAR TO THOSE PERFORMED BY A GAMING JUNKET

REPRESENTATIVE.

(6) MACHINE MECHANICS, COMPUTER MACHINE TECHNICIANS OR

TABLE GAME DEVICE TECHNICIANS.

(7) SECURITY PERSONNEL.

(8) SURVEILLANCE PERSONNEL.

(9) PROMOTIONAL PLAY SUPERVISORS, CREDIT SUPERVISORS,

PIT SUPERVISORS, CASHIER SUPERVISORS, SHIFT SUPERVISORS,

TABLE GAME MANAGERS AND ASSISTANT MANAGERS AND OTHER

SUPERVISORS AND MANAGERS, EXCEPT FOR THOSE SPECIFICALLY

IDENTIFIED IN THIS PART AS KEY EMPLOYEES.

(10) BOXMEN.

(11) DEALERS OR CROUPIERS.

(12) FLOORMEN.

(13) PERSONNEL AUTHORIZED TO ISSUE PROMOTIONAL PLAY.

(14) PERSONNEL AUTHORIZED TO ISSUE CREDIT.

THE TERM SHALL INCLUDE EMPLOYEES OF A PERSON HOLDING A

SUPPLIER'S LICENSE WHOSE DUTIES ARE DIRECTLY INVOLVED WITH THE

REPAIR OR DISTRIBUTION OF SLOT MACHINES, TABLE GAME DEVICES OR

ASSOCIATED EQUIPMENT OR 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

20170HB0271PN1942 - 266 -

SUBCONTRACTOR THAT SUPPLIES INTERACTIVE GAMING DEVICES,

INCLUDING MULTI-USE COMPUTING DEVICES, OR ASSOCIATED EQUIPMENT

TO AN INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE

GAMING OPERATOR WHO ARE DIRECTLY INVOLVED IN THE OPERATIONS OF

INTERACTIVE GAMING. THE TERM DOES NOT INCLUDE BARTENDERS,

COCKTAIL SERVERS OR OTHER PERSONS ENGAGED SOLELY IN PREPARING OR

SERVING FOOD OR BEVERAGES, CLERICAL OR SECRETARIAL PERSONNEL,

PARKING ATTENDANTS, JANITORIAL, STAGE, SOUND AND LIGHT

TECHNICIANS AND OTHER NONGAMING PERSONNEL AS DETERMINED BY THE

BOARD.

"GAMING FLOOR." ANY PORTION OF A LICENSED FACILITY WHERE

SLOT MACHINES OR TABLE GAMES HAVE BEEN INSTALLED FOR USE OR

PLAY.

* * *

"GAMING-RELATED RESTRICTED AREA." ANY ROOM OR AREA OF A

LICENSED FACILITY WHICH IS SPECIFICALLY DESIGNATED BY THE

PENNSYLVANIA GAMING CONTROL BOARD AS RESTRICTED OR BY THE SLOT

MACHINE LICENSEE AS RESTRICTED IN ITS BOARD-APPROVED INTERNAL

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.

20170HB0271PN1942 - 267 -

"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

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] TO A SLOT MACHINE

LICENSEE OR AN APPLICANT FOR A SLOT MACHINE LICENSE THAT

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." AS FOLLOWS:

(1) THE TOTAL OF ALL CASH OR CASH EQUIVALENT WAGERS PAID

BY REGISTERED PLAYERS OR ELIGIBLE PASSENGERS TO AN

INTERACTIVE GAMING CERTIFICATE HOLDER IN CONSIDERATION FOR

THE PLAY OF AUTHORIZED INTERACTIVE GAMES, MINUS:

(I) THE TOTAL OF CASH OR CASH EQUIVALENTS PAID OUT

TO REGISTERED PLAYERS AS WINNINGS.

(II) 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.

(III) ANY ADMINISTRATIVE FEE, OPERATIONS FEE OR TAX

PAID TO ANOTHER STATE OR JURISDICTION PURSUANT TO AN

INTERACTIVE GAMING RECIPROCAL AGREEMENT.

(2) AMOUNTS DEPOSITED WITH AN INTERACTIVE GAMING

CERTIFICATE HOLDER FOR PURPOSES OF INTERACTIVE GAMING AND

20170HB0271PN1942 - 268 -

AMOUNTS TAKEN IN FRAUDULENT ACTS PERPETRATED AGAINST AN

INTERACTIVE GAMING CERTIFICATE HOLDER FOR WHICH THE

INTERACTIVE GAMING CERTIFICATE HOLDER IS NOT REIMBURSED SHALL

NOT BE CONSIDERED TO HAVE BEEN PAID TO THE INTERACTIVE GAMING

CERTIFICATE HOLDER FOR PURPOSES OF CALCULATING GROSS

INTERACTIVE GAMING REVENUE. FOR PURPOSES OF CALCULATING THE

TAX IMPOSED UNDER SECTION 13B52 (RELATING TO INTERACTIVE

GAMING TAX) AND THE LOCAL SHARE ASSESSMENT IMPOSED UNDER

SECTION 13B53 (RELATING TO LOCAL SHARE ASSESSMENT), THE TERM

SHALL NOT INCLUDE GROSS REVENUE GENERATED FROM THE CONDUCT OF

INTERACTIVE GAMING THROUGH MULTI-USE COMPUTING DEVICES AT A

QUALIFIED AIRPORT.

* * *

"HYBRID SLOT MACHINE." A SLOT MACHINE IN WHICH A COMBINATION

OF THE SKILL OF THE PLAYER AND ELEMENTS OF CHANCE AFFECTS THE

OUTCOME OF THE GAME.

* * *

"INTERACTIVE GAME." ANY GAMBLING GAME OFFERED THROUGH THE

USE OF COMMUNICATIONS TECHNOLOGY THAT ALLOWS A PERSON, UTILIZING

MONEY, CHECKS, ELECTRONIC CHECKS, ELECTRONIC TRANSFERS OF MONEY,

CREDIT CARDS OR ANY OTHER INSTRUMENTALITY TO TRANSMIT ELECTRONIC

INFORMATION TO ASSIST IN THE PLACEMENT OF A BET OR WAGER AND

CORRESPONDING INFORMATION RELATED TO THE DISPLAY OF THE GAME,

GAME OUTCOMES OR OTHER SIMILAR INFORMATION. THE TERM SHALL NOT

INCLUDE:

(1) A LOTTERY GAME OR INTERNET INSTANT GAME AS DEFINED

IN THE ACT OF AUGUST 26, 1971 (P.L.351, NO.91), KNOWN AS THE

STATE LOTTERY LAW.

(2) ILOTTERY UNDER CHAPTER 7 (RELATING TO ILOTTERY).

(3) A NONGAMBLING GAME THAT DOES NOT OTHERWISE REQUIRE A

20170HB0271PN1942 - 269 -

LICENSE UNDER THE LAWS OF THIS COMMONWEALTH.

"INTERACTIVE GAMING." THE PLACING OF WAGERS WITH AN

INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE GAMING

OPERATOR 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 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 FINANCIAL ACTIVITY RELATED TO INTERACTIVE GAMING.

"INTERACTIVE GAMING ACCOUNT AGREEMENT." AN AGREEMENT ENTERED

INTO BETWEEN AN INTERACTIVE GAMING CERTIFICATE HOLDER AND A

REGISTERED PLAYER WHICH GOVERNS THE TERMS AND CONDITIONS OF THE

REGISTERED PLAYER'S INTERACTIVE GAMING ACCOUNT AND THE USE OF

THE INTERNET FOR PURPOSES OF PLACING WAGERS ON AUTHORIZED

INTERACTIVE GAMES OPERATED BY AN INTERACTIVE GAMING CERTIFICATE

HOLDER OR INTERACTIVE GAMING OPERATOR.

"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 BY THE

INTERACTIVE GAMING OPERATOR ON BEHALF OF THE INTERACTIVE GAMING

CERTIFICATE HOLDER. THE TERM SHALL INCLUDE AN INTERACTIVE GAMING

AGREEMENT ENTERED INTO 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 CHAPTER 13B

20170HB0271PN1942 - 270 -

(RELATING TO INTERACTIVE GAMING).

"INTERACTIVE GAMING CERTIFICATE." THE AUTHORIZATION ISSUED

TO A SLOT MACHINE LICENSEE BY THE PENNSYLVANIA GAMING CONTROL

BOARD AUTHORIZING THE OPERATION AND CONDUCT OF INTERACTIVE

GAMING BY A SLOT MACHINE LICENSEE IN ACCORDANCE WITH CHAPTER 13B

(RELATING TO INTERACTIVE GAMING).

"INTERACTIVE GAMING CERTIFICATE HOLDER." A SLOT MACHINE

LICENSEE THAT HAS BEEN GRANTED AUTHORIZATION BY THE PENNSYLVANIA

GAMING CONTROL BOARD TO OPERATE INTERACTIVE GAMING IN ACCORDANCE

WITH CHAPTER 13B (RELATING TO INTERACTIVE GAMING).

"INTERACTIVE GAMING DEVICE." ALL HARDWARE AND SOFTWARE AND

OTHER TECHNOLOGY, EQUIPMENT OR DEVICE OF ANY KIND AS DETERMINED

BY THE PENNSYLVANIA GAMING CONTROL BOARD TO BE NECESSARY FOR THE

CONDUCT OF AUTHORIZED INTERACTIVE GAMES.

"INTERACTIVE GAMING LICENSE." A LICENSE ISSUED TO AN

INTERACTIVE GAMING OPERATOR BY THE PENNSYLVANIA GAMING CONTROL

BOARD UNDER CHAPTER 13B (RELATING TO INTERACTIVE GAMING).

"INTERACTIVE GAMING OPERATOR." A PERSON LICENSED BY THE

PENNSYLVANIA GAMING CONTROL BOARD TO OPERATE INTERACTIVE GAMING

OR AN INTERACTIVE GAMING SYSTEM ON BEHALF OF AN INTERACTIVE

GAMING CERTIFICATE HOLDER. THE TERM SHALL INCLUDE A PERSON THAT

HAS RECEIVED CONDITIONAL AUTHORIZATION UNDER SECTION 13B14

(RELATING TO INTERACTIVE GAMING OPERATORS) FOR SO LONG AS SUCH

AUTHORIZATION IS EFFECTIVE.

"INTERACTIVE GAMING PLATFORM." THE COMBINATION OF HARDWARE

AND SOFTWARE OR OTHER TECHNOLOGY DESIGNED AND USED TO MANAGE,

CONDUCT AND RECORD INTERACTIVE GAMES AND THE 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

20170HB0271PN1942 - 271 -

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 REGULATORY AGENCY OF ONE OR MORE

STATES OR JURISDICTIONS WHERE INTERACTIVE GAMING IS LEGALLY

AUTHORIZED WHICH WILL PERMIT THE CONDUCT OF INTERACTIVE GAMING

BETWEEN INTERACTIVE GAMING CERTIFICATE HOLDERS IN THIS

COMMONWEALTH AND GAMING ENTITIES IN THE STATES OR JURISDICTIONS

THAT ARE PARTIES TO THE AGREEMENT.

"INTERACTIVE GAMING RESTRICTED AREA." ANY ROOM OR AREA, AS

APPROVED BY THE PENNSYLVANIA GAMING CONTROL BOARD, USED BY AN

INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE GAMING

OPERATOR 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 BY AN

INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE GAMING

OPERATOR TO REGISTERED PLAYERS IN THIS COMMONWEALTH OR

REGISTERED PLAYERS IN ANY OTHER STATE OR JURISDICTION WHICH HAS

ENTERED INTO AN INTERACTIVE GAMING RECIPROCAL AGREEMENT.

"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

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

20170HB0271PN1942 - 272 -

OR DEPARTMENT HEAD CAPACITY AND WHO IS EMPOWERED TO MAKE

DISCRETIONARY DECISIONS THAT REGULATE SLOT MACHINE [OR]

OPERATIONS, TABLE GAME OPERATIONS, INTERACTIVE GAMING OPERATIONS

OR CASINO SIMULCASTING, INCLUDING THE GENERAL MANAGER AND

ASSISTANT MANAGER OF THE LICENSED FACILITY, DIRECTOR OF SLOT

OPERATIONS, DIRECTOR OF TABLE GAME OPERATIONS, DIRECTOR OF

INTERACTIVE GAMING, DIRECTOR OF CAGE AND/OR CREDIT OPERATIONS,

DIRECTOR OF SURVEILLANCE, DIRECTOR OF MARKETING, DIRECTOR OF

MANAGEMENT INFORMATION SYSTEMS, DIRECTOR OF INTERACTIVE GAMING

SYSTEM PROGRAMS OR OTHER SIMILAR JOB CLASSIFICATIONS ASSOCIATED

WITH INTERACTIVE GAMING AND CASINO SIMULCASTING, PERSONS WHO

MANAGE, CONTROL OR ADMINISTER INTERACTIVE GAMING AND CASINO

SIMULCASTING OR THE BETS AND WAGERS ASSOCIATED WITH AUTHORIZED

INTERACTIVE GAMES AND CASINO SIMULCASTING, 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." AS FOLLOWS:

(1) 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

20170HB0271PN1942 - 273 -

CONTROL BOARD UNDER CHAPTER 13A (RELATING TO TABLE GAMES), TO

CONDUCT TABLE GAMES AND IF AUTHORIZED UNDER CHAPTER 13B

(RELATING TO INTERACTIVE GAMING) , TO CONDUCT INTERACTIVE

GAMING. THE TERM INCLUDES ANY:

[(1)] (I) 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)] (II) BOARD-APPROVED INTERIM FACILITY OR

TEMPORARY FACILITY; [AND]

[(3)] (III) AREA OF A HOTEL WHICH THE PENNSYLVANIA

GAMING CONTROL BOARD DETERMINES IS SUITABLE TO CONDUCT

TABLE GAMES[.]; AND

(IV) AREA OF A LICENSED FACILITY WHERE CASINO

SIMULCASTING IS CONDUCTED, AS APPROVED BY THE

PENNSYLVANIA GAMING CONTROL BOARD.

(2) 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 OR BY A CATEGORY 1 SLOT

MACHINE LICENSEE IN CONNECTION WITH THE OPERATION OF SLOT

MACHINES AT A NONPRIMARY LOCATION OR IN CONNECTION WITH

CASINO SIMULCASTING.

* * *

"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]

20170HB0271PN1942 - 274 -

THE STATE HORSE RACING COMMISSION [OR THE STATE HARNESS RACING

COMMISSION] PURSUANT TO [THE ACT OF DECEMBER 17, 1981 (P.L.435,

NO.135), KNOWN AS] THE RACE HORSE INDUSTRY REFORM ACT.

"MANUFACTURER." A PERSON WHO MANUFACTURES, BUILDS, REBUILDS,

FABRICATES, ASSEMBLES, PRODUCES, PROGRAMS, DESIGNS OR OTHERWISE

MAKES MODIFICATIONS TO ANY SLOT MACHINE, TABLE GAME DEVICE OR

ASSOCIATED EQUIPMENT OR AUTHORIZED INTERACTIVE GAMES FOR USE OR

PLAY OF SLOT MACHINES [OR], TABLE GAMES OR AUTHORIZED

INTERACTIVE GAMES IN THIS COMMONWEALTH FOR GAMING PURPOSES. THE

TERM SHALL NOT INCLUDE A PERSON WHO MANUFACTURES, BUILDS,

REBUILDS, FABRICATES, ASSEMBLES, PRODUCES, PROGRAMS, DESIGNS OR

OTHERWISE MAKES MODIFICATIONS TO MULTI-USE COMPUTING DEVICES

USED IN CONNECTION WITH THE CONDUCT OF INTERACTIVE GAMING AT A

QUALIFIED AIRPORT.

"MANUFACTURER LICENSE." A LICENSE ISSUED BY THE PENNSYLVANIA

GAMING CONTROL BOARD AUTHORIZING A MANUFACTURER TO MANUFACTURE

OR PRODUCE SLOT MACHINES, TABLE GAME DEVICES OR ASSOCIATED

EQUIPMENT, INTERACTIVE GAMING DEVICES OR ASSOCIATED EQUIPMENT

FOR USE IN THIS COMMONWEALTH FOR GAMING PURPOSES.

* * *

"MULTI-USE COMPUTING DEVICE." AS FOLLOWS:

(1) A COMPUTING DEVICE, INCLUDING, BUT NOT LIMITED TO, A

TABLET COMPUTER, THAT:

(I) IS LOCATED AND ACCESSIBLE TO ELIGIBLE PASSENGERS

ONLY IN AN AIRPORT GAMING AREA.

(II) ALLOWS AN ELIGIBLE PASSENGER TO PLAY AN

AUTHORIZED INTERACTIVE GAME.

(III) COMMUNICATES WITH A SERVER THAT IS IN A

LOCATION APPROVED BY THE PENNSYLVANIA GAMING CONTROL

BOARD.

20170HB0271PN1942 - 275 -

(IV) IS APPROVED BY THE PENNSYLVANIA GAMING CONTROL

BOARD.

(V) HAS THE CAPABILITY OF BEING LINKED TO AND

MONITORED BY THE DEPARTMENT'S CENTRAL CONTROL COMPUTER

SYSTEM, AS APPLICABLE FOR ANY PARTICULAR INTERACTIVE

GAME, IN ACCORDANCE WITH SECTION 1323 (RELATING TO

CENTRAL CONTROL COMPUTER SYSTEM).

(VI) OFFERS A PLAYER ADDITIONAL FUNCTIONS WHICH

SHALL INCLUDE INTERNET BROWSING, THE CAPABILITY OF

CHECKING FLIGHT STATUS AND ORDERING FOOD OR BEVERAGES.

(2) THE TERM SHALL NOT INCLUDE ANY TABLET OR COMPUTING

DEVICE THAT RESTRICTS, PROHIBITS OR IS INCAPABLE OF PROVIDING

ACCESS TO INTERACTIVE GAMING, INTERACTIVE GAMING SKINS OR

INTERACTIVE GAMING PLATFORMS.

"MULTISTATE AGREEMENT." THE WRITTEN AGREEMENT BETWEEN THE

PENNSYLVANIA GAMING CONTROL BOARD AND REGULATORY AGENCIES IN

OTHER STATES OR JURISDICTIONS FOR THE OPERATION OF A MULTISTATE

WIDE-ARE PROGRESSIVE SLOT MACHINE SYSTEM.

"MULTISTATE WIDE-AREA PROGRESSIVE SLOT MACHINE SYSTEM." THE

LINKING OF SLOT MACHINES LOCATED IN THIS COMMONWEALTH WITH SLOT

MACHINES LOCATED IN ONE OR MORE STATES OR JURISDICTIONS WHOSE

REGULATORY AGENCIES HAVE ENTERED INTO WRITTEN AGREEMENTS WITH

THE PENNSYLVANIA GAMING CONTROL BOARD FOR THE OPERATION OF THE

SYSTEM.

* * *

"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 PENNSYLVANIA GAMING CONTROL

BOARD AND THAT PROVIDES GOODS OR SERVICES:

20170HB0271PN1942 - 276 -

(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.

* * *

"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:

(1) ALLOWS PATRON ACCESS TO FUNDS THAT HAVE BEEN PAID IN

ADVANCE AND CAN BE RETRIEVED OR TRANSFERRED AT SOME POINT IN

THE FUTURE THROUGH THE DEVICE.

(2) 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));

(3) MUST BE DISTRIBUTED BY A SLOT MACHINE LICENSEE OR

ITS AFFILIATES IN ORDER TO BE CONSIDERED A CASH EQUIVALENT AT

THE SLOT MACHINE LICENSEE'S LOCATION OR THE LOCATION OF THE

SLOT MACHINE LICENSEE'S AFFILIATES.

(4) MUST BE USED IN CONJUNCTION WITH AN APPROVED

CASHLESS WAGERING SYSTEM OR ELECTRONIC CREDIT SYSTEM IN ORDER

20170HB0271PN1942 - 277 -

TO TRANSFER FUNDS FOR GAMING PURPOSES.

* * *

"PROGRESSIVE PAYOUT." A SLOT MACHINE WAGER PAYOUT THAT

INCREASES IN A MONETARY AMOUNT BASED ON THE AMOUNTS WAGERED IN A

PROGRESSIVE SYSTEM, INCLUDING A MULTISTATE WIDE-AREA PROGRESSIVE

SLOT MACHINE SYSTEM.

"PROGRESSIVE SYSTEM." A COMPUTERIZED SYSTEM LINKING SLOT

MACHINES IN ONE OR MORE LICENSED FACILITIES WITHIN THIS

COMMONWEALTH AND OFFERING ONE OR MORE COMMON PROGRESSIVE PAYOUTS

BASED ON THE AMOUNTS WAGERED. THE TERM SHALL INCLUDE A

MULTISTATE WIDE-AREA PROGRESSIVE SYSTEM.

* * *

"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.

* * *

20170HB0271PN1942 - 278 -

"SKILL." THE KNOWLEDGE, DEXTERITY, ADROITNESS, ACUMEN OR

OTHER MENTAL SKILL OF AN INDIVIDUAL.

"SKILL SLOT MACHINE." A SLOT MACHINE IN WHICH THE SKILL OF

THE PLAYER, RATHER THAN THE ELEMENTS OF CHANCE, IS THE

PREDOMINANT FACTOR IN AFFECTING THE OUTCOME OF THE GAME.

"SLOT MACHINE."

(1) THE TERM INCLUDES:

(I) 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]:

(A) 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)] (B) MAY UTILIZE SPINNING REELS OR VIDEO

DISPLAYS OR BOTH.

[(2)] (C) MAY OR MAY NOT DISPENSE COINS, TICKETS

OR TOKENS TO WINNING PATRONS.

[(3)] (D) MAY USE AN ELECTRONIC CREDIT SYSTEM

20170HB0271PN1942 - 279 -

FOR RECEIVING WAGERS AND MAKING PAYOUTS. [THE TERM

SHALL INCLUDE ASSOCIATED EQUIPMENT.]

(II) ASSOCIATED EQUIPMENT NECESSARY TO CONDUCT THE

OPERATION OF THE CONTRIVANCE, TERMINAL, MACHINE OR OTHER

DEVICE.

(III) A SKILL SLOT MACHINE, HYBRID SLOT MACHINE AND

THE DEVICES OR ASSOCIATED EQUIPMENT NECESSARY TO CONDUCT

THE OPERATION OF A SKILL SLOT MACHINE OR HYBRID SLOT

MACHINE.

(IV) A SLOT MACHINE USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM AND DEVICES AND

ASSOCIATED EQUIPMENT AS DEFINED BY THE PENNSYLVANIA

GAMING CONTROL BOARD THROUGH REGULATIONS.

(V) A MULTI-USE COMPUTING DEVICE WHICH IS CAPABLE OF

SIMULATING, EITHER DIGITALLY OR ELECTRONICALLY, A SLOT

MACHINE.

(2) THE TERM DOES NOT INCLUDE A FANTASY CONTEST TERMINAL

WITHIN THE MEANING OF CHAPTER 3 (RELATING TO FANTASY

CONTESTS).

* * *

"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

20170HB0271PN1942 - 280 -

OR SERVICES RELATED TO SLOT MACHINES, TABLE GAME DEVICES OR

ASSOCIATED EQUIPMENT, INTERACTIVE GAMING DEVICES, INCLUDING ANY

MULTI-USE COMPUTING DEVICE OR ASSOCIATED EQUIPMENT, TO SLOT

MACHINE LICENSEES FOR USE IN THIS COMMONWEALTH FOR GAMING

PURPOSES.

* * *

"TABLE GAME." ANY BANKING OR NONBANKING GAME APPROVED BY THE

PENNSYLVANIA GAMING CONTROL BOARD. THE TERM INCLUDES ROULETTE,

BACCARAT, BLACKJACK, POKER, CRAPS, BIG SIX WHEEL, MINI-BACCARAT,

RED DOG, PAI GOW, TWENTY-ONE, CASINO WAR, ACEY-DUCEY, SIC BO,

CHUCK-A-LUCK, PANGUINGUE, FAN-TAN, ASIA POKER, BOSTON 5 STUD

POKER, CARIBBEAN STUD POKER, COLORADO HOLD'EM POKER, DOUBLE

ATTACK BLACKJACK, DOUBLE CROSS POKER, DOUBLE DOWN STUD POKER,

FAST ACTION HOLD'EM, FLOP POKER, FOUR CARD POKER, LET IT RIDE

POKER, MINI-CRAPS, MINI-DICE, PAI GOW POKER, POKETTE, SPANISH

21, TEXAS HOLD'EM BONUS POKER, THREE CARD POKER, TWO CARD JOKER

POKER, ULTIMATE TEXAS HOLD'EM, WINNER'S POT POKER AND ANY OTHER

BANKING OR NONBANKING GAME. THE TERM SHALL NOT INCLUDE:

(1) LOTTERY GAMES OF THE PENNSYLVANIA STATE LOTTERY AS

AUTHORIZED UNDER THE ACT OF AUGUST 26, 1971 (P.L.351, NO.91),

KNOWN AS THE STATE LOTTERY LAW.

(2) BINGO AS AUTHORIZED UNDER THE ACT OF JULY 10, 1981

(P.L.214, NO.67), KNOWN AS THE BINGO LAW.

(3) PARI-MUTUEL BETTING ON THE OUTCOME OF THOROUGHBRED

OR HARNESS HORSE RACING AS AUTHORIZED UNDER THE ACT OF

DECEMBER 17, 1981 (P.L.435, NO.135), KNOWN AS THE RACE HORSE

INDUSTRY REFORM ACT.

(4) SMALL GAMES OF CHANCE AS AUTHORIZED UNDER THE ACT OF

DECEMBER 19, 1988 (P.L.1262, NO.156), KNOWN AS THE LOCAL

OPTION SMALL GAMES OF CHANCE ACT.

20170HB0271PN1942 - 281 -

(5) SLOT MACHINE GAMING AND PROGRESSIVE SLOT MACHINE

GAMING AS DEFINED AND AUTHORIZED UNDER THIS PART.

(6) KENO.

(7) A FANTASY CONTEST TERMINAL WITHIN THE MEANING OF

CHAPTER 3 (RELATING TO FANTASY CONTESTS).

(8) ILOTTERY UNDER CHAPTER 7 (RELATING TO ILOTTERY).

"TABLE GAME DEVICE." INCLUDES GAMING TABLES, CARDS, DICE,

CHIPS, SHUFFLERS, TILES, DOMINOES, WHEELS[, DROP BOXES] OR ANY

MECHANICAL, ELECTRICAL OR COMPUTERIZED CONTRIVANCE, TERMINAL,

MACHINE OR OTHER DEVICE, APPARATUS, EQUIPMENT OR SUPPLIES

APPROVED BY THE PENNSYLVANIA GAMING CONTROL BOARD AND USED TO

CONDUCT A TABLE GAME OR THAT IS CAPABLE, THROUGH THE USE OF

DIGITAL, ELECTRONIC OR OTHER COMMUNICATIONS TECHNOLOGY, OF

SIMULATING PLAY OF A TABLE GAME.

* * *

SECTION 4. SECTION 1201(H)(11) OF TITLE 4 IS AMENDED TO

READ:

§ 1201. PENNSYLVANIA GAMING CONTROL BOARD ESTABLISHED.

* * *

(H) QUALIFICATIONS AND RESTRICTIONS.--

* * *

(11) NO MEMBER, EMPLOYEE OF THE BOARD OR INDEPENDENT

CONTRACTOR SHALL ACCEPT A COMPLIMENTARY SERVICE, WAGER OR BE

PAID ANY PRIZE FROM ANY WAGER AT ANY LICENSED FACILITY WITHIN

THIS COMMONWEALTH [OR], AT ANY OTHER FACILITY OUTSIDE THIS

COMMONWEALTH WHICH IS OWNED OR OPERATED BY A LICENSED GAMING

ENTITY OR ANY OF ITS AFFILIATES, INTERMEDIARIES, SUBSIDIARIES

OR HOLDING COMPANIES OR AS A RESULT OF PLAYING AN INTERACTIVE

GAME INCLUDING ON A MULTI-USE COMPUTING DEVICE FOR THE

DURATION OF THEIR TERM OF OFFICE, EMPLOYMENT OR CONTRACT WITH

20170HB0271PN1942 - 282 -

THE BOARD AND FOR A PERIOD OF TWO YEARS FROM THE TERMINATION

OF TERM OF OFFICE, EMPLOYMENT OR CONTRACT WITH THE BOARD. THE

PROVISIONS OF THIS PARAGRAPH PROHIBITING WAGERING DURING THE

TERM OF EMPLOYMENT SHALL NOT APPLY TO EMPLOYEES OR

INDEPENDENT CONTRACTORS WHILE UTILIZING SLOT MACHINES [OR],

TABLE GAME DEVICES, INTERACTIVE GAMING DEVICES OR MULTI-USE

COMPUTING DEVICES FOR TESTING PURPOSES OR WHILE VERIFYING THE

PERFORMANCE OF A SLOT MACHINE [OR], TABLE GAME, INTERACTIVE

GAMING DEVICE OR MULTI-USE COMPUTING DEVICE AS PART OF AN

ENFORCEMENT INVESTIGATION.

* * *

SECTION 5. SECTION 1202(A)(1) AND (B)(17), (18), (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 SHALL HAVE SOLE

REGULATORY AUTHORITY OVER EVERY ASPECT OF THE AUTHORIZATION,

OPERATION AND PLAY OF SLOT MACHINES [AND], TABLE GAMES AND

INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT AND THE

IMPLEMENTATION AND REGULATION OF AIRPORT GAMING.

* * *

(B) SPECIFIC POWERS.--THE BOARD SHALL HAVE THE SPECIFIC

POWER AND DUTY:

20170HB0271PN1942 - 283 -

* * *

(12.2) AT ITS DISCRETION, TO AWARD, REVOKE, SUSPEND,

CONDITION OR DENY AN INTERACTIVE GAMING CERTIFICATE OR AN

INTERACTIVE GAMING LICENSE IN ACCORDANCE WITH CHAPTER 13B

(RELATING TO INTERACTIVE GAMING).

(12.3) TO AWARD, REVOKE, SUSPEND, CONDITION OR DENY A

CASINO SIMULCASTING PERMIT IN ACCORDANCE WITH CHAPTER 13F

(RELATING TO CASINO SIMULCASTING).

* * *

(17) 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 OR AN AUTHORIZED AGENT OF 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.

(18) TO REQUIRE PROSPECTIVE AND EXISTING EMPLOYEES,

INDEPENDENT CONTRACTORS, APPLICANTS, LICENSEES AND PERMITTEES

TO SUBMIT PHOTOGRAPHS CONSISTENT WITH THE STANDARDS [OF THE

COMMONWEALTH PHOTO IMAGING NETWORK] ESTABLISHED BY THE BOARD.

* * *

(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

20170HB0271PN1942 - 284 -

ASSOCIATED EQUIPMENT OR CASINO SIMULCASTING TECHNOLOGY AND

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 OR

CASINO SIMULCASTING TECHNOLOGY AND 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[.]

EXCEPT THAT, IN DETERMINING THE SUITABILITY OF A PERSON WHO

FURNISHES OR SEEKS TO FURNISH CASINO SIMULCASTING TECHNOLOGY

AND EQUIPMENT, THE BOARD SHALL CONSULT THE COMMISSION.

* * *

(23) THE BOARD SHALL NOT APPROVE AN APPLICATION FOR OR

ISSUE OR RENEW A LICENSE, CERTIFICATE, REGISTRATION OR PERMIT

UNLESS IT IS SATISFIED THAT THE APPLICANT HAS DEMONSTRATED BY

CLEAR AND CONVINCING EVIDENCE THAT THE APPLICANT IS A PERSON

OF GOOD CHARACTER, HONESTY AND INTEGRITY AND IS A PERSON

WHOSE PRIOR ACTIVITIES, CRIMINAL RECORD, IF ANY, REPUTATION,

HABITS AND ASSOCIATIONS DO NOT POSE A THREAT TO THE PUBLIC

INTEREST OR THE EFFECTIVE REGULATION AND CONTROL OF SLOT

MACHINE [OR] OPERATIONS, TABLE GAME OPERATIONS, INTERACTIVE

GAMING OPERATIONS OR CASINO SIMULCASTING, OR CREATE OR

ENHANCE THE DANGER OF UNSUITABLE, UNFAIR OR ILLEGAL

PRACTICES, METHODS AND ACTIVITIES IN THE CONDUCT OF SLOT

MACHINE [OR] OPERATIONS, TABLE GAME OPERATIONS, INTERACTIVE

GAMING OPERATIONS OR CASINO SIMULCASTING OR THE CARRYING ON

OF THE BUSINESS AND FINANCIAL ARRANGEMENTS INCIDENTAL

THERETO.

20170HB0271PN1942 - 285 -

* * *

(27.2) WITHIN SIX MONTHS OF THE EFFECTIVE DATE OF THIS

SECTION, TO PUBLISH ON THE BOARD'S INTERNET WEBSITE A

COMPLETE LIST OF ALL SLOT MACHINE LICENSEES WHO FILED A

PETITION SEEKING AUTHORIZATION TO CONDUCT INTERACTIVE GAMING

AND THE STATUS OF EACH PETITION OR INTERACTIVE GAMING

CERTIFICATE.

* * *

(35) TO REVIEW DETAILED SITE PLANS IDENTIFYING THE

INTERACTIVE GAMING RESTRICTED AREA OR ROOM WHERE A SLOT

MACHINE LICENSEE PROPOSES TO MANAGE, ADMINISTER OR CONTROL

INTERACTIVE GAMING OPERATIONS TO DETERMINE THE ADEQUACY OF

THE PROPOSED INTERNAL AND EXTERNAL SECURITY AND PROPOSED

SURVEILLANCE MEASURES.

(36) TO REQUIRE EACH SLOT MACHINE LICENSEE THAT HOLDS AN

INTERACTIVE GAMING CERTIFICATE TO PROVIDE ON A QUARTERLY

BASIS THE FOLLOWING INFORMATION WITH RESPECT TO INTERACTIVE

GAMING:

(I) THE NAME OF ANY PERSON, ENTITY OR FIRM TO WHOM

ANY PAYMENT, REMUNERATION OR OTHER BENEFIT OR THING OF

VALUE HAS BEEN MADE OR CONFERRED FOR PROFESSIONAL

SERVICES, INCLUDING, BUT NOT LIMITED TO, INTERACTIVE

GAMING SYSTEM OPERATIONS OR MANAGEMENT, LEGAL, CONSULTING

AND LOBBYING SERVICES;

(II) THE AMOUNT OR VALUE OF THE PAYMENTS,

REMUNERATION, BENEFIT OR THING OF VALUE;

(III) THE DATE ON WHICH THE PAYMENTS, REMUNERATION,

BENEFIT OR THING OF VALUE WAS SUBMITTED; AND

(IV) THE REASON OR PURPOSE FOR THE PROCUREMENT OF

THE SERVICES.

20170HB0271PN1942 - 286 -

(37) TO REVIEW AND APPROVE DETAILED SITE AND

ARCHITECTURAL PLANS IDENTIFYING THE AREA OF A LICENSED

FACILITY WHERE A SLOT MACHINE LICENSEE PROPOSES TO PLACE SLOT

MACHINES THAT ARE OR WILL BE USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM, SKILL SLOT MACHINES OR

HYBRID SLOT MACHINES OR ADMINISTER CASINO SIMULCASTING AND

MAKE THEM AVAILABLE FOR PLAY IN ORDER TO DETERMINE THE

ADEQUACY OF PROPOSED INTERNAL AND EXTERNAL CONTROLS, SECURITY

AND PROPOSED SURVEILLANCE MEASURES.

SECTION 6. SECTIONS 1204 AND 1206(F)(1) OF TITLE 4 ARE

AMENDED TO READ:

§ 1204. LICENSED GAMING ENTITY APPLICATION APPEALS FROM BOARD.

THE SUPREME COURT OF PENNSYLVANIA SHALL BE VESTED WITH

EXCLUSIVE APPELLATE JURISDICTION TO CONSIDER APPEALS OF ANY

FINAL ORDER, DETERMINATION OR DECISION OF THE BOARD INVOLVING

THE APPROVAL, ISSUANCE, DENIAL OR CONDITIONING OF A SLOT MACHINE

LICENSE [OR], THE AWARD, DENIAL OR CONDITIONING OF A TABLE GAME

OPERATION CERTIFICATE[.] OR THE AWARD, DENIAL OR CONDITIONING OF

AN INTERACTIVE GAMING CERTIFICATE, AN INTERACTIVE GAMING LICENSE

OR A CASINO SIMULCASTING PERMIT. 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, AN INTERACTIVE GAMING LICENSE OR A CASINO

SIMULCASTING PERMIT, UNLESS IT SHALL FIND THAT THE BOARD

20170HB0271PN1942 - 287 -

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, INTERACTIVE GAMING CERTIFICATE

HOLDER OR LICENSEE PURSUANT TO SECTION 1310(A) (RELATING TO

SLOT MACHINE LICENSE APPLICATION CHARACTER REQUIREMENTS)

[OR], 1308(A.1) (RELATING TO APPLICATIONS FOR LICENSE OR

PERMIT), 13B12 (RELATING TO INTERACTIVE GAMING CERTIFICATE

REQUIRED AND CONTENT OF PETITION), 13B14 (RELATING TO

INTERACTIVE GAMING OPERATORS) OR 13F12 (RELATING TO CASINO

SIMULCASTING PERMIT) 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

20170HB0271PN1942 - 288 -

RELATING TO AN APPLICANT, LICENSEE [OR], PERMITTEE,

CERTIFICATE HOLDER, INTERACTIVE GAMING CERTIFICATE HOLDER

OR CASINO SIMULCASTING PERMIT HOLDER, OR THE IMMEDIATE

FAMILY THEREOF.

(III) INFORMATION RELATING TO PROPRIETARY

INFORMATION, TRADE SECRETS, PATENTS OR EXCLUSIVE

LICENSES, ARCHITECTURAL AND ENGINEERING PLANS AND

INFORMATION RELATING TO COMPETITIVE MARKETING MATERIALS

AND STRATEGIES, WHICH MAY INCLUDE CUSTOMER-IDENTIFYING

INFORMATION OR CUSTOMER PROSPECTS FOR SERVICES SUBJECT TO

COMPETITION.

(IV) SECURITY INFORMATION, INCLUDING RISK PREVENTION

PLANS, DETECTION AND COUNTERMEASURES, LOCATION OF COUNT

ROOMS, LOCATION OF 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.

20170HB0271PN1942 - 289 -

§ 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 7. SECTION 1207(1), (5), (6), (8), (9), (10) AND

(21) OF TITLE 4 ARE AMENDED AND THE SECTION IS AMENDED BY ADDING

PARAGRAPHS TO READ:

§ 1207. REGULATORY AUTHORITY OF BOARD.

THE BOARD SHALL HAVE THE POWER AND ITS DUTIES SHALL BE TO:

(1) DENY, DENY THE RENEWAL, REVOKE, CONDITION OR SUSPEND

ANY LICENSE [OR], PERMIT, CERTIFICATE, REGISTRATION OR OTHER

AUTHORIZATION PROVIDED FOR IN THIS PART IF THE BOARD FINDS IN

ITS SOLE DISCRETION THAT A LICENSEE [OR], PERMITTEE,

REGISTRANT, CERTIFICATE HOLDER, OR INTERACTIVE GAMING

CERTIFICATE HOLDER, 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

AUTHORIZATION.

* * *

(5) PRESCRIBE THE PROCEDURES TO BE FOLLOWED BY SLOT

MACHINE LICENSEES FOR ANY FINANCIAL EVENT THAT OCCURS IN THE

20170HB0271PN1942 - 290 -

OPERATION AND PLAY OF SLOT MACHINES [OR], TABLE GAMES,

AUTHORIZED INTERACTIVE GAMES, CASINO SIMULCASTING OR MULTI-

USE COMPUTING DEVICES.

(6) PRESCRIBE CRITERIA AND CONDITIONS FOR THE OPERATION

OF SLOT MACHINE PROGRESSIVE SYSTEMS, INCLUDING MULTISTATE

WIDE-AREA PROGRESSIVE SLOT MACHINE SYSTEMS. A WIDE AREA

PROGRESSIVE SLOT SYSTEM SHALL BE COLLECTIVELY ADMINISTERED BY

PARTICIPATING SLOT MACHINE LICENSEES IN ACCORDANCE WITH THE

TERMS OF A WRITTEN AGREEMENT EXECUTED BY EACH PARTICIPATING

SLOT MACHINE LICENSEE AND, IN THE CASE OF A MULTISTATE WIDE-

AREA PROGRESSIVE SLOT MACHINE SYSTEM, IN ACCORDANCE WITH THE

MULTISTATE AGREEMENT, AS APPROVED BY THE BOARD.

(6.1) COLLABORATE WITH THE APPROPRIATE REGULATORY

AGENCIES IN OTHER STATES OR JURISDICTIONS TO FACILITATE THE

ESTABLISHMENT OF MULTISTATE WIDE-AREA PROGRESSIVE SLOT

MACHINE SYSTEMS BY SLOT MACHINE LICENSEES IN THIS

COMMONWEALTH AND, IF DETERMINED NECESSARY, ENTER INTO THE

MULTISTATE AGREEMENTS.

* * *

(7.2) ENFORCE PRESCRIBED HOURS FOR THE OPERATION OF

AUTHORIZED INTERACTIVE GAMES SO THAT AN INTERACTIVE GAMING

CERTIFICATE HOLDER OR INTERACTIVE GAMING OPERATOR MAY CONDUCT

AUTHORIZED INTERACTIVE GAMES ON ANY DAY DURING THE YEAR IN

ORDER TO MEET THE NEEDS OF REGISTERED PLAYERS OR TO MEET

COMPETITION.

(7.3) IN CONSULTATION WITH THE COMMISSION, ENFORCE

PRESCRIBED HOURS OF OPERATION OF CASINO SIMULCASTING BY SLOT

MACHINE LICENSEES AND THE OPERATION OF SLOT MACHINES AT A

NONPRIMARY LOCATION BY A CATEGORY 1 SLOT MACHINE LICENSEE.

(8) REQUIRE THAT EACH LICENSED GAMING ENTITY PROHIBIT

20170HB0271PN1942 - 291 -

PERSONS UNDER 21 YEARS OF AGE FROM OPERATING OR USING SLOT

MACHINES [OR], PLAYING TABLE GAMES OR PARTICIPATING IN

INTERACTIVE GAMING AND CASINO SIMULCASTING.

(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

CASINO SIMULCASTING TECHNOLOGY AND EQUIPMENT PRIOR TO BEING

PLACED INTO USE BY A SLOT MACHINE LICENSEE. HOWEVER, THE

BOARD SHALL COLLABORATE WITH THE COMMISSION TO FACILITATE THE

INSPECTION AND CERTIFICATION OF CASINO SIMULCASTING

TECHNOLOGY AND EQUIPMENT.

(10) [REQUIRE] SUBJECT TO PARAGRAPH (10.1), REQUIRE THAT

NO SLOT MACHINE OR AUTHORIZED INTERACTIVE GAME THAT

REPLICATES THE PLAY OF A SLOT MACHINE, OTHER THAN A SLOT

MACHINE OR AUTHORIZED INTERACTIVE GAME THAT REPLICATES THE

PLAY OF A SLOT MACHINE THAT IS USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM, 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 OR AN AUTHORIZED INTERACTIVE GAME THAT

REPLICATES THE PLAY OF A SLOT MACHINE DIVIDED BY THE TOTAL

VALUE [OF SLOT MACHINE] WAGERS EXPECTED TO BE MADE ON THAT

PLAY OR SLOT MACHINE GAME OR AN AUTHORIZED INTERACTIVE GAME

THAT REPLICATES THE PLAY OF A SLOT MACHINE DURING THE SAME

PORTION OF THE GAME CYCLE. IN SO DOING, THE BOARD SHALL

DECIDE WHETHER THE CALCULATION SHALL INCLUDE THE ENTIRE CYCLE

20170HB0271PN1942 - 292 -

OF A SLOT MACHINE GAME OR AN AUTHORIZED INTERACTIVE GAME THAT

REPLICATES THE PLAY OF A SLOT MACHINE OR ANY PORTION THEREOF.

SUBJECT TO PARAGRAPH (10.1), IN THE CASE OF A SLOT MACHINE

THAT IS USED IN A MULTISTATE WIDE-AREA PROGRESSIVE SLOT

MACHINE SYSTEM, THE THEORETICAL PAYOUT PERCENTAGE SHALL BE AS

SET FORTH IN THE MULTISTATE AGREEMENT.

(10.1) FOR EACH OF THE FOLLOWING, DEFINE THE PLAYER'S

WIN PERCENTAGE BASED ON THE RELATIVE SKILL OF THE PLAYER OR

THE COMBINATION OF SKILL AND THE ELEMENTS OF CHANCE OF THE

GAME:

(I) A SKILL SLOT MACHINE OR AN AUTHORIZED

INTERACTIVE GAME THAT REPLICATES THE PLAY OF A SKILL SLOT

MACHINE. FOR A SKILL SLOT MACHINE OR AUTHORIZED

INTERACTIVE GAME THAT REPLICATES THE PLAY OF A SKILL SLOT

MACHINE THAT IS USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM, THE PLAYER'S WIN

PERCENTAGE SHALL BE AS SET FORTH IN THE MULTISTATE

AGREEMENT.

(II) A HYBRID SLOT MACHINE OR AN AUTHORIZED

INTERACTIVE GAME THAT REPLICATES THE PLAY OF A HYBRID

SLOT MACHINE. FOR A HYBRID SLOT MACHINE OR AN AUTHORIZED

INTERACTIVE GAME THAT REPLICATES THE PLAY OF A HYBRID

SLOT MACHINE THAT IS USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM, THE PLAYER'S WIN

PERCENTAGE SHALL BE SET FORTH IN THE MULTISTATE

AGREEMENT.

* * *

(21) AUTHORIZE, IN ITS DISCRETION, A SLOT MACHINE

LICENSEE TO CONDUCT SLOT MACHINE CONTESTS OR TOURNAMENTS,

TABLE GAME CONTESTS OR TOURNAMENTS IN ACCORDANCE WITH SECTION

20170HB0271PN1942 - 293 -

13A22.1 (RELATING TO TABLE GAME TOURNAMENTS) OR INTERACTIVE

GAMING CONTESTS OR TOURNAMENTS AND ADOPT REGULATIONS

GOVERNING THE CONDUCT OF SUCH CONTESTS AND TOURNAMENTS.

(21.1) AUTHORIZE, AT ITS DISCRETION, A SLOT MACHINE

LICENSEE TO PLACE SLOT MACHINES THAT ARE USED IN A MULTISTATE

WIDE-AREA PROGRESSIVE SLOT MACHINE SYSTEM, SKILL SLOT

MACHINES OR HYBRID SLOT MACHINES AND MAKE THEM AVAILABLE FOR

PLAY AT LICENSED FACILITIES.

(21.2) ADOPT AND PROMULGATE REGULATIONS TO GOVERN THE

OPERATION AND PLACEMENT OF SKILL SLOT MACHINES AND HYBRID

SLOT MACHINES BY SLOT MACHINE LICENSEES AT LICENSED

FACILITIES IN THE SAME MANNER AS PROVIDED IN SECTION 13B03

(RELATING TO REGULATIONS).

(22) LICENSE, REGULATE, INVESTIGATE AND TAKE ANY OTHER

ACTION DETERMINED NECESSARY REGARDING ALL ASPECTS OF

INTERACTIVE GAMING AND CASINO SIMULCASTING.

(23) DEFINE AND LIMIT THE RULES OF AUTHORIZED

INTERACTIVE GAMES, INCLUDING ODDS, INTERACTIVE GAMING 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) ENSURE, IN CONSULTATION WITH THE COMMISSION, THAT

THE WAGERING AT CASINO SIMULCASTING FACILITIES IS CONDUCTED

IN CONFORMANCE WITH THE PARI-MUTUEL SYSTEM OF WAGERING

REGULATED BY THE COMMISSION UNDER 3 PA.C.S. CH. 93 (RELATING

TO RACE HORSE INDUSTRY REFORM).

20170HB0271PN1942 - 294 -

(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

IN 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 AND WAGERS FROM PERSONS IN THIS

COMMONWEALTH MAY BE MADE THROUGH AN INTERACTIVE GAMING

PLATFORM TO A STATE OR JURISDICTION WITH WHICH THE

COMMONWEALTH HAS AN INTERACTIVE GAMING RECIPROCAL AGREEMENT

IF THE BOARD DETERMINES THAT SUCH WAGERING IS NOT

INCONSISTENT WITH FEDERAL LAW OR THE LAW OF THE STATE OR

JURISDICTION IN WHICH THE PERSON OR GAMING ENTITY 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 IS

HEREBY DESIGNATED AS THE AGENCY OF THE COMMONWEALTH WITH THE

SOLE POWER AND AUTHORITY TO ENTER INTO INTERACTIVE GAMING

RECIPROCAL AGREEMENTS WITH OTHER STATES OR JURISDICTIONS.

(27) ENTER INTO MULTISTATE AGREEMENTS WITH OTHER STATES

OR JURISDICTIONS FOR THE OPERATION OF MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEMS.

(28) AUTHORIZE A CATEGORY 2 OR CATEGORY 3 SLOT MACHINE

LICENSEE TO ENTER INTO AN AGREEMENT WITH A CATEGORY 1 SLOT

MACHINE LICENSEE FOR THE CONDUCT OF CASINO SIMULCASTING UNDER

THE CATEGORY 1 SLOT MACHINE LICENSEE'S AUTHORITY AS A

LICENSED RACING ENTITY, IF SUCH AGREEMENT IS APPROVED BY THE

BOARD AND BY THE COMMISSION, PURSUANT TO THE COMMISSION'S

AUTHORITY UNDER 3 PA.C.S. CH. 93.

20170HB0271PN1942 - 295 -

(29) ADOPT, IN CONSULTATION WITH THE COMMISSION,

REGULATIONS TO GOVERN THE CONDUCT OF CASINO SIMULCASTING BY A

CATEGORY 2 OR CATEGORY 3 SLOT MACHINE LICENSEE IN ACCORDANCE

WITH PARAGRAPH (28).

(30) ADOPT AND PROMULGATE REGULATIONS TO GOVERN THE

INSTALLATION OF VIDEO DISPLAY TECHNOLOGY IN APPROVED AREAS OF

A CATEGORY 1 LICENSED FACILITY TO ENABLE THE DELIVERY OF

SIMULCAST HORSE RACE MEETINGS TO PATRONS THROUGH VIDEO WALLS

AND OTHER SUCH VIDEO DISPLAY TECHNOLOGY. THE BOARD MAY

CONSULT WITH THE COMMISSION TO FACILITATE THE INSTALLATION OF

VIDEO DISPLAY MONITORS IN ACCORDANCE WITH THIS PARAGRAPH AND

TO FACILITATE THE CONDUCT OF CASINO SIMULCASTING UNDER

PARAGRAPH (28).

SECTION 8. SECTION 1209(B) OF TITLE 4 IS AMENDED TO READ:

§ 1209. SLOT MACHINE LICENSE FEE.

* * *

(B) TERM.--A SLOT MACHINE LICENSE, AFTER PAYMENT OF THE FEE,

SHALL BE IN EFFECT UNLESS SUSPENDED, REVOKED OR NOT RENEWED BY

THE BOARD UPON GOOD CAUSE CONSISTENT WITH THE LICENSE

REQUIREMENTS AS PROVIDED FOR IN THIS PART. SLOT MACHINE

LICENSEES SHALL BE REQUIRED TO UPDATE THE INFORMATION IN THEIR

INITIAL APPLICATIONS ANNUALLY, AND THE LICENSE OF A LICENSEE IN

GOOD STANDING SHALL BE RENEWED EVERY [THREE] FIVE YEARS. NOTHING

IN THIS SUBSECTION SHALL RELIEVE A LICENSEE OF THE AFFIRMATIVE

DUTY TO NOTIFY THE BOARD OF ANY CHANGES RELATING TO THE STATUS

OF ITS LICENSE OR TO ANY OTHER INFORMATION CONTAINED IN THE

APPLICATION MATERIALS ON FILE WITH THE BOARD. AS TO THE RENEWAL

OF A LICENSE, EXCEPT AS REQUIRED IN SUBSECTION (F)(3), NO

ADDITIONAL LICENSE FEE PURSUANT TO SUBSECTION (A) SHALL BE

REQUIRED.

20170HB0271PN1942 - 296 -

* * *

SECTION 9. 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 INTERACTIVE GAMING OPERATORS TO PROVIDE

INFORMATION TO THE BOARD TO ASSIST IN THE PREPARATION OF THE

REPORT.

* * *

(D.1) IMPACT OF INTERACTIVE GAMING.--COMMENCING ONE YEAR

AFTER THE ISSUANCE OF THE FIRST INTERACTIVE GAMING CERTIFICATE

AND CONTINUING ANNUALLY THEREAFTER, THE BOARD SHALL PREPARE AND

DISTRIBUTE A REPORT TO THE GOVERNOR AND THE STANDING COMMITTEES

OF THE GENERAL ASSEMBLY WITH JURISDICTION OVER THE BOARD ON THE

IMPACT OF INTERACTIVE GAMING ON COMPULSIVE AND PROBLEM GAMBLING

AND GAMBLING ADDICTION IN THIS COMMONWEALTH. THE REPORT SHALL BE

20170HB0271PN1942 - 297 -

PREPARED BY A PRIVATE ORGANIZATION OR ENTITY WITH EXPERTISE IN

SERVING AND TREATING THE NEEDS OF PERSONS WITH COMPULSIVE

GAMBLING ADDICTIONS, WHICH ORGANIZATION OR ENTITY SHALL BE

SELECTED BY THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS. THE

REPORT MAY BE PREPARED AND DISTRIBUTED IN COORDINATION WITH THE

BOARD. ANY COSTS ASSOCIATED WITH THE PREPARATION AND

DISTRIBUTION OF THE REPORT SHALL BE BORNE BY ALL INTERACTIVE

GAMING CERTIFICATE HOLDERS. THE BOARD SHALL BE AUTHORIZED TO

ASSESS A FEE AGAINST EACH INTERACTIVE GAMING CERTIFICATE HOLDER

FOR THESE PURPOSES.

(D.2) ADDITIONAL INFORMATION FOR ANNUAL REPORT.--

(1) ONE YEAR AFTER THE COMMENCEMENT OF CASINO

SIMULCASTING IN ACCORDANCE WITH CHAPTER 13F (RELATING TO

CASINO SIMULCASTING), THE OPERATION OF SKILL SLOT MACHINES,

HYBRID SLOT MACHINES AND THE OPERATION OF A MULTISTATE WIDE-

AREA SLOT MACHINE SYSTEM, THE REPORT REQUIRED UNDER

SUBSECTION (A) SHALL INCLUDE INFORMATION RELATED TO THE

FOLLOWING:

(I) THE CONDUCT OF CASINO SIMULCASTING.

(II) THE OPERATION OF SKILL SLOT MACHINES AND HYBRID

SLOT MACHINES.

(III) THE OPERATION OF THE MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM.

(2) INFORMATION ON REVENUE, TAXES, FEES AND FINES, IF

ANY, COLLECTED DURING THE PRECEDING CALENDAR YEAR AND ANY

OTHER INFORMATION, DATA OR RECOMMENDATIONS RELATED TO THE

CONDUCT OF CASINO SIMULCASTING AND THE OPERATION OF THE

MULTISTATE WIDE-AREA PROGRESSIVE SLOT MACHINE SYSTEM, SKILL

SLOT MACHINES AND HYBRID SLOT MACHINES AS DETERMINED BY THE

BOARD.

20170HB0271PN1942 - 298 -

(D.3) STUDY.--THE BOARD SHALL STUDY AND ANNUALLY REPORT TO

THE STANDING COMMITTEES OF THE GENERAL ASSEMBLY WITH

JURISDICTION OVER THE BOARD ON DEVELOPMENTS IN GAMING TECHNOLOGY

AND THE IMPACT, IF ANY, NEW TECHNOLOGIES ARE HAVING OR ARE

EXPECTED TO HAVE ON THE SUSTAINABILITY AND COMPETITIVENESS OF

THE GAMING INDUSTRY IN THIS COMMONWEALTH. THE INITIAL REPORT

SHALL BE DUE ONE YEAR AFTER THE EFFECTIVE DATE OF THIS

SUBSECTION. EACH REPORT SHALL SPECIFICALLY ADDRESS THE

FOLLOWING:

(1) AWARENESS AND GROWTH, TO THE EXTENT KNOWN, OF ANY

UNREGULATED COMMERCIAL GAMING PRODUCTS, SUCH AS E-SPORTS AND

OTHER SUCH DIGITAL-BASED COMPUTER OR VIDEO TECHNOLOGY.

(2) NEW GAMING PRODUCTS, IF ANY, WHICH HAVE BEEN

INTRODUCED IN OTHER STATES OR JURISDICTIONS.

(3) ANY GAMING PRODUCTS WHICH THE BOARD MAY AUTHORIZE

PURSUANT TO ITS REGULATORY AUTHORITY UNDER THIS PART.

(4) ANY LEGISLATIVE OR ADMINISTRATIVE CONCERNS REGARDING

TRADITIONAL, NEW OR EMERGING GAMING TECHNOLOGIES WITH

RECOMMENDATIONS REGARDING RESOLUTION OF SUCH CONCERNS.

* * *

SECTION 10. SECTION 1212(E) OF TITLE 4 IS AMENDED BY ADDING

PARAGRAPHS 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

20170HB0271PN1942 - 299 -

INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT.

(10) TECHNOLOGY RELATED TO CASINO SIMULCASTING.

SECTION 11. SECTION 1302(A) OF TITLE 4 IS AMENDED TO READ:

§ 1302. CATEGORY 1 SLOT MACHINE LICENSE.

(A) ELIGIBILITY.--A PERSON MAY BE ELIGIBLE TO APPLY FOR A

CATEGORY 1 LICENSE TO PLACE AND OPERATE SLOT MACHINES AT A

LICENSED RACETRACK FACILITY IF THE PERSON:

(1) HAS BEEN ISSUED A LICENSE FROM EITHER THE STATE

HORSE RACING COMMISSION OR THE STATE HARNESS RACING

COMMISSION TO CONDUCT THOROUGHBRED OR HARNESS RACE MEETINGS

RESPECTIVELY WITH PARI-MUTUEL WAGERING AND HAS CONDUCTED LIVE

HORSE RACES FOR NOT LESS THAN TWO YEARS IMMEDIATELY PRECEDING

THE EFFECTIVE DATE OF THIS PART;

(2) HAS BEEN APPROVED OR ISSUED A LICENSE FROM EITHER

THE STATE HORSE RACING COMMISSION OR THE STATE HARNESS RACING

COMMISSION TO CONDUCT THOROUGHBRED OR HARNESS RACE MEETINGS

RESPECTIVELY WITH PARI-MUTUEL WAGERING WITHIN 18 MONTHS

IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THIS PART AND

WILL SUCCESSFULLY CONDUCT LIVE RACING PURSUANT TO THE

REQUIREMENTS OF SECTION 1303 (RELATING TO ADDITIONAL CATEGORY

1 SLOT MACHINE LICENSE REQUIREMENTS);

(3) HAS BEEN APPROVED BY THE STATE HARNESS RACING

COMMISSION, AFTER THE EFFECTIVE DATE OF THIS PART, TO CONDUCT

HARNESS RACE MEETINGS WITH PARI-MUTUEL WAGERING AND WILL

CONDUCT LIVE RACING PURSUANT TO THE REQUIREMENTS OF SECTION

1303; OR

(4) IS A SUCCESSOR IN INTEREST TO PERSONS ELIGIBLE UNDER

PARAGRAPH (1), (2) OR (3) WHO COMPLY WITH THE REQUIREMENTS OF

SECTION 1328 (RELATING TO CHANGE IN OWNERSHIP OR CONTROL OF

SLOT MACHINE LICENSEE) OR IS A SUCCESSOR IN INTEREST TO

20170HB0271PN1942 - 300 -

PERSONS OTHERWISE ELIGIBLE UNDER PARAGRAPH (1), (2) OR (3)

BUT PRECLUDED FROM ELIGIBILITY UNDER THE PROVISIONS OF

SECTION [1330] 1330.1 (RELATING TO UNDUE ECONOMIC

CONCENTRATION PROHIBITED).

NOTHING IN THIS PART SHALL BE CONSTRUED TO PERMIT THE APPROVAL

OR ISSUANCE OF MORE THAN ONE SLOT MACHINE LICENSE AT A LICENSED

RACETRACK FACILITY.

* * *

SECTION 12. SECTION 1305(A) AND (E) OF TITLE 4 ARE AMENDED

AND THE SECTION IS AMENDED BY ADDING SUBSECTIONS TO READ:

§ 1305. CATEGORY 3 SLOT MACHINE LICENSE.

(A) ELIGIBILITY.--

(1) A PERSON MAY BE ELIGIBLE TO APPLY FOR A CATEGORY 3

SLOT MACHINE LICENSE IF THE APPLICANT, ITS AFFILIATE,

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY HAS NOT APPLIED

FOR OR BEEN APPROVED OR ISSUED A CATEGORY 1 OR CATEGORY 2

SLOT MACHINE LICENSE AND THE PERSON IS SEEKING TO LOCATE A

CATEGORY 3 LICENSED FACILITY IN A WELL-ESTABLISHED RESORT

HOTEL HAVING NO FEWER THAN 275 GUEST ROOMS UNDER COMMON

OWNERSHIP AND HAVING SUBSTANTIAL YEAR-ROUND [RECREATIONAL]

GUEST AMENITIES. THE APPLICANT FOR A CATEGORY 3 LICENSE SHALL

BE THE OWNER OR BE A WHOLLY OWNED SUBSIDIARY OF THE OWNER OF

THE WELL-ESTABLISHED RESORT HOTEL. [A CATEGORY 3 LICENSE MAY

ONLY BE GRANTED UPON THE EXPRESS CONDITION THAT AN INDIVIDUAL

MAY NOT ENTER A GAMING AREA OF THE LICENSED FACILITY IF THE

INDIVIDUAL IS NOT ANY OF THE FOLLOWING:

(I) A REGISTERED OVERNIGHT GUEST OF THE WELL-

ESTABLISHED RESORT HOTEL.

(II) A PATRON OF ONE OR MORE OF THE AMENITIES

PROVIDED BY THE WELL-ESTABLISHED RESORT HOTEL.

20170HB0271PN1942 - 301 -

(III) AN AUTHORIZED EMPLOYEE OF THE SLOT MACHINE

LICENSEE, OF A GAMING SERVICE PROVIDER, OF THE BOARD OR

OF ANY REGULATORY, EMERGENCY RESPONSE OR LAW ENFORCEMENT

AGENCY WHILE ENGAGED IN THE PERFORMANCE OF THE EMPLOYEE'S

DUTIES.

(IV) AN INDIVIDUAL HOLDING A VALID MEMBERSHIP

APPROVED IN ACCORDANCE WITH PARAGRAPH (1.1) OR A GUEST OF

SUCH INDIVIDUAL.

(1.1) THE BOARD MAY APPROVE A SEASONAL OR YEAR-ROUND

MEMBERSHIP THAT ALLOWS AN INDIVIDUAL TO USE ONE OR MORE OF

THE AMENITIES PROVIDED BY THE WELL-ESTABLISHED RESORT HOTEL

HOLDING A CATEGORY 3 SLOT MACHINE LICENSE. THE MEMBERSHIP

SHALL ALLOW THE MEMBER AND ONE GUEST TO ENTER THE GAMING

FLOOR AT ANY TIME AS LONG AS THE GUEST IS ACCOMPANIED BY THE

INDIVIDUAL OWNING OR HOLDING THE MEMBERSHIP. THE BOARD SHALL

BASE ITS APPROVAL OF A MEMBERSHIP ON ALL OF THE FOLLOWING:

(I) THE DURATION OF THE MEMBERSHIP.

(II) THE AMENITY COVERED BY THE MEMBERSHIP.

(III) WHETHER THE FEE CHARGED FOR THE MEMBERSHIP

REPRESENTS THE FAIR MARKET VALUE FOR THE USE OF THE

AMENITY.]

(2) NOTWITHSTANDING SECTION 1512(A) AND (A.1) (RELATING

TO PUBLIC OFFICIAL FINANCIAL INTEREST), IF AT THE TIME OF

APPLICATION AN APPLICANT HAS TERMINATED PUBLIC OFFICE OR

EMPLOYMENT AS AN EXECUTIVE-LEVEL PUBLIC EMPLOYEE WITHIN THE

LAST CALENDAR YEAR, THE APPLICANT SHALL BE ELIGIBLE TO APPLY

FOR A SLOT MACHINE LICENSE UNDER THIS SECTION BUT MAY NOT BE

ISSUED A LICENSE UNTIL ONE YEAR FOLLOWING THE DATE OF

TERMINATION AS A PUBLIC OFFICIAL OR EXECUTIVE-LEVEL PUBLIC

EMPLOYEE. AN APPLICATION SUBMITTED IN ACCORDANCE WITH THIS

20170HB0271PN1942 - 302 -

PARAGRAPH SHALL NOT CONSTITUTE A VIOLATION OF SECTION 1512(A)

OR (A.1).

(3) IF THE PERSON SEEKING A SLOT MACHINE LICENSE

PROPOSES TO PLACE THE LICENSED FACILITY UPON LAND DESIGNATED

A SUBZONE, AN EXPANSION SUBZONE OR AN IMPROVEMENT SUBZONE

UNDER THE ACT OF OCTOBER 6, 1998 (P.L.705, NO.92), KNOWN AS

THE KEYSTONE OPPORTUNITY ZONE, KEYSTONE OPPORTUNITY EXPANSION

ZONE AND KEYSTONE OPPORTUNITY IMPROVEMENT ZONE ACT, THE

PERSON SHALL, AT ANY TIME PRIOR TO THE APPLICATION BEING

APPROVED, SUBMIT A STATEMENT WAIVING THE EXEMPTIONS,

DEDUCTIONS, ABATEMENTS OR CREDITS GRANTED UNDER THE KEYSTONE

OPPORTUNITY ZONE, KEYSTONE OPPORTUNITY EXPANSION ZONE AND

KEYSTONE OPPORTUNITY IMPROVEMENT ZONE ACT IF THE BOARD

APPROVES THE APPLICATION.

* * *

(C.1) ADDITIONAL SLOT MACHINES.--

(1) UPON SUBMISSION BY A CATEGORY 3 SLOT MACHINE

LICENSEE OF A PETITION TO THE BOARD, IN SUCH FORM AND MANNER

AS THE BOARD MAY REQUIRE, THE BOARD MAY AUTHORIZE THE

CATEGORY 3 SLOT MACHINE LICENSEE TO INCREASE THE NUMBER OF

SLOT MACHINES AT THE CATEGORY 3 SLOT MACHINE LICENSEE'S

LICENSED FACILITY.

(2) AN INCREASE IN THE NUMBER OF SLOT MACHINES BY A

CATEGORY 3 SLOT MACHINE LICENSEE UNDER PARAGRAPH (1) MAY NOT,

AT THE DISCRETION OF THE BOARD, EXCEED 250 ADDITIONAL SLOT

MACHINES, WHICH SHALL BE IN ADDITION TO THE NUMBER OF

PERMISSIBLE SLOT MACHINES AUTHORIZED UNDER SUBSECTION (C).

* * *

(D.1) ADDITIONAL FEE.--NOTWITHSTANDING SUBSECTION (D), NO

LATER THAN 60 DAYS AFTER THE EFFECTIVE DATE OF THIS SUBSECTION,

20170HB0271PN1942 - 303 -

EACH HOLDER OF AN EXISTING CATEGORY 3 SLOT MACHINE LICENSE

ISSUED BY THE BOARD BEFORE JANUARY 1, 2017, SHALL PAY A ONE-TIME

FEE OF $1,000,000. EACH HOLDER OF A CATEGORY 3 SLOT MACHINE

LICENSE ISSUED BY THE BOARD AFTER JANUARY 1, 2017, SHALL PAY A

ONE-TIME FEE OF $1,000,000 WITHIN 60 DAYS OF ISSUANCE OF THE

SLOT MACHINE LICENSE. THE FEE SHALL BE DEPOSITED IN THE GENERAL

FUND.

(D.2) FEE FOR ADDITIONAL SLOT MACHINES.--NOTWITHSTANDING

SUBSECTION (D), NO LATER THAN 60 DAYS AFTER THE BOARD APPROVES A

REQUEST FOR AN INCREASE IN THE NUMBER OF SLOT MACHINES SUBMITTED

BY A CATEGORY 3 SLOT MACHINE LICENSEE IN ACCORDANCE WITH

SUBSECTION (C.1), THE CATEGORY 3 SLOT MACHINE LICENSEE SHALL PAY

A ONE-TIME FEE OF $2,500,000 FOR DEPOSIT INTO THE GENERAL FUND.

[(E) DEFINITIONS.--FOR THE PURPOSE OF SUBSECTION (A), THE

FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANING GIVEN TO THEM

IN THIS SUBSECTION:

"AMENITIES." ANY ANCILLARY ACTIVITIES, SERVICES OR

FACILITIES IN WHICH A REGISTERED GUEST OR THE TRANSIENT PUBLIC,

IN RETURN FOR NON-DE MINIMIS CONSIDERATION AS DEFINED BY BOARD

REGULATION, MAY PARTICIPATE AT A WELL-ESTABLISHED RESORT HOTEL,

INCLUDING, BUT NOT LIMITED TO, SPORTS AND RECREATIONAL

ACTIVITIES AND FACILITIES SUCH AS A GOLF COURSE OR GOLF DRIVING

RANGE, TENNIS COURTS OR SWIMMING POOL; HEALTH SPA; CONVENTION,

MEETING AND BANQUET FACILITIES; ENTERTAINMENT FACILITIES; AND

RESTAURANT FACILITIES.

"PATRON OF THE AMENITIES." ANY INDIVIDUAL WHO IS A

REGISTERED ATTENDEE OF A CONVENTION, MEETING OR BANQUET EVENT OR

A PARTICIPANT IN A SPORT OR RECREATIONAL EVENT OR ANY OTHER

SOCIAL, CULTURAL OR BUSINESS EVENT HELD AT A RESORT HOTEL OR WHO

PARTICIPATES IN ONE OR MORE OF THE AMENITIES PROVIDED TO

20170HB0271PN1942 - 304 -

REGISTERED GUESTS OF THE WELL-ESTABLISHED RESORT HOTEL.]

SECTION 12.1. TITLE 4 IS AMENDED BY ADDING A SECTION TO

READ:

§ 1306.1. REMAINING CATEGORY 2 LICENSES.

NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS PART, THE BOARD

SHALL CREATE AN EXPEDITED APPROVAL PROCESS THAT PRIORITIZES THE

ISSUANCE OF ANY REMAINING CATEGORY 2 SLOT MACHINE LICENSES NOT

ISSUED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, PROVIDED

THAT THE EXPEDITED APPROVAL PROCESS SHALL PROTECT THE PUBLIC

INTEREST AND INTEGRITY OF GAMING. WHEN CREATING THE EXPEDITED

APPROVAL PROCESS, THE BOARD SHALL INCLUDE PROCEDURES FOR

ENSURING THAT A CATEGORY 2 SLOT MACHINE LICENSE APPLIED FOR, THE

APPLICATION FOR WHICH IS WITHDRAWN AFTER THE EFFECTIVE DATE OF

THIS SECTION, IS ELIGIBLE TO BE REAPPLIED FOR BY ANOTHER

APPLICANT WITHIN 30 DAYS OF THE WITHDRAWN APPLICATION. THE BOARD

SHALL CREATE THE EXPEDITED APPROVAL PROCESS WITHIN 30 DAYS OF

THE EFFECTIVE DATE OF THIS SECTION.

SECTION 12.2. SECTION 1307 OF TITLE 4 IS AMENDED TO READ:

§ 1307. NUMBER OF SLOT MACHINE LICENSES.

(A) LIMITATION.--THE BOARD MAY LICENSE NO MORE THAN SEVEN

CATEGORY 1 LICENSED FACILITIES AND NO MORE THAN FIVE CATEGORY 2

LICENSED FACILITIES, AS IT MAY DEEM APPROPRIATE, AS LONG AS TWO,

AND NOT MORE, CATEGORY 2 LICENSED FACILITIES ARE LOCATED BY THE

BOARD WITHIN THE CITY OF THE FIRST CLASS AND THAT ONE, AND NOT

MORE, CATEGORY 2 LICENSED FACILITY IS LOCATED BY THE BOARD

WITHIN THE CITY OF THE SECOND CLASS. THE BOARD MAY AT ITS

DISCRETION INCREASE THE TOTAL NUMBER OF CATEGORY 2 LICENSED

FACILITIES PERMITTED TO BE LICENSED BY THE BOARD BY AN AMOUNT

NOT TO EXCEED THE TOTAL NUMBER OF CATEGORY 1 LICENSES NOT

APPLIED FOR WITHIN FIVE YEARS FOLLOWING THE EFFECTIVE DATE OF

20170HB0271PN1942 - 305 -

THIS PART. EXCEPT AS PERMITTED BY SECTION 1328 (RELATING TO

CHANGE IN OWNERSHIP OR CONTROL OF SLOT MACHINE LICENSEE), ANY

CATEGORY 1 LICENSE MAY BE REISSUED BY THE BOARD AT ITS

DISCRETION AS A CATEGORY 2 LICENSE IF AN APPLICATION FOR

ISSUANCE OF SUCH LICENSE HAS NOT BEEN MADE TO THE BOARD. THE

BOARD MAY LICENSE NO MORE THAN [THREE] TWO CATEGORY 3 LICENSED

FACILITIES.

(B) DELAY OF ISSUANCE.--NOTWITHSTANDING SUBSECTION (A) OR

ANY OTHER PROVISIONS OF THIS PART, THE BOARD MAY NOT:

(1) ACCEPT AN APPLICATION FOR A CATEGORY 1 SLOT MACHINE

LICENSE FOR A PERIOD STARTING ON THE EFFECTIVE DATE OF THIS

SUBSECTION THROUGH JULY 1, 2020.

(2) ISSUE A CATEGORY 1 SLOT MACHINE LICENSE FOR A PERIOD

STARTING ON THE EFFECTIVE DATE OF THIS SUBSECTION THROUGH

JULY 1, 2020.

CHANGE OF OWNERSHIP OR CONTROL OF A CATEGORY 1 SLOT MACHINE

LICENSE AS PERMITTED BY SECTION 1328.

SECTION 13. SECTION 1309(A.1) HEADING OF TITLE 4 IS AMENDED

AND THE SUBSECTION IS AMENDED BY ADDING A PARAGRAPH TO READ:

§ 1309. SLOT MACHINE LICENSE APPLICATION.

* * *

(A.1) TABLE GAMES AND INTERACTIVE GAMING INFORMATION.--

* * *

(3) THE BOARD MAY PERMIT AN APPLICANT FOR A SLOT MACHINE

LICENSE THAT HAS AN APPLICATION UNDER PARAGRAPH (1) OR (2)

PENDING BEFORE THE BOARD TO SUPPLEMENT ITS APPLICATION WITH

ALL INFORMATION REQUIRED UNDER CHAPTER 13B (RELATING TO

INTERACTIVE GAMING) AND TO REQUEST THAT THE BOARD CONSIDER

ITS APPLICATION FOR A SLOT MACHINE LICENSE, A TABLE GAME

20170HB0271PN1942 - 306 -

OPERATION CERTIFICATE AND AN INTERACTIVE GAMING CERTIFICATE

CONCURRENTLY. ALL FEES FOR AN INTERACTIVE GAMING CERTIFICATE

SHALL BE PAID BY THE APPLICANT IN ACCORDANCE WITH THE

REQUIREMENTS OF THIS PART.

* * *

SECTION 14. SECTIONS 1317(A) AND (C) AND 1317.1(A), (B),

(C), (C.1), (D.1) AND (E) OF TITLE 4 ARE AMENDED AND THE

SECTIONS ARE AMENDED BY ADDING SUBSECTIONS TO READ:

§ 1317. SUPPLIER LICENSES.

(A) APPLICATION.--A MANUFACTURER THAT ELECTS TO CONTRACT

WITH A SUPPLIER UNDER SECTION 1317.1(D.1) (RELATING TO

MANUFACTURER LICENSES) SHALL ENSURE THAT THE SUPPLIER IS

APPROPRIATELY LICENSED UNDER THIS SECTION. A PERSON SEEKING TO

PROVIDE SLOT MACHINES, TABLE GAME DEVICES OR ASSOCIATED

EQUIPMENT, INTERACTIVE GAMING DEVICES OR ASSOCIATED EQUIPMENT OR

MULTI-USE COMPUTING DEVICES TO A SLOT MACHINE LICENSEE,AN

INTERACTIVE GAMING CERTIFICATE HOLDER OR AN INTERACTIVE GAMING

OPERATOR WITHIN THIS COMMONWEALTH THROUGH A CONTRACT WITH A

LICENSED MANUFACTURER SHALL APPLY TO THE BOARD FOR THE

APPROPRIATE SUPPLIER LICENSE.

* * *

REQUIREMENTS OF SUBSECTION (B) HAVE BEEN MET, THE BOARD MAY

APPROVE THE APPLICATION AND ISSUE THE APPLICANT A SUPPLIER

LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:

(1) THE [INITIAL LICENSE SHALL BE FOR A PERIOD OF ONE

YEAR, AND, IF RENEWED UNDER SUBSECTION (D), THE] LICENSE

SHALL BE ISSUED FOR A PERIOD OF [THREE] FIVE YEARS AND SHALL

BE RENEWED IN ACCORDANCE WITH SUBSECTION (D). NOTHING IN THIS

PARAGRAPH SHALL RELIEVE A LICENSEE OF THE AFFIRMATIVE DUTY TO

20170HB0271PN1942 - 307 -

NOTIFY THE BOARD OF ANY CHANGES RELATING TO THE STATUS OF ITS

LICENSE OR TO ANY INFORMATION CONTAINED IN THE APPLICATION

MATERIALS ON FILE WITH THE BOARD.

(2) THE LICENSE SHALL BE NONTRANSFERABLE.

(3) ANY OTHER CONDITION ESTABLISHED BY THE BOARD.

* * *

(C.2) ABBREVIATED PROCESS FOR SUPPLIER.--

(1) NOTWITHSTANDING SUBSECTION (C.1)(1) OR ANY

REGULATIONS OF THE BOARD TO THE CONTRARY, THE BOARD MAY

EXTEND THE USE OF THE ABBREVIATED PROCESS AUTHORIZED UNDER

SUBSECTION (C.1) TO AN APPLICANT FOR A SUPPLIER LICENSE TO

SUPPLY SLOT MACHINES USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM, SKILL SLOT MACHINES, HYBRID

SLOT MACHINES AND DEVICES OR ASSOCIATED EQUIPMENT USED IN

CONNECTION WITH MULTISTATE WIDE-AREA PROGRESSIVE SLOT MACHINE

SYSTEMS, SKILL SLOT MACHINES OR HYBRID SLOT MACHINES,

INTERACTIVE GAMING DEVICES OR ASSOCIATED EQUIPMENT USED IN

CONNECTION WITH INTERACTIVE GAMING, INCLUDING MULTI-USE

COMPUTING DEVICES, IF THE APPLICANT HOLDS A VALID SUPPLIER

LICENSE ISSUED BY THE BOARD TO SUPPLY SLOT MACHINES OR

ASSOCIATED EQUIPMENT OR TABLE GAMES OR TABLE GAME DEVICES OR

ASSOCIATED EQUIPMENT. THE REQUIREMENTS OF SUBSECTION (C.1)(2)

AND (3) SHALL APPLY TO THIS SUBSECTION.

(2) AN APPLICANT FOR A SUPPLIER'S LICENSE TO SUPPLY SLOT

MACHINES USED IN A MULTISTATE WIDE-AREA PROGRESSIVE SYSTEMS,

SKILL SLOT MACHINES OR HYBRID SLOT MACHINES OR ASSOCIATED

EQUIPMENT OR INTERACTIVE GAMING DEVICES OR ASSOCIATED

EQUIPMENT SHALL BE SUBJECT TO THE APPLICABLE PROVISIONS OF

THIS PART.

* * *

20170HB0271PN1942 - 308 -

§ 1317.1. MANUFACTURER LICENSES.

(A) APPLICATION.--A PERSON SEEKING TO MANUFACTURE SLOT

MACHINES, TABLE GAME DEVICES AND ASSOCIATED EQUIPMENT OR

INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT FOR USE IN

THIS COMMONWEALTH SHALL APPLY TO THE BOARD FOR A MANUFACTURER

LICENSE.

(B) REQUIREMENTS.--AN APPLICATION FOR A MANUFACTURER LICENSE

SHALL BE ON THE FORM REQUIRED BY THE BOARD, ACCOMPANIED BY THE

APPLICATION FEE, AND SHALL INCLUDE ALL OF THE FOLLOWING:

(1) THE NAME AND BUSINESS ADDRESS OF THE APPLICANT AND

THE APPLICANT'S AFFILIATES, INTERMEDIARIES, SUBSIDIARIES AND

HOLDING COMPANIES; THE PRINCIPALS AND KEY EMPLOYEES OF EACH

BUSINESS; AND A LIST OF EMPLOYEES AND THEIR POSITIONS WITHIN

EACH BUSINESS, AS WELL AS ANY FINANCIAL INFORMATION REQUIRED

BY THE BOARD.

(2) A STATEMENT THAT THE APPLICANT AND EACH AFFILIATE,

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF THE APPLICANT

ARE NOT SLOT MACHINE LICENSEES.

(3) THE CONSENT TO A BACKGROUND INVESTIGATION OF THE

APPLICANT, ITS PRINCIPALS AND KEY EMPLOYEES OR OTHER PERSONS

REQUIRED BY THE BOARD AND A RELEASE TO OBTAIN ANY AND ALL

INFORMATION NECESSARY FOR THE COMPLETION OF THE BACKGROUND

INVESTIGATION.

(4) THE DETAILS OF ANY EQUIVALENT LICENSE GRANTED OR

DENIED BY OTHER JURISDICTIONS WHERE GAMING ACTIVITIES AS

AUTHORIZED BY THIS PART ARE PERMITTED AND CONSENT FOR THE

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

20170HB0271PN1942 - 309 -

ASSOCIATED EQUIPMENT TO BE MANUFACTURED OR REPAIRED.

(6) ANY OTHER INFORMATION DETERMINED BY THE BOARD TO BE

APPROPRIATE.

REQUIREMENTS OF SUBSECTION (B) HAVE BEEN MET, THE BOARD MAY

APPROVE THE APPLICATION AND GRANT THE APPLICANT A MANUFACTURER

LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:

(1) THE [INITIAL LICENSE SHALL BE FOR A PERIOD OF ONE

YEAR, AND, IF RENEWED UNDER SUBSECTION (D), THE] LICENSE

SHALL BE ISSUED FOR A PERIOD OF [THREE] FIVE YEARS AND SHALL

BE RENEWED IN ACCORDANCE WITH SUBSECTION (D). NOTHING IN THIS

PARAGRAPH SHALL RELIEVE THE LICENSEE OF THE AFFIRMATIVE DUTY

TO NOTIFY THE BOARD OF ANY CHANGES RELATING TO THE STATUS OF

ITS LICENSE OR TO ANY OTHER INFORMATION CONTAINED IN

APPLICATION MATERIALS ON FILE WITH THE BOARD.

(2) THE LICENSE SHALL BE NONTRANSFERABLE.

(3) ANY OTHER CONDITION ESTABLISHED BY THE BOARD.

(C.1) ABBREVIATED PROCESS.--IN THE EVENT AN APPLICANT FOR A

MANUFACTURER LICENSE TO MANUFACTURE TABLE GAME DEVICES OR

ASSOCIATED EQUIPMENT USED IN CONNECTION WITH TABLE GAMES IS

LICENSED BY THE BOARD UNDER THIS SECTION TO MANUFACTURE SLOT

MACHINES OR ASSOCIATED EQUIPMENT USED IN CONNECTION WITH SLOT

MACHINES, THE BOARD MAY DETERMINE TO USE AN ABBREVIATED PROCESS

REQUIRING ONLY THAT INFORMATION DETERMINED BY THE BOARD TO BE

NECESSARY TO CONSIDER THE ISSUANCE OF A LICENSE TO MANUFACTURE

TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT USED IN CONNECTION

WITH TABLE GAMES, INCLUDING FINANCIAL VIABILITY OF THE

APPLICANT. NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE

ANY FEES ASSOCIATED WITH OBTAINING A LICENSE, CERTIFICATE OR

PERMIT THROUGH THE NORMAL APPLICATION PROCESS. THE BOARD MAY

20170HB0271PN1942 - 310 -

ONLY USE THE ABBREVIATED PROCESS IF ALL OF THE FOLLOWING APPLY:

(1) THE MANUFACTURER LICENSE WAS ISSUED BY THE BOARD

WITHIN A 36-MONTH PERIOD IMMEDIATELY PRECEDING THE DATE THE

MANUFACTURER LICENSEE FILES AN APPLICATION TO MANUFACTURE

TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT.

(2) THE PERSON TO WHOM THE MANUFACTURER LICENSE WAS

ISSUED AFFIRMS THERE HAS BEEN NO MATERIAL CHANGE IN

CIRCUMSTANCES RELATING TO THE LICENSE.

(3) THE BOARD DETERMINES, IN ITS SOLE DISCRETION, THAT

THERE HAS BEEN NO MATERIAL CHANGE IN CIRCUMSTANCES RELATING

TO THE LICENSEE THAT NECESSITATES THAT THE ABBREVIATED

PROCESS NOT BE USED.

(C.2) ABBREVIATED PROCESS FOR MANUFACTURER.--

(1) NOTWITHSTANDING SUBSECTION (C.1)(1) OR ANY

REGULATIONS OF THE BOARD TO THE CONTRARY, THE BOARD MAY

EXTEND THE USE OF THE ABBREVIATED PROCESS AUTHORIZED UNDER

SUBSECTION (C.1) TO AN APPLICANT FOR A MANUFACTURER LICENSE

TO MANUFACTURE SLOT MACHINES USED IN MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEMS, SKILL SLOT MACHINES, HYBRID

SLOT MACHINES OR ASSOCIATED EQUIPMENT USED IN CONNECTION WITH

MULTISTATE WIDE-AREA PROGRESSIVE SLOT MACHINE SYSTEMS, SKILL

SLOT MACHINES OR HYBRID SLOT MACHINES OR INTERACTIVE GAMING

DEVICES OR ASSOCIATED EQUIPMENT USED IN CONNECTION WITH

INTERACTIVE GAMING, IF THE APPLICANT HOLDS A VALID

MANUFACTURER LICENSE ISSUED BY THE BOARD TO MANUFACTURER SLOT

MACHINES OR ASSOCIATED EQUIPMENT OR TABLE GAMES OR TABLE GAME

DEVICES OR ASSOCIATED EQUIPMENT. THE REQUIREMENTS OF

SUBSECTION (C.1) (2) AND (3) SHALL APPLY TO THIS SUBSECTION.

(2) AN APPLICANT FOR A MANUFACTURER LICENSE TO

MANUFACTURE SLOT MACHINES USED IN A MULTISTATE WIDE-AREA

20170HB0271PN1942 - 311 -

PROGRESSIVE SYSTEM, SKILL OR HYBRID SLOT MACHINES OR

ASSOCIATED EQUIPMENT OR INTERACTIVE GAMING DEVICES OR

ASSOCIATED EQUIPMENT SHALL BE SUBJECT TO THE APPLICABLE

PROVISIONS OF THIS PART.

* * *

(D.1) AUTHORITY.--THE FOLLOWING SHALL APPLY TO A LICENSED

MANUFACTURER:

(1) A MANUFACTURER OR ITS DESIGNEE, AS LICENSED BY THE

BOARD, MAY SUPPLY OR REPAIR ANY SLOT MACHINE, TABLE GAME

DEVICE OR ASSOCIATED EQUIPMENT OR INTERACTIVE GAMING DEVICE

OR ASSOCIATED EQUIPMENT MANUFACTURED BY THE MANUFACTURER,

PROVIDED THE MANUFACTURER HOLDS THE APPROPRIATE MANUFACTURER

LICENSE.

(2) A MANUFACTURER OF SLOT MACHINES MAY CONTRACT WITH A

SUPPLIER UNDER SECTION 1317 (RELATING TO SUPPLIER LICENSES)

TO PROVIDE SLOT MACHINES OR ASSOCIATED EQUIPMENT TO A SLOT

MACHINE LICENSEE WITHIN THIS COMMONWEALTH, PROVIDED THE

SUPPLIER IS LICENSED TO SUPPLY SLOT MACHINES OR ASSOCIATED

EQUIPMENT USED IN CONNECTION WITH SLOT MACHINES.

(3) A MANUFACTURER MAY CONTRACT WITH A SUPPLIER UNDER

SECTION 1317 TO PROVIDE TABLE GAME DEVICES OR ASSOCIATED

EQUIPMENT TO A CERTIFICATE HOLDER, PROVIDED THE SUPPLIER IS

LICENSED TO SUPPLY TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT

USED IN CONNECTION WITH TABLE GAMES.

(4) A MANUFACTURER MAY CONTRACT WITH A SUPPLIER UNDER

SECTION 1317 TO PROVIDE SLOT MACHINES USED IN A MULTISTATE

WIDE-AREA PROGRESSIVE SYSTEM, SKILL SLOT MACHINES OR HYBRID

SLOT MACHINES OR ASSOCIATED EQUIPMENT, INTERACTIVE GAMING

DEVICES OR ASSOCIATED EQUIPMENT, PROVIDED THAT THE

MANUFACTURER IS LICENSED TO MANUFACTURE SLOT MACHINES USED IN

20170HB0271PN1942 - 312 -

A MULTISTATE WIDE-AREA PROGRESSIVE SLOT MACHINE SYSTEM, SKILL

SLOT MACHINES OR HYBRID SLOT MACHINES OR ASSOCIATED EQUIPMENT

OR INTERACTIVE GAMING DEVICES OR ASSOCIATED EQUIPMENT USED IN

CONNECTION WITH INTERACTIVE GAMES.

(E) PROHIBITIONS.--

(1) NO PERSON MAY MANUFACTURE SLOT MACHINES, TABLE GAME

DEVICES OR ASSOCIATED EQUIPMENT OR INTERACTIVE GAMING DEVICES

OR ASSOCIATED EQUIPMENT FOR USE WITHIN THIS COMMONWEALTH [BY

A SLOT MACHINE LICENSEE] UNLESS THE PERSON HAS BEEN ISSUED

THE APPROPRIATE MANUFACTURER LICENSE UNDER THIS SECTION.

(2) EXCEPT AS PERMITTED IN SECTION 13A23.1 (RELATING TO

TRAINING EQUIPMENT), NO [SLOT MACHINE LICENSEE] PERSON MAY

USE SLOT MACHINES, TABLE GAME DEVICES OR ASSOCIATED

EQUIPMENT, AUTHORIZED INTERACTIVE GAMES OR INTERACTIVE GAMING

DEVICES OR ASSOCIATED EQUIPMENT UNLESS THE SLOT MACHINES,

TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT, INTERACTIVE GAMES

OR INTERACTIVE GAMING DEVICES OR ASSOCIATED EQUIPMENT WERE

MANUFACTURED BY A PERSON THAT HAS BEEN ISSUED THE APPROPRIATE

MANUFACTURER LICENSE UNDER THIS SECTION.

(3) NO PERSON ISSUED A LICENSE UNDER THIS SECTION SHALL

APPLY FOR OR BE ISSUED A LICENSE UNDER SECTION 1317.

(4) NO LIMITATION SHALL BE PLACED ON THE NUMBER OF

MANUFACTURER LICENSES ISSUED OR THE TIME PERIOD TO SUBMIT

APPLICATIONS FOR LICENSURE, EXCEPT AS REQUIRED TO COMPLY WITH

SECTION 1306 (RELATING TO ORDER OF INITIAL LICENSE ISSUANCE).

SECTION 15. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:

§ 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

20170HB0271PN1942 - 313 -

BUSINESS WITH A NONGAMING SERVICE PROVIDER SHALL PROVIDE

NOTIFICATION TO THE BOARD PRIOR TO:

(I) THE NONGAMING SERVICE PROVIDER'S PROVISION OF

GOODS OR SERVICES AT THE SLOT MACHINE LICENSEE'S LICENSED

FACILITY; OR

(II) THE PROVISION OF GOODS OR SERVICES FOR USE IN

THE OPERATION OF 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 NEITHER THE

NONGAMING SERVICE PROVIDER NOR ITS EMPLOYEES WILL ADVERSELY

AFFECT THE PUBLIC INTEREST OR INTEGRITY OF GAMING.

(5) ANY OTHER INFORMATION THAT THE BOARD MAY REQUIRE.

20170HB0271PN1942 - 314 -

PROVIDER NOTIFICATION REQUIRED UNDER SUBSECTION (A) MAY BE VALID

FOR THREE 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 SUCH 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 AND ITS EMPLOYEES

SHALL ONLY PROVIDE THE GOODS AND SERVICES DESCRIBED IN THE

NOTIFICATION UNDER THIS SECTION.

(2) THE SLOT MACHINE LICENSEE OR APPLICANT FOR A SLOT

MACHINE LICENSE SHALL NOTIFY THE BOARD OF ANY MATERIAL CHANGE

IN THE INFORMATION PROVIDED IN THE NOTIFICATION UNDER THIS

SECTION. NO FEE SHALL BE REQUIRED FOR A SUBSEQUENT CHANGE

DURING THE TIME FOR WHICH THE NOTIFICATION REMAINS VALID

UNDER SUBSECTION (C).

(3) THE SLOT MACHINE LICENSEE OR APPLICANT FOR A SLOT

MACHINE LICENSE SHALL ENSURE THAT EMPLOYEES OF THE NONGAMING

SERVICE PROVIDER DO NOT ENTER THE GAMING FLOOR OR A GAMING-

RELATED RESTRICTED AREA 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:

20170HB0271PN1942 - 315 -

(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

OR ANY OF ITS 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 SLOT

MACHINE LICENSEE OR APPLICANT FOR A SLOT MACHINE LICENSE 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) CRIMINAL HISTORY RECORD INFORMATION.--NOTWITHSTANDING

ANY OTHER PROVISION OF THIS PART OR REGULATION OF THE BOARD, A

NONGAMING SERVICE PROVIDER SHALL OBTAIN FROM THE PENNSYLVANIA

STATE POLICE AND PROVIDE TO THE BOARD THE RESULTS OF A CRIMINAL

HISTORY RECORD INFORMATION CHECK UNDER 18 PA.C.S. CH. 91

(RELATING TO CRIMINAL HISTORY RECORD INFORMATION).

(H) EMERGENCY NOTIFICATION.--

(1) A SLOT MACHINE LICENSEE MAY USE A NONGAMING SERVICE

PROVIDER PRIOR TO THE BOARD RECEIVING NOTIFICATION UNDER THIS

20170HB0271PN1942 - 316 -

SECTION WHEN A THREAT TO PUBLIC HEALTH, WELFARE OR SAFETY

EXISTS OR CIRCUMSTANCES OUTSIDE THE CONTROL OF THE SLOT

MACHINE LICENSEE REQUIRE IMMEDIATE ACTION TO MITIGATE DAMAGE

OR LOSS TO THE SLOT MACHINE LICENSEE'S LICENSED FACILITY OR

TO THE COMMONWEALTH.

(2) A SLOT MACHINE LICENSEE THAT USES A NONGAMING

SERVICE PROVIDER IN ACCORDANCE WITH PARAGRAPH (1) SHALL:

(I) NOTIFY THE BOARD IMMEDIATELY UPON ENGAGING A

NONGAMING SERVICE PROVIDER FOR WHICH THE BOARD HAS NOT

PREVIOUSLY RECEIVED NOTIFICATION IN ACCORDANCE WITH

SUBSECTION (A).

(II) PROVIDE THE NOTIFICATION REQUIRED UNDER

SUBSECTION (A) WITHIN A REASONABLE TIME AS ESTABLISHED BY

THE BOARD.

(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 AND MAKE IT AVAILABLE

UPON REQUEST TO A SLOT MACHINE LICENSEE OR AN APPLICANT FOR A

SLOT MACHINE LICENSE.

(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 DESCRIBED IN PARAGRAPH (2).

(J) DUTIES OF NONGAMING SERVICE PROVIDER.--A NONGAMING

SERVICE PROVIDER SHALL:

20170HB0271PN1942 - 317 -

(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 ISSUED UNDER THIS

PART OR REGULATION OF THE BOARD.

(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 OR APPLICANT FOR

A SLOT MACHINE LICENSE SHALL REPORT ANY 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) OR THE

REGULATORY AUTHORITY OF THE BOARD UNDER SECTION 1207 (RELATING

TO REGULATORY AUTHORITY OF BOARD).

SECTION 16. SECTION 1320(A) OF TITLE 4 IS AMENDED AND THE

SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

§ 1320. SLOT MACHINE TESTING AND CERTIFICATION STANDARDS.

(A) USE OF OTHER STATE STANDARDS.--[UNTIL SUCH TIME AS THE

BOARD ESTABLISHES AN INDEPENDENT TESTING AND CERTIFICATION

FACILITY PURSUANT TO SUBSECTION (B), THE] THE BOARD MAY

DETERMINE, AT ITS DISCRETION, WHETHER THE SLOT MACHINE TESTING

AND CERTIFICATION STANDARDS OF ANOTHER JURISDICTION WITHIN THE

UNITED STATES IN WHICH AN APPLICANT FOR A MANUFACTURER LICENSE

IS LICENSED ARE COMPREHENSIVE AND THOROUGH AND PROVIDE SIMILAR

20170HB0271PN1942 - 318 -

ADEQUATE SAFEGUARDS AS THOSE REQUIRED BY THIS PART. IF THE BOARD

MAKES THAT DETERMINATION, IT MAY PERMIT A MANUFACTURER THROUGH A

LICENSED SUPPLIER AS PROVIDED IN SECTION 1317 (RELATING TO

SUPPLIER [AND MANUFACTURER LICENSES APPLICATION] LICENSES) TO

DEPLOY THOSE SLOT MACHINES WHICH HAVE MET THE SLOT MACHINE

TESTING AND CERTIFICATION STANDARDS IN SUCH OTHER JURISDICTIONS

WITHOUT UNDERGOING THE FULL TESTING AND CERTIFICATION PROCESS BY

A BOARD-ESTABLISHED INDEPENDENT FACILITY. IN THE EVENT SLOT

MACHINES OF AN APPLICANT FOR A MANUFACTURER LICENSE ARE LICENSED

IN SUCH OTHER JURISDICTION, THE BOARD MAY DETERMINE TO USE AN

ABBREVIATED PROCESS REQUIRING ONLY THAT INFORMATION DETERMINED

BY THE BOARD TO BE NECESSARY TO CONSIDER THE ISSUANCE OF A SLOT

MACHINE CERTIFICATION TO SUCH AN APPLICANT. [ALTERNATIVELY, THE

BOARD IN ITS DISCRETION MAY ALSO RELY UPON THE CERTIFICATION OF

A SLOT MACHINE THAT HAS MET THE TESTING AND CERTIFICATION

STANDARDS OF A BOARD-APPROVED PRIVATE TESTING AND CERTIFICATION

FACILITY UNTIL SUCH TIME AS THE BOARD ESTABLISHES AN INDEPENDENT

TESTING AND CERTIFICATION FACILITY PURSUANT TO SUBSECTION (B).

NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE ANY FEES

ASSOCIATED WITH OBTAINING A LICENSE THROUGH THE NORMAL

APPLICATION PROCESS.]

* * *

(B.1) USE OF PRIVATE TESTING AND CERTIFICATION FACILITIES.--

NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS PART OR REGULATION

OF THE BOARD, IF A SLOT MACHINE IS TESTED AND CERTIFIED BY A

PRIVATE TESTING AND CERTIFICATION FACILITY REGISTERED WITH THE

BOARD, THE BOARD SHALL USE AN ABBREVIATED CERTIFICATION PROCESS

REQUIRING ONLY THAT INFORMATION DETERMINED BY IT TO BE NECESSARY

TO CONSIDER THE ISSUANCE OF A SLOT MACHINE CERTIFICATION UNDER

THIS SECTION. WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS

20170HB0271PN1942 - 319 -

SUBSECTION, THE BOARD SHALL PROMULGATE REGULATIONS THAT:

(1) PROVIDE FOR THE REGISTRATION OF PRIVATE TESTING AND

CERTIFICATION FACILITIES. PERSONS SEEKING REGISTRATION UNDER

THIS SUBSECTION SHALL BE SUBJECT TO SECTION 1202(B)(9)

(RELATING TO GENERAL AND SPECIFIC POWERS).

(2) SPECIFY THE FORM AND CONTENT OF THE APPLICATION FOR

REGISTRATION.

(3) ESTABLISH AND COLLECT AN APPLICATION FEE FOR PERSONS

SEEKING REGISTRATION. THE APPLICATION FEE SHALL INCLUDE THE

COSTS OF ALL BACKGROUND INVESTIGATIONS AS DETERMINED

NECESSARY AND APPROPRIATE BY THE BUREAU.

(4) ESTABLISH UNIFORM PROCEDURES AND STANDARDS WHICH

PRIVATE TESTING AND CERTIFICATION FACILITIES MUST COMPLY WITH

DURING THE TESTING AND CERTIFICATION OF SLOT MACHINES.

(5) UTILIZE INFORMATION PROVIDED BY PRIVATE TESTING AND

CERTIFICATION FACILITIES FOR THE ABBREVIATED CERTIFICATION OF

SLOT MACHINES.

(6) ESTABLISH AN ABBREVIATED CERTIFICATION PROCESS THAT

MAY BE USED BY REGISTERED PRIVATE TESTING AND CERTIFICATION

FACILITIES TO TEST AND CERTIFY SLOT MACHINES.

(7) ESTABLISH FEES THAT MUST BE PAID BY LICENSED

MANUFACTURERS.

(8) REQUIRE SLOT MACHINES SUBMITTED FOR ABBREVIATED

CERTIFICATION TO BE APPROVED OR DENIED BY THE BOARD WITHIN 30

DAYS FROM THE DATE OF SUBMISSION TO THE BOARD. IF THE BOARD

FAILS TO ACT WITHIN THE 30-DAY PERIOD, THE ABBREVIATED

CERTIFICATION SHALL BE DEEMED CONDITIONALLY APPROVED.

(9) PROVIDE PROCEDURES AND STANDARDS FOR THE SUSPENSION

AND REVOCATION OF THE REGISTRATION OF A PRIVATE TESTING AND

CERTIFICATION FACILITY AND THE REINSTATEMENT OF A SUSPENDED

20170HB0271PN1942 - 320 -

OR REVOKED REGISTRATION, AS DETERMINED APPROPRIATE BY THE

BOARD.

* * *

SECTION 17. SECTION 1326 OF TITLE 4 IS AMENDED TO READ:

§ 1326. [LICENSE RENEWALS] RENEWALS.

(A) RENEWAL.--ALL PERMITS [AND], LICENSES, REGISTRATIONS OR

CERTIFICATES ISSUED UNDER THIS PART UNLESS OTHERWISE PROVIDED

SHALL BE SUBJECT TO RENEWAL EVERY [THREE] FIVE YEARS. NOTHING IN

THIS SUBSECTION SHALL RELIEVE A LICENSEE, PERMITTEE OR HOLDER OF

A CERTIFICATE OR REGISTRATION OF THE AFFIRMATIVE DUTY TO NOTIFY

THE BOARD OF ANY CHANGES RELATING TO THE STATUS OF ITS LICENSE,

PERMIT, CERTIFICATE OR REGISTRATION OR TO ANY OTHER INFORMATION

CONTAINED IN THE APPLICATION MATERIALS ON FILE WITH THE BOARD.

THE APPLICATION FOR RENEWAL SHALL BE SUBMITTED AT LEAST [60] 180

DAYS PRIOR TO THE EXPIRATION OF THE PERMIT [OR], LICENSE,

REGISTRATION OR CERTIFICATE AND SHALL INCLUDE AN UPDATE OF THE

INFORMATION CONTAINED IN THE INITIAL AND ANY PRIOR RENEWAL

APPLICATIONS AND THE PAYMENT OF ANY RENEWAL FEE REQUIRED BY THIS

PART. UNLESS OTHERWISE SPECIFICALLY PROVIDED IN THIS PART, THE

AMOUNT OF ANY RENEWAL FEE SHALL BE CALCULATED BY THE BOARD TO

REFLECT THE LONGER RENEWAL PERIOD. A PERMIT [OR], LICENSE,

REGISTRATION OR CERTIFICATE FOR WHICH A COMPLETED RENEWAL

APPLICATION AND FEE, IF REQUIRED, HAS BEEN RECEIVED BY THE BOARD

WILL CONTINUE IN EFFECT UNLESS AND UNTIL THE BOARD SENDS WRITTEN

NOTIFICATION TO THE HOLDER OF THE PERMIT [OR], LICENSE,

REGISTRATION OR CERTIFICATE THAT THE BOARD HAS DENIED THE

RENEWAL OF SUCH PERMIT [OR], LICENSE, REGISTRATION OR

CERTIFICATE.

(B) REVOCATION OR FAILURE TO RENEW.--IN ADDITION TO ANY

OTHER SANCTIONS THE BOARD MAY IMPOSE UNDER THIS PART, THE BOARD

20170HB0271PN1942 - 321 -

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 18. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:

§ 1326.1. SLOT MACHINE LICENSE OPERATION FEE.

(A) IMPOSITION.--BEGINNING JANUARY 1, 2017, EACH CATEGORY 1

AND CATEGORY 2 LICENSED GAMING ENTITY, EXCEPT A CATEGORY 1 OR

CATEGORY 2 LICENSED GAMING ENTITY LOCATED IN A CITY OF THE FIRST

CLASS, SHALL PAY TO THE BOARD AN ANNUAL SLOT MACHINE LICENSE

OPERATION FEE 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).

(B) PAYMENT OF FEE.--THE SLOT MACHINE LICENSE OPERATION FEE

IMPOSED UNDER SUBSECTION (A) SHALL BE PAID IN EQUAL MONTHLY

INSTALLMENTS ON OR BEFORE THE FIRST DAY OF EACH MONTH.

SUSPEND, REVOKE OR DENY ANY PERMIT OR LICENSE ISSUED UNDER THIS

20170HB0271PN1942 - 322 -

PART TO A CATEGORY 1 LICENSED GAMING ENTITY OR CATEGORY 2

LICENSED GAMING ENTITY THAT FAILS TO PAY THE SLOT MACHINE

LICENSE OPERATION FEE IMPOSED UNDER SUBSECTION (A).

(D) DEPOSIT.--THE SLOT MACHINE LICENSE OPERATION FEES

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 19. SECTION 1328(D) OF TITLE 4 IS AMENDED AND THE

SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:

§ 1328. CHANGE IN OWNERSHIP OR CONTROL OF SLOT MACHINE

LICENSEE.

* * *

(D) FEE REDUCTION.--THE BOARD MAY IN ITS DISCRETION

ELIMINATE THE NEED FOR QUALIFICATION AND/OR PROPORTIONATELY

REDUCE[, BUT NOT ELIMINATE,] THE NEW LICENSE FEE OTHERWISE

REQUIRED PURSUANT TO THIS SECTION IN CONNECTION WITH A CHANGE OF

CONTROL OF A LICENSEE, PROVIDED THAT THE REDUCED MINIMUM LICENSE

FEE FOR A CATEGORY 1 OR CATEGORY 2 SLOT MACHINE LICENSE SHALL

NOT BE LESS THAN $15,000,000 AND THE REDUCED MINIMUM LICENSE FEE

FOR A CATEGORY 3 SLOT MACHINE LICENSE SHALL NOT BE LESS THAN

$1,000,000, DEPENDING UPON THE TYPE OF TRANSACTION, THE RELEVANT

OWNERSHIP INTERESTS AND CHANGES THERETO RESULTING FROM THE

TRANSACTION AND OTHER CONSIDERATIONS DEEMED RELEVANT BY THE

BOARD.

* * *

(F) UNDUE ECONOMIC CONCENTRATION PROHIBITED.--A CHANGE IN

OWNERSHIP OR CONTROL OF A SLOT MACHINE LICENSEE SHALL COMPLY

WITH SECTION 1330.1 (RELATING TO UNDUE ECONOMIC CONCENTRATION

20170HB0271PN1942 - 323 -

PROHIBITED).

SECTION 20. SECTION 1330 OF TITLE 4 IS REPEALED:

[§ 1330. MULTIPLE SLOT MACHINE LICENSE PROHIBITION.

NO SLOT MACHINE LICENSEE, ITS AFFILIATE, INTERMEDIARY,

SUBSIDIARY OR HOLDING COMPANY MAY POSSESS AN OWNERSHIP OR

FINANCIAL INTEREST THAT IS GREATER THAN 33.3% OF ANOTHER SLOT

MACHINE LICENSEE OR PERSON ELIGIBLE TO APPLY FOR A CATEGORY 1

LICENSE, ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING

COMPANY. THE BOARD SHALL APPROVE THE TERMS AND CONDITIONS OF ANY

DIVESTITURE UNDER THIS SECTION. UNDER NO CIRCUMSTANCES SHALL ANY

SUCH DIVESTITURE BE APPROVED BY THE BOARD IF THE COMPENSATION

FOR THE DIVESTED INTEREST IN A PERSON ELIGIBLE TO APPLY FOR A

CATEGORY 1 LICENSE EXCEEDS THE GREATER OF THE ORIGINAL COST OF

THE INTEREST, THE BOOK VALUE OF THE INTEREST OR AN INDEPENDENTLY

ASSESSED VALUE OF THE INTEREST ONE MONTH PRIOR TO THE EFFECTIVE

DATE OF THIS PART AND, IN THE CASE OF A PERSON ELIGIBLE TO APPLY

FOR A CATEGORY 1 LICENSE, UNLESS THE PERSON ACQUIRING THE

DIVESTED INTEREST IS REQUIRED TO CONTINUE CONDUCTING LIVE RACING

AT THE LOCATION WHERE LIVE RACING IS CURRENTLY BEING CONDUCTED

IN ACCORDANCE WITH SECTION 1303 (RELATING TO ADDITIONAL CATEGORY

1 SLOT MACHINE LICENSE REQUIREMENTS) AND BE APPROVED FOR A

CATEGORY 1 SLOT MACHINE LICENSE. NO SUCH SLOT MACHINE LICENSE

APPLICANT SHALL BE ISSUED A SLOT MACHINE LICENSE UNTIL THE

APPLICANT HAS COMPLETELY DIVESTED ITS OWNERSHIP OR FINANCIAL

INTEREST THAT IS IN EXCESS OF 33.3% IN ANOTHER SLOT MACHINE

LICENSEE OR PERSON ELIGIBLE TO APPLY FOR A CATEGORY 1 LICENSE,

ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY.]

SECTION 21. TITLE 4 IS AMENDED BY ADDING A SECTION TO READ:

§ 1330.1. UNDUE ECONOMIC CONCENTRATION PROHIBITED.

(A) GENERAL RULE.--NO SLOT MACHINE LICENSEE, ITS AFFILIATE,

20170HB0271PN1942 - 324 -

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY MAY POSSESS AN

OWNERSHIP OR FINANCIAL INTEREST OF ANOTHER SLOT MACHINE LICENSEE

OR PERSON ELIGIBLE TO APPLY FOR A CATEGORY 1 LICENSE, ITS

AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY IF THE

OWNERSHIP OR FINANCIAL INTEREST WOULD RESULT IN UNDUE ECONOMIC

CONCENTRATION IN THIS COMMONWEALTH.

(B) BOARD TO ESTABLISH CRITERIA.--THE BOARD SHALL ESTABLISH

THROUGH REGULATION CRITERIA FOR DETERMINING WHETHER THE ISSUANCE

OF A SLOT MACHINE LICENSE OR A CHANGE IN OWNERSHIP OR CONTROL OF

A SLOT MACHINE LICENSEE OCCURRING UNDER SECTION 1328 (RELATING

TO CHANGE IN OWNERSHIP OR CONTROL OF SLOT MACHINE LICENSEE)

CONSTITUTES UNDUE ECONOMIC CONCENTRATION. THE CRITERIA SHALL

INCLUDE:

(1) THE PERCENTAGE SHARE OF THE MARKET PRESENTLY

CONTROLLED BY THE APPLICANT.

(2) THE ESTIMATED INCREASE IN THE MARKET SHARE IF THE

APPLICANT IS ISSUED THE SLOT MACHINE LICENSE.

(3) THE RELATIVE POSITION OF OTHER SLOT MACHINE

LICENSEES.

(4) THE CURRENT AND PROJECTED FINANCIAL CONDITION OF THE

GAMING INDUSTRY IN THIS COMMONWEALTH.

(5) CURRENT MARKET CONDITIONS, INCLUDING LEVEL OF

COMPETITION, CONSUMER DEMAND, MARKET CONCENTRATION, ANY

CONSOLIDATION TRENDS IN THE INDUSTRY AND ANY OTHER RELEVANT

CHARACTERISTICS OF THE MARKET.

(6) WHETHER THE APPLICANT HAS SEPARATE ORGANIZATIONAL

STRUCTURES OR OTHER INDEPENDENT OBLIGATIONS.

(7) POTENTIAL IMPACT ON THE PROJECTED FUTURE GROWTH AND

DEVELOPMENT OF THE GAMING INDUSTRY IN THIS COMMONWEALTH.

(8) WHETHER THE ISSUANCE OR HOLDING OF THE SLOT MACHINE

20170HB0271PN1942 - 325 -

LICENSE BY THE APPLICANT WILL ADVERSELY IMPACT CONSUMER

INTERESTS.

(9) ANY OTHER CRITERIA THE BOARD MAY REQUIRE.

MACHINE LICENSE OR APPROVED FOR A CHANGE IN OWNERSHIP OR CONTROL

UNTIL THE APPLICANT HAS COMPLETELY DIVESTED A PORTION OF

OWNERSHIP OR FINANCIAL INTEREST OF ANOTHER SLOT MACHINE

LICENSEE. THE BOARD SHALL APPROVE THE TERMS AND CONDITIONS OF

ANY DIVESTITURE THAT MAY BE REQUIRED UNDER THIS SECTION.

(D) DEFINITION.--FOR THE PURPOSE OF THIS SECTION, "UNDUE

ECONOMIC CONCENTRATION" MEANS THAT A SLOT MACHINE LICENSEE, ITS

AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY WOULD

HAVE SUCH ACTUAL OR POTENTIAL DOMINATION OF THE GAMING MARKET IN

THIS COMMONWEALTH AS TO SUBSTANTIALLY IMPEDE OR SUPPRESS

COMPETITION AMONG SLOT MACHINE LICENSEES OR ADVERSELY IMPACT THE

ECONOMIC STABILITY OF THE GAMING INDUSTRY IN THIS COMMONWEALTH.

SECTION 22. SECTIONS 13A11(B), 13A22.1(C) AND 13A27(A) AND

§ 13A11. AUTHORIZATION TO CONDUCT TABLE GAMES.

* * *

(B) NUMBER OF AUTHORIZED GAMING TABLES.--

(1) A CATEGORY 1 AND CATEGORY 2 SLOT MACHINE LICENSEE

AWARDED A TABLE GAME OPERATION CERTIFICATE MAY OPERATE UP TO

250 GAMING TABLES AT ANY ONE TIME AT ITS LICENSED FACILITY.

NO MORE THAN 30% OF THESE GAMING TABLES MAY BE USED TO PLAY

NONBANKING GAMES AT ANY ONE TIME. SIX MONTHS FOLLOWING THE

DATE OF COMMENCEMENT OF TABLE GAME OPERATIONS, THE BOARD MAY

PERMIT A CATEGORY 1 OR CATEGORY 2 CERTIFICATE HOLDER TO

INCREASE THE NUMBER OF GAMING TABLES ABOVE THE NUMBER

AUTHORIZED UNDER THIS PARAGRAPH. THE CERTIFICATE HOLDER SHALL

20170HB0271PN1942 - 326 -

PETITION THE BOARD FOR THE INCREASE AT ITS LICENSED FACILITY.

THE BOARD, IN CONSIDERING THE PETITION, SHALL TAKE INTO

ACCOUNT THE APPROPRIATENESS OF THE PHYSICAL SPACE WHERE THE

GAMING TABLES WILL BE LOCATED AND THE CONVENIENCE OF THE

PUBLIC ATTENDING THE FACILITY. THE BOARD MAY ALSO TAKE INTO

ACCOUNT THE POTENTIAL BENEFIT TO THE COMMONWEALTH.

(2) A CATEGORY 3 SLOT MACHINE LICENSEE AWARDED A TABLE

GAME OPERATION CERTIFICATE MAY OPERATE UP TO 50 GAMING TABLES

AT ANY ONE TIME AT ITS LICENSED FACILITY. [NO MORE THAN 30%

OF THESE GAMING TABLES MAY BE USED TO PLAY NONBANKING GAMES

AT ANY ONE TIME.]

(2.1) A CATEGORY 3 SLOT MACHINE LICENSEE AWARDED A TABLE

GAME OPERATION CERTIFICATE MAY PETITION THE BOARD FOR

ADDITIONAL TABLE GAMES AT ITS LICENSED FACILITY. THE BOARD

MAY AUTHORIZE UP TO 15 ADDITIONAL GAMING TABLES. THE

ADDITIONAL TABLES SHALL BE USED TO PLAY NONBANKING GAMES. THE

BOARD, IN CONSIDERING THE PETITION, SHALL TAKE INTO ACCOUNT

THE APPROPRIATENESS OF THE PHYSICAL SPACE WHERE THE GAMING

TABLES WILL BE LOCATED AND THE CONVENIENCE OF THE PUBLIC

ATTENDING THE FACILITY. THE BOARD MAY ALSO TAKE INTO ACCOUNT

THE POTENTIAL BENEFIT TO THE COMMONWEALTH.

(3) NONBANKING GAMING TABLES SHALL SEAT A MAXIMUM OF TEN

PLAYERS.

§ 13A22.1. TABLE GAME TOURNAMENTS.

* * *

APPLY:

(1) FOR A CATEGORY 1 OR CATEGORY 2 LICENSED FACILITY,

GAMING TABLES USED IN TOURNAMENTS SHALL BE EXEMPT FROM

SECTION 13A11 (B)(1) (RELATING TO AUTHORIZATION TO CONDUCT

20170HB0271PN1942 - 327 -

TABLE GAMES) AND SHALL NOT BE USED IN ANY CALCULATION OF THE

TOTAL NUMBER OF GAMING TABLES AUTHORIZED IN THE TABLE GAME

AUTHORIZATION CERTIFICATE.

(2) FOR A CATEGORY 3 LICENSED FACILITY, THE EXECUTIVE

DIRECTOR MAY AUTHORIZE THE LICENSED FACILITY TO OPERATE UP TO

15 ADDITIONAL GAMING TABLES FOR USE IN TOURNAMENTS. [THE

EXECUTIVE DIRECTOR MAY GRANT THE USE OF THE ADDITIONAL GAMING

TABLES FOR TOURNAMENTS AUTHORIZED UNDER THIS PARAGRAPH ONLY

ONE DAY PER MONTH.] ADDITIONAL GAMING TABLES FOR USE IN

TOURNAMENTS AT A CATEGORY 3 LICENSED FACILITY SHALL BE EXEMPT

FROM SECTION 13A11(B)(2) AND SHALL NOT BE USED IN ANY

CALCULATION OF THE TOTAL NUMBER OF GAMING TABLES AUTHORIZED

IN THE TABLE GAME AUTHORIZATION CERTIFICATE. THE EXECUTIVE

DIRECTOR MAY GRANT THE USE OF ADDITIONAL GAMING TABLES ON THE

DATES AND TIMES LISTED IN THE PROPOSED SCHEDULE OF

TOURNAMENTS SUBMITTED BY THE CATEGORY 3 SLOT MACHINE LICENSEE

IN ACCORDANCE WITH SUBSECTION (B).

* * *

§ 13A27. OTHER FINANCIAL TRANSACTIONS.

(A) CREDIT.--

(1) 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.

20170HB0271PN1942 - 328 -

(2) 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 THAT ALLOWS OR FACILITATES THE FUNDING OF

A PREPAID ACCESS INSTRUMENT SHALL NOT BE DEEMED A CREDIT CARD

ADVANCE MACHINE UNDER THIS SECTION.

* * *

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 23. SECTION 13A41 OF TITLE 4 IS AMENDED BY ADDING A

SUBSECTION TO READ:

§ 13A41. TABLE GAME DEVICE AND ASSOCIATED EQUIPMENT TESTING AND

CERTIFICATION STANDARDS.

* * *

(B.1) USE OF PRIVATE TESTING AND CERTIFICATION FACILITIES.--

NOTWITHSTANDING ANY PROVISION OF THIS PART OR REGULATION OF THE

20170HB0271PN1942 - 329 -

BOARD, IF A TABLE GAME DEVICE OR ASSOCIATED EQUIPMENT IS TESTED

AND CERTIFIED BY A PRIVATE TESTING AND CERTIFICATION FACILITY

REGISTERED WITH THE BOARD, THE BOARD SHALL USE AN ABBREVIATED

CERTIFICATION PROCESS REQUIRING ONLY THAT INFORMATION DETERMINED

BY IT TO BE NECESSARY TO CONSIDER THE ISSUANCE OF A TABLE GAME

DEVICE OR ASSOCIATED EQUIPMENT CERTIFICATION UNDER THIS SECTION.

WITHIN ONE YEAR OF THE EFFECTIVE DATE OF THIS SUBSECTION, THE

BOARD SHALL PROMULGATE REGULATIONS THAT:

(1) PROVIDE FOR THE REGISTRATION OF PRIVATE TESTING AND

CERTIFICATION FACILITIES. PERSONS SEEKING REGISTRATION UNDER

THIS SUBSECTION SHALL BE SUBJECT TO SECTION 1202(B)(9)

(RELATING TO GENERAL AND SPECIFIC POWERS).

(2) SPECIFY THE FORM AND CONTENT OF THE APPLICATION FOR

REGISTRATION.

(3) ESTABLISH AND COLLECT AN APPLICATION FEE FOR PERSONS

SEEKING REGISTRATION. THE APPLICATION FEE SHALL INCLUDE THE

COSTS OF ALL BACKGROUND INVESTIGATIONS AS DETERMINED

NECESSARY AND APPROPRIATE BY THE BOARD.

(4) ESTABLISH UNIFORM PROCEDURES AND STANDARDS WHICH

PRIVATE TESTING AND CERTIFICATION FACILITIES MUST COMPLY WITH

DURING THE TESTING AND CERTIFICATION OF TABLE GAME DEVICES

AND ASSOCIATED EQUIPMENT.

(5) UTILIZE INFORMATION PROVIDED BY PRIVATE TESTING AND

CERTIFICATION FACILITIES FOR THE ABBREVIATED CERTIFICATION OF

TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT.

(6) ESTABLISH AN ABBREVIATED CERTIFICATION PROCESS THAT

MAY BE USED BY REGISTERED PRIVATE TESTING AND CERTIFICATION

FACILITIES TO TEST AND CERTIFY TABLE GAME DEVICES OR

ASSOCIATED EQUIPMENT.

(7) ESTABLISH FEES THAT MUST BE PAID BY A LICENSED

20170HB0271PN1942 - 330 -

MANUFACTURER.

(8) REQUIRE TABLE GAME DEVICES AND ASSOCIATED EQUIPMENT

SUBMITTED FOR ABBREVIATED CERTIFICATION TO BE APPROVED OR

DENIED BY THE BOARD WITHIN 30 DAYS FROM THE DATE OF

SUBMISSION TO THE BOARD. IF THE BOARD FAILS TO ACT WITHIN THE

30-DAY PERIOD, THE ABBREVIATED CERTIFICATION SHALL BE DEEMED

CONDITIONALLY APPROVED.

(9) PROVIDE PROCEDURES AND STANDARDS FOR THE SUSPENSION

AND REVOCATION OF THE REGISTRATION OF A PRIVATE TESTING AND

CERTIFICATION FACILITY AND THE REINSTATEMENT OF A SUSPENDED

OR REVOKED REGISTRATION.

SECTION 23.1. SECTION 13A61(A) OF TITLE 4 IS AMENDED BY

ADDING A PARAGRAPH TO READ:

§ 13A61. TABLE GAME AUTHORIZATION FEE.

(A) AMOUNT OF AUTHORIZATION FEE.--

* * *

(3.1) NOTWITHSTANDING ANY OTHER PROVISION OF THIS PART,

NO LATER THAN 60 DAYS AFTER THE BOARD APPROVES A REQUEST FOR

ADDITIONAL TABLE GAMES IN ACCORDANCE WITH SECTION 13A11

(RELATING TO AUTHORIZATION TO CONDUCT TABLE GAMES) SUBMITTED

BY A CATEGORY 3 SLOT MACHINE LICENSEE, THE CATEGORY 3 SLOT

MACHINE LICENSEE SHALL PAY A ONE-TIME NONREFUNDABLE FEE IN

THE AMOUNT OF $1,000,000. THE FEE SHALL BE DEPOSITED INTO THE

GENERAL FUND.

* * *

SECTION 24. SECTION 13A63(B)(3)(III)(C) AND (4) OF TITLE 4

ARE AMENDED TO READ:

§ 13A63. LOCAL SHARE ASSESSMENT.

* * *

(B) DISTRIBUTIONS TO COUNTIES.--THE DEPARTMENT SHALL MAKE

20170HB0271PN1942 - 331 -

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:

* * *

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 NONHOST 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%

20170HB0271PN1942 - 332 -

OF THE LICENSED FACILITY'S LOCAL SHARE ASSESSMENT SHALL

BE [DEPOSITED INTO A RESTRICTED RECEIPTS ACCOUNT TO BE

ESTABLISHED IN THE COMMONWEALTH FINANCING AUTHORITY TO BE

USED EXCLUSIVELY FOR GRANTS OR GUARANTEES FOR PROJECTS IN

THE COUNTY THAT QUALIFY UNDER 64 PA.C.S. §§ 1551

(RELATING TO BUSINESS IN OUR SITES PROGRAM), 1556

(RELATING TO TAX INCREMENT FINANCING GUARANTEE PROGRAM)

AND 1558 (RELATING TO WATER SUPPLY AND WASTE WATER

INFRASTRUCTURE PROGRAM).] DISTRIBUTED AS FOLLOWS:

(A) SEVENTY-FIVE PERCENT SHALL BE DISTRIBUTED TO

THE COUNTY HOSTING THE LICENSED FACILITY FROM EACH

SUCH LICENSED FACILITY FOR THE PURPOSE OF SUPPORTING

THE MAINTENANCE AND REFURBISHMENT OF THE PARKS AND

HERITAGE SITES THROUGHOUT THE COUNTY IN WHICH THE

LICENSEE IS LOCATED.

(B) TWELVE AND ONE-HALF PERCENT SHALL BE

DISTRIBUTED TO THE COUNTY HOSTING THE LICENSED

FACILITY FROM EACH SUCH LICENSED FACILITY FOR THE

PURPOSE OF SUPPORTING A CHILD ADVOCACY CENTER LOCATED

WITHIN THE COUNTY IN WHICH THE LICENSEE IS LOCATED.

DISTRIBUTED TO THE COUNTY HOSTING THE LICENSED

FACILITY FROM EACH SUCH LICENSED FACILITY FOR THE

PURPOSE OF SUPPORTING AN ORGANIZATION PROVIDING

COMPREHENSIVE SUPPORT SERVICES TO VICTIMS OF DOMESTIC

VIOLENCE, INCLUDING LEGAL AND MEDICAL AID, SHELTERS,

TRANSITIONAL HOUSING AND COUNSELING LOCATED WITHIN

THE COUNTY IN WHICH THE LICENSEE IS LOCATED.

(II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (I), IF THE

FACILITY IS A CATEGORY 3 LICENSED FACILITY IN A COUNTY OF

20170HB0271PN1942 - 333 -

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 25. TITLE 4 IS AMENDED BY ADDING CHAPTERS TO READ:

CHAPTER 13B

INTERACTIVE GAMING

SUBCHAPTER

A. GENERAL PROVISIONS

B. INTERACTIVE GAMING AUTHORIZED

B.1. MULTI-USE COMPUTING DEVICES

C. CONDUCT OF INTERACTIVE GAMING

D. FACILITIES AND EQUIPMENT

E. TESTING AND CERTIFICATION

F. TAXES AND FEES

G. MISCELLANEOUS PROVISIONS

SUBCHAPTER A

GENERAL PROVISIONS

SEC.

13B01. (RESERVED).

13B02. REGULATORY AUTHORITY.

13B03. REGULATIONS.

§ 13B01. (RESERVED).

§ 13B02. REGULATORY AUTHORITY.

(A) AUTHORITY.--THE BOARD SHALL PROMULGATE AND ADOPT RULES

AND REGULATIONS TO GOVERN THE CONDUCT OF INTERACTIVE GAMING IN

ORDER TO ENSURE THAT IT WILL BE IMPLEMENTED IN A MANNER THAT

PROVIDES FOR THE SECURITY AND EFFECTIVE MANAGEMENT,

ADMINISTRATION AND CONTROL OF INTERACTIVE GAMING, INCLUDING, BUT

20170HB0271PN1942 - 334 -

NOT LIMITED TO, REGULATIONS:

(1) ENSURING THAT INTERACTIVE GAMING IS OFFERED FOR PLAY

IN THIS COMMONWEALTH IN A MANNER THAT IS CONSISTENT WITH

FEDERAL LAW AND THE PROVISIONS OF THIS CHAPTER.

(2) ESTABLISHING STANDARDS AND PROCEDURES FOR TESTING

AND APPROVING INTERACTIVE GAMES AND INTERACTIVE GAMING

DEVICES AND ASSOCIATED EQUIPMENT, AND ANY VARIATIONS OR

COMPOSITES OF AUTHORIZED INTERACTIVE GAMES, PROVIDED THAT THE

BOARD DETERMINES THAT THE INTERACTIVE GAMES AND ANY NEW

INTERACTIVE GAMES OR ANY VARIATIONS OR COMPOSITES ARE

SUITABLE FOR USE AFTER A TEST OR EXPERIMENTAL PERIOD UNDER

ANY TERMS AND CONDITIONS AS THE BOARD MAY DEEM APPROPRIATE.

THE BOARD MAY GIVE PRIORITY TO THE TESTING OF INTERACTIVE

GAMES, INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT OR

OTHER GAMING EQUIPMENT WHICH A SLOT MACHINE LICENSEE OR AN

APPLICANT FOR AN INTERACTIVE GAMING LICENSE HAS CERTIFIED

THAT IT WILL USE TO CONDUCT INTERACTIVE GAMING IN THIS

COMMONWEALTH. NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO

PROHIBIT THE BOARD FROM USING THE TESTING AND CERTIFICATION

STANDARDS OF ANOTHER STATE OR JURISDICTION IN WHICH

INTERACTIVE GAMING IS CONDUCTED, IF IT DETERMINES THAT THE

STANDARDS OF THE JURISDICTION ARE COMPREHENSIVE, THOROUGH AND

PROVIDE SIMILAR AND ADEQUATE SAFEGUARDS AS THOSE REQUIRED

UNDER THIS PART. IF THE BOARD MAKES SUCH A DETERMINATION AND

THE SLOT MACHINE LICENSEE OR APPLICANT FOR AN INTERACTIVE

GAMING LICENSE IS LICENSED IN ANOTHER STATE OR JURISDICTION

TO OPERATE INTERACTIVE GAMING OR AN INTERACTIVE GAMING

SYSTEM, IT MAY USE AN ABBREVIATED PROCESS REQUIRING ONLY THE

INFORMATION DETERMINED BY IT TO BE NECESSARY TO CONSIDER THE

ISSUANCE OF AN INTERACTIVE GAMING CERTIFICATE OR INTERACTIVE

20170HB0271PN1942 - 335 -

GAMING LICENSE UNDER THIS CHAPTER. THE BOARD, IN ITS

DISCRETION, MAY ALSO RELY UPON THE CERTIFICATION OF

INTERACTIVE GAMES THAT HAVE MET THE TESTING AND CERTIFICATION

STANDARDS OF A BOARD-APPROVED PRIVATE TESTING AND

CERTIFICATION FACILITY.

(3) ESTABLISHING STANDARDS AND RULES TO GOVERN THE

CONDUCT OF INTERACTIVE GAMING AND THE SYSTEM OF AND WAGERING

ASSOCIATED WITH INTERACTIVE GAMING, INCLUDING INTERNAL

CONTROLS AND ACCOUNTING CONTROLS, AND THE TYPE, NUMBER,

PAYOUT, WAGERING LIMITS AND RULES FOR INTERACTIVE GAMES.

(4) ESTABLISHING THE METHOD FOR CALCULATING GROSS

INTERACTIVE GAMING REVENUE AND STANDARDS FOR THE DAILY

COUNTING AND RECORDING OF CASH AND CASH EQUIVALENTS RECEIVED

IN THE CONDUCT OF AUTHORIZED INTERACTIVE GAMES AND ENSURE

THAT INTERNAL CONTROLS AND ACCOUNTING CONTROLS ARE FOLLOWED,

INCLUDING THE MAINTENANCE OF FINANCIAL BOOKS AND RECORDS AND

THE CONDUCT OF AUDITS. THE BOARD SHALL CONSULT WITH THE

DEPARTMENT IN ESTABLISHING THESE REGULATIONS.

(5) ESTABLISHING NOTICE REQUIREMENTS PERTAINING TO

MINIMUM AND MAXIMUM WAGERS ON AUTHORIZED INTERACTIVE GAMES.

(6) ENSURING THAT ALL FACILITIES AND INTERACTIVE GAMING

DEVICES AND ASSOCIATED EQUIPMENT ARE ARRANGED IN A MANNER TO

PROMOTE APPROPRIATE SECURITY FOR INTERACTIVE GAMING.

(7) ESTABLISHING TECHNICAL STANDARDS FOR THE APPROVAL OF

INTERACTIVE GAMES, INTERACTIVE GAMING DEVICES AND ASSOCIATED

EQUIPMENT, INCLUDING MECHANICAL, ELECTRICAL OR PROGRAM

RELIABILITY, SECURITY AGAINST TAMPERING AND ANY OTHER

STANDARDS AS IT MAY DEEM NECESSARY TO PROTECT REGISTERED

PLAYERS FROM FRAUD OR DECEPTION.

(8) GOVERNING THE CREATION, OWNERSHIP AND UTILIZATION OF

20170HB0271PN1942 - 336 -

INTERACTIVE GAMING ACCOUNTS BY REGISTERED PLAYERS, INCLUDING

THE FOLLOWING:

(I) REQUIRING THAT AN INTERACTIVE GAMING ACCOUNT BE

CREATED, OWNED AND UTILIZED BY A NATURAL PERSON AND NOT

IN THE NAME OF ANY BENEFICIARY, CUSTODIAN, JOINT TRUST,

CORPORATION, PARTNERSHIP OR OTHER ORGANIZATION OR ENTITY.

(II) PROHIBITING THE ASSIGNMENT OR OTHER TRANSFER OF

AN INTERACTIVE GAMING ACCOUNT.

(III) PROHIBITING THE CREATION, OWNERSHIP OR

UTILIZATION OF AN INTERACTIVE GAMING ACCOUNT BY AN

INDIVIDUAL UNDER 21 YEARS OF AGE.

(9) ESTABLISHING PROCEDURES FOR A REGISTERED PLAYER TO

LOG INTO THE REGISTERED PLAYER'S INTERACTIVE GAMING ACCOUNT,

AUTHENTICATE THE REGISTERED PLAYER'S IDENTITY, AGREE TO

TERMS, CONDITIONS AND RULES APPLICABLE TO AUTHORIZED

INTERACTIVE GAMES AND LOG OUT OF THE REGISTERED PLAYER'S

INTERACTIVE GAMING ACCOUNT, INCLUDING PROCEDURES FOR

AUTOMATICALLY LOGGING OFF A REGISTERED PLAYER 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 AN INTERACTIVE

GAMING ACCOUNT.

(III) THE SUSPENSION OF INTERACTIVE GAMING ACCOUNT

ACTIVITY FOR SECURITY REASONS.

(IV) THE TERMINATION OF AN INTERACTIVE GAMING

ACCOUNT AND DISPOSITION OF FUNDS IN THE ACCOUNT.

(V) THE DISPOSITION OF UNCLAIMED FUNDS IN A DORMANT

20170HB0271PN1942 - 337 -

INTERACTIVE GAMING ACCOUNT.

(11) ESTABLISHING MECHANISMS BY WHICH A REGISTERED

PLAYER MAY PLACE A LIMIT ON THE AMOUNT OF MONEY BEING WAGERED

ON AN AUTHORIZED INTERACTIVE GAME OR DURING ANY SPECIFIED

TIME PERIOD OR THE AMOUNT OF MONEY LOST DURING ANY SPECIFIED

TIME PERIOD.

(12) ESTABLISHING MECHANISMS TO EXCLUDE FROM INTERACTIVE

GAMING PERSONS NOT ELIGIBLE TO PLAY BY REASON OF AGE,

IDENTITY OR LOCATION OR INCLUSION ON A LIST OF PERSONS DENIED

ACCESS TO INTERACTIVE GAMING ACTIVITIES IN ACCORDANCE WITH

SECTIONS 1514 (RELATING TO REGULATION REQUIRING EXCLUSION,

EJECTION OR DENIAL OF ACCESS OF CERTAIN PERSONS), 1515

(RELATING TO REPEAT OFFENDERS EXCLUDABLE FROM LICENSED GAMING

FACILITY) AND 1516 (RELATING TO LIST OF PERSONS SELF EXCLUDED

FROM GAMING ACTIVITIES).

(13) ESTABLISHING PROCEDURES FOR THE PROTECTION,

SECURITY AND RELIABILITY OF INTERACTIVE GAMING ACCOUNTS,

AUTHORIZED INTERACTIVE GAMES, INTERACTIVE GAMING DEVICES AND

ASSOCIATED EQUIPMENT AND MECHANISMS TO PREVENT TAMPERING OR

UTILIZATION BY UNAUTHORIZED PERSONS.

(14) ESTABLISHING DATA SECURITY STANDARDS TO GOVERN AGE,

IDENTITY AND LOCATION VERIFICATION OF PERSONS ENGAGED IN

INTERACTIVE GAMING ACTIVITY.

(15) REQUIRING EACH INTERACTIVE GAMING CERTIFICATE

HOLDER TO:

(I) PROVIDE WRITTEN INFORMATION ON ITS INTERACTIVE

GAMING SKIN OR INTERNET WEBSITE, WHICH EXPLAINS THE RULES

FOR EACH AUTHORIZED INTERACTIVE GAME, PAYOFFS OR WINNING

WAGERS AND OTHER INFORMATION AS THE BOARD MAY REQUIRE.

(II) DESIGNATE ONE OR MORE INTERACTIVE GAMING

20170HB0271PN1942 - 338 -

RESTRICTED AREAS WHERE INTERACTIVE GAMING WILL BE

MANAGED, ADMINISTERED OR CONTROLLED.

(III) PROVIDE THE BOARD WITH ACCESS TO THE

INTERACTIVE GAMING SKIN OR WEBSITE, INTERACTIVE GAMING

PLATFORM, SIGNAL OR TRANSMISSION USED IN CONNECTION WITH

INTERACTIVE GAMING AND INTERACTIVE GAMING RESTRICTED

AREAS.

(IV) ADOPT PROCEDURES FOR THE RECORDATION,

REPLICATION AND STORAGE OF ALL PLAY AND TRANSACTIONS FOR

A PERIOD TO BE DETERMINED BY THE BOARD.

(V) PROVIDE STATEMENTS ON ITS INTERACTIVE GAMING

SKIN OR WEBSITE ABOUT THE PERMISSIBLE MINIMUM AND MAXIMUM

WAGERS FOR EACH AUTHORIZED INTERACTIVE GAME, AS

APPLICABLE.

(VI) ADOPT POLICIES OR PROCEDURES TO PROHIBIT ANY

UNAUTHORIZED PERSON FROM HAVING ACCESS TO INTERACTIVE

GAMING DEVICES AND ASSOCIATED EQUIPMENT.

(VII) ADOPT DATA SECURITY STANDARDS TO VERIFY THE

AGE, IDENTITY AND LOCATION OF PERSONS ENGAGED IN

INTERACTIVE GAMING AND PREVENT UNAUTHORIZED ACCESS BY ANY

PERSON WHOSE AGE, IDENTITY AND LOCATION HAVE NOT BEEN

VERIFIED OR WHOSE AGE, IDENTITY AND LOCATION CANNOT BE

VERIFIED IN ACCORDANCE WITH 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, RECORDS AND

DOCUMENTS RELATED TO THE INTERACTIVE GAMING CERTIFICATE

20170HB0271PN1942 - 339 -

HOLDER'S INTERACTIVE GAMING ACTIVITIES IN A MANNER AND IN

A LOCATION WITHIN THIS COMMONWEALTH AS APPROVED BY THE

BOARD OR THE DEPARTMENT. ALL BOOKS, RECORDS AND DOCUMENTS

SHALL BE IMMEDIATELY AVAILABLE FOR INSPECTION DURING ALL

HOURS OF OPERATION IN ACCORDANCE WITH THE REGULATIONS OF

THE BOARD AND SHALL BE MAINTAINED IN A MANNER AND DURING

PERIODS OF TIME AS THE BOARD SHALL BY REGULATION REQUIRE.

(B) ADDITIONAL AUTHORITY.--

(1) AT ITS DISCRETION, THE BOARD MAY DETERMINE WHETHER

PERSONS THAT PROVIDE THE FOLLOWING GOODS OR SERVICES SHALL BE

REQUIRED TO OBTAIN A LICENSE, PERMIT OR OTHER AUTHORIZATION:

(I) PAYMENT PROCESSING AND RELATED MONEY

TRANSMITTING AND SERVICES.

(II) IDENTITY, LOCATION OR AGE VERIFICATION AND

GEOSPATIAL TECHNOLOGY SERVICES.

(III) GENERAL TELECOMMUNICATIONS SERVICES, WHICH ARE

NOT SPECIFICALLY DESIGNED FOR OR RELATED TO INTERACTIVE

GAMING.

(IV) OTHER GOODS OR SERVICES THAT ARE NOT

SPECIFICALLY DESIGNED FOR USE WITH INTERACTIVE GAMING IF

THE PERSONS PROVIDING THE GOODS OR SERVICES ARE NOT PAID

A PERCENTAGE OF GAMING REVENUE OR OF MONEY WAGERED ON

INTERACTIVE GAMES OR OF ANY FEES, NOT INCLUDING FEES TO

FINANCIAL INSTITUTIONS AND PAYMENT PROVIDERS FOR

FACILITATING A DEPOSIT BY AN INTERACTIVE GAMING ACCOUNT

HOLDER.

(V) ANY OTHER GOODS OR SERVICES RELATED TO

INTERACTIVE GAMING AS THE BOARD MAY DETERMINE.

(2) THE BOARD SHALL DEVELOP A CLASSIFICATION SYSTEM FOR

THE LICENSURE, PERMITTING OR OTHER AUTHORIZATION OF PERSONS

20170HB0271PN1942 - 340 -

THAT PROVIDE THE FOLLOWING GOODS OR SERVICES RELATED TO

INTERACTIVE GAMING:

(I) PERSONS THAT PROVIDE INTERACTIVE GAMES AND

INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT.

(II) PERSONS THAT MANAGE, CONTROL OR ADMINISTER THE

INTERACTIVE GAMES OR THE WAGERS ASSOCIATED WITH

INTERACTIVE GAMES.

(III) PROVIDERS OF CUSTOMER LISTS COMPRISED OF

PERSONS IDENTIFIED OR SELECTED, IN WHOLE OR IN PART,

BECAUSE THEY PLACED OR MAY PLACE WAGERS ON INTERACTIVE

GAMING.

§ 13B03. REGULATIONS.

(A) PROMULGATION.--

(1) IN ORDER TO FACILITATE THE PROMPT IMPLEMENTATION OF

THIS CHAPTER, THE BOARD SHALL HAVE THE AUTHORITY TO

PROMULGATE 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) PUBLICATIONS.--THE BOARD SHALL BEGIN PUBLISHING

20170HB0271PN1942 - 341 -

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, IDENTITY AND LOCATION VERIFICATION

SOFTWARE OR SYSTEM PROGRAMS AND SECURITY AND SURVEILLANCE

STANDARDS IN THE PENNSYLVANIA BULLETIN WITHIN 30 DAYS OF THE

EFFECTIVE DATE OF THIS SUBSECTION.

TEMPORARY REGULATIONS GOVERNING THE RULES FOR ISSUING

CERTIFICATES AND LICENSES UNDER THIS CHAPTER, FOR NEW

INTERACTIVE GAMES, FOR APPROVING INTERACTIVE GAMES OR VARIATIONS

THEREOF, INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT AND

FOR APPROVING MANUFACTURERS, SUPPLIERS AND OTHER PERSONS SEEKING

TO PROVIDE INTERACTIVE GAMES, INTERACTIVE GAMING DEVICES AND

ASSOCIATED EQUIPMENT, THE BOARD'S AUTHORITY TO ADOPT TEMPORARY

REGULATIONS UNDER SUBSECTION (A) SHALL EXPIRE TWO YEARS AFTER

THE EFFECTIVE DATE OF THIS SECTION. REGULATIONS ADOPTED AFTER

THIS PERIOD SHALL BE PROMULGATED AS PROVIDED BY LAW.

SUBCHAPTER B

INTERACTIVE GAMING AUTHORIZED

SEC.

13B11. AUTHORIZATION TO CONDUCT INTERACTIVE GAMING.

13B12. INTERACTIVE GAMING CERTIFICATE REQUIRED AND CONTENT OF

PETITION.

13B13. ISSUANCE OF INTERACTIVE GAMING CERTIFICATE.

13B14. INTERACTIVE GAMING OPERATORS.

13B15. INTERACTIVE GAMING CERTIFICATE AND INTERACTIVE GAMING

LICENSE.

20170HB0271PN1942 - 342 -

13B16. TIMING OF INITIAL INTERACTIVE GAMING AUTHORIZATIONS.

§ 13B11. AUTHORIZATION TO CONDUCT INTERACTIVE GAMING.

(A) AUTHORITY OF BOARD.--THE BOARD MAY AUTHORIZE A SLOT

MACHINE LICENSEE:

(1) TO CONDUCT INTERACTIVE GAMING DIRECTLY OR THROUGH AN

INTERACTIVE GAMING OPERATOR UNDER AN INTERACTIVE GAMING

AGREEMENT, INCLUDING CONTESTS AND TOURNAMENTS AND ANY OTHER

GAME WHICH IS DETERMINED BY THE BOARD TO BE SUITABLE FOR

INTERACTIVE GAMING.

(2) TO DEPLOY INTERACTIVE GAMING SKINS OR INTERNET

WEBSITES TO FACILITATE THE CONDUCT OF INTERACTIVE GAMING

ACTIVITIES.

(B) AUTHORITY TO PLAY INTERACTIVE GAMES.--NOTWITHSTANDING

ANY OTHER PROVISION OF LAW, AN INDIVIDUAL WHO IS 21 YEARS OF AGE

OR OLDER IS HEREBY PERMITTED TO PARTICIPATE AS A REGISTERED

PLAYER IN INTERACTIVE GAMING AND WAGERING ASSOCIATED WITH

PLAYING AN AUTHORIZED INTERACTIVE GAME OFFERED BY AN INTERACTIVE

GAMING CERTIFICATE HOLDER IN ACCORDANCE WITH THIS CHAPTER AND

REGULATIONS OF THE BOARD. EXCEPT AS PROVIDED IN SUBCHAPTER G

(RELATING TO MISCELLANEOUS PROVISIONS), A REGISTERED PLAYER MUST

BE PHYSICALLY LOCATED WITHIN THIS COMMONWEALTH IN ORDER TO

PARTICIPATE IN INTERACTIVE GAMING.

§ 13B12. INTERACTIVE GAMING CERTIFICATE REQUIRED AND CONTENT OF

PETITION.

(A) CERTIFICATE REQUIRED.--NO PERSON SHALL OPERATE OR

CONDUCT OR ATTEMPT TO OPERATE OR CONDUCT INTERACTIVE GAMING,

EXCEPT FOR TEST PURPOSES AS APPROVED BY THE BOARD, OR OFFER OPEN

INTERACTIVE GAMING FOR PLAY BY THE PUBLIC IN THIS COMMONWEALTH

WITHOUT FIRST OBTAINING AN INTERACTIVE GAMING CERTIFICATE OR AN

INTERACTIVE GAMING LICENSE FROM THE BOARD. A SLOT MACHINE

20170HB0271PN1942 - 343 -

LICENSEE MAY SEEK APPROVAL TO CONDUCT INTERACTIVE GAMING BY

FILING A PETITION FOR AN INTERACTIVE GAMING CERTIFICATE WITH THE

BOARD. THE BOARD SHALL PRESCRIBE THE FORM AND THE MANNER IN

WHICH IT SHALL BE FILED.

(B) CONTENT OF PETITION.--IN ADDITION TO INFORMATION AND

DOCUMENTATION DEMONSTRATING THAT THE SLOT MACHINE LICENSEE IS

QUALIFIED FOR AN INTERACTIVE GAMING CERTIFICATE UNDER THIS

CHAPTER, A PETITION FOR AN INTERACTIVE GAMING CERTIFICATE SHALL

INCLUDE THE FOLLOWING:

(1) THE NAME, BUSINESS ADDRESS AND CONTACT INFORMATION

OF THE SLOT MACHINE LICENSEE.

(2) THE NAME, BUSINESS ADDRESS AND CONTACT INFORMATION

OF ANY AFFILIATE OR OTHER PERSON THAT WILL BE A PARTY TO AN

AGREEMENT WITH THE SLOT MACHINE LICENSEE RELATED TO THE

OPERATION OF INTERACTIVE GAMING OR AN INTERACTIVE GAMING

SYSTEM ON BEHALF OF THE SLOT MACHINE LICENSEE, INCLUDING A

PERSON APPLYING FOR AN INTERACTIVE GAMING LICENSE.

(3) THE NAME AND BUSINESS ADDRESS, JOB TITLE AND A

PHOTOGRAPH OF EACH PRINCIPAL AND KEY EMPLOYEE OF THE SLOT

MACHINE LICENSEE WHO WILL BE INVOLVED IN THE CONDUCT OF

INTERACTIVE GAMING, WHETHER OR NOT THE PRINCIPAL OR KEY

EMPLOYEE IS 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 OPERATOR, IF ANY, WHO WILL CONDUCT

INTERACTIVE GAMING OR AN INTERACTIVE GAMING SYSTEM ON BEHALF

OF THE SLOT MACHINE LICENSEE, WHETHER OR NOT THE PRINCIPAL OR

KEY EMPLOYEE IS CURRENTLY LICENSED BY THE BOARD, IF KNOWN .

(5) AN ITEMIZED LIST OF THE INTERACTIVE GAMES AND ANY

OTHER GAME OR GAMES THE SLOT MACHINE LICENSEE PLANS TO OFFER

20170HB0271PN1942 - 344 -

OVER THE INTERNET FOR WHICH AUTHORIZATION IS BEING SOUGHT.

THE SLOT MACHINE LICENSEE SHALL, IN ACCORDANCE WITH

REGULATIONS PROMULGATED BY THE BOARD, FILE WITH THE BOARD ANY

CHANGES IN THE NUMBER OF AUTHORIZED INTERACTIVE GAMES OFFERED

THROUGH INTERACTIVE GAMING.

(6) THE ESTIMATED NUMBER OF FULL-TIME AND PART-TIME

EMPLOYMENT POSITIONS THAT WILL BE CREATED AT THE SLOT MACHINE

LICENSEE'S LICENSED FACILITY OR AT ANY INTERACTIVE GAMING

RESTRICTED AREA IF AN INTERACTIVE GAMING CERTIFICATE IS

ISSUED AND AN UPDATED HIRING PLAN UNDER SECTION 1510(A)

(RELATING TO LABOR HIRING PREFERENCES) WHICH OUTLINES THE

SLOT MACHINE LICENSEE'S PLAN TO PROMOTE THE REPRESENTATION OF

DIVERSE GROUPS AND COMMONWEALTH RESIDENTS IN THE EMPLOYMENT

POSITIONS.

(7) A BRIEF DESCRIPTION OF THE ECONOMIC BENEFITS

EXPECTED TO BE REALIZED BY THE COMMONWEALTH, THE HOST

MUNICIPALITIES AND RESIDENTS IF AN INTERACTIVE GAMING

CERTIFICATE IS ISSUED.

(8) THE DETAILS OF ANY FINANCING OBTAINED OR THAT WILL

BE OBTAINED TO FUND AN EXPANSION OR MODIFICATION OF THE SLOT

MACHINE LICENSEE'S LICENSED FACILITY TO ACCOMMODATE

INTERACTIVE GAMING AND TO OTHERWISE FUND THE COST OF

COMMENCING INTERACTIVE GAMING.

(9) INFORMATION AND DOCUMENTATION CONCERNING FINANCIAL

BACKGROUND AND RESOURCES, AS THE BOARD MAY REQUIRE, TO

ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THE FINANCIAL

STABILITY, INTEGRITY AND RESPONSIBILITY OF THE SLOT MACHINE

LICENSEE, AND INFORMATION OR DOCUMENTATION CONCERNING ANY

PERSON THAT WILL OPERATE INTERACTIVE GAMING OR AN INTERACTIVE

GAMING SYSTEM ON BEHALF OF THE SLOT MACHINE LICENSEE AS AN

20170HB0271PN1942 - 345 -

INTERACTIVE GAMING OPERATOR, AS THE BOARD MAY REQUIRE. THE

INTERACTIVE GAMING AGREEMENT WITH SUCH PERSON SHALL BE

SUBJECT TO THE REVIEW AND APPROVAL OF THE BOARD.

(10) INFORMATION AND DOCUMENTATION, AS THE BOARD MAY

REQUIRE, TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT

THE SLOT MACHINE LICENSEE HAS SUFFICIENT BUSINESS ABILITY AND

EXPERIENCE TO CONDUCT A SUCCESSFUL INTERACTIVE GAMING

OPERATION. IN MAKING THIS DETERMINATION, THE BOARD MAY

CONSIDER THE RESULTS OF THE SLOT MACHINE LICENSEE'S SLOT

MACHINE AND TABLE GAME OPERATIONS, INCLUDING FINANCIAL

INFORMATION, EMPLOYMENT DATA AND CAPITAL INVESTMENT.

(11) INFORMATION AND DOCUMENTATION, AS THE BOARD MAY

REQUIRE, TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT

THE SLOT MACHINE LICENSEE HAS OR WILL HAVE THE FINANCIAL

ABILITY TO PAY THE INTERACTIVE GAMING AUTHORIZATION FEE.

(12) DETAILED SITE PLANS IDENTIFYING THE PROPOSED

INTERACTIVE GAMING RESTRICTED AREA WHERE INTERACTIVE GAMING

OPERATIONS WILL BE MANAGED, ADMINISTERED OR CONTROLLED AS

APPROVED BY THE BOARD.

(13) A DETAILED DESCRIPTION OF ALL OF THE FOLLOWING:

(I) THE SLOT MACHINE LICENSEE'S INITIAL SYSTEM OF

INTERNAL AND ACCOUNTING CONTROLS APPLICABLE TO

INTERACTIVE GAMING.

(II) THE SLOT MACHINE LICENSEE'S PROPOSED STANDARDS

TO PROTECT, WITH A REASONABLE DEGREE OF CERTAINTY, THE

PRIVACY AND SECURITY OF ITS REGISTERED PLAYERS.

(III) HOW THE SLOT MACHINE LICENSEE WILL FACILITATE

COMPLIANCE WITH ALL OF THE REQUIREMENTS SET FORTH IN THIS

CHAPTER AND IN SECTION 802(A) OF THE UNLAWFUL INTERNET

GAMBLING ENFORCEMENT ACT OF 2006 (PUBLIC LAW 109-347, 31

20170HB0271PN1942 - 346 -

U.S.C. § 5362(10)(B)), INCLUDING, BUT NOT LIMITED TO, ALL

OF THE FOLLOWING:

(A) AGE, IDENTITY AND LOCATION VERIFICATION

REQUIREMENTS.

(B) APPROPRIATE DATA SECURITY STANDARDS TO

PREVENT UNAUTHORIZED ACCESS BY ANY PERSON WHOSE AGE,

IDENTITY OR LOCATION HAVE NOT BEEN VERIFIED OR CANNOT

BE VERIFIED IN ACCORDANCE WITH THIS CHAPTER AND

APPLICABLE REGULATIONS OF THE BOARD.

TO MISCELLANEOUS PROVISIONS), 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 PROPOSED AGE,

IDENTITY AND LOCATION VERIFICATION STANDARDS DESIGNED TO

BLOCK ACCESS TO PERSONS UNDER 21 YEARS OF AGE AND OTHER

PERSONS EXCLUDED OR PROHIBITED FROM PARTICIPATING IN

INTERACTIVE GAMING UNDER THIS CHAPTER.

(V) THE PROCEDURES THE SLOT MACHINE LICENSEE WILL

USE TO REGISTER INDIVIDUALS AS REGISTERED PLAYERS.

(VI) THE PROCEDURES THE SLOT MACHINE LICENSEE WILL

USE TO ESTABLISH INTERACTIVE GAMING ACCOUNTS FOR

REGISTERED PLAYERS.

(VII) THE INTERACTIVE GAMES AND SERVICES THE SLOT

MACHINE LICENSEE PROPOSES TO OFFER TO REGISTERED PLAYERS.

(VIII) DOCUMENTATION AND INFORMATION RELATING TO

KNOWN PROPOSED CONTRACTORS OF THE SLOT MACHINE LICENSEE

AND SUBCONTRACTORS OF THE CONTRACTORS.

(14) THE INTERACTIVE GAMING DEVICES AND ASSOCIATED

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EQUIPMENT AND INTERACTIVE GAMING SYSTEM OR SYSTEMS, THAT THE

SLOT MACHINE LICENSEE PLANS TO OR WILL UTILIZE TO MANAGE,

ADMINISTER OR CONTROL ITS INTERACTIVE GAMING OPERATIONS.

(15) COMPLIANCE CERTIFICATION OF THE SLOT MACHINE

LICENSEE'S PROPOSED 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

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 TO PROTECT

THE INTERACTIVE GAMING SKINS OR INTERNET WEBSITE FROM

INTERNAL AND EXTERNAL BREACHES AND THREATS.

(18) ANY OTHER INFORMATION THE BOARD MAY REQUIRE.

UNDER SUBSECTION (B) MAY BE CONSIDERED CONFIDENTIAL BY THE BOARD

IF THE INFORMATION WOULD BE CONFIDENTIAL UNDER SECTION 1206(F)

(RELATING TO BOARD MINUTES AND RECORDS).

§ 13B13. ISSUANCE OF INTERACTIVE GAMING CERTIFICATE.

(A) REQUIREMENTS FOR APPROVAL OF PETITION.--

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(1) THE BOARD MAY APPROVE A PETITION UNDER SECTION 13B12

(RELATING TO INTERACTIVE GAMING CERTIFICATE REQUIRED AND

CONTENT OF PETITION) UPON FINDING CLEAR AND CONVINCING

EVIDENCE OF ALL OF THE FOLLOWING:

(I) THE SLOT MACHINE LICENSEE'S PROPOSED 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 EXCLUDED OR

PROHIBITED FROM ENGAGING IN INTERACTIVE GAMING IN

ACCORDANCE WITH THIS CHAPTER, AS APPROVED BY THE BOARD,

HAVE BEEN IMPLEMENTED BY THE SLOT MACHINE LICENSEE.

(III) THE SLOT MACHINE LICENSEE HAS IMPLEMENTED OR

WILL IMPLEMENT APPROPRIATE DATA SECURITY STANDARDS TO

PREVENT UNAUTHORIZED ACCESS BY ANY PERSON WHOSE AGE,

IDENTITY AND LOCATION HAS NOT BEEN VERIFIED OR CANNOT BE

VERIFIED IN ACCORDANCE WITH THE REGULATIONS PROMULGATED

BY THE BOARD.

(IV) THE SLOT MACHINE LICENSEE HAS IMPLEMENTED OR

WILL IMPLEMENT APPROPRIATE STANDARDS TO PROTECT THE

PRIVACY AND SECURITY OF REGISTERED PLAYERS WITH A

REASONABLE DEGREE OF CERTAINTY.

(V) THE SLOT MACHINE LICENSEE'S INITIAL SYSTEM OF

INTERNAL AND ACCOUNTING CONTROLS APPLICABLE TO

INTERACTIVE GAMING, AND THE SECURITY AND INTEGRITY OF ALL

FINANCIAL TRANSACTIONS IN CONNECTION WITH THE SYSTEM,

COMPLIES WITH THIS CHAPTER AND REGULATIONS PROMULGATED BY

THE BOARD.

20170HB0271PN1942 - 349 -

(VI) THE SLOT MACHINE LICENSEE IS IN GOOD STANDING

WITH THE BOARD.

(VII) THE SLOT MACHINE LICENSEE AGREES THAT THE

NUMBER OF SLOT MACHINES AND TABLE GAMES IN OPERATION AT

ITS LICENSED FACILITY, AS OF THE EFFECTIVE DATE OF THIS

SECTION, WILL NOT BE REDUCED AS A RESULT OF THE

AUTHORIZATION AND COMMENCEMENT OF INTERACTIVE GAMING.

(2) IT SHALL BE AN EXPRESS CONDITION OF THE ISSUANCE AND

CONTINUED VALIDITY OF AN INTERACTIVE GAMING CERTIFICATE THAT

A SLOT MACHINE LICENSEE SHALL COLLECT, REPORT AND PAY ALL

APPLICABLE TAXES AND FEES AND SHALL MAINTAIN ALL BOOKS,

RECORDS AND DOCUMENTS PERTAINING TO THE SLOT MACHINE

LICENSEE'S INTERACTIVE GAMING OPERATIONS IN A MANNER AND

LOCATION WITHIN THIS COMMONWEALTH AS APPROVED BY THE BOARD.

ALL BOOKS, RECORDS AND DOCUMENTS SHALL BE IMMEDIATELY

AVAILABLE FOR INSPECTION BY THE BOARD AND THE DEPARTMENT

DURING ALL HOURS OF OPERATION IN ACCORDANCE WITH THE

REGULATIONS OF THE BOARD AND SHALL BE MAINTAINED IN A MANNER

AND DURING PERIODS OF TIME AS THE BOARD SHALL REQUIRE.

(B) ISSUANCE OF INTERACTIVE GAMING CERTIFICATE.--

(1) UPON APPROVAL OF A PETITION FOR AN INTERACTIVE

GAMING CERTIFICATE, THE BOARD SHALL ISSUE AN INTERACTIVE

GAMING CERTIFICATE TO THE SLOT MACHINE LICENSEE. THE ISSUANCE

OF AN INTERACTIVE GAMING CERTIFICATE PRIOR TO THE FULL

PAYMENT OF THE AUTHORIZATION FEE REQUIRED UNDER SECTION 13B51

(RELATING TO INTERACTIVE GAMING AUTHORIZATION FEE) SHALL NOT

RELIEVE THE SLOT MACHINE LICENSEE FROM THE OBLIGATION TO PAY

THE AUTHORIZATION FEE IN ACCORDANCE WITH THE REQUIREMENTS OF

SECTION 13B51.

(2) UPON ISSUING AN INTERACTIVE GAMING CERTIFICATE, THE

20170HB0271PN1942 - 350 -

BOARD SHALL AMEND THE SLOT MACHINE LICENSEE'S STATEMENT OF

CONDITIONS TO INCLUDE CONDITIONS PERTAINING TO THE

REQUIREMENTS OF THIS CHAPTER.

POWER OF THE BOARD TO DENY, REVOKE OR SUSPEND AN INTERACTIVE

GAMING CERTIFICATE, AN INTERACTIVE GAMING CERTIFICATE SHALL BE

VALID FOR FIVE YEARS FROM THE DATE OF ISSUANCE AND MAY BE

RENEWED IN ACCORDANCE WITH THE REQUIREMENTS OF SECTION 1326

(RELATING TO RENEWALS).

(D) SANCTIONS.--AN INTERACTIVE GAMING CERTIFICATE HOLDER

THAT FAILS TO ABIDE BY THE REQUIREMENTS OF THIS CHAPTER OR

REGULATIONS OF THE BOARD OR ANY CONDITION CONTAINED IN THE

INTERACTIVE GAMING CERTIFICATE HOLDER'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.

(E) BACKGROUND INVESTIGATIONS.--EACH PETITION FOR AN

INTERACTIVE GAMING CERTIFICATE SHALL BE ACCOMPANIED BY A

NONREFUNDABLE FEE ESTABLISHED BY THE BOARD TO COVER THE COST OF

BACKGROUND INVESTIGATIONS. THE BOARD SHALL DETERMINE BY

REGULATION THE PERSONS WHO SHALL BE SUBJECT TO BACKGROUND

INVESTIGATION. ANY ADDITIONAL COSTS AND EXPENSES INCURRED IN ANY

BACKGROUND INVESTIGATION OR OTHER INVESTIGATION OR PROCEEDING

UNDER THIS CHAPTER SHALL BE REIMBURSED TO THE BOARD.

§ 13B14. INTERACTIVE GAMING OPERATORS.

(A) LICENSE REQUIRED.--NO PERSON SHALL SERVE OR ATTEMPT TO

SERVE AS AN INTERACTIVE GAMING OPERATOR WITHOUT FIRST OBTAINING

AN INTERACTIVE GAMING LICENSE FROM THE BOARD FOR EACH

INTERACTIVE GAMING CERTIFICATE HOLDER THE APPLICANT PROPOSES TO

OPERATE INTERACTIVE GAMING OR AN INTERACTIVE GAMING SYSTEM ON

20170HB0271PN1942 - 351 -

BEHALF OF. 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 OF THE APPLICATION AND THE MANNER

IN WHICH IT SHALL BE FILED. THE BOARD SHALL:

(1) DETERMINE SUITABILITY OF THE PERSON FILING AN

APPLICATION UNDER THIS SECTION. THE BOARD SHALL DETERMINE

SUITABILITY IN ACCORDANCE WITH THE SAME REQUIREMENTS OF THIS

PART APPLICABLE TO THE DETERMINATION OF SUITABILITY OF THE

ISSUANCE OF AN INTERACTIVE GAMING CERTIFICATE TO A SLOT

MACHINE LICENSEE. NOTWITHSTANDING THE PROVISIONS OF THIS

PARAGRAPH, THE BOARD MAY CONSIDER A HOLDER OF A VALID

LICENSE, PERMIT, REGISTRATION, CERTIFICATE OR OTHER

AUTHORIZATION APPROVED AND ISSUED UNDER THIS PART, WHICH IS

IN GOOD STANDING, AS SUITABLE UNDER THIS SECTION WITHOUT

ADDITIONAL INVESTIGATION. THE CONSIDERATION SHALL NOT RELIEVE

THE APPLICANT FOR AN INTERACTIVE GAMING LICENSE 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 A PERSON APPLYING FOR AN

INTERACTIVE GAMING LICENSE.

(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

20170HB0271PN1942 - 352 -

ESTABLISHED BY IT IN ACCORDANCE WITH PARAGRAPH (1).

OPERATORS SHALL BE SUBJECT TO THE APPLICABLE PROVISIONS OF THIS

PART THAT APPLY TO INTERACTIVE GAMING CERTIFICATE HOLDERS, AS

DETERMINED BY THE BOARD, INCLUDING THE PROVISIONS OF SECTION

13B13(D) (RELATING TO ISSUANCE OF INTERACTIVE GAMING

CERTIFICATE).

(D) TERM OF INTERACTIVE GAMING LICENSE.--SUBJECT TO THE

POWER OF THE BOARD TO DENY, REVOKE OR SUSPEND AN INTERACTIVE

GAMING LICENSE, AN INTERACTIVE GAMING LICENSE SHALL BE VALID FOR

FIVE YEARS FROM THE DATE OF ISSUANCE AND MAY BE RENEWED IN

ACCORDANCE WITH THE REQUIREMENTS OF SECTION 1326 (RELATING TO

RENEWALS).

(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

AUTHORIZATION TO A PERSON APPLYING FOR AN INTERACTIVE

GAMING LICENSE.

(II) CONDITIONAL AUTHORIZATION ISSUED UNDER THIS

SUBSECTION SHALL REMAIN IN EFFECT UNTIL THE EARLIER OF

THE DATE OCCURRING 12 MONTHS AFTER THE ISSUANCE OF THE

AUTHORIZATION OR THE DATE UPON WHICH THE BOARD MAKES A

FINAL DETERMINATION ON THE PERSON'S APPLICATION.

(III) THE EFFECTIVENESS OF A CONDITIONAL

AUTHORIZATION MAY BE EXTENDED 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

20170HB0271PN1942 - 353 -

ALL OF THE FUNCTIONS OF A LICENSED INTERACTIVE GAMING

OPERATOR FOR THE DURATION OF THE CONDITIONAL

AUTHORIZATION.

(2) A CONDITIONAL AUTHORIZATION MAY NOT BE ISSUED

UNLESS:

(I) THE APPLICANT HAS SUBMITTED A COMPLETE

APPLICATION FOR AN INTERACTIVE GAMING LICENSE TO THE

BOARD.

(II) THE APPLICANT AGREES TO PAY OR HAS PAID THE FEE

PRESCRIBED IN SECTION 13B51 (RELATING TO INTERACTIVE

GAMING AUTHORIZATION FEE) PRIOR TO THE ISSUANCE OF

CONDITIONAL AUTHORIZATION.

(III) THE BUREAU HAS NO OBJECTION TO THE ISSUANCE OF

A CONDITIONAL AUTHORIZATION TO THE APPLICANT.

(3) WITHIN 45 DAYS OF THE DATE THAT THE BUREAU RECEIVES

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 EMPLOYEE

OF THE APPLICANT DETERMINED BY THE BOARD TO BE INCLUDED IN

THE INVESTIGATION, WHICH SHALL INCLUDE A CRIMINAL BACKGROUND

INVESTIGATION.

(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 THE 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 A CONDITIONAL

AUTHORIZATION MAY NOT BE ISSUED UNTIL THE BUREAU'S CONCERNS

20170HB0271PN1942 - 354 -

ARE RESOLVED.

(6) A CONDITIONAL AUTHORIZATION APPROVED AND ISSUED TO

AN APPLICANT FOR AN INTERACTIVE GAMING LICENSE UNDER THIS

SUBSECTION MAY BE SUSPENDED OR WITHDRAWN BY THE BOARD UPON A

SHOWING OF GOOD CAUSE BY THE BUREAU.

§ 13B15. INTERACTIVE GAMING CERTIFICATE AND INTERACTIVE GAMING

LICENSE.

THE FOLLOWING SHALL APPLY:

(1) AN INTERACTIVE GAMING CERTIFICATE AND AN INTERACTIVE

GAMING LICENSE ISSUED TO AN INTERACTIVE GAMING OPERATOR

CONDUCTING INTERACTIVE GAMING OR AN INTERACTIVE GAMING SYSTEM

ON BEHALF OF THE INTERACTIVE GAMING CERTIFICATE HOLDER SHALL

BE VALID UNLESS NOT RENEWED IN ACCORDANCE WITH THE PROVISIONS

OF THIS CHAPTER OR:

(I) THE CERTIFICATE OR LICENSE IS SUSPENDED OR

REVOKED BY THE BOARD AS PERMITTED BY THIS PART AND

REGULATIONS OF THE BOARD.

(II) THE INTERACTIVE GAMING CERTIFICATE HOLDER'S

SLOT MACHINE LICENSE IS SUSPENDED, REVOKED OR NOT RENEWED

BY THE BOARD AS PERMITTED BY THIS PART AND REGULATIONS OF

THE BOARD.

(III) THE INTERACTIVE GAMING CERTIFICATE HOLDER

LICENSEE RELINQUISHES OR DOES NOT SEEK RENEWAL OF ITS

SLOT MACHINE LICENSE.

(IV) THE INTERACTIVE GAMING CERTIFICATE HOLDER DOES

NOT SEEK RENEWAL OF ITS INTERACTIVE GAMING CERTIFICATE.

(2) THE INTERACTIVE GAMING CERTIFICATE MAY INCLUDE AN

INITIAL ITEMIZED LIST BY NUMBER AND TYPE OF AUTHORIZED

INTERACTIVE GAMES FOR INTERACTIVE GAMING TO BE CONDUCTED BY

THE INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE

20170HB0271PN1942 - 355 -

GAMING OPERATOR. 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 SHALL BE REQUIRED TO UPDATE

THE INFORMATION IN ITS PETITION FOR AN INTERACTIVE GAMING

CERTIFICATE AT TIMES AND IN THE FORM AND MANNER PRESCRIBED BY

THE BOARD.

(4) A VALID INTERACTIVE GAMING CERTIFICATE OR

INTERACTIVE GAMING LICENSE MAY BE RENEWED IN ACCORDANCE WITH

THE PROCEDURES SET FORTH IN SECTION 1326 (RELATING TO

RENEWALS) AND UPON THE PAYMENT OF THE APPLICABLE RENEWAL FEE

REQUIRED BY SECTION 13B51(C)(RELATING TO INTERACTIVE GAMING

AUTHORIZATION FEE).

§ 13B16. TIMING OF INITIAL INTERACTIVE GAMING AUTHORIZATIONS.

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 90 DAYS

FOLLOWING RECEIPT.

SUBCHAPTER B.1

20170HB0271PN1942 - 356 -

MULTI-USE COMPUTING DEVICES

SEC.

13B20. AUTHORIZATION.

13B20.1. (RESERVED).

13B20.2. (RESERVED).

13B20.3. FEE.

13B20.4. MULTI-USE GAMING DEVICE TAX.

13B20.5. LOCAL SHARE ASSESSMENT.

13B20.6. REGULATIONS.

13B20.7. CONSTRUCTION.

§ 13B20. AUTHORIZATION.

(A) AUTHORITY.--THE BOARD MAY AUTHORIZE AN INTERACTIVE

GAMING CERTIFICATE HOLDER TO PROVIDE FOR THE CONDUCT OF

INTERACTIVE GAMING, EITHER DIRECTLY OR THROUGH AN INTERACTIVE

GAMING OPERATOR UNDER AN INTERACTIVE GAMING AGREEMENT, AT A

QUALIFIED AIRPORT THROUGH THE USE OF MULTI-USE COMPUTING DEVICES

BY ELIGIBLE PASSENGERS IN ACCORDANCE WITH THIS SUBCHAPTER AND

THE REGULATIONS OF THE BOARD. THE FOLLOWING SHALL APPLY:

(1) IF THE INTERACTIVE GAMING CERTIFICATE HOLDER INTENDS

TO OPERATE INTERACTIVE GAMING UNDER AN INTERACTIVE GAMING

AGREEMENT, THE INTERACTIVE GAMING OPERATOR THAT IS A PARTY TO

THE INTERACTIVE GAMING AGREEMENT SHALL HAVE BEEN ISSUED AN

INTERACTIVE GAMING LICENSE OR WILL BE ISSUED AN INTERACTIVE

GAMING LICENSE PRIOR TO THE COMMENCEMENT OF OPERATIONS UNDER

THE INTERACTIVE GAMING AGREEMENT. THE INTERACTIVE GAMING

AGREEMENT SHALL BE SUBJECT TO THE REVIEW AND APPROVAL OF THE

BOARD.

(2) THE INTERACTIVE GAMING CERTIFICATE HOLDER OR THE

INTERACTIVE GAMING OPERATOR, AS THE CASE MAY BE, SHALL ENTER

INTO WRITTEN AGREEMENTS WITH THE AIRPORT AUTHORITY AND THE

20170HB0271PN1942 - 357 -

CONCESSION OPERATOR AT THE QUALIFIED AIRPORT OR, FOR

OPERATION AT A QUALIFIED AIRPORT WHICH IS NOT LOCATED

PRIMARILY WITHIN A CITY OF THE FIRST CLASS, A WRITTEN

AGREEMENT WITH THE AIRPORT AUTHORITY THAT PERMITS THE CONDUCT

OF INTERACTIVE GAMING THROUGH THE USE OF MULTI-USE COMPUTING

DEVICES WITHIN THE AIRPORT GAMING AREA. THE AGREEMENTS SHALL

BE SUBJECT TO THE REVIEW AND APPROVAL OF THE BOARD.

(3) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY

CONTAINED IN THIS PART OR REGULATION OF THE BOARD, AN

ELIGIBLE PASSENGER DOES NOT NEED TO BE A REGISTERED PLAYER.

(B) PETITION.--AN INTERACTIVE GAMING CERTIFICATE HOLDER

DESIRING TO PROVIDE INTERACTIVE GAMING AT A QUALIFIED AIRPORT

UNDER SUBSECTION (A) SHALL SUBMIT A PETITION FOR APPROVAL TO THE

BOARD. THE PETITION SHALL BE IN THE FORM AND SUBMITTED IN THE

MANNER PRESCRIBED BY THE BOARD.

SHALL INCLUDE THE FOLLOWING:

(1) THE NAME, BUSINESS ADDRESS AND CONTACT INFORMATION

OF THE INTERACTIVE GAMING CERTIFICATE HOLDER AND THE NAME,

BUSINESS ADDRESS AND CONTACT INFORMATION OF THE INTERACTIVE

GAMING OPERATOR, IF APPLICABLE.

(2) THE NAME AND BUSINESS ADDRESS, JOB TITLE AND A

PHOTOGRAPH OF EACH PRINCIPAL AND KEY EMPLOYEE, IF KNOWN, OF

THE INTERACTIVE GAMING CERTIFICATE HOLDER AND THE INTERACTIVE

GAMING OPERATOR, IF APPLICABLE, WHO WILL BE DIRECTLY INVOLVED

IN THE CONDUCT OF THE AUTHORIZED INTERACTIVE GAMES AT THE

QUALIFIED AIRPORT AND WHO ARE NOT CURRENTLY LICENSED BY THE

BOARD.

(3) THE NAME AND JOB TITLE OF THE PERSON OR PERSONS WHO

WILL BE RESPONSIBLE FOR ENSURING THE OPERATION AND INTEGRITY

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OF THE CONDUCT OF INTERACTIVE GAMING AT THE QUALIFIED AIRPORT

AND FOR REVIEWING REPORTS OF SUSPICIOUS TRANSACTIONS.

(4) A COPY OF THE INTERACTIVE GAMING AGREEMENT, IF

APPLICABLE.

(5) THE LOCATION OF THE QUALIFIED AIRPORT TOGETHER WITH

DETAILED SITE PLANS INDICATING THE LOCATION OF THE PROPOSED

AIRPORT GAMING AREA.

(6) EXCEPT AS PROVIDED IN PARAGRAPH (7), THE NAME AND

BUSINESS ADDRESS OF THE AIRPORT AUTHORITY GOVERNING THE

QUALIFIED AIRPORT AND THE NAMES OF THE MEMBERS OF THE

GOVERNING BODY OF THE AIRPORT AUTHORITY.

(7) IF THE USE AND CONTROL OF THE QUALIFIED AIRPORT IS

REGULATED BY A CITY OF THE FIRST CLASS, AN IDENTIFICATION OF

THE MUNICIPAL AGENCY AND PRIMARY OFFICIALS OF THE CITY OF THE

FIRST CLASS.

(8) COPIES OF THE AGREEMENTS REQUIRED UNDER SUBSECTION

(A)(2).

(9) THE BRAND NAME OF THE MULTI-USE COMPUTING DEVICES

THAT WILL BE PLACED IN OPERATION AT THE QUALIFIED AIRPORT AND

ANY INFORMATION REQUIRED BY THE BOARD, IN ITS DISCRETION,

REGARDING PERSONS THAT MANUFACTURE OR WILL SUPPLY THE MULTI-

USE COMPUTING DEVICES AS IT DEEMS NECESSARY.

(10) THE INTERACTIVE GAMES THE INTERACTIVE GAMING

CERTIFICATE HOLDER OR THE INTERACTIVE GAMING OPERATOR, AS

APPLICABLE, INTENDS TO OFFER FOR PLAY AT THE QUALIFIED

AIRPORT.

(11) INFORMATION, AS THE BOARD MAY REQUIRE, ON ANY

COMPUTER APPLICATIONS, INCLUDING GAMING APPLICATIONS, THAT

CAN BE ACCESSED ON THE MULTI-USE COMPUTING DEVICES TO BE

PLACED INTO OPERATION AT THE QUALIFIED AIRPORT.

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(12) INFORMATION AND DOCUMENTATION EVIDENCING THE

FINANCIAL STABILITY, INTEGRITY AND RESPONSIBILITY OF THE

INTERACTIVE GAMING CERTIFICATE HOLDER AND THE INTERACTIVE

GAMING OPERATOR, IF APPLICABLE.

(13) THE AGREEMENT OF THE INTERACTIVE GAMING CERTIFICATE

HOLDER TO PAY THE FEE REQUIRED BY SECTION 13B20.3 (RELATING

TO FEE).

(14) ANY OTHER INFORMATION REQUIRED BY THE BOARD.

(D) CONFIDENTIALITY.--INFORMATION SUBMITTED TO THE BOARD

UNDER SUBSECTION (C) MAY BE CONSIDERED CONFIDENTIAL BY THE BOARD

IF THE INFORMATION WOULD BE CONFIDENTIAL UNDER SECTION 1206(F)

(RELATING TO BOARD MINUTES AND RECORDS).

(E) APPROVAL.--THE BOARD SHALL APPROVE THE PETITION

SUBMITTED UNDER SUBSECTION (B) UPON REVIEW AND APPROVAL OF THE

INFORMATION SUBMITTED UNDER SUBSECTION (C) AND A DETERMINATION

BY THE BOARD BY CLEAR AND CONVINCING EVIDENCE THAT:

(1) THE INTERACTIVE GAMING CERTIFICATE HOLDER AND THE

INTERACTIVE GAMING OPERATOR, IF APPLICABLE, HAVE PAID ALL

REQUIRED FEES AND TAXES PAYABLE UNDER PROVISIONS OF THIS PART

OTHER THAN THIS SUBCHAPTER TO THE DATE OF SUBMISSION OF THE

PETITION.

(2) THE INTERACTIVE GAMING CERTIFICATE HOLDER, OR THE

INTERACTIVE GAMING OPERATOR, AS THE CASE MAY BE, POSSESSES

THE NECESSARY FUNDS OR HAS SECURED ADEQUATE FINANCING TO

COMMENCE THE CONDUCT OF INTERACTIVE GAMING AT THE QUALIFIED

AIRPORT.

(3) THE PROPOSED INTERNAL AND EXTERNAL SECURITY AND

SURVEILLANCE MEASURES AT THE QUALIFIED AIRPORT AND WITHIN THE

AIRPORT GAMING AREA ARE ADEQUATE.

(4) INTERACTIVE GAMING AT THE QUALIFIED AIRPORT WILL BE

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CONDUCTED AND OPERATED IN ACCORDANCE WITH THIS PART AND

REGULATIONS OF THE BOARD.

§ 13B20.1. (RESERVED).

§ 13B20.2. (RESERVED).

§ 13B20.3. FEE.

(A) REQUIRED FEE.--

(1) AN INTERACTIVE GAMING CERTIFICATE HOLDER SHALL PAY A

ONE-TIME, NONREFUNDABLE FEE UPON THE AUTHORIZATION TO CONDUCT

INTERACTIVE GAMING AT A QUALIFIED AIRPORT THROUGH THE USE OF

MULTI-USE COMPUTING DEVICES IN ACCORDANCE WITH THIS

SUBCHAPTER.

(2) THE AMOUNT OF THE FEE SHALL BE AS FOLLOWS:

(I) 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.

(II) 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.

(III) 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.

(IV) IF THE AIRPORT IS A QUALIFIED AIRPORT THAT 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.

§ 13B20.4. MULTI-USE GAMING DEVICE TAX.

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(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 16% 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 DAILY BASIS AND SHALL BE BASED

UPON THE GROSS INTERACTIVE GAMING REVENUE GENERATED FROM

MULTI-USE COMPUTING DEVICES AT THE QUALIFIED AIRPORT DERIVED

DURING THE PREVIOUS DAY.

(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 AT A QUALIFIED AIRPORT 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 FUNDS COLLECTED

UNDER THIS SECTION TO THE GENERAL FUND.

§ 13B20.5. LOCAL SHARE ASSESSMENT.

(A) REQUIRED PAYMENT.--IN ADDITION TO THE TAX IMPOSED UNDER

SECTION 13B20.4 (RELATING TO MULTI-USE GAMING DEVICE TAX), EACH

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INTERACTIVE GAMING CERTIFICATE HOLDER AUTHORIZED TO CONDUCT

INTERACTIVE GAMING AT A QUALIFIED AIRPORT SHALL PAY, ON A FORM

AND IN A MANNER PRESCRIBED BY THE DEPARTMENT, A LOCAL SHARE

ASSESSMENT EQUAL TO 20% OF THE INTERACTIVE GAMING CERTIFICATE

HOLDER'S DAILY GROSS INTERACTIVE GAMING REVENUE FROM MULTI-USE

DEVICES AT THE QUALIFIED AIRPORT. THE FUNDS SHALL BE PAYABLE TO

THE DEPARTMENT ON A WEEKLY BASIS AND SHALL BE BASED UPON THE

REVENUE GENERATED DURING THE PREVIOUS WEEK. THE FUNDS SHALL BE

PAID INTO A RESTRICTED RECEIPTS ACCOUNT ESTABLISHED BY THE

DEPARTMENT IN THE FUND. ALL FUNDS OWED TO THE COMMONWEALTH UNDER

THIS SECTION SHALL BE HELD IN TRUST BY THE INTERACTIVE GAMING

CERTIFICATE HOLDER UNTIL THE FUNDS ARE PAID TO THE DEPARTMENT.

FUNDS IN THE ACCOUNT ARE HEREBY APPROPRIATED TO THE DEPARTMENT

ON A CONTINUING BASIS FOR THE PURPOSES SET FORTH IN THIS

SECTION.

(B) DISTRIBUTIONS TO QUALIFIED AIRPORTS.--

(1) EXCEPT AS PROVIDED IN PARAGRAPH (2), THE DEPARTMENT

SHALL MAKE QUARTERLY DISTRIBUTIONS FROM THE LOCAL SHARE

ASSESSMENTS DEPOSITED INTO THE RESTRICTED RECEIPTS ACCOUNT

UNDER SUBSECTION (A) TO EACH AIRPORT AUTHORITY REGULATING THE

USE AND CONTROL OF A QUALIFIED AIRPORT WHERE INTERACTIVE

GAMING IS CONDUCTED UNDER THIS SUBCHAPTER. THE AMOUNT

DISTRIBUTED TO AN AIRPORT AUTHORITY UNDER THIS SUBSECTION

SHALL BE EQUAL TO THE FUNDS DEPOSITED INTO THE RESTRICTED

RECEIPTS ACCOUNT BY THE INTERACTIVE GAMING CERTIFICATE HOLDER

AUTHORIZED TO CONDUCT INTERACTIVE GAMING AT THE QUALIFIED

AIRPORT REGULATED BY THE AIRPORT AUTHORITY.

(2) (RESERVED).

§ 13B20.6. REGULATIONS.

THE BOARD SHALL PROMULGATE REGULATIONS RELATED TO THE

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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.

(3) IN CONSULTATION WITH THE DEPARTMENT, PROCEDURES 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.

§ 13B20.7. CONSTRUCTION.

NOTHING IN THIS SUBCHAPTER SHALL BE CONSTRUED TO:

(1) CREATE A SEPARATE LICENSE GOVERNING THE USE OF

MULTI-USE COMPUTING DEVICES FOR THE CONDUCT OF INTERACTIVE

GAMES AT ELIGIBLE AIRPORTS BY INTERACTIVE GAMING CERTIFICATE

HOLDERS WITHIN THIS COMMONWEALTH.

(2) LIMIT THE BOARD'S AUTHORITY TO DETERMINE THE

SUITABILITY OF ANY PERSON WHO MAY BE DIRECTLY OR INDIRECTLY

INVOLVED IN OR ASSOCIATED WITH THE OPERATION OF INTERACTIVE

GAMING AT A QUALIFIED AIRPORT OR TO ENSURE THE INTEGRITY OF

INTERACTIVE GAMING AND PROTECT THE PUBLIC INTEREST.

SUBCHAPTER C

CONDUCT OF INTERACTIVE GAMING

SEC.

13B21. SITUS OF INTERACTIVE GAMING OPERATIONS.

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13B22. ESTABLISHMENT OF INTERACTIVE GAMING ACCOUNTS.

13B23. INTERACTIVE GAMING ACCOUNT CREDITS, DEBITS, DEPOSITS AND

PAYMENTS.

13B24. ACCEPTANCE OF WAGERS.

13B25. DORMANT INTERACTIVE GAMING ACCOUNTS.

13B26. LOG-IN PROCEDURE REQUIRED.

13B27. INFORMATION PROVIDED AT LOGIN.

13B28. PROHIBITIONS.

13B29. COMMENCEMENT OF INTERACTIVE GAMING OPERATIONS.

§ 13B21. SITUS OF INTERACTIVE GAMING OPERATIONS.

EXCEPT AS PROVIDED IN SUBCHAPTER G (RELATING TO MISCELLANEOUS

PROVISIONS), ALL WAGERS MADE THROUGH INTERACTIVE GAMING SHALL BE

DEEMED TO BE INITIATED, RECEIVED OR OTHERWISE MADE WITHIN THE

GEOGRAPHIC BOUNDARIES OF THIS COMMONWEALTH. THE INTERMEDIATE

ROUTING OF ELECTRONIC DATA ASSOCIATED OR IN CONNECTION WITH

INTERACTIVE GAMING SHALL NOT DETERMINE THE LOCATION OR LOCATIONS

IN WHICH A BET OR WAGER IS INITIATED, RECEIVED OR OTHERWISE

MADE.

§ 13B22. ESTABLISHMENT OF INTERACTIVE GAMING ACCOUNTS.

(A) REGISTRATION RESTRICTIONS.--ONLY A REGISTERED PLAYER WHO

HAS FIRST ESTABLISHED AN INTERACTIVE GAMING ACCOUNT SHALL BE

PERMITTED TO PLAY AN AUTHORIZED INTERACTIVE GAME OR PLACE A

WAGER ASSOCIATED WITH AN AUTHORIZED INTERACTIVE GAME. THE

INTERACTIVE GAMING ACCOUNT SHALL BE IN THE NAME OF A REGISTERED

PLAYER AND MAY NOT BE IN THE NAME OF ANY BENEFICIARY, CUSTODIAN,

JOINT TRUST, CORPORATION, PARTNERSHIP OR OTHER ORGANIZATION OR

ENTITY. AN ELIGIBLE PASSENGER IS NOT REQUIRED TO COMPLY WITH

THIS SECTION IN ORDER TO PLAY OR PLACE A WAGER ASSOCIATED WITH

AN INTERACTIVE GAME THROUGH THE USE OF A MULTI-USE COMPUTING

DEVICE AT A QUALIFIED AIRPORT.

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(B) ESTABLISHMENT OF INTERACTIVE GAMING ACCOUNTS.--

(1) AN INTERACTIVE GAMING ACCOUNT MAY BE ESTABLISHED 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

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 PHYSICAL ADDRESS OF

THE PRINCIPAL RESIDENCE OF THE PROSPECTIVE INTERACTIVE

GAMING ACCOUNT HOLDER IN A METHOD APPROVED BY THE BOARD

THROUGH REGULATION.

(III) ELECTRONIC MAIL ADDRESS AND OTHER CONTACT

INFORMATION OF THE PROSPECTIVE ACCOUNT HOLDER, 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

REGISTERED 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.

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(2) THE INTERACTIVE GAMING CERTIFICATE HOLDER MAY ACCEPT

OR REJECT AN APPLICATION AFTER RECEIPT AND REVIEW OF THE

APPLICATION AND VERIFICATION OF AGE, IDENTITY AND PHYSICAL

ADDRESS FOR COMPLIANCE WITH THE PROVISIONS OF THIS CHAPTER.

THE INTERACTIVE GAMING CERTIFICATE HOLDER SHALL HAVE THE

RIGHT, AT ANY TIME WITH OR WITHOUT CAUSE, TO SUSPEND OR CLOSE

ANY INTERACTIVE GAMING ACCOUNT AT ITS SOLE DISCRETION.

(3) THE ADDRESS PROVIDED BY THE APPLICANT IN THE

APPLICATION FOR AN INTERACTIVE GAMING ACCOUNT SHALL BE DEEMED

THE ADDRESS OF RECORD FOR THE PURPOSES OF MAILING CHECKS,

ACCOUNT WITHDRAWALS, NOTICES AND OTHER MATERIALS TO THE

PROSPECTIVE INTERACTIVE GAMING ACCOUNT HOLDER.

(4) AN INTERACTIVE GAMING ACCOUNT SHALL BE A NONINTEREST

BEARING ACCOUNT AND SHALL NOT BE ASSIGNABLE OR OTHERWISE

TRANSFERABLE.

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

REGISTERED PLAYER AS THE HOLDER OF THE INTERACTIVE GAMING

ACCOUNT AND ALLOW THE REGISTERED PLAYER ACCESS TO THE

INTERACTIVE GAMING ACCOUNT.

(D) GROUNDS FOR REJECTION.--ANY INDIVIDUAL WHO PROVIDES

FALSE OR MISLEADING INFORMATION IN THE APPLICATION FOR AN

INTERACTIVE GAMING ACCOUNT MAY BE SUBJECT TO REJECTION OF THE

APPLICATION OR CANCELLATION OF THE ACCOUNT BY THE INTERACTIVE

GAMING CERTIFICATE HOLDER.

(E) SUSPENSION OF INTERACTIVE GAMING ACCOUNT.--THE

INTERACTIVE GAMING CERTIFICATE HOLDER SHALL HAVE THE RIGHT TO

20170HB0271PN1942 - 367 -

SUSPEND OR CLOSE ANY INTERACTIVE GAMING ACCOUNT OR DECLARE ALL

OR ANY PART OF AN INTERACTIVE GAMING ACCOUNT CLOSED FOR WAGERING

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 ANY EMPLOYEE OR KEY

EMPLOYEE OF AN INTERACTIVE GAMING OPERATOR.

§ 13B23. INTERACTIVE GAMING ACCOUNT CREDITS, DEBITS, DEPOSITS

AND PAYMENTS.

(A) DUTY OF BOARD.--THE BOARD SHALL, BY REGULATION, DEVELOP

PROCEDURES TO GOVERN CREDITS, DEBITS AND DEPOSITS TO INTERACTIVE

GAMING ACCOUNTS. NOTWITHSTANDING ANY PROVISION OF THIS PART TO

THE CONTRARY, ALL CREDITS, DEBITS AND DEPOSITS TO INTERACTIVE

GAMING ACCOUNTS SHALL BE MADE IN ACCORDANCE WITH REGULATIONS

PROMULGATED BY THE BOARD, IN CONSULTATION WITH THE DEPARTMENT,

AND ALL PAYMENTS OF WINNINGS SHALL BE MADE IN ACCORDANCE WITH

THE RULES OF EACH 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

20170HB0271PN1942 - 368 -

PROMOTION.

(2) REFUSE ALL OR PART OF ANY WAGER OR DEPOSIT TO THE

INTERACTIVE GAMING ACCOUNT OF A REGISTERED PLAYER.

§ 13B24. ACCEPTANCE OF WAGERS.

(A) ACCEPTANCE.--A N INTERACTIVE GAMING CERTIFICATE HOLDER

MAY ACCEPT WAGERS 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 THE IDENTITY OF THE INDIVIDUAL SEEKING TO PLACE THE

WAGER.

(2) THE REGISTERED PLAYER PROVIDES THE INTERACTIVE

GAMING CERTIFICATE HOLDER 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 A WAGER IN AN AMOUNT IN EXCESS OF FUNDS ON

DEPOSIT IN THE INTERACTIVE GAMING ACCOUNT OF THE REGISTERED

PLAYER PLACING THE WAGER. FUNDS ON DEPOSIT INCLUDE AMOUNTS

CREDITED TO A REGISTERED PLAYER'S INTERACTIVE GAMING ACCOUNT IN

ACCORDANCE WITH REGULATIONS OF THE BOARD AND ANY FUNDS IN THE

ACCOUNT AT THE TIME THE WAGER IS PLACED.

§ 13B25. DORMANT INTERACTIVE GAMING ACCOUNTS.

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. THE TIME

AND MANNER OF TERMINATING A DORMANT INTERACTIVE GAMING ACCOUNT

SHALL BE PRESCRIBED BY REGULATION OF THE BOARD.

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§ 13B26. LOG-IN PROCEDURE REQUIRED.

EACH INTERACTIVE GAMING CERTIFICATE HOLDER SHALL ESTABLISH A

LOG-IN PROCEDURE FOR A REGISTERED PLAYER 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 REGISTERED PLAYER'S INTERACTIVE GAMING

ACCOUNT. THE INTERACTIVE GAMING CERTIFICATE HOLDER SHALL NOT

ALLOW A REGISTERED PLAYER TO LOG IN AND ACCESS AN INTERACTIVE

GAMING ACCOUNT UNLESS THE CORRECT PASSWORD OR OTHER

AUTHENTICATION INFORMATION IS PROVIDED.

§ 13B27. INFORMATION PROVIDED AT LOGIN.

THE INTERACTIVE GAMING CERTIFICATE HOLDER SHALL CONFIGURE ITS

INTERACTIVE GAMING SKIN TO INCLUDE A LINK THAT, UPON LOGIN, WILL

ALLOW A REGISTERED PLAYER TO ACCESS ALL OF THE FOLLOWING

INFORMATION:

(1) THE CURRENT AMOUNT OF FUNDS IN THE REGISTERED

PLAYER'S INTERACTIVE GAMING ACCOUNT.

(2) THE WINS AND LOSSES SINCE THE REGISTERED PLAYER'S

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 ANY OTHER

INFORMATION AS THE BOARD MAY REQUIRE.

§ 13B28. PROHIBITIONS.

EXCEPT AS PROVIDED IN THIS PART, NO INTERACTIVE GAMING

CERTIFICATE HOLDER OR ANY PERSON LICENSED UNDER THIS PART TO

OPERATE INTERACTIVE GAMING OR AN INTERACTIVE GAMING SYSTEM AND

20170HB0271PN1942 - 370 -

NO PERSON ACTING ON BEHALF OF, OR UNDER ANY ARRANGEMENT WITH, AN

INTERACTIVE GAMING CERTIFICATE HOLDER OR OTHER PERSON LICENSED

UNDER THIS PART SHALL:

(1) MAKE ANY LOAN TO ANY PERSON FOR THE PURPOSE OF

CREDITING AN INTERACTIVE GAMING ACCOUNT.

(2) RELEASE OR DISCHARGE ANY DEBT, EITHER IN WHOLE OR IN

PART, OR MAKE ANY LOAN WHICH REPRESENTS ANY LOSSES INCURRED

BY ANY REGISTERED PLAYER WHILE PLAYING AN AUTHORIZED

INTERACTIVE GAME WITHOUT MAINTAINING A WRITTEN RECORD THEREOF

IN ACCORDANCE WITH REGULATIONS OF THE BOARD.

§ 13B29. COMMENCEMENT OF INTERACTIVE GAMING OPERATIONS.

AN INTERACTIVE GAMING CERTIFICATE HOLDER MAY NOT OPERATE OR

OFFER INTERACTIVE GAMES FOR PLAY ON ITS INTERACTIVE GAMING SKIN

UNTIL THE BOARD DETERMINES THAT:

(1) THE INTERACTIVE GAMING CERTIFICATE HOLDER IS IN

COMPLIANCE WITH THE REQUIREMENTS OF THIS CHAPTER.

(2) THE INTERACTIVE GAMING CERTIFICATE HOLDER 'S

INTERNAL, ADMINISTRATIVE AND ACCOUNTING CONTROLS ARE

SUFFICIENT TO MEET THE REQUIREMENTS OF SECTION 13B32

(RELATING TO INTERNAL, ADMINISTRATIVE AND ACCOUNTING

CONTROLS) AND HAVE BEEN IMPLEMENTED.

(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, IF

ANY, THAT IS CONDUCTING INTERACTIVE GAMING ON BEHALF OF THE

INTERACTIVE GAMING CERTIFICATE HOLDER ARE, WHERE APPLICABLE,

LICENSED, PERMITTED OR OTHERWISE AUTHORIZED BY THE BOARD TO

PERFORM THEIR DUTIES.

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(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 SECURITY ARRANGEMENTS AND SURVEILLANCE

SYSTEMS FOR THE OPERATION OF INTERACTIVE GAMING.

(7) THE INTERACTIVE GAMING CERTIFICATE HOLDER IS IN

COMPLIANCE WITH OR WILL COMPLY WITH SECTION 13B31 (RELATING

TO RESPONSIBILITIES OF INTERACTIVE GAMING CERTIFICATE

HOLDER).

(8) THE BOARD HAS APPROVED THE INTERACTIVE GAMING

AGREEMENT BETWEEN THE INTERACTIVE GAMING CERTIFICATE HOLDER

AND THE INTERACTIVE GAMING OPERATOR, IF APPLICABLE.

SUBCHAPTER D

FACILITIES AND EQUIPMENT

SEC.

13B31. RESPONSIBILITIES OF INTERACTIVE GAMING CERTIFICATE

HOLDER .

13B32. INTERNAL, ADMINISTRATIVE AND ACCOUNTING CONTROLS.

§ 13B31. RESPONSIBILITIES OF INTERACTIVE GAMING CERTIFICATE

HOLDER .

(A) FACILITIES AND EQUIPMENT.--ALL FACILITIES AND

INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT SHALL:

(1) BE ARRANGED IN A MANNER PROMOTING APPROPRIATE

SECURITY FOR INTERACTIVE GAMING.

(2) INCLUDE A CLOSED-CIRCUIT VIDEO MONITORING SYSTEM

ACCORDING TO RULES OR SPECIFICATIONS APPROVED BY THE BOARD,

WITH BOARD ABSOLUTE ACCESS TO THE INTERACTIVE GAMING

CERTIFICATE HOLDER 'S INTERACTIVE GAMING SKIN, INTERNET

WEBSITE AND PLATFORM, SIGNAL OR TRANSMISSION USED IN

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CONNECTION WITH INTERACTIVE GAMING.

(3) NOT BE DESIGNED IN ANY WAY THAT MIGHT INTERFERE WITH

OR IMPEDE THE BOARD IN ITS REGULATION OF INTERACTIVE GAMING.

(4) COMPLY IN ALL RESPECTS WITH REGULATIONS OF THE

BOARD.

(B) LOCATION OF EQUIPMENT AND INTERACTIVE GAMING RESTRICTED

AREAS.--

(1) ALL INTERACTIVE GAMING DEVICES AND ASSOCIATED

EQUIPMENT USED BY AN INTERACTIVE GAMING CERTIFICATE HOLDER OR

AN INTERACTIVE GAMING LICENSEE TO CONDUCT INTERACTIVE GAMING

MAY BE LOCATED, WITH THE PRIOR APPROVAL OF THE BOARD, IN AN

INTERACTIVE GAMING RESTRICTED AREA ON THE PREMISES OF THE

LICENSED FACILITY, IN AN INTERACTIVE GAMING RESTRICTED AREA

WITHIN THE GEOGRAPHIC LIMITS OF THE COUNTY IN THIS

COMMONWEALTH WHERE THE LICENSED FACILITY IS SITUATED OR IN

ANY OTHER AREA APPROVED BY THE BOARD.

(2) ALL WAGERS ASSOCIATED WITH INTERACTIVE GAMING SHALL

BE DEEMED TO BE PLACED, INITIATED AND RECEIVED WHEN RECEIVED

BY THE INTERACTIVE GAMING CERTIFICATE HOLDER .

§ 13B32. INTERNAL, ADMINISTRATIVE AND ACCOUNTING CONTROLS.

(A) SUBMISSIONS TO BOARD.--NOTWITHSTANDING ANY PROVISION OF

THIS PART, EACH SLOT MACHINE LICENSEE WHO HOLDS OR HAS APPLIED

FOR AN INTERACTIVE GAMING CERTIFICATE IN ACCORDANCE WITH THIS

CHAPTER SHALL SUBMIT A DESCRIPTION OF ITS SYSTEM OF INTERNAL

PROCEDURES AND ADMINISTRATIVE AND ACCOUNTING CONTROLS FOR

INTERACTIVE GAMING TO THE BOARD, INCLUDING PROVISIONS THAT

PROVIDE FOR REAL-TIME MONITORING, RECORDATION OR STORAGE OF ALL

INTERACTIVE GAMES AND A DESCRIPTION OF ANY CHANGES TO ITS

PROCEDURES AND CONTROLS. THE SUBMISSION SHALL BE MADE AT LEAST

90 DAYS BEFORE INTERACTIVE GAMING IS TO COMMENCE OR AT LEAST 90

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DAYS BEFORE ANY CHANGE IN THOSE PROCEDURES OR CONTROLS IS TO

TAKE EFFECT, UNLESS OTHERWISE DIRECTED BY THE BOARD.

(B) FILING.--NOTWITHSTANDING SUBSECTION (A), THE PROCEDURES

AND CONTROLS MAY BE IMPLEMENTED BY AN INTERACTIVE GAMING

CERTIFICATE HOLDER UPON THE FILING OF THE PROCEDURES AND

CONTROLS WITH THE BOARD. EACH PROCEDURE OR CONTROL SUBMISSION

SHALL CONTAIN BOTH NARRATIVE AND DIAGRAMMATIC REPRESENTATIONS OF

THE SYSTEM TO BE UTILIZED AND SHALL INCLUDE BUT NEED NOT BE

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 AND THE SYSTEM OF PERSONNEL AND

CHAIN OF COMMAND, ESTABLISHING A DIVERSITY OF RESPONSIBILITY

AMONG EMPLOYEES ENGAGED IN INTERACTIVE GAMING OPERATIONS,

INCLUDING EMPLOYEES OF AN INTERACTIVE GAMING OPERATOR, AND

IDENTIFYING PRIMARY AND SECONDARY MANAGEMENT AND SUPERVISORY

POSITIONS FOR AREAS OF RESPONSIBILITY, SALARY STRUCTURE AND

PERSONNEL PRACTICES.

(4) PROCEDURES FOR THE REGISTRATION OF PLAYERS AND

ESTABLISHMENT OF INTERACTIVE GAMING ACCOUNTS, INCLUDING A

PROCEDURE FOR AUTHENTICATING THE AGE, IDENTITY AND PHYSICAL

ADDRESS OF AN APPLICANT FOR AN INTERACTIVE GAMING ACCOUNT AND

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WHETHER THE APPLICANT IS A PERSON PROHIBITED FROM

ESTABLISHING OR MAINTAINING AN ACCOUNT UNDER SECTION 13B22

(RELATING TO ESTABLISHMENT OF INTERACTIVE GAMING ACCOUNTS).

(5) PROCEDURES FOR TERMINATING A REGISTERED PLAYER'S

INTERACTIVE GAMING ACCOUNT AND THE RETURN OF ANY FUNDS

REMAINING IN THE INTERACTIVE GAMING ACCOUNT TO THE REGISTERED

PLAYER.

(6) PROCEDURES FOR SUSPENDING OR TERMINATING A DORMANT

INTERACTIVE GAMING ACCOUNT AND THE RETURN OF ANY FUNDS

REMAINING IN THE DORMANT INTERACTIVE GAMING ACCOUNT TO THE

REGISTERED PLAYER.

(7) PROCEDURES FOR THE LOGGING IN AND AUTHENTICATION OF

A REGISTERED PLAYER IN ORDER TO ENABLE THE PLAYER TO COMMENCE

INTERACTIVE GAMING AND THE LOGGING OFF OF THE REGISTERED

PLAYER WHEN THE PLAYER HAS COMPLETED PLAY, INCLUDING A

PROCEDURE TO AUTOMATICALLY LOG A REGISTERED PLAYER OUT OF THE

PLAYER'S INTERACTIVE GAMING ACCOUNT AFTER A SPECIFIED PERIOD

OF INACTIVITY.

(8) PROCEDURES FOR THE CREDITING AND DEBITING OF A

REGISTERED PLAYER'S INTERACTIVE GAMING ACCOUNT.

(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 A REGISTERED

PLAYER'S FUNDS, INCLUDING THE SEGREGATION OF A REGISTERED

PLAYER'S FUNDS FROM OPERATING FUNDS OF THE INTERACTIVE GAMING

CERTIFICATE HOLDER.

(12) PROCEDURES FOR RECORDING TRANSACTIONS PERTAINING TO

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INTERACTIVE GAMING.

(13) PROCEDURES FOR THE SECURITY AND SHARING OF PERSONAL

IDENTIFIABLE INFORMATION OF A REGISTERED PLAYER, FUNDS IN AN

INTERACTIVE GAMING ACCOUNT AND OTHER INFORMATION AS REQUIRED

BY THE BOARD. THE PROCEDURES SHALL INCLUDE THE MEANS BY WHICH

AN INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE

GAMING OPERATOR WILL PROVIDE NOTICE TO A REGISTERED PLAYER

RELATED TO THE SHARING OF PERSONAL IDENTIFIABLE INFORMATION.

FOR THE PURPOSE OF THIS PARAGRAPH, "PERSONAL IDENTIFIABLE

INFORMATION" SHALL MEAN ANY DATA OR INFORMATION THAT CAN BE

USED, ON ITS OWN OR WITH OTHER DATA OR INFORMATION, TO

IDENTIFY, CONTACT OR OTHERWISE LOCATE A REGISTERED PLAYER,

INCLUDING A REGISTERED PLAYER'S NAME, ADDRESS, DATE OF BIRTH

AND SOCIAL SECURITY NUMBER.

(14) PROCEDURES AND SECURITY FOR THE CALCULATION AND

RECORDATION OF REVENUE.

(15) PROCEDURES FOR THE SECURITY OF INTERACTIVE GAMING

DEVICES AND ASSOCIATED EQUIPMENT.

(16) PROCEDURES AND SECURITY STANDARDS AS TO RECEIPT,

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 ANY PERSON.

(18) PROCEDURES FOR RESPONDING TO SUSPECTED OR ACTUAL

HACKING OR TAMPERING WITH AN INTERACTIVE GAMING CERTIFICATE

HOLDER 'S INTERACTIVE GAMING SKIN OR INTERNET WEBSITE AND

INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT,

INCLUDING PARTIAL OR COMPLETE SUSPENSION OF INTERACTIVE

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GAMING OR THE SUSPENSION OF ANY OR ALL INTERACTIVE GAMING

ACCOUNTS WHEN WARRANTED.

(19) PROCEDURES TO VERIFY EACH REGISTERED PLAYER'S

PHYSICAL LOCATION EACH TIME A REGISTERED PLAYER LOGS INTO HIS

OR HER INTERACTIVE GAMING ACCOUNT AND AT APPROPRIATE

INTERVALS THEREAFTER AS DETERMINED BY THE BOARD.

(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 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 SKIN, PLATFORM OR INTERNET WEBSITE.

(1) THE BOARD SHALL REVIEW EACH SUBMISSION REQUIRED BY

SUBSECTIONS (A) AND (B) AND SHALL DETERMINE WHETHER THE

SUBMISSION CONFORMS TO THE REQUIREMENTS OF THIS CHAPTER AND

REGULATIONS PROMULGATED BY THE BOARD AND WHETHER THE SYSTEM

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SUBMITTED PROVIDES ADEQUATE AND EFFECTIVE CONTROLS FOR

INTERACTIVE GAMING OF THE INTERACTIVE GAMING CERTIFICATE

HOLDER MAKING THE SUBMISSION.

(2) IF THE BOARD DETERMINES THAT THE SUBMISSION IS NOT

SUFFICIENT, 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) OR AN

EMERGENCY SITUATION THREATENING THE INTEGRITY OF THE

INTERACTIVE GAMING PLATFORM, NO INTERACTIVE GAMING

CERTIFICATE HOLDER, INTERACTIVE GAMING OPERATOR OR OTHER

PERSON SHALL COMMENCE OR ALTER INTERACTIVE GAMING OPERATIONS

UNLESS AND UNTIL THE SYSTEM OF PROCEDURES, CONTROLS AND

ALTERNATIONS IS SUBMITTED TO AND APPROVED BY THE BOARD.

SUBCHAPTER E

TESTING AND CERTIFICATION

SEC.

13B41. INTERACTIVE GAMES AND INTERACTIVE GAMING DEVICES AND

ASSOCIATED EQUIPMENT TESTING AND CERTIFICATION

STANDARDS.

§ 13B41. INTERACTIVE GAMES AND INTERACTIVE GAMING DEVICES AND

ASSOCIATED EQUIPMENT TESTING AND CERTIFICATION

STANDARDS.

(A) TESTING REQUIRED.--

(1) NO INTERACTIVE GAME OR INTERACTIVE GAMING DEVICE OR

ASSOCIATED EQUIPMENT SHALL BE USED TO CONDUCT INTERACTIVE

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GAMING UNLESS IT HAS BEEN TESTED AND APPROVED BY THE BOARD.

THE BOARD MAY, IN ITS DISCRETION AND FOR THE PURPOSE OF

EXPEDITING THE APPROVAL PROCESS, REFER TESTING TO ANY TESTING

LABORATORY AS APPROVED BY THE BOARD.

(2) THE BOARD SHALL ESTABLISH, BY REGULATION, TECHNICAL

STANDARDS FOR APPROVAL OF INTERACTIVE GAMES AND INTERACTIVE

GAMING DEVICES AND ASSOCIATED EQUIPMENT, INCLUDING STANDARDS

TO GOVERN MECHANICAL, ELECTRICAL OR PROGRAM RELIABILITY AND

SECURITY AGAINST TAMPERING AND THREATS, AS IT MAY DEEM

NECESSARY TO PROTECT A REGISTERED PLAYER FROM FRAUD OR

DECEPTION AND TO ENSURE THE INTEGRITY OF INTERACTIVE GAMING.

(B) COST OF TESTING AND CERTIFICATION.--ANY COSTS ASSOCIATED

WITH THE BOARD'S TESTING AND CERTIFICATION UNDER THIS SECTION

SHALL BE ASSESSED ON PERSONS AUTHORIZED BY THE BOARD TO

MANUFACTURE, SUPPLY, DISTRIBUTE OR OTHERWISE PROVIDE INTERACTIVE

GAMES AND INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT TO

INTERACTIVE GAMING CERTIFICATE HOLDERS OR TO INTERACTIVE GAMING

OPERATORS IN THIS COMMONWEALTH. THE COSTS SHALL BE ASSESSED IN

ACCORDANCE WITH A SCHEDULE ADOPTED BY THE BOARD.

WHETHER THE TESTING AND CERTIFICATION STANDARDS FOR INTERACTIVE

GAMES AND INTERACTIVE GAMING DEVICES AND ASSOCIATED EQUIPMENT AS

ADOPTED BY ANOTHER JURISDICTION WITHIN THE UNITED STATES 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 THAT HAVE MET THE TESTING AND

CERTIFICATION STANDARD IN SUCH OTHER JURISDICTION TO FURNISH

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INTERACTIVE GAMES OR INTERACTIVE GAMING DEVICES AND ASSOCIATED

EQUIPMENT TO INTERACTIVE GAMING CERTIFICATE HOLDERS IN THIS

COMMONWEALTH WITHOUT UNDERGOING THE FULL TESTING AND

CERTIFICATION UNDER THIS SECTION.

SUBCHAPTER F

TAXES AND FEES

SEC.

13B51. INTERACTIVE GAMING AUTHORIZATION FEE.

13B52. INTERACTIVE GAMING TAX.

13B53. LOCAL SHARE ASSESSMENT.

13B54. COMPULSIVE AND PROBLEM GAMBLING.

§ 13B51. INTERACTIVE GAMING AUTHORIZATION FEE.

(A) AMOUNT OF AUTHORIZATION FEE.--

(1) EACH SLOT MACHINE LICENSEE THAT IS ISSUED AN

INTERACTIVE GAMING CERTIFICATE TO CONDUCT INTERACTIVE GAMING

IN ACCORDANCE WITH SECTION 13B11 (RELATING TO AUTHORIZATION

TO CONDUCT INTERACTIVE GAMING) SHALL PAY A ONE-TIME

NONREFUNDABLE AUTHORIZATION FEE IN THE AMOUNT OF $8,000,000.

(2) EACH INTERACTIVE GAMING OPERATOR SHALL PAY A ONE-

TIME NONREFUNDABLE AUTHORIZATION FEE IN THE AMOUNT OF

$2,000,000.

(3) EACH INTERACTIVE GAMING OPERATOR THAT HAS BEEN

APPROVED BY THE BOARD TO PROVIDE FOR THE CONDUCT OF

INTERACTIVE GAMING ON BEHALF OF AN INTERACTIVE GAMING

CERTIFICATE HOLDER AT A QUALIFIED AIRPORT SHALL PAY A ONE-

TIME NONREFUNDABLE AUTHORIZATION FEE IN THE AMOUNT OF

$1,000,000.

(B) PAYMENT OF FEE.--PERSONS REQUIRED TO PAY THE

AUTHORIZATION FEE UNDER SUBSECTION (A) SHALL REMIT THE FEE TO

THE BOARD WITHIN 60 DAYS OF THE BOARD'S APPROVAL OF ITS

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PETITION, LICENSE OR CONDITIONAL AUTHORIZATION.

(1) 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.

(2) EACH INTERACTIVE GAMING OPERATOR SHALL PAY A RENEWAL

FEE OF $100,000 UPON THE RENEWAL OF ITS INTERACTIVE GAMING

LICENSE.

(D) DEPOSIT OF FEES.--THE FEES IMPOSED AND COLLECTED UNDER

THIS SECTION SHALL BE DEPOSITED IN THE GENERAL FUND.

§ 13B52. INTERACTIVE GAMING TAX.

(A) IMPOSITION OF TAX.--EACH INTERACTIVE GAMING CERTIFICATE

HOLDER THAT CONDUCTS INTERACTIVE GAMING SHALL REPORT TO THE

DEPARTMENT AND PAY FROM ITS DAILY GROSS INTERACTIVE GAMING

REVENUE, ON A FORM AND IN THE MANNER PRESCRIBED BY THE

DEPARTMENT, A TAX OF 16% OF ITS DAILY GROSS INTERACTIVE GAMING

REVENUE.

(B) DEPOSITS AND DISTRIBUTIONS.--

(1) THE TAX IMPOSED UNDER SUBSECTION (A) SHALL BE

PAYABLE TO THE DEPARTMENT ON A WEEKLY BASIS AND SHALL BE

BASED UPON GROSS INTERACTIVE GAMING REVENUE DERIVED DURING

THE PREVIOUS WEEK.

(2) AN INTERACTIVE GAMING CERTIFICATE HOLDER SHALL

ESTABLISH A SEPARATE BANK ACCOUNT INTO WHICH GROSS

INTERACTIVE GAMING REVENUE SHALL BE DEPOSITED AND MAINTAINED

UNTIL SUCH TIME AS THE FUNDS ARE PAID TO THE DEPARTMENT UNDER

THIS SECTION.

SHALL BE ASSESSED AND COLLECTED BY THE DEPARTMENT WITH RESPECT

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TO WAGERS PLACED BY REGISTERED PLAYERS LOCATED IN THIS

COMMONWEALTH WITH AN INTERACTIVE GAMING OPERATOR LOCATED OUTSIDE

OF THIS COMMONWEALTH, BUT AUTHORIZED UNDER AN INTERACTIVE GAMING

RECIPROCAL AGREEMENT, SHALL BE GOVERNED BY THE AGREEMENT BUT MAY

NOT EXCEED 19% 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 AND DEPOSITED IN THE

GENERAL FUND.

§ 13B53. LOCAL SHARE ASSESSMENT.

(A) REQUIRED PAYMENT.--

(1) IN ADDITION TO THE TAX IMPOSED UNDER SECTION 13B52

(RELATING TO INTERACTIVE GAMING TAX), EACH INTERACTIVE GAMING

CERTIFICATE HOLDER THAT CONDUCTS INTERACTIVE GAMING SHALL PAY

ON A WEEKLY BASIS, ON A FORM AND IN A MANNER PRESCRIBED BY

THE DEPARTMENT, A LOCAL SHARE ASSESSMENT EQUAL TO 3% OF THE

INTERACTIVE GAMING CERTIFICATE HOLDER'S DAILY GROSS

INTERACTIVE GAMING REVENUE.

(2) ONE-THIRD OF THE LOCAL SHARE ASSESSMENT UNDER

PARAGRAPH (1) OF EACH INTERACTIVE GAMING CERTIFICATE HOLDER'S

DAILY GROSS INTERACTIVE GAMING REVENUE SHALL BE PROVIDED TO

THE COUNTY HOSTING THE INTERACTIVE GAMING CERTIFICATE

HOLDER'S LICENSED FACILITY AND THE REMAINING FUNDS SHALL BE

PAID INTO A RESTRICTED RECEIPT ACCOUNT ESTABLISHED IN THE

DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT TO BE USED

EXCLUSIVELY FOR GRANTS TO ALL COUNTIES IN THIS COMMONWEALTH,

TO ECONOMIC DEVELOPMENT AUTHORITIES OR REDEVELOPMENT

AUTHORITIES WITHIN EACH COUNTY, FOR GRANTS FOR ECONOMIC

DEVELOPMENT PROJECTS, COMMUNITY IMPROVEMENT PROJECTS AND

OTHER PROJECTS IN THE PUBLIC INTEREST. FUNDS IN THE ACCOUNT

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ARE HEREBY APPROPRIATED TO THE DEPARTMENT OF COMMUNITY AND

ECONOMIC DEVELOPMENT ON A CONTINUING BASIS FOR THE PURPOSES

SPECIFIED IN THIS PARAGRAPH.

(B) DISTRIBUTION OF GRANTS.--THE DEPARTMENT OF COMMUNITY AND

ECONOMIC DEVELOPMENT SHALL DEVELOP POLICIES AND PROCEDURES TO

GOVERN THE DISTRIBUTION OF GRANTS FROM THE LOCAL SHARE

ASSESSMENT ESTABLISHED UNDER SUBSECTION (A). THE POLICIES AND

PROCEDURES SHALL BE OF SUFFICIENT SCOPE TO ENSURE EQUAL ACCESS

TO GRANT FUNDS BY ALL COUNTIES IN THIS COMMONWEALTH.

§ 13B54. COMPULSIVE AND PROBLEM GAMBLING.

THE FOLLOWING SHALL APPLY:

(1) EACH YEAR, FROM THE TAX IMPOSED IN SECTION 13B52

(RELATING TO INTERACTIVE GAMING TAX), $2,000,000 OR AN AMOUNT

EQUAL TO .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 13B52,

$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 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).

§ 13B55. CERTIFICATE HOLDER DEPOSITS.

(A) ACCOUNTS ESTABLISHED.--EXCEPT FOR AN INTERACTIVE GAMING

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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.--

(1) THE DEPARTMENT SHALL DETERMINE THE APPROPRIATE

ASSESSMENT AMOUNT FOR EACH INTERACTIVE GAMING CERTIFICATE

HOLDER, WHICH AMOUNT 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

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).

(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 AS NECESSARY TO ADMINISTER

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THIS CHAPTER.

(2) AS SOON AS PRACTICABLE AFTER SUBMITTING COPIES OF

THE ITEMIZED BUDGET, THE DEPARTMENT SHALL 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 ANALYSES OF AND RECOMMENDATIONS REGARDING THE

ITEMIZED BUDGET.

(3) THE ITEMIZED BUDGET REQUIRED UNDER PARAGRAPH (1)

SHALL BE SUBMITTED IN CONJUNCTION WITH THE BUDGET REQUIRED TO

BE SUBMITTED UNDER SECTION 1202(B)(28) (RELATING TO GENERAL

AND SPECIFIC POWERS).

(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.--

(1) AN INTERACTIVE GAMING CERTIFICATE HOLDER THAT FAILS

TO TIMELY REMIT TO THE DEPARTMENT AMOUNTS REQUIRED UNDER THIS

SECTION SHALL BE SUBJECT TO, IN ADDITION TO LIABILITY IMPOSED

IN THIS CHAPTER, A PENALTY OF 5% PER MONTH UP TO A MAXIMUM OF

25% OF THE AMOUNTS ULTIMATELY FOUND TO BE DUE. THE PENALTY

SHALL BE RECOVERED BY THE DEPARTMENT.

(2) PENALTIES IMPOSED UNDER THIS SUBSECTION SHALL BE

DEPOSITED INTO THE GENERAL FUND.

SUBCHAPTER G

MISCELLANEOUS PROVISIONS

SEC.

13B61. PARTICIPATION IN INTERACTIVE GAMING OUTSIDE

COMMONWEALTH.

13B62. INSTITUTIONAL INVESTORS.

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13B63. INTERNET CAFES AND PROHIBITION.

§ 13B61. PARTICIPATION IN INTERACTIVE GAMING 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

LOCATED IN THIS COMMONWEALTH OR MAY ACCEPT INTERACTIVE GAMING

WAGERS FROM A PERSON PHYSICALLY PRESENT IN THIS COMMONWEALTH AND

TRANSMIT SUCH WAGERS TO AN INTERACTIVE GAMING PLATFORM OPERATED

BY ONE OR MORE OPERATORS LICENSED IN A FOREIGN JURISDICTION

WHERE INTERACTIVE GAMING IS PERMITTED, IF THE BOARD DETERMINES

THE FOLLOWING:

(1) PARTICIPATION IN INTERACTIVE GAMING AND ACCEPTANCE

OF WAGERS ASSOCIATED WITH INTERACTIVE GAMING FROM A PERSON

NOT PHYSICALLY LOCATED IN THIS COMMONWEALTH OR ACCEPTING

INTERACTIVE GAMING WAGERS FROM A PERSON PHYSICALLY PRESENT IN

THIS COMMONWEALTH AND TRANSMITTING SUCH WAGERS TO AN

INTERACTIVE GAMING PLATFORM OPERATED BY ONE OR MORE OPERATORS

LICENSED IN A FOREIGN JURISDICTION WHERE INTERACTIVE GAMING

IS PERMITTED IS NOT INCONSISTENT WITH FEDERAL LAW OR

REGULATION OR THE LAW OR REGULATION OF THE STATE OR

JURISDICTION IN WHICH THE PERSON OR OPERATOR IS LOCATED; AND

(2) PARTICIPATION IN INTERACTIVE GAMING IS CONDUCTED

PURSUANT TO AN INTERACTIVE GAMING RECIPROCAL AGREEMENT WITH

THE STATE OR JURISDICTION WHERE THE PERSON IS LOCATED AND THE

INTERACTIVE GAMING RECIPROCAL AGREEMENT IS NOT INCONSISTENT

WITH FEDERAL LAW OR REGULATION.

§ 13B62. INSTITUTIONAL INVESTORS.

(A) DECLARATION OF INVESTMENT INTENT.--NOTWITHSTANDING ANY

OTHER PROVISION OF THIS PART, THE FOLLOWING SHALL APPLY:

20170HB0271PN1942 - 386 -

(1) AN INSTITUTIONAL INVESTOR HOLDING 20% OR LESS OF THE

EQUITY SECURITIES OF AN INTERACTIVE GAMING CERTIFICATE

HOLDER'S, INTERACTIVE GAMING OPERATOR'S OR APPLICANT'S

HOLDING, SUBSIDIARY OR INTERMEDIARY COMPANIES SHALL BE

GRANTED A WAIVER OF ANY INVESTIGATION OF SUITABILITY OR OTHER

REQUIREMENT IF THE SECURITIES ARE THOSE OF A CORPORATION,

WHETHER PUBLICLY TRADED OR PRIVATELY HELD, AND THE HOLDINGS

OF THE SECURITIES WERE PURCHASED FOR INVESTMENT PURPOSES

ONLY. THE INSTITUTIONAL INVESTOR SHALL FILE A CERTIFIED

STATEMENT THAT IT HAS NO INTENTION OF INFLUENCING OR

AFFECTING THE AFFAIRS OF THE INTERACTIVE GAMING CERTIFICATE

HOLDER, INTERACTIVE GAMING OPERATOR, APPLICANT OR ANY

HOLDING, SUBSIDIARY OR INTERMEDIARY COMPANY OF AN INTERACTIVE

GAMING CERTIFICATE HOLDER, INTERACTIVE GAMING OPERATOR OR

APPLICANT. HOWEVER, AN INSTITUTIONAL INVESTOR SHALL BE

PERMITTED TO VOTE ON MATTERS PUT TO THE VOTE OF THE

OUTSTANDING SECURITY HOLDERS.

(2) THE BOARD MAY GRANT A WAIVER TO AN INSTITUTIONAL

INVESTOR HOLDING A HIGHER PERCENTAGE OF SECURITIES UPON A

SHOWING OF GOOD CAUSE AND IF THE OTHER 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 ANY ACTION THAT MAY INFLUENCE OR

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AFFECT SUCH AFFAIRS. AN INSTITUTIONAL INVESTOR SHALL BE

PERMITTED TO VOTE ON MATTERS PUT TO THE VOTE OF THE

OUTSTANDING SECURITY HOLDERS.

(4) IF AN INSTITUTIONAL INVESTOR CHANGES ITS INVESTMENT

INTENT OR IF THE BOARD FINDS REASONABLE CAUSE TO BELIEVE THAT

THE INSTITUTIONAL INVESTOR MAY BE FOUND UNSUITABLE, NO ACTION

OTHER THAN DIVESTITURE SHALL BE TAKEN BY THE INSTITUTIONAL

INVESTOR WITH RESPECT TO ITS SECURITY HOLDINGS UNTIL THERE

HAS BEEN COMPLIANCE WITH ANY REQUIREMENTS ESTABLISHED BY THE

BOARD, WHICH MAY INCLUDE THE EXECUTION OF A TRUST AGREEMENT

IN ACCORDANCE WITH SECTION 1332 (RELATING TO APPOINTMENT OF

TRUSTEE).

(5) THE INTERACTIVE GAMING CERTIFICATE HOLDER OR

INTERACTIVE GAMING OPERATOR OR APPLICANT OR ANY HOLDING,

INTERMEDIARY OR SUBSIDIARY COMPANY OF AN INTERACTIVE GAMING

CERTIFICATE HOLDER, INTERACTIVE GAMING OPERATOR OR APPLICANT

SHALL NOTIFY THE BOARD IMMEDIATELY OF ANY INFORMATION ABOUT,

OR ACTIONS OF, AN INSTITUTIONAL INVESTOR HOLDING ITS EQUITY

SECURITIES WHERE THE INFORMATION OR ACTION MAY IMPACT THE

ELIGIBILITY OF THE INSTITUTIONAL INVESTOR FOR A WAIVER UNDER

THIS SUBSECTION.

(B) FAILURE TO DECLARE.--IF THE BOARD FINDS:

(1) THAT AN INSTITUTIONAL INVESTOR HOLDING ANY SECURITY

OF A HOLDING OR INTERMEDIARY COMPANY OF AN INTERACTIVE GAMING

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

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OPERATOR OR APPLICANT, FAILS TO COMPLY WITH THE PROVISIONS OF

SUBSECTION (A); OR

(2) BY REASON OF THE EXTENT OR NATURE OF ITS HOLDINGS,

AN INSTITUTIONAL INVESTOR IS IN A POSITION TO EXERCISE SUCH A

SUBSTANTIAL IMPACT UPON THE CONTROLLING INTERESTS OF AN

INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE GAMING

OPERATOR OR APPLICANT THAT INVESTIGATION AND DETERMINATION OF

SUITABILITY OF THE INSTITUTIONAL INVESTOR IS NECESSARY TO

PROTECT THE PUBLIC INTEREST;

THEN THE BOARD MAY TAKE ANY NECESSARY ACTION OTHERWISE

AUTHORIZED UNDER THIS CHAPTER TO PROTECT THE PUBLIC INTEREST.

§ 13B63. INTERNET CAFES AND PROHIBITION.

(A) GENERAL RULE.--NO PERSON 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 AUTHORIZED INTERACTIVE

GAMES ON THEIR OWN COMPUTERS OR OTHER DEVICES; 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 AUTHORIZED

INTERACTIVE GAMES ON THEIR OWN COMPUTERS OR OTHER DEVICES.

CHAPTER 13C

SPORTS WAGERING

SUBCHAPTER

A. GENERAL PROVISIONS

B. SPORTS WAGERING AUTHORIZED

C. CONDUCT OF SPORTS WAGERING

D. SPORTS WAGERING TAXES AND FEES

E. MISCELLANEOUS PROVISIONS

SUBCHAPTER A

GENERAL PROVISIONS

SEC.

13C01. DEFINITIONS.

13C02. REGULATORY AUTHORITY.

13C03. TEMPORARY SPORTS WAGERING REGULATIONS.

13C04. UNAUTHORIZED SPORTS WAGERING.

§ 13C01. 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:

"CERTIFICATE HOLDER." A PERSON TO WHOM THE BOARD HAS AWARDED

A SPORTS WAGERING CERTIFICATE.

"GROSS SPORTS WAGERING REVENUE."

(1) THE TOTAL OF CASH OR CASH EQUIVALENTS RECEIVED FROM

SPORTS WAGERING MINUS THE TOTAL OF:

(I) CASH OR CASH EQUIVALENTS PAID TO PLAYERS AS A

RESULT OF SPORTS WAGERING.

(II) CASH OR CASH EQUIVALENTS PAID TO PURCHASE

ANNUITIES TO FUND PRIZES PAYABLE TO PLAYERS OVER A PERIOD

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OF TIME AS A RESULT OF SPORTS WAGERING.

(III) THE ACTUAL COST PAID BY THE CERTIFICATE HOLDER

FOR ANY PERSONAL PROPERTY DISTRIBUTED TO A PLAYER AS A

RESULT OF SPORTS WAGERING. THIS SUBPARAGRAPH DOES NOT

INCLUDE TRAVEL EXPENSES, FOOD, REFRESHMENTS, LODGING OR

SERVICES.

(2) THE TERM DOES NOT INCLUDE ANY OF THE FOLLOWING:

(I) COUNTERFEIT CASH OR CHIPS.

(II) COINS OR CURRENCY OF OTHER COUNTRIES RECEIVED

AS A RESULT OF SPORTS WAGERING, EXCEPT TO THE EXTENT THAT

THE COINS OR CURRENCY ARE READILY CONVERTIBLE TO CASH.

(III) CASH TAKEN IN A FRAUDULENT ACT PERPETRATED

AGAINST A CERTIFICATE HOLDER FOR WHICH THE CERTIFICATE

HOLDER IS NOT REIMBURSED.

"SPORTING EVENT." A PROFESSIONAL OR COLLEGIATE SPORTS OR

ATHLETIC EVENT OR A MOTOR RACE EVENT.

"SPORTS WAGERING." THE BUSINESS OF ACCEPTING WAGERS ON

SPORTING EVENTS OR ON THE INDIVIDUAL PERFORMANCE STATISTICS OF

ATHLETES IN A SPORTING EVENT OR COMBINATION OF SPORTING EVENTS

BY ANY SYSTEM OR METHOD OF WAGERING, INCLUDING OVER THE INTERNET

THROUGH WEBSITES AND MOBILE APPLICATIONS. THE TERM INCLUDES, BUT

IS NOT LIMITED TO, EXCHANGE WAGERING, PARLAYS, OVER-UNDER,

MONEYLINE, POOLS AND STRAIGHT BETS. THE TERM DOES NOT INCLUDE:

(1) PARI-MUTUEL BETTING ON THE OUTCOME OF THOROUGHBRED

OR HARNESS HORSE RACING AS AUTHORIZED UNDER 3 PA.C.S. CH. 93

(RELATING TO RACE HORSE INDUSTRY REFORM).

(2) LOTTERY GAMES OF THE PENNSYLVANIA STATE LOTTERY AS

AUTHORIZED UNDER THE ACT OF AUGUST 26, 1971 (P.L.351, NO.91),

KNOWN AS THE STATE LOTTERY LAW.

(3) BINGO AS AUTHORIZED UNDER THE ACT OF JULY 10, 1981

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(P.L.214, NO.67), KNOWN AS THE BINGO LAW.

(4) SMALL GAMES OF CHANCE AS AUTHORIZED UNDER THE ACT OF

DECEMBER 19, 1988 (P.L.1262, NO.156), KNOWN AS THE LOCAL

OPTION SMALL GAMES OF CHANCE ACT.

(5) SLOT MACHINE GAMING AND PROGRESSIVE SLOT MACHINE

GAMING AS DEFINED AND AUTHORIZED UNDER THIS PART.

(6) KENO.

(7) FANTASY SPORTS CONTESTS.

(8) ILOTTERY UNDER CHAPTER 7 (RELATING TO ILOTTERY).

"SPORTS WAGERING CERTIFICATE." A CERTIFICATE AWARDED BY THE

BOARD UNDER THIS CHAPTER THAT AUTHORIZES A SLOT MACHINE LICENSEE

TO CONDUCT SPORTS WAGERING IN ACCORDANCE WITH THIS CHAPTER.

"SPORTS WAGERING DEVICE." THE TERM INCLUDES ANY MECHANICAL,

ELECTRICAL OR COMPUTERIZED CONTRIVANCE, TERMINAL, MACHINE OR

OTHER DEVICE, APPARATUS, EQUIPMENT OR SUPPLIES APPROVED BY THE

BOARD AND USED TO CONDUCT SPORTS WAGERING.

§ 13C 02. REGULATORY AUTHORITY.

THE BOARD SHALL PROMULGATE REGULATIONS:

(1) ESTABLISHING STANDARDS AND PROCEDURES FOR SPORTS

WAGERING. THE STANDARDS AND PROCEDURES SHALL PROVIDE FOR THE

CONDUCT AND IMPLEMENTATION OF SPORTS WAGERING WITHIN LICENSED

FACILITIES, INCLUDING ANY NEW SPORTS WAGERING OR VARIATIONS

OR COMPOSITES OF APPROVED SPORTS WAGERING, PROVIDED THAT THE

BOARD DETERMINES THAT THE NEW SPORTS WAGERING OR ANY

VARIATIONS OR COMPOSITES OR OTHER APPROVED SPORTS WAGERING

ARE SUITABLE FOR USE AFTER A TEST OR EXPERIMENTAL PERIOD

UNDER THE TERMS AND CONDITIONS AS THE BOARD MAY DEEM

APPROPRIATE.

(2) ESTABLISHING STANDARDS AND RULES TO GOVERN THE

CONDUCT OF SPORTS WAGERING AND THE SYSTEM OF WAGERING,

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INCLUDING THE MANNER IN WHICH WAGERS ARE RECEIVED, PAYOUTS

ARE REMITTED AND POINT SPREADS, LINES AND ODDS ARE

DETERMINED. THE BOARD MAY ALSO ESTABLISH STANDARDS AND RULES

TO GOVERN THE CONDUCT OF SPORTS WAGERING AND THE SYSTEM OF

WAGERING AS A FORM OF INTERACTIVE GAMING AUTHORIZED BY THE

COMMONWEALTH.

(3) ESTABLISHING THE METHOD FOR CALCULATING GROSS SPORTS

WAGERING REVENUE AND STANDARDS FOR THE DAILY COUNTING AND

RECORDING OF CASH AND CASH EQUIVALENTS RECEIVED IN THE

CONDUCT OF SPORTS WAGERING, INCLUDING ENSURING THAT INTERNAL

CONTROLS ARE FOLLOWED AND HOW FINANCIAL BOOKS AND RECORDS ARE

MAINTAINED AND AUDITS ARE CONDUCTED. THE BOARD SHALL CONSULT

WITH THE DEPARTMENT IN ESTABLISHING THE REGULATIONS UNDER

THIS PARAGRAPH.

(4) ESTABLISHING NOTICE REQUIREMENTS PERTAINING TO

MINIMUM AND MAXIMUM WAGERS ON SPORTS WAGERING.

(5) ESTABLISHING COMPULSIVE AND PROBLEM GAMBLING

STANDARDS PERTAINING TO SPORTS WAGERING CONSISTENT WITH THIS

PART.

(6) ESTABLISHING STANDARDS PROHIBITING PERSONS UNDER 21

YEARS OF AGE FROM PARTICIPATING IN SPORTS WAGERING.

(7) PROVIDING INFORMATION PERTAINING TO SPORTS WAGERING

IN THE BOARD'S ANNUAL REPORT REQUIRED UNDER SECTION 1211(A.1)

(RELATING TO REPORTS OF BOARD).

(8) REQUIRING EACH CERTIFICATE HOLDER TO:

(I) PROVIDE WRITTEN INFORMATION ABOUT SPORTS

WAGERING RULES, PAYOUTS OR WINNING WAGERS AND OTHER

INFORMATION AS THE BOARD MAY REQUIRE.

(II) PROVIDE SPECIFICATIONS APPROVED BY THE BOARD

UNDER SECTION 1207(11) (RELATING TO REGULATORY AUTHORITY

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OF BOARD) TO INTEGRATE AND UPDATE THE LICENSED FACILITY'S

SURVEILLANCE SYSTEM TO COVER ALL AREAS WHERE SPORTS

WAGERING IS CONDUCTED. THE SPECIFICATIONS SHALL INCLUDE

PROVISIONS PROVIDING THE BOARD AND OTHER PERSONS

AUTHORIZED BY THE BOARD WITH ONSITE ACCESS TO THE SYSTEM

OR ITS SIGNAL.

(III) DESIGNATE ONE OR MORE LOCATIONS WITHIN THE

LICENSED FACILITY OF THE CERTIFICATE HOLDER TO CONDUCT

SPORTS WAGERING.

(IV) ENSURE THAT VISIBILITY IN THE LICENSED FACILITY

OF THE CERTIFICATE HOLDER IS NOT OBSTRUCTED IN ANY WAY

THAT COULD INTERFERE WITH THE ABILITY OF THE CERTIFICATE

HOLDER, THE BOARD AND OTHER PERSONS AUTHORIZED UNDER THIS

PART OR BY THE BOARD TO OVERSEE THE SURVEILLANCE OF THE

CONDUCT OF SPORTS WAGERING.

(V) INTEGRATE THE LICENSED FACILITY'S COUNT ROOM TO

ENSURE MAXIMUM SECURITY OF THE COUNTING AND STORAGE OF

CASH AND CASH EQUIVALENTS.

(VI) EQUIP EACH DESIGNATED LOCATION WITHIN THE

LICENSED FACILITY PROVIDING SPORTS WAGERING WITH A SIGN

INDICATING THE PERMISSIBLE SPORTS WAGERING MINIMUM AND

MAXIMUM WAGERS.

(VII) ENSURE THAT NO PERSON UNDER 21 YEARS OF AGE

PARTICIPATES IN SPORTS WAGERING.

§ 13C 03. TEMPORARY SPORTS WAGERING REGULATIONS.

(A) PROMULGATION.--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 REGULATIONS. THE BOARD MAY PROMULGATE TEMPORARY

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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.

(B) EXPIRATION.--EXCEPT FOR TEMPORARY REGULATIONS GOVERNING

THE RULES OF NEW SPORTS WAGERING APPROVED BY THE BOARD, 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.

§ 13C04. UNAUTHORIZED SPORTS WAGERING.

(A) OFFENSE DEFINED.--

(1) IT SHALL BE UNLAWFUL FOR ANY PERSON TO WILLFULLY AND

KNOWINGLY OPERATE, CARRY ON, OFFER OR EXPOSE FOR PLAY ANY

SPORTS WAGERING OR TO ACCEPT A BET OR WAGER ASSOCIATED WITH

SPORTS WAGERING FROM ANY PERSON PHYSICALLY LOCATED IN THIS

COMMONWEALTH AT THE TIME OF PLAY THAT IS NOT WITHIN THE SCOPE

OF A VALID AND CURRENT SPORTS WAGERING CERTIFICATE ISSUED BY

THE BOARD UNDER THIS CHAPTER OR BY ANOTHER STATE, TERRITORY

OR POSSESSION OF THE UNITED STATES WITH WHICH THE

COMMONWEALTH HAS A SPORTS WAGERING AGREEMENT.

(2) IT SHALL BE UNLAWFUL FOR ANY PERSON TO WILLFULLY AND

KNOWINGLY PROVIDE SERVICES WITH RESPECT TO ANY SPORTS

WAGERING OR BET OR WAGER SPECIFIED IN PARAGRAPH (1).

(B) GRADING OF OFFENSE.--A PERSON WHO VIOLATES SUBSECTION

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(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.

(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

(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; OR

(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 ENGAGES IN SPORTS WAGERING FROM

A LOCATION IN WHICH THE ACTIVITY IS UNAUTHORIZED, THE PERSON

SHALL FORFEIT ALL ENTITLEMENT TO ANY WINNINGS AND THE MONEY

ASSOCIATED WITH ANY FORFEITED WINNINGS SHALL BE DEPOSITED INTO

THE COMPULSIVE AND PROBLEM GAMBLING TREATMENT FUND ESTABLISHED

UNDER SECTION 1509(B) (RELATING TO COMPULSIVE AND PROBLEM

GAMBLING PROGRAM).

(E) TAX LIABILITY.--

(1) AN UNLICENSED PERSON WHO OFFER S SPORTS WAGERING TO

PERSONS IN THIS COMMONWEALTH SHALL BE LIABLE FOR ALL TAXES

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REQUIRED BY THIS CHAPTER IN THE SAME MANNER AND AMOUNTS AS IF

THE PERSON WERE A LICENSEE.

(2) TIMELY PAYMENT OF THE TAXES MAY NOT CONSTITUTE A

DEFENSE TO ANY PROSECUTION OR OTHER PROCEEDING IN CONNECTION

WITH UNAUTHORIZED SPORTS WAGERING, EXCEPT FOR A PROSECUTION

OR PROCEEDING ALLEGING FAILURE TO MAKE SUCH PAYMENT.

SUBCHAPTER B

SPORTS WAGERING AUTHORIZED

SEC.

13C11. AUTHORIZATION TO CONDUCT SPORTS WAGERING.

13C12. PETITION REQUIREMENTS.

13C13. STANDARD FOR REVIEW OF PETITIONS.

13C14. AWARD OF CERTIFICATE.

13C15. SPORTS WAGERING CERTIFICATE.

13C16. SPORTS WAGERING BY SUPPLIERS AND MANUFACTURERS.

§ 13C11. AUTHORIZATION TO CONDUCT SPORTS WAGERING.

(A) PERSONS WHO MAY BE AUTHORIZED.--

(1) (I) THE BOARD MAY AUTHORIZE A SLOT MACHINE LICENSEE

TO CONDUCT SPORTS WAGERING AND TO OPERATE A SYSTEM OF

WAGERING ASSOCIATED WITH THE CONDUCT OF SPORTS WAGERING

AT THE SLOT MACHINE LICENSEE'S LICENSED FACILITY, A

TEMPORARY FACILITY AUTHORIZED UNDER SECTION 13C 21(B)

(RELATING TO AUTHORIZED LOCATIONS FOR OPERATION), AN AREA

AUTHORIZED UNDER SECTION 13C 21(C) OR THROUGH AN INTERNET-

BASED SYSTEM.

(II) AUTHORIZATION SHALL BE CONTINGENT UPON THE SLOT

MACHINE LICENSEE'S AGREEMENT TO ENSURE THAT SPORTS

WAGERING WILL BE CONDUCTED IN ACCORDANCE WITH THIS PART

AND ANY OTHER CONDITIONS ESTABLISHED BY THE BOARD.

(III) NOTHING IN THIS PART SHALL BE CONSTRUED TO

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CREATE A SEPARATE LICENSE GOVERNING THE CONDUCT OF SPORTS

WAGERING BY SLOT MACHINE LICENSEES WITHIN THIS

COMMONWEALTH.

(2) THE BOARD MAY AUTHORIZE A SPORTS WAGERING

CERTIFICATE HOLDER TO CONDUCT SPORTS WAGERING AND TO OPERATE

A SYSTEM OF WAGERING ASSOCIATED WITH THE CONDUCT OF SPORTS

WAGERING AS A FORM OF INTERACTIVE GAMING AUTHORIZED BY THE

COMMONWEALTH.

(3) (I) EXCEPT AS PROVIDED IN THIS PART, ALL

INDIVIDUALS WAGERING ON SPORTING EVENTS THROUGH

AUTHORIZED SPORTS WAGERING MUST BE PHYSICALLY LOCATED

WITHIN THIS COMMONWEALTH OR WITHIN A STATE OR

JURISDICTION WITH WHICH THE BOARD HAS ENTERED A SPORTS

WAGERING AGREEMENT.

(II) NO INDIVIDUAL UNDER 21 YEARS OF AGE MAY MAKE A

WAGER OR BET ON SPORTING EVENTS THROUGH AUTHORIZED SPORTS

WAGERING OR HAVE ACCESS TO THE DESIGNATED AREA OF THE

LICENSED FACILITY AUTHORIZED TO HOST SPORTS WAGERING.

(B) FEDERAL AUTHORIZATION.--

(1) THE SECRETARY OF THE COMMONWEALTH SHALL, WHEN

FEDERAL LAW IS ENACTED OR REPEALED OR A FEDERAL COURT

DECISION IS FILED THAT AFFIRMS THE AUTHORITY OF A STATE TO

REGULATE SPORTS WAGERING, PUBLISH A NOTICE IN THE

PENNSYLVANIA BULLETIN CERTIFYING THE ENACTMENT OR REPEAL OR

THE FILING OF THE DECISION.

(2) THE BOARD MAY NOT AUTHORIZE THE CONDUCT OF SPORTS

WAGERING IN THIS COMMONWEALTH UNTIL THE NOTICE IS PUBLISHED

AS PRESCRIBED IN PARAGRAPH (1).

§ 13C 12. PETITION REQUIREMENTS.

(A) GENERAL RULE.--UNLESS OTHERWISE PROHIBITED UNDER SECTION

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13A13 (RELATING TO PROHIBITIONS), A SLOT MACHINE LICENSEE MAY

SEEK APPROVAL TO CONDUCT SPORTS WAGERING BY FILING A PETITION

WITH THE BOARD.

(B) PETITION CONTENTS.--A PETITION SEEKING AUTHORIZATION TO

CONDUCT SPORTS WAGERING SHALL INCLUDE THE FOLLOWING:

(1) THE NAME, BUSINESS ADDRESS AND CONTACT INFORMATION

OF THE PETITIONER.

(2) THE NAME, BUSINESS ADDRESS, JOB TITLE AND A

PHOTOGRAPH OF EACH PRINCIPAL AND KEY EMPLOYEE OF THE

PETITIONER WHO WILL BE INVOLVED IN THE CONDUCT OF SPORTS

WAGERING AND WHO IS NOT CURRENTLY LICENSED BY THE BOARD, IF

KNOWN.

(3) A BRIEF DESCRIPTION OF THE ECONOMIC BENEFITS

EXPECTED TO BE REALIZED BY THE COMMONWEALTH, ITS

MUNICIPALITIES AND ITS RESIDENTS IF SPORTS WAGERING IS

AUTHORIZED AT THE PETITIONER'S LICENSED FACILITY.

(4) THE DETAILS OF ANY FINANCING OBTAINED OR THAT WILL

BE OBTAINED TO FUND AN EXPANSION OR MODIFICATION OF THE

LICENSED FACILITY TO ACCOMMODATE SPORTS WAGERING AND TO

OTHERWISE FUND THE COST OF COMMENCING SPORTS WAGERING.

(5) 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.

(6) INFORMATION AND DOCUMENTATION, AS THE BOARD MAY

REQUIRE, TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT

THE PETITIONER HAS SUFFICIENT BUSINESS ABILITY AND EXPERIENCE

TO CREATE AND MAINTAIN A SUCCESSFUL SPORTS WAGERING

OPERATION. IN MAKING THIS DETERMINATION, THE BOARD MAY

CONSIDER THE PERFORMANCE OF THE PETITIONER'S SLOT MACHINE AND

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TABLE GAME OPERATION, INCLUDING FINANCIAL INFORMATION,

EMPLOYMENT DATA AND CAPITAL INVESTMENT.

(7) INFORMATION AND DOCUMENTATION, AS THE BOARD MAY

REQUIRE, TO ESTABLISH BY CLEAR AND CONVINCING EVIDENCE THAT

THE PETITIONER HAS OR WILL HAVE THE FINANCIAL ABILITY TO PAY

THE AUTHORIZATION FEE UNDER SECTION 13C 61 (RELATING TO SPORTS

WAGERING AUTHORIZATION FEE).

(8) DETAILED SITE PLANS IDENTIFYING THE PETITIONER'S

PROPOSED SPORTS WAGERING AREA WITHIN THE LICENSED FACILITY.

(9) OTHER INFORMATION AS THE BOARD MAY REQUIRE.

UNDER SUBSECTION (B)(4), (5), (6), (7) AND (8) MAY BE CONSIDERED

CONFIDENTIAL BY THE BOARD IF THE INFORMATION WOULD BE

CONFIDENTIAL UNDER SECTION 1206(F) (RELATING TO BOARD MINUTES

AND RECORDS).

§ 13C 13. STANDARD FOR REVIEW OF PETITIONS.

(A) GENERAL RULE.--THE BOARD SHALL APPROVE A PETITION IF THE

PETITIONER ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE, ALL OF

THE FOLLOWING:

(1) THE PETITIONER'S SLOT MACHINE LICENSE IS IN GOOD

STANDING WITH THE BOARD.

(2) THE CONDUCT OF SPORTS WAGERING AT THE PETITIONER'S

LICENSED FACILITY WILL HAVE A POSITIVE ECONOMIC IMPACT ON THE

COMMONWEALTH, ITS MUNICIPALITIES AND RESIDENTS THROUGH

INCREASED REVENUES AND EMPLOYMENT OPPORTUNITIES.

(3) THE PETITIONER POSSESSES ADEQUATE FUNDS OR HAS

SECURED ADEQUATE FINANCING TO:

(I) FUND ANY NECESSARY EXPANSION OR MODIFICATION OF

THE PETITIONER'S LICENSED FACILITY TO ACCOMMODATE THE

CONDUCT OF SPORTS WAGERING.

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(II) PAY THE AUTHORIZATION FEE IN ACCORDANCE WITH

SECTION 13C 61 (RELATING TO SPORTS WAGERING AUTHORIZATION

FEE).

(III) COMMENCE SPORTS WAGERING OPERATIONS AT ITS

LICENSED FACILITY.

(4) THE PETITIONER HAS THE FINANCIAL STABILITY,

INTEGRITY AND RESPONSIBILITY TO CONDUCT SPORTS WAGERING.

(5) THE PETITIONER HAS SUFFICIENT BUSINESS ABILITY AND

EXPERIENCE TO CREATE AND MAINTAIN A SUCCESSFUL SPORTS

WAGERING OPERATION.

(6) THE PETITIONER'S PROPOSED INTERNAL AND EXTERNAL

SECURITY AND PROPOSED SURVEILLANCE MEASURES WITHIN THE AREA

OF THE LICENSED FACILITY WHERE THE PETITIONER SEEKS TO

CONDUCT SPORTS WAGERING ARE ADEQUATE.

(7) THE PETITIONER HAS SATISFIED THE PETITION

APPLICATION REQUIREMENTS AND PROVIDED ANY OTHER INFORMATION

REQUIRED BY SECTION 13C 12(B) (RELATING TO PETITION

REQUIREMENTS).

(B) TIMING OF APPROVAL.--THE BOARD SHALL APPROVE OR DENY A

PETITION WITHIN 90 DAYS FOLLOWING RECEIPT OF THE PETITION.

§ 13C14. AWARD OF CERTIFICATE.

(A) GENERAL RULE.--UPON APPROVAL OF A PETITION, THE BOARD

SHALL AWARD A SPORTS WAGERING CERTIFICATE TO THE PETITIONER. THE

AWARD OF A SPORTS WAGERING CERTIFICATE PRIOR TO THE PAYMENT IN

FULL OF THE AUTHORIZATION FEE REQUIRED BY SECTION 13C 61

(RELATING TO SPORTS WAGERING AUTHORIZATION FEE) SHALL NOT

RELIEVE THE PETITIONER FROM COMPLYING WITH THE PROVISIONS OF

SECTION 13C 61.

(B) STATEMENT OF CONDITIONS.--UPON AWARDING A SPORTS

WAGERING OPERATION CERTIFICATE, THE BOARD SHALL AMEND THE SLOT

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MACHINE LICENSEE'S STATEMENT OF CONDITIONS PERTAINING TO THE

REQUIREMENTS OF THIS CHAPTER.

POWER OF THE BOARD TO DENY, REVOKE OR SUSPEND A SPORTS WAGERING

CERTIFICATE ISSUED IN ACCORDANCE WITH THE REQUIREMENTS OF THIS

SECTION, A SPORTS WAGERING CERTIFICATE SHALL BE RENEWED EVERY

FIVE YEARS AND SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION

1326 (RELATING TO RENEWALS).

§ 13C15. SPORTS WAGERING CERTIFICATE.

THE FOLLOWING SHALL APPLY:

(1) A SPORTS WAGERING CERTIFICATE SHALL BE IN EFFECT

UNLESS:

(I) SUSPENDED OR REVOKED BY THE BOARD CONSISTENT

WITH THE REQUIREMENTS OF THIS PART;

(II) THE SLOT MACHINE LICENSE HELD BY THE

CERTIFICATE HOLDER IS SUSPENDED, REVOKED OR NOT RENEWED

BY THE BOARD CONSISTENT WITH THE REQUIREMENTS OF THIS

PART; OR

(III) THE CERTIFICATE HOLDER RELINQUISHES OR DOES

NOT SEEK RENEWAL OF ITS SLOT MACHINE LICENSE.

(2) A CERTIFICATE HOLDER THAT FAILS TO ABIDE BY THIS

CHAPTER OR ANY CONDITION CONTAINED IN THE SLOT MACHINE

LICENSEE'S STATEMENT OF CONDITIONS GOVERNING THE CONDUCT OF

SPORTS WAGERING SHALL BE SUBJECT TO BOARD-IMPOSED

ADMINISTRATIVE SANCTIONS OR OTHER PENALTIES AUTHORIZED UNDER

THIS PART.

§ 13C 16. SPORTS WAGERING BY SUPPLIERS AND MANUFACTURERS.

(A) SUPPLIERS.--A PERSON THAT SELLS, LEASES, OFFERS OR

OTHERWISE PROVIDES, DISTRIBUTES OR SERVICES ANY SPORTS WAGERING

DEVICE OR ASSOCIATED EQUIPMENT FOR USE OR OPERATION IN THIS

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COMMONWEALTH FOR SPORTS WAGERING PURPOSES SHALL BE LICENSED BY

THE BOARD UNDER SECTION 1317 (RELATING TO SUPPLIER LICENSES) AND

SHALL BE SUBJECT TO APPLICATION AND LICENSURE FEES AND FINES AS

PRESCRIBED UNDER SECTION 1208 (RELATING TO COLLECTION OF FEES

AND FINES), AS DETERMINED BY THE BOARD.

(B) MANUFACTURERS.--A PERSON WHO MANUFACTURES, BUILDS,

REBUILDS, FABRICATES, ASSEMBLES, PRODUCES, PROGRAMS, DESIGNS OR

OTHERWISE MAKES MODIFICATIONS TO ANY SPORTS WAGERING DEVICE OR

ASSOCIATED EQUIPMENT FOR USE OR OPERATION IN THIS COMMONWEALTH

FOR SPORTS WAGERING PURPOSES SHALL BE LICENSED BY THE BOARD

UNDER SECTION 1317.1 (RELATING TO MANUFACTURER LICENSES) AND

SHALL BE SUBJECT TO APPLICATION AND LICENSURE FEES AND FINES AS

PRESCRIBED UNDER SECTION 1208, AS DETERMINED BY THE BOARD.

SUBCHAPTER C

CONDUCT OF SPORTS WAGERING

SEC.

13C21. AUTHORIZED LOCATIONS FOR OPERATION.

13C22. COMMENCEMENT OF SPORTS WAGERING OPERATIONS.

13C23. CONDITION OF CONTINUED OPERATION.

13C24. KEY EMPLOYEES AND OCCUPATION PERMITS.

13C25. APPLICATION OF CLEAN INDOOR AIR ACT.

13C26. APPLICATION OF LIQUOR CODE.

§ 13C21. AUTHORIZED LOCATIONS FOR OPERATION.

(A) RESTRICTION.--A CERTIFICATE HOLDER MAY ONLY BE PERMITTED

TO CONDUCT SPORTS WAGERING AT THE LICENSED FACILITY, A TEMPORARY

FACILITY AUTHORIZED UNDER SUBSECTION (B), AN AREA AUTHORIZED

UNDER SUBSECTION (C) OR THROUGH AN INTERNET-BASED SYSTEM.

(B) TEMPORARY FACILITIES.--THE BOARD MAY PERMIT A

CERTIFICATE HOLDER TO CONDUCT SPORTS WAGERING AT A TEMPORARY

FACILITY THAT IS PHYSICALLY CONNECTED TO, ATTACHED TO OR

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ADJACENT TO A LICENSED FACILITY FOR A PERIOD NOT TO EXCEED 24

MONTHS.

(1) UPON REQUEST MADE BY A CERTIFICATE HOLDER, THE BOARD

MAY DETERMINE THE SUITABILITY OF A CATEGORY 1 LICENSED GAMING

ENTITY THAT IS ALSO A LICENSED RACING ENTITY AUTHORIZED TO

CONDUCT PARI-MUTUEL WAGERING AT NONPRIMARY LOCATIONS UNDER 3

PA.C.S. CH. 93 (RELATING TO RACE HORSE INDUSTRY REFORM) TO

CONDUCT SPORTS WAGERING AT NONPRIMARY LOCATIONS.

(2) NO CERTIFICATE HOLDER MAY BE APPROVED TO CONDUCT

SPORTS WAGERING IN A NONPRIMARY LOCATION UNLESS THE AREAS ARE

EQUIPPED WITH ADEQUATE SECURITY AND SURVEILLANCE EQUIPMENT TO

ENSURE THE INTEGRITY OF THE CONDUCT OF SPORTS WAGERING.

(3) AN AUTHORIZATION GRANTED UNDER THIS SUBSECTION MAY

NOT:

(I) IMPOSE ANY CRITERIA OR REQUIREMENTS REGARDING

THE CONTENTS OR STRUCTURE OF A NONPRIMARY LOCATION THAT

ARE UNRELATED TO THE CONDUCT OF SPORTS WAGERING.

(II) AUTHORIZE THE PLACEMENT OR OPERATION OF SLOT

MACHINES OR TABLE GAMES IN A NONPRIMARY LOCATION.

§ 13C 22. COMMENCEMENT OF SPORTS WAGERING OPERATIONS.

NO CERTIFICATE HOLDER MAY OPERATE OR OFFER SPORTS WAGERING

UNTIL THE BOARD DETERMINES THAT:

(1) THE CERTIFICATE HOLDER IS IN COMPLIANCE WITH THE

REQUIREMENTS OF THIS PART.

(2) THE CERTIFICATE HOLDER IS PREPARED IN ALL RESPECTS

TO OFFER SPORTS WAGERING PLAY TO THE PUBLIC AT THE LICENSED

FACILITY.

(3) THE CERTIFICATE HOLDER HAS IMPLEMENTED NECESSARY

INTERNAL AND MANAGEMENT CONTROLS AND SECURITY ARRANGEMENTS

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AND SURVEILLANCE SYSTEMS FOR THE CONDUCT OF SPORTS WAGERING.

(4) THE CERTIFICATE HOLDER IS IN COMPLIANCE WITH OR HAS

COMPLIED WITH SECTION 13C 61 (RELATING TO SPORTS WAGERING

AUTHORIZATION FEE).

(5) OTHER CONDITIONS AS THE BOARD MAY REQUIRE TO

IMPLEMENT THE CONDUCT OF SPORTS WAGERING.

§ 13C 23. CONDITION OF CONTINUED OPERATION.

AS A CONDITION OF CONTINUED OPERATION, A CERTIFICATE HOLDER

SHALL AGREE TO MAINTAIN ALL BOOKS, RECORDS AND DOCUMENTS

PERTAINING TO SPORTS WAGERING IN A MANNER AND LOCATION WITHIN

THIS COMMONWEALTH AS APPROVED BY THE BOARD. ALL BOOKS, RECORDS

AND DOCUMENTS RELATED TO SPORTS WAGERING SHALL BE:

(1) SEGREGATED BY SEPARATE ACCOUNTS WITHIN THE

CERTIFICATE HOLDER'S BOOKS, RECORDS AND DOCUMENTS, EXCEPT FOR

ANY BOOKS, RECORDS OR DOCUMENTS THAT ARE COMMON TO SLOT

MACHINE, TABLE GAME AND SPORTS WAGERING OPERATIONS;

(2) IMMEDIATELY AVAILABLE FOR INSPECTION UPON REQUEST OF

THE BOARD, THE BUREAU, THE DEPARTMENT, THE PENNSYLVANIA STATE

POLICE OR THE ATTORNEY GENERAL, OR AGENTS THEREOF, DURING ALL

HOURS OF OPERATION OF THE CERTIFICATE HOLDER IN ACCORDANCE

WITH REGULATIONS PROMULGATED BY THE BOARD; AND

(3) MAINTAINED FOR A PERIOD AS THE BOARD, BY REGULATION,

MAY REQUIRE.

§ 13C 24. KEY EMPLOYEES AND OCCUPATION PERMITS.

NOTHING IN THIS PART SHALL BE CONSTRUED TO REQUIRE ANY

INDIVIDUAL WHO HOLDS A PRINCIPAL LICENSE, A KEY EMPLOYEE LICENSE

OR A GAMING EMPLOYEE OCCUPATION PERMIT UNDER CHAPTER 13

(RELATING TO LICENSEES) TO OBTAIN A SEPARATE LICENSE OR PERMIT

TO BE EMPLOYED IN A CERTIFICATE HOLDER'S SPORTS WAGERING

OPERATION AUTHORIZED UNDER THIS CHAPTER.

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§ 13C 25. APPLICATION OF CLEAN INDOOR AIR ACT.

FOR THE PURPOSE OF SECTION 3(B)(11) OF THE ACT OF JUNE 13,

2008 (P.L.182, NO.27), KNOWN AS THE CLEAN INDOOR AIR ACT, THE

TERM "GAMING FLOOR" SHALL INCLUDE THE AREAS OF ANY FACILITY

WHERE THE CERTIFICATE HOLDER IS AUTHORIZED TO CONDUCT SPORTS

WAGERING, EXCEPT SUCH AREAS OFF THE GAMING FLOOR WHERE CONTESTS

OR TOURNAMENTS ARE CONDUCTED UNLESS SMOKING IS OTHERWISE

PERMITTED IN SUCH AREAS.

§ 13C26. APPLICATION OF LIQUOR CODE.

THE PROVISIONS OF SECTION 493(24)(II) OF THE ACT OF APRIL 12,

1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, SHALL ALSO APPLY

TO SPORTS WAGERING.

SUBCHAPTER D

SPORTS WAGERING TAXES AND FEES

SEC.

13C 61. SPORTS WAGERING AUTHORIZATION FEE.

13C 62. SPORTS WAGERING TAX.

13C 63. LOCAL SHARE ASSESSMENT.

13C 64. COMPULSIVE AND PROBLEM GAMBLING.

§ 13C61. SPORTS WAGERING AUTHORIZATION FEE.

(A) AMOUNT.--EACH SLOT MACHINE LICENSEE THAT IS ISSUED A

SPORTS WAGERING CERTIFICATE TO CONDUCT SPORTS WAGERING IN

ACCORDANCE WITH SECTION 13C 11 (RELATING TO AUTHORIZATION TO

CONDUCT SPORTS WAGERING) SHALL PAY A ONE-TIME NONREFUNDABLE

AUTHORIZATION FEE IN THE AMOUNT OF $10,000,000.

(B) PAYMENT OF FEE.--A SLOT MACHINE LICENSEE SHALL REMIT THE

AUTHORIZATION FEE UNDER SUBSECTION (A) TO THE BOARD WITHIN 60

DAYS OF THE APPROVAL OF A PETITION TO CONDUCT SPORTS WAGERING.

THE BOARD MAY ALLOW THE FEE TO BE PAID IN INSTALLMENTS, PROVIDED

ALL INSTALLMENTS ARE PAID WITHIN THE 60-DAY PERIOD. IN THAT

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EVENT, THE BOARD AND THE SLOT MACHINE LICENSEE SHALL ENTER INTO

A WRITTEN AGREEMENT SETTING FORTH THE TERMS OF PAYMENT. SPORTS

WAGERING MAY NOT BE CONDUCTED UNTIL THE FEE UNDER SUBSECTION (A)

IS PAID IN FULL.

THIS CHAPTER, A SLOT MACHINE LICENSEE THAT IS ISSUED A SPORTS

WAGERING CERTIFICATE SHALL PAY A RENEWAL FEE IN THE AMOUNT OF

$250,000 UPON THE RENEWAL OF ITS SPORTS WAGERING CERTIFICATE IN

ACCORDANCE WITH SECTIONS 1326 (RELATING TO RENEWALS) AND

13C 14(C) (RELATING TO AWARD OF CERTIFICATE).

(D) FAILURE TO PAY BY DEADLINE.--IF A PETITIONER OR

CERTIFICATE HOLDER FAILS TO PAY THE REQUIRED AUTHORIZATION FEE

IN FULL WITHIN THE 60-DAY TIME PERIOD, THE BOARD SHALL IMPOSE A

PENALTY AND MAY GRANT THE PETITIONER OR CERTIFICATE HOLDER UP TO

A SIX-MONTH EXTENSION TO PAY THE AUTHORIZATION FEE OR ANY

REMAINING PORTION OF THE AUTHORIZATION FEE AND THE PENALTY.

(E) SUSPENSION OF CERTIFICATE.--THE BOARD SHALL SUSPEND THE

SPORTS WAGERING CERTIFICATE IF THE CERTIFICATE HOLDER FAILS TO

PAY THE TOTAL AUTHORIZATION FEE AND THE PENALTY PRIOR TO THE

EXPIRATION OF AN EXTENSION PERIOD GRANTED UNDER SUBSECTION (D).

THE SUSPENSION SHALL REMAIN IN EFFECT UNTIL FINAL PAYMENT IS

MADE.

(F) DEPOSIT OF FEES.--NOTWITHSTANDING SECTION 1208 (RELATING

TO COLLECTION OF FEES AND FINES), ALL SPORTS WAGERING

AUTHORIZATION FEES OR PENALTIES RECEIVED BY THE BOARD UNDER THIS

SUBCHAPTER, ALL SPORTS WAGERING DEVICE AND ASSOCIATED EQUIPMENT

MANUFACTURER AND SUPPLIER LICENSE FEES, ALL SPORTS WAGERING

DEVICE OR ASSOCIATED EQUIPMENT MANUFACTURER AND SUPPLIER RENEWAL

FEES AND ALL FEES FOR LICENSES ISSUED UNDER CHAPTER 16 (RELATING

TO JUNKETS) SHALL BE DEPOSITED INTO THE GENERAL FUND.

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§ 13C 62. SPORTS WAGERING TAX.

(A) IMPOSITION.--EACH CERTIFICATE HOLDER SHALL REPORT TO THE

DEPARTMENT AND PAY FROM ITS DAILY GROSS SPORTS WAGERING REVENUE,

ON A FORM AND IN THE MANNER PRESCRIBED BY THE DEPARTMENT, A TAX

OF 16% OF ITS DAILY GROSS SPORTS WAGERING REVENUE.

(B) DEPOSITS AND DISTRIBUTIONS.--

(1) THE TAX IMPOSED UNDER SUBSECTION (A) SHALL BE

PAYABLE TO THE DEPARTMENT ON A WEEKLY BASIS AND SHALL BE

BASED UPON GROSS SPORTS WAGERING 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

CERTIFICATE HOLDER UNTIL THE FUNDS ARE PAID TO THE

DEPARTMENT. UNLESS OTHERWISE AGREED TO BY THE BOARD, A

CERTIFICATE HOLDER SHALL ESTABLISH A SEPARATE BANK ACCOUNT

INTO WHICH GROSS SPORTS WAGERING REVENUE SHALL BE DEPOSITED

AND MAINTAINED UNTIL SUCH TIME AS THE FUNDS ARE PAID TO THE

DEPARTMENT UNDER THIS SECTION OR PAID INTO THE FUND UNDER

SECTION 13C 63(A) (RELATING TO LOCAL SHARE ASSESSMENT).

(3) THE TAX IMPOSED UNDER SUBSECTION (A) SHALL BE

DEPOSITED INTO THE GENERAL FUND.

§ 13C63. LOCAL SHARE ASSESSMENT.

(A) REQUIRED PAYMENT.--IN ADDITION TO THE TAX IMPOSED UNDER

SECTION 13C 62 (RELATING TO SPORTS WAGERING TAX), EACH

CERTIFICATE HOLDER SHALL PAY ON A WEEKLY BASIS, ON A FORM AND IN

THE MANNER PRESCRIBED BY THE DEPARTMENT, A LOCAL SHARE

ASSESSMENT INTO A RESTRICTED RECEIPTS ACCOUNT ESTABLISHED WITHIN

THE FUND. ALL MONEY OWED UNDER THIS SECTION SHALL BE HELD IN

TRUST BY THE CERTIFICATE HOLDER UNTIL THE MONEY IS PAID INTO THE

RESTRICTED ACCOUNT. FUNDS IN THE RESTRICTED ACCOUNT ARE HEREBY

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APPROPRIATED TO THE DEPARTMENT ON A CONTINUING BASIS FOR THE

PURPOSES SET FORTH UNDER THIS SECTION.

(B) DISTRIBUTIONS.--THE DEPARTMENT SHALL MAKE QUARTERLY

DISTRIBUTIONS FROM THE LOCAL SHARE ASSESSMENTS DEPOSITED INTO

THE RESTRICTED ACCOUNT UNDER SUBSECTION (A) TO COUNTIES,

INCLUDING HOME RULE COUNTIES, AND TO MUNICIPALITIES, INCLUDING

HOME RULE MUNICIPALITIES, IN ACCORDANCE WITH THE FOLLOWING:

(1) FOR SPORTS WAGERING CONDUCTED AT LICENSED

FACILITIES, THE LOCAL SHARE ASSESSMENT SHALL BE DISTRIBUTED

AS FOLLOWS:

(I) FIFTY PERCENT TO THE COUNTY IN WHICH THE

LICENSED FACILITY IS LOCATED.

(II) FIFTY PERCENT TO THE MUNICIPALITY IN WHICH THE

LICENSED FACILITY IS LOCATED.

(2) FOR SPORTS WAGERING CONDUCTED AT NONPRIMARY

LOCATIONS, THE LOCAL SHARE ASSESSMENT SHALL BE DISTRIBUTED AS

FOLLOWS:

(I) FIFTY PERCENT TO THE COUNTY IN WHICH THE

NONPRIMARY LOCATION IS LOCATED.

(II) FIFTY PERCENT TO THE MUNICIPALITY IN WHICH THE

NONPRIMARY LOCATION IS LOCATED.

WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS

SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"LOCAL SHARE ASSESSMENT." TWO PERCENT OF A CERTIFICATE

HOLDER'S DAILY GROSS SPORTS WAGERING REVENUE.

§ 13C 64. COMPULSIVE AND PROBLEM GAMBLING.

THE FOLLOWING SHALL APPLY:

(1) EACH YEAR, FROM THE TAX IMPOSED UNDER SECTION 13C 62

(RELATING TO SPORTS WAGERING TAX), $2,000,000 OR AN AMOUNT

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EQUAL TO 0.002 MULTIPLIED BY THE TOTAL GROSS SPORTS WAGERING

REVENUE OF ALL ACTIVE AND OPERATING SPORTS WAGERING

CERTIFICATE HOLDERS, WHICHEVER IS GREATER, SHALL BE

TRANSFERRED INTO THE COMPULSIVE AND PROBLEM GAMBLING

TREATMENT FUND ESTABLISHED UNDER SECTION 1509 (RELATING TO

COMPULSIVE AND PROBLEM GAMBLING PROGRAM).

(2) EACH YEAR, FROM THE TAX IMPOSED UNDER SECTION 13C 62,

$2,000,000 OR AN AMOUNT EQUAL TO 0.002 MULTIPLIED BY THE

TOTAL GROSS SPORTS WAGERING REVENUE OF ALL ACTIVE AND

OPERATING SPORTS WAGERING CERTIFICATE HOLDERS, WHICHEVER IS

GREATER, SHALL BE TRANSFERRED TO THE DEPARTMENT OF HEALTH TO

BE USED FOR DRUG AND ALCOHOL ADDICTION TREATMENT SERVICES,

INCLUDING TREATMENT FOR DRUG AND ALCOHOL ADDICTION RELATED TO

COMPULSIVE AND PROBLEM GAMBLING, AS SET FORTH UNDER SECTION

1509.1 (RELATING TO DRUG AND ALCOHOL TREATMENT).

SUBCHAPTER E

MISCELLANEOUS PROVISIONS

SEC.

13C 71. CRIMINAL ACTIVITY.

§ 13C 71. CRIMINAL ACTIVITY.

SPORTS WAGERING CONDUCTED BY A CERTIFICATE HOLDER IN

ACCORDANCE WITH THIS CHAPTER SHALL NOT CONSTITUTE A CRIMINAL

ACTIVITY UNDER 18 PA.C.S. § 5514 (RELATING TO POOL SELLING AND

BOOKMAKING).

CHAPTER 13D

SLOT MACHINES AT NONPRIMARY LOCATIONS

SUBCHAPTER

A. GENERAL PROVISIONS

B. CATEGORY 1 LICENSED GAMING ENTITIES AND NONPRIMARY

LOCATIONS

20170HB0271PN1942 - 410 -

C. APPLICATION AND ISSUANCE OF NONPRIMARY LOCATION PERMIT

D. FEES AND TAXES

SUBCHAPTER A

GENERAL PROVISIONS

SEC.

13D01. DEFINITIONS.

13D02. AUTHORITY TO PLACE SLOT MACHINES AT NONPRIMARY

LOCATIONS.

13D03. TEMPORARY REGULATIONS.

§ 13D01. 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:

"CONSUMER PRICE INDEX." 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.

"NONPRIMARY LOCATION." AS DEFINED IN 3 PA.C.S. § 9301

(RELATING TO DEFINITIONS).

"NONPRIMARY LOCATION PERMIT." THE PERMIT ISSUED TO A

CATEGORY 1 SLOT MACHINE LICENSEE AUTHORIZING THE PLACEMENT AND

OPERATION OF SLOT MACHINES AT A NONPRIMARY LOCATION.

"NONPRIMARY LOCATION PERMIT HOLDER." A CATEGORY 1 SLOT

MACHINE LICENSEE THAT HAS BEEN APPROVED FOR AND ISSUED A PERMIT

TO PLACE AND MAKE SLOT MACHINES AVAILABLE FOR PLAY AT A

NONPRIMARY LOCATION.

"PRIMARY MARKET AREA." AN AREA WITHIN 35 LINEAR MILES OF A

LICENSED FACILITY OR ANOTHER NONPRIMARY LOCATION.

§ 13D02. AUTHORITY TO PLACE SLOT MACHINES AT NONPRIMARY

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LOCATIONS.

(A) PLACEMENT OF SLOT MACHINES AT NONPRIMARY LOCATIONS.--

NOTWITHSTANDING ANY OTHER PROVISION OF THIS PART, 3 PA.C.S. CH.

93 (RELATING TO RACE HORSE INDUSTRY REFORM), OR ANY OTHER LAW OR

REGULATION TO THE CONTRARY, A CATEGORY 1 LICENSED GAMING ENTITY

THAT IS A LICENSED RACING ENTITY UNDER 3 PA.C.S. CH. 93 MAY

APPLY TO THE BOARD FOR A NONPRIMARY LOCATION PERMIT.

(B) DUTY OF THE BOARD AND COMMISSION.--

(1) SUBJECT TO THE PROVISIONS OF PARAGRAPH (2), THE

BOARD SHALL HAVE GENERAL AND SOLE REGULATORY AUTHORITY OVER

THE PLACEMENT AND OPERATION OF SLOT MACHINES AT NONPRIMARY

LOCATIONS AND SHALL, IN CONSULTATION WITH THE COMMISSION,

PROMULGATE REGULATIONS TO GOVERN THE PLACEMENT AND OPERATION

OF SLOT MACHINES AT NONPRIMARY LOCATIONS.

(2) ANY REGULATIONS SPECIFIC TO THE OPERATION OF

NONPRIMARY LOCATIONS BY LICENSED RACING ENTITIES PROMULGATED

UNDER 58 PA. CODE CH. 171 (RELATING TO NONPRIMARY LOCATIONS)

OR ANY REGULATIONS RELATED TO THE OPERATION OF NONPRIMARY

LOCATIONS THAT MAY BE ADOPTED BY THE COMMISSION SUBSEQUENT TO

THE EFFECTIVE DATE OF THIS SECTION SHALL BE ADOPTED AS

REGULATIONS UNDER THIS CHAPTER, UNLESS THE BOARD, IN

CONSULTATION WITH THE COMMISSION, DETERMINE THAT THE

REGULATIONS ARE NOT SUFFICIENT FOR THE ADMINISTRATION AND

ENFORCEMENT OF THIS CHAPTER.

(3) IN THAT EVENT, THE BOARD, IN CONSULTATION WITH THE

COMMISSION, SHALL PROMULGATE SUCH REGULATIONS SPECIFIC TO THE

OPERATION OF SLOT MACHINES AT NONPRIMARY LOCATIONS AS THE

BOARD AND COMMISSION DEEM NECESSARY TO FACILITATE THE

ADMINISTRATION AND ENFORCEMENT OF THIS CHAPTER.

§ 13D03. TEMPORARY REGULATIONS.

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(A) PROMULGATION.--IN ORDER TO FACILITATE THE PROMPT

IMPLEMENTATION OF THIS CHAPTER, REGULATIONS PROMULGATED BY THE

BOARD OR COMMISSION UNDER THIS CHAPTER SHALL BE DEEMED TEMPORARY

REGULATIONS WHICH SHALL EXPIRE NOT LATER THAN TWO YEARS AFTER

THE PUBLICATION OF THE TEMPORARY REGULATION IN THE PENNSYLVANIA

BULLETIN. THE BOARD 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.

(B) EXPIRATION.--THE AUTHORITY OF THE BOARD AND THE

COMMISSION 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.

THE COMMISSION, SHALL BEGIN PUBLISHING TEMPORARY REGULATIONS

GOVERNING PLACEMENT AND OPERATION OF SLOT MACHINES AT NONPRIMARY

LOCATIONS IN THE PENNSYLVANIA BULLETIN WITHIN 60 DAYS OF THE

EFFECTIVE DATE OF THIS SECTION.

SUBCHAPTER B

CATEGORY 1 LICENSED GAMING ENTITIES

AND NONPRIMARY LOCATIONS

SEC.

13D07. CATEGORY 1 LICENSED GAMING ENTITY AND OPERATION OF SLOT

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MACHINES AT NONPRIMARY LOCATIONS.

§ 13D07. CATEGORY 1 LICENSED GAMING ENTITY AND OPERATION OF

SLOT MACHINES AT NONPRIMARY LOCATIONS.

(A) REQUIREMENTS.--

(1) EACH CATEGORY 1 LICENSED GAMING ENTITY REFERRED TO

UNDER SECTION 13D02 (RELATING TO AUTHORITY TO PLACE SLOT

MACHINES AT NONPRIMARY LOCATIONS) AND IS AUTHORIZED TO HOLD

HORSE RACE MEETINGS AT A RACETRACK AT WHICH MORE THAN ONE

LICENSE IS AUTHORIZED MAY BE GRANTED APPROVAL TO PLACE AND

MAKE SLOT MACHINES AVAILABLE FOR PLAY AT FOUR NONPRIMARY

LOCATIONS, IF THE BOARD, IN CONSULTATION WITH THE COMMISSION,

DETERMINES THAT A NONPRIMARY LOCATION NEWLY PROPOSED OR

APPROVED BY THE COMMISSION IN ACCORDANCE WITH 3 PA.C.S. CH.

93 (RELATING TO RACE HORSE INDUSTRY REFORM) AND REGULATIONS

OF THE COMMISSION WILL BENEFIT ECONOMIC DEVELOPMENT,

EMPLOYMENT, TOURISM, THE RACE HORSE INDUSTRY AND RESULT IN

ENHANCED REVENUES TO THE COMMONWEALTH AND THE MUNICIPALITY

WHERE THE NEWLY PROPOSED OR APPROVED NONPRIMARY LOCATION WILL

BE OR IS SITUATED.

(2) EACH CATEGORY 1 LICENSED GAMING ENTITY UNDER SECTION

13D02 THAT IS AUTHORIZED TO HOLD HORSE RACE MEETINGS AT A

RACETRACK AT WHICH ONLY ONE LICENSE IS AUTHORIZED MAY BE

GRANTED APPROVAL TO PLACE AND MAKE SLOT MACHINES AVAILABLE

FOR PLAY AT FOUR NONPRIMARY LOCATIONS, IF THE BOARD, IN

CONSULTATION WITH THE COMMISSION, DETERMINES THAT A

NONPRIMARY LOCATION NEWLY PROPOSED OR APPROVED BY THE

COMMISSION IN ACCORDANCE WITH 3 PA.C.S. CH. 93 AND

REGULATIONS OF THE COMMISSION WILL BENEFIT ECONOMIC

DEVELOPMENT, EMPLOYMENT, TOURISM, THE RACE HORSE INDUSTRY AND

RESULT IN ENHANCED REVENUES TO THE COMMONWEALTH AND THE

20170HB0271PN1942 - 414 -

MUNICIPALITY WHERE THE NEWLY PROPOSED OR APPROVED NONPRIMARY

LOCATION WILL BE OR IS SITUATED.

(3) NO CATEGORY 1 LICENSED GAMING ENTITY REFERRED TO

UNDER SECTION 13D02(A), MAY PLACE AND MAKE SLOT MACHINES

AVAILABLE FOR PLAY AT ANY NONPRIMARY LOCATION THAT IS WITHIN

THE PRIMARY MARKET AREA OF ANOTHER LICENSED RACING ENTITY,

REGARDLESS OF WHETHER THE LICENSED RACING ENTITY IS

AUTHORIZED TO CONDUCT HORSE RACE MEETINGS OR HARNESS HORSE

RACE MEETINGS, OR BOTH, AT THE RACETRACK.

(4) NO CATEGORY 1 LICENSED GAMING ENTITY REFERRED TO

UNDER SECTION 13D02(A), MAY PLACE AND MAKE SLOT MACHINES

AVAILABLE FOR PLAY AT A NONPRIMARY LOCATION THAT IS LOCATED

WITHIN THE PRIMARY MARKET AREA OF ANOTHER LICENSED FACILITY

OR ANOTHER NONPRIMARY LOCATION.

(5) A NONPRIMARY LOCATION MAY BE LOCATED WITHIN THE

PRIMARY MARKET AREA OF A LICENSED FACILITY IF THE CATEGORY 1

LICENSED GAMING ENTITY OWNS THE NONPRIMARY LOCATION, THE

LICENSED GAMING ENTITY ENTERS INTO AN AGREEMENT WITH THE

AFFECTED LICENSED GAMING ENTITY OR ENTITIES AND THE AGREEMENT

IS FILED WITH THE COMMISSION AND THE BOARD.

(6) A CATEGORY 1 LICENSED GAMING ENTITY THAT PLACES AND

MAKES SLOT MACHINES AVAILABLE FOR PLAY AT A NONPRIMARY

LOCATION SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION

1303(A), (B) AND (D) (RELATING TO ADDITIONAL CATEGORY 1 SLOT

MACHINE LICENSE REQUIREMENTS).

(B) EXISTING AND NEWLY ESTABLISHED NONPRIMARY LOCATIONS.--

NOTWITHSTANDING ANY PROVISION OF 3 PA.C.S. CH. 93 OR ANY OTHER

LAW OR REGULATION TO THE CONTRARY:

(1) A LICENSED RACING ENTITY THAT OPERATED NONPRIMARY

LOCATIONS PRIOR TO THE EFFECTIVE DATE OF THIS SECTION SHALL

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NOT BE PROHIBITED FROM REOPENING A PREVIOUSLY CLOSED

NONPRIMARY LOCATION OR RELOCATING AN EXISTING NONPRIMARY

LOCATION IN ORDER TO PLACE AND MAKE SLOT MACHINES AVAILABLE

FOR PLAY IN A REOPENED OR RELOCATED NONPRIMARY LOCATION,

PROVIDED, THAT, THE PREVIOUSLY CLOSED OR RELOCATED NONPRIMARY

LOCATION IS APPROVED BY THE COMMISSION IN ACCORDANCE WITH 3

PA.C.S. CH. 93 AND REGULATIONS ADOPTED BY THE COMMISSION

PURSUANT TO 3 PA.C.S. CH. 93 AND COMPLIES WITH THE LOCATION

REQUIREMENTS SPECIFIED IN SUBSECTION (A)(3), (4) AND (5).

(2) A LICENSED RACING ENTITY MAY ESTABLISH A NEW

NONPRIMARY LOCATION IN ACCORDANCE WITH 3 PA.C.S. CH. 93 AND

REGULATIONS OF THE COMMISSION IN ORDER TO PLACE AND MAKE SLOT

MACHINES AVAILABLE FOR PLAY AND OPERATE RACE HORSE

SIMULCASTING, PROVIDED, THAT, THE NEW NONPRIMARY LOCATION IS

APPROVED BY THE COMMISSION IN ACCORDANCE WITH 3 PA.C.S. CH.

93 AND REGULATIONS ADOPTED BY THE COMMISSION PURSUANT TO 3

PA.C.S. CH. 93 AND COMPLIES WITH THE LOCATION REQUIREMENTS

SET FORTH IN SUBSECTION (A)(3), (4) AND (5).

(1) NOTWITHSTANDING SECTION 1210 (RELATING TO NUMBER OF

SLOT MACHINES), A CATEGORY 1 LICENSED GAMING ENTITY, UPON

APPROVAL OF THE BOARD AND REMITTANCE OF THE FEE UNDER SECTION

13D17 (RELATING TO NONPRIMARY LOCATION PERMIT FEE), MAY PLACE

AND MAKE AVAILABLE FOR PLAY NO MORE THAN 250 SLOT MACHINES AT

A NONPRIMARY LOCATION.

(2) THE PERMISSIBLE NUMBER OF SLOT MACHINES THAT MAY BE

PLACED AND MADE AVAILABLE FOR PLAY AT A NONPRIMARY LOCATION

UNDER THIS SUBSECTION SHALL NOT BE INCLUDED IN THE COMPLEMENT

OF SLOT MACHINES AUTHORIZED FOR A CATEGORY 1 LICENSED

FACILITY UNDER SECTION 1210.

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(3) IN DETERMINING THE PERMISSIBLE NUMBER OF SLOT

MACHINES THAT MAY BE PLACED AT A NONPRIMARY LOCATION IN

ACCORDANCE WITH THIS SUBSECTION, THE BOARD SHALL CONSIDER THE

APPROPRIATENESS OF THE PHYSICAL SPACE OF THE NONPRIMARY

LOCATION WHERE THE SLOT MACHINES WILL BE PLACED AND THE

CONVENIENCE OF THE PUBLIC PATRONIZING THE NONPRIMARY

LOCATION. THE BOARD MAY ALSO CONSIDER THE POTENTIAL BENEFIT

TO ECONOMIC DEVELOPMENT, EMPLOYMENT, TOURISM, THE RACE HORSE

INDUSTRY AND ENHANCED REVENUES TO THE COMMONWEALTH AND THE

MUNICIPALITY WHERE THE NONPRIMARY LOCATION IS SITUATED.

SUBCHAPTER C

APPLICATION AND ISSUANCE OF

NONPRIMARY LOCATION PERMIT

SEC.

13D11. APPLICATION FOR NONPRIMARY LOCATION PERMIT.

13D12. ISSUANCE AND TERMS OF NONPRIMARY LOCATION PERMIT.

13D13. CONFIDENTIALITY.

13D14. KEY EMPLOYEES AND OCCUPATION PERMITS.

§ 13D11. APPLICATION FOR NONPRIMARY LOCATION PERMIT.

(A) APPLICATION.--AN APPLICATION FOR A NONPRIMARY LOCATION

PERMIT TO PLACE AND MAKE SLOT MACHINES AVAILABLE FOR PLAY AT A

NONPRIMARY LOCATION MUST BE SUBMITTED ON A FORM AND IN A MANNER

AS REQUIRED BY THE BOARD. IN REVIEWING AND APPROVING EACH

APPLICATION, THE BOARD SHALL:

(1) ENSURE THAT THE PROPOSED LOCATION OF THE NONPRIMARY

LOCATION IS APPROVED BY THE COMMISSION IN ACCORDANCE WITH

SECTION 13D07 (RELATING TO CATEGORY 1 LICENSED GAMING ENTITY

AND OPERATION OF SLOT MACHINES AT NONPRIMARY LOCATIONS) AND

COMPLIES WITH THE LOCATION REQUIREMENTS SPECIFIED IN SECTION

13D07(A)(3), (4) AND (5).

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(2) CONFIRM THAT THE NONPRIMARY LOCATION PERMIT FEE

UNDER SECTION 13D17 (RELATING TO NONPRIMARY LOCATION PERMIT

FEE) HAS BEEN PAID OR WILL BE PAID IN ACCORDANCE WITH SECTION

13D17.

(B) REQUIRED INFORMATION.--AN APPLICATION FOR A NONPRIMARY

LOCATION PERMIT SHALL INCLUDE, AT A MINIMUM:

(1) THE NAME OF THE CATEGORY 1 SLOT MACHINE LICENSEE AND

THE LICENSED RACING ENTITY AND LOCATION OF THE EXISTING

NONPRIMARY LOCATION, IF ANY, OR THE LOCATION OF ANY PROPOSED

RELOCATED OR NEW NONPRIMARY LOCATION APPROVED BY THE

COMMISSION.

(2) THE NAME, ADDRESS AND CURRENT PHOTOGRAPH OF THE

APPLICANT AND OF ALL DIRECTORS AND OWNERS AND KEY EMPLOYEES

AND THEIR POSITIONS WITHIN THE LICENSED RACING ENTITY, IF

REQUIRED BY THE BOARD.

(3) THE PROPOSED LOCATION OF THE SLOT MACHINE AREA OR

AREAS IN THE NONPRIMARY LOCATION, IF KNOWN.

(4) DETAILED SITE AND ARCHITECTURAL PLANS OF THE

PROPOSED AREA OR AREAS WITHIN THE NONPRIMARY LOCATION WHERE

SLOT MACHINES WILL BE PLACED AND MADE AVAILABLE FOR PLAY.

(5) THE NUMBER OF SLOT MACHINES REQUESTED.

(6) THE CURRENT STATUS OF THE LICENSED RACING ENTITY'S

HORSE RACING LICENSE, IF REQUIRED BY THE BOARD.

(7) THE CURRENT STATUS OF THE SLOT MACHINE LICENSE

ISSUED UNDER THIS PART, IF REQUIRED BY THE BOARD.

(8) THE DETAILS OF ANY LOAN OR OTHER FINANCING OBTAINED

OR THAT WILL BE OBTAINED TO FUND AN EXPANSION, MODIFICATION

OR CONSTRUCTION PROJECT AT AN EXISTING NONPRIMARY LOCATION, A

RELOCATED NONPRIMARY LOCATION OR A PROPOSED OR NEWLY APPROVED

NONPRIMARY LOCATION TO ACCOMMODATE SLOT MACHINES AT THE

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NONPRIMARY LOCATION.

(9) THE CONSENT TO CONDUCT A BACKGROUND INVESTIGATION BY

THE BUREAU, THE SCOPE OF WHICH INVESTIGATION SHALL BE

DETERMINED BY THE BUREAU AT ITS DISCRETION CONSISTENT WITH

THE PROVISIONS OF THIS PART, AND A RELEASE SIGNED BY ALL

PERSONS SUBJECT TO THE INVESTIGATION OF ALL INFORMATION

REQUIRED TO COMPLETE THE INVESTIGATION, IF THE BUREAU, AT ITS

DISCRETION, DETERMINES THAT A BACKGROUND INVESTIGATION IS

NECESSARY UNDER THIS CHAPTER.

(10) OTHER INFORMATION DETERMINED TO BE NECESSARY AND

APPROPRIATE BY THE BOARD.

§ 13D12. ISSUANCE AND TERMS OF NONPRIMARY LOCATION PERMIT.

(A) ISSUANCE OF PERMIT.--UPON APPROVAL OF AN APPLICATION FOR

A NONPRIMARY LOCATION PERMIT AND PAYMENT OF THE NONPRIMARY

LOCATION PERMIT FEE UNDER SECTION 13D17 (RELATING TO NONPRIMARY

LOCATION PERMIT FEE), THE BOARD SHALL ISSUE A NONPRIMARY

LOCATION PERMIT TO A CATEGORY 1 LICENSED GAMING ENTITY

AUTHORIZING THE CATEGORY 1 LICENSED GAMING ENTITY TO PLACE AND

MAKE SLOT MACHINES AVAILABLE FOR PLAY AT A NONPRIMARY LOCATION.

(B) TERMS OF PERMIT.--A NONPRIMARY LOCATION PERMIT APPROVED

AND ISSUED BY THE BOARD IN ACCORDANCE WITH SUBSECTION (A) SHALL

BE IN EFFECT UNLESS SUSPENDED OR REVOKED BY THE BOARD UPON GOOD

CAUSE CONSISTENT WITH THE REQUIREMENTS OF THIS PART, REGULATIONS

PROMULGATED UNDER THIS PART OR REGULATIONS OF THE COMMISSION.

SECTION SHALL BE CONSTRUED TO RELIEVE A NONPRIMARY LOCATION

PERMIT HOLDER OF THE AFFIRMATIVE DUTY TO NOTIFY THE BOARD OF ANY

CHANGE RELATING TO THE STATUS OF ITS NONPRIMARY LOCATION PERMIT,

ITS HORSE RACING LICENSE OR TO OTHER INFORMATION CONTAINED IN

THE APPLICATION MATERIALS ON FILE WITH THE BOARD.

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§ 13D13. CONFIDENTIALITY.

INFORMATION SUBMITTED TO THE BOARD UNDER SECTION 13D11

(RELATING TO APPLICATION FOR NONPRIMARY LOCATION PERMIT) MAY BE

CONSIDERED CONFIDENTIAL BY THE BOARD IF THE INFORMATION WOULD BE

CONFIDENTIAL UNDER SECTION 1206(F) (RELATING TO BOARD MINUTES

AND RECORDS).

§ 13D14. KEY EMPLOYEES AND OCCUPATION PERMITS.

NOTHING IN THIS SUBCHAPTER SHALL BE CONSTRUED TO REQUIRE AN

INDIVIDUAL WHO HOLDS A PRINCIPAL LICENSE, A KEY EMPLOYEE LICENSE

OR GAMING EMPLOYEE LICENSE UNDER CHAPTERS 13 (RELATING TO

LICENSEES) AND 13A (RELATING TO TABLE GAMES) OR WHO HOLDS A

LICENSE, PERMIT OR REGISTRATION UNDER 3 PA.C.S. CH. 93 (RELATING

TO RACE HORSE INDUSTRY REFORM) TO OBTAIN A SEPARATE LICENSE,

PERMIT OR REGISTRATION TO BE EMPLOYED IN A SLOT MACHINE

LICENSEE'S SLOT MACHINE OPERATION AT A NONPRIMARY LOCATION UNDER

THIS CHAPTER, IF THE BOARD DETERMINES, IN CONSULTATION WITH THE

COMMISSION, THAT LICENSURE UNDER THE PROVISIONS OF THIS PART OR

3 PA.C.S. CH. 93 IS SUFFICIENT AND WILL NOT COMPROMISE THE

INTEGRITY OF THE OPERATION OF SLOT MACHINES AT NONPRIMARY

LOCATIONS.

SUBCHAPTER D

FEES AND TAXES

SEC.

13D17. NONPRIMARY LOCATION PERMIT FEE.

13D18. NONPRIMARY LOCATION TAXES, IMPOSITION, DEPOSITS AND

DISTRIBUTIONS.

13D19. LOCAL SHARE.

§ 13D17. NONPRIMARY LOCATION PERMIT FEE.

(A) AMOUNT OF FEE.--AT THE TIME A NONPRIMARY LOCATION PERMIT

IS ISSUED UNDER SECTION 13D12(A) (RELATING TO ISSUANCE AND TERMS

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OF NONPRIMARY LOCATION PERMIT), THE BOARD SHALL IMPOSE A ONE-

TIME FEE OF $5,000,000 TO BE PAID BY THE CATEGORY 1 LICENSED

GAMING ENTITY FOR EACH NONPRIMARY LOCATION WHERE IT WILL PLACE

AND MAKE SLOT MACHINES AVAILABLE FOR PLAY.

(B) RENEWAL FEE NOT REQUIRED.--A NONPRIMARY LOCATION PERMIT

SHALL NOT BE SUBJECT TO RENEWAL OR PAYMENT OF A NONPRIMARY

LOCATION PERMIT RENEWAL FEE.

SECTION 1208 (RELATING TO COLLECTION OF FEES AND FINES), ALL

NONPRIMARY LOCATION PERMIT FEES AND PENALTIES COLLECTED BY THE

BOARD UNDER THIS SECTION SHALL BE DEPOSITED IN THE GENERAL FUND.

§ 13D18. NONPRIMARY LOCATION TAXES, IMPOSITION, DEPOSITS AND

DISTRIBUTIONS.

(A) TAX AND ASSESSMENT.--THE DEPARTMENT SHALL DETERMINE AND

EACH NONPRIMARY LOCATION PERMIT HOLDER SHALL PAY ON A WEEKLY

BASIS:

(1) A TAX OF 50% FROM ITS GROSS TERMINAL REVENUE FROM

THE SLOT MACHINES IN OPERATION AT THE NONPRIMARY LOCATION

PERMIT HOLDER'S NONPRIMARY LOCATION.

(2) A 4% LOCAL SHARE ASSESSMENT FROM THE NONPRIMARY

LOCATION PERMIT HOLDER'S GROSS TERMINAL REVENUE FROM THE SLOT

MACHINES IN OPERATION AT ITS NONPRIMARY LOCATION.

(B) DEPOSIT.--THE DEPARTMENT SHALL DEPOSIT THE TAX IMPOSED

AND ASSESSMENT UNDER SUBSECTION (A) INTO THE GENERAL FUND. FROM

THE LOCAL SHARE ASSESSMENT ESTABLISHED UNDER SUBSECTION (A), THE

DEPARTMENT SHALL MAKE DISTRIBUTIONS AMONG THE COUNTIES AND

MUNICIPALITIES THAT HOST NONPRIMARY LOCATIONS IN ACCORDANCE WITH

SECTION 13D19 (RELATING TO LOCAL SHARE).

COUNTY OR A MUNICIPALITY UNDER THIS SECTION SHALL BE HELD IN

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TRUST BY THE LICENSED RACING ENTITY OR LICENSED GAMING ENTITY

FOR THE COMMONWEALTH, COUNTY OR MUNICIPALITY UNTIL ALL FUNDS ARE

DEPOSITED WITH AND DISTRIBUTED BY THE DEPARTMENT IN ACCORDANCE

WITH THIS CHAPTER.

(D) APPLICABILITY.--CHAPTER 14 (RELATING TO REVENUES) SHALL

NOT APPLY TO SLOT MACHINES OPERATED AT NONPRIMARY LOCATIONS IN

ACCORDANCE WITH THIS CHAPTER.

§ 13D19. LOCAL SHARE.

(A) DISTRIBUTION.--

(1) SUBJECT TO THE LIMITATION UNDER SUBSECTION (B), THE

DEPARTMENT SHALL DISTRIBUTE, IN A MANNER AND ACCORDING TO A

SCHEDULE ADOPTED BY THE DEPARTMENT, TO EACH MUNICIPALITY 2%

OF THE GROSS TERMINAL REVENUE OF SLOT MACHINES OPERATING AT A

NONPRIMARY LOCATION WITHIN THE MUNICIPALITY.

(2) THE DEPARTMENT SHALL ON A QUARTERLY BASIS DEPOSIT 2%

OF THE GROSS TERMINAL REVENUE OF SLOT MACHINES OPERATING AT A

NONPRIMARY LOCATION WITHIN THE COUNTY 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 WITHIN THE HOST COUNTY.

(B) LIMITATION.--THE DEPARTMENT MAY NOT DISTRIBUTE A LOCAL

SHARE AMOUNT TO A MUNICIPALITY IN EXCESS OF 50% OF THE

MUNICIPALITY'S TOTAL BUDGET FOR FISCAL YEAR 2017, ADJUSTED FOR

INFLATION IN SUBSEQUENT FISCAL YEARS BY AN AMOUNT NOT TO EXCEED

AN ANNUAL COST-OF-LIVING ADJUSTMENT CALCULATED BY APPLYING AN

UPWARD PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX IMMEDIATELY

PRIOR TO THE DATE THE ADJUSTMENT IS DUE TO TAKE EFFECT.

DISTRIBUTED BY THE DEPARTMENT TO A MUNICIPALITY DUE TO THE

LIMITATION ESTABLISHED UNDER SUBSECTION (B) SHALL BE DISTRIBUTED

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TO THE HOST COUNTY IN ACCORDANCE WITH SUBSECTION (A)(2).

(D) USE OF ASSESSMENTS.--

(1) A MUNICIPALITY THAT RECEIVES ASSESSMENTS FROM THE

DEPARTMENT UNDER SUBSECTION (A) MAY USE THE FUNDS FOR ANY

PURPOSE.

(2) A COUNTY THAT RECEIVES ASSESSMENTS FROM THE

DEPARTMENT UNDER SUBSECTION (A) MAY USE THE FUNDS AS LOCAL

MATCHING FUNDS FOR OTHER GRANTS OR LOANS FROM THE

COMMONWEALTH.

(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 TO MUNICIPALITIES

AND COUNTIES UNDER THIS SECTION TO THE CHAIRPERSON AND

MINORITY CHAIRPERSON OF THE APPROPRIATIONS COMMITTEE OF THE

SENATE, THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT COMMITTEE OF

THE SENATE, THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES AND

THE CHAIRPERSON AND MINORITY CHAIRPERSON OF THE GAMING

OVERSIGHT COMMITTEE OF THE HOUSE OF REPRESENTATIVES. THE

REPORT SHALL BE SUBMITTED BY AUGUST 31, 2018, AND BY AUGUST

31 OF EACH YEAR THEREAFTER.

(2) A MUNICIPALITY OR COUNTY THAT RECEIVES DISTRIBUTIONS

OF LOCAL SHARE ASSESSMENTS 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 STATES THE AMOUNT AND USE OF

THE FUNDS RECEIVED IN THE PRIOR FISCAL YEAR. THE FORM SHALL

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SPECIFY WHETHER THE FUNDS RECEIVED WERE DEPOSITED IN THE

MUNICIPALITY'S OR COUNTY'S GENERAL FUND OR COMMITTED TO A

SPECIFIC PROJECT OR USE.

CHAPTER 13E

(RESERVED)

CHAPTER 13F

CASINO SIMULCASTING

SUBCHAPTER

A. GENERAL PROVISIONS

B. CASINO SIMULCASTING AUTHORIZED

C. APPLICATION AND ISSUANCE OF PERMIT AND ESTABLISHMENT OF

SIMULCASTING FACILITY

D. CONDUCT OF CASINO SIMULCASTING

E. FEES AND TAXES

SUBCHAPTER A

GENERAL PROVISIONS

SEC.

13F01. LEGISLATIVE INTENT AND PURPOSE.

13F02. DEFINITIONS.

§ 13F01. LEGISLATIVE INTENT AND PURPOSE.

THE GENERAL ASSEMBLY FINDS AS FOLLOWS:

(1) THE PEOPLE OF THIS COMMONWEALTH HAVE A VITAL

ECONOMIC INTEREST IN THE CONTINUED SUCCESS OF THIS

COMMONWEALTH'S GAMING INDUSTRY, INCLUDING THE RACE HORSE

INDUSTRY. DUE TO THIS ECONOMIC INTEREST, ENHANCEMENTS TO

CURRENT GAMING ACTIVITIES MUST BE AUTHORIZED TO ENSURE THE

ONGOING COMPETITIVENESS, VIABILITY AND STABILITY OF THE

GAMING INDUSTRY IN THIS COMMONWEALTH.

(2) A PRIMARY INTENT OF THE RACE HORSE DEVELOPMENT AND

GAMING ACT, AS CODIFIED IN THIS PART, IS TO ENHANCE LIVE

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HORSE RACING. HOWEVER, THE LEGALIZATION OF COMMERCIAL GAMING

IN STATES ON THE GEOGRAPHIC BORDERS OF THIS COMMONWEALTH

MAKES IT IMPERATIVE TO AUTHORIZE NEW AND INNOVATIVE GAMING

ACTIVITIES RELATED TO HORSE RACING AND COMMERCIAL CASINO-

STYLE GAMING, WHICH COULD BE IMPLEMENTED BY LICENSED GAMING

ENTITIES, AND WHICH COULD HELP ENSURE THE VIABILITY OF BOTH

HORSE RACING AND COMMERCIAL GAMING.

(3) THE INTENT OF THIS CHAPTER IS TO GIVE LICENSED

GAMING ENTITIES THE AUTHORITY TO CONDUCT CASINO SIMULCASTING

AT CATEGORY 2 AND CATEGORY 3 LICENSED FACILITIES IN ORDER TO

EXPAND HORSE RACING OPPORTUNITIES THROUGH SIMULCASTING AND,

THEREBY, ENHANCING THE VIABILITY OF THIS COMMONWEALTH'S RACE

HORSE AND COMMERCIAL GAMING INDUSTRY.

§ 13F02. 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:

"CASINO SIMULCASTING." THE SIMULTANEOUS TRANSMISSION OF LIVE

THOROUGHBRED OR HARNESS HORSE RACE MEETINGS FROM AN IN-STATE

SENDING TRACK, OUT-OF-STATE SENDING TRACK OR A SATELLITE

FACILITY, REGARDLESS OF LICENSURE STATUS OR WHETHER THE HORSE

RACE MEETINGS ORIGINATE WITHIN THIS COMMONWEALTH OR ANY OTHER

STATE OR JURISDICTION, TO A SIMULCASTING FACILITY IN THIS

COMMONWEALTH BY SATELLITE DEVICES, TELEVISION CABLES, TELEPHONE

LINES OR ANY OTHER TELECOMMUNICATIONS TECHNOLOGY FOR THE

PURPOSES OF CONDUCTING PARI-MUTUEL WAGERING.

"CASINO SIMULCASTING PERMIT" OR "SIMULCASTING PERMIT." A

PERMIT AWARDED BY THE BOARD UNDER SECTION 13F12 (RELATING TO

CASINO SIMULCASTING PERMIT) WHICH AUTHORIZES A LICENSED GAMING

ENTITY TO CONDUCT CASINO SIMULCASTING.

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"CASINO SIMULCASTING PERMIT HOLDER." A LICENSED GAMING

ENTITY THAT HOLDS A CASINO SIMULCASTING PERMIT ISSUED BY THE

BOARD IN ACCORDANCE WITH SECTION 13F12.

"IN-STATE SENDING TRACK." A RACETRACK WITHIN THIS

COMMONWEALTH WHICH IS OPERATED BY A LICENSED RACING ENTITY AND

IS PERMITTED TO CONDUCT CASINO SIMULCASTING.

"LICENSED GAMING ENTITY." A PERSON WHO HAS BEEN APPROVED FOR

AND ISSUED A CATEGORY 2 SLOT MACHINE LICENSE OR A CATEGORY 3

SLOT MACHINE LICENSE IN ACCORDANCE WITH SECTIONS 1304 (RELATING

TO CATEGORY 2 SLOT MACHINE LICENSE), 1305 (RELATING TO CATEGORY

3 SLOT MACHINE LICENSE) AND 1325 (RELATING TO LICENSE OR PERMIT

ISSUANCE) AND WHO HOLDS A CASINO SIMULCASTING PERMIT.

"OUT-OF-STATE SENDING TRACK." AN INTERSTATE OR INTERNATIONAL

RACETRACK IN A STATE OR JURISDICTION OF THAN THIS COMMONWEALTH

WHICH IS EQUIPPED TO CONDUCT CASINO SIMULCASTING AND THE

OPERATOR OF WHICH IS LAWFULLY PERMITTED TO CONDUCT HORSE RACE

MEETINGS AND TO PROVIDE SIMULCAST HORSE RACES TO SLOT MACHINE

LICENSEES IN THIS COMMONWEALTH.

"SIMULCAST HORSE RACE." A THOROUGHBRED OR HARNESS HORSE RACE

MEETING CONDUCTED AT A RACETRACK, WHETHER WITHIN OR OUTSIDE THIS

COMMONWEALTH, WHICH IS SIMULTANEOUSLY TRANSMITTED BY AN APPROVED

TELECOMMUNICATIONS TECHNOLOGY TO RACETRACKS OR SIMULCASTING

FACILITIES IN THIS COMMONWEALTH IN ACCORDANCE WITH REGULATIONS

OF THE COMMISSION.

"SIMULCASTING FACILITY." AN AREA OF A LICENSED FACILITY

ESTABLISHED AND MAINTAINED BY A SLOT MACHINE LICENSEE FOR THE

CONDUCT OF CASINO SIMULCASTING IN ACCORDANCE WITH THIS CHAPTER,

3 PA.C.S. CH. 93 (RELATING TO RACE HORSE INDUSTRY REFORM) AND

REGULATIONS OF THE BOARD AND THE COMMISSION.

SUBCHAPTER B

20170HB0271PN1942 - 426 -

CASINO SIMULCASTING AUTHORIZED

SEC.

13F05. AUTHORIZATION TO CONDUCT SIMULCASTING.

13F06. REGULATIONS.

13F07. TEMPORARY REGULATIONS.

13F08. SIMULCAST AGREEMENTS.

§ 13F05. AUTHORIZATION TO CONDUCT SIMULCASTING.

(A) AUTHORITY TO CONDUCT.--NOTWITHSTANDING ANY OTHER

PROVISION OF LAW OR REGULATION, IT SHALL BE LAWFUL FOR A

LICENSED GAMING ENTITY TO CONDUCT CASINO SIMULCASTING OR ENTER

INTO AN AGREEMENT OR AGREEMENTS WITH A LICENSED RACING ENTITY OR

OTHER PERSON FOR THE CONDUCT OF CASINO SIMULCASTING IN

ACCORDANCE WITH THE PROVISIONS OF THIS CHAPTER, 3 PA.C.S. CH. 93

(RELATING TO RACE HORSE INDUSTRY REFORM) AND THE APPLICABLE

REGULATIONS OF THE BOARD AND THE COMMISSION PROMULGATED UNDER

THIS CHAPTER.

(B) ADMINISTRATION AND ENFORCEMENT.--THE BOARD SHALL

ADMINISTER AND ENFORCE THE PROVISIONS OF THIS CHAPTER AS THEY

RELATE TO THE CONDUCT OF CASINO SIMULCASTING BY A SLOT MACHINE

LICENSEE AND, EXCEPT AS PROVIDED IN THIS CHAPTER, SHALL ADOPT

AND PROMULGATE REGULATIONS TO CARRY OUT AND ENFORCE THE

PROVISIONS OF THIS CHAPTER.

§ 13F06. REGULATIONS.

(A) ADOPTION OF REGULATIONS.--THE BOARD, IN CONSULTATION

WITH THE COMMISSION , SHALL ADOPT AND PROMULGATE REGULATIONS TO

GOVERN THE CONDUCT OF CASINO SIMULCASTING BY LICENSED GAMING

ENTITIES IN THIS COMMONWEALTH. SUCH REGULATIONS SHALL ESTABLISH

THE FOLLOWING:

(1) THE METHOD AND FORM OF THE APPLICATION WHICH A

LICENSED GAMING ENTITY MUST FOLLOW AND COMPLETE BEFORE

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CONSIDERATION OF THE LICENSED GAMING ENTITY'S APPLICATION TO

CONDUCT CASINO SIMULCASTING.

(2) THE PERMISSIBLE COMMUNICATIONS TECHNOLOGY WHICH MUST

BE USED TO FACILITATE THE CONDUCT OF CASINO SIMULCASTING IN

ACCORDANCE WITH REGULATIONS OF THE BOARD, THE COMMISSION AND

APPLICABLE FEDERAL LAW AND REGULATIONS.

(3) THE TIMES DURING WHICH A LICENSED GAMING ENTITY MAY

CONDUCT CASINO SIMULCASTING SHALL BE THE SAME AS THE TIMES

AUTHORIZED FOR THE CONDUCT OF CASINO SIMULCASTING BY CATEGORY

1 SLOT MACHINE LICENSEES.

(4) THE APPROVAL OF THE TERMS AND CONDITIONS OF ANY

AGREEMENT BETWEEN A LICENSED GAMING ENTITY AND A LICENSED

RACING ENTITY OR OTHER PERSON RELATED TO THE MANAGEMENT OR

OPERATION OF CASINO SIMULCASTING AND THE PARI-MUTUEL SYSTEM

OF WAGERING, INCLUDING THE PERCENTAGE OF THE MONEY RETAINED

BY A LICENSED RACING ENTITY FOR PARI-MUTUEL POOLS WHICH MAY

BE DISTRIBUTED TO THE LICENSED GAMING ENTITY.

(5) THE REQUIRED CONTENTS OF AGREEMENTS ENTERED INTO

BETWEEN A LICENSED GAMING ENTITY, A LICENSED RACING ENTITY OR

OTHER PERSON FOR THE MANAGEMENT OR OPERATION OF CASINO

SIMULCASTING AND THE PARI-MUTUEL SYSTEM OF WAGERING.

(6) A REQUIREMENT THAT WAGERING ON SIMULCAST HORSE RACE

MEETINGS SHALL ONLY BE CONDUCTED WITHIN AN ENCLOSED LOCATION

OF AN AUTHORIZED LICENSED GAMING ENTITY'S LICENSED FACILITY

WHICH HAS BEEN APPROVED BY THE BOARD, IN CONSULTATION WITH

THE COMMISSION.

(7) THE STANDARDS AND RULES TO GOVERN THE CONDUCT OF

CASINO SIMULCASTING AND THE SYSTEM OF PARI-MUTUEL WAGERING

ASSOCIATED WITH RACE HORSE SIMULCASTING.

(8) THE REPORTING PROCEDURES AND RECORDS WHICH WILL BE

20170HB0271PN1942 - 428 -

REQUIRED FROM A LICENSED GAMING ENTITY TO ENSURE THAT ALL

MONEY GENERATED FROM CASINO SIMULCASTING IS ACCOUNTED FOR AND

WINNERS' NAMES, WHEN REQUIRED UNDER APPLICABLE FEDERAL OR

STATE LAW, ARE FILED WITH THE APPROPRIATE TAXING AUTHORITIES.

(9) NOTWITHSTANDING 3 PA.C.S. § 9340 (RELATING TO

PROHIBITION OF WAGERING) OR ANY OTHER PROVISION OF LAW OR

REGULATION, THE POLICIES AND PROCEDURES WHICH WILL BE

ADOPTED, IMPLEMENTED AND FOLLOWED TO ENSURE THAT INDIVIDUALS

UNDER 21 YEARS OF AGE WILL BE PROHIBITED FROM PARTICIPATING

IN CASINO SIMULCASTING OR ENTERING SIMULCASTING AREAS OF

LICENSED FACILITIES.

(10) ANY OTHER REQUIREMENTS, CONDITIONS OR CONTROLS

WHICH THE BOARD, IN CONSULTATION WITH THE COMMISSION, DEEMS

NECESSARY AND APPROPRIATE TO ADMINISTER AND ENFORCE THE

PROVISIONS OF THIS CHAPTER AND TO FACILITATE THE

IMPLEMENTATION OF THIS CHAPTER.

(B) UNIFORM REGULATION.--IN ADOPTING REGULATIONS UNDER THIS

CHAPTER, THE COMMISSION SHALL COOPERATE AND WORK WITH THE BOARD

TO DEVELOP UNIFORM REGULATIONS TO GOVERN THE OPERATION OF CASINO

SIMULCASTING IN THIS COMMONWEALTH. EXCEPT AS HEREIN PROVIDED,

THE PROVISIONS OF THIS CHAPTER AND ANY REGULATIONS PROMULGATED

UNDER THIS CHAPTER SHALL BE CONSIDERED AS ESTABLISHING UNIFORM

REQUIREMENTS AND REGULATIONS FOR CASINO SIMULCASTING AT LICENSED

FACILITIES IN THIS COMMONWEALTH.

SUBSECTION (B) OR ANY OTHER LAW OR REGULATION TO THE CONTRARY,

THE PROVISIONS OF 3 PA.C.S. § 9335 (RELATING TO PARI-MUTUEL POOL

DISTRIBUTION) AND ALL REGULATIONS AND SUPPLEMENTS THERETO OR

REVISIONS THEREOF ADOPTED BY THE COMMISSION UNDER 3 PA.C.S. §

9335, WHICH RELATE TO THE RETENTION OF MONEY IN PARI-MUTUEL

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POOLS AND THE PARI-MUTUEL SYSTEM OF WAGERING ON, BEFORE OR AFTER

THE EFFECTIVE DATE OF THIS CHAPTER ARE ADOPTED AS REGULATIONS

UNDER THIS CHAPTER AND SHALL REMAIN IN EFFECT UNLESS

SUBSEQUENTLY MODIFIED OR SUPERSEDED BY REGULATIONS PROMULGATED

BY THE COMMISSION.

§ 13F07. TEMPORARY REGULATIONS.

(A) PROMULGATION.--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. THE BOARD 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.

(B) EXPIRATION.--THE AUTHORITY TO ADOPT TEMPORARY

REGULATIONS UNDER SUBSECTION (A) SHALL EXPIRE TWO YEARS AFTER

THE EFFECTIVE DATE OF THIS SECTION. REGULATIONS ADOPTED BY THE

BOARD AND COMMISSION AFTER THE TWO-YEAR PERIOD SHALL BE

PROMULGATED AS PROVIDED BY LAW.

COMMISSION SHALL BEGIN PUBLISHING TEMPORARY REGULATIONS

GOVERNING CASINO SIMULCASTING IN THE PENNSYLVANIA BULLETIN NO

LATER THAN FEBRUARY 1, 2018.

§ 13F08. SIMULCAST AGREEMENTS.

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(A) MANNER OF AGREEMENT.--ANY AGREEMENT ENTERED INTO BETWEEN

A LICENSED GAMING ENTITY AND A LICENSED RACING ENTITY OR OTHER

PERSON TO FACILITATE CASINO SIMULCASTING SHALL BE IN WRITING AND

SHALL BE FILED WITH AND APPROVED BY THE BOARD AND THE COMMISSION

IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE BOARD IN

CONSULTATION WITH THE COMMISSION.

(B) WAGER PROVISIONS.--NOTWITHSTANDING 3 PA.C.S. § 9334

(RELATING TO STATE RACING FUND AND TAX RATE) OR 9335 (RELATING

TO PARI-MUTUEL POOL DISTRIBUTION), THE FOLLOWING SHALL APPLY:

(1) IF A LICENSED GAMING ENTITY OFFERS CASINO

SIMULCASTING AT ITS LICENSED FACILITY THROUGH AN AGREEMENT

WITH A LICENSED RACING ENTITY, THE AGREEMENT SHALL SPECIFY

THE PERCENTAGE OF THE MONEY WAGERED EACH RACING DAY AT THE

CASINO SIMULCASTING FACILITY AND REMAINING IN THE WAGERING

POOLS AFTER THE REQUIRED DISTRIBUTIONS UNDER 3 PA.C.S. §

9335, THAT WILL BE PAID TO THE LICENSED GAMING ENTITY. THE

AMOUNT RETAINED BY A LICENSED GAMING ENTITY SHALL NOT EXCEED

25% OF THE MONEY RETAINED BY THE LICENSED RACING ENTITY UNDER

3 PA.C.S. § 9335.

(2) IF A LICENSED GAMING ENTITY CHOOSES TO OFFER CASINO

SIMULCASTING THROUGH ITS OWN RESOURCES OR THROUGH AN

AGREEMENT WITH ANOTHER PERSON, AS APPROVED BY THE BOARD AND

THE COMMISSION, THE BOARD, IN CONSULTATION WITH THE

COMMISSION , SHALL, THROUGH REGULATION, ESTABLISH THE

PERCENTAGE OF MONEY WAGERED EACH RACING DAY AT THE CASINO

SIMULCASTING FACILITY AND REMAINING IN THE WAGERING POOLS

AFTER THE REQUIRED DISTRIBUTIONS UNDER 3 PA.C.S. § 9334 THAT

WILL BE PAID TO THE LICENSED GAMING ENTITY OR OTHER PERSON,

PROVIDED THAT THE PERCENTAGE OF MONEY TO BE PAID TO A

LICENSED GAMING ENTITY OR OTHER PERSON UNDER THIS PARAGRAPH

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SHALL BE, IF DETERMINED APPROPRIATE BY THE BOARD AND THE

COMMISSION, THE SAME PERCENTAGE OF MONEY REMAINING IN THE

WAGERING POOLS THAT IS RETAINED BY A LICENSED RACING ENTITY

IN ACCORDANCE WITH 3 PA.C.S. § 9335.

COMMISSION , SHALL ESTABLISH REGULATIONS TO ADMINISTER THE

RETENTION REQUIREMENTS UNDER THIS SECTION.

SUBCHAPTER C

APPLICATION AND ISSUANCE OF PERMIT AND

ESTABLISHMENT OF SIMULCASTING FACILITY

SEC.

13F11. APPLICATION FOR PERMIT AND REQUIREMENTS.

13F12. CASINO SIMULCASTING PERMIT.

13F13. CASINO SIMULCASTING FACILITIES.

13F14. LICENSE OR REGISTRATION OF EMPLOYEES REQUIRED.

13F15. KEY EMPLOYEES AND OCCUPATION PERMITS.

§ 13F11. APPLICATION FOR PERMIT AND REQUIREMENTS.

(A) APPLICATIONS.--A LICENSED GAMING ENTITY SHALL FILE AN

APPLICATION FOR A CASINO SIMULCASTING PERMIT WITH THE BOARD. THE

APPLICATION SHALL INCLUDE THE FOLLOWING:

(1) THE NAME, BUSINESS ADDRESS AND CONTACT INFORMATION

OF THE APPLICANT.

(2) THE NAME AND LOCATION OF THE APPLICANT'S LICENSED

FACILITY.

(3) THE NAME AND BUSINESS ADDRESS, JOB TITLE AND A

PHOTOGRAPH OF EACH PRINCIPAL AND KEY EMPLOYEE OF THE

APPLICANT WHO WILL BE INVOLVED IN THE CONDUCT OF CASINO

SIMULCASTING AND WHO IS NOT CURRENTLY LICENSED BY THE BOARD

OR THE COMMISSION, IF KNOWN.

(4) THE ESTIMATED NUMBER OF FULL-TIME AND PART-TIME

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EMPLOYMENT POSITIONS THAT WILL BE CREATED AT THE LICENSED

FACILITY IF CASINO SIMULCASTING IS AUTHORIZED AND AN UPDATED

HIRING PLAN UNDER SECTION 1510(A) (RELATING TO LABOR HIRING

PREFERENCES) WHICH OUTLINES THE APPLICANT'S PLAN TO PROMOTE

THE REPRESENTATION OF DIVERSE GROUPS AND COMMONWEALTH

RESIDENTS IN THE EMPLOYMENT POSITIONS.

(5) A BRIEF DESCRIPTION OF THE ECONOMIC BENEFITS

EXPECTED TO BE REALIZED BY THE COMMONWEALTH, THE DEPARTMENT

OF AGRICULTURE AND THE RACE HORSE INDUSTRY IN THIS

COMMONWEALTH IF CASINO SIMULCASTING IS AUTHORIZED AT THE

APPLICANT'S LICENSED FACILITY.

(6) THE DETAILS OF ANY FINANCING, IF APPLICABLE,

OBTAINED OR THAT WILL BE OBTAINED TO FUND AN EXPANSION OR

MODIFICATION OF THE LICENSED FACILITY TO ACCOMMODATE CASINO

SIMULCASTING OR CONSTRUCT A SIMULCASTING FACILITY OR TO

OTHERWISE FUND THE COST OF COMMENCING CASINO SIMULCASTING

OPERATIONS.

(7) 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 APPLICANT.

(8) A COPY OF OR A DETAILED DESCRIPTION OF THE TERMS AND

CONDITIONS OF ANY AGREEMENT OR AGREEMENTS THE LICENSED GAMING

ENTITY HAS ENTERED INTO OR WILL ENTER INTO WITH A LICENSED

CORPORATION OR OTHER PERSON TO FACILITATE THE CONDUCT OF

CASINO SIMULCASTING.

(9) A DETAILED DESCRIPTION OF ANY FINANCIAL ARRANGEMENTS

BETWEEN A LICENSED GAMING ENTITY AND A LICENSED RACING ENTITY

OR OTHER PERSON RELATED TO THE CONDUCT OF CASINO

SIMULCASTING.

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(10) DETAILED SITE AND ARCHITECTURAL PLANS OF THE

PROPOSED SIMULCASTING FACILITY WITHIN THE APPLICANT'S

LICENSED FACILITY.

(11) ANY OTHER INFORMATION AS THE BOARD MAY REQUIRE.

(B) REVIEW AND APPROVAL OF APPLICATION.--THE BOARD SHALL

REVIEW AND APPROVE AN APPLICATION FOR A SIMULCASTING PERMIT IF

THE APPLICANT ESTABLISHES, BY CLEAR AND CONVINCING EVIDENCE, ALL

OF THE FOLLOWING:

(1) THE APPLICANT'S SLOT MACHINE LICENSE IS IN GOOD

STANDING WITH THE BOARD.

(2) THE CONDUCT OF CASINO SIMULCASTING AT THE

APPLICANT'S LICENSED FACILITY WILL HAVE A POSITIVE ECONOMIC

IMPACT ON THE COMMONWEALTH AND THE RACE HORSE INDUSTRY IN

THIS COMMONWEALTH THROUGH INCREASED REVENUES, INCREASED

PURSES AND EMPLOYMENT OPPORTUNITIES.

(3) THE APPLICANT POSSESSES ADEQUATE FUNDS OR HAS

SECURED ADEQUATE FINANCING TO:

(I) FUND ANY NECESSARY EXPANSION OR MODIFICATION OF

THE APPLICANT'S LICENSED FACILITY OR TO CONSTRUCT A

SIMULCASTING FACILITY TO ACCOMMODATE THE CONDUCT OF

CASINO SIMULCASTING.

(II) PAY THE COSTS OF ESTABLISHING, MAINTAINING AND

OPERATING THE SIMULCASTING FACILITY.

(III) COMMENCE CASINO SIMULCASTING OPERATIONS.

(4) THE APPLICANT HAS ENTERED INTO OR WILL ENTER INTO AN

AGREEMENT WITH A LICENSED RACING ENTITY OR OTHER PERSON TO

MANAGE OR OPERATE CASINO SIMULCASTING OPERATIONS, AND THE

AGREEMENT HAS BEEN APPROVED BY THE COMMISSION.

(5) THE APPLICANT HAS THE EXPERTISE TO MANAGE CASINO

SIMULCASTING.

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(6) THE APPLICANT HAS THE FINANCIAL STABILITY, INTEGRITY

AND RESPONSIBILITY TO CONDUCT CASINO SIMULCASTING.

(7) THE APPLICANT HAS SUFFICIENT BUSINESS ABILITY AND

EXPERIENCE TO CREATE AND MAINTAIN A SUCCESSFUL CASINO

SIMULCASTING OPERATION.

(8) THE APPLICANT'S PROPOSED INTERNAL AND EXTERNAL

SECURITY CONTROLS AND PROPOSED SURVEILLANCE MEASURES WITHIN

THE AREA OF THE LICENSED FACILITY WHERE THE APPLICANT SEEKS

TO CONDUCT CASINO SIMULCASTING ARE ADEQUATE.

UNDER SUBSECTION (A)(6), (7) AND (8) MAY BE CONSIDERED

CONFIDENTIAL BY THE BOARD IF THE INFORMATION WOULD BE

CONFIDENTIAL UNDER SECTION 1206(F) (RELATING TO BOARD MINUTES

AND RECORDS).

§ 13F12. CASINO SIMULCASTING PERMIT.

(A) ISSUANCE OF PERMIT.--UPON REVIEW AND APPROVAL OF AN

APPLICATION SUBMITTED TO THE BOARD IN ACCORDANCE WITH SECTION

13F11 (RELATING TO APPLICATION FOR PERMIT AND REQUIREMENTS), THE

BOARD SHALL ISSUE A CASINO SIMULCASTING PERMIT TO THE APPLICANT.

(B) CONTENT OF PERMIT.--

(1) A CASINO SIMULCASTING PERMIT SHALL INCLUDE A LIST OF

THE HORSE RACE MEETINGS WHICH ARE PROPOSED TO BE SIMULCAST BY

THE CASINO SIMULCASTING PERMIT HOLDER AT ITS SIMULCASTING

FACILITY, INCLUDING THE NAMES AND LOCATIONS OF THE IN-STATE

SENDING TRACKS AND OUT-OF-STATE SENDING TRACKS, AND THE START

DATE AND EXPIRATION DATE OF ANY AGREEMENT OR AGREEMENTS THE

PERMIT HOLDER HAS ENTERED INTO OR WILL ENTER INTO WITH A

LICENSED RACING ENTITY OR OTHER PERSON FOR THE OPERATION OF

CASINO SIMULCASTING.

(2) A CASINO SIMULCASTING PERMIT HOLDER SHALL BE

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REQUIRED TO UPDATE THE INITIAL CASINO SIMULCASTING

APPLICATION AT TIMES PRESCRIBED BY THE BOARD, IN CONSULTATION

WITH THE COMMISSION.

§ 13F13. CASINO SIMULCASTING FACILITIES.

(A) ESTABLISHMENT OF SIMULCASTING FACILITY.--A LICENSED

GAMING ENTITY APPROVED FOR AND ISSUED A PERMIT TO OPERATE CASINO

SIMULCASTING UNDER THIS CHAPTER SHALL ESTABLISH A SIMULCASTING

FACILITY AS PART OF ITS LICENSED FACILITY. THE SIMULCASTING

FACILITY MAY BE ADJACENT TO, BUT SHALL NOT BE PART OF, ANY ROOM

OR LOCATION IN WHICH SLOT MACHINES OR TABLE GAMES ARE OPERATED

OR CONDUCTED IN ACCORDANCE WITH THE PROVISIONS OF THIS PART. THE

FOLLOWING SHALL APPLY:

(1) THE SIMULCASTING FACILITY SHALL CONFORM TO ALL

REQUIREMENTS CONCERNING SQUARE FOOTAGE, EQUIPMENT, SECURITY

MEASURES AND RELATED MATTERS WHICH THE BOARD, IN CONSULTATION

WITH THE COMMISSION, SHALL BY REGULATION PRESCRIBE.

(2) THE SPACE OR AREA REQUIRED FOR THE ESTABLISHMENT OF

A SIMULCASTING FACILITY SHALL NOT BE USED TO DECREASE THE

NUMBER OF SLOT MACHINES OR TABLE GAMES IN OPERATION AT THE

LICENSED FACILITY OR TO REDUCE THE SPACE APPROVED BY THE

BOARD FOR THE OPERATION OF SLOT MACHINES AND THE CONDUCT OF

TABLE GAMES.

(3) THE COST OF ESTABLISHING, MAINTAINING AND OPERATING

A SIMULCASTING FACILITY SHALL BE THE SOLE RESPONSIBILITY OF

THE LICENSED GAMING ENTITY.

(B) VIDEO DISPLAY MONITORS.--NOTWITHSTANDING 3 PA.C.S. CH.

93 (RELATING TO RACE HORSE INDUSTRY REFORM) OR REGULATIONS

PROMULGATED PURSUANT TO 3 PA.C.S. CH. 93, THE REGULATIONS

PROMULGATED BY THE BOARD SHALL PROVIDE FOR THE INSTALLATION OF

VIDEO DISPLAY TECHNOLOGY IN APPROVED AREAS OF LICENSED

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FACILITIES TO DELIVER SIMULCAST HORSE RACE MEETINGS TO PATRONS

VIA VIDEO WALLS AND OTHER SUCH INNOVATIVE VIDEO DISPLAY

TECHNOLOGY. THE BOARD MAY COLLABORATE WITH THE COMMISSION IN

DEVELOPING REGULATIONS TO GOVERN THE INSTALLATION AND OPERATION

OF VIDEO DISPLAY MONITORS IN ACCORDANCE WITH THIS SUBSECTION.

§ 13F14. LICENSE OR REGISTRATION OF EMPLOYEES REQUIRED.

EXCEPT AS PROVIDED IN THIS PART, ALL PERSONS ENGAGED DIRECTLY

IN WAGERING-RELATED ACTIVITIES AT A SIMULCASTING FACILITY,

WHETHER EMPLOYED BY THE LICENSED GAMING ENTITY, LICENSED RACING

ENTITY OR BY A PERSON OR ENTITY CONDUCTING CASINO SIMULCASTING

IN THE SIMULCASTING FACILITY UNDER AN AGREEMENT WITH THE

LICENSED GAMING ENTITY AND ALL OTHER EMPLOYEES OF THE LICENSED

GAMING ENTITY, LICENSED RACING ENTITY OR OF THE PERSON OR ENTITY

CONDUCTING CASINO SIMULCASTING WHO WORK OR WILL WORK IN THE

SIMULCASTING FACILITY, SHALL BE LICENSED OR REGISTERED IN

ACCORDANCE WITH REGULATIONS PROMULGATED BY THE BOARD IN

COLLABORATION WITH THE COMMISSION .

§ 13F15. KEY EMPLOYEES AND OCCUPATION PERMITS.

NOTHING IN THIS SUBCHAPTER SHALL BE CONSTRUED TO REQUIRE ANY

INDIVIDUAL WHO HOLDS A PRINCIPAL LICENSE, A KEY EMPLOYEE LICENSE

OR GAMING EMPLOYEE LICENSE UNDER CHAPTERS 13 (RELATING TO

LICENSEES) AND 13A (RELATING TO TABLE GAMES) OR WHO HOLDS A

LICENSE UNDER 3 PA.C.S. CH. 93 (RELATING TO RACE HORSE INDUSTRY

REFORM) TO OBTAIN A SEPARATE LICENSE, PERMIT OR REGISTRATION TO

BE EMPLOYED IN A CASINO SIMULCASTING PERMIT HOLDER'S CASINO

SIMULCASTING OPERATION AUTHORIZED UNDER THIS CHAPTER, IF THE

BOARD, IN CONSULTATION WITH THE COMMISSION, DETERMINES THAT

LICENSURE UNDER THE PROVISIONS OF THIS PART OR 3 PA.C.S. CH. 93

IS SUFFICIENT AND WILL NOT COMPROMISE THE INTEGRITY OF CASINO

SIMULCASTING.

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SUBCHAPTER D

CONDUCT OF CASINO SIMULCASTING

SEC.

13F31. CONDUCT OF CASINO SIMULCASTING.

13F32. TRANSMISSION OF LIVE RACES.

13F33. ACCOUNTING CONTROLS AND AUDIT PROTOCOLS.

13F34. CONDITION OF CONTINUED OPERATION.

13F35. APPLICATION OF LIQUOR CODE.

§ 13F31. CONDUCT OF CASINO SIMULCASTING.

(A) WAGERING.--WAGERING ON SIMULCAST HORSE RACES SHALL BE

CONDUCTED ONLY IN THE SIMULCASTING FACILITY.

(B) REQUIRED SECURITY.--

(1) THE SECURITY MEASURES FOR A SIMULCASTING FACILITY

SHALL INCLUDE, BUT MAY NOT BE LIMITED TO, THE INSTALLATION BY

THE LICENSED GAMING ENTITY OF A CLOSED-CIRCUIT TELEVISION

SYSTEM ACCORDING TO SPECIFICATIONS PROMULGATED BY THE BOARD,

IN CONSULTATION WITH THE COMMISSION .

(2) THE BOARD AND THE COMMISSION SHALL HAVE ACCESS TO

THE SIMULCAST SYSTEM OR ITS SIGNAL IN ACCORDANCE WITH

REGULATIONS PROMULGATED BY THE BOARD, IN CONSULTATION WITH

THE COMMISSION .

§ 13F32. TRANSMISSION OF LIVE RACES.

THE FOLLOWING SHALL APPLY:

(1) A LICENSED RACING ENTITY WHICH OPERATES INTERSTATE

OR INTERNATIONAL SIMULCASTING OF HORSE RACE MEETINGS IN THIS

COMMONWEALTH SHALL HAVE DISCRETION TO TRANSMIT ALL OR SOME OF

THE LIVE RACES CONDUCTED AT THE RACETRACK TO THE LICENSED

FACILITY OF A LICENSED GAMING ENTITY WHICH HAS ESTABLISHED A

SIMULCASTING FACILITY UNDER THIS CHAPTER. ANY RACE WHICH IS

TRANSMITTED FROM AN IN-STATE SENDING TRACK SHALL BE

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TRANSMITTED TO ALL LICENSED GAMING ENTITIES WHICH HAVE

ESTABLISHED SIMULCASTING FACILITIES.

(2) A LICENSED GAMING ENTITY WHICH ESTABLISHES A

SIMULCASTING FACILITY AND CONDUCTS CASINO SIMULCASTING IN

ACCORDANCE WITH THIS CHAPTER SHALL, AS A CONDITION OF

CONTINUED OPERATION OF CASINO SIMULCASTING, RECEIVE ALL LIVE

RACES WHICH ARE TRANSMITTED BY IN-STATE SENDING TRACKS.

§ 13F33. ACCOUNTING CONTROLS AND AUDIT PROTOCOLS.

(A) APPROVAL.--PRIOR TO THE COMMENCEMENT OF CASINO

SIMULCASTING, A CASINO SIMULCASTING PERMIT HOLDER SHALL SUBMIT

TO THE BOARD FOR APPROVAL ALL PROPOSED SITE AND ARCHITECTURAL

PLANS, INTERNAL CONTROL SYSTEMS AND AUDIT PROTOCOLS FOR THE

PERMIT HOLDER'S CASINO SIMULCASTING OPERATIONS.

(B) MINIMUM REQUIREMENTS.--A CASINO SIMULCASTING PERMIT

HOLDER'S INTERNAL CONTROLS AND AUDIT PROTOCOLS SHALL:

(1) PROVIDE FOR RELIABLE RECORDS, ACCOUNTS AND REPORTS

OF ANY FINANCIAL EVENT THAT OCCURS IN THE CONDUCT OF CASINO

SIMULCASTING, INCLUDING REPORTS TO THE BOARD AND COMMISSION

RELATED TO CASINO SIMULCASTING, AS MAY BE REQUIRED BY

REGULATION OF THE BOARD, IN CONSULTATION WITH THE COMMISSION .

(2) PROVIDE FOR ACCURATE AND RELIABLE FINANCIAL RECORDS

RELATED TO THE CONDUCT OF CASINO SIMULCASTING AND THE PARI-

MUTUEL SYSTEM OF WAGERING.

(3) ESTABLISH PROCEDURES AND SECURITY FOR THE COUNTING,

RECORDING AND STORAGE OF MONEY GENERATED FROM THE CONDUCT OF

CASINO SIMULCASTING.

(4) ESTABLISH PROCEDURES AND SECURITY STANDARDS FOR THE

MAINTENANCE OF TELECOMMUNICATIONS EQUIPMENT AND VIDEO DISPLAY

TECHNOLOGY USED IN CONNECTION WITH THE CONDUCT OF CASINO

SIMULCASTING.

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(5) ESTABLISH PROCEDURES AND RULES TO GOVERN THE CONDUCT

OF CASINO SIMULCASTING AND THE RESPONSIBILITY OF EMPLOYEES

RELATED TO CASINO SIMULCASTING.

(6) ESTABLISH PROCEDURES FOR THE COLLECTION, RECORDING

AND DEPOSIT OF REVENUE FROM THE CONDUCT OF CASINO

SIMULCASTING, INCLUDING THE ROLES OF THE COMMISSION , THE

DEPARTMENT, LICENSED RACING ENTITIES AND LICENSED GAMING

ENTITIES IN THE COLLECTION AND RECORDING OF THE REVENUE.

(7) ENSURE THAT THE SYSTEM OF PARI-MUTUEL WAGERING USED

IN THE CONDUCT OF CASINO SIMULCASTING IS IN ACCORDANCE WITH 3

PA.C.S. CH. 93 (RELATING TO RACE HORSE INDUSTRY REFORM) AND

REGULATIONS OF THE COMMISSION PROMULGATED UNDER 3 PA.C.S.

(RELATING TO AGRICULTURE).

(8) ENSURE, IN CONSULTATION WITH THE COMMISSION, THE

PROPER AND TIMELY ACCOUNTING FOR AND RETENTION OF PERCENTAGES

FOR PARI-MUTUEL POOLS AND THE PROPER AND TIMELY DISTRIBUTION

OF MONEY IN ANY PARI-MUTUEL POOL GENERATED FROM CASINO

SIMULCASTING.

(9) ENSURE THAT ALL FUNCTIONS, DUTIES AND

RESPONSIBILITIES RELATED TO CASINO SIMULCASTING ARE

APPROPRIATELY SEGREGATED AND PERFORMED IN ACCORDANCE WITH

SOUND FINANCIAL PRACTICES BY QUALIFIED EMPLOYEES.

(10) PERMIT USE OF ITS CASINO SIMULCASTING FACILITY BY

THE BOARD, THE BUREAU, THE COMMISSION AND OTHER PERSONS

AUTHORIZED UNDER THIS PART OR BY THE BOARD AND THE COMMISSION

TO FACILITATE THEIR ABILITY TO PERFORM REGULATORY AND

OVERSIGHT FUNCTIONS UNDER THIS CHAPTER.

SUBSECTION (A) SHALL INCLUDE A DETAILED DESCRIPTION OF THE

CASINO SIMULCASTING PERMIT HOLDER'S ADMINISTRATIVE AND

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ACCOUNTING PROCEDURES RELATED TO CASINO SIMULCASTING, INCLUDING

ITS WRITTEN SYSTEM OF INTERNAL CONTROLS. EACH WRITTEN SYSTEM OF

INTERNAL CONTROLS SHALL INCLUDE:

(1) AN ORGANIZATIONAL CHART DEPICTING APPROPRIATE

FUNCTIONS AND RESPONSIBILITIES OF EMPLOYEES INVOLVED IN

CASINO SIMULCASTING.

(2) A DESCRIPTION OF THE DUTIES AND RESPONSIBILITIES OF

EACH POSITION SHOWN ON THE ORGANIZATIONAL CHART.

(3) THE RECORD RETENTION POLICY OF THE PERMIT HOLDER.

(4) THE PROCEDURE TO BE UTILIZED TO ENSURE THAT MONEY

GENERATED FROM THE CONDUCT OF CASINO SIMULCASTING IS

SAFEGUARDED, INCLUDING MANDATORY COUNTING AND RECORDING

PROCEDURES.

(5) A STATEMENT SIGNED BY THE CASINO SIMULCASTING PERMIT

HOLDER'S CHIEF FINANCIAL OFFICER OR OTHER COMPETENT PERSON

ATTESTING THAT THE SIGNATORY BELIEVES, IN GOOD FAITH, THAT

THE SYSTEM SATISFIES THE REQUIREMENTS OF THIS SECTION.

(D) REVIEW.--PRIOR TO AUTHORIZING A PERMIT HOLDER TO CONDUCT

CASINO SIMULCASTING, THE BOARD, IN CONSULTATION WITH THE

COMMISSION , SHALL REVIEW THE SYSTEM OF INTERNAL CONTROLS

SUBMITTED UNDER SUBSECTION (C) TO DETERMINE WHETHER IT CONFORMS

TO THE REQUIREMENTS OF THIS SUBCHAPTER AND WHETHER IT PROVIDES

ADEQUATE AND EFFECTIVE CONTROLS FOR THE CONDUCT OF CASINO

SIMULCASTING.

(E) LICENSE OR REGISTRATION OF EMPLOYEES REQUIRED.--EXCEPT

AS PROVIDED IN SECTION 13F15 (RELATING TO KEY EMPLOYEES AND

OCCUPATION PERMITS), PERSONS ENGAGED DIRECTLY IN WAGERING-

RELATED ACTIVITIES AT A SIMULCASTING FACILITY, WHETHER EMPLOYED

BY THE LICENSED GAMING ENTITY, A LICENSED RACING ENTITY OR BY A

PERSON OR ENTITY CONDUCTING CASINO SIMULCASTING UNDER AN

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AGREEMENT WITH THE LICENSED GAMING ENTITY, LICENSED RACING

ENTITY AND ALL OTHER EMPLOYEES OF THE LICENSED GAMING ENTITY OR

OF THE PERSON OR ENTITY CONDUCTING CASINO SIMULCASTING WHO WORK

OR WILL WORK IN THE SIMULCASTING FACILITY SHALL BE LICENSED OR

REGISTERED IN ACCORDANCE WITH REGULATIONS PROMULGATED BY THE

BOARD IN COLLABORATION WITH THE COMMISSION .

§ 13F34. CONDITION OF CONTINUED OPERATION.

AS A CONDITION OF CONTINUED OPERATION, A CASINO SIMULCASTING

PERMIT HOLDER SHALL AGREE TO MAINTAIN ALL BOOKS, RECORDS AND

DOCUMENTS PERTAINING TO CASINO SIMULCASTING IN A MANNER AND

LOCATION WITHIN THIS COMMONWEALTH AS APPROVED BY THE BOARD, IN

CONSULTATION WITH THE COMMISSION. ALL BOOKS, RECORDS AND

DOCUMENTS RELATED TO CASINO SIMULCASTING SHALL:

(1) BE ORGANIZED IN A MANNER TO CLEARLY DEPICT BY

SEPARATE RECORD THE TOTAL AMOUNT OF MONEY CONTRIBUTED TO

EVERY PARI-MUTUEL POOL IN ACCORDANCE WITH THE APPLICABLE

PROVISIONS OF 3 PA.C.S. CH. 93 (RELATING TO RACE HORSE

INDUSTRY REFORM) AND ANY REGULATION PROMULGATED UNDER 3

PA.C.S. CH. 93.

(2) BE SEGREGATED BY SEPARATE ACCOUNTS WITHIN THE

LICENSED GAMING ENTITY'S BOOKS, RECORDS AND DOCUMENTS, EXCEPT

FOR ANY BOOKS, RECORDS OR DOCUMENTS THAT ARE COMMON TO SLOT

MACHINE OPERATIONS, TABLE GAME OPERATIONS AND CASINO

SIMULCASTING, AS DETERMINED BY THE BOARD IN CONSULTATION WITH

THE COMMISSION.

(3) BE IMMEDIATELY AVAILABLE FOR INSPECTION UPON REQUEST

OF THE BOARD, THE COMMISSION, THE BUREAU, THE DEPARTMENT, THE

PENNSYLVANIA STATE POLICE OR THE ATTORNEY GENERAL, OR AGENTS

THEREOF, DURING ALL HOURS OF OPERATION OF THE PERMIT HOLDER'S

SIMULCASTING FACILITY IN ACCORDANCE WITH REGULATIONS

20170HB0271PN1942 - 442 -

PROMULGATED BY THE BOARD IN CONSULTATION WITH THE COMMISSION .

(4) BE MAINTAINED FOR A SPECIFIC PERIOD OF TIME AS THE

BOARD, IN CONSULTATION WITH THE COMMISSION , BY REGULATION,

MAY REQUIRE.

§ 13F35. APPLICATION OF LIQUOR CODE.

THE PROVISIONS OF SECTION 493(24)(II) OF THE ACT OF APRIL 12,

1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE, SHALL ALSO APPLY

TO CASINO SIMULCASTING.

SUBCHAPTER E

FEES AND TAXES

SEC.

13F41. CASINO SIMULCASTING AUTHORIZATION FEE.

13F42. RETENTION AND DISTRIBUTION OF MONEY AND PARI-MUTUEL

POOLS.

13F43. CASINO SIMULCASTING TAXES.

13F44. CONSTRUCTION.

§ 13F41. CASINO SIMULCASTING AUTHORIZATION FEE.

A CASINO SIMULCASTING PERMIT SHALL NOT BE SUBJECT TO THE

PAYMENT OF AN AUTHORIZATION FEE, RENEWAL OR A RENEWAL FEE OR THE

PAYMENT OF AN ADDITIONAL PERMIT FEE.

§ 13F42. RETENTION AND DISTRIBUTION OF MONEY AND PARI-MUTUEL

POOLS.

(A) WAGERS INCLUDED IN PARI-MUTUEL POOLS.--

(1) SUMS WAGERED AT A SIMULCASTING FACILITY ON THE

RESULTS OF A SIMULCAST HORSE RACE SHALL BE INCLUDED IN THE

APPROPRIATE PARI-MUTUEL POOL GENERATED FOR THE RACE BEING

TRANSMITTED IN ACCORDANCE WITH 3 PA.C.S. § 9335 (RELATING TO

PARI-MUTUEL POOL DISTRIBUTION) AND SHALL BE DISTRIBUTED IN

ACCORDANCE WITH 3 PA.C.S. § 9335 OR ANY REGULATIONS

PROMULGATED UNDER 3 PA.C.S. § 9335. ALL REMAINING MONEY SHALL

20170HB0271PN1942 - 443 -

BE PAID TO THE GENERAL FUND.

(2) PAYMENTS TO PERSONS HOLDING WINNING TICKETS AT A

LICENSED FACILITY SHALL BE MADE ACCORDING TO THE SAME ODDS AS

THOSE GENERATED AT THE IN-STATE SENDING TRACK.

(3) A PERSON PLACING A WAGER ON A SIMULCAST HORSE RACE

AT A SIMULCASTING FACILITY SHALL NOT BE CHARGED A FEE FOR

PLACING THE WAGER IN ADDITION TO THE AMOUNT WAGERED.

(B) COMPUTATION OF MONEY WAGERED.--ALL MONEY WAGERED BY

PLAYERS ON HORSE RACE MEETINGS AT A SIMULCASTING FACILITY SHALL

BE COMPUTED IN THE AMOUNT OF MONEY WAGERED EACH RACING DAY FOR

PURPOSES OF TAXATION UNDER 3 PA.C.S. § 9334 (RELATING TO STATE

RACING FUND AND TAX RATE), ALL THOROUGHBRED RACES SHALL BE

CONSIDERED A PART OF A THOROUGHBRED HORSE RACE MEETING AND ALL

HARNESS RACES SHALL BE CONSIDERED A PART OF A HARNESS HORSE RACE

MEETING FOR PURPOSES OF 3 PA.C.S. § 9334.

§ 13F43. CASINO SIMULCASTING TAXES.

(A) IMPOSITION.--

(1) ALL LICENSED GAMING ENTITIES THAT CONDUCT CASINO

SIMULCASTING SHALL PAY A TAX THROUGH THE DEPARTMENT FOR

CREDIT TO THE GENERAL FUND.

(2) THE TAX IMPOSED ON ALL LICENSED GAMING ENTITIES

SHALL BE A PERCENTAGE TAX IN THE AMOUNT OF 2% OF THE AMOUNT

WAGERED EACH RACING DAY ON CASINO SIMULCASTING AND SHALL BE

PAID FROM THE MONEY RETAINED BY THE LICENSED GAMING ENTITY.

THE TAX IMPOSED UNDER THIS PARAGRAPH SHALL BE PAID TO THE

DEPARTMENT ON A FORM AND IN THE MANNER PRESCRIBED BY THE

DEPARTMENT FOR DEPOSIT INTO THE GENERAL FUND.

(3) THE CASINO SIMULCASTING TAX IMPOSED UNDER THIS

SECTION SHALL BE PAID TO THE DEPARTMENT BY THE CASINO

SIMULCASTING PERMIT HOLDER FOR DEPOSIT INTO THE GENERAL FUND.

20170HB0271PN1942 - 444 -

(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 THE AMOUNTS RETAINED BY THE CASINO SIMULCASTING

PERMIT HOLDER FROM THE AMOUNT WAGERED ON CASINO SIMULCASTING

EACH RACING DAY DURING THE PREVIOUS WEEK.

(2) ALL MONEY OWED TO THE COMMONWEALTH UNDER THIS

SECTION SHALL BE HELD IN TRUST FOR THE COMMONWEALTH BY THE

PERMIT HOLDER UNTIL THE FUNDS ARE PAID TO THE DEPARTMENT.

UNLESS OTHERWISE AGREED TO BY THE BOARD, A CASINO

SIMULCASTING PERMIT HOLDER SHALL ESTABLISH A SEPARATE BANK

ACCOUNT INTO WHICH CASINO SIMULCASTING REVENUE SHALL BE

DEPOSITED AND MAINTAINED UNTIL SUCH TIME AS THE FUNDS ARE

PAID TO THE DEPARTMENT UNDER THIS SECTION.

§ 13F44. CONSTRUCTION.

NOTHING IN THIS CHAPTER AND SECTION 1207 (RELATING TO

REGULATORY AUTHORITY OF BOARD), AS IT RELATES TO CASINO

SIMULCASTING, SHALL BE CONSTRUED TO ALTER, PREEMPT OR OTHERWISE

IMPINGE THE AUTHORITY OF THE COMMISSION UNDER 3 PA.C.S. CH. 93

(RELATING TO RACE HORSE INDUSTRY REFORM).

SECTION 26. SECTION 1402(B) OF TITLE 4 IS AMENDED TO READ:

§ 1402. GROSS TERMINAL REVENUE DEDUCTIONS.

* * *

(B) [(RESERVED).] ASSESSMENT LIMITATION.--

(1) BEGINNING JULY 1, 2017, THE ASSESSMENT RATE

DETERMINED BY THE DEPARTMENT UNDER SUBSECTION (A) SHALL NOT

EXCEED AN AMOUNT EQUAL TO 1.7% OF THE SLOT MACHINE LICENSEE'S

GROSS TERMINAL REVENUE.

(2) BEGINNING JULY 1, 2018, AND EACH YEAR THEREAFTER,

THE ASSESSMENT RATE DETERMINED BY THE DEPARTMENT UNDER

20170HB0271PN1942 - 445 -

SUBSECTION (A) SHALL NOT EXCEED AN AMOUNT EQUAL TO 1.5% OF

THE SLOT MACHINE LICENSEE'S GROSS TERMINAL REVENUE.

SECTION 27. SECTION 1403 OF TITLE 4 IS REENACTED AND AMENDED

TO READ:

§ 1403. ESTABLISHMENT OF STATE GAMING FUND AND NET SLOT MACHINE

REVENUE DISTRIBUTION.

(A) FUND ESTABLISHED.--THERE IS HEREBY ESTABLISHED THE STATE

GAMING FUND WITHIN THE STATE TREASURY.

(B) SLOT MACHINE TAX.--THE DEPARTMENT SHALL DETERMINE AND

EACH SLOT MACHINE LICENSEE SHALL PAY A DAILY TAX OF 34% FROM ITS

DAILY GROSS TERMINAL REVENUE FROM THE SLOT MACHINES IN OPERATION

AT ITS FACILITY AND A LOCAL SHARE ASSESSMENT AS PROVIDED IN

SUBSECTION (C). ALL FUNDS OWED TO THE COMMONWEALTH, A COUNTY OR

A MUNICIPALITY UNDER THIS SECTION SHALL BE HELD IN TRUST BY THE

LICENSED GAMING ENTITY FOR THE COMMONWEALTH, THE COUNTY AND THE

MUNICIPALITY UNTIL THE FUNDS ARE PAID OR TRANSFERRED TO THE

FUND. UNLESS OTHERWISE AGREED TO BY THE BOARD, A LICENSED GAMING

ENTITY SHALL ESTABLISH A SEPARATE BANK ACCOUNT TO MAINTAIN

GROSS TERMINAL REVENUE UNTIL SUCH TIME AS THE FUNDS ARE PAID OR

TRANSFERRED UNDER THIS SECTION. MONEYS IN THE FUND ARE HEREBY

APPROPRIATED TO THE DEPARTMENT ON A CONTINUING BASIS FOR THE

PURPOSES SET FORTH IN SUBSECTION (C).

(1) TRANSFER THE SLOT MACHINE TAX AND ASSESSMENT IMPOSED

IN SUBSECTION (B) TO THE FUND.

(2) FROM THE LOCAL SHARE ASSESSMENT ESTABLISHED IN

SUBSECTION (B), MAKE QUARTERLY DISTRIBUTIONS AMONG THE

COUNTIES HOSTING A LICENSED FACILITY IN ACCORDANCE WITH THE

FOLLOWING SCHEDULE:

(I) IF THE LICENSED FACILITY IS A CATEGORY 1

20170HB0271PN1942 - 446 -

LICENSED FACILITY THAT IS LOCATED AT A HARNESS RACETRACK

AND THE COUNTY, INCLUDING A HOME RULE COUNTY, IN WHICH

THE LICENSED FACILITY IS LOCATED IS:

(A) A COUNTY OF THE FIRST CLASS: 4% OF THE

GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE

LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.

NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY,

FUNDS FROM LICENSED GAMING ENTITIES LOCATED WITHIN A

COUNTY OF THE FIRST CLASS SHALL NOT BE DISTRIBUTED

OUTSIDE OF A COUNTY OF THE FIRST CLASS.

(B) A COUNTY OF THE SECOND CLASS: 2% OF THE

GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE

LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.

GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE

LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.

AN ADDITIONAL 1% OF THE GROSS TERMINAL REVENUE TO THE

COUNTY HOSTING THE LICENSED FACILITY FROM EACH SUCH

LICENSED FACILITY FOR THE PURPOSE OF MUNICIPAL GRANTS

WITHIN THE COUNTY IN WHICH THE LICENSEE IS LOCATED.

(D) (I) A COUNTY OF THE THIRD CLASS: EXCEPT AS

PROVIDED IN SUBCLAUSE (II), 2% OF THE GROSS

TERMINAL REVENUE FROM EACH SUCH LICENSED FACILITY

SHALL BE DEPOSITED INTO A RESTRICTED RECEIPTS

ACCOUNT TO BE ESTABLISHED IN THE COMMONWEALTH

FINANCING AUTHORITY TO BE USED EXCLUSIVELY FOR

GRANTS FOR PROJECTS IN THE PUBLIC INTEREST TO

MUNICIPALITIES WITHIN THE COUNTY WHERE THE

LICENSED FACILITY IS LOCATED.

(I.1) PRIORITY SHALL BE GIVEN TO MULTIYEAR

20170HB0271PN1942 - 447 -

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

20170HB0271PN1942 - 448 -

THIRD CLASS, WHICH INCLUDES A CITY OF THE THIRD

CLASS THAT IS LOCATED IN TWO COUNTIES OF THE

THIRD CLASS AND IS NOT THE HOST COUNTY FOR THE

LICENSED FACILITY, SHALL RECEIVE .8% OF THE GROSS

TERMINAL REVENUE TO BE DISTRIBUTED AS FOLLOWS:

60% TO A NONHOST CITY OF THE THIRD CLASS LOCATED

SOLELY IN THE NONHOST COUNTY IN WHICH THE HOST

CITY OF THE THIRD CLASS IS ALSO LOCATED OR 60% TO

THE NONHOST CITY OF THE THIRD CLASS LOCATED BOTH

IN THE HOST AND NONHOST COUNTIES OF THE THIRD

CLASS, 35% TO THE NONHOST COUNTY AND 5% TO THE

NONHOST COUNTY FOR THE PURPOSE OF MAKING

MUNICIPAL GRANTS WITHIN THE COUNTY.

(E) A COUNTY OF THE FOURTH CLASS: 2% OF THE

GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED

FACILITY SHALL BE DISTRIBUTED AS FOLLOWS:

(I) THE DEPARTMENT SHALL MAKE DISTRIBUTIONS

DIRECTLY TO EACH MUNICIPALITY WITHIN THE COUNTY,

EXCEPT THE HOST MUNICIPALITY, BY USING A FORMULA

EQUAL TO THE SUM OF $25,000 PLUS $10 PER RESIDENT

OF THE MUNICIPALITY USING THE MOST RECENT

POPULATION FIGURES PROVIDED BY THE DEPARTMENT OF

COMMUNITY AND ECONOMIC DEVELOPMENT, PROVIDED,

HOWEVER, THAT THE AMOUNT SO DISTRIBUTED TO ANY

MUNICIPALITY SHALL NOT EXCEED 50% OF ITS TOTAL

BUDGET FOR FISCAL YEAR 2009 OR 2013, WHICHEVER IS

GREATER, ADJUSTED FOR INFLATION IN SUBSEQUENT

FISCAL YEARS BY AN AMOUNT NOT TO EXCEED AN ANNUAL

COST-OF-LIVING ADJUSTMENT CALCULATED BY APPLYING

ANY UPWARD PERCENTAGE CHANGE IN THE CONSUMER

20170HB0271PN1942 - 449 -

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

BE UTILIZED AS LOCAL MATCHING FUNDS FOR OTHER

20170HB0271PN1942 - 450 -

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

20170HB0271PN1942 - 451 -

RACETRACK AND THE COUNTY IN WHICH THE LICENSED FACILITY

IS LOCATED IS:

(A) A COUNTY OF THE FIRST CLASS: 4% OF THE

GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE

LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.

NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY,

FUNDS FROM LICENSED GAMING ENTITIES LOCATED WITHIN

THE COUNTY OF THE FIRST CLASS SHALL NOT BE

DISTRIBUTED OUTSIDE OF A COUNTY OF THE FIRST CLASS.

(B) A COUNTY OF THE SECOND CLASS: 2% OF THE

GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE

LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.

GROSS TERMINAL REVENUE TO THE COUNTY HOSTING THE

LICENSED FACILITY FROM EACH SUCH LICENSED FACILITY.

AN ADDITIONAL 1% OF THE GROSS TERMINAL REVENUE TO THE

COUNTY HOSTING THE LICENSED FACILITY FROM EACH SUCH

LICENSED FACILITY FOR THE PURPOSE OF MUNICIPAL GRANTS

WITHIN THE COUNTY IN WHICH THE LICENSEE IS LOCATED.

(D) A COUNTY OF THE THIRD CLASS WHICH IS ALSO A

HOME RULE COUNTY: 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 MINUS THE AMOUNT CONTAINED IN

CLAUSES (D.1) AND (D.2) 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. BEGINNING JANUARY

1, 2018, MUNICIPAL GRANTS AUTHORIZED UNDER THIS

CLAUSE SHALL NOT BE AWARDED THROUGH A COUNTY ECONOMIC

20170HB0271PN1942 - 452 -

DEVELOPMENT OR REDEVELOPMENT AUTHORITY AND SHALL ONLY

BE AWARDED BY THE COUNTY THROUGH AN OFFICIAL ACTION

OF THE COUNTY COUNCIL AND THE COUNTY EXECUTIVE

GOVERNING THE COUNTY OF THE THIRD CLASS WHICH IS ALSO

A HOME RULE COUNTY. 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.

(D.1) $500,000 OF THE GROSS TERMINAL REVENUE TO

A CITY OF THE THIRD CLASS WITH A POPULATION OF NOT

LESS THAN 80,000 LOCATED WITHIN A COUNTY OF THE THIRD

CLASS THAT IS ALSO A HOME RULE COUNTY TO BE USED

EXCLUSIVELY FOR POLICE, FIRE AND OTHER EMERGENCY

SERVICES OR INFRASTRUCTURE PROJECTS. NOTWITHSTANDING

THE PROVISIONS OF THE CAPITAL FACILITIES DEBT

ENABLING ACT, FUNDS DISTRIBUTED UNDER THIS CLAUSE MAY

BE UTILIZED AS LOCAL MATCHING FUNDS FOR OTHER GRANTS

OR LOANS FROM THE COMMONWEALTH.

(D.2) $1,500,000 OF THE GROSS TERMINAL REVENUE

ANNUALLY TO A LAND BANK JURISDICTION ESTABLISHED BY A

COUNTY OF THE THIRD CLASS WHICH IS ALSO A HOME RULE

COUNTY. UNTIL A LAND BANK JURISDICTION IS ESTABLISHED

BY A COUNTY OF THE THIRD CLASS WHICH IS ALSO A HOME

RULE COUNTY AFTER THE EFFECTIVE DATE OF THIS

SUBCLAUSE, $1,500,000 TO THE COUNTY REDEVELOPMENT

AUTHORITY.

(D.3) A COUNTY OF THE THIRD CLASS WHICH IS NOT A

HOME RULE COUNTY: 1% OF THE GROSS TERMINAL REVENUE

TO THE COUNTY HOSTING THE LICENSED FACILITY FROM EACH

20170HB0271PN1942 - 453 -

SUCH LICENSED FACILITY MINUS AMOUNTS IN CLAUSES

(D.4), (D.5) AND (D.6). 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.

(D.4) $220,000 OF THE GROSS TERMINAL REVENUE

ANNUALLY TO A CONTIGUOUS COUNTY CONTAINING A TOWNSHIP

THAT RECEIVES A PORTION OF THE LICENSED FACILITY'S

SLOT MACHINE OPERATION FEE UNDER PARAGRAPH (3)(V)(C)

FOR THE PURPOSE OF MUNICIPAL GRANTS WITHIN THE

COUNTY. 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.

(D.5) $50,000 OF THE GROSS TERMINAL REVENUE

ANNUALLY TO A CONTIGUOUS COUNTY OF THE FOURTH CLASS

FOR FIRE AND EMERGENCY SERVICES AND ECONOMIC

DEVELOPMENT. 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.

(D.6) $30,000 OF THE GROSS TERMINAL REVENUE

ANNUALLY TO A TOWNSHIP OF THE SECOND CLASS WITH A

POPULATION BETWEEN 2,000 AND 2,500 AS OF THE 2010

20170HB0271PN1942 - 454 -

DECENNIAL CENSUS THAT IS CONTIGUOUS TO A TOWNSHIP IN

A COUNTY OF THE FIFTH CLASS THAT RECEIVES A PORTION

OF THE LICENSED FACILITY'S SLOT MACHINE OPERATION FEE

UNDER PARAGRAPH (3)(V)(C).

(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

20170HB0271PN1942 - 455 -

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.

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

20170HB0271PN1942 - 456 -

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) 20% SHALL BE DISTRIBUTED TO THE HOST

CITY.

(B) 30% SHALL BE DISTRIBUTED TO THE HOST

COUNTY.

(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 THAT 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, AND THE SUM OF $250,000 ANNUALLY

FOR A PERIOD OF 20 YEARS TO THE HOST

COUNTY FOR THE PURPOSE OF FUNDING THE

CONSTRUCTION OF A POOL AND INDOOR

20170HB0271PN1942 - 457 -

RECREATION FACILITY AT AN EXISTING

NONPROFIT RECREATION CENTER IN A

BOROUGH WITH A POPULATION BETWEEN 3,400

AND 3,800 AT THE 2010 DECENNIAL CENSUS.

(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 WITHIN THE HOST COUNTY TO

BE USED EXCLUSIVELY FOR ECONOMIC

DEVELOPMENT PROJECTS, COMMUNITY

IMPROVEMENT PROJECTS AND OTHER PROJECTS

IN THE PUBLIC INTEREST WITHIN THE HOST

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

20170HB0271PN1942 - 458 -

THE COUNTY.]

(A) 60% 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) 35% SHALL BE DISTRIBUTED TO THE

NONHOST COUNTY.

RESTRICTED RECEIPTS ACCOUNT TO BE ESTABLISHED

IN THE COMMONWEALTH FINANCING AUTHORITY FOR

DISTRIBUTION WITHIN THE NONHOST COUNTY TO BE

USED EXCLUSIVELY FOR ECONOMIC DEVELOPMENT

PROJECTS, COMMUNITY IMPROVEMENT PROJECTS AND

OTHER PROJECTS IN THE PUBLIC INTEREST WITHIN

THE NONHOST 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

20170HB0271PN1942 - 459 -

FACILITIES DEBT ENABLING ACT, GRANTS MADE UNDER THIS

CLAUSE MAY BE UTILIZED AS LOCAL MATCHING FUNDS FOR

OTHER GRANTS OR LOANS FROM THE COMMONWEALTH.

(F) COUNTIES OF THE FIFTH CLASS: 2% OF THE

GROSS TERMINAL REVENUE FROM EACH SUCH LICENSED

FACILITY SHALL BE DEPOSITED AND DISTRIBUTED AS

FOLLOWS:

(I) ONE PERCENT TO BE DISTRIBUTED AS

FOLLOWS:

(A) BEGINNING IN 2010, THE SUM OF

$2,400,000 ANNUALLY FOR A PERIOD OF 20 YEARS

TO THE COUNTY FOR PURPOSES OF FUNDING DEBT

SERVICE RELATED TO THE CONSTRUCTION OF A

COMMUNITY COLLEGE CAMPUS LOCATED WITHIN THE

COUNTY.

(B) ANY FUNDS NOT DISTRIBUTED UNDER

SUBCLAUSE (A) SHALL BE DEPOSITED INTO A

RESTRICTED RECEIPTS ACCOUNT TO BE ESTABLISHED

IN THE COMMONWEALTH FINANCING AUTHORITY TO BE

USED EXCLUSIVELY FOR GRANTS WITHIN THE COUNTY

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

20170HB0271PN1942 - 460 -

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

COMMONWEALTH.

(G) ANY COUNTY NOT SPECIFICALLY ENUMERATED IN

CLAUSES [(A)] (B) 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%

20170HB0271PN1942 - 461 -

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 SUCH LICENSED

FACILITY SHALL BE DEPOSITED AS FOLLOWS:

(I) SEVENTY-FIVE PERCENT SHALL BE DEPOSITED

FOR THE PURPOSE OF SUPPORTING THE MAINTENANCE AND

REFURBISHMENT OF THE PARKS AND HERITAGE SITES

THROUGHOUT THE COUNTY IN WHICH THE LICENSED

FACILITY IS LOCATED.

(II) TWELVE AND ONE-HALF PERCENT SHALL BE

DEPOSITED FOR THE PURPOSE OF SUPPORTING A CHILD

20170HB0271PN1942 - 462 -

ADVOCACY CENTER LOCATED WITHIN THE COUNTY IN

WHICH THE LICENSED FACILITY IS LOCATED.

(III) TWELVE AND ONE-HALF PERCENT SHALL BE

DEPOSITED FOR THE PURPOSE OF SUPPORTING AN

ORGANIZATION PROVIDING COMPREHENSIVE SUPPORT

SERVICES TO VICTIMS OF DOMESTIC VIOLENCE,

INCLUDING LEGAL AND MEDICAL AID, SHELTERS,

TRANSITIONAL HOUSING AND COUNSELING LOCATED

WITHIN THE COUNTY IN WHICH THE LICENSED FACILITY

IS LOCATED.

FACILITY LOCATED IN A COUNTY OF THE FIFTH CLASS THAT

IS CONTIGUOUS TO A COUNTY OF THE SEVENTH CLASS, 2% OF

THE GROSS TERMINAL REVENUE FROM THE LICENSED FACILITY

SHALL BE DEPOSITED INTO A RESTRICTED RECEIPTS ACCOUNT

TO BE ESTABLISHED IN THE COMMONWEALTH FINANCING

AUTHORITY TO BE USED EXCLUSIVELY FOR GRANTS WITHIN

THE COUNTY FOR ECONOMIC DEVELOPMENT PROJECTS,

INFRASTRUCTURE PROJECTS, COMMUNITY IMPROVEMENT

PROJECTS AND OTHER PROJECTS IN THE PUBLIC INTEREST

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

20170HB0271PN1942 - 463 -

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

20170HB0271PN1942 - 464 -

COUNTY, INCLUDING MUNICIPAL GRANTS AS SPECIFIED IN

SUBPARAGRAPH (V).

(IX) NOTHING IN THIS PARAGRAPH SHALL PREVENT ANY OF

THE ABOVE COUNTIES WHICH DIRECTLY RECEIVE A DISTRIBUTION

UNDER THIS SECTION FROM ENTERING INTO INTERGOVERNMENTAL

COOPERATIVE AGREEMENTS WITH OTHER JURISDICTIONS FOR

SHARING THIS MONEY.

(3) FROM [THE LOCAL SHARE ASSESSMENT ESTABLISHED IN

SUBSECTION (B)] THE SLOT MACHINE OPERATION FEES DEPOSITED

INTO THE FUND UNDER SECTION 1326.1(D) (RELATING TO SLOT

MACHINE LICENSE OPERATION FEE), 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.

(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

20170HB0271PN1942 - 465 -

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, LESS

ANY AMOUNT UP TO $5,000,000 RECEIVED PURSUANT TO A

WRITTEN AGREEMENT WITH A LICENSED GAMING ENTITY EXECUTED

20170HB0271PN1942 - 466 -

PRIOR TO THE EFFECTIVE DATE OF THIS PART, SHALL BE

DISTRIBUTED TO THE CITY, SUBJECT, HOWEVER, TO THE

BUDGETARY LIMITATION IN THIS SUBPARAGRAPH. IN THE EVENT

THAT THE CITY HAS A WRITTEN AGREEMENT WITH A LICENSED

GAMING ENTITY EXECUTED PRIOR TO THE EFFECTIVE DATE OF

THIS PART, THE AMOUNT PAID UNDER THE AGREEMENT TO THE

CITY SHALL BE APPLIED AND CREDITED [TO THE DIFFERENCE

BETWEEN 2% OF THE GROSS TERMINAL REVENUE AND THE

$10,000,000 OWED UNDER THIS SUBPARAGRAPH IF THE 2% OF THE

GROSS TERMINAL REVENUE IS LESS THAN $10,000,000. IF 2% OF

THE GROSS TERMINAL REVENUE IS GREATER THAN THE

$10,000,000 REQUIRED TO BE PAID UNDER THIS SUBPARAGRAPH,

THE CREDIT SHALL NOT APPLY. THE AMOUNT OF GROSS TERMINAL

REVENUE REQUIRED TO BE PAID PURSUANT TO THE AGREEMENT

SHALL BE DEEMED TO BE GROSS TERMINAL REVENUE FOR PURPOSES

OF THIS SUBPARAGRAPH.], UP TO $5,000,000, TO THE SLOT

MACHINE LICENSE OPERATION FEE OWED UNDER SECTION 1326.1.

THE AMOUNT ALLOCATED TO THE DESIGNATED MUNICIPALITIES

SHALL NOT EXCEED 50% OF THEIR TOTAL BUDGET FOR FISCAL

YEAR 2003-2004, ADJUSTED FOR INFLATION IN SUBSEQUENT

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,

20170HB0271PN1942 - 467 -

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, OTHER THAN A

CATEGORY 3 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, OTHER THAN A CATEGORY 3 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

20170HB0271PN1942 - 468 -

FACILITY LOCATED IN THE TOWNSHIP] $10,000,000 ANNUALLY

SHALL BE DISTRIBUTED TO THE TOWNSHIP, SUBJECT, HOWEVER,

TO THE BUDGETARY LIMITATION IN THIS SUBPARAGRAPH. THE

AMOUNT ALLOCATED TO THE DESIGNATED MUNICIPALITIES SHALL

NOT EXCEED 50% OF THEIR TOTAL BUDGET FOR FISCAL YEAR

2003-2004, ADJUSTED FOR INFLATION IN SUBSEQUENT YEARS BY

AN AMOUNT NOT TO EXCEED AN ANNUAL COST-OF-LIVING

ADJUSTMENT CALCULATED BY APPLYING THE PERCENTAGE CHANGE

IN THE CONSUMER PRICE INDEX IMMEDIATELY PRIOR TO THE DATE

THE ADJUSTMENT IS DUE TO TAKE EFFECT. ANY REMAINING MONEY

SHALL BE [COLLECTED BY THE DEPARTMENT FROM EACH LICENSED

GAMING ENTITY AND] DISTRIBUTED IN ACCORDANCE WITH

PARAGRAPH (2) BASED UPON THE CLASSIFICATION OF COUNTY

WHERE THE LICENSED FACILITY IS LOCATED. [IN THE EVENT

THAT THE REVENUES GENERATED BY THE 2% DO NOT MEET THE

$10,000,000 MINIMUM SPECIFIED IN THIS SUBPARAGRAPH, THE

DEPARTMENT SHALL COLLECT THE REMAINDER OF THE MINIMUM

AMOUNT OF $10,000,000 FROM EACH LICENSED GAMING ENTITY

OPERATING A LICENSED FACILITY IN THE TOWNSHIP, PAY ANY

BALANCE DUE TO THE TOWNSHIP AND TRANSFER ANY REMAINDER IN

ACCORDANCE WITH PARAGRAPH (2).]

(V) TO A TOWNSHIP OF THE SECOND CLASS HOSTING A

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

20170HB0271PN1942 - 469 -

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

$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

20170HB0271PN1942 - 470 -

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

20170HB0271PN1942 - 471 -

GENERATED BY THE 2% DO NOT MEET THE $10,000,000

MINIMUM SPECIFIED IN THIS SUBPARAGRAPH, THE

DEPARTMENT SHALL COLLECT THE REMAINDER OF THE MINIMUM

AMOUNT OF $10,000,000 FROM EACH LICENSED GAMING

ENTITY OPERATING A LICENSED FACILITY IN THE TOWNSHIP,

PAY ANY BALANCE DUE TO THE TOWNSHIP AND TRANSFER ANY

REMAINDER IN ACCORDANCE WITH PARAGRAPH (2).]

LICENSED GAMING ENTITY OPERATING A LICENSED FACILITY

AND OWNING LAND ADJACENT TO THE LICENSED FACILITY

LOCATED IN MORE THAN ONE TOWNSHIP OF THE SECOND

CLASS, OTHER THAN A CATEGORY 3 LICENSED FACILITY, TO

THE TOWNSHIP OF THE SECOND CLASS THAT IS LOCATED IN A

COUNTY OF THE FIFTH CLASS IN WHICH THE ADJACENT LAND

IS LOCATED, INCLUDING RACETRACKS, GRAZING FIELDS OR

ANY OTHER ADJOINING REAL PROPERTY.] FOR LAND OWNED BY

A LICENSED GAMING ENTITY, OTHER THAN A CATEGORY 3

LICENSED FACILITY, AND LOCATED IN MORE THAN ONE

TOWNSHIP OF THE SECOND CLASS: $160,000 SHALL BE

DISTRIBUTED ANNUALLY TO THE TOWNSHIP OF THE SECOND

CLASS WHICH IS LOCATED IN A COUNTY OF THE FIFTH CLASS

IF THE LAND OWNED, INCLUDING RACETRACKS, GRAZING

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,

20170HB0271PN1942 - 472 -

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

20170HB0271PN1942 - 473 -

EXCEED AN ANNUAL COST-OF-LIVING ADJUSTMENT CALCULATED BY

APPLYING THE PERCENTAGE CHANGE IN THE CONSUMER PRICE

INDEX IMMEDIATELY PRIOR TO THE DATE THE ADJUSTMENT IS DUE

TO TAKE EFFECT. ANY REMAINING MONEY SHALL BE [COLLECTED

BY THE DEPARTMENT FROM EACH LICENSED GAMING ENTITY AND]

DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH (2) BASED UPON

THE CLASSIFICATION OF COUNTY WHERE THE LICENSED FACILITY

IS LOCATED. [IN THE EVENT THAT THE REVENUES GENERATED BY

THE 2% DO NOT MEET THE $10,000,000 MINIMUM SPECIFIED IN

THIS SUBPARAGRAPH, THE DEPARTMENT SHALL COLLECT THE

REMAINDER OF THE MINIMUM AMOUNT OF $10,000,000 FROM EACH

LICENSED GAMING ENTITY OPERATING A LICENSED FACILITY IN

THE INCORPORATED TOWN, PAY ANY BALANCE DUE TO THE TOWN

AND TRANSFER ANY REMAINDER IN ACCORDANCE WITH PARAGRAPH

(2).

(VIII) (A) EXCEPT AS PROVIDED IN CLAUSE (B) OR (C),

TO A MUNICIPALITY OF ANY CLASS HOSTING A CATEGORY 3

FACILITY, 2% OF THE GROSS TERMINAL REVENUE FROM THE

CATEGORY 3 LICENSED FACILITY LOCATED IN THE

MUNICIPALITY, SUBJECT, HOWEVER, TO THE BUDGETARY

LIMITATION IN THIS CLAUSE. THE AMOUNT ALLOCATED TO

THE DESIGNATED MUNICIPALITIES SHALL NOT EXCEED 50% OF

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

20170HB0271PN1942 - 474 -

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.

LICENSED FACILITY IS A TOWNSHIP OF THE SECOND CLASS

IN A COUNTY OF THE FIFTH CLASS WHICH IS CONTIGUOUS TO

A COUNTY OF THE SEVENTH CLASS, 2% OF THE GROSS

TERMINAL REVENUE FROM THE CATEGORY 3 LICENSED

FACILITY LOCATED IN THE MUNICIPALITY SHALL BE

DISTRIBUTED TO THE MUNICIPALITY, SUBJECT, HOWEVER, TO

THE BUDGETARY LIMITATION IN THIS CLAUSE. THE AMOUNT

20170HB0271PN1942 - 475 -

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), 2% OF THE GROSS

TERMINAL REVENUE TO THE MUNICIPALITY HOSTING THE LICENSED

FACILITY FROM EACH SUCH LICENSED FACILITY.

(X) IF THE LICENSED FACILITY IS LOCATED IN MORE THAN

20170HB0271PN1942 - 476 -

ONE MUNICIPALITY, THE AMOUNT AVAILABLE SHALL BE

DISTRIBUTED ON A PRO RATA BASIS DETERMINED BY THE

PERCENTAGE OF ACREAGE LOCATED IN EACH MUNICIPALITY TO THE

TOTAL ACREAGE OF ALL MUNICIPALITIES OCCUPIED BY THE

LICENSED FACILITY.

(XI) IF THE LICENSED FACILITY IS LOCATED AT A RESORT

WHICH IS ALSO AN INCORPORATED MUNICIPALITY, SUCH

MUNICIPALITY SHALL NOT BE ELIGIBLE TO RECEIVE ANY

DISTRIBUTION UNDER THIS PARAGRAPH. THE DISTRIBUTION IT

WOULD HAVE OTHERWISE BEEN ENTITLED TO UNDER THIS

PARAGRAPH SHALL INSTEAD BE DISTRIBUTED IN ACCORDANCE WITH

PARAGRAPH (2) BASED UPON THE COUNTY WHERE THE LICENSED

FACILITY IS LOCATED.

(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

20170HB0271PN1942 - 477 -

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

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.]

(4) FROM THE LOCAL SHARE ASSESSMENT ESTABLISHED IN

SUBSECTION (B), MAKE QUARTERLY DISTRIBUTIONS AMONG THE

MUNICIPALITIES, INCLUDING HOME RULE MUNICIPALITIES, HOSTING A

LICENSED FACILITY IN ACCORDANCE WITH THE FOLLOWING SCHEDULE:

(I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OR

(III), 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

20170HB0271PN1942 - 478 -

SUBPARAGRAPH. 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.

(II) 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

SUBPARAGRAPH. 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

20170HB0271PN1942 - 479 -

CLASSIFICATION OF COUNTY WHERE THE LICENSED FACILITY IS

LOCATED.

(III) 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 THE BUDGETARY LIMITATION IN THIS

SUBPARAGRAPH. 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. 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

20170HB0271PN1942 - 480 -

ACCORDANCE WITH PARAGRAPH (2) BASED UPON THE

CLASSIFICATION OF COUNTY WHERE THE LICENSED FACILITY IS

LOCATED.

(5) FROM THE SLOT MACHINE OPERATION FEES DEPOSITED IN

THE FUND UNDER SECTION 1326.1(D), MAKE QUARTERLY

DISTRIBUTIONS TO ANY MUNICIPALITY NOT SPECIFICALLY ENUMERATED

IN PARAGRAPH (3) OR (4) HOSTING A CATEGORY 1 OR A CATEGORY 2

LICENSED FACILITY, OTHER THAN A CATEGORY 1 OR CATEGORY 2

LICENSED FACILITY LOCATED IN A CITY OF THE FIRST CLASS, EQUAL

TO $10,000,000 ANNUALLY.

(6) FROM THE LOCAL SHARE ASSESSMENT ESTABLISHED IN

SUBSECTION (B), MAKE QUARTERLY DISTRIBUTIONS TO ANY

MUNICIPALITY NOT ENUMERATED IN PARAGRAPH (3) OR (4) HOSTING A

CATEGORY 3 LICENSED FACILITY: 2% OF THE GROSS TERMINAL

REVENUE PAID BY EACH LICENSED GAMING ENTITY OPERATING A

CATEGORY 3 LICENSED FACILITY.

(7) IF A 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.

(8) IF A LICENSED FACILITY IS LOCATED AT A RESORT WHICH

IS ALSO AN INCORPORATED MUNICIPALITY, THE MUNICIPALITY SHALL

NOT BE ELIGIBLE TO RECEIVE ANY DISTRIBUTION UNDER PARAGRAPH

(3), (4), (5) OR (6). THE DISTRIBUTION IT WOULD HAVE

OTHERWISE BEEN ENTITLED TO UNDER PARAGRAPH (3), (4), (5) OR

(6) SHALL INSTEAD BE DISTRIBUTED IN ACCORDANCE WITH PARAGRAPH

(2) BASED UPON THE CLASSIFICATION OF COUNTY WHERE THE

LICENSED FACILITY IS LOCATED.

(9) THE DISTRIBUTIONS PROVIDED IN PARAGRAPH (3), (4),

20170HB0271PN1942 - 481 -

(5) OR (6) SHALL BE BASED UPON MUNICIPAL CLASSIFICATIONS IN

EFFECT ON JULY 5, 2004. FOR THE PURPOSES OF PARAGRAPHS (3),

(4), (5) AND (6), ANY RECLASSIFICATION OF MUNICIPALITIES AS A

RESULT OF A FEDERAL DECENNIAL CENSUS OR OF A STATE STATUTE

SHALL NOT APPLY TO PARAGRAPHS (3), (4), (5) AND (6).

(10) IF ANY PROVISION OF PARAGRAPH (3), (4), (5) OR (6)

IS FOUND TO BE UNENFORCEABLE FOR ANY REASON, THE DISTRIBUTION

PROVIDED FOR IN THE UNENFORCEABLE PROVISION SHALL BE MADE TO

THE MUNICIPALITY IN WHICH THE LICENSED FACILITY IS LOCATED.

(11) NOTHING IN PARAGRAPH (3), (4), (5) OR (6) SHALL BE

CONSTRUED TO PREVENT ANY OF THE ABOVE MUNICIPALITIES FROM

ENTERING INTO INTERGOVERNMENTAL COOPERATIVE AGREEMENTS WITH

OTHER JURISDICTIONS FOR SHARING THE FUNDS DISTRIBUTED TO

THEM.

(12) 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 UNDER 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 THE

INTERGOVERNMENTAL COOPERATION AUTHORITY TO BE USED:

(I) TO REDUCE THE DEBT OF THE CITY OF THE SECOND

CLASS;

(II) TO INCREASE THE LEVEL OF FUNDING OF THE

MUNICIPAL PENSION FUNDS OF THE CITY OF THE SECOND CLASS;

(III) FOR ANY OTHER PURPOSES AS DETERMINED TO BE IN

20170HB0271PN1942 - 482 -

THE BEST INTEREST OF THE CITY OF THE SECOND CLASS BY THE

INTERGOVERNMENTAL COOPERATION AUTHORITY. THE REVENUES

SHALL NOT BE DIRECTED TO OR UNDER THE CONTROL OF THE CITY

OF THE SECOND CLASS OR ANY COORDINATOR APPOINTED UNDER

THE ACT OF JULY 10, 1987 (P.L.246, NO.47), KNOWN AS THE

MUNICIPALITIES FINANCIAL RECOVERY ACT, FOR THE CITY OF

THE SECOND CLASS.

(D) CONSUMER PRICE INDEX.--FOR PURPOSES OF SUBSECTION (C),

REFERENCES TO THE CONSUMER PRICE INDEX SHALL MEAN THE CONSUMER

PRICE INDEX FOR ALL URBAN CONSUMERS FOR THE PENNSYLVANIA, NEW

JERSEY, DELAWARE AND MARYLAND AREA FOR THE MOST RECENT 12-MONTH

PERIOD FOR WHICH FIGURES HAVE BEEN OFFICIALLY REPORTED BY THE

UNITED STATES DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS.

(E) REPORTING.--

(1) IN COOPERATION WITH THE DEPARTMENT AND THE

COMMONWEALTH FINANCING AUTHORITY, THE DEPARTMENT OF COMMUNITY

AND ECONOMIC DEVELOPMENT SHALL SUBMIT AN ANNUAL REPORT ON ALL

DISTRIBUTIONS OF LOCAL SHARE ASSESSMENTS AND SLOT MACHINE

LICENSE OPERATION FEES TO COUNTIES AND MUNICIPALITIES UNDER

THIS SECTION TO THE CHAIRMAN AND MINORITY CHAIRMAN OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE, THE CHAIRMAN AND

MINORITY CHAIRMAN OF THE COMMUNITY, ECONOMIC AND RECREATIONAL

DEVELOPMENT COMMITTEE OF THE SENATE, THE CHAIRMAN AND

MINORITY CHAIRMAN OF THE APPROPRIATIONS COMMITTEE OF THE

HOUSE OF REPRESENTATIVES AND THE CHAIRMAN AND MINORITY

CHAIRMAN OF THE GAMING OVERSIGHT COMMITTEE OF THE HOUSE OF

REPRESENTATIVES. THE REPORT SHALL BE SUBMITTED BY [AUGUST 31,

2010] MARCH 31, 2018, AND BY [AUGUST] MARCH 31 OF EACH YEAR

THEREAFTER.

(2) ALL COUNTIES AND MUNICIPALITIES RECEIVING

20170HB0271PN1942 - 483 -

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

20170HB0271PN1942 - 484 -

PENALTIES).

SECTION 28. SECTIONS 1407(D) INTRODUCTORY PARAGRAPH AND

(D.1) HEADING AND (1), 1501(B), 1504 AND 1509 OF TITLE 4 ARE

AMENDED TO READ:

§ 1407. PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT AND TOURISM

FUND.

* * *

(D) RESTRICTIONS ON PROJECTS FOR CERTAIN COUNTIES AND

CITIES.--EXCEPT AS SET FORTH IN SUBSECTION (D.1), [FOR A TEN-

YEAR PERIOD BEGINNING WITH THE FIRST FISCAL YEAR DURING WHICH

DEPOSITS ARE MADE INTO THIS FUND,] NO MONEYS FROM THE

PENNSYLVANIA GAMING ECONOMIC DEVELOPMENT AND TOURISM FUND SHALL

BE DISTRIBUTED FOR ANY PROJECT LOCATED IN A CITY OR COUNTY OF

THE FIRST OR SECOND CLASS EXCEPT AS AUTHORIZED BY THIS

SUBSECTION. MONEYS NOT USED FOR THE AUTHORIZED PROJECTS IN

CITIES AND COUNTIES OF THE FIRST AND SECOND CLASSES MAY BE USED

THROUGHOUT THIS COMMONWEALTH. MONEYS FROM THE FUND FOR PROJECTS

WITHIN CITIES AND COUNTIES OF THE FIRST AND SECOND CLASSES MAY

ONLY BE USED FOR THE FOLLOWING PROJECTS [DURING THIS TEN-YEAR

PERIOD]:

* * *

(D.1) COMMUNITY INFRASTRUCTURE AND ECONOMIC DEVELOPMENT.--

(1) NOTWITHSTANDING SUBSECTION (B) OR ANY OTHER

PROVISION OF LAW TO THE CONTRARY, THE MONEY AUTHORIZED BUT

NOT EXPENDED UNDER FORMER SUBSECTION (D)(7) AS OF THE

EFFECTIVE DATE OF THIS SUBSECTION AND MONEY AUTHORIZED BUT

NOT EXPENDED UNDER SUBSECTION (D)(5) SHALL BE DEPOSITED INTO

A RESTRICTED RECEIPTS ACCOUNT TO BE ESTABLISHED IN THE

COMMONWEALTH FINANCING AUTHORITY EXCLUSIVELY FOR ELIGIBLE

APPLICATIONS SUBMITTED BY THE REDEVELOPMENT AUTHORITY OF A

20170HB0271PN1942 - 485 -

COUNTY OF THE SECOND CLASS CREATED PURSUANT TO THE ACT OF MAY

24, 1945 (P.L.991, NO.385), KNOWN AS THE URBAN REDEVELOPMENT

LAW, FOR ECONOMIC DEVELOPMENT, INFRASTRUCTURE DEVELOPMENT,

JOB TRAINING, COMMUNITY IMPROVEMENT, PUBLIC SAFETY OR OTHER

PROJECTS IN THE PUBLIC INTEREST LOCATED IN A COUNTY OF THE

SECOND CLASS. COMMUNITY DEVELOPMENT CORPORATIONS, POLITICAL

SUBDIVISIONS, URBAN REDEVELOPMENT AUTHORITIES, MUNICIPAL

AUTHORITIES, FOR-PROFIT ENTITIES AND NONPROFIT ENTITIES

LOCATED IN A COUNTY OF THE SECOND CLASS SHALL BE ELIGIBLE TO

RECEIVE FUNDS MADE AVAILABLE UNDER THIS PARAGRAPH.

* * *

§ 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.

(A) GENERAL RULE.--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

20170HB0271PN1942 - 486 -

OR EXTEND CREDIT IN ANY MANNER TO A PLAYER SO AS TO ENABLE THE

PLAYER TO PLAY SLOT MACHINES. SLOT MACHINE LICENSEES WHO HOLD A

TABLE GAME OPERATION CERTIFICATE MAY EXTEND CREDIT FOR SLOT

MACHINE GAMING IN ACCORDANCE WITH SECTION 13A26 (RELATING TO

CASH EQUIVALENTS).

(B) PREPAID ACCESS INSTRUMENTS.--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.

§ 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 OR SUCCESSOR AGENCY .--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

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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 OR SUCCESSOR AGENCY 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 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.

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(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

20170HB0271PN1942 - 489 -

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.

(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:

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

20170HB0271PN1942 - 490 -

ESTABLISHED BY THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS OR

SUCCESSOR AGENCY UNDER SUBSECTION (A.1)(1).

(2.1) EACH INTERACTIVE GAMING CERTIFICATE HOLDER AND

INTERACTIVE GAMING OPERATOR:

(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 DISPLAYED TO ANY

PERSON VISITING OR LOGGING ONTO THE INTERACTIVE GAMING

CERTIFICATE HOLDER'S INTERACTIVE GAMING SKIN OR INTERNET

WEBSITE.

(II) SHALL PROVIDE A MECHANISM BY WHICH AN

INTERACTIVE GAMING ACCOUNT HOLDER MAY ESTABLISH THE

FOLLOWING CONTROLS ON WAGERING ACTIVITY THROUGH THE

INTERACTIVE GAMING ACCOUNT:

(A) A LIMIT ON THE AMOUNT OF MONEY LOST WITHIN A

SPECIFIED PERIOD OF TIME AND THE LENGTH OF TIME THE

ACCOUNT HOLDER WILL BE UNABLE TO PARTICIPATE IN

GAMING IF THE HOLDER REACHES THE ESTABLISHED LOSS

LIMIT.

(B) A LIMIT ON THE MAXIMUM AMOUNT OF ANY SINGLE

WAGER ON ANY INTERACTIVE GAME.

THROUGH THE ACCOUNT FOR ANY NUMBER OF HOURS OR DAYS.

(III) SHALL NOT KNOWINGLY MAIL OR OTHERWISE FORWARD

ANY GAMING-RELATED PROMOTIONAL MATERIAL OR E-MAIL TO A

REGISTERED PLAYER DURING ANY PERIOD IN WHICH INTERACTIVE

GAMING THROUGH THE REGISTERED PLAYERS' INTERACTIVE GAMING

20170HB0271PN1942 - 491 -

ACCOUNT HAS BEEN SUSPENDED OR TERMINATED. THE INTERACTIVE

GAMING CERTIFICATE HOLDER SHALL PROVIDE A MECHANISM BY

WHICH A REGISTERED PLAYER MAY CHANGE THE CONTROLS.

NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBPARAGRAPH,

WHILE INTERACTIVE GAMING THROUGH THE INTERACTIVE GAMING

ACCOUNT IS SUSPENDED, THE REGISTERED PLAYER MAY NOT

CHANGE GAMING CONTROLS UNTIL THE SUSPENSION EXPIRES, BUT

THE REGISTERED PLAYER SHALL CONTINUE TO HAVE ACCESS TO

THE ACCOUNT AND SHALL BE PERMITTED TO WITHDRAW FUNDS FROM

THE ACCOUNT UPON PROPER APPLICATION FOR THE FUNDS TO THE

INTERACTIVE GAMING CERTIFICATE HOLDER.

(3) A [LICENSED FACILITY] LICENSED GAMING ENTITY,

INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE GAMING

OPERATOR, AS THE CASE MAY BE, 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 OPERATOR, 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

20170HB0271PN1942 - 492 -

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]

ANNUALLY ON OCTOBER 1 [THEREAFTER], THE DEPARTMENT OF [HEALTH]

DRUG AND ALCOHOL PROGRAMS OR SUCCESSOR AGENCY , IN CONSULTATION

20170HB0271PN1942 - 493 -

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 29. 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 OF OR APPLICANT FOR AN INTERACTIVE GAMING

20170HB0271PN1942 - 494 -

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 OF OR APPLICANT FOR AN INTERACTIVE GAMING LICENSE OR

OTHER AUTHORIZATION TO CONDUCT INTERACTIVE GAMING OR ANY

HOLDING, SUBSIDIARY OR INTERMEDIARY COMPANY WITH RESPECT

THERETO, IF IN THE JUDGMENT OF THE STATE ETHICS COMMISSION OR

THE SUPREME COURT, AS APPROPRIATE, EMPLOYMENT WILL NOT

INTERFERE WITH THE RESPONSIBILITIES OF THE EXECUTIVE-LEVEL

PUBLIC EMPLOYEE, PUBLIC OFFICIAL OR PARTY OFFICER AND WILL

NOT CREATE A CONFLICT OF INTEREST OR REASONABLE RISK OF THE

PUBLIC PERCEPTION OF A CONFLICT OF INTEREST ON THE PART OF

THE EXECUTIVE-LEVEL PUBLIC EMPLOYEE, PUBLIC OFFICIAL OR PARTY

OFFICER.

* * *

SECTION 30. SECTIONS 1513(A), 1514 HEADING, (A), (D), (E)

AND (F), 1515, 1516 AND 1517(B)(1), (C)(6) AND (12) AND (E)(1)

20170HB0271PN1942 - 495 -

OF TITLE 4 ARE AMENDED TO READ:

§ 1513. POLITICAL INFLUENCE.

(A) CONTRIBUTION RESTRICTION.--THE FOLLOWING PERSONS SHALL

BE PROHIBITED FROM CONTRIBUTING ANY MONEY OR IN-KIND

CONTRIBUTION TO A CANDIDATE FOR NOMINATION OR ELECTION TO ANY

PUBLIC OFFICE IN THIS COMMONWEALTH, OR TO ANY POLITICAL PARTY

COMMITTEE OR OTHER POLITICAL COMMITTEE IN THIS COMMONWEALTH OR

TO ANY GROUP, COMMITTEE OR ASSOCIATION ORGANIZED IN SUPPORT OF A

CANDIDATE, POLITICAL PARTY COMMITTEE OR OTHER POLITICAL

COMMITTEE IN THIS COMMONWEALTH:

(1) AN APPLICANT FOR A SLOT MACHINE LICENSE,

MANUFACTURER LICENSE, SUPPLIER LICENSE, PRINCIPAL LICENSE,

KEY EMPLOYEE LICENSE, INTERACTIVE GAMING LICENSE OR HORSE OR

HARNESS RACING LICENSE.

(2) A SLOT MACHINE LICENSEE, LICENSED MANUFACTURER,

LICENSED SUPPLIER, INTERACTIVE GAMING OPERATOR OR LICENSED

RACING ENTITY.

(3) A LICENSED PRINCIPAL OR LICENSED KEY EMPLOYEE OF A

SLOT MACHINE LICENSEE, LICENSED MANUFACTURER, LICENSED

SUPPLIER, INTERACTIVE GAMING OPERATOR OR LICENSED RACING

ENTITY.

(4) AN AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING

COMPANY OF A SLOT MACHINE LICENSEE, LICENSED MANUFACTURER,

LICENSED SUPPLIER, INTERACTIVE GAMING OPERATOR OR LICENSED

RACING ENTITY.

(5) A LICENSED PRINCIPAL OR LICENSED KEY EMPLOYEE OF AN

AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF A

SLOT MACHINE LICENSEE, LICENSED MANUFACTURER, LICENSED

SUPPLIER, INTERACTIVE GAMING OPERATOR OR LICENSED RACING

ENTITY.

20170HB0271PN1942 - 496 -

(6) A PERSON WHO HOLDS A SIMILAR GAMING LICENSE IN

ANOTHER JURISDICTION AND THE AFFILIATES, INTERMEDIARIES,

SUBSIDIARIES, HOLDING COMPANIES, PRINCIPALS OR KEY EMPLOYEES

THEREOF.

* * *

§ 1514. REGULATION REQUIRING EXCLUSION [OR], EJECTION OR DENIAL

OF ACCESS OF CERTAIN PERSONS.

(A) GENERAL RULE.--THE BOARD SHALL BY REGULATION PROVIDE FOR

THE ESTABLISHMENT OF A LIST OF PERSONS WHO ARE TO BE EXCLUDED OR

EJECTED FROM ANY LICENSED FACILITY OR WHO MAY BE DENIED ACCESS

TO INTERACTIVE GAMING. THE PROVISIONS SHALL DEFINE THE STANDARDS

FOR EXCLUSION AND SHALL INCLUDE STANDARDS RELATING TO PERSONS

WHO ARE CAREER OR PROFESSIONAL OFFENDERS AS DEFINED BY

REGULATIONS OF THE BOARD OR WHOSE PRESENCE IN A LICENSED

FACILITY OR WHOSE ACCESS TO INTERACTIVE GAMING WOULD, IN THE

OPINION OF THE BOARD, BE INIMICAL TO THE INTEREST OF THE

COMMONWEALTH OR OF LICENSED GAMING THEREIN, OR BOTH.

* * *

(D) SANCTIONS.--THE BOARD MAY IMPOSE SANCTIONS UPON A

LICENSED GAMING ENTITY OR INTERACTIVE GAMING OPERATOR IN

ACCORDANCE WITH THIS PART IF THE LICENSED GAMING ENTITY

KNOWINGLY FAILS TO EXCLUDE OR EJECT FROM THE PREMISES OF ANY

LICENSED FACILITY OR DENY ACCESS TO INTERACTIVE GAMING ANY

PERSON PLACED BY THE BOARD ON THE LIST OF PERSONS TO BE EXCLUDED

[OR], EJECTED OR DENIED ACCESS.

(E) LIST NOT ALL-INCLUSIVE.--ANY LIST COMPILED BY THE BOARD

OF PERSONS TO BE EXCLUDED [OR], EJECTED OR DENIED ACCESS SHALL

NOT BE DEEMED AN ALL-INCLUSIVE LIST, AND A LICENSED GAMING

ENTITY SHALL HAVE A DUTY TO KEEP FROM THE LICENSED FACILITY AND

FROM INTERACTIVE GAMING PERSONS KNOWN TO IT TO BE WITHIN THE

20170HB0271PN1942 - 497 -

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

ELECTRONIC MAIL, IF THE ELECTRONIC MAIL ADDRESS OF THE PERSON IS

KNOWN TO THE BUREAU.

* * *

§ 1515. REPEAT OFFENDERS EXCLUDABLE FROM LICENSED GAMING

FACILITY.

A LICENSED GAMING ENTITY MAY EXCLUDE OR EJECT FROM ITS

LICENSED FACILITY OR DENY ACCESS TO 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

20170HB0271PN1942 - 498 -

GAMING OPERATIONS ARE MANAGED, ADMINISTERED OR CONTROLLED.

§ 1516. LIST OF PERSONS SELF EXCLUDED FROM GAMING ACTIVITIES.

(A) GENERAL RULE.--THE BOARD SHALL PROVIDE BY REGULATION FOR

THE ESTABLISHMENT OF A LIST OF PERSONS SELF EXCLUDED FROM GAMING

ACTIVITIES, INCLUDING INTERACTIVE GAMING, AT ALL LICENSED

FACILITIES. ANY PERSON MAY REQUEST PLACEMENT ON THE LIST OF

SELF-EXCLUDED PERSONS BY ACKNOWLEDGING IN A MANNER TO BE

ESTABLISHED BY THE BOARD THAT THE PERSON IS A PROBLEM GAMBLER

AND BY AGREEING THAT, DURING ANY PERIOD OF VOLUNTARY EXCLUSION,

THE PERSON MAY NOT COLLECT ANY WINNINGS OR RECOVER ANY LOSSES

RESULTING FROM ANY GAMING ACTIVITY AT LICENSED FACILITIES,

INCLUDING INTERACTIVE GAMING.

(B) REGULATIONS.--THE REGULATIONS OF THE BOARD SHALL

ESTABLISH PROCEDURES FOR PLACEMENTS ON AND REMOVALS FROM THE

LIST OF SELF-EXCLUDED PERSONS. THE REGULATIONS SHALL ESTABLISH

PROCEDURES FOR THE TRANSMITTAL TO LICENSED GAMING ENTITIES OF

IDENTIFYING INFORMATION CONCERNING SELF-EXCLUDED PERSONS AND

SHALL REQUIRE LICENSED GAMING ENTITIES TO ESTABLISH PROCEDURES

DESIGNED AT A MINIMUM TO DENY SELF-EXCLUDED PERSONS ACCESS TO

INTERACTIVE GAMING AND TO REMOVE SELF-EXCLUDED PERSONS FROM

TARGETED MAILINGS OR OTHER FORMS OF ADVERTISING OR PROMOTIONS

AND DENY SELF-EXCLUDED PERSONS ACCESS TO COMPLIMENTARIES, CHECK

CASHING PRIVILEGES, CLUB PROGRAMS AND OTHER SIMILAR BENEFITS.

SHALL NOT BE LIABLE TO ANY SELF-EXCLUDED PERSON OR TO ANY OTHER

PARTY IN ANY JUDICIAL PROCEEDING FOR ANY HARM, MONETARY OR

OTHERWISE, WHICH MAY ARISE AS A RESULT OF:

(1) THE FAILURE OF A LICENSED GAMING ENTITY TO WITHHOLD

GAMING PRIVILEGES FROM OR RESTORE GAMING PRIVILEGES TO A

SELF-EXCLUDED PERSON; [OR]

20170HB0271PN1942 - 499 -

(1.1) THE FAILURE OF AN INTERACTIVE GAMING CERTIFICATE

HOLDER OR INTERACTIVE GAMING OPERATOR 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.

§ 1517. INVESTIGATIONS AND ENFORCEMENT.

* * *

(B) POWERS AND DUTIES OF DEPARTMENT.--

(1) THE DEPARTMENT SHALL AT ALL TIMES HAVE THE POWER OF

ACCESS TO EXAMINE AND AUDIT EQUIPMENT AND RECORDS RELATING TO

ALL ASPECTS OF THE OPERATION OF SLOT MACHINES [OR], TABLE

GAMES OR INTERACTIVE GAMES UNDER THIS PART.

* * *

PENNSYLVANIA STATE POLICE SHALL HAVE THE FOLLOWING POWERS AND

DUTIES:

* * *

(6) ENFORCE THE CRIMINAL PROVISIONS OF THIS PART AND ALL

20170HB0271PN1942 - 500 -

OTHER CRIMINAL LAWS OF THE COMMONWEALTH[.], INCLUDING, BUT

NOT LIMITED TO, WITHIN A LICENSED FACILITY AND PARKING LOTS

UNDER CONTROL OF A SLOT MACHINE LICENSEE ADJACENT TO A

LICENSED FACILITY.

* * *

(12) CONDUCT AUDITS OR VERIFICATION OF INFORMATION OF

SLOT MACHINE [OR], TABLE GAME OPERATIONS, INCLUDING THE

OPERATION OF SLOT MACHINES USED IN A MULTISTATE WIDE-AREA

PROGRESSIVE SLOT MACHINE SYSTEM AND IN THE OPERATION OF SKILL

OR HYBRID SLOT MACHINES AND INTERACTIVE GAMING OPERATIONS AT

SUCH TIMES, UNDER SUCH CIRCUMSTANCES AND TO SUCH EXTENT AS

THE BUREAU DETERMINES. THIS PARAGRAPH INCLUDES REVIEWS OF

ACCOUNTING, ADMINISTRATIVE AND FINANCIAL RECORDS AND

MANAGEMENT CONTROL SYSTEMS, PROCEDURES AND RECORDS UTILIZED

BY A SLOT MACHINE LICENSEE.

* * *

(E) INSPECTION, SEIZURE AND WARRANTS.--

(1) THE BUREAU, THE DEPARTMENT AND THE PENNSYLVANIA

STATE POLICE SHALL HAVE THE AUTHORITY WITHOUT NOTICE AND

WITHOUT WARRANT TO DO ALL OF THE FOLLOWING IN THE PERFORMANCE

OF THEIR DUTIES:

(I) INSPECT AND EXAMINE ALL PREMISES WHERE SLOT

MACHINE [OR], TABLE GAME AND INTERACTIVE GAMING

OPERATIONS ARE CONDUCTED, SLOT MACHINES, TABLE GAME

DEVICES AND ASSOCIATED EQUIPMENT, INTERACTIVE GAMING

DEVICES AND ASSOCIATED EQUIPMENT ARE MANUFACTURED, SOLD,

DISTRIBUTED OR SERVICED OR WHERE RECORDS OF THESE

ACTIVITIES ARE PREPARED OR MAINTAINED.

(II) INSPECT ALL EQUIPMENT AND SUPPLIES IN, ABOUT,

UPON OR AROUND PREMISES REFERRED TO IN SUBPARAGRAPH (I).

20170HB0271PN1942 - 501 -

(III) SEIZE, SUMMARILY REMOVE AND IMPOUND EQUIPMENT

AND SUPPLIES FROM PREMISES REFERRED TO IN SUBPARAGRAPH

(I) FOR THE PURPOSES OF EXAMINATION AND INSPECTION.

(IV) INSPECT, EXAMINE AND AUDIT ALL BOOKS, RECORDS

AND DOCUMENTS PERTAINING TO A SLOT MACHINE LICENSEE'S

OPERATION.

(V) SEIZE, IMPOUND OR ASSUME PHYSICAL CONTROL OF ANY

BOOK, RECORD, LEDGER, GAME, DEVICE, CASH BOX AND ITS

CONTENTS, COUNT ROOM OR ITS EQUIPMENT, INTERACTIVE GAMING

DEVICES AND ASSOCIATED EQUIPMENT OR SLOT MACHINE [OR],

TABLE GAME OR INTERACTIVE GAMING OPERATIONS.

* * *

SECTION 31. SECTION 1518(A)(1), (2), (3), (4), (5), (7.1),

(11), (13), (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

20170HB0271PN1942 - 502 -

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 TO ACCEPT ANY WAGER

ASSOCIATED WITH ANY AUTHORIZED INTERACTIVE GAME FROM ANY

INDIVIDUAL WITHOUT VERIFYING THE AGE, IDENTITY AND PHYSICAL

LOCATION OF THE PLAYER AT THE TIME OF PLAY OR WAGER.

(4) IT SHALL BE UNLAWFUL FOR ANY LICENSED ENTITY OR

OTHER PERSON TO MANUFACTURE, SUPPLY OR PLACE SLOT MACHINES,

TABLE GAMES, TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT,

AUTHORIZED INTERACTIVE GAME OR INTERACTIVE GAMING DEVICES OR

ASSOCIATED EQUIPMENT INTO PLAY OR DISPLAY SLOT MACHINES,

TABLE GAMES, TABLE GAME DEVICES OR ASSOCIATED EQUIPMENT ON

THE PREMISES OF A LICENSED FACILITY WITHOUT THE AUTHORITY OF

THE BOARD.

(4.1) IT SHALL BE UNLAWFUL FOR ANY SLOT MACHINE LICENSEE

TO OFFER INTERACTIVE GAMES INTO PLAY OR DISPLAY SUCH GAMES ON

ITS INTERACTIVE GAMING SKIN OR INTERNET WEBSITE WITHOUT THE

APPROVAL OF THE BOARD.

(4.2) IT SHALL BE UNLAWFUL FOR ANY LICENSED ENTITY OR

OTHER PERSON TO MANUFACTURE, SUPPLY OR PLACE INTERACTIVE

20170HB0271PN1942 - 503 -

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

20170HB0271PN1942 - 504 -

LOSING WAGER.

(7.2) IT SHALL BE UNLAWFUL FOR A PERSON TO KNOWINGLY

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) IT SHALL BE UNLAWFUL FOR AN INDIVIDUAL UNDER 21

20170HB0271PN1942 - 505 -

YEARS OF AGE TO ENTER AND REMAIN IN ANY AREA OF A LICENSED

FACILITY WHERE SLOT MACHINES ARE OPERATED OR THE PLAY OF

TABLE GAMES IS CONDUCTED, EXCEPT THAT AN INDIVIDUAL 18 YEARS

OF AGE OR OLDER 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 ANY SUCH

AREA WHILE ENGAGED IN THE PERFORMANCE OF THE INDIVIDUAL'S

EMPLOYMENT DUTIES.

(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 OPERATOR OR EMPLOYEE

OF AN INTERACTIVE GAMING CERTIFICATE HOLDER OR INTERACTIVE

GAMING OPERATOR 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 OPERATOR OR EMPLOYEE

OF AN INTERACTIVE GAMING CERTIFICATE HOLDER, INTERACTIVE

GAMING OPERATOR 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 THE

PERSON WAS AT LEAST 21 YEARS OF AGE IN THE APPLICATION

FOR AN INTERACTIVE GAMING ACCOUNT; AND

20170HB0271PN1942 - 506 -

(II) THE ESTABLISHMENT OF THE INTERACTIVE GAMING

ACCOUNT WAS MADE IN GOOD FAITH RELIANCE UPON SUCH

REPRESENTATION AND IN THE REASONABLE BELIEF THAT THE

UNDERAGE PERSON WAS AT LEAST 21 YEARS OF AGE.

* * *

(15) IT SHALL BE UNLAWFUL FOR A LICENSED GAMING ENTITY

TO REQUIRE A WAGER TO BE GREATER THAN THE STATED MINIMUM

WAGER OR LESS THAN THE STATED MAXIMUM WAGER. HOWEVER, A WAGER

MADE BY A PLAYER AND NOT REJECTED BY A LICENSED GAMING ENTITY

PRIOR TO COMMENCEMENT OF PLAY SHALL BE TREATED AS A VALID

WAGER. A WAGER ACCEPTED BY A DEALER OR THROUGH AN AUTHORIZED

INTERACTIVE GAME SHALL BE PAID OR LOST IN ITS ENTIRETY IN

ACCORDANCE WITH THE RULES OF THE GAME, NOTWITHSTANDING THAT

THE WAGER EXCEEDED THE CURRENT TABLE MAXIMUM WAGER OR

AUTHORIZED INTERACTIVE GAME WAGER OR WAS LOWER THAN THE

CURRENT TABLE MINIMUM WAGER OR MINIMUM INTERACTIVE GAME

WAGER.

* * *

(17) IT SHALL BE UNLAWFUL FOR AN INDIVIDUAL TO CLAIM,

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

20170HB0271PN1942 - 507 -

VIOLATION OF 18 PA.C.S. § 4902, 4903 OR 4904 IN

CONNECTION WITH PROVIDING INFORMATION OR MAKING ANY

STATEMENT, WHETHER WRITTEN OR ORAL, TO THE BOARD, THE

BUREAU, THE DEPARTMENT, THE PENNSYLVANIA STATE POLICE,

THE OFFICE OF ATTORNEY GENERAL OR A DISTRICT ATTORNEY AS

REQUIRED BY THIS PART COMMITS AN OFFENSE TO BE GRADED IN

ACCORDANCE WITH THE APPLICABLE SECTION VIOLATED. A PERSON

THAT IS CONVICTED OF A SECOND OR SUBSEQUENT VIOLATION OF

18 PA.C.S. § 4902, 4903 OR 4904 IN CONNECTION WITH

PROVIDING INFORMATION OR MAKING ANY STATEMENT, WHETHER

WRITTEN OR ORAL, TO THE BOARD, THE BUREAU, THE

DEPARTMENT, THE PENNSYLVANIA STATE POLICE, THE OFFICE OF

ATTORNEY GENERAL OR A DISTRICT ATTORNEY AS REQUIRED BY

THIS PART COMMITS A FELONY OF THE SECOND DEGREE.

(II) A PERSON THAT VIOLATES SUBSECTION (A)(2), (3)

AND (4) THROUGH (12) OR (17) COMMITS A MISDEMEANOR OF THE

FIRST DEGREE. A PERSON THAT IS CONVICTED OF A SECOND OR

SUBSEQUENT VIOLATION OF SUBSECTION (A)(2), (3) AND (4)

THROUGH (12) OR (17) COMMITS A FELONY OF THE SECOND

DEGREE.

(2) (I) FOR A FIRST VIOLATION OF SUBSECTION (A)(1)

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 OPERATOR; OR

$300,000 IF THE PERSON IS A LICENSED MANUFACTURER OR

20170HB0271PN1942 - 508 -

SUPPLIER.

(II) FOR A SECOND OR SUBSEQUENT VIOLATION OF

SUBSECTION (A)(1), (2), (3) AND (4) THROUGH (12) OR (17),

A PERSON SHALL BE SENTENCED TO PAY A FINE OF:

(A) NOT LESS THAN $150,000 NOR MORE THAN

$300,000 IF THE PERSON IS AN INDIVIDUAL;

(B) NOT LESS THAN $600,000 NOR MORE THAN

$1,200,000 IF THE PERSON IS A LICENSED GAMING ENTITY;

$600,000 IF THE PERSON IS A LICENSED MANUFACTURER OR

SUPPLIER.

(2.1) A PERSON THAT COMMITS AN OFFENSE IN VIOLATION OF

SUBSECTION (A)(3.1) COMMITS A FELONY AND, UPON CONVICTION,

SHALL BE SENTENCED TO PAY A FINE OF NOT LESS THAN $500,000

NOR MORE THAN $1,000,000. A PERSON THAT IS CONVICTED OF A

SECOND OR SUBSEQUENT VIOLATION OF SUBSECTION (A)(3.1) COMMITS

A FELONY OF THE FIRST DEGREE AND SHALL BE SENTENCED TO PAY A

FINE OF NOT LESS THAN $1,000,000 NOR MORE THAN $2,500,000.

(3) AN INDIVIDUAL WHO COMMITS AN OFFENSE IN VIOLATION OF

SUBSECTION (A)(13) [OR], (13.1) OR (13.2) COMMITS A

NONGAMBLING SUMMARY OFFENSE AND UPON CONVICTION OF A FIRST

OFFENSE SHALL BE SENTENCED TO PAY A FINE OF NOT LESS THAN

$200 NOR MORE THAN $1,000. AN INDIVIDUAL THAT IS CONVICTED OF

A SECOND OR SUBSEQUENT OFFENSE UNDER SUBSECTION (A)(13) [OR],

(13.1) OR (13.2) SHALL BE SENTENCED TO PAY A FINE OF NOT LESS

THAN $500 NOR MORE THAN $1,500. IN ADDITION TO THE FINE

IMPOSED, AN INDIVIDUAL CONVICTED OF AN OFFENSE UNDER

SUBSECTION (A)(13) [OR], (13.1) OR (13.2) MAY BE SENTENCED TO

PERFORM A PERIOD OF COMMUNITY SERVICE NOT TO EXCEED 40 HOURS.

20170HB0271PN1942 - 509 -

* * *

SECTION 31.1. TITLE 4 IS AMENDED BY ADDING A SECTION TO

READ:

§ 1521.1. CASINO LIQUOR LICENSE.

(A) APPLICATION.--NOTWITHSTANDING SECTION 1521 (RELATING TO

LIQUOR LICENSES AT LICENSED FACILITIES) OR ANY PROVISION OF LAW

OR REGULATION TO THE CONTRARY, A SLOT MACHINE LICENSEE HOLDING A

RESTAURANT LIQUOR OR EATING PLACE RETAIL DISPENSER LICENSE UNDER

THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR

CODE, MAY APPLY TO THE PENNSYLVANIA LIQUOR CONTROL BOARD FOR A

CASINO LIQUOR LICENSE. THE PENNSYLVANIA LIQUOR CONTROL BOARD MAY

ISSUE A CASINO LIQUOR LICENSE TO A SLOT MACHINE LICENSEE FOR USE

AT ITS LICENSED FACILITY IN ACCORDANCE WITH THIS SECTION.

(B) FEES.--EACH APPLICATION FOR A CASINO LICENSE UNDER THIS

SECTION SHALL BE ACCOMPANIED BY A FEE OF $1,000,000.

(1) THE LICENSE MUST BE RENEWED ON AN ANNUAL BASIS.

(2) FOR THE FIRST FIVE YEARS AFTER THE INITIAL ISSUANCE

OF THE LICENSE, THE LICENSE SHALL NOT BE SUBJECT TO AN ANNUAL

RENEWAL FEE.

(3) THEREAFTER, THE LICENSEE SHALL BE SUBJECT TO AN

ANNUAL RENEWAL FEE OF $50,000.

(4) ALL FEES COLLECTED OR RECEIVED BY THE PENNSYLVANIA

LIQUOR CONTROL BOARD UNDER THIS SUBSECTION SHALL BE PAID INTO

THE STATE TREASURY THROUGH THE DEPARTMENT OF REVENUE FOR

DEPOSIT INTO THE GENERAL FUND.

(D) DISPOSITION OF RESTAURANT LIQUOR OR EATING PLACE RETAIL

DISPENSER LICENSE.--

(1) AN APPLICANT UNDER THIS SECTION THAT CURRENTLY HOLDS

A RESTAURANT LIQUOR OR EATING PLACE RETAIL DISPENSER LICENSE

20170HB0271PN1942 - 510 -

ISSUED UNDER THE AUTHORITY OF THE LIQUOR CODE MAY CONTINUE TO

UTILIZE THAT LICENSE UNTIL SUCH TIME AS THE CASINO LIQUOR

LICENSE IS ISSUED BY THE PENNSYLVANIA LIQUOR CONTROL BOARD.

UPON THE ISSUANCE OF A LICENSE UNDER THIS SECTION, THE

APPLICANT MUST SURRENDER THE RESTAURANT LIQUOR OR EATING

PLACE RETAIL DISPENSER LICENSE TO THE PENNSYLVANIA LIQUOR

CONTROL BOARD.

(2) AN APPLICANT UNDER THIS SECTION THAT CURRENTLY HOLDS

A RESTAURANT LIQUOR OR EATING PLACE RETAIL DISPENSER LICENSE

PURCHASED THROUGH PRIVATE SALE MAY CONTINUE TO UTILIZE THAT

LICENSE UNTIL SUCH TIME AS THE CASINO LIQUOR LICENSE IS

ISSUED BY THE PENNSYLVANIA LIQUOR CONTROL BOARD. UPON

ISSUANCE OF A LICENSE UNDER THIS SECTION, THE APPLICANT MAY

SELL THE PREVIOUSLY PURCHASED RESTAURANT LIQUOR OR EATING

PLACE RETAIL DISPENSER LICENSE.

(E) HOURS OF OPERATION.--NOTWITHSTANDING ANY OTHER PROVISION

OF LAW TO THE CONTRARY, A HOLDER OF A CASINO LIQUOR LICENSE MAY

SELL OR SERVE LIQUOR AND MALT OR BREWED BEVERAGES 24 HOURS A

DAY, SEVEN DAYS A WEEK.

(F) TRANSFERS.--

(1) LICENSES ISSUED UNDER THIS SECTION ARE

NONTRANSFERABLE.

(2) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO

PRECLUDE A TRANSFER OF OWNERSHIP OF A CASINO LIQUOR LICENSE

TO ANOTHER ELIGIBLE PERSON TO BE USED AT THE SAME LICENSED

FACILITY.

(G) EXPIRATION.--LICENSES UNDER THIS SECTION SHALL EXPIRE

UNDER THE FOLLOWING CIRCUMSTANCES:

(1) REVOCATION BY AN ADMINISTRATIVE LAW JUDGE UNDER

SECTION 471 OF THE LIQUOR CODE;

20170HB0271PN1942 - 511 -

(2) NONRENEWAL BY THE PENNSYLVANIA LIQUOR CONTROL BOARD

UNDER SECTION 470 OF THE LIQUOR CODE;

(3) NONRENEWAL OF THE LICENSE BY THE SLOT MACHINE

LICENSEE; OR

(4) UPON REQUEST BY THE SLOT MACHINE LICENSEE.

(H) NEW APPLICANT.--THE PENNSYLVANIA LIQUOR CONTROL BOARD

MAY ISSUE A LICENSE UNDER THIS SECTION AT ANY TIME TO A NEW

APPLICANT EVEN IF THE PREVIOUS LICENSE HAS:

(1) BEEN REVOKED BY AN ADMINISTRATIVE LAW JUDGE UNDER

SECTION 471 OF THE LIQUOR CODE;

(2) NOT BEEN RENEWED BY THE PENNSYLVANIA LIQUOR CONTROL

BOARD UNDER SECTION 470 OF THE LIQUOR CODE;

(3) NOT BEEN RENEWED BY THE SLOT MACHINE LICENSEE; OR

(4) EXPIRED UPON REQUEST BY THE SLOT MACHINE LICENSEE.

(I) RESTRICTIONS AND PRIVILEGES.--LICENSES ISSUED UNDER THIS

SECTION ARE SUBJECT TO THE FOLLOWING ADDITIONAL RESTRICTIONS AND

PRIVILEGES:

(1) SALES MAY BE MADE AT ANY TIME THE FACILITY IS OPEN

TO THE PUBLIC.

(2) LIQUOR OR MALT OR BREWED BEVERAGES MAY BE

TRANSPORTED AND CONSUMED OFF THE GAMING FLOOR SO LONG AS THE

LIQUOR OR MALT OR BREWED BEVERAGES REMAIN WITHIN THE PREMISES

OF THE LICENSED FACILITY.

(3) SALES OF MALT OR BREWED BEVERAGES FOR OFF-PREMISES

CONSUMPTION ARE PROHIBITED.

(4) IN ADDITION TO THE PROVISIONS OF SECTION 493(24)(II)

OF THE LIQUOR CODE, THE HOLDER OF A CASINO LICENSE MAY GIVE

LIQUOR AND MALT OR BREWED BEVERAGES FREE OF CHARGE TO ANY

PERSON ATTENDING AN INVITATION-ONLY EVENT HELD ANYWHERE ON

THE PREMISES OF THE LICENSED FACILITY.

20170HB0271PN1942 - 512 -

(5) LICENSES ISSUED UNDER THIS SECTION SHALL NOT BE

SUBJECT TO:

(I) THE PROXIMITY PROVISIONS OF SECTIONS 402 AND 404

OF THE LIQUOR CODE.

(II) THE RESTRICTIONS ON DISCOUNT PRICING PRACTICES

SPECIFIED IN SECTION 406(G) OF THE LIQUOR CODE.

(III) THE QUOTA RESTRICTIONS OF SECTION 461 OF THE

LIQUOR CODE.

(IV) THE PROVISIONS OF SECTION 493(10) OF THE LIQUOR

CODE, EXCEPT AS THEY RELATE TO LEWD, IMMORAL OR IMPROPER

ENTERTAINMENT.

(V) THE PROHIBITION AGAINST MINORS FREQUENTING AS

DESCRIBED IN SECTION 493(14) OF THE LIQUOR CODE.

(VI) THE COST AND TOTAL DISPLAY AREA LIMITATIONS OF

SECTION 493(20)(I) OF THE LIQUOR CODE.

(VII) THE RESTRICTIONS ON EVENTS, TOURNAMENTS OR

CONTESTS SPECIFIED IN 40 PA. CODE § 5.32 (RELATING TO

RESTRICTIONS/EXCEPTIONS).

(VIII) THE RESTRICTIONS ON THE AWARDING OF TROPHIES,

PRIZES OR PREMIUMS SET FORTH IN 40 PA. CODE § 5.32.

(6) THE AUTHORIZATION TO SELL OR SERVE LIQUOR AND MALT

OR BREWED BEVERAGES BY A HOLDER OF A CASINO LIQUOR LICENSE

UNDER SUBSECTION (E) SHALL NOT APPLY TO THE OPERATION OF SLOT

MACHINES AT A NONPRIMARY LOCATION OR AT A QUALIFIED AIRPORT.

(J) MULTIPLE LICENSES.--

(1) SUBJECT TO PARAGRAPH (2), MORE THAN ONE LICENSE

ISSUED BY THE PENNSYLVANIA LIQUOR CONTROL BOARD MAY BE IN

EFFECT AT A LICENSED FACILITY AT ANY ONE TIME.

(2) NO MORE THAN ONE LICENSE ISSUED UNDER THIS SECTION

SHALL BE IN EFFECT AT ANY SPECIFIC LOCATION WITHIN THE

20170HB0271PN1942 - 513 -

PREMISES OF A LICENSED FACILITY AT THE SAME TIME.

SECTION 32. SECTIONS 1901 AND 1901.1 OF TITLE 4 ARE AMENDED

TO READ:

§ 1901. APPROPRIATIONS.

(A) APPROPRIATION TO BOARD.--

(1) THE SUM OF $7,500,000 IS HEREBY APPROPRIATED TO THE

PENNSYLVANIA GAMING CONTROL BOARD FOR THE FISCAL PERIOD JULY

1, 2004, TO JUNE 30, 2006, TO IMPLEMENT AND ADMINISTER THE

PROVISIONS OF THIS PART. THE MONEY APPROPRIATED IN THIS

SUBSECTION SHALL BE CONSIDERED A LOAN FROM THE GENERAL FUND

[AND SHALL BE REPAID TO THE GENERAL FUND QUARTERLY COMMENCING

WITH THE DATE SLOT MACHINE LICENSEES BEGIN OPERATING SLOT

MACHINES UNDER THIS PART]. THIS APPROPRIATION SHALL BE A TWO-

YEAR APPROPRIATION AND SHALL NOT LAPSE UNTIL JUNE 30, 2006.

(2) THE SUM OF $2,100,000 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 PENNSYLVANIA

GAMING CONTROL BOARD FOR THE EXPANSION OF GAMING ASSOCIATED

WITH TABLE GAMES. THIS APPROPRIATION SHALL BE A SUPPLEMENTAL

APPROPRIATION FOR FISCAL YEAR 2009-2010 AND SHALL BE IN

ADDITION TO THE APPROPRIATION CONTAINED IN THE ACT OF AUGUST

19, 2009 (P.L.777, NO.9A), KNOWN AS THE GAMING CONTROL

APPROPRIATION ACT OF 2009.

(B) APPROPRIATION TO DEPARTMENT.--THE SUM OF $21,100,000 IS

HEREBY APPROPRIATED FROM THE GENERAL FUND TO THE DEPARTMENT OF

REVENUE FOR THE FISCAL PERIOD JULY 1, 2004, TO JUNE 30, 2006, TO

PREPARE FOR, IMPLEMENT AND ADMINISTER THE PROVISIONS OF THIS

PART. THE MONEY APPROPRIATED UNDER THIS SUBSECTION SHALL BE

CONSIDERED A LOAN FROM THE GENERAL FUND [AND SHALL BE REPAID TO

20170HB0271PN1942 - 514 -

THE GENERAL FUND QUARTERLY COMMENCING WITH THE DATE SLOT MACHINE

LICENSEES BEGIN OPERATING SLOT MACHINES UNDER THIS PART]. THIS

APPROPRIATION SHALL BE A TWO-YEAR APPROPRIATION AND SHALL NOT

LAPSE UNTIL JUNE 30, 2006.

$7,500,000 IS HEREBY APPROPRIATED FROM THE GENERAL FUND TO THE

PENNSYLVANIA STATE POLICE FOR THE FISCAL PERIOD JULY 1, 2004, TO

JUNE 30, 2006, TO PREPARE FOR, IMPLEMENT AND ADMINISTER THE

PROVISIONS OF THIS PART. THE MONEY APPROPRIATED UNDER THIS

SUBSECTION SHALL BE CONSIDERED A LOAN FROM THE GENERAL FUND [AND

SHALL BE REPAID TO THE GENERAL FUND QUARTERLY COMMENCING WHEN

ALL SLOT MACHINE LICENSEES BEGIN OPERATING SLOT MACHINES UNDER

THIS PART]. THIS APPROPRIATION SHALL BE A TWO-YEAR APPROPRIATION

AND SHALL NOT LAPSE UNTIL JUNE 30, 2006.

§ 1901.1. REPAYMENTS TO [STATE GAMING] GENERAL FUND.

[THE BOARD SHALL DEFER ASSESSING SLOT MACHINE LICENSEES FOR

PAYMENTS TO THE STATE GAMING FUND FOR ANY LOANS MADE TO THE

STATE GAMING FUND UNTIL SUCH TIME AS ALL SLOT MACHINE LICENSES

HAVE BEEN ISSUED AND ALL LICENSED GAMING ENTITIES HAVE COMMENCED

THE OPERATION OF SLOT MACHINES. THE BOARD SHALL ADOPT A

REPAYMENT SCHEDULE THAT ASSESSES TO EACH SLOT MACHINE LICENSEE

COSTS FOR THE REPAYMENT OF ANY SUCH LOANS IN AN AMOUNT THAT IS

PROPORTIONAL TO EACH SLOT MACHINE LICENSEE'S GROSS TERMINAL

REVENUE.]

(A) ESTABLISHMENT OF REPAYMENT SCHEDULE.--

(1) NO LATER THAN SEPTEMBER 30, 2017, THE PENNSYLVANIA

GAMING CONTROL BOARD, IN CONSULTATION WITH ALL LICENSED

GAMING ENTITIES, SHALL ESTABLISH A SCHEDULE GOVERNING THE

REPAYMENT BY LICENSED GAMING ENTITIES OF LOANS PROVIDED UNDER

SECTION 1901 (RELATING TO APPROPRIATIONS).

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(2) THE REPAYMENT OF LOANS PROVIDED UNDER SECTION 1901

BY LICENSED GAMING ENTITIES SHALL BEGIN NO LATER THAN JANUARY

1, 2018.

(3) THE REPAYMENT SCHEDULE SHALL, AT A MINIMUM:

(I) SPECIFY THE DATES UPON WHICH THE REPAYMENTS

SHALL BE DUE. PAYMENTS MAY BE REQUIRED ON A QUARTERLY,

SEMIANNUAL OR ANNUAL BASIS.

(II) ASSESS EACH SLOT MACHINE LICENSEE'S COSTS FOR

REPAYMENT OF LOANS UNDER SECTION 1901 IN AN AMOUNT THAT

IS PROPORTIONAL TO EACH SLOT MACHINE LICENSEE'S GROSS

TERMINAL REVENUE.

(III) RESULT IN THE TOTAL AMOUNTS LOANED UNDER

SECTION 1901 BEING REPAID BY JUNE 30, 2019.

(B) DEPOSIT.--PAYMENTS RECEIVED UNDER SUBSECTION (A) SHALL

BE DEPOSITED INTO THE GENERAL FUND.

SECTION 33. TITLE 4 IS AMENDED BY ADDING A PART TO READ:

PART III

VIDEO GAMING

CHAPTER

31. GENERAL PROVISIONS

33. ADMINISTRATION

35. APPLICATION AND LICENSURE

37. OPERATION

39. ENFORCEMENT

41. REVENUES

43. ETHICS

45. MISCELLANEOUS PROVISIONS

CHAPTER 31

GENERAL PROVISIONS

SEC.

20170HB0271PN1942 - 516 -

3101. SCOPE OF PART.

3102. DEFINITIONS.

§ 3101. SCOPE OF PART.

THIS PART RELATES TO VIDEO GAMING TERMINALS.

§ 3102. 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:

"AFFILIATE," "AFFILIATE OF" OR "PERSON AFFILIATED WITH." A

PERSON WHO DIRECTLY OR INDIRECTLY, THROUGH ONE OR MORE

INTERMEDIARIES, CONTROLS, IS CONTROLLED BY OR IS UNDER COMMON

CONTROL WITH A SPECIFIED PERSON.

"APPLICANT." A PERSON WHO, ON HIS OWN BEHALF OR ON BEHALF OF

ANOTHER, APPLIES FOR PERMISSION TO ENGAGE IN AN ACT OR ACTIVITY

THAT IS REGULATED UNDER THE PROVISIONS OF THIS PART.

"ASSOCIATED EQUIPMENT." EQUIPMENT OR A MECHANICAL,

ELECTROMECHANICAL OR ELECTRONIC CONTRIVANCE, COMPONENT OR

MACHINE USED IN CONNECTION WITH VIDEO GAMING TERMINALS OR

REDEMPTION TERMINALS, INCLUDING REPLACEMENT PARTS, HARDWARE AND

SOFTWARE.

"BACKGROUND INVESTIGATION." A SECURITY, CRIMINAL, CREDIT AND

SUITABILITY INVESTIGATION OF A PERSON AS PROVIDED FOR IN THIS

PART THAT INCLUDES THE STATUS OF TAXES OWED TO THE UNITED

STATES, THE COMMONWEALTH AND ITS POLITICAL SUBDIVISIONS. ALL

COSTS ASSOCIATED WITH A BACKGROUND INVESTIGATION, EXCEPT FOR A

BACKGROUND INVESTIGATION CONDUCTED ON AN ESTABLISHMENT LICENSE

APPLICANT, SHALL BE PAID BY THE APPLICANT AND SHALL BE IN

ADDITION TO THE APPLICATION FEE IN SECTION 4101 (RELATING TO

FEES).

"BOARD." THE PENNSYLVANIA GAMING CONTROL BOARD ESTABLISHED

20170HB0271PN1942 - 517 -

UNDER SECTION 1201 (RELATING TO PENNSYLVANIA GAMING CONTROL

BOARD ESTABLISHED).

"BOWLING CENTER ESTABLISHMENT." A PREMISES THAT IS OPEN TO

THE PUBLIC, HAS NO LESS THAN 16 LANES FOR THE GAME OF BOWLING

AND HAS BEEN IN EXISTENCE FOR AT LEAST FIVE YEARS PRIOR TO BEING

ELIGIBLE FOR RECEIVING AN ESTABLISHMENT LICENSED UNDER THIS

PART.

"BUREAU." THE BUREAU OF INVESTIGATIONS AND ENFORCEMENT OF

THE BOARD.

"CASH." UNITED STATES CURRENCY AND COIN.

"CASH EQUIVALENT." A TICKET, TOKEN, CHIP, CARD OR OTHER

SIMILAR INSTRUMENT OR REPRESENTATION OF VALUE THAT THE BOARD

DEEMS A CASH EQUIVALENT IN ACCORDANCE WITH THIS PART.

"CENTRAL CONTROL COMPUTER." A CENTRAL SITE COMPUTER

CONTROLLED BY THE DEPARTMENT AND ACCESSIBLE BY THE BOARD TO

WHICH ALL VIDEO GAMING TERMINALS COMMUNICATE FOR THE PURPOSE OF

AUDITING CAPACITY, REAL-TIME INFORMATION RETRIEVAL OF THE

DETAILS OF ANY FINANCIAL EVENT THAT OCCURS IN THE OPERATION OF A

VIDEO GAMING TERMINAL OR REDEMPTION TERMINAL, INCLUDING, BUT NOT

LIMITED TO, COIN IN, COIN OUT, TICKET IN, TICKET OUT, JACKPOTS,

VIDEO GAMING TERMINAL AND REDEMPTION TERMINAL DOOR OPENINGS AND

POWER FAILURE AND REMOTE VIDEO GAMING TERMINAL OR REDEMPTION

TERMINAL ACTIVATION AND DISABLING OF VIDEO GAMING TERMINALS OR

REDEMPTION TERMINALS.

"CHEAT."

(1) ANY OF THE FOLLOWING:

(I) TO DEFRAUD OR STEAL FROM A PLAYER, TERMINAL

OPERATOR LICENSEE, ESTABLISHMENT LICENSEE OR THE

COMMONWEALTH WHILE OPERATING OR PLAYING A VIDEO GAMING

TERMINAL, INCLUDING CAUSING, AIDING, ABETTING OR

20170HB0271PN1942 - 518 -

CONSPIRING WITH ANOTHER PERSON TO DO SO.

(II) TO ALTER OR CAUSING, AIDING, ABETTING OR

CONSPIRING WITH ANOTHER PERSON TO ALTER THE ELEMENTS OF

CHANCE, METHOD OF SELECTION OR CRITERIA THAT DETERMINE:

(A) THE RESULT OF A VIDEO GAMING TERMINAL GAME.

(B) THE AMOUNT OR FREQUENCY OF PAYMENT IN A

VIDEO GAMING TERMINAL GAME.

(D) THE VALUE OF A WAGERING CREDIT.

(III) THE TERM DOES NOT INCLUDE ALTERING A VIDEO

GAMING TERMINAL OR ASSOCIATED EQUIPMENT FOR MAINTENANCE

OR REPAIR WITH THE APPROVAL OF A TERMINAL OPERATOR

LICENSEE.

"CHEATING OR THIEVING DEVICE." A DEVICE:

(1) USED OR POSSESSED WITH THE INTENT TO BE USED TO

CHEAT DURING THE OPERATION OR PLAY OF A VIDEO GAMING

TERMINAL; OR

(2) USED TO ALTER A VIDEO GAMING TERMINAL WITHOUT THE

TERMINAL OPERATOR LICENSEE'S APPROVAL.

"CITY OF THE FIRST CLASS ENFORCEMENT FUND." THE FUND

ESTABLISHED IN SECTION 4107 (RELATING TO CITY OF THE FIRST CLASS

ENFORCEMENT FUND).

"COIN-OPERATED AMUSEMENT GAME." A MACHINE THAT REQUIRES THE

INSERTION OF A COIN, CURRENCY OR TOKEN TO PLAY OR ACTIVATE A

GAME THE OUTCOME OF WHICH IS PREDOMINANTLY AND PRIMARILY

DETERMINED BY THE SKILL OF THE PLAYER.

"COMPENSATION." ANYTHING OF VALUE, MONEY OR A FINANCIAL

BENEFIT CONFERRED ON OR RECEIVED BY A PERSON IN RETURN FOR

SERVICES RENDERED OR TO BE RENDERED WHETHER BY THE PERSON OR

ANOTHER.

20170HB0271PN1942 - 519 -

"COMPLIMENTARY SERVICE." A LODGING, SERVICE OR ITEM THAT IS

PROVIDED TO AN INDIVIDUAL AT NO COST OR AT A REDUCED COST THAT

IS NOT GENERALLY AVAILABLE TO THE PUBLIC UNDER SIMILAR

CIRCUMSTANCES. GROUP RATES, INCLUDING CONVENTION AND GOVERNMENT

RATES, SHALL BE DEEMED TO BE GENERALLY AVAILABLE TO THE PUBLIC.

"CONDUCT OF VIDEO GAMING." THE LICENSED PLACEMENT, OPERATION

AND PLAY OF VIDEO GAMING TERMINALS UNDER THIS PART, AS

AUTHORIZED AND APPROVED BY THE BOARD.

"CONTROLLING INTEREST." ANY OF THE FOLLOWING:

(1) FOR A PUBLICLY TRADED DOMESTIC OR FOREIGN

CORPORATION, THE TERM MEANS A PERSON HAS A CONTROLLING

INTEREST IN A LEGAL ENTITY, APPLICANT OR LICENSEE 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 PERSON HOLDS AN OWNERSHIP OR

BENEFICIAL HOLDING OF 5% OR MORE OF THE SECURITIES OF THE

PUBLICLY TRADED CORPORATION, PARTNERSHIP, LIMITED LIABILITY

COMPANY OR OTHER FORM OF PUBLICLY TRADED LEGAL ENTITY, UNLESS

THIS PRESUMPTION OF CONTROL OR ABILITY TO ELECT IS REBUTTED

BY CLEAR AND CONVINCING EVIDENCE.

(2) FOR A PRIVATELY HELD DOMESTIC OR FOREIGN

CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR OTHER

FORM OF PRIVATELY HELD LEGAL ENTITY, THE TERM MEANS THE

HOLDING OF ANY SECURITIES IN THE LEGAL ENTITY, UNLESS THIS

PRESUMPTION OF CONTROL IS REBUTTED BY CLEAR AND CONVINCING

EVIDENCE.

"CONVICTION." A FINDING OF GUILT OR A PLEA OF GUILTY OR NOLO

CONTENDERE, WHETHER OR NOT A JUDGMENT OF SENTENCE HAS BEEN

IMPOSED AS DETERMINED BY THE LAW OF THE JURISDICTION IN WHICH

20170HB0271PN1942 - 520 -

THE PROSECUTION WAS HELD. THE TERM DOES NOT INCLUDE A CONVICTION

THAT HAS BEEN EXPUNGED OR OVERTURNED OR FOR WHICH AN INDIVIDUAL

HAS BEEN PARDONED OR HAD AN ORDER OF ACCELERATED REHABILITATIVE

DISPOSITION ENTERED.

"CORPORATION." THE TERM INCLUDES A PUBLICLY TRADED

CORPORATION.

"DEPARTMENT." THE DEPARTMENT OF REVENUE OF THE COMMONWEALTH.

"ESTABLISHMENT." A LIQUOR ESTABLISHMENT OR TRUCK STOP

ESTABLISHMENT.

"ESTABLISHMENT LICENSE." A LICENSE ISSUED BY THE BOARD

AUTHORIZING AN ESTABLISHMENT TO PERMIT A TERMINAL OPERATOR

LICENSEE TO PLACE AND OPERATE VIDEO GAMING TERMINALS ON THE

ESTABLISHMENT'S PREMISES PURSUANT TO THIS PART AND THE RULES AND

REGULATIONS PROMULGATED UNDER THIS PART.

"ESTABLISHMENT LICENSEE." AN ESTABLISHMENT THAT HOLDS AN

ESTABLISHMENT LICENSE.

"EXECUTIVE-LEVEL PUBLIC EMPLOYEE." THE TERM SHALL INCLUDE

THE FOLLOWING:

(1) A DEPUTY SECRETARY OF THE COMMONWEALTH AND THE

GOVERNOR'S OFFICE EXECUTIVE STAFF.

(2) AN EMPLOYEE OF THE EXECUTIVE BRANCH WHOSE DUTIES

SUBSTANTIALLY INVOLVE LICENSING OR ENFORCEMENT UNDER THIS

PART, WHO HAS DISCRETIONARY POWER THAT MAY AFFECT OR

INFLUENCE THE OUTCOME OF A COMMONWEALTH AGENCY'S ACTION OR

DECISION OR WHO IS INVOLVED IN THE DEVELOPMENT OF REGULATIONS

OR POLICIES RELATING TO A LICENSED ENTITY. THE TERM INCLUDES

AN EMPLOYEE WITH LAW ENFORCEMENT AUTHORITY.

(3) AN EMPLOYEE OF A COUNTY OR MUNICIPALITY WITH

DISCRETIONARY POWERS THAT MAY AFFECT OR INFLUENCE THE OUTCOME

OF THE COUNTY'S OR MUNICIPALITY'S ACTION OR DECISION RELATED

20170HB0271PN1942 - 521 -

TO THIS PART OR WHO IS INVOLVED IN THE DEVELOPMENT OF LAW,

REGULATION OR POLICY RELATING TO MATTERS REGULATED UNDER THIS

PART. THE TERM INCLUDES AN EMPLOYEE WITH LAW ENFORCEMENT

AUTHORITY.

(4) AN EMPLOYEE OF A DEPARTMENT, AGENCY, BOARD,

COMMISSION, AUTHORITY OR OTHER GOVERNMENTAL BODY NOT INCLUDED

IN PARAGRAPH (1), (2) OR (3) WITH DISCRETIONARY POWER THAT

MAY AFFECT OR INFLUENCE THE OUTCOME OF THE GOVERNMENTAL

BODY'S ACTION OR DECISION RELATED TO THIS PART OR WHO IS

INVOLVED IN THE DEVELOPMENT OF REGULATION OR POLICY RELATING

TO MATTERS REGULATED UNDER THIS PART. THE TERM INCLUDES AN

EMPLOYEE WITH LAW ENFORCEMENT AUTHORITY.

"FINANCIAL BACKER." AN INVESTOR, MORTGAGEE, BONDHOLDER,

NOTEHOLDER OR OTHER SOURCES OF EQUITY OR CAPITAL PROVIDED TO AN

APPLICANT OR LICENSED ENTITY.

"FIRE COMPANY AND EMERGENCY RESPONDER GRANT FUND." THE FUND

ESTABLISHED IN SECTION 4106 (RELATING TO FIRE COMPANY AND

EMERGENCY RESPONDER GRANT FUND).

"GAMBLING GAME." A GAME THAT PLAYS OR SIMULATES THE PLAY OF

VIDEO POKER, BINGO, KENO, REEL GAMES, BLACKJACK OR OTHER SIMILAR

GAME AUTHORIZED BY THE BOARD.

"GAMING EMPLOYEE."

(1) ANY OF THE FOLLOWING:

(I) AN EMPLOYEE OF A TERMINAL OPERATOR LICENSEE OR

SUPPLIER LICENSEE THAT IS NOT A KEY EMPLOYEE BUT HAS

DIRECT CONTACT WITH ESTABLISHMENT LICENSEES OR IS

OTHERWISE INVOLVED IN THE CONDUCT OF VIDEO GAMING.

(II) AN EMPLOYEE OF A SUPPLIER LICENSEE WHOSE DUTIES

ARE DIRECTLY INVOLVED WITH THE REPAIR OR DISTRIBUTION OF

VIDEO GAMING TERMINALS OR ASSOCIATED EQUIPMENT SOLD OR

20170HB0271PN1942 - 522 -

PROVIDED TO A TERMINAL OPERATOR LICENSEE WITHIN THIS

COMMONWEALTH AS DETERMINED BY THE BOARD.

(2) THE TERM DOES NOT INCLUDE NONGAMING PERSONNEL AS

DETERMINED BY THE BOARD OR AN EMPLOYEE OF AN ESTABLISHMENT

LICENSEE.

"GAMING SCHOOL." AN 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

VIDEO GAMING TERMINALS AND ASSOCIATED EQUIPMENT MAINTENANCE AND

REPAIR.

"GAMING SERVICE PROVIDER." A PERSON THAT IS NOT REQUIRED TO

BE LICENSED AS A TERMINAL OPERATOR, MANUFACTURER, SUPPLIER OR

ESTABLISHMENT LICENSEE AND PROVIDES GOODS OR SERVICES TO A

TERMINAL OPERATOR LICENSEE THAT DIRECTLY RELATES TO THE

OPERATION AND SECURITY OF A VIDEO GAMING TERMINAL OR REDEMPTION

TERMINAL. THE TERM SHALL NOT INCLUDE A PERSON THAT SUPPLIES

GOODS OR SERVICES THAT, AT THE DISCRETION OF THE BOARD, DOES NOT

IMPACT THE INTEGRITY OF VIDEO GAMING, VIDEO GAMING TERMINALS OR

THE CONNECTION OF VIDEO GAMING TERMINALS TO THE CENTRAL CONTROL

COMPUTER SYSTEM, INCLUDING:

(1) SEATING TO ACCOMPANY VIDEO GAMING TERMINALS.

(2) STRUCTURAL OR COSMETIC RENOVATIONS, IMPROVEMENTS OR

OTHER ALTERATIONS TO A VIDEO GAMING AREA.

"GROSS TERMINAL REVENUE." THE TOTAL OF CASH OR CASH

EQUIVALENTS RECEIVED BY A VIDEO GAMING TERMINAL MINUS THE TOTAL

OF CASH OR CASH EQUIVALENTS PAID OUT TO PLAYERS AS A RESULT OF

PLAYING A VIDEO GAMING TERMINAL. THE TERM DOES NOT INCLUDE

20170HB0271PN1942 - 523 -

COUNTERFEIT CASH OR CASH TAKEN IN A FRAUDULENT ACT PERPETRATED

AGAINST A TERMINAL OPERATOR LICENSEE FOR WHICH THE TERMINAL

OPERATOR LICENSEE IS NOT REIMBURSED.

"HOLDING COMPANY." A PERSON, OTHER THAN AN INDIVIDUAL,

WHICH, DIRECTLY OR INDIRECTLY, OWNS OR HAS THE POWER OR RIGHT TO

CONTROL OR TO VOTE A SIGNIFICANT PART OF THE OUTSTANDING VOTING

SECURITIES OF A CORPORATION OR OTHER FORM OF BUSINESS

ORGANIZATION. A HOLDING COMPANY INDIRECTLY HAS, HOLDS OR OWNS

ANY SUCH POWER, RIGHT OR SECURITY IF IT DOES SO THROUGH AN

INTEREST IN A SUBSIDIARY OR SUCCESSIVE SUBSIDIARIES.

"INCENTIVE." CONSIDERATION, INCLUDING A PROMOTION OR PRIZE,

PROVIDED TO A PLAYER OR POTENTIAL PLAYER AS AN ENTICEMENT TO

PLAY A VIDEO GAMING TERMINAL. THE TERM SHALL NOT INCLUDE

CONSIDERATION, PROMOTIONS, PRIZES OR COMPLIMENTARY PLAY PROVIDED

TO A PLAYER OR POTENTIAL PLAYER THROUGH A CUSTOMER LOYALTY OR

REWARDS CARD PROGRAM APPROVED BY THE BOARD.

"INDUCEMENT."

(1) ANY OF THE FOLLOWING:

(I) CONSIDERATION PAID DIRECTLY OR INDIRECTLY, FROM

A MANUFACTURER, SUPPLIER, TERMINAL OPERATOR, PROCUREMENT

AGENT, GAMING EMPLOYEE, EMPLOYEE OR ANOTHER PERSON ON

BEHALF OF AN APPLICANT OR LICENSEE, TO AN ESTABLISHMENT,

ESTABLISHMENT LICENSEE, ESTABLISHMENT LICENSEE OWNER OR

AN EMPLOYEE OF THE ESTABLISHMENT LICENSEE, DIRECTLY OR

INDIRECTLY AS AN ENTICEMENT TO SOLICIT OR MAINTAIN THE

ESTABLISHMENT LICENSEE OR ESTABLISHMENT LICENSEE OWNER'S

BUSINESS.

(II) CASH, INCENTIVE, MARKETING AND ADVERTISING

COST, GIFT, FOOD, BEVERAGE, LOAN, PREPAYMENT OF GROSS

TERMINAL REVENUE AND OTHER CONTRIBUTION OR PAYMENT THAT

20170HB0271PN1942 - 524 -

OFFSETS AN ESTABLISHMENT LICENSEE'S OPERATIONAL COSTS, OR

AS OTHERWISE DETERMINED BY THE BOARD.

(2) THE TERM SHALL NOT INCLUDE COSTS PAID BY A TERMINAL

OPERATOR APPLICANT OR LICENSEE RELATED TO:

(I) STRUCTURAL CHANGES NECESSARY TO SEGREGATE THE

VIDEO GAMING AREA OR MAINTAIN THE SECURITY OF VIDEO

GAMING TERMINALS AND REDEMPTION TERMINALS AS REQUIRED BY

THE BOARD THAT DO NOT EXCEED $2,500, PROVIDED, HOWEVER

THAT ANY CHANGES IN EXCESS OF $2,500 MAY BE SHARED

EQUALLY BETWEEN THE TERMINAL APPLICANT OR LICENSEE AND

THE ESTABLISHMENT APPLICANT OR LICENSEE.

(II) SURVEILLANCE TECHNOLOGY TO MONITOR ONLY THE

VIDEO GAMING AREA.

(III) MAKING VIDEO GAMING TERMINALS OPERATE AT A

LICENSED ESTABLISHMENT, INCLUDING WIRING AND REWIRING,

SOFTWARE UPDATES, ONGOING VIDEO GAMING TERMINAL

MAINTENANCE, REDEMPTION TERMINALS, NETWORK CONNECTIONS,

SITE CONTROLLERS AND COSTS ASSOCIATED WITH COMMUNICATING

WITH THE CENTRAL CONTROL COMPUTER SYSTEM.

(IV) INSTALLATION OF SECURITY AND ALARM SYSTEM AT AN

ESTABLISHMENT LICENSEE'S PREMISES THAT ARE REASONABLY

NECESSARY TO PROTECT VIDEO GAMING TERMINALS AND

REDEMPTION TERMINALS OUTSIDE NORMAL BUSINESS HOURS,

PROVIDED THAT THE COST DOES NOT EXCEED $1,000.

(V) ANY REQUIREMENT ESTABLISHED BY THE BOARD

REGARDING MINIMUM STANDARDS FOR A VIDEO GAMING AREA.

(VI) ANY COSMETIC RENOVATIONS OR IMPROVEMENTS WITHIN

A VIDEO GAMING AREA THAT ARE REASONABLY NECESSARY, AS

DETERMINED BY THE BOARD.

(VII) FEES ESTABLISHED BY THE BOARD TO COVER COSTS

20170HB0271PN1942 - 525 -

ASSOCIATED WITH THE MANDATORY EMPLOYEE TRAINING PROGRAM

ESTABLISHED UNDER SECTION 3706 (RELATING TO COMPULSIVE

AND PROBLEM GAMBLING).

"INSTITUTIONAL INVESTOR." A RETIREMENT FUND ADMINISTERED BY

A PUBLIC AGENCY FOR THE EXCLUSIVE BENEFIT OF FEDERAL, STATE OR

LOCAL PUBLIC EMPLOYEES, INVESTMENT COMPANY REGISTERED UNDER THE

INVESTMENT COMPANY ACT OF 1940 (54 STAT. 789, 15 U.S.C. § 80A-1

ET SEQ.), COLLECTIVE INVESTMENT TRUST ORGANIZED BY BANKS UNDER

PART NINE OF THE RULES OF THE COMPTROLLER OF THE CURRENCY,

CLOSED-END INVESTMENT TRUST, CHARTERED OR LICENSED LIFE

INSURANCE COMPANY OR PROPERTY AND CASUALTY INSURANCE COMPANY,

BANKING AND OTHER CHARTERED OR LICENSED LENDING INSTITUTION,

INVESTMENT ADVISOR REGISTERED UNDER THE INVESTMENT ADVISERS ACT

OF 1940 (54 STAT. 847, 15 U.S.C. § 80B-1 ET SEQ.) AND SUCH OTHER

PERSON AS THE BOARD MAY DETERMINE CONSISTENT WITH THIS PART.

"INTERMEDIARY." A PERSON, OTHER THAN AN INDIVIDUAL, THAT:

(1) IS A HOLDING COMPANY WITH RESPECT TO A CORPORATION

OR OTHER FORM OF BUSINESS ORGANIZATION, THAT HOLDS OR APPLIES

FOR A LICENSE UNDER THIS PART; AND

(2) IS A SUBSIDIARY WITH RESPECT TO A HOLDING COMPANY.

"KEY EMPLOYEE." AN INDIVIDUAL EMPLOYED BY A MANUFACTURER

LICENSEE, SUPPLIER LICENSEE, TERMINAL OPERATOR LICENSEE OR

ESTABLISHMENT LICENSEE THAT IS DETERMINED BY THE BOARD TO BE A

DIRECTOR OR DEPARTMENT HEAD OR OTHERWISE EMPOWERED TO MAKE

DISCRETIONARY DECISIONS THAT REGULATE THE CONDUCT OF VIDEO

GAMING.

"LAW ENFORCEMENT AUTHORITY." THE POWER TO CONDUCT

INVESTIGATIONS OF OR TO MAKE ARRESTS FOR CRIMINAL OFFENSES.

"LICENSED ENTITY." A TERMINAL OPERATOR LICENSEE,

ESTABLISHMENT LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER

20170HB0271PN1942 - 526 -

LICENSEE.

"LICENSED ENTITY REPRESENTATIVE." A PERSON, INCLUDING AN

ATTORNEY, AGENT OR LOBBYIST, ACTING ON BEHALF OF OR AUTHORIZED

TO REPRESENT THE INTEREST OF AN APPLICANT, LICENSEE OR OTHER

PERSON AUTHORIZED BY THE BOARD TO ENGAGE IN AN ACT OR ACTIVITY

THAT IS REGULATED UNDER THIS PART REGARDING A MATTER BEFORE OR

THAT MAY REASONABLY BE EXPECTED TO COME BEFORE THE BOARD.

"LICENSED FACILITY." AS DEFINED IN SECTION 1103 (RELATING TO

DEFINITIONS).

"LICENSED GAMING ENTITY." AS DEFINED IN SECTION 1103.

"LIQUOR ESTABLISHMENT." A PERSON THAT OPERATES UNDER A VALID

LIQUOR LICENSE. THE TERM EXCLUDES:

(1) A PERSON WHO OPERATES UNDER A LIQUOR LICENSE AND THE

PERSON'S LICENSED PREMISES IS LOCATED WITHIN A LICENSED

FACILITY.

(2) A PERSON WHO OPERATES UNDER A LIQUOR LICENSE AND THE

PERSON'S LICENSED PREMISES HAS AN INTERIOR CONNECTION TO AN

UNLICENSED BUSINESS THAT IS NOT A BOWLING CENTER

ESTABLISHMENT.

(3) A NONPRIMARY LOCATION.

"LIQUOR LICENSE." ANY OF THE FOLLOWING LICENSES ISSUED BY

THE PENNSYLVANIA LIQUOR CONTROL BOARD UNDER ARTICLE IV OF THE

ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE LIQUOR CODE:

(1) CATERING CLUB.

(2) CLUB LIQUOR.

(3) CLUB RETAIL DISPENSER.

(4) EATING PLACE RETAIL DISPENSER.

(5) HOTEL LIQUOR.

(6) HOTEL RETAIL DISPENSER.

(7) MUNICIPAL GOLF COURSE LIQUOR.

20170HB0271PN1942 - 527 -

(8) MUNICIPAL GOLF COURSE RETAIL DISPENSER.

(9) PRIVATELY-OWNED PRIVATE GOLF COURSE CLUB LIQUOR.

(10) PRIVATELY-OWNED PRIVATE GOLF COURSE CATERING CLUB

LIQUOR.

(11) PRIVATELY-OWNED PUBLIC GOLF COURSE RETAIL

DISPENSER.

(12) PRIVATELY-OWNED PUBLIC GOLF COURSE RESTAURANT

LIQUOR.

(13) RESTAURANT LIQUOR.

"MANUFACTURER." A PERSON THAT MANUFACTURES, BUILDS,

REBUILDS, FABRICATES, ASSEMBLES, PRODUCES, PROGRAMS, DESIGNS OR

OTHERWISE MAKES MODIFICATIONS TO A VIDEO GAMING TERMINAL,

REDEMPTION TERMINAL OR ASSOCIATED EQUIPMENT FOR USE OR PLAY IN

THIS COMMONWEALTH FOR GAMING PURPOSES AND PROVIDES SUCH PRODUCTS

TO A SUPPLIER.

"MANUFACTURER LICENSE." A LICENSE ISSUED BY THE BOARD

AUTHORIZING A MANUFACTURER TO MANUFACTURE OR PRODUCE VIDEO

GAMING TERMINALS, REDEMPTION TERMINALS OR ASSOCIATED EQUIPMENT

FOR USE IN THIS COMMONWEALTH FOR GAMING PURPOSES.

"MANUFACTURER LICENSEE." A PERSON THAT OBTAINS A

MANUFACTURER LICENSE.

"MUNICIPALITY." A CITY, TOWNSHIP, BOROUGH OR INCORPORATED

TOWN.

"NON-KEY EMPLOYEE." AN INDIVIDUAL EMPLOYED BY A TERMINAL

OPERATOR LICENSEE WHO, UNLESS OTHERWISE DESIGNATED BY THE BOARD,

IS NOT A KEY EMPLOYEE.

"NONPRIMARY LOCATION." AS DEFINED IN 3 PA.C.S. § 9301.

"OCCUPATION PERMIT." A PERMIT AUTHORIZING AN INDIVIDUAL TO

BE EMPLOYED OR TO WORK AS A GAMING EMPLOYEE.

"PARTY." THE BUREAU OR AN APPLICANT, LICENSEE, REGISTRANT OR

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OTHER PERSON APPEARING OF RECORD IN ANY PROCEEDING BEFORE THE

BOARD.

"PERMITTEE." A HOLDER OF A PERMIT ISSUED UNDER THIS PART.

"PERSON." A NATURAL PERSON, CORPORATION, FOUNDATION,

ORGANIZATION, BUSINESS TRUST, ESTATE, LIMITED LIABILITY COMPANY,

LICENSED CORPORATION, TRUST, PARTNERSHIP, LIMITED LIABILITY

PARTNERSHIP, ASSOCIATION OR OTHER FORM OF LEGAL BUSINESS ENTITY.

"PLAYER." AN INDIVIDUAL WHO WAGERS CASH OR A CASH EQUIVALENT

IN THE PLAY OR OPERATION OF A VIDEO GAMING TERMINAL AND THE PLAY

OR OPERATION OF WHICH MAY DELIVER OR ENTITLE THE INDIVIDUAL

PLAYING OR OPERATING THE VIDEO GAMING TERMINAL TO RECEIVE CASH

OR A CASH EQUIVALENT FROM A TERMINAL OPERATOR LICENSEE.

"PRINCIPAL." AN OFFICER, DIRECTOR, PERSON WHO DIRECTLY HOLDS

A BENEFICIAL INTEREST IN OR OWNERSHIP OF THE SECURITIES OF AN

APPLICANT OR LICENSEE, PERSON WHO HAS A CONTROLLING INTEREST IN

AN APPLICANT OR LICENSEE OR HAS THE ABILITY TO ELECT A MAJORITY

OF THE BOARD OF DIRECTORS OF A LICENSEE OR TO OTHERWISE CONTROL

A LICENSEE, LENDER OR OTHER LICENSED FINANCIAL INSTITUTION OF AN

APPLICANT OR LICENSEE, 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 OR

LICENSEE OR OTHER PERSON OR EMPLOYEE OF AN APPLICANT, TERMINAL

OPERATOR LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER LICENSEE

DEEMED TO BE A PRINCIPAL BY THE BOARD, INCLUDING A PROCUREMENT

AGENT.

"PROCUREMENT AGENT." A PERSON THAT SHARES IN THE GROSS

TERMINAL REVENUE OR IS OTHERWISE COMPENSATED FOR THE PURPOSE OF

SOLICITING OR PROCURING A TERMINAL PLACEMENT AGREEMENT.

"PROGRESSIVE PAYOUT." A VIDEO GAME TERMINAL WAGER PAYOUT

THAT INCREASES IN A MONETARY AMOUNT BASED ON THE AMOUNTS WAGERED

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IN A PROGRESSIVE SYSTEM.

"PROGRESSIVE SYSTEM." A COMPUTERIZED SYSTEM LINKING VIDEO

GAME TERMINALS AT AN ESTABLISHMENT LICENSEE AND OFFERING ONE OR

MORE COMMON PROGRESSIVE PAYOUTS BASED ON THE AMOUNTS WAGERED.

"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; 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.).

"REDEMPTION TERMINAL." THE COLLECTIVE HARDWARE, SOFTWARE,

COMMUNICATIONS TECHNOLOGY AND OTHER ANCILLARY EQUIPMENT USED TO

FACILITATE THE PAYMENT OF CASH OR A CASH EQUIVALENT TO A PLAYER

AS A RESULT OF PLAYING A VIDEO GAMING TERMINAL.

"SECURITY." AS DEFINED IN THE ACT OF DECEMBER 5, 1972

(P.L.1280, NO.284), KNOWN AS THE PENNSYLVANIA SECURITIES ACT OF

1972.

"SLOT MACHINE." AS DEFINED IN SECTION 1103.

"STATE TREASURER." THE STATE TREASURER OF THE COMMONWEALTH.

"SUPPLIER." A PERSON THAT SELLS, LEASES, OFFERS OR OTHERWISE

PROVIDES, DISTRIBUTES OR SERVICES ANY VIDEO GAMING TERMINAL,

REDEMPTION TERMINAL OR ASSOCIATED EQUIPMENT TO A TERMINAL

OPERATOR LICENSEE FOR USE OR PLAY IN THIS COMMONWEALTH.

"SUPPLIER LICENSE." A LICENSE ISSUED BY THE BOARD

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AUTHORIZING A SUPPLIER TO PROVIDE PRODUCTS OR SERVICES RELATED

TO VIDEO GAMING TERMINALS, REDEMPTION TERMINALS OR ASSOCIATED

EQUIPMENT TO TERMINAL OPERATOR LICENSEES FOR USE IN THIS

COMMONWEALTH FOR VIDEO GAMING.

"SUPPLIER LICENSEE." A PERSON THAT HOLDS A SUPPLIER LICENSE.

"TERMINAL OPERATOR." A PERSON THAT OWNS, SERVICES OR

MAINTAINS VIDEO GAMING TERMINALS FOR PLACEMENT AND OPERATION IN

AN ESTABLISHMENT LICENSEE.

"TERMINAL OPERATOR LICENSE." A LICENSE ISSUED BY THE BOARD

AUTHORIZING A TERMINAL OPERATOR TO PLACE AND OPERATE VIDEO

GAMING TERMINALS IN AN ESTABLISHMENT LICENSEE'S PREMISES

PURSUANT TO THIS PART AND THE RULES AND REGULATIONS PROMULGATED

UNDER THIS PART.

"TERMINAL OPERATOR LICENSEE." A PERSON THAT HOLDS A TERMINAL

OPERATOR LICENSE.

"TERMINAL PLACEMENT AGREEMENT." THE FORMAL WRITTEN AGREEMENT

OR CONTRACT BETWEEN A TERMINAL OPERATOR APPLICANT OR LICENSEE

AND AN ESTABLISHMENT APPLICANT OR LICENSEE THAT ESTABLISHES THE

TERMS AND CONDITIONS REGARDING THE CONDUCT OF VIDEO GAMING.

"TRUCK STOP ESTABLISHMENT." A PREMISES THAT:

(1) IS EQUIPPED WITH DIESEL ISLANDS USED FOR FUELING

COMMERCIAL MOTOR VEHICLES.

(2) HAS SOLD ON AVERAGE 50,000 GALLONS OF DIESEL OR

BIODIESEL FUEL EACH MONTH FOR THE PREVIOUS 12 MONTHS OR IS

PROJECTED TO SELL AN AVERAGE OF 50,000 GALLONS OF DIESEL OR

BIODIESEL FUEL EACH MONTH FOR THE NEXT 12 MONTHS.

(3) HAS PARKING SPACES DEDICATED FOR COMMERCIAL MOTOR

VEHICLES.

(4) HAS A CONVENIENCE STORE.

(5) IS SITUATED ON A PARCEL OF LAND OF NOT LESS THAN

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THREE ACRES THAT THE TRUCK STOP ESTABLISHMENT OWNS OR LEASES.

"VIDEO GAMING AREA." THE AREA OF AN ESTABLISHMENT LICENSEE'S

PREMISES WHERE VIDEO GAMING TERMINALS ARE INSTALLED FOR

OPERATION AND PLAY.

"VIDEO GAMING EMPLOYEES." THE TERM INCLUDES KEY EMPLOYEES

AND NON-KEY EMPLOYEES.

"VIDEO GAMING FUND." THE FUND ESTABLISHED IN SECTION 4102

(RELATING TO TAXES AND ASSESSMENTS).

"VIDEO GAMING TERMINAL."

(1) A MECHANICAL OR ELECTRICAL CONTRIVANCE, TERMINAL,

MACHINE OR OTHER DEVICE APPROVED BY THE BOARD THAT, UPON

INSERTION OF CASH OR CASH EQUIVALENTS, IS AVAILABLE TO PLAY

OR OPERATE ONE OR MORE GAMBLING GAMES, THE PLAY OF WHICH

UTILIZES A RANDOM NUMBER GENERATOR AND:

(I) MAY AWARD A WINNING PLAYER EITHER A FREE GAME OR

CREDIT THAT SHALL ONLY BE REDEEMABLE FOR CASH OR CASH

EQUIVALENTS AT A REDEMPTION TERMINAL.

(II) MAY UTILIZE VIDEO DISPLAYS.

(III) MAY USE AN ELECTRONIC CREDIT SYSTEM FOR

RECEIVING WAGERS AND MAKING PAYOUTS THAT ARE ONLY

REDEEMABLE AT A REDEMPTION TERMINAL.

(2) ASSOCIATED EQUIPMENT NECESSARY TO CONDUCT THE

OPERATION OF THE CONTRIVANCE, TERMINAL, MACHINE OR OTHER

DEVICE.

(3) THE TERM DOES NOT INCLUDE A SLOT MACHINE OPERATED AT

A LICENSED FACILITY IN ACCORDANCE WITH PART II (RELATING TO

GAMING) OR A COIN-OPERATED AMUSEMENT GAME.

CHAPTER 33

ADMINISTRATION

SEC.

20170HB0271PN1942 - 532 -

3301. POWERS OF BOARD.

3302. REGULATORY AUTHORITY OF BOARD.

3303. TEMPORARY REGULATIONS.

3304. APPEALS.

3305. RECORDS AND CONFIDENTIALITY OF INFORMATION.

3306. REPORTING.

3307. DIVERSITY.

3308. AUTHORITY OF DEPARTMENT.

3309. CENTRAL CONTROL COMPUTER SYSTEM.

3310. DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS.

§ 3301. POWERS OF BOARD.

(A) GENERAL POWERS.--

(1) THE BOARD SHALL HAVE GENERAL AND SOLE REGULATORY

AUTHORITY OVER THE CONDUCT OF VIDEO GAMING TERMINAL OR

RELATED ACTIVITIES AS DESCRIBED IN THIS PART. THE BOARD SHALL

ENSURE THE INTEGRITY OF THE ACQUISITION AND OPERATION OF

VIDEO GAMING TERMINALS, REDEMPTION TERMINALS AND ASSOCIATED

EQUIPMENT AND SHALL HAVE SOLE REGULATORY AUTHORITY OVER EVERY

ASPECT OF THE CONDUCT OF VIDEO GAMING.

(2) THE BOARD MAY EMPLOY INDIVIDUALS AS NECESSARY TO

CARRY OUT THE REQUIREMENTS OF THIS PART WHO SHALL SERVE AT

THE BOARD'S PLEASURE.

(B) SPECIFIC POWERS.--THE BOARD SHALL HAVE THE POWER AND

DUTY:

(1) TO REQUIRE BACKGROUND INVESTIGATIONS ON APPLICANTS,

LICENSEES, PRINCIPALS, KEY EMPLOYEES, PROCUREMENT AGENTS OR

GAMING EMPLOYEES UNDER THE JURISDICTION OF THE BOARD.

(2) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,

SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF TERMINAL

OPERATOR LICENSES.

20170HB0271PN1942 - 533 -

(3) AT ITS DISCRETION, TO AWARD, REVOKE, SUSPEND,

CONDITION OR DENY ISSUANCE OR RENEWAL OF ESTABLISHMENT

LICENSES.

(4) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,

SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF SUPPLIER

AND MANUFACTURER LICENSES.

(5) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,

SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF A LICENSE

OR PERMIT FOR VARIOUS CLASSES OF EMPLOYEES AS REQUIRED UNDER

THIS PART.

(6) AT ITS DISCRETION, TO ISSUE, APPROVE, RENEW, REVOKE,

SUSPEND, CONDITION OR DENY ISSUANCE OR RENEWAL OF ADDITIONAL

LICENSES OR PERMITS THAT MAY BE REQUIRED BY THE BOARD UNDER

THIS PART.

(7) AT ITS DISCRETION, TO SUSPEND, CONDITION OR DENY THE

ISSUANCE OR RENEWAL OF A LICENSE OR PERMIT OR LEVY A FINE OR

OTHER SANCTION FOR A VIOLATION OF THIS PART.

(8) TO REQUIRE PROSPECTIVE AND EXISTING VIDEO GAMING

EMPLOYEES, INDEPENDENT CONTRACTORS, APPLICANTS, PERMITTEES

AND LICENSEES TO SUBMIT TO FINGERPRINTING BY THE PENNSYLVANIA

STATE POLICE OR ITS AUTHORIZED DESIGNEE. THE PENNSYLVANIA

STATE POLICE OR ITS AUTHORIZED DESIGNEE 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.

(9) TO REQUIRE PROSPECTIVE AND EXISTING VIDEO GAMING

EMPLOYEES, INDEPENDENT CONTRACTORS, APPLICANTS, PERMITTEES

AND LICENSEES TO SUBMIT PHOTOGRAPHS CONSISTENT WITH A

STATEMENT OF POLICY DEVELOPED BY THE BOARD.

(10) IN ADDITION TO THE POWER OF THE BOARD RELATING TO

20170HB0271PN1942 - 534 -

LICENSE AND PERMIT APPLICANTS, TO DETERMINE AT ITS DISCRETION

THE SUITABILITY OF A PERSON WHO FURNISHES OR SEEKS TO FURNISH

TO A TERMINAL OPERATOR LICENSEE DIRECTLY OR INDIRECTLY GOODS,

SERVICES OR PROPERTY RELATED TO VIDEO GAMING TERMINALS,

REDEMPTION TERMINALS OR ASSOCIATED EQUIPMENT.

(11) TO APPROVE AN APPLICATION FOR OR ISSUE OR RENEW A

LICENSE, CERTIFICATE, REGISTRATION OR PERMIT IF THE BOARD IS

SATISFIED THAT THE PERSON HAS DEMONSTRATED BY CLEAR AND

CONVINCING EVIDENCE THAT THE PERSON IS OF GOOD CHARACTER,

HONESTY AND INTEGRITY 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 VIDEO GAMING TERMINAL OPERATIONS OR

CREATE OR ENHANCE THE DANGER OF UNSUITABLE, UNFAIR OR ILLEGAL

PRACTICES, METHODS AND ACTIVITIES IN THE CONDUCT OF VIDEO

GAMING OR THE CARRYING ON OF THE BUSINESS AND FINANCIAL

ARRANGEMENTS INCIDENTAL THERETO.

(12) TO PUBLISH ON THE BOARD'S PUBLICLY ACCESSIBLE

INTERNET WEBSITE A COMPLETE LIST OF PERSONS OR ENTITIES WHO

APPLIED FOR OR HELD A TERMINAL OPERATOR LICENSE,

ESTABLISHMENT LICENSE, MANUFACTURER LICENSE OR SUPPLIER

LICENSE AT ANY TIME DURING THE PRECEDING CALENDAR YEAR AND

AFFILIATES, INTERMEDIARIES, SUBSIDIARIES AND HOLDING

COMPANIES THEREOF AND THE STATUS OF THE APPLICATION OR

LICENSE.

(13) 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

20170HB0271PN1942 - 535 -

GENERAL ASSEMBLY OUT OF THE ACCOUNTS ESTABLISHED UNDER

SECTION 4104 (RELATING TO REGULATORY ASSESSMENTS) REQUIRED TO

MEET THE OBLIGATIONS UNDER THIS PART ACCRUING DURING THE

FISCAL PERIOD BEGINNING JULY 1 OF THE FOLLOWING YEAR.

(14) IN THE EVENT THAT APPROPRIATIONS FOR THE

ADMINISTRATION OF THIS PART ARE NOT ENACTED BY JUNE 30 OF ANY

YEAR, FUNDS APPROPRIATED FOR THE ADMINISTRATION OF THIS PART

WHICH ARE UNEXPENDED, UNCOMMITTED AND UNENCUMBERED AT THE END

OF A FISCAL YEAR SHALL REMAIN AVAILABLE FOR EXPENDITURE BY

THE BOARD OR OTHER AGENCY TO WHICH THEY WERE APPROPRIATED

UNTIL THE ENACTMENT OF AN APPROPRIATION FOR THE ENSUING

FISCAL YEAR.

(15) TO COLLECT AND POST INFORMATION ON THE BOARD'S

PUBLICLY ACCESSIBLE INTERNET WEBSITE WITH SUFFICIENT DETAIL

TO INFORM THE PUBLIC OF PERSONS WITH A CONTROLLING INTEREST

OR OWNERSHIP INTEREST IN AN APPLICANT FOR A TERMINAL OPERATOR

LICENSE OR TERMINAL OPERATOR LICENSEE OR AFFILIATE,

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF AN APPLICANT

FOR A TERMINAL OPERATOR LICENSE. THE POSTING SHALL INCLUDE:

(I) IF THE APPLICANT FOR A TERMINAL OPERATOR LICENSE

OR TERMINAL OPERATOR LICENSEE OR AN AFFILIATE,

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF THE

APPLICANT FOR A TERMINAL OPERATOR LICENSE OR TERMINAL

OPERATOR LICENSEE IS A PUBLICLY TRADED DOMESTIC OR

FOREIGN CORPORATION, PARTNERSHIP, LIMITED LIABILITY

COMPANY OR OTHER LEGAL ENTITY, THE NAMES OF PERSONS WITH

A CONTROLLING INTEREST.

(II) IF THE APPLICANT FOR A TERMINAL OPERATOR

LICENSE OR TERMINAL OPERATOR LICENSEE OR AN AFFILIATE,

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY OF THE

20170HB0271PN1942 - 536 -

APPLICANT FOR A TERMINAL OPERATOR LICENSE OR TERMINAL

OPERATOR LICENSEE IS A PRIVATELY HELD DOMESTIC OR FOREIGN

CORPORATION, PARTNERSHIP, LIMITED LIABILITY COMPANY OR

OTHER LEGAL ENTITY, THE NAMES OF ALL PERSONS WITH AN

OWNERSHIP INTEREST EQUAL TO OR GREATER THAN 1%.

(III) THE NAME OF A PERSON ENTITLED TO CAST THE VOTE

OF A PERSON NAMED UNDER SUBPARAGRAPH (I) OR (II).

(IV) THE NAMES OF OFFICERS, DIRECTORS AND PRINCIPALS

OF THE APPLICANT FOR A TERMINAL OPERATOR LICENSE OR

TERMINAL OPERATOR LICENSEE.

(16) DETERMINE, DESIGNATE AND CLASSIFY EMPLOYEES OF A

TERMINAL OPERATOR LICENSEE AS KEY EMPLOYEES AND NON-KEY

EMPLOYEES.

§ 3302. REGULATORY AUTHORITY OF BOARD.

(A) GENERAL RULE.--THE BOARD SHALL HAVE THE POWER AND DUTY:

(1) TO DENY, DENY THE RENEWAL, REVOKE, CONDITION OR

SUSPEND A LICENSE PROVIDED FOR IN THIS PART IF THE BOARD

FINDS IN ITS SOLE DISCRETION THAT A LICENSEE UNDER THIS PART

OR ITS OFFICERS, EMPLOYEES OR AGENTS HAVE INTENTIONALLY

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.

(2) TO RESTRICT ACCESS TO CONFIDENTIAL INFORMATION IN

THE POSSESSION OF THE BOARD THAT HAS BEEN OBTAINED UNDER THIS

PART AND ENSURE THAT THE CONFIDENTIALITY OF INFORMATION IS

MAINTAINED AND PROTECTED.

(3) TO PRESCRIBE AND REQUIRE PERIODIC FINANCIAL

REPORTING AND INTERNAL CONTROL REQUIREMENTS FOR TERMINAL

20170HB0271PN1942 - 537 -

OPERATOR LICENSEES.

(4) TO REQUIRE THAT EACH TERMINAL OPERATOR LICENSEE

PROVIDE TO THE BOARD ITS ANNUAL FINANCIAL STATEMENTS, WITH

SUCH ADDITIONAL DETAIL AS THE BOARD SHALL REQUIRE, WHICH

SHALL BE SUBMITTED NOT LATER THAN 180 DAYS AFTER THE END OF

THE LICENSEE'S FISCAL YEAR.

(5) TO PRESCRIBE THE PROCEDURES TO BE FOLLOWED BY

TERMINAL OPERATOR LICENSEES FOR A FINANCIAL EVENT THAT OCCURS

IN THE OPERATION AND PLAY OF VIDEO GAMING TERMINALS.

(6) TO REQUIRE THAT EACH ESTABLISHMENT LICENSEE

PROHIBITS MINORS FROM OPERATING OR USING VIDEO GAMING

TERMINALS OR REDEMPTION TERMINALS.

(7) TO ESTABLISH PROCEDURES FOR THE INSPECTION AND

CERTIFICATION OF COMPLIANCE OF VIDEO GAMING TERMINALS,

REDEMPTION TERMINALS AND ASSOCIATED EQUIPMENT PRIOR TO BEING

PLACED INTO USE BY A TERMINAL OPERATOR LICENSEE.

(8) TO REQUIRE THAT NO VIDEO GAMING TERMINAL MAY BE SET

TO PAY OUT LESS THAN THE THEORETICAL PAYOUT PERCENTAGE, WHICH

PERCENTAGE 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 VIDEO GAMING

TERMINAL GAME BASED ON THE TOTAL VALUE OF THE JACKPOTS

EXPECTED TO BE PAID BY A PLAY ON A VIDEO GAMING TERMINAL GAME

DIVIDED BY THE TOTAL VALUE OF VIDEO GAMING TERMINALS WAGERS

EXPECTED TO BE MADE ON THAT PLAY OR VIDEO GAMING TERMINAL

GAME DURING THE SAME PORTION OF THE GAME CYCLE. IN SO DOING,

THE BOARD SHALL SPECIFY WHETHER THE CALCULATION INCLUDES A

PORTION OF OR THE ENTIRE CYCLE OF A VIDEO GAMING TERMINAL

GAME.

(9) TO REQUIRE THAT AN ESTABLISHMENT LICENSE APPLICANT

20170HB0271PN1942 - 538 -

PROVIDE DETAILED SITE PLANS OF ITS PROPOSED VIDEO GAMING AREA

FOR REVIEW AND APPROVAL BY THE BOARD FOR THE PURPOSE OF

DETERMINING THE ADEQUACY OF THE PROPOSED SECURITY AND

SURVEILLANCE MEASURES. THE APPLICANT SHALL COOPERATE WITH THE

BOARD IN MAKING CHANGES TO THE PLANS SUGGESTED BY THE BOARD

AND SHALL ENSURE THAT THE PLANS AS MODIFIED AND APPROVED ARE

IMPLEMENTED. THE BOARD MAY NOT REQUIRE A FLOOR-TO-CEILING

WALL TO SEGREGATE THE VIDEO GAMING AREA, BUT MAY ADOPT RULES

TO ESTABLISH SEGREGATION REQUIREMENTS.

(10) TO PROMULGATE RULES AND REGULATIONS GOVERNING THE

ADVERTISEMENT OF VIDEO GAMING TERMINALS, PROVIDED THAT THE

BOARD SHALL REQUIRE ALL ADVERTISEMENTS TO DISPLAY OR

REFERENCE THE TOLL-FREE PROBLEM GAMBLING TELEPHONE NUMBER

MAINTAINED BY THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS

UNDER SECTION 3310(B) (RELATING TO DUTIES OF DEPARTMENT OF

DRUG AND ALCOHOL PROGRAMS).

(11) TO ENTER INTO CONTRACTS WITH PERSONS FOR THE

PURPOSES OF CARRYING OUT THE POWERS AND DUTIES OF THE BOARD

UNDER THIS PART.

(12) TO ADOPT REGULATIONS GOVERNING THE POSTEMPLOYMENT

LIMITATIONS AND RESTRICTIONS APPLICABLE TO MEMBERS AND

EMPLOYEES OF THE BOARD SUBJECT TO SECTION 4302 (RELATING TO

ADDITIONAL BOARD RESTRICTIONS). IN DEVELOPING THE

REGULATIONS, THE BOARD MAY CONSULT WITH THE STATE ETHICS

COMMISSION, GOVERNMENTAL AGENCIES AND THE DISCIPLINARY BOARD

OF THE SUPREME COURT REGARDING POSTEMPLOYMENT LIMITATIONS AND

RESTRICTIONS ON MEMBERS AND EMPLOYEES OF THE BOARD WHO ARE

MEMBERS OF THE PENNSYLVANIA BAR.

(13) TO REVIEW AND APPROVE ALL CASH HANDLING POLICIES

AND PROCEDURES EMPLOYED BY TERMINAL OPERATOR LICENSEES.

20170HB0271PN1942 - 539 -

(14) TO PROMULGATE RULES AND REGULATIONS GOVERNING THE

PLACEMENT OF AUTOMATED TELLER MACHINES WITHIN VIDEO GAMING

AREAS.

(15) TO ESTABLISH REASONABLE AGE-VERIFICATION PROCEDURES

FOR ESTABLISHMENT LICENSEES AND THEIR EMPLOYEES TO ENSURE

MINORS DO NOT ACCESS A VIDEO GAMING AREA OR TERMINAL,

PROVIDED THAT THE BOARD MAY NOT REQUIRE VIDEO GAMING

TERMINALS TO BE EQUIPPED WITH IDENTIFICATION CARD-READING

DEVICES OR REQUIRE ESTABLISHMENT LICENSEES TO PURCHASE

IDENTIFICATION CARD-READING DEVICES.

(16) TO PROMULGATE RULES AND REGULATIONS GOVERNING

PLAYER LOYALTY OR REWARDS CARD PROGRAMS.

(17) TO PROMULGATE RULES AND REGULATIONS GOVERNING THE

INTERCONNECTION OF VIDEO GAMING TERMINALS WITH A SINGLE

ESTABLISHMENT FOR A PROGRESSIVE SYSTEM.

(18) TO PROMULGATE RULES AND REGULATIONS NECESSARY FOR

THE ADMINISTRATION AND ENFORCEMENT OF THIS PART.

(19) TO LIMIT THE TOTAL NUMBER OF VIDEO GAMING TERMINALS

IN OPERATION WITHIN THIS COMMONWEALTH AS FOLLOWS:

(I) NO MORE THAN 30,000 VIDEO GAMING TERMINALS BY

DECEMBER 31, 2018.

(II) NO MORE THAN 35,000 VIDEO GAMING TERMINALS BY

DECEMBER 31, 2019.

(III) NO MORE THAN 40,000 VIDEO GAMING TERMINALS BY

DECEMBER 31, 2020, AND THEREAFTER.

(B) APPLICABLE LAW.--EXCEPT AS PROVIDED IN SECTION 3303

(RELATING TO TEMPORARY REGULATIONS), REGULATIONS SHALL BE

ADOPTED 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.

20170HB0271PN1942 - 540 -

§ 3303. TEMPORARY REGULATIONS.

(A) PROMULGATION.--IN ORDER TO FACILITATE THE PROMPT

IMPLEMENTATION OF THIS PART, REGULATIONS PROMULGATED BY THE

BOARD SHALL BE DEEMED TEMPORARY REGULATIONS WHICH SHALL EXPIRE

NO LATER THAN THREE YEARS FOLLOWING THE EFFECTIVE DATE OF THIS

SECTION. THE BOARD MAY PROMULGATE TEMPORARY REGULATIONS NOT

SUBJECT TO:

(1) SECTIONS 201, 202, 203 AND 205 OF THE ACT OF JULY

31, 1968 (P.L.769, NO.240), REFERRED TO AS THE COMMONWEALTH

DOCUMENTS LAW.

(2) SECTION 204(B) 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.

(B) EXPIRATION.--EXCEPT FOR TEMPORARY REGULATIONS RELATED TO

SECURITY AND SURVEILLANCE, THE AUTHORITY PROVIDED TO THE BOARD

TO ADOPT TEMPORARY REGULATIONS IN SUBSECTION (A) SHALL EXPIRE

JULY 1, 2020. REGULATIONS ADOPTED AFTER THAT DATE SHALL BE

PROMULGATED AS PROVIDED BY LAW.

REGULATIONS REGARDING THE APPLICATION, BACKGROUND INVESTIGATION

AND RENEWAL PROCESS FOR AN ESTABLISHMENT LICENSE OR REGULATIONS

REGARDING AN ESTABLISHMENT LICENSEE'S DUTIES AND

RESPONSIBILITIES REGARDING THE CONDUCT OF VIDEO GAMING UNDER

THIS PART, THE BOARD SHALL CONSIDER PROMULGATING REGULATIONS

THAT MINIMIZE THE REGULATORY BURDEN ON ESTABLISHMENT LICENSEES

AND ESTABLISHMENT LICENSE APPLICANTS TO THE EXTENT THAT:

(1) ALL REQUIREMENTS, DUTIES AND RESPONSIBILITIES ARE

FULFILLED UNDER THIS PART.

(2) THE TEMPORARY REGULATIONS ADEQUATELY PROTECT THE

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PUBLIC INTEREST AND INTEGRITY OF VIDEO GAMING.

§ 3304. APPEALS.

AN APPLICANT OR LICENSEE MAY APPEAL A FINAL ORDER,

DETERMINATION OR DECISION OF THE BOARD INVOLVING THE APPROVAL,

ISSUANCE, DENIAL, REVOCATION, NONRENEWAL, SUSPENSION OR

CONDITIONING, INCLUDING ANY DISCIPLINARY ACTIONS, OF A LICENSE,

PERMIT OR AUTHORIZATION UNDER THIS PART 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).

§ 3305. RECORDS AND CONFIDENTIALITY OF INFORMATION.

(A) RECORDS.--THE BOARD SHALL MAINTAIN FILES AND RECORDS

DEEMED NECESSARY FOR THE ADMINISTRATION AND ENFORCEMENT OF THIS

PART.

(B) CONFIDENTIALITY OF INFORMATION.--

(1) THE FOLLOWING INFORMATION SUBMITTED BY AN APPLICANT

OR LICENSEE UNDER CHAPTER 35 (RELATING TO APPLICATION AND

LICENSURE) 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) 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 TO 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

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DECLARATIONS, ACTUAL OR PROPOSED COMPENSATION, FINANCIAL

ACCOUNT RECORDS, CREDITWORTHINESS OR FINANCIAL CONDITION

RELATING TO AN APPLICANT OR LICENSEE 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, INCLUDING CUSTOMER-IDENTIFYING

INFORMATION OR CUSTOMER PROSPECTS FOR SERVICES SUBJECT TO

COMPETITION.

(IV) SECURITY INFORMATION, INCLUDING RISK PREVENTION

PLANS, DETECTION AND COUNTERMEASURES, LOCATION OF COUNT

ROOMS, 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 AN 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

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INFORMATION BY THE SECURITIES AND EXCHANGE COMMISSION AS

PROVIDED BY 17 CFR 200.80 (RELATING TO COMMISSION RECORDS

AND INFORMATION).

(VIII) FINANCIAL INFORMATION PROVIDED TO THE BOARD

BY AN APPLICANT OR LICENSEE.

(2) NO CLAIM OF CONFIDENTIALITY MAY BE MADE REGARDING

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 MAY BE MADE REGARDING A

RECORD IN POSSESSION OF THE BOARD THAT IS OTHERWISE PUBLICLY

AVAILABLE FROM A COMMONWEALTH AGENCY, LOCAL AGENCY OR ANOTHER

JURISDICTION.

(4) EXCEPT AS PROVIDED IN SECTION 3904(H) (RELATING TO

INVESTIGATIONS AND ENFORCEMENT), THE INFORMATION MADE

CONFIDENTIAL UNDER THIS SECTION SHALL BE WITHHELD FROM PUBLIC

DISCLOSURE IN WHOLE OR IN PART, EXCEPT THAT 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 OR LICENSEE AND

DOES NOT OTHERWISE CONTAIN CONFIDENTIAL INFORMATION ABOUT

ANOTHER PERSON.

(5) THE BOARD MAY SEEK A VOLUNTARY WAIVER OF

CONFIDENTIALITY FROM AN APPLICANT OR LICENSEE BUT MAY NOT

REQUIRE AN APPLICANT OR LICENSEE TO WAIVE THE CONFIDENTIALITY

PROVIDED UNDER THIS SUBSECTION AS A CONDITION FOR THE

APPROVAL OF AN APPLICATION, RENEWAL OF A LICENSE OR OTHER

ACTION OF THE BOARD.

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(6) (I) NO CURRENT OR FORMER MEMBER AND NO CURRENT OR

FORMER EMPLOYEE, AGENT OR INDEPENDENT CONTRACTOR OF THE

BOARD, THE DEPARTMENT, THE PENNSYLVANIA STATE POLICE, THE

OFFICE OF ATTORNEY GENERAL OR OTHER EXECUTIVE BRANCH

OFFICE WHO HAS OBTAINED CONFIDENTIAL INFORMATION IN THE

PERFORMANCE OF DUTIES UNDER THIS PART SHALL INTENTIONALLY

AND PUBLICLY DISCLOSE THE INFORMATION TO A PERSON,

KNOWING THAT THE INFORMATION BEING DISCLOSED IS

CONFIDENTIAL UNDER THIS SUBSECTION, UNLESS THE PERSON IS

AUTHORIZED BY LAW TO RECEIVE IT.

(II) A VIOLATION OF THIS SUBSECTION SHALL CONSTITUTE

A MISDEMEANOR OF THE THIRD DEGREE.

(III) IN ADDITION TO ANY PENALTY UNDER SUBPARAGRAPH

(II), AN EMPLOYEE, AGENT OR INDEPENDENT CONTRACTOR WHO

VIOLATES THIS SUBSECTION SHALL BE ADMINISTRATIVELY

DISCIPLINED BY DISCHARGE, SUSPENSION, TERMINATION OF

CONTRACT OR OTHER FORMAL DISCIPLINARY ACTION AS

APPROPRIATE. IF A CURRENT MEMBER VIOLATES THIS PARAGRAPH,

THE OTHER MEMBERS SHALL REFER THE MATTER TO THE CURRENT

MEMBER'S APPOINTING AUTHORITY.

TO A DULY AUTHORIZED LAW ENFORCEMENT AGENCY PURSUANT TO THIS

SECTION, SHALL BE GIVEN TO AN APPLICANT OR LICENSEE IN A MANNER

PRESCRIBED BY THE RULES AND REGULATIONS ADOPTED BY THE BOARD.

(D) INFORMATION HELD BY OTHER AGENCIES.--FILES, RECORDS,

REPORTS AND OTHER INFORMATION IN THE POSSESSION OF THE

DEPARTMENT OR THE PENNSYLVANIA LIQUOR CONTROL BOARD PERTAINING

TO A LICENSEE SHALL BE MADE AVAILABLE TO THE BOARD AS MAY BE

NECESSARY TO THE EFFECTIVE ADMINISTRATION OF THIS PART.

§ 3306. REPORTING.

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(A) REPORT BY BOARD.--BEGINNING OCTOBER 1, 2018, AND EVERY

YEAR THEREAFTER, THE ANNUAL REPORT SUBMITTED TO THE GOVERNOR AND

THE GENERAL ASSEMBLY BY THE BOARD UNDER SECTION 1211 (RELATING

TO REPORTS OF BOARD) SHALL INCLUDE INFORMATION ON THE CONDUCT OF

VIDEO GAMING TERMINALS FOR THE PREVIOUS CALENDAR YEAR:

(1) TOTAL GROSS TERMINAL REVENUE.

(2) TOTAL NUMBER OF TERMINAL OPERATOR LICENSEES AND

ESTABLISHMENT LICENSEES.

(3) ALL TAXES, FEES, FINES AND OTHER REVENUE COLLECTED

AND, WHERE APPROPRIATE, REVENUE DISBURSED. THE DEPARTMENT

SHALL COLLABORATE WITH THE BOARD TO CARRY OUT THE

REQUIREMENTS OF THIS PARAGRAPH.

(4) OTHER INFORMATION RELATED TO THE CONDUCT OF VIDEO

GAMING TERMINALS THAT THE BOARD DEEMS APPROPRIATE.

(B) PARTICIPATION.--THE BOARD MAY REQUIRE TERMINAL OPERATOR

LICENSEES TO PROVIDE INFORMATION TO THE BOARD TO ASSIST IN THE

PREPARATION OF THE REPORT UNDER SUBSECTION (A).

EACH YEAR THEREAFTER UNTIL JUNE 1, 2020, THE DEPARTMENT SHALL

PROVIDE AN ANNUAL REPORT TO THE GOVERNOR AND THE GENERAL

ASSEMBLY REGARDING THE IMPACT OF LEGALIZED VIDEO GAMING

TERMINALS ON THE STATE LOTTERY FUND.

§ 3307. DIVERSITY.

(A) INTENT.--IT IS THE INTENT AND GOAL OF THE GENERAL

ASSEMBLY THAT THE BOARD PROMOTE AND ENSURE DIVERSITY IN ALL

ASPECTS OF THE GAMING ACTIVITIES AUTHORIZED UNDER THIS PART.

(B) REPORTS BY APPLICANTS.--AN APPLICANT FOR A TERMINAL

OPERATOR LICENSE SHALL SUBMIT A DIVERSITY PLAN TO THE BOARD. AT

A MINIMUM, THE DIVERSITY PLAN SHALL CONTAIN A SUMMARY OF:

(1) ALL EMPLOYEE RECRUITMENT AND RETENTION EFFORTS

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UNDERTAKEN TO PROMOTE THE PARTICIPATION OF DIVERSE GROUPS IN

EMPLOYMENT WITH THE APPLICANT IF ISSUED A TERMINAL OPERATOR

LICENSE.

(2) OTHER INFORMATION DEEMED NECESSARY BY THE BOARD TO

ASSESS THE DIVERSITY PLAN.

PLAN. WHEN REVIEWING THE ADEQUACY OF A DIVERSITY PLAN, THE BOARD

SHALL TAKE INTO CONSIDERATION THE TOTAL NUMBER OF VIDEO GAMING

TERMINALS THE APPLICANT PROPOSES TO OPERATE WITHIN THE

COMMONWEALTH.

(D) PERIODIC REVIEW.--UPON AN APPLICANT RECEIVING A TERMINAL

OPERATOR LICENSE, THE BOARD, IN ITS DISCRETION, MAY PERIODICALLY

REVIEW THE TERMINAL OPERATOR LICENSEE'S DIVERSITY PLAN AND

RECOMMEND CHANGES TO THE DIVERSITY PLAN.

(E) TERMINAL OPERATOR RESPONSIBILITY.--AN APPLICANT FOR A

TERMINAL OPERATOR LICENSE OR A TERMINAL OPERATOR LICENSEE SHALL

PROVIDE INFORMATION AS REQUIRED BY THE BOARD TO ENABLE THE BOARD

TO COMPLETE THE REVIEWS REQUIRED UNDER SUBSECTIONS (C) AND (D).

§ 3308. AUTHORITY OF DEPARTMENT.

(A) GENERAL RULE.--THE DEPARTMENT SHALL ADMINISTER AND

COLLECT TAXES IMPOSED UNDER THIS PART 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 THIS PART, INCLUDING THE COLLECTION OF TAXES, PENALTIES AND

INTEREST IMPOSED BY THIS PART.

(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 PRESCRIBE THE FORMS AND THE SYSTEM OF

20170HB0271PN1942 - 547 -

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 VIDEO GAMING TERMINALS AND

REDEMPTION TERMINALS UNDER THIS PART.

DEPARTMENT MAY PROMULGATE REGULATIONS IN THE SAME MANNER IN

WHICH THE BOARD IS AUTHORIZED AS PROVIDED IN SECTION 3303

(RELATING TO TEMPORARY REGULATIONS).

(D) ADDITIONAL PENALTY.--A PERSON WHO FAILS TO TIMELY REMIT

TO THE DEPARTMENT OR THE STATE TREASURER AMOUNTS REQUIRED UNDER

THIS PART SHALL BE LIABLE, IN ADDITION TO LIABILITY IMPOSED

ELSEWHERE IN THIS PART, 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.

(E) LIENS AND SUITS FOR TAXES.--THE PROVISIONS OF THIS PART

SHALL BE SUBJECT TO THE PROVISIONS OF SECTIONS 242 AND 243 OF

THE ACT OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM

CODE OF 1971.

§ 3309. CENTRAL CONTROL COMPUTER SYSTEM.

(A) GENERAL RULE.--TO FACILITATE THE AUDITING AND SECURITY

PROGRAMS CRITICAL TO THE INTEGRITY OF VIDEO GAMING TERMINALS IN

THIS COMMONWEALTH, THE DEPARTMENT SHALL HAVE OVERALL CONTROL OF

VIDEO GAMING TERMINALS THAT:

(1) SHALL BE LINKED, AT AN APPROPRIATE TIME TO BE

DETERMINED BY THE DEPARTMENT, TO A CENTRAL CONTROL COMPUTER

UNDER THE CONTROL OF THE DEPARTMENT AND ACCESSIBLE BY THE

BOARD TO PROVIDE AUDITING PROGRAM CAPACITY AND INDIVIDUAL

TERMINAL INFORMATION AS APPROVED BY THE DEPARTMENT.

(2) SHALL INCLUDE REAL-TIME INFORMATION RETRIEVAL AND

20170HB0271PN1942 - 548 -

TERMINAL ACTIVATION AND DISABLING PROGRAMS.

(B) SYSTEM REQUIREMENTS.--THE CENTRAL CONTROL COMPUTER

EMPLOYED BY THE DEPARTMENT SHALL PROVIDE:

(1) A FULLY OPERATIONAL STATEWIDE VIDEO GAMING TERMINAL

CONTROL SYSTEM THAT HAS THE CAPABILITY OF SUPPORTING UP TO

THE MAXIMUM NUMBER OF VIDEO GAMING TERMINALS THAT IS

PERMITTED TO BE IN OPERATION UNDER THIS PART.

(2) THE EMPLOYMENT OF A WIDELY ACCEPTED GAMING INDUSTRY

PROTOCOL TO FACILITATE A VIDEO GAMING TERMINAL MANUFACTURERS'

ABILITY TO COMMUNICATE WITH THE STATEWIDE SYSTEM.

(3) THE DELIVERY OF A SYSTEM THAT HAS THE ABILITY TO

VERIFY SOFTWARE, DETECT ALTERATIONS IN PAYOUT AND DETECT

OTHER METHODS OF FRAUD IN ALL ASPECTS OF THE OPERATION OF

VIDEO GAMING TERMINALS.

(4) THE DELIVERY OF A SYSTEM THAT HAS THE CAPABILITY TO

SUPPORT PROGRESSIVE VIDEO GAMING TERMINALS AS APPROVED BY THE

BOARD.

(5) THE DELIVERY OF A SYSTEM THAT DOES NOT ALTER THE

STATISTICAL AWARDS OF VIDEO GAMING TERMINAL GAMES AS DESIGNED

BY THE MANUFACTURER AND APPROVED BY THE BOARD.

(6) THE DELIVERY OF A SYSTEM THAT PROVIDES REDUNDANCY SO

THAT EACH COMPONENT OF THE NETWORK IS CAPABLE OF OPERATING

INDEPENDENTLY BY THE DEPARTMENT IF ANY COMPONENT OF THE

NETWORK, INCLUDING THE CENTRAL CONTROL COMPUTER, FAILS OR

CANNOT BE OPERATED FOR ANY REASON AS DETERMINED BY THE

DEPARTMENT, AND TO ASSURE THAT ALL TRANSACTIONAL DATA IS

CAPTURED AND SECURED. COSTS ASSOCIATED WITH A COMPUTER SYSTEM

REQUIRED BY THE DEPARTMENT TO OPERATE WITHIN A VIDEO GAMING

AREA, WHETHER INDEPENDENT OR AS PART OF THE CENTRAL CONTROL

COMPUTER, SHALL BE PAID BY THE TERMINAL OPERATOR LICENSEE.

20170HB0271PN1942 - 549 -

THE COMPUTER SYSTEM SHALL BE CONTROLLED BY THE DEPARTMENT AND

ACCESSIBLE TO THE BOARD.

(7) THE ABILITY TO MEET ALL REPORTING AND CONTROL

REQUIREMENTS AS PRESCRIBED BY THE BOARD AND DEPARTMENT.

(8) THE DELIVERY OF A SYSTEM THAT PROVIDES CENTRALIZED

ISSUANCE OF CASH REDEMPTION TICKETS AND FACILITATES THE

ACCEPTANCE OF THE TICKETS BY VIDEO GAMING TERMINALS AND

REDEMPTION TERMINALS.

(9) OTHER CAPABILITIES AS DETERMINED BY THE DEPARTMENT

IN CONSULTATION WITH THE BOARD.

NOT PROVIDE FOR THE MONITORING OR READING OF PERSONAL OR

FINANCIAL INFORMATION CONCERNING A PATRON OF A TERMINAL OPERATOR

LICENSEE.

(D) INITIAL ACQUISITION OF CENTRAL CONTROL COMPUTER.--

(1) NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE

CONTRARY AND IN ORDER TO FACILITATE THE PROMPT IMPLEMENTATION

OF THIS PART, INITIAL CONTRACTS ENTERED INTO BY THE

DEPARTMENT FOR A CENTRAL CONTROL COMPUTER, INCLUDING

NECESSARY COMPUTER HARDWARE, SOFTWARE, LICENSES OR RELATED

SERVICES SHALL NOT BE SUBJECT TO THE PROVISIONS OF 62 PA.C.S.

(RELATING TO PROCUREMENT).

(2) CONTRACTS MADE PURSUANT TO THE PROVISIONS OF THIS

SECTION MAY NOT EXCEED FIVE YEARS.

(E) RESOLUTION OF CONTRACT DISPUTES.--THE PROCESS SPECIFIED

IN 62 PA.C.S. CH. 17 SUBCH. B (RELATING TO PRELITIGATION

RESOLUTION OF CONTROVERSIES) SHALL BE THE SOLE MEANS OF

RESOLUTION FOR CONTROVERSIES ARISING WITH RESPECT TO CONTRACTS

EXECUTED UNDER THIS SECTION.

(F) EXISTING CENTRAL CONTROL COMPUTER SYSTEM.--THE

20170HB0271PN1942 - 550 -

DEPARTMENT, IN ITS DISCRETION, MAY ALTER OR UTILIZE THE CENTRAL

CONTROL COMPUTER SYSTEM CONTROLLED BY THE DEPARTMENT UNDER

SECTION 1323 (RELATING TO CENTRAL CONTROL COMPUTER SYSTEM) TO

FULFILL THE REQUIREMENTS OF THIS SECTION.

§ 3310. DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS OR SUCCESSOR

AGENCY.

(A) PROGRAM UPDATE.--

(1) THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS OR

SUCCESSOR AGENCY SHALL UPDATE THE COMPULSIVE AND PROBLEM

GAMBLING PROGRAM ESTABLISHED IN SECTION 1509 (RELATING TO

COMPULSIVE AND PROBLEM GAMBLING PROGRAM) TO ADDRESS PUBLIC

EDUCATION, AWARENESS AND TRAINING REGARDING COMPULSIVE AND

PROBLEM GAMBLING AND THE TREATMENT AND PREVENTION OF

COMPULSIVE AND PROBLEM GAMBLING RELATED TO VIDEO GAMING

TERMINALS.

(2) THE UPDATED GUIDELINES SHALL INCLUDE STRATEGIES FOR

THE PREVENTION OF COMPULSIVE AND PROBLEM GAMBLING RELATED TO

VIDEO GAMING TERMINALS.

(3) THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS OR

SUCCESSOR AGENCY MAY CONSULT WITH THE BOARD AND TERMINAL

OPERATOR LICENSEE TO DEVELOP THE STRATEGIES.

(B) DUTIES OF DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS OR

SUCCESSOR AGENCY.--FROM FUNDS AVAILABLE IN THE COMPULSIVE AND

PROBLEM GAMBLING TREATMENT FUND, THE DEPARTMENT OF DRUG AND

ALCOHOL PROGRAMS OR SUCCESSOR AGENCY SHALL WITH RESPECT TO VIDEO

GAMING TERMINALS:

(1) MAINTAIN ONE COMPULSIVE GAMBLERS ASSISTANCE

ORGANIZATION'S TOLL-FREE PROBLEM GAMBLING TELEPHONE NUMBER,

WHICH NUMBER SHALL BE 1-800-GAMBLER, TO PROVIDE CRISIS

COUNSELING AND REFERRAL SERVICES TO INDIVIDUALS AND FAMILIES

20170HB0271PN1942 - 551 -

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) MAINTAIN ONE COMPULSIVE GAMBLER'S ASSISTANCE

ORGANIZATION'S TELEPHONE NUMBER, WHICH SHALL BE ACCESSIBLE

VIA A FREE TEXT MESSAGE SERVICE, TO PROVIDE CRISIS COUNSELING

AND REFERRAL SERVICES TO INDIVIDUALS AND FAMILIES

EXPERIENCING DIFFICULTY AS A RESULT OF PROBLEM OR COMPULSIVE

GAMBLING.

(3) 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.

(4) AT ITS DISCRETION, CONDUCT STUDIES TO IDENTIFY

INDIVIDUALS IN THIS COMMONWEALTH WHO ARE OR ARE AT RISK OF

BECOMING PROBLEM OR COMPULSIVE GAMBLERS.

(5) PROVIDE GRANTS TO AND CONTRACT WITH SINGLE COUNTY

AUTHORITIES AND OTHER ORGANIZATIONS THAT PROVIDE SERVICES

SPECIFIED IN THIS SECTION.

(6) REIMBURSE ORGANIZATIONS FOR REASONABLE EXPENSES

INCURRED ASSISTING THE DEPARTMENT OF DRUG AND ALCOHOL

PROGRAMS WITH IMPLEMENTING THIS SECTION.

EFFECTIVE DATE OF THIS SECTION, THE DEPARTMENT 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 OR LOCAL

GOVERNMENT, INCLUDING SINGLE COUNTY AUTHORITIES AND PROVIDERS

20170HB0271PN1942 - 552 -

AND OTHER PERSONS, PUBLIC OR PRIVATE, WITH EXPERTISE IN

COMPULSIVE AND PROBLEM GAMBLING TREATMENT WITH RESPECT TO VIDEO

GAMING TERMINALS:

(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 DEPARTMENT OF DRUG AND

ALCOHOL PROGRAMS' 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.

(D) REPORT.--THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS OR

SUCCESSOR AGENCY SHALL INCLUDE IN THE REPORT REQUIRED UNDER

SECTION 1509 INFORMATION INVOLVING VIDEO GAMING TERMINALS.

CHAPTER 35

APPLICATION AND LICENSURE

SEC.

3501. GENERAL PROHIBITION.

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3502. TERMINAL OPERATOR LICENSES.

3503. (RESERVED).

3504. PRINCIPAL LICENSES.

3505. KEY EMPLOYEE LICENSES.

3506. DIVESTITURE OF DISQUALIFYING APPLICANT.

3507. SUPPLIER LICENSES.

3508. MANUFACTURER LICENSES.

3509. GAMING SERVICE PROVIDER.

3510. OCCUPATION PERMIT.

3511. ALTERNATIVE TERMINAL OPERATOR LICENSING STANDARDS.

3512. ALTERNATIVE MANUFACTURER LICENSING STANDARDS.

3513. ALTERNATIVE SUPPLIER LICENSING STANDARDS.

3514. ESTABLISHMENT LICENSES.

3515. LICENSE OR PERMIT PROHIBITION.

3516. ISSUANCE AND RENEWAL.

3517. CHANGE IN OWNERSHIP OR CONTROL OF TERMINAL OPERATOR

LICENSEE.

3518. VIDEO GAMING ACCOUNTING CONTROLS AND AUDITS.

3519. MULTIPLE LICENSES PROHIBITED.

3520. CONDITIONAL LICENSES.

§ 3501. GENERAL PROHIBITION.

NO PERSON MAY OFFER OR OTHERWISE MAKE AVAILABLE FOR PLAY IN

THIS COMMONWEALTH A VIDEO GAMING TERMINAL UNLESS THE PERSON IS

LICENSED UNDER THIS PART AND ACCORDING TO REGULATIONS

PROMULGATED BY THE BOARD UNDER THIS PART.

§ 3502. TERMINAL OPERATOR LICENSES.

(A) GENERAL REQUIREMENTS.--AN APPLICATION FOR A TERMINAL

OPERATOR LICENSE SHALL BE ON THE FORM REQUIRED BY THE BOARD AND

SHALL INCLUDE, AT A MINIMUM, ALL OF THE FOLLOWING:

(1) THE NAME, ADDRESS AND PHOTOGRAPH OF THE APPLICANT

20170HB0271PN1942 - 554 -

AND OF ALL DIRECTORS AND OWNERS AND KEY EMPLOYEES AND THEIR

POSITIONS WITHIN THE CORPORATION OR ORGANIZATION, AS WELL AS

ADDITIONAL FINANCIAL INFORMATION REQUIRED BY THE BOARD.

(2) A CURRENT TAX LIEN CERTIFICATE ISSUED BY THE

DEPARTMENT.

(3) THE DETAILS OF ANY GAMING LICENSE APPLIED FOR,

GRANTED TO OR DENIED TO THE APPLICANT BY ANOTHER JURISDICTION

WHERE THE FORM OF GAMING IS LEGAL AND THE CONSENT FOR THE

BOARD TO ACQUIRE COPIES OF THE APPLICATION SUBMITTED OR

LICENSE ISSUED IN CONNECTION WITH THE APPLICATION.

(4) THE DETAILS OF ANY LOAN OBTAINED FROM A FINANCIAL

INSTITUTION OR NOT OBTAINED FROM A FINANCIAL INSTITUTION.

(5) THE CONSENT TO CONDUCT A BACKGROUND INVESTIGATION BY

THE BOARD, THE SCOPE OF WHICH INVESTIGATION SHALL BE

DETERMINED BY THE BOARD IN ITS DISCRETION CONSISTENT WITH THE

PROVISIONS OF THIS PART, AND A RELEASE SIGNED BY ALL PERSONS

SUBJECT TO THE INVESTIGATION OF ALL INFORMATION REQUIRED TO

COMPLETE THE INVESTIGATION.

(6) THE DETAILS OF THE APPLICANT'S DIVERSITY PLAN TO

ASSURE THAT ALL PERSONS ARE ACCORDED EQUALITY OF OPPORTUNITY

IN EMPLOYMENT AND CONTRACTING BY THE APPLICANT, ITS

CONTRACTORS, SUBCONTRACTORS, ASSIGNEES, LESSEES, AGENTS,

VENDORS AND SUPPLIERS.

(7) ANY OTHER INFORMATION DETERMINED TO BE APPROPRIATE

BY THE BOARD.

(B) CHARACTER REQUIREMENTS.--AN APPLICATION FOR A TERMINAL

OPERATOR LICENSE SHALL INCLUDE SUCH INFORMATION, DOCUMENTATION

AND ASSURANCES AS MAY BE REQUIRED TO ESTABLISH BY CLEAR AND

CONVINCING EVIDENCE OF THE APPLICANT'S SUITABILITY, INCLUDING

GOOD CHARACTER, HONESTY AND INTEGRITY. THE APPLICATION SHALL

20170HB0271PN1942 - 555 -

INCLUDE, WITHOUT LIMITATION, INFORMATION PERTAINING TO FAMILY,

HABITS, CHARACTER, REPUTATION, CRIMINAL HISTORY BACKGROUND,

BUSINESS ACTIVITIES, FINANCIAL AFFAIRS AND BUSINESS,

PROFESSIONAL AND PERSONAL ASSOCIATES, COVERING AT LEAST THE 10-

YEAR PERIOD IMMEDIATELY PRECEDING THE FILING DATE OF THE

APPLICATION.

ANY CIVIL JUDGMENT OBTAINED AGAINST THE APPLICANT PERTAINING TO

LAWS OF THE FEDERAL GOVERNMENT, THIS COMMONWEALTH OR ANOTHER

STATE, JURISDICTION, PROVINCE OR COUNTRY.

(D) (RESERVED).

(E) (RESERVED).

(F) ADDITIONAL ELIGIBILITY REQUIREMENTS.--IN ORDER TO BE

ELIGIBLE FOR A TERMINAL OPERATOR LICENSE UNDER THIS PART, THE

PRINCIPALS AND KEY EMPLOYEES OF THE APPLICANT MUST OBTAIN A

LICENSE TO MEET THE CHARACTER REQUIREMENTS OF THIS SECTION OR

OTHER ELIGIBILITY REQUIREMENTS ESTABLISHED BY THE BOARD.

(G) CLASSIFICATION SYSTEM.--THE BOARD SHALL DEVELOP A

CLASSIFICATION SYSTEM FOR OTHER AGENTS, EMPLOYEES OR PERSONS WHO

DIRECTLY OR INDIRECTLY HOLD OR ARE DEEMED TO BE HOLDING DEBT OR

EQUITY SECURITIES OR OTHER FINANCIAL INTEREST IN THE APPLICANT

AND FOR OTHER PERSONS THAT THE BOARD CONSIDERS APPROPRIATE FOR

REVIEW UNDER THIS SECTION.

(H) RELATED ENTITIES.--

(1) EXCEPT AS PROVIDED IN PARAGRAPH (2), NO PERSON SHALL

BE ELIGIBLE TO RECEIVE A TERMINAL OPERATOR LICENSE UNLESS THE

PRINCIPALS AND KEY EMPLOYEES OF EACH INTERMEDIARY OR HOLDING

COMPANY OF THE PERSON MEET THE REQUIREMENTS OF SUBSECTION

(F).

(2) THE BOARD MAY REQUIRE THAT LENDERS AND UNDERWRITERS

20170HB0271PN1942 - 556 -

OF INTERMEDIARIES, SUBSIDIARIES OR HOLDING COMPANIES OF A

TERMINAL OPERATOR LICENSE APPLICANT MEET THE REQUIREMENTS OF

SUBSECTION (F) IF THE BOARD DETERMINES THAT THE SUITABILITY

OF A LENDER OR UNDERWRITER IS AT ISSUE AND NECESSARY TO

CONSIDER A PENDING APPLICATION FOR A TERMINAL OPERATOR

LICENSE.

(I) REVOCABLE PRIVILEGE.--THE ISSUANCE OR RENEWAL OF A

LICENSE OR OTHER AUTHORIZATION BY THE BOARD UNDER THIS SECTION

SHALL BE A REVOCABLE PRIVILEGE.

(J) WAIVER FOR PUBLICLY TRADED CORPORATIONS.--THE BOARD MAY

WAIVE THE REQUIREMENTS OF SUBSECTION (F) FOR A PERSON DIRECTLY

OR INDIRECTLY HOLDING OWNERSHIP OF SECURITIES IN A PUBLICLY

TRADED CORPORATION IF THE BOARD DETERMINES THAT THE HOLDER OF

THE SECURITIES DOES NOT HAVE THE ABILITY TO CONTROL THE

CORPORATION OR ELECT ONE OR MORE DIRECTORS THEREOF.

(K) (RESERVED).

(L) ONGOING DUTY.--A PERSON APPLYING FOR A LICENSE OR OTHER

AUTHORIZATION UNDER THIS PART SHALL CONTINUE TO PROVIDE

INFORMATION REQUIRED BY THE BOARD OR THE BUREAU AND COOPERATE IN

ANY INQUIRY OR INVESTIGATION.

(M) CRIMINAL HISTORY RECORD CHECK.--THE BOARD MAY CONDUCT A

CRIMINAL HISTORY RECORD CHECK ON A PERSON FOR WHOM A WAIVER IS

GRANTED UNDER THIS SECTION.

(N) APPLICANT FINANCIAL INFORMATION.--

(1) THE BOARD SHALL REQUIRE AN APPLICANT FOR A TERMINAL

OPERATOR LICENSE TO PRODUCE THE INFORMATION, DOCUMENTATION

AND ASSURANCES CONCERNING FINANCIAL BACKGROUND AND RESOURCES

AS THE BOARD DEEMS NECESSARY TO ESTABLISH BY CLEAR AND

CONVINCING EVIDENCE THE FINANCIAL STABILITY, INTEGRITY AND

RESPONSIBILITY OF THE APPLICANT, ITS AFFILIATE, INTERMEDIARY,

20170HB0271PN1942 - 557 -

SUBSIDIARY OR HOLDING COMPANY, INCLUDING, BUT NOT LIMITED TO,

BANK REFERENCES, BUSINESS AND PERSONAL INCOME AND

DISBURSEMENT SCHEDULES, TAX RETURNS AND OTHER REPORTS FILED

WITH GOVERNMENTAL AGENCIES AND BUSINESS AND PERSONAL

ACCOUNTING AND CHECK RECORDS AND LEDGERS.

(2) AN APPLICANT SHALL IN WRITING AUTHORIZE THE

EXAMINATION OF ALL BANK ACCOUNTS AND RECORDS AS MAY BE DEEMED

NECESSARY BY THE BOARD.

(O) FINANCIAL BACKER INFORMATION.--

(1) THE BOARD SHALL REQUIRE AN APPLICANT FOR A TERMINAL

OPERATOR LICENSE TO PRODUCE THE INFORMATION, DOCUMENTATION

AND ASSURANCES AS MAY BE NECESSARY TO ESTABLISH BY CLEAR AND

CONVINCING EVIDENCE THE INTEGRITY OF ALL FINANCIAL BACKERS,

INVESTORS, MORTGAGEES, BONDHOLDERS AND HOLDERS OF INDENTURES,

NOTES OR OTHER EVIDENCES OF INDEBTEDNESS, EITHER IN EFFECT OR

PROPOSED.

(2) THE BOARD MAY WAIVE THE QUALIFICATION REQUIREMENTS

FOR BANKING OR LENDING INSTITUTION AND INSTITUTIONAL

INVESTORS.

(3) A BANKING OR LENDING INSTITUTION OR INSTITUTIONAL

INVESTOR SHALL PRODUCE FOR THE BOARD UPON REQUEST ANY

DOCUMENT OR INFORMATION THAT BEARS RELATION TO THE PROPOSAL

SUBMITTED BY THE APPLICANT OR APPLICANTS.

(4) THE INTEGRITY OF THE FINANCIAL SOURCES SHALL BE

JUDGED UPON THE SAME STANDARDS AS THE APPLICANT. ANY SUCH

PERSON OR ENTITY SHALL PRODUCE FOR THE BOARD UPON REQUEST ANY

DOCUMENT OR INFORMATION WHICH BEARS ANY RELATION TO THE

APPLICATION.

(5) THE APPLICANT SHALL PRODUCE WHATEVER INFORMATION,

DOCUMENTATION OR ASSURANCES THE BOARD REQUIRES TO ESTABLISH

20170HB0271PN1942 - 558 -

BY CLEAR AND CONVINCING EVIDENCE THE ADEQUACY OF FINANCIAL

RESOURCES.

(P) APPLICANT'S BUSINESS EXPERIENCE.--

(1) THE BOARD SHALL REQUIRE AN APPLICANT FOR A TERMINAL

OPERATOR LICENSE TO PRODUCE THE INFORMATION, DOCUMENTATION

AND ASSURANCES AS THE BOARD MAY REQUIRE TO ESTABLISH BY CLEAR

AND CONVINCING EVIDENCE THAT THE APPLICANT HAS SUFFICIENT

BUSINESS ABILITY AND EXPERIENCE TO CREATE AND MAINTAIN A

SUCCESSFUL, EFFICIENT OPERATION.

(2) AN APPLICANT SHALL PRODUCE THE NAMES OF ALL PROPOSED

KEY EMPLOYEES AND A DESCRIPTION OF THEIR RESPECTIVE OR

PROPOSED RESPONSIBILITIES AS THEY BECOME KNOWN.

(Q) ADDITIONAL INFORMATION.--IN ADDITION TO OTHER

INFORMATION REQUIRED BY THIS PART, A PERSON APPLYING FOR A

TERMINAL OPERATOR LICENSE SHALL PROVIDE THE FOLLOWING

INFORMATION:

(1) THE ORGANIZATION, FINANCIAL STRUCTURE AND NATURE OF

ALL BUSINESSES OPERATED BY THE PERSON, INCLUDING ANY

AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANIES, THE

NAMES AND PERSONAL EMPLOYMENT AND CRIMINAL HISTORIES OF ALL

OFFICERS, DIRECTORS AND KEY EMPLOYEES OF THE CORPORATION; THE

NAMES OF ALL HOLDING, INTERMEDIARY, AFFILIATE AND SUBSIDIARY

COMPANIES OF THE CORPORATION; AND THE ORGANIZATION, FINANCIAL

STRUCTURE AND NATURE OF ALL BUSINESSES OPERATED BY SUCH

HOLDING, INTERMEDIARY AND SUBSIDIARY COMPANIES AS THE BOARD

MAY REQUIRE, INCLUDING NAMES AND PERSONAL EMPLOYMENT AND

CRIMINAL HISTORIES OF SUCH OFFICERS, DIRECTORS AND PRINCIPAL

EMPLOYEES OF SUCH CORPORATIONS AND COMPANIES AS THE BOARD MAY

REQUIRE.

(2) THE EXTENT OF SECURITIES HELD IN THE CORPORATION BY

20170HB0271PN1942 - 559 -

ALL OFFICERS, DIRECTORS AND UNDERWRITERS AND THEIR

REMUNERATION IN THE FORM OF SALARY, WAGES, FEES OR OTHERWISE.

(3) COPIES OF ALL MANAGEMENT AND SERVICE CONTRACTS.

(R) REVIEW AND APPROVAL.--UPON BEING SATISFIED THAT THE

REQUIREMENTS OF SUBSECTIONS (A), (B), (C), (D), (E), (F), (G),

(H), (I), (J), (K), (L), (M), (N), (O), (P) AND (Q) HAVE BEEN

MET, THE BOARD MAY APPROVE THE APPLICATION AND ISSUE THE

APPLICANT A TERMINAL OPERATOR LICENSE CONSISTENT WITH ALL OF THE

FOLLOWING:

(1) (I) THE LICENSE SHALL BE FOR A PERIOD OF FIVE

YEARS.

(II) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO

RELIEVE A LICENSEE OF THE AFFIRMATIVE DUTY TO NOTIFY THE

BOARD OF ANY CHANGES RELATING TO THE STATUS OF ITS

LICENSE OR TO ANY INFORMATION CONTAINED IN THE

APPLICATION MATERIALS ON FILE WITH THE BOARD.

(2) THE LICENSE SHALL BE NONTRANSFERABLE.

(3) ANY OTHER CONDITION ESTABLISHED BY THE BOARD.

(S) RENEWAL.--

(1) AT LEAST SIX MONTHS PRIOR TO EXPIRATION OF A

TERMINAL OPERATOR LICENSE, THE TERMINAL OPERATOR LICENSEE

SEEKING RENEWAL OF ITS LICENSE SHALL SUBMIT A RENEWAL

APPLICATION TO THE BOARD.

(2) IF THE RENEWAL APPLICATION SATISFIES THE

REQUIREMENTS OF SUBSECTIONS (A), (B), (C), (D), (E), (F),

(G), (H), (I), (J), (K), (L), (M), (N), (O), (P) AND (Q), THE

BOARD MAY RENEW THE LICENSEE'S TERMINAL OPERATOR LICENSE.

(3) IF THE BOARD RECEIVES A COMPLETE RENEWAL APPLICATION

BUT FAILS TO ACT UPON THE RENEWAL APPLICATION PRIOR TO THE

EXPIRATION OF THE TERMINAL OPERATOR LICENSE, THE TERMINAL

20170HB0271PN1942 - 560 -

OPERATOR LICENSE SHALL CONTINUE IN EFFECT UNTIL ACTED UPON BY

THE BOARD.

§ 3503. (RESERVED).

§ 3504. PRINCIPAL LICENSES.

(A) LICENSE REQUIRED.--ALL PRINCIPALS SHALL OBTAIN A

PRINCIPAL LICENSE FROM THE BOARD.

(B) APPLICATION.--A PRINCIPAL LICENSE APPLICATION SHALL BE

IN A FORM PRESCRIBED BY THE BOARD AND SHALL INCLUDE THE

FOLLOWING:

(1) VERIFICATION OF STATUS AS A PRINCIPAL FROM A

TERMINAL OPERATOR LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER

LICENSEE.

(2) A DESCRIPTION OF RESPONSIBILITIES AS A PRINCIPAL.

(3) ALL RELEASES NECESSARY TO OBTAIN INFORMATION FROM

GOVERNMENTAL AGENCIES, EMPLOYERS AND OTHER ORGANIZATIONS.

(4) DETAILS RELATING TO A SIMILAR LICENSE, PERMIT OR

OTHER AUTHORIZATION OBTAINED IN ANOTHER JURISDICTION.

(5) ADDITIONAL INFORMATION REQUIRED BY THE BOARD.

BACKGROUND INVESTIGATION, THE BOARD MAY ISSUE A PRINCIPAL

LICENSE IF THE APPLICANT HAS PROVEN BY CLEAR AND CONVINCING

EVIDENCE THAT THE APPLICANT IS A PERSON OF GOOD CHARACTER,

HONESTY AND INTEGRITY AND IS ELIGIBLE AND SUITABLE TO BE

LICENSED AS A PRINCIPAL.

(D) NONTRANSFERABILITY.--A LICENSE ISSUED UNDER THIS SECTION

SHALL BE NONTRANSFERABLE.

(E) PRINCIPALS.--AN INDIVIDUAL WHO RECEIVES A PRINCIPAL

LICENSE NEED NOT OBTAIN A KEY EMPLOYEE LICENSE.

§ 3505. KEY EMPLOYEE LICENSES.

(A) LICENSE REQUIRED.--ALL KEY EMPLOYEES SHALL OBTAIN A KEY

20170HB0271PN1942 - 561 -

EMPLOYEE LICENSE FROM THE BOARD.

(B) APPLICATION.--A KEY EMPLOYEE LICENSE APPLICATION SHALL

BE IN A FORM PRESCRIBED BY THE BOARD AND SHALL INCLUDE THE

FOLLOWING:

(1) VERIFICATION OF STATUS AS A KEY EMPLOYEE FROM A

TERMINAL OPERATOR LICENSEE, MANUFACTURER LICENSEE OR SUPPLIER

LICENSEE.

(2) A DESCRIPTION OF EMPLOYMENT RESPONSIBILITIES.

(3) ALL RELEASES NECESSARY TO OBTAIN INFORMATION FROM

GOVERNMENTAL AGENCIES, EMPLOYERS AND OTHER ORGANIZATIONS.

(4) DETAILS RELATING TO A SIMILAR LICENSE OR OTHER

AUTHORIZATION OBTAINED IN ANOTHER JURISDICTION.

(5) ADDITIONAL INFORMATION REQUIRED BY THE BOARD.

BACKGROUND INVESTIGATION, THE BOARD MAY ISSUE A KEY EMPLOYEE

LICENSE IF THE APPLICANT HAS PROVEN BY CLEAR AND CONVINCING

EVIDENCE THAT THE APPLICANT IS A PERSON OF GOOD CHARACTER,

HONESTY AND INTEGRITY AND IS ELIGIBLE AND SUITABLE TO BE

LICENSED AS A KEY EMPLOYEE.

(D) NONTRANSFERABILITY.--A LICENSE ISSUED UNDER THIS SECTION

SHALL BE NONTRANSFERABLE.

§ 3506. DIVESTITURE OF DISQUALIFYING APPLICANT.

(A) BOARD POWER TO REQUIRE.--

(1) IN THE EVENT THAT ANY ESTABLISHMENT LICENSE

APPLICATION, TERMINAL OPERATOR LICENSE APPLICATION, SUPPLIER

LICENSE APPLICATION OR MANUFACTURER LICENSE APPLICATION IS

NOT APPROVED BY THE BOARD BASED ON A FINDING THAT AN

INDIVIDUAL WHO IS A PRINCIPAL OR HAS AN INTEREST IN THE

PERSON APPLYING FOR THE LICENSE DOES NOT MEET THE CHARACTER

REQUIREMENTS OF THIS PART OR ANY OF THE ELIGIBILITY

20170HB0271PN1942 - 562 -

REQUIREMENTS UNDER THIS PART OR A PERSON WHO PURCHASES A

CONTROLLING INTEREST IN THE APPLICANT IN VIOLATION OF SECTION

3517 (RELATING TO CHANGE IN OWNERSHIP OR CONTROL OF TERMINAL

OPERATOR LICENSEE), THE BOARD MAY AFFORD THE INDIVIDUAL THE

OPPORTUNITY TO COMPLETELY DIVEST HIS INTEREST IN THE PERSON,

ITS AFFILIATE, INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY

SEEKING THE LICENSE AND, AFTER SUCH DIVESTITURE, RECONSIDER

THE PERSON'S OR APPLICANT'S SUITABILITY FOR LICENSURE IN AN

EXPEDITED PROCEEDING AND MAY, AFTER SUCH PROCEEDING, ISSUE

THE PERSON OR APPLICANT A TERMINAL OPERATOR LICENSE.

(2) THE BOARD SHALL APPROVE THE TERMS AND CONDITIONS OF

ANY DIVESTITURE UNDER THIS SECTION.

(B) LIMITATION.--UNDER NO CIRCUMSTANCES SHALL ANY

DIVESTITURE BE APPROVED BY THE BOARD IF THE COMPENSATION FOR THE

DIVESTED INTEREST EXCEEDS THE COST OF THE INTEREST.

§ 3507. SUPPLIER LICENSES.

(A) APPLICATION.--

(1) A MANUFACTURER THAT ELECTS TO CONTRACT WITH A

SUPPLIER UNDER SECTION 3508 (RELATING TO MANUFACTURER

LICENSES) SHALL ENSURE THAT THE SUPPLIER IS APPROPRIATELY

LICENSED UNDER THIS SECTION.

(2) A PERSON SEEKING TO PROVIDE VIDEO GAMING TERMINALS,

REDEMPTION TERMINALS OR ASSOCIATED EQUIPMENT TO A TERMINAL

OPERATOR LICENSEE WITHIN THIS COMMONWEALTH THROUGH A CONTRACT

WITH A LICENSED MANUFACTURER MUST APPLY TO THE BOARD FOR THE

APPROPRIATE SUPPLIER LICENSE.

(B) REQUIREMENTS.--AN APPLICATION FOR A SUPPLIER LICENSE

SHALL BE ON THE FORM REQUIRED BY THE BOARD AND SHALL INCLUDE ALL

OF THE FOLLOWING:

(1) THE NAME AND BUSINESS ADDRESS OF THE APPLICANT AND

20170HB0271PN1942 - 563 -

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 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 TERMINAL OPERATOR LICENSEES.

(3) PROOF THAT THE APPLICANT HAS OR WILL ESTABLISH A

PLACE OF BUSINESS IN THIS COMMONWEALTH. A SUPPLIER LICENSEE

SHALL MAINTAIN ITS PLACE OF BUSINESS IN THIS COMMONWEALTH TO

REMAIN ELIGIBLE FOR LICENSURE.

(4) THE CONSENT TO A BACKGROUND INVESTIGATION BY THE

BUREAU OF THE APPLICANT, ITS PRINCIPALS AND KEY EMPLOYEES OR

OTHER PERSONS REQUIRED BY THE BOARD AND A RELEASE TO OBTAIN

THE INFORMATION NECESSARY FOR THE COMPLETION OF THE

BACKGROUND INVESTIGATION.

(5) THE DETAILS OF ANY SUPPLIER LICENSE ISSUED BY THE

BOARD TO THE APPLICANT UNDER SECTION 1317 (RELATING TO

SUPPLIER LICENSES), IF APPLICABLE.

(6) THE DETAILS OF ANY EQUIVALENT LICENSE GRANTED OR

DENIED BY OTHER JURISDICTIONS WHERE GAMING ACTIVITIES AS

AUTHORIZED BY THIS PART ARE PERMITTED.

(7) THE TYPE OF GOODS AND SERVICES TO BE SUPPLIED AND

WHETHER THOSE GOODS AND SERVICES WILL BE PROVIDED THROUGH

PURCHASE, LEASE, CONTRACT OR OTHERWISE.

(8) OTHER INFORMATION DETERMINED BY THE BOARD TO BE

APPROPRIATE.

REQUIREMENTS OF SUBSECTION (B) HAVE BEEN MET, THE BOARD MAY

20170HB0271PN1942 - 564 -

APPROVE THE APPLICATION AND ISSUE THE APPLICANT A SUPPLIER

LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:

(1) (I) THE LICENSE SHALL BE FOR A PERIOD OF FIVE

YEARS.

(II) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO

RELIEVE A LICENSEE OF THE AFFIRMATIVE DUTY TO NOTIFY THE

BOARD OF A CHANGE RELATING TO THE STATUS OF ITS LICENSE

OR TO INFORMATION CONTAINED IN THE APPLICATION MATERIALS

ON FILE WITH THE BOARD.

(2) THE LICENSE SHALL BE NONTRANSFERABLE.

(3) OTHER CONDITIONS ESTABLISHED BY THE BOARD.

(D) RENEWAL.--

(1) AT LEAST SIX MONTHS PRIOR TO EXPIRATION OF A

SUPPLIER LICENSE, THE SUPPLIER LICENSEE SEEKING RENEWAL OF

ITS LICENSE SHALL SUBMIT A RENEWAL APPLICATION TO THE BOARD.

(2) IF THE RENEWAL APPLICATION SATISFIES THE

REQUIREMENTS OF SUBSECTION (B), THE BOARD MAY RENEW THE

LICENSEE'S SUPPLIER LICENSE.

(3) IF THE BOARD RECEIVES A COMPLETE RENEWAL APPLICATION

BUT FAILS TO ACT UPON THE RENEWAL APPLICATION PRIOR TO THE

EXPIRATION OF THE SUPPLIER LICENSE, THE SUPPLIER LICENSE

SHALL CONTINUE IN EFFECT UNTIL ACTED UPON BY THE BOARD.

§ 3508. MANUFACTURER LICENSES.

(A) APPLICATION.--A PERSON SEEKING TO MANUFACTURE VIDEO

GAMING TERMINALS, REDEMPTION TERMINALS AND ASSOCIATED EQUIPMENT

FOR USE IN THIS COMMONWEALTH MUST 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 AND SHALL INCLUDE ALL

OF THE FOLLOWING:

20170HB0271PN1942 - 565 -

(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 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 TERMINAL OPERATOR LICENSEES.

(3) THE CONSENT TO A BACKGROUND INVESTIGATION BY THE

BUREAU OF THE APPLICANT, ITS PRINCIPALS, ITS KEY EMPLOYEES,

ITS INTERMEDIARIES, ITS SUBSIDIARIES OR OTHER PERSONS

REQUIRED BY THE BOARD AND A RELEASE TO OBTAIN THE 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.

(5) THE DETAILS OF ANY MANUFACTURER LICENSE ISSUED BY

THE BOARD TO THE APPLICANT UNDER SECTION 1317.1 (RELATING TO

MANUFACTURER LICENSES), IF APPLICABLE.

(6) THE TYPE OF VIDEO GAMING TERMINALS, REDEMPTION

TERMINALS OR ASSOCIATED EQUIPMENT TO BE MANUFACTURED OR

REPAIRED.

(7) OTHER INFORMATION DETERMINED BY THE BOARD TO BE

APPROPRIATE.

REQUIREMENTS OF SUBSECTION (B) HAVE BEEN MET, THE BOARD MAY

APPROVE THE APPLICATION AND GRANT THE APPLICANT A MANUFACTURER

LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:

(1) (I) THE LICENSE SHALL BE FOR A PERIOD OF FIVE

20170HB0271PN1942 - 566 -

YEARS.

(II) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO

RELIEVE THE LICENSEE OF THE AFFIRMATIVE DUTY TO NOTIFY

THE BOARD OF A CHANGE RELATING TO THE STATUS OF ITS

LICENSE OR TO OTHER INFORMATION CONTAINED IN APPLICATION

MATERIALS ON FILE WITH THE BOARD.

(2) THE LICENSE SHALL BE NONTRANSFERABLE.

(3) OTHER CONDITIONS ESTABLISHED BY THE BOARD.

(D) RENEWAL.--

(1) AT LEAST SIX MONTHS PRIOR TO EXPIRATION OF A

MANUFACTURER LICENSE, THE MANUFACTURER LICENSEE SEEKING

RENEWAL OF ITS LICENSE SHALL SUBMIT A RENEWAL APPLICATION

ACCOMPANIED BY THE RENEWAL FEE TO THE BOARD.

(2) IF THE RENEWAL APPLICATION SATISFIES THE

REQUIREMENTS OF SUBSECTION (B), THE BOARD MAY RENEW THE

LICENSEE'S MANUFACTURER LICENSE.

(3) IF THE BOARD RECEIVES A COMPLETE RENEWAL APPLICATION

BUT FAILS TO ACT UPON THE RENEWAL APPLICATION PRIOR TO THE

EXPIRATION OF THE MANUFACTURER LICENSE, THE MANUFACTURER

LICENSE SHALL CONTINUE IN EFFECT UNTIL ACTED UPON BY THE

BOARD.

(E) AUTHORITY.--THE FOLLOWING SHALL APPLY TO A LICENSED

MANUFACTURER:

(1) A MANUFACTURER OR ITS DESIGNEE, AS LICENSED BY THE

BOARD, MAY SUPPLY OR REPAIR A VIDEO GAMING TERMINAL,

REDEMPTION TERMINAL OR ASSOCIATED EQUIPMENT MANUFACTURED BY

THE MANUFACTURER, PROVIDED THE MANUFACTURER HOLDS THE

APPROPRIATE MANUFACTURER LICENSE.

(2) A MANUFACTURER OF VIDEO GAMING TERMINALS OR

REDEMPTION TERMINALS MAY CONTRACT WITH A SUPPLIER UNDER

20170HB0271PN1942 - 567 -

SECTION 3507 (RELATING TO SUPPLIER LICENSES) TO PROVIDE VIDEO

GAMING TERMINALS, REDEMPTION TERMINALS OR ASSOCIATED

EQUIPMENT TO A TERMINAL OPERATOR LICENSEE WITHIN THIS

COMMONWEALTH, PROVIDED THE SUPPLIER IS LICENSED TO SUPPLY

VIDEO GAMING TERMINALS, REDEMPTION TERMINALS OR ASSOCIATED

EQUIPMENT.

(F) PROHIBITIONS.--

(1) NO PERSON MAY MANUFACTURE VIDEO GAMING TERMINALS,

REDEMPTION TERMINALS OR ASSOCIATED EQUIPMENT FOR USE WITHIN

THIS COMMONWEALTH BY A TERMINAL OPERATOR LICENSEE UNLESS THE

PERSON HAS BEEN ISSUED THE APPROPRIATE MANUFACTURER LICENSE

UNDER THIS SECTION.

(2) NO PERSON ISSUED A LICENSE UNDER THIS SECTION MAY

APPLY FOR OR BE ISSUED A TERMINAL OPERATOR LICENSE UNDER

SECTION 3502 (RELATING TO TERMINAL OPERATOR LICENSES) OR

ESTABLISHMENT LICENSE UNDER SECTION 3514 (RELATING TO

ESTABLISHMENT LICENSES).

§ 3509. GAMING SERVICE PROVIDER.

(A) DEVELOPMENT OF CLASSIFICATION SYSTEM.--THE BOARD SHALL

DEVELOP A CLASSIFICATION SYSTEM GOVERNING THE CERTIFICATION,

REGISTRATION AND REGULATION OF GAMING SERVICE PROVIDERS AND

INDIVIDUALS AND ENTITIES ASSOCIATED WITH THEM. THE

CLASSIFICATION SYSTEM SHALL BE BASED UPON THE FOLLOWING:

(1) WHETHER THE EMPLOYEES OF THE GAMING SERVICE PROVIDER

WILL HAVE ACCESS TO THE VIDEO GAMING AREA OF AN ESTABLISHMENT

OR THE VIDEO GAMING TERMINALS OR REDEMPTION TERMINALS PRIOR

TO OR AFTER INSTALLATION.

(2) WHETHER THE GOODS OR SERVICES PROVIDED OR TO BE

PROVIDED BY THE GAMING SERVICE PROVIDER WOULD IMPACT THE

INTEGRITY OF VIDEO GAMING TERMINALS, REDEMPTION TERMINALS OR

20170HB0271PN1942 - 568 -

THE CONDUCT OF VIDEO GAMING.

(B) AUTHORITY TO EXEMPT.--THE BOARD MAY EXEMPT A PERSON OR

TYPE OF BUSINESS FROM THE REQUIREMENTS OF THIS SECTION IF THE

BOARD DETERMINES:

(1) THE PERSON OR TYPE OF BUSINESS IS REGULATED BY AN

AGENCY OF THE FEDERAL GOVERNMENT, AN AGENCY OF THE

COMMONWEALTH OR THE PENNSYLVANIA SUPREME COURT; OR

(2) THE REGULATION OF THE PERSON OR TYPE OF BUSINESS IS

DETERMINED NOT TO BE NECESSARY IN ORDER TO PROTECT THE PUBLIC

INTEREST OR THE INTEGRITY OF GAMING.

PROVIDER SHALL HAVE A CONTINUING DUTY TO:

(1) PROVIDE ALL INFORMATION, DOCUMENTATION AND

ASSURANCES AS THE BOARD MAY REQUIRE.

(2) COOPERATE WITH THE BOARD IN INVESTIGATIONS, HEARINGS

AND ENFORCEMENT AND DISCIPLINARY ACTIONS.

(3) COMPLY WITH ALL CONDITIONS, RESTRICTIONS,

REQUIREMENTS, ORDERS AND RULINGS OF THE BOARD IN ACCORDANCE

WITH THIS PART.

(4) REPORT A CHANGE IN CIRCUMSTANCES THAT MAY RENDER THE

GAMING SERVICE PROVIDER INELIGIBLE, UNQUALIFIED OR UNSUITABLE

FOR CONTINUED REGISTRATION OR CERTIFICATION.

(D) REQUIREMENT FOR PERMIT.--THE BOARD MAY REQUIRE EMPLOYEES

OF A GAMING SERVICE PROVIDER TO OBTAIN A PERMIT OR OTHER

AUTHORIZATION IF, AFTER AN ANALYSIS OF DUTIES, RESPONSIBILITIES

AND FUNCTIONS, THE BOARD DETERMINES THAT A PERMIT OR OTHER

AUTHORIZATION IS NECESSARY TO PROTECT THE INTEGRITY OF GAMING.

(E) INTERIM AUTHORIZATION.--THE BOARD OR A DESIGNATED

EMPLOYEE OF THE BOARD MAY PERMIT A GAMING SERVICE PROVIDER

APPLICANT TO ENGAGE IN BUSINESS WITH AN APPLICANT FOR A TERMINAL

20170HB0271PN1942 - 569 -

OPERATOR LICENSE OR A TERMINAL OPERATOR LICENSEE PRIOR TO

APPROVAL OF THE GAMING SERVICE PROVIDER APPLICATION IF THE

FOLLOWING CRITERIA HAVE BEEN SATISFIED:

(1) A COMPLETED APPLICATION HAS BEEN FILED WITH THE

BOARD BY THE GAMING SERVICE PROVIDER.

(2) THE TERMINAL OPERATOR LICENSE APPLICANT OR TERMINAL

OPERATOR LICENSEE CONTRACTING OR DOING BUSINESS WITH THE

GAMING SERVICE PROVIDER CERTIFIES THAT IT HAS PERFORMED DUE

DILIGENCE ON THE GAMING SERVICE PROVIDER AND BELIEVES THAT

THE APPLICANT MEETS THE QUALIFICATION TO BE A GAMING SERVICE

PROVIDER PURSUANT TO THIS SECTION.

(3) THE GAMING SERVICE PROVIDER APPLICANT AGREES IN

WRITING THAT THE GRANT OF INTERIM AUTHORIZATION TO CONDUCT

BUSINESS PRIOR TO BOARD APPROVAL OF THE APPLICATION DOES NOT

CREATE A RIGHT TO CONTINUE TO ENGAGE IN BUSINESS IF THE BOARD

DETERMINES THAT THE APPLICANT IS NOT SUITABLE OR CONTINUED

AUTHORIZATION IS NOT IN THE PUBLIC INTEREST.

(F) CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE

CONSTRUED TO PROHIBIT THE BOARD FROM RESCINDING A GRANT OF

INTERIM AUTHORIZATION IF, AT ANY TIME, THE SUITABILITY OF THE

PERSON SUBJECT TO INTERIM AUTHORIZATION IS AT ISSUE OR IF THE

PERSON FAILS TO COOPERATE WITH THE BOARD, THE BUREAU OR AN AGENT

OF THE BOARD OR BUREAU.

(G) GAMING SERVICE PROVIDER LISTS.--

(1) THE BOARD SHALL:

(I) DEVELOP AND MAINTAIN A LIST OF APPROVED GAMING

SERVICE PROVIDERS WHO ARE AUTHORIZED TO PROVIDE GOODS OR

SERVICES WHETHER UNDER A GRANT OF INTERIM OR CONTINUED

AUTHORIZATION.

(II) DEVELOP AND MAINTAIN A LIST OF PROHIBITED

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GAMING SERVICE PROVIDERS.

(2) AN APPLICANT FOR A TERMINAL OPERATOR LICENSE OR A

TERMINAL OPERATOR LICENSEE MAY NOT ENTER INTO AN AGREEMENT OR

ENGAGE IN BUSINESS WITH A GAMING SERVICE PROVIDER LISTED ON

THE PROHIBITED GAMING SERVICE PROVIDER LIST.

(H) EMERGENCY AUTHORIZATION.--

(1) A TERMINAL OPERATOR LICENSEE MAY UTILIZE A GAMING

SERVICE PROVIDER THAT HAS NOT BEEN APPROVED BY THE BOARD WHEN

A THREAT TO PUBLIC HEALTH, WELFARE OR SAFETY EXISTS OR

CIRCUMSTANCES OUTSIDE THE CONTROL OF THE TERMINAL OPERATOR

LICENSEE REQUIRE IMMEDIATE ACTION TO MITIGATE DAMAGE OR LOSS

TO THE LICENSEE'S VIDEO GAMING TERMINALS.

(2) THE BOARD SHALL PROMULGATE REGULATIONS TO GOVERN THE

USE OF GAMING SERVICE PROVIDERS UNDER EMERGENCY

CIRCUMSTANCES. THE REGULATIONS SHALL INCLUDE A REQUIREMENT

THAT THE TERMINAL OPERATOR LICENSEE CONTACT THE BOARD

IMMEDIATELY UPON UTILIZING A GAMING SERVICE PROVIDER THAT HAS

NOT BEEN APPROVED BY THE BOARD.

(I) CRIMINAL HISTORY RECORD INFORMATION.--IF THE

CLASSIFICATION SYSTEM DEVELOPED BY THE BOARD IN ACCORDANCE WITH

SUBSECTION (A) REQUIRES A GAMING SERVICE PROVIDER OR AN

INDIVIDUAL OR ENTITY ASSOCIATED WITH THE GAMING SERVICE PROVIDER

TO SUBMIT TO OR PROVIDE THE BUREAU WITH CRIMINAL HISTORY RECORD

INFORMATION UNDER 18 PA.C.S. CH. 91 (RELATING TO CRIMINAL

HISTORY RECORD INFORMATION), THE BUREAU SHALL NOTIFY A TERMINAL

OPERATOR LICENSEE THAT SUBMITTED A CERTIFICATION UNDER

SUBSECTION (E)(2) WHETHER THE APPLICANT HAS BEEN CONVICTED OF A

FELONY OR MISDEMEANOR GAMBLING OFFENSE.

§ 3510. OCCUPATION PERMIT.

(A) APPLICATION.--

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(1) A PERSON WHO DESIRES TO BE A GAMING EMPLOYEE AND HAS

A BONA FIDE OFFER OF EMPLOYMENT FROM A TERMINAL OPERATOR

LICENSEE SHALL APPLY TO THE BOARD FOR AN OCCUPATION PERMIT.

(2) A PERSON MAY NOT BE EMPLOYED AS A GAMING EMPLOYEE

UNLESS AND UNTIL THAT PERSON HOLDS AN APPROPRIATE OCCUPATION

PERMIT ISSUED UNDER THIS SECTION.

(3) THE BOARD MAY PROMULGATE REGULATIONS TO RECLASSIFY A

CATEGORY OF NONGAMING EMPLOYEES OR GAMING EMPLOYEES UPON A

FINDING THAT THE RECLASSIFICATION IS IN THE PUBLIC INTEREST

AND CONSISTENT WITH THE OBJECTIVES OF THIS PART.

(B) REQUIREMENTS.--THE APPLICATION FOR AN OCCUPATION PERMIT

SHALL INCLUDE, AT A MINIMUM:

(1) THE NAME AND HOME ADDRESS OF THE PERSON.

(2) THE PREVIOUS EMPLOYMENT HISTORY OF THE PERSON.

(3) THE CRIMINAL HISTORY RECORD OF THE PERSON, AS WELL

AS THE PERSON'S CONSENT FOR THE PENNSYLVANIA STATE POLICE TO

CONDUCT A BACKGROUND INVESTIGATION.

(4) A PHOTOGRAPH OF THE PERSON.

(5) EVIDENCE OF THE OFFER OF EMPLOYMENT AND THE NATURE

AND SCOPE OF THE PROPOSED DUTIES OF THE PERSON, IF KNOWN.

(6) THE DETAILS OF AN OCCUPATION PERMIT OR SIMILAR

LICENSE GRANTED OR DENIED TO THE APPLICANT IN OTHER

JURISDICTIONS.

(7) OTHER INFORMATION DETERMINED BY THE BOARD TO BE

APPROPRIATE.

OR PERMIT A PERSON UNDER 18 YEARS OF AGE TO RENDER SERVICE IN A

VIDEO GAMING AREA.

§ 3511. ALTERNATIVE TERMINAL OPERATOR LICENSING STANDARDS.

(A) DETERMINATION.--

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(1) THE BOARD MAY DETERMINE WHETHER THE LICENSING

STANDARDS OF ANOTHER JURISDICTION WITHIN THE UNITED STATES OR

CANADA IN WHICH AN APPLICANT, ITS AFFILIATE, INTERMEDIARY,

SUBSIDIARY OR HOLDING COMPANY FOR A TERMINAL OPERATOR LICENSE

IS SIMILARLY LICENSED ARE COMPREHENSIVE AND THOROUGH AND

PROVIDE SIMILAR ADEQUATE SAFEGUARDS AS THOSE REQUIRED BY THIS

PART.

(2) IF THE BOARD MAKES THAT DETERMINATION, IT MAY ISSUE

A TERMINAL OPERATOR LICENSE TO AN APPLICANT WHO HOLDS A

TERMINAL OPERATOR LICENSE IN THE OTHER JURISDICTION AFTER

CONDUCTING AN EVALUATION OF THE INFORMATION RELATING TO THE

APPLICANT FROM THE OTHER JURISDICTIONS, AS UPDATED BY THE

BOARD, AND EVALUATING OTHER INFORMATION RELATED TO THE

APPLICANT RECEIVED FROM THAT JURISDICTION AND OTHER

JURISDICTIONS WHERE THE APPLICANT MAY BE LICENSED, THE BOARD

MAY INCORPORATE SUCH INFORMATION IN WHOLE OR IN PART INTO THE

BOARD'S EVALUATION OF THE APPLICANT.

(B) ABBREVIATED PROCESS.--

(1) IN THE EVENT AN APPLICANT FOR A TERMINAL OPERATOR

LICENSE IS LICENSED IN ANOTHER JURISDICTION, THE BOARD MAY

DETERMINE TO USE AN ALTERNATE PROCESS REQUIRING ONLY THAT

INFORMATION DETERMINED BY THE BOARD TO BE NECESSARY TO

CONSIDER THE ISSUANCE OF A LICENSE, INCLUDING FINANCIAL

VIABILITY OF THE LICENSEE, TO SUCH AN APPLICANT.

(2) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE

FEES ASSOCIATED WITH OBTAINING A LICENSE THROUGH THE NORMAL

APPLICATION PROCESS.

A TERMINAL OPERATOR LICENSE UNDER THIS PART HOLDS A SLOT MACHINE

LICENSE UNDER PART II (RELATING TO GAMING), THE BOARD MAY

20170HB0271PN1942 - 573 -

DETERMINE TO USE AN ABBREVIATED PROCESS REQUIRING ONLY THAT

INFORMATION DETERMINED BY THE BOARD TO BE NECESSARY TO CONSIDER

THE ISSUANCE OF A LICENSE, INCLUDING FINANCIAL VIABILITY OF THE

APPLICANT.

§ 3512. ALTERNATIVE MANUFACTURER LICENSING STANDARDS.

(A) DETERMINATION.--

(1) THE BOARD MAY DETERMINE WHETHER THE LICENSING

STANDARDS OF ANOTHER JURISDICTION WITHIN THE UNITED STATES IN

WHICH AN APPLICANT FOR A MANUFACTURER LICENSE IS SIMILARLY

LICENSED ARE COMPREHENSIVE AND THOROUGH AND PROVIDE SIMILAR

ADEQUATE SAFEGUARDS AS THOSE REQUIRED BY THIS PART.

(2) IF THE BOARD MAKES THAT DETERMINATION, IT MAY ISSUE

A MANUFACTURER LICENSE TO AN APPLICANT WHO HOLDS A SIMILAR

MANUFACTURER LICENSE IN THE OTHER JURISDICTION AFTER

CONDUCTING AN EVALUATION OF THE INFORMATION RELATING TO THE

APPLICANT FROM THE OTHER JURISDICTIONS, AS UPDATED BY THE

BOARD, AND EVALUATING OTHER INFORMATION RELATED TO THE

APPLICANT RECEIVED FROM THAT JURISDICTION AND OTHER

JURISDICTIONS WHERE THE APPLICANT MAY BE LICENSED, THE BOARD

MAY INCORPORATE SUCH INFORMATION IN WHOLE OR IN PART INTO THE

BOARD'S EVALUATION OF THE APPLICANT.

(B) ABBREVIATED PROCESS.--

(1) IN THE EVENT AN APPLICANT FOR A MANUFACTURER LICENSE

IS LICENSED IN ANOTHER JURISDICTION, THE BOARD MAY DETERMINE

TO USE AN ABBREVIATED PROCESS REQUIRING ONLY THAT INFORMATION

DETERMINED BY THE BOARD TO BE NECESSARY TO CONSIDER THE

ISSUANCE OF A LICENSE, INCLUDING FINANCIAL VIABILITY OF THE

APPLICANT.

(2) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE

FEES ASSOCIATED WITH OBTAINING A LICENSE THROUGH THE NORMAL

20170HB0271PN1942 - 574 -

APPLICATION PROCESS.

A MANUFACTURER LICENSE UNDER THIS PART HOLDS A MANUFACTURER

LICENSE UNDER SECTION 1317.1 (RELATING TO MANUFACTURER

LICENSES), THE BOARD MAY DETERMINE TO USE AN ABBREVIATED PROCESS

REQUIRING ONLY THAT INFORMATION DETERMINED BY THE BOARD TO BE

NECESSARY TO CONSIDER THE ISSUANCE OF A LICENSE, INCLUDING

FINANCIAL VIABILITY OF THE APPLICANT.

§ 3513. ALTERNATIVE SUPPLIER LICENSING STANDARDS.

(A) DETERMINATION.--

(1) THE BOARD MAY DETERMINE WHETHER THE LICENSING

STANDARDS OF ANOTHER JURISDICTION WITHIN THE UNITED STATES IN

WHICH AN APPLICANT FOR A SUPPLIER'S LICENSE IS SIMILARLY

LICENSED ARE COMPREHENSIVE AND THOROUGH AND PROVIDE SIMILAR

ADEQUATE SAFEGUARDS AS REQUIRED BY THIS PART.

(2) IF THE BOARD MAKES THAT DETERMINATION, IT MAY ISSUE

A SUPPLIER LICENSE TO AN APPLICANT WHO HOLDS A SIMILAR

SUPPLIER LICENSE IN ANOTHER JURISDICTION AFTER CONDUCTING AN

EVALUATION OF THE INFORMATION RELATING TO THE APPLICANT FROM

THE OTHER JURISDICTIONS, AS UPDATED BY THE BOARD, AND

EVALUATING OTHER INFORMATION RELATED TO THE APPLICANT

RECEIVED FROM THAT JURISDICTION AND OTHER JURISDICTIONS WHERE

THE APPLICANT MAY BE LICENSED. THE BOARD MAY INCORPORATE THE

INFORMATION IN WHOLE OR IN PART INTO ITS EVALUATION OF THE

APPLICANT.

(B) ABBREVIATED PROCESS.--

(1) IN THE EVENT AN APPLICANT FOR A SUPPLIER LICENSE IS

LICENSED IN ANOTHER JURISDICTION, THE BOARD MAY DETERMINE TO

USE AN ABBREVIATED PROCESS REQUIRING ONLY THAT INFORMATION

DETERMINED BY THE BOARD TO BE NECESSARY TO CONSIDER THE

20170HB0271PN1942 - 575 -

ISSUANCE OF A LICENSE, INCLUDING FINANCIAL VIABILITY OF THE

APPLICANT.

(2) NOTHING IN THIS SECTION SHALL BE CONSTRUED TO WAIVE

ANY FEES ASSOCIATED WITH OBTAINING A LICENSE THROUGH THE

NORMAL APPLICATION PROCESS.

A SUPPLIER LICENSE UNDER THIS PART HOLDS A SUPPLIER LICENSE

UNDER SECTION 1317 (RELATING TO SUPPLIER LICENSES), THE BOARD

MAY DETERMINE TO USE AN ABBREVIATED PROCESS REQUIRING ONLY THAT

INFORMATION DETERMINED BY THE BOARD TO BE NECESSARY TO CONSIDER

THE ISSUANCE OF A LICENSE, INCLUDING FINANCIAL VIABILITY OF THE

APPLICANT.

§ 3514. ESTABLISHMENT LICENSES.

(A) GENERAL REQUIREMENTS.--AN ESTABLISHMENT THAT SUBMITS AN

APPLICATION FOR AN ESTABLISHMENT LICENSE SHALL INCLUDE AT A

MINIMUM:

(1) THE NAME, ADDRESS AND PHOTOGRAPH OF THE APPLICANT

AND ADDITIONAL FINANCIAL INFORMATION REQUIRED BY THE BOARD.

(2) A DESCRIPTION OF THE PROPOSED SURVEILLANCE AND

SECURITY MEASURES TO ENSURE THE SECURITY OF THE PROPOSED

VIDEO GAMING AREA.

(3) A CURRENT TAX LIEN CERTIFICATE ISSUED BY THE

DEPARTMENT.

(4) THE CRIMINAL HISTORY RECORD OF THE APPLICANT,

PRINCIPAL AND KEY EMPLOYEES AND A CONSENT FOR THE BUREAU TO

CONDUCT A BACKGROUND INVESTIGATION ON THE APPLICANT,

PRINCIPALS AND KEY EMPLOYEES.

(5) IF THE APPLICANT IS A LIQUOR ESTABLISHMENT,

DOCUMENTATION SHOWING THAT THE ESTABLISHMENT'S LIQUOR LICENSE

IS VALID AND IS IN GOOD STANDING WITH THE PENNSYLVANIA LIQUOR

20170HB0271PN1942 - 576 -

CONTROL BOARD.

(6) IF THE APPLICANT IS A LIQUOR ESTABLISHMENT,

DISCLOSURE OF CONDITIONAL LICENSE AGREEMENTS ENTERED INTO

UNDER THE ACT OF APRIL 12, 1951 (P.L.90, NO.21), KNOWN AS THE

LIQUOR CODE.

(7) OTHER INFORMATION DETERMINED TO BE APPROPRIATE BY

THE BOARD.

(B) NONTRANSFERABILITY.--A LICENSE ISSUED UNDER THIS SECTION

SHALL BE NONTRANSFERABLE.

UNDER THIS SECTION SHALL CONTINUE TO PROVIDE INFORMATION

REQUIRED BY THE BOARD OR THE BUREAU AND COOPERATE IN ANY INQUIRY

OR INVESTIGATION.

(D) REVIEW AND APPROVAL.--UPON BEING SATISFIED THAT THE

REQUIREMENTS OF SUBSECTION (A) HAVE BEEN MET, THE BOARD MAY

APPROVE THE APPLICATION AND ISSUE THE APPLICANT AN ESTABLISHMENT

LICENSE CONSISTENT WITH ALL OF THE FOLLOWING:

(1) (I) THE LICENSE SHALL BE FOR A PERIOD OF FIVE

YEARS.

(II) NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO

RELIEVE A LICENSEE OF THE AFFIRMATIVE DUTY TO NOTIFY THE

BOARD OF A CHANGE RELATING TO THE STATUS OF ITS LICENSE

OR TO INFORMATION CONTAINED IN APPLICATION MATERIALS ON

FILE WITH THE BOARD.

(2) THE LICENSE SHALL BE NONTRANSFERABLE.

(3) OTHER CONDITIONS ESTABLISHED BY THE BOARD.

(E) INSPECTION REQUIRED.--

(1) IF THE BOARD RECEIVES AN APPLICATION UNDER

SUBSECTION (A) FROM AN APPLICANT THAT IS A LIQUOR

ESTABLISHMENT WHOSE LICENSED PREMISES IS LESS THAN 1,000

20170HB0271PN1942 - 577 -

SQUARE FEET, THE BOARD SHALL REQUEST THE BUREAU OF LIQUOR

CONTROL ENFORCEMENT OF THE PENNSYLVANIA STATE POLICE TO

INSPECT THE LIQUOR ESTABLISHMENT'S LICENSED PREMISES TO

ENSURE COMPLIANCE WITH THE LIQUOR CODE. THE BUREAU OF LIQUOR

CONTROL ENFORCEMENT OF THE PENNSYLVANIA STATE POLICE SHALL

INSPECT THE LIQUOR ESTABLISHMENT'S LICENSED PREMISES UPON

RECEIVING THE REQUEST FOR THE BOARD.

(2) THE BUREAU OF LIQUOR CONTROL ENFORCEMENT OF THE

PENNSYLVANIA STATE POLICE SHALL TRANSMIT THE FINDINGS OF THE

INSPECTION REQUIRED IN PARAGRAPH (1) TO THE PENNSYLVANIA

LIQUOR CONTROL BOARD AND THE PENNSYLVANIA LIQUOR CONTROL

BOARD SHALL PROVIDE TO THE BOARD A REPORT CONTAINING THE

FOLLOWING INFORMATION:

(I) VIOLATIONS OF THE LIQUOR CODE FOUND AS A RESULT

OF THE INSPECTION.

(II) WHETHER THE VIOLATIONS ARE OF A CONTINUING

NATURE.

(III) SEVERITY OF THE VIOLATIONS AND POTENTIAL

SANCTIONS AGAINST THE LIQUOR ESTABLISHMENT.

(IV) WHETHER, ACCORDING TO THE DISCRETION OF THE

PENNSYLVANIA LIQUOR CONTROL BOARD, THE LIQUOR

ESTABLISHMENT IS SUITABLE TO RECEIVE AN ESTABLISHMENT

LICENSE FROM THE BOARD.

(V) OTHER INFORMATION DETERMINED BY THE PENNSYLVANIA

LIQUOR CONTROL BOARD TO BE APPROPRIATE REGARDING THE

SUITABILITY OF THE LIQUOR ESTABLISHMENT TO PARTICIPATE IN

VIDEO GAMING.

(3) THE BOARD SHALL REQUIRE A FEE FROM THE LIQUOR

ESTABLISHMENT TO REIMBURSE THE BUREAU OF LIQUOR CONTROL

ENFORCEMENT OF THE PENNSYLVANIA STATE POLICE AND THE

20170HB0271PN1942 - 578 -

PENNSYLVANIA LIQUOR CONTROL BOARD FOR ANY COSTS INCURRED AS A

RESULT OF FULFILLING THE REQUIREMENTS OF PARAGRAPHS (1) AND

(2). THE FEE SHALL NOT BE SUBJECT TO FEE LIMITATIONS

CONTAINED IN SECTION 4101 (RELATING TO FEES).

(F) RENEWAL.--

(1) AT LEAST THREE MONTHS PRIOR TO EXPIRATION OF AN

ESTABLISHMENT LICENSE, THE ESTABLISHMENT LICENSEE SEEKING

RENEWAL OF ITS LICENSE SHALL SUBMIT A RENEWAL APPLICATION

ACCOMPANIED BY THE RENEWAL FEE TO THE BOARD.

(2) IF THE RENEWAL APPLICATION SATISFIES THE

REQUIREMENTS OF SUBSECTION (B), THE BOARD MAY RENEW THE

LICENSEE'S ESTABLISHMENT LICENSE.

(3) IF THE BOARD RECEIVES A COMPLETE RENEWAL APPLICATION

BUT FAILS TO ACT UPON THE RENEWAL APPLICATION PRIOR TO THE

EXPIRATION OF THE MANUFACTURER LICENSE, THE ESTABLISHMENT

LICENSE SHALL CONTINUE IN EFFECT UNTIL ACTED UPON BY THE

BOARD.

§ 3515. LICENSE OR PERMIT PROHIBITION.

THE FOLLOWING APPLY:

(1) THE BOARD SHALL BE PROHIBITED FROM GRANTING A

LICENSE UNDER THIS PART TO ANY APPLICANT WHO HAS BEEN

CONVICTED OF A FELONY OFFENSE IN ANY JURISDICTION.

(2) IN ADDITION TO THE PROHIBITION UNDER PARAGRAPH (1),

THE BOARD SHALL BE PROHIBITED FROM GRANTING THE FOLLOWING:

(I) A PRINCIPAL LICENSE OR KEY EMPLOYEE LICENSE TO

AN INDIVIDUAL WHO HAS BEEN CONVICTED IN A JURISDICTION OF

A MISDEMEANOR GAMBLING OFFENSE, UNLESS 15 YEARS HAVE

ELAPSED FROM THE DATE OF CONVICTION FOR THE OFFENSE.

(II) A GAMING EMPLOYEE PERMIT OR A LICENSE OTHER

THAN A PRINCIPAL LICENSE OR KEY EMPLOYEE LICENSE TO AN

20170HB0271PN1942 - 579 -

INDIVIDUAL WHO HAS BEEN CONVICTED IN A JURISDICTION OF A

MISDEMEANOR GAMBLING OFFENSE, UNLESS 15 YEARS HAVE

ELAPSED FROM THE DATE OF CONVICTION FOR THE OFFENSE.

(III) AN ESTABLISHMENT LICENSE TO AN APPLICANT WHO

HAS BEEN CONVICTED IN A JURISDICTION OF A MISDEMEANOR

GAMBLING OFFENSE, UNLESS THREE YEARS HAVE ELAPSED FROM

THE DATE OF CONVICTION FOR THE OFFENSE.

(IV) AN ESTABLISHMENT LICENSE TO AN APPLICANT THAT

IS A LIQUOR ESTABLISHMENT WHOSE LIQUOR LICENSE IS NOT IN

GOOD STANDING WITH THE PENNSYLVANIA LIQUOR CONTROL BOARD.

(V) AN ESTABLISHMENT LICENSE TO AN APPLICANT THAT IS

A LIQUOR ESTABLISHMENT THAT IS DECLARED A NUISANCE UNDER

SECTION 611 OF THE ACT OF APRIL 12, 1951 (P.L.90, NO.21),

KNOWN AS THE LIQUOR CODE, OR HAS BEEN DECLARED A NUISANCE

WITHIN THE PAST THREE YEARS.

(VI) AN ESTABLISHMENT LICENSE TO AN APPLICANT THAT

IS A LIQUOR ESTABLISHMENT WITH A CONDITIONAL LICENSE

AGREEMENT ENTERED INTO UNDER THE LIQUOR CODE UNLESS THE

AGREEMENT HAS BEEN AMENDED TO ALLOW FOR VIDEO GAMING.

(VII) AN ESTABLISHMENT LICENSE TO AN APPLICANT THAT

IS A LIQUOR ESTABLISHMENT WHOSE LIQUOR LICENSE HAS BEEN

SUSPENDED, UNLESS THREE YEARS HAVE ELAPSED FROM THE DATE

OF SUSPENSION.

(3) FOLLOWING THE EXPIRATION OF ANY PROHIBITION PERIOD

APPLICABLE TO AN APPLICANT UNDER PARAGRAPH (2), IN

DETERMINING WHETHER TO ISSUE A LICENSE OR PERMIT, THE BOARD

SHALL CONSIDER THE FOLLOWING FACTORS:

(I) THE NATURE AND DUTIES OF THE APPLICANT'S

POSITION WITH THE LICENSED ENTITY.

(II) THE NATURE AND SERIOUSNESS OF THE OFFENSE OR

20170HB0271PN1942 - 580 -

CONDUCT.

(III) THE CIRCUMSTANCES UNDER WHICH THE OFFENSE OR

CONDUCT OCCURRED.

(IV) THE AGE OF THE APPLICANT WHEN THE OFFENSE OR

CONDUCT WAS COMMITTED.

(V) WHETHER THE OFFENSE OR CONDUCT WAS AN ISOLATED

OR A REPEATED INCIDENT.

(VI) EVIDENCE OF REHABILITATION, INCLUDING GOOD

CONDUCT IN THE COMMUNITY, COUNSELING OR PSYCHIATRIC

TREATMENT RECEIVED AND THE RECOMMENDATION OF PERSONS WHO

HAVE SUBSTANTIAL CONTACT WITH THE APPLICANT.

(4) FOR PURPOSES OF THIS SECTION, A FELONY OFFENSE IS

ANY OF THE FOLLOWING:

(I) AN OFFENSE PUNISHABLE UNDER THE LAWS OF THIS

COMMONWEALTH BY IMPRISONMENT FOR MORE THAN FIVE YEARS.

(II) AN OFFENSE WHICH, UNDER THE LAWS OF ANOTHER

JURISDICTION, IS:

(A) CLASSIFIED AS A FELONY; OR

(B) PUNISHABLE BY IMPRISONMENT FOR MORE THAN

FIVE YEARS.

(III) AN OFFENSE UNDER THE LAWS OF ANOTHER

JURISDICTION WHICH, IF COMMITTED IN THIS COMMONWEALTH,

WOULD BE SUBJECT TO IMPRISONMENT FOR MORE THAN FIVE

YEARS.

§ 3516. ISSUANCE AND RENEWAL.

(A) ISSUANCE.--

(1) IN ADDITION TO ANY OTHER CRITERIA PROVIDED UNDER

THIS PART, ANY TERMINAL OPERATOR, ESTABLISHMENT, SUPPLIER,

MANUFACTURER, GAMING EMPLOYEE OR OTHER PERSON THAT THE BOARD

APPROVES AS QUALIFIED TO RECEIVE A LICENSE OR A PERMIT UNDER

20170HB0271PN1942 - 581 -

THIS PART SHALL BE ISSUED A LICENSE OR PERMIT UPON THE

PAYMENT OF A FEE REQUIRED IN SECTION 4101 (RELATING TO FEES)

AND UPON THE FULFILLMENT OF CONDITIONS REQUIRED BY THE BOARD

OR PROVIDED FOR IN THIS PART.

(2) NOTHING CONTAINED IN THIS PART IS INTENDED OR SHALL

BE CONSTRUED TO CREATE AN ENTITLEMENT TO A LICENSE OR PERMIT

BY A PERSON.

(B) RENEWAL.--

(1) ALL PERMITS AND LICENSES ISSUED UNDER THIS PART

UNLESS OTHERWISE PROVIDED SHALL BE SUBJECT TO RENEWAL EVERY

FIVE YEARS.

(2) THE APPLICATION FOR RENEWAL, UNLESS OTHERWISE

PROVIDED, SHALL BE SUBMITTED AT LEAST 180 DAYS PRIOR TO THE

EXPIRATION OF THE PERMIT OR LICENSE 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 SECTION 4101.

(3) NOTHING IN THIS SUBSECTION SHALL BE CONSTRUED TO

RELIEVE A LICENSEE OF THE AFFIRMATIVE DUTY TO NOTIFY THE

BOARD OF A CHANGE RELATING TO THE STATUS OF ITS LICENSE OR TO

OTHER INFORMATION CONTAINED IN THE APPLICATION MATERIALS ON

FILE WITH THE BOARD.

(1) IN ADDITION TO OTHER SANCTIONS THE BOARD MAY IMPOSE

UNDER THIS PART, THE BOARD MAY AT ITS DISCRETION SUSPEND,

REVOKE OR DENY RENEWAL OF A PERMIT OR LICENSE ISSUED UNDER

THIS PART IF IT RECEIVES 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

20170HB0271PN1942 - 582 -

MISLEADING INFORMATION OR THAT THE INFORMATION CONTAINED IN

THE APPLICANT'S INITIAL APPLICATION OR RENEWAL APPLICATION IS

NO LONGER TRUE AND CORRECT SUCH THAT THE APPLICANT IS NO

LONGER ELIGIBLE.

(2) IN THE EVENT OF A REVOCATION OR FAILURE TO RENEW,

THE APPLICANT'S AUTHORIZATION TO CONDUCT THE PREVIOUSLY

APPROVED ACTIVITY SHALL IMMEDIATELY CEASE UPON RECEIPT OF A

FINAL ADJUDICATION UNDER 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), 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 THE PREVIOUSLY APPROVED ACTIVITY

SHALL IMMEDIATELY CEASE UNTIL THE BOARD HAS NOTIFIED THE

APPLICANT THAT THE SUSPENSION IS NO LONGER IN EFFECT.

(D) NONTRANSFERABILITY OF LICENSES.--

(1) A LICENSE ISSUED BY THE BOARD IS A GRANT OF THE

PRIVILEGE TO CONDUCT A BUSINESS IN THIS COMMONWEALTH.

(2) EXCEPT AS PERMITTED BY SECTION 3517 (RELATING TO

CHANGE IN OWNERSHIP OR CONTROL OF TERMINAL OPERATOR

LICENSEE), NO LICENSE GRANTED OR RENEWED PURSUANT TO THIS

PART MAY BE SOLD, TRANSFERRED OR ASSIGNED TO ANOTHER PERSON.

(3) NO LICENSEE MAY PLEDGE OR OTHERWISE GRANT A SECURITY

INTEREST IN OR LIEN ON THE LICENSE.

(4) THE BOARD HAS THE SOLE DISCRETION TO ISSUE, RENEW,

CONDITION OR DENY THE ISSUANCE OF A TERMINAL OPERATOR LICENSE

BASED UPON THE REQUIREMENTS OF THIS PART.

(5) NOTHING CONTAINED IN THIS PART IS INTENDED OR SHALL

BE CONSTRUED TO CREATE IN ANY PERSON AN ENTITLEMENT TO A

20170HB0271PN1942 - 583 -

LICENSE.

§ 3517. CHANGE IN OWNERSHIP OR CONTROL OF TERMINAL OPERATOR

LICENSEE.

(A) NOTIFICATION AND APPROVAL.--

(1) A TERMINAL OPERATOR LICENSEE SHALL PROMPTLY NOTIFY

THE BOARD OF A PROPOSED OR CONTEMPLATED CHANGE OF OWNERSHIP

OF THE TERMINAL OPERATOR LICENSEE BY A PERSON OR GROUP OF

PERSONS ACTING IN CONCERT WHICH INVOLVES ANY OF THE

FOLLOWING:

(I) MORE THAN 5% OF A TERMINAL OPERATOR LICENSEE'S

SECURITIES OR OTHER OWNERSHIP INTERESTS.

(II) MORE THAN 5% 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 LICENSEE.

(III) THE SALE OF ALL OR SUBSTANTIALLY ALL OF A

LICENSEE'S ASSETS.

(IV) OTHER TRANSACTION OR OCCURRENCE DEEMED BY THE

BOARD TO BE RELEVANT TO LICENSE QUALIFICATIONS.

(2) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH

(1), NO TERMINAL OPERATOR LICENSEE MAY BE REQUIRED TO

NOTIFY THE BOARD OF AN ACQUISITION BY AN INSTITUTIONAL

INVESTOR UNDER PARAGRAPH (1)(I) OR (II) IF THE

INSTITUTIONAL INVESTOR HOLDS LESS THAN 10% OF THE

SECURITIES OR OTHER OWNERSHIP INTERESTS REFERRED TO IN

PARAGRAPH (1)(I) OR (II), THE SECURITIES OR INTERESTS ARE

PUBLICLY TRADED SECURITIES AND ITS HOLDINGS OF THE

SECURITIES WERE PURCHASED FOR INVESTMENT PURPOSES ONLY

AND THE INSTITUTIONAL INVESTOR FILES WITH THE BOARD A

20170HB0271PN1942 - 584 -

CERTIFIED STATEMENT TO THE EFFECT THAT IT HAS NO

INTENTION OF INFLUENCING OR AFFECTING, DIRECTLY OR

INDIRECTLY, THE AFFAIRS OF THE LICENSEE, PROVIDED,

HOWEVER, THAT IT SHALL BE PERMITTED TO VOTE ON MATTERS

PUT TO THE VOTE OF THE OUTSTANDING SECURITY HOLDERS.

(II) NOTICE TO THE BOARD AND BOARD APPROVAL SHALL BE

REQUIRED PRIOR TO COMPLETION OF ANY PROPOSED OR

CONTEMPLATED CHANGE OF OWNERSHIP OF A TERMINAL OPERATOR

LICENSEE THAT MEETS THE CRITERIA OF THIS SECTION.

(B) QUALIFICATION OF PURCHASER OF TERMINAL OPERATOR

LICENSEE; CHANGE OF CONTROL.--

(1) THE PURCHASER OF ALL OR SUBSTANTIALLY ALL OF THE

ASSETS OF A TERMINAL OPERATOR LICENSEE SHALL, IF NOT ALREADY

A TERMINAL OPERATOR LICENSEE, INDEPENDENTLY QUALIFY FOR A

LICENSE IN ACCORDANCE WITH THIS PART AND SHALL PAY THE

LICENSE FEE AS REQUIRED BY SECTION 4101 (RELATING TO FEES).

(2) A CHANGE IN CONTROL OF A TERMINAL OPERATOR LICENSEE

SHALL REQUIRE THAT THE TERMINAL OPERATOR LICENSEE

INDEPENDENTLY QUALIFY FOR A LICENSE IN ACCORDANCE WITH THIS

PART, AND THE TERMINAL OPERATOR LICENSEE SHALL PAY A NEW

LICENSE FEE AS REQUIRED BY SECTION 4101, EXCEPT AS OTHERWISE

REQUIRED BY THE BOARD PURSUANT TO THIS SECTION.

(3) THE NEW LICENSE FEE SHALL BE PAID UPON THE

ASSIGNMENT AND ACTUAL CHANGE OF CONTROL OR OWNERSHIP OF THE

TERMINAL OPERATOR LICENSE.

SECTION, A CHANGE IN CONTROL OF A TERMINAL OPERATOR LICENSEE

SHALL MEAN THE ACQUISITION BY A PERSON OR GROUP OF PERSONS

ACTING IN CONCERT OF MORE THAN 20% OF A TERMINAL OPERATOR

LICENSEE'S SECURITIES OR OTHER OWNERSHIP INTERESTS, WITH THE

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EXCEPTION OF ANY OWNERSHIP INTEREST OF THE PERSON THAT EXISTED

AT THE TIME OF INITIAL LICENSING AND PAYMENT OF THE INITIAL SLOT

MACHINE 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

LICENSEE.

(D) FEE REDUCTION.--THE BOARD MAY IN ITS DISCRETION

ELIMINATE THE NEED FOR QUALIFICATION OR PROPORTIONATELY REDUCE,

BUT NOT ELIMINATE, THE NEW LICENSE FEE OTHERWISE REQUIRED

PURSUANT TO THIS SECTION IN CONNECTION WITH A CHANGE OF CONTROL

OF A LICENSEE, DEPENDING UPON THE TYPE OF TRANSACTION, THE

RELEVANT OWNERSHIP INTERESTS AND CHANGES TO THE INTERESTS

RESULTING FROM THE TRANSACTION AND OTHER CONSIDERATIONS DEEMED

RELEVANT BY THE BOARD.

(E) LICENSE REVOCATION.--FAILURE TO COMPLY WITH THIS SECTION

MAY CAUSE THE LICENSE ISSUED UNDER THIS PART TO BE REVOKED OR

SUSPENDED BY THE BOARD UNLESS THE PURCHASE OF THE ASSETS OR THE

CHANGE IN CONTROL THAT MEETS THE CRITERIA OF THIS SECTION HAS

BEEN INDEPENDENTLY QUALIFIED IN ADVANCE BY THE BOARD AND ANY

REQUIRED LICENSE FEE HAS BEEN PAID.

§ 3518. VIDEO GAMING ACCOUNTING CONTROLS AND AUDITS.

(A) APPROVAL.--EXCEPT AS OTHERWISE PROVIDED BY THIS PART, A

TERMINAL OPERATOR LICENSE APPLICANT SHALL, IN ADDITION TO

OBTAINING A TERMINAL OPERATOR LICENSE, OBTAIN APPROVAL FROM THE

BOARD IN CONSULTATION WITH THE DEPARTMENT OF ITS INTERNAL

CONTROL SYSTEMS AND AUDIT PROTOCOLS PRIOR TO THE INSTALLATION

AND OPERATION OF VIDEO GAMING TERMINALS AT LICENSED

ESTABLISHMENTS.

(B) MINIMUM REQUIREMENTS.--AT A MINIMUM, THE APPLICANT'S

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PROPOSED INTERNAL CONTROLS AND AUDIT PROTOCOLS SHALL:

(1) SAFEGUARD ITS ASSETS AND REVENUES, INCLUDING, BUT

NOT LIMITED TO, THE RECORDING OF CASH AND EVIDENCES OF

INDEBTEDNESS RELATED TO THE VIDEO GAMING TERMINALS.

(2) PROVIDE FOR RELIABLE RECORDS, ACCOUNTS AND REPORTS

OF A FINANCIAL EVENT THAT OCCURS IN THE OPERATION OF A VIDEO

GAMING TERMINAL, INCLUDING REPORTS TO THE BOARD RELATED TO

THE VIDEO GAMING TERMINALS.

(3) ENSURE THAT EACH VIDEO GAMING TERMINAL DIRECTLY

PROVIDES OR COMMUNICATES ALL REQUIRED ACTIVITIES AND

FINANCIAL DETAILS TO THE CENTRAL CONTROL COMPUTER SYSTEM AS

SET BY THE BOARD.

(4) PROVIDE FOR ACCURATE AND RELIABLE FINANCIAL RECORDS.

(5) ENSURE A FINANCIAL EVENT THAT OCCURS IN THE

OPERATION OF A VIDEO GAMING TERMINAL IS PERFORMED ONLY IN

ACCORDANCE WITH THE MANAGEMENT'S GENERAL OR SPECIFIC

AUTHORIZATION, AS APPROVED BY THE BOARD.

(6) ENSURE THAT A FINANCIAL EVENT THAT OCCURS IN THE

OPERATION OF A VIDEO GAMING TERMINAL IS RECORDED ADEQUATELY

TO PERMIT PROPER AND TIMELY REPORTING OF GROSS REVENUE AND

THE CALCULATION THEREOF AND OF FEES AND TAXES AND TO MAINTAIN

ACCOUNTABILITY FOR ASSETS.

(7) ENSURE THAT ACCESS TO ASSETS IS PERMITTED ONLY IN

ACCORDANCE WITH MANAGEMENT'S SPECIFIC AUTHORIZATION, AS

APPROVED BY THE BOARD.

(8) ENSURE THAT RECORDED ACCOUNTABILITY FOR ASSETS IS

COMPARED WITH ACTUAL ASSETS AT INTERVALS AS REQUIRED BY THE

BOARD AND APPROPRIATE ACTION IS TAKEN WITH RESPECT TO

DISCREPANCIES.

(9) ENSURE THAT ALL FUNCTIONS, DUTIES AND

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RESPONSIBILITIES ARE APPROPRIATELY SEGREGATED AND PERFORMED

IN ACCORDANCE WITH SOUND FINANCIAL PRACTICES BY COMPETENT,

QUALIFIED PERSONNEL.

(10) ANY OTHER REQUIREMENT OF THE BOARD.

SHALL SUBMIT TO THE BOARD AND DEPARTMENT, IN SUCH MANNER AS THE

BOARD REQUIRES, A DESCRIPTION OF ITS ADMINISTRATIVE AND

ACCOUNTING PROCEDURES IN DETAIL, INCLUDING ITS WRITTEN SYSTEM OF

INTERNAL CONTROL. THE WRITTEN SYSTEM OF INTERNAL CONTROL SHALL

INCLUDE:

(1) RECORDS OF DIRECT AND INDIRECT OWNERSHIP IN THE

PROPOSED TERMINAL OPERATOR LICENSEE, ITS AFFILIATE,

INTERMEDIARY, SUBSIDIARY OR HOLDING COMPANY.

(2) AN ORGANIZATIONAL CHART DEPICTING APPROPRIATE

SEGREGATION OF FUNCTIONS AND RESPONSIBILITIES.

(3) A DESCRIPTION OF THE DUTIES AND RESPONSIBILITIES OF

EACH POSITION SHOWN ON THE ORGANIZATIONAL CHART.

(4) A DETAILED NARRATIVE DESCRIPTION OF THE

ADMINISTRATIVE AND ACCOUNTING PROCEDURES DESIGNED TO SATISFY

THE REQUIREMENTS OF THIS SECTION.

(5) RECORD RETENTION POLICY.

(6) PROCEDURE TO ENSURE THAT ASSETS ARE SAFEGUARDED,

INCLUDING MANDATORY COUNT PROCEDURES.

(7) A STATEMENT SIGNED BY THE CHIEF FINANCIAL OFFICER OF

THE TERMINAL OPERATOR LICENSE APPLICANT OR OTHER COMPETENT

PERSON AND THE CHIEF EXECUTIVE OFFICER OF THE TERMINAL

OPERATOR LICENSE APPLICANT OR OTHER COMPETENT PERSON

ATTESTING THAT THE OFFICER BELIEVES, IN GOOD FAITH, THAT THE

SYSTEM SATISFIES THE REQUIREMENTS OF THIS SECTION.

(8) OTHER ITEMS THAT THE BOARD MAY REQUIRE IN ITS

20170HB0271PN1942 - 588 -

DISCRETION.

§ 3519. MULTIPLE LICENSES PROHIBITED.

(A) MANUFACTURER RESTRICTION.--A MANUFACTURER MAY NOT BE

LICENSED AS A TERMINAL OPERATOR OR OWN, MANAGE OR CONTROL AN

ESTABLISHMENT LICENSEE, BUT MAY ALSO BE LICENSED AS A SUPPLIER.

(B) SUPPLIER RESTRICTION.--A SUPPLIER MAY NOT BE LICENSED AS

A TERMINAL OPERATOR OR OWN, MANAGE OR CONTROL AN ESTABLISHMENT

LICENSEE OR TERMINAL OPERATOR LICENSEE.

NOT BE LICENSED AS A MANUFACTURER OR SUPPLIER OR OWN, MANAGE OR

CONTROL AN ESTABLISHMENT LICENSEE OR OWN, MANAGE OR CONTROL

PREMISES USED BY AN ESTABLISHMENT LICENSEE.

(D) ESTABLISHMENT RESTRICTION.--AN ESTABLISHMENT LICENSEE

MAY NOT BE LICENSED AS A MANUFACTURER, SUPPLIER, TERMINAL

OPERATOR OR PROCUREMENT AGENT.

§ 3520. CONDITIONAL LICENSES.

(A) CONDITIONAL ESTABLISHMENT LICENSES.--

(1) WITHIN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS

SECTION, THE BOARD SHALL MAKE APPLICATIONS FOR ESTABLISHMENT

LICENSES AVAILABLE TO APPLICANTS.

(2) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO AN

APPLICANT FOR AN ESTABLISHMENT LICENSE IF THE APPLICANT

SATISFIES, AS DETERMINED BY THE BOARD, ALL OF THE FOLLOWING

CRITERIA:

(I) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

FELONY IN ANY JURISDICTION.

(II) THE APPLICANT IS CURRENT ON ALL STATE TAXES.

(III) THE APPLICANT HAS SUBMITTED A COMPLETED

APPLICATION FOR AN ESTABLISHMENT LICENSE IN ACCORDANCE

WITH THIS PART, WHICH MAY BE SUBMITTED CONCURRENTLY WITH

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THE APPLICANT'S REQUEST FOR A CONDITIONAL LICENSE.

(IV) FOR LIQUOR ESTABLISHMENT APPLICANTS, THE

APPLICANT HELD A VALID LIQUOR LICENSE ON THE DATE OF

APPLICATION AND SUCH LICENSE IS IN GOOD STANDING.

(V) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

GAMBLING LAW VIOLATION IN ANY JURISDICTION.

(VI) FOR AN APPLICANT THAT IS A LIQUOR ESTABLISHMENT

WHOSE LICENSED PREMISES IS LESS THAN 1,000 SQUARE FEET,

THE REPORT REQUIRED UNDER SECTION 3514(D.1) (RELATING TO

ESTABLISHMENT LICENSES) HAS BEEN RECEIVED AND REVIEWED BY

THE BOARD.

(3) (I) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO

AN APPLICANT FOR AN ESTABLISHMENT LICENSE, WITHIN 60 DAYS

AFTER THE COMPLETED APPLICATION HAS BEEN RECEIVED BY THE

BOARD, PROVIDED THAT THE BOARD DETERMINES THAT THE

CRITERIA CONTAINED IN PARAGRAPH (2) HAS BEEN SATISFIED.

(II) IF THE BOARD DETERMINES THAT THE CRITERIA

CONTAINED IN PARAGRAPH (2) HAS NOT BEEN SATISFIED, THE

BOARD SHALL GIVE A WRITTEN EXPLANATION TO THE APPLICANT

AS TO WHY IT HAS DETERMINED THE CRITERIA HAS NOT BEEN

SATISFIED.

(4) A CONDITIONAL LICENSE SHALL BE VALID UNTIL:

(I) THE BOARD EITHER APPROVES OR DENIES THE

APPLICANT'S APPLICATION FOR LICENSURE;

(II) THE CONDITIONAL LICENSE IS TERMINATED FOR A

VIOLATION OF THIS PART; OR

(III) ONE CALENDAR YEAR HAS PASSED SINCE THE

CONDITIONAL LICENSE WAS ISSUED.

(5) THE BOARD MAY EXTEND THE DURATION OF THE CONDITIONAL

LICENSE FOR ONE CALENDAR YEAR.

20170HB0271PN1942 - 590 -

(6) AN APPLICANT SHALL ATTEST BY WAY OF AFFIDAVIT UNDER

PENALTY OF PERJURY THAT THE APPLICANT IS NOT OTHERWISE

PROHIBITED FROM LICENSURE ACCORDING TO THE REQUIREMENTS OF

THIS SECTION OR ANY OTHER PROVISION OF THIS PART.

(7) A REQUEST FOR CONDITIONAL LICENSURE UNDER THIS

SUBSECTION SHALL INCLUDE PAYMENT OF A $100 FEE, WHICH FEE

SHALL BE IN ADDITION TO THE APPLICABLE FEE REQUIRED UNDER

SECTION 4101 (RELATING TO FEES).

(B) CONDITIONAL TERMINAL OPERATOR LICENSES.--

(1) WITHIN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS

SECTION, THE BOARD SHALL MAKE APPLICATIONS FOR TERMINAL

OPERATOR LICENSES AVAILABLE TO APPLICANTS.

(2) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO AN

APPLICANT FOR A TERMINAL OPERATOR LICENSE IF THE APPLICANT

SATISFIES, AS DETERMINED BY THE BOARD, ALL OF THE FOLLOWING

CRITERIA:

(I) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

FELONY IN ANY JURISDICTION.

(II) THE APPLICANT IS CURRENT ON ALL STATE TAXES.

(III) THE APPLICANT HAS SUBMITTED A COMPLETED

APPLICATION FOR A TERMINAL OPERATOR LICENSE WHICH MAY BE

SUBMITTED CONCURRENTLY WITH THE APPLICANT'S REQUEST FOR A

CONDITIONAL LICENSE.

(IV) THE APPLICANT HAS NEVER HAD ITS TERMINAL

OPERATOR LICENSE OR SIMILAR GAMING LICENSE DENIED OR

REVOKED IN ANOTHER JURISDICTION.

(V) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

GAMBLING LAW VIOLATION IN ANY JURISDICTION.

(3) (I) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO

AN APPLICANT FOR A TERMINAL OPERATOR LICENSE, WITHIN 60

20170HB0271PN1942 - 591 -

DAYS AFTER THE COMPLETED APPLICATION HAS BEEN RECEIVED BY

THE BOARD, PROVIDED THAT THE BOARD DETERMINES THAT THE

CRITERIA CONTAINED IN PARAGRAPH (3) HAS BEEN SATISFIED.

(II) IF THE BOARD DETERMINES THAT THE CRITERIA

CONTAINED IN PARAGRAPH (3) HAS NOT BEEN SATISFIED, THE

BOARD SHALL GIVE A WRITTEN EXPLANATION TO THE APPLICANT

AS TO WHY IT HAS DETERMINED THE CRITERIA HAS NOT BEEN

SATISFIED.

(4) A CONDITIONAL LICENSE SHALL BE VALID UNTIL:

(I) THE BOARD EITHER APPROVES OR DENIES THE

APPLICANT'S APPLICATION FOR LICENSURE;

(II) THE CONDITIONAL LICENSE IS TERMINATED FOR A

VIOLATION OF THIS CHAPTER; OR

(III) ONE CALENDAR YEAR HAS PASSED SINCE THE

CONDITIONAL LICENSE WAS ISSUED.

(5) THE BOARD MAY EXTEND THE DURATION OF THE CONDITIONAL

LICENSE FOR ONE CALENDAR YEAR.

(6) AN APPLICANT SHALL ATTEST BY WAY OF AFFIDAVIT UNDER

PENALTY OF PERJURY THAT THE APPLICANT IS NOT OTHERWISE

PROHIBITED FROM LICENSURE ACCORDING TO THE REQUIREMENTS OF

THIS SUBSECTION OR ANY OTHER PROVISION OF THIS PART.

(7) A REQUEST FOR CONDITIONAL LICENSURE UNDER THIS

SUBSECTION SHALL INCLUDE PAYMENT OF A $100 FEE, WHICH FEE

SHALL BE IN ADDITION TO THE APPLICABLE FEE REQUIRED UNDER

SECTION 4101.

(1) WITHIN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS

SECTION, THE BOARD SHALL MAKE APPLICATIONS AVAILABLE FOR

MANUFACTURER AND SUPPLIER LICENSE.

(2) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO AN

20170HB0271PN1942 - 592 -

APPLICANT FOR A MANUFACTURER OR SUPPLIER LICENSE IF THE

APPLICANT SATISFIES, AS DETERMINED BY THE BOARD, ALL OF THE

FOLLOWING CRITERIA:

(I) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

FELONY.

(II) THE APPLICANT IS CURRENT ON ALL STATE TAXES.

(III) THE APPLICANT HAS SUBMITTED A COMPLETED

APPLICATION A MANUFACTURER OR SUPPLIER LICENSE, WHICH MAY

BE SUBMITTED CONCURRENTLY WITH THE APPLICANT'S REQUEST

FOR A CONDITIONAL LICENSE.

(IV) THE APPLICANT HAS NEVER HAD ITS MANUFACTURER,

SUPPLIER OR SIMILAR GAMING LICENSE DENIED OR REVOKED IN

ANOTHER JURISDICTION.

(V) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

GAMBLING LAW VIOLATION IN ANY JURISDICTION.

(3) (I) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO

AN APPLICANT FOR A MANUFACTURER OR SUPPLIER LICENSE

WITHIN 60 DAYS AFTER THE COMPLETED APPLICATION HAS BEEN

RECEIVED BY THE BOARD, PROVIDED THAT THE BOARD DETERMINES

THAT THE CRITERIA CONTAINED IN PARAGRAPH (2) HAS BEEN

SATISFIED.

(II) IF THE BOARD DETERMINES THAT THE CRITERIA

CONTAINED IN PARAGRAPH (2) HAS NOT BEEN SATISFIED, THE

BOARD SHALL GIVE A WRITTEN EXPLANATION TO THE APPLICANT

AS TO WHY IT HAS DETERMINED THE CRITERIA HAS NOT BEEN

SATISFIED.

(4) A CONDITIONAL LICENSE SHALL BE VALID UNTIL:

(I) THE BOARD EITHER APPROVES OR DENIES THE

APPLICANT'S APPLICATION FOR LICENSURE;

(II) THE CONDITIONAL LICENSE IS TERMINATED FOR A

20170HB0271PN1942 - 593 -

VIOLATION OF THIS PART; OR

(III) ONE CALENDAR YEAR HAS PASSED SINCE THE

CONDITIONAL LICENSE WAS ISSUED.

(5) THE BOARD MAY EXTEND THE DURATION OF THE CONDITIONAL

LICENSE FOR ONE CALENDAR YEAR.

(6) AN APPLICANT SHALL ATTEST BY WAY OF AFFIDAVIT UNDER

PENALTY OF PERJURY THAT THE APPLICANT IS NOT OTHERWISE

PROHIBITED FROM LICENSURE ACCORDING TO THE REQUIREMENTS OF

THIS SUBSECTION OR ANY OTHER PROVISION OF THIS PART.

(7) A REQUEST FOR A CONDITIONAL LICENSE UNDER THIS

SUBSECTION SHALL INCLUDE PAYMENT OF A $1,000 FEE, WHICH FEE

SHALL BE IN ADDITION TO THE APPLICABLE FEE REQUIRED UNDER

SECTION 4101.

(D) OTHER CONDITIONAL LICENSES.--

(1) WITHIN 90 DAYS AFTER THE EFFECTIVE DATE OF THIS

SECTION, THE BOARD SHALL MAKE APPLICATIONS AVAILABLE FOR ANY

OTHER LICENSE REQUIRED UNDER THIS PART.

(2) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO AN

APPLICANT IF THE APPLICANT SATISFIES, AS DETERMINED BY THE

BOARD, ALL OF THE FOLLOWING CRITERIA:

(I) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

FELONY IN ANY JURISDICTION.

(II) THE APPLICANT IS CURRENT ON ALL STATE TAXES.

(III) THE APPLICANT HAS SUBMITTED A COMPLETED

APPLICATION FOR LICENSURE, WHICH MAY BE SUBMITTED

CONCURRENTLY WITH THE APPLICANT'S REQUEST FOR A

CONDITIONAL LICENSE.

(IV) THE APPLICANT HAS NEVER BEEN CONVICTED OF A

GAMBLING LAW VIOLATION IN ANY JURISDICTION.

(3) (I) THE BOARD SHALL ISSUE A CONDITIONAL LICENSE TO

20170HB0271PN1942 - 594 -

AN APPLICANT WITHIN 60 DAYS AFTER THE COMPLETED

APPLICATION HAS BEEN RECEIVED BY THE BOARD, PROVIDED THAT

THE BOARD DETERMINES THAT THE CRITERIA CONTAINED IN

PARAGRAPH (2) HAS BEEN SATISFIED.

(II) IF THE BOARD DETERMINES THAT THE CRITERIA

CONTAINED IN PARAGRAPH (2) HAS NOT BEEN SATISFIED, THE

BOARD SHALL GIVE A WRITTEN EXPLANATION TO THE APPLICANT

AS TO WHY IT HAS DETERMINED THE CRITERIA HAS NOT BEEN

SATISFIED.

(4) A CONDITIONAL LICENSE SHALL BE VALID UNTIL:

(I) THE BOARD EITHER APPROVES OR DENIES THE

APPLICANT'S APPLICATION FOR LICENSURE;

(II) THE CONDITIONAL LICENSE IS TERMINATED FOR A

VIOLATION OF THIS PART; OR

(III) ONE CALENDAR YEAR HAS PASSED SINCE THE

CONDITIONAL LICENSE WAS ISSUED.

(5) THE BOARD MAY EXTEND THE DURATION OF THE CONDITIONAL

LICENSE FOR ONE CALENDAR YEAR.

(6) AN APPLICANT SHALL ATTEST BY WAY OF AFFIDAVIT UNDER

PENALTY OF PERJURY THAT THE APPLICANT IS NOT OTHERWISE

PROHIBITED FROM LICENSURE ACCORDING TO THE REQUIREMENTS OF

THIS SUBSECTION OR ANY OTHER PROVISION OF THIS PART.

(7) A REQUEST FOR CONDITIONAL LICENSURE UNDER THIS

SUBSECTION SHALL INCLUDE PAYMENT OF A $100 FEE, WHICH FEE

SHALL BE IN ADDITION TO THE APPLICABLE FEE REQUIRED UNDER

SECTION 4101.

(E) PRIORITIZATION PROHIBITED.--

(1) THE BOARD MAY NOT UTILIZE THE ALTERNATIVE LICENSING

STANDARDS FOR A TERMINAL OPERATOR LICENSE, MANUFACTURER

LICENSE OR A SUPPLIER LICENSE UNDER SECTIONS 3511 (RELATING

20170HB0271PN1942 - 595 -

TO ALTERNATIVE TERMINAL OPERATOR LICENSING STANDARDS), 3512

(RELATING TO ALTERNATIVE MANUFACTURER LICENSING STANDARDS)

AND 3513 (RELATING TO ALTERNATIVE SUPPLIER LICENSING

STANDARDS) TO PRIORITIZE THE ISSUANCE OF A TERMINAL OPERATOR,

MANUFACTURER OR SUPPLIER LICENSE UNDER THIS CHAPTER.

(2) THE BOARD SHALL ENSURE THAT APPLICATIONS MADE TO THE

BOARD ACCORDING TO THE ALTERNATIVE STANDARDS UNDER SECTIONS

3511, 3512 AND 3513 ARE NOT APPROVED OR DENIED IN A TIME

PERIOD THAT IS LESS THAN THE TIME PERIOD IN WHICH AN

APPLICATION FOR A CONDITIONAL LICENSE IS APPROVED OR DENIED

UNDER THIS SECTION.

(F) INCOMPLETE APPLICATIONS.--IF THE BOARD RECEIVES AN

APPLICATION THAT IS INCOMPLETE, THE BOARD SHALL, WITHIN SEVEN

DAYS OF RECEIVING THE INCOMPLETE APPLICATION, NOTIFY THE

APPLICANT OF ADDITIONAL INFORMATION REQUIRED BY THE BOARD.

CHAPTER 37

OPERATION

3701. TESTING AND CERTIFICATION OF TERMINALS.

3702. VIDEO GAMING LIMITATIONS.

3703. HOURS OF OPERATION.

3704. TERMINAL PLACEMENT AGREEMENTS.

3705. DUTIES OF LICENSEES.

3706. COMPULSIVE AND PROBLEM GAMBLING.

§ 3701. TESTING AND CERTIFICATION OF TERMINALS.

(A) GENERAL RULE.--NO VIDEO GAMING TERMINAL OR REDEMPTION

TERMINAL OR ASSOCIATED EQUIPMENT MAY BE MADE AVAILABLE FOR USE

IN THIS COMMONWEALTH PRIOR TO BEING TESTED AND CERTIFIED BY THE

BOARD IN ACCORDANCE WITH THIS SECTION.

(B) VIDEO GAMING TERMINAL SPECIFICATIONS.--VIDEO GAMING

TERMINALS SHALL BE TESTED AND CERTIFIED TO MEET THE FOLLOWING

20170HB0271PN1942 - 596 -

SPECIFICATIONS:

(1) THE VIDEO GAMING TERMINAL SHALL HAVE THE ABILITY TO

BE LINKED TO THE CENTRAL CONTROL COMPUTER.

(2) THE VIDEO GAMING TERMINAL SHALL BE MARKED WITH AN

IRREMOVABLE IDENTIFICATION PLATE THAT IS PLACED IN A

CONSPICUOUS LOCATION ON THE EXTERIOR OF THE VIDEO GAMING

TERMINAL. THE IDENTIFICATION PLATE SHALL CONTAIN THE NAME OF

THE MANUFACTURER AND THE SERIAL AND MODEL NUMBERS OF THE

VIDEO GAMING TERMINAL.

(3) THE VIDEO GAMING TERMINAL SHALL PROMINENTLY DISPLAY

THE RULES OF PLAY EITHER ON THE VIDEO GAMING TERMINAL FACE OR

SCREEN.

(4) THE VIDEO GAMING TERMINAL MAY NOT HAVE THE ABILITY

TO DISPENSE CASH, TOKENS OR ANYTHING OF VALUE, EXCEPT

REDEMPTION TICKETS WHICH SHALL ONLY BE EXCHANGEABLE FOR CASH

AT A REDEMPTION TERMINAL OR REINSERTED INTO ANOTHER VIDEO

GAMING TERMINAL LOCATED IN THE SAME VIDEO GAMING AREA AS THE

VIDEO GAMING TERMINAL.

(5) THE COST OF A CREDIT SHALL ONLY BE 1 ¢ , 5 ¢ , 10 ¢ OR

25 ¢ .

(6) THE MAXIMUM WAGER PER INDIVIDUAL GAME SHALL NOT

EXCEED $5.

(7) THE MAXIMUM PRIZE PER INDIVIDUAL GAME SHALL NOT

EXCEED $1,000.

(8) THE VIDEO GAMING TERMINAL SHALL BE DESIGNED AND

MANUFACTURED WITH TOTAL ACCOUNTABILITY TO INCLUDE GROSS

PROCEEDS, NET PROFITS, WINNING PERCENTAGES AND OTHER

INFORMATION THE BOARD REQUIRES.

(9) THE VIDEO GAMING TERMINAL SHALL PAY OUT A MINIMUM OF

85% OF THE AMOUNT WAGERED.

20170HB0271PN1942 - 597 -

(10) OTHER SPECIFICATIONS THE BOARD REQUIRES.

TERMINALS SHALL BE TESTED AND CERTIFIED TO MEET THE FOLLOWING

SPECIFICATIONS:

(1) THE REDEMPTION TERMINAL SHALL BE MARKED WITH AN

IRREMOVABLE IDENTIFICATION PLATE THAT IS PLACED IN A

CONSPICUOUS LOCATION ON THE EXTERIOR OF THE REDEMPTION

TERMINAL. THE IDENTIFICATION PLATE SHALL CONTAIN THE NAME OF

THE MANUFACTURER AND THE SERIAL AND MODEL NUMBERS OF THE

REDEMPTION TERMINAL.

(2) THE REDEMPTION TERMINAL SHALL ONLY ACCEPT REDEMPTION

TICKETS FROM VIDEO GAMING TERMINALS LOCATED IN THE SAME VIDEO

GAMING AREA.

(3) THE REDEMPTION TERMINAL SHALL BE DESIGNED AND

MANUFACTURED WITH TOTAL ACCOUNTABILITY TO RECORD INFORMATION

THE BOARD REQUIRES.

(4) OTHER SPECIFICATIONS THE BOARD REQUIRES.

(D) USE OF OTHER STATE STANDARDS.--

(1) THE BOARD MAY DETERMINE, IN ITS DISCRETION, WHETHER

THE VIDEO GAMING TERMINAL OR REDEMPTION TERMINAL TESTING AND

CERTIFICATION STANDARDS OF ANOTHER JURISDICTION WITHIN THE

UNITED STATES IN WHICH A MANUFACTURER LICENSEE IS LICENSED

ARE COMPREHENSIVE AND THOROUGH AND PROVIDE SIMILAR ADEQUATE

SAFEGUARDS AS THOSE REQUIRED BY THIS PART.

(2) IF THE BOARD MAKES THAT DETERMINATION, THE BOARD MAY

PERMIT A MANUFACTURER LICENSEE THROUGH A LICENSED SUPPLIER TO

DEPLOY THOSE VIDEO GAMING TERMINALS OR REDEMPTION TERMINALS

WHICH HAVE MET THE VIDEO GAMING TERMINAL OR REDEMPTION

TERMINAL TESTING AND CERTIFICATION STANDARDS IN SUCH OTHER

JURISDICTIONS WITHOUT UNDERGOING THE FULL TESTING AND

20170HB0271PN1942 - 598 -

CERTIFICATION PROCESS BY THE BOARD'S TESTING FACILITY.

(3) IN THE EVENT VIDEO GAMING TERMINALS OR REDEMPTION

TERMINALS OF A MANUFACTURER LICENSEE ARE LICENSED IN THE

OTHER JURISDICTION, THE BOARD MAY DETERMINE TO USE AN

ABBREVIATED PROCESS REQUIRING ONLY THAT INFORMATION

DETERMINED BY THE BOARD TO BE NECESSARY TO CONSIDER THE

ISSUANCE OF A VIDEO GAMING TERMINAL OR REDEMPTION TERMINAL

CERTIFICATION TO SUCH AN APPLICANT.

(E) PRIVATE TESTING.--THE BOARD MAY, IN ITS DISCRETION, RELY

UPON THE CERTIFICATION OF A VIDEO GAMING TERMINAL OR REDEMPTION

TERMINAL THAT HAS MET THE TESTING AND CERTIFICATION STANDARDS OF

ONE OR MORE BOARD-APPROVED INDEPENDENT PRIVATE TESTING AND

CERTIFICATION FACILITIES.

(F) TESTING AND CERTIFICATION FEE.--

(1) A FEE FOR THE TESTING AND CERTIFICATION OF A VIDEO

GAMING TERMINAL OR REDEMPTION TERMINAL SHALL BE PAID BY THE

MANUFACTURER LICENSEE SUBMITTING THE TERMINAL, WHICH FEE

SHALL BE AN AMOUNT ESTABLISHED BY THE BOARD ACCORDING TO A

SCHEDULE ADOPTED BY THE BOARD.

(2) FEES ESTABLISHED BY THE BOARD SHALL BE EXEMPT FROM

ANY FEE LIMITATION CONTAINED IN SECTION 4101 (RELATING TO

FEES).

(G) CENTRAL CONTROL COMPUTER COMPATIBILITY.--THE BOARD SHALL

ENSURE THAT ALL VIDEO GAMING TERMINALS CERTIFIED AND APPROVED

FOR USE IN THIS COMMONWEALTH ARE COMPATIBLE AND COMPLY WITH THE

CENTRAL CONTROL COMPUTER AND PROTOCOL SPECIFICATIONS APPROVED BY

THE DEPARTMENT.

§ 3702. VIDEO GAMING LIMITATIONS.

(A) ESTABLISHMENT LICENSEE LIMITATIONS.--AN ESTABLISHMENT

LICENSEE MAY OFFER VIDEO GAMING TERMINALS FOR PLAY WITHIN ITS

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PREMISES, SUBJECT TO THE FOLLOWING:

(1) NO MORE THAN THE FOLLOWING NUMBER OF VIDEO GAMING

TERMINALS MAY BE PLACED ON THE PREMISES OF THE ESTABLISHMENT

LICENSEE:

(I) FOR AN ESTABLISHMENT LICENSEE THAT IS A TRUCK

STOP ESTABLISHMENT, NO MORE THAN 10 VIDEO GAMING

TERMINALS.

(II) FOR AN ESTABLISHMENT LICENSEE THAT IS NOT A

TRUCK STOP ESTABLISHMENT OR NONPRIMARY LOCATION, NO MORE

THAN FIVE VIDEO GAMING TERMINALS.

(2) REDEMPTION TICKETS SHALL ONLY BE EXCHANGED FOR CASH

THROUGH A REDEMPTION TERMINAL OR REINSERTED INTO ANOTHER

VIDEO GAMING TERMINAL IN THE SAME VIDEO GAMING AREA OR AS

OTHERWISE AUTHORIZED BY THE BOARD IN THE EVENT OF A FAILURE

OR MALFUNCTION IN A REDEMPTION TERMINAL, AND AT LEAST ONE

REDEMPTION TERMINAL SHALL BE LOCATED IN THE VIDEO GAMING

AREA.

(3) VIDEO GAMING TERMINALS LOCATED ON THE PREMISES OF

THE ESTABLISHMENT LICENSEE SHALL BE PLACED AND OPERATED BY A

TERMINAL OPERATOR LICENSEE PURSUANT TO A TERMINAL PLACEMENT

AGREEMENT.

(4) NO VIDEO GAMING AREA MAY BE LOCATED IN AN AREA THAT

IS NOT PROPERLY SEGREGATED FROM MINORS.

(5) THE ENTRANCE TO THE VIDEO GAMING AREA SHALL BE

SECURE AND EASILY SEEN AND OBSERVED BY AT LEAST ONE EMPLOYEE.

(6) THE VIDEO GAMING AREA SHALL AT ALL TIMES BE

MONITORED BY AN EMPLOYEE OF THE ESTABLISHMENT LICENSEE EITHER

DIRECTLY OR THROUGH LIVE MONITORING OF VIDEO SURVEILLANCE.

THE EMPLOYEE MUST BE AT LEAST 18 YEARS OF AGE AND HAVE

COMPLETED THE MANDATORY TRAINING PROGRAM REQUIRED IN SECTION

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3706 (RELATING TO COMPULSIVE AND PROBLEM GAMBLING).

(7) NO ESTABLISHMENT LICENSEE MAY PROVIDE AN INCENTIVE.

(8) NO MINOR SHALL BE PERMITTED TO PLAY A VIDEO GAMING

TERMINAL OR ENTER THE VIDEO GAMING AREA.

(9) NO VISIBLY INTOXICATED PERSON SHALL BE PERMITTED TO

PLAY A VIDEO GAMING TERMINAL.

(10) NO ESTABLISHMENT LICENSEE MAY EXTEND CREDIT OR

ACCEPT A CREDIT CARD OR DEBIT CARD FOR PLAY OF A VIDEO GAMING

TERMINAL.

(11) NO ESTABLISHMENT LICENSEE MAY MAKE STRUCTURAL

ALTERATIONS OR SIGNIFICANT RENOVATIONS TO A VIDEO GAMING AREA

UNLESS THE ESTABLISHMENT LICENSEE HAS NOTIFIED THE TERMINAL

OPERATOR LICENSEE AND OBTAINED PRIOR APPROVAL FROM THE BOARD.

(12) NO ESTABLISHMENT LICENSEE MAY MOVE A VIDEO GAMING

TERMINAL OR REDEMPTION TERMINAL AFTER INSTALLATION BY A

TERMINAL OPERATOR LICENSEE.

(B) TERMINAL OPERATOR LICENSEE LIMITATIONS.--A TERMINAL

OPERATOR LICENSEE MAY PLACE AND OPERATE VIDEO GAMING TERMINALS

ON THE PREMISES OF AN ESTABLISHMENT LICENSEE, SUBJECT TO THE

FOLLOWING:

(1) NO MORE THAN THE FOLLOWING NUMBER OF VIDEO GAMING

TERMINALS MAY BE PLACED ON THE PREMISES OF THE ESTABLISHMENT

LICENSEE:

(I) FOR AN ESTABLISHMENT LICENSEE THAT IS A TRUCK

STOP ESTABLISHMENT, NO MORE THAN 10 VIDEO GAMING

TERMINALS.

(II) FOR AN ESTABLISHMENT LICENSEE THAT IS NOT A

TRUCK STOP ESTABLISHMENT OR NONPRIMARY LOCATION, NO MORE

THAN FIVE VIDEO GAMING TERMINALS.

(2) REDEMPTION TICKETS SHALL ONLY BE EXCHANGED FOR CASH

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THROUGH A REDEMPTION TERMINAL LOCATED WITHIN THE SAME VIDEO

GAMING AREA OR REINSERTED INTO ANOTHER VIDEO GAMING TERMINAL

LOCATED IN THE SAME VIDEO GAMING AREA AS THE VIDEO GAMING

TERMINAL.

(3) VIDEO GAMING TERMINALS LOCATED ON THE PREMISES OF

THE ESTABLISHMENT LICENSEE SHALL BE PLACED AND OPERATED

PURSUANT TO A TERMINAL PLACEMENT AGREEMENT.

(4) NO TERMINAL OPERATOR LICENSEE MAY PROVIDE AN

INCENTIVE.

(5) NO TERMINAL OPERATOR LICENSEE MAY PLACE AND OPERATE

VIDEO GAMING TERMINALS WITHIN A LICENSED FACILITY.

(6) NO TERMINAL OPERATOR LICENSEE MAY EXTEND CREDIT OR

ACCEPT A CREDIT CARD OR DEBIT CARD FOR PLAY OF A VIDEO GAMING

TERMINAL.

(7) NO TERMINAL OPERATOR LICENSEE MAY GIVE OR OFFER TO

GIVE, DIRECTLY OR INDIRECTLY, ANY TYPE OF INDUCEMENT TO AN

ESTABLISHMENT TO SECURE OR MAINTAIN A TERMINAL PLACEMENT

AGREEMENT.

(8) NO TERMINAL OPERATOR LICENSEE MAY GIVE AN

ESTABLISHMENT LICENSEE A PERCENTAGE OF GROSS TERMINAL REVENUE

OTHER THAN 26% OF THE GROSS TERMINAL REVENUE OF THE VIDEO

GAMING TERMINALS OPERATING IN THE ESTABLISHMENT LICENSEE'S

PREMISES.

(9) A TERMINAL OPERATOR LICENSEE SHALL ONLY OPERATE,

INSTALL OR OTHERWISE MAKE AVAILABLE FOR PUBLIC USE A VIDEO

GAMING TERMINAL OR REDEMPTION TERMINAL THAT HAS BEEN OBTAINED

FROM A SUPPLIER LICENSEE.

(10) NO TERMINAL OPERATOR LICENSEE MAY MAKE STRUCTURAL

ALTERATIONS OR SIGNIFICANT RENOVATIONS TO A VIDEO GAMING AREA

UNLESS THE TERMINAL OPERATOR LICENSEE HAS NOTIFIED THE

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ESTABLISHMENT LICENSEE AND OBTAINED PRIOR APPROVAL FROM THE

BOARD.

(11) NO TERMINAL OPERATOR LICENSEE MAY MOVE A VIDEO

GAMING TERMINAL OR REDEMPTION TERMINAL AFTER INSTALLATION

UNLESS PRIOR APPROVAL IS OBTAINED FROM THE BOARD.

§ 3703. HOURS OF OPERATION.

(A) LIQUOR ESTABLISHMENTS.--AN ESTABLISHMENT LICENSEE THAT

IS ALSO A LIQUOR ESTABLISHMENT MAY ONLY PERMIT THE PLAY OF VIDEO

GAMING TERMINALS DURING THE HOURS IN WHICH THE LIQUOR

ESTABLISHMENT IS AUTHORIZED BY THE PENNSYLVANIA LIQUOR CONTROL

BOARD TO SELL ALCOHOLIC BEVERAGES.

(B) OTHER ESTABLISHMENTS.--AN ESTABLISHMENT LICENSEE THAT IS

ALSO A TRUCK STOP ESTABLISHMENT MAY PERMIT PLAY OF VIDEO GAMING

TERMINALS DURING NORMAL BUSINESS HOURS.

§ 3704. TERMINAL PLACEMENT AGREEMENTS.

(A) GENERAL RULE.--EXCEPT AS PROVIDED FOR IN SUBSECTION (J),

NO TERMINAL OPERATOR LICENSEE MAY PLACE AND OPERATE VIDEO GAMING

TERMINALS ON THE PREMISES OF AN ESTABLISHMENT LICENSEE UNLESS

PURSUANT TO A TERMINAL PLACEMENT AGREEMENT APPROVED BY THE

BOARD. APPROVAL SHALL BE PRESENTED UPON CONNECTION OF ONE OR

MORE VIDEO GAMING TERMINALS AT THE ESTABLISHMENT LICENSEE TO THE

CENTRAL CONTROL COMPUTER.

(B) FORM OF AGREEMENT.--THE BOARD SHALL ESTABLISH THROUGH

REGULATION MINIMUM STANDARDS FOR TERMINAL PLACEMENT AGREEMENTS.

SHALL BE VALID FOR A MINIMUM 60-MONTH TERM BUT SHALL NOT EXCEED

A 120-MONTH TERM.

(D) PROVISIONS REQUIRED.--A TERMINAL PLACEMENT AGREEMENT

SHALL INCLUDE A PROVISION THAT:

(1) RENDERS THE AGREEMENT INVALID IF EITHER THE TERMINAL

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OPERATOR LICENSE OR TERMINAL OPERATOR APPLICATION OR THE

ESTABLISHMENT LICENSE OR ESTABLISHMENT LICENSEE APPLICATION

IS DENIED, REVOKED, NOT RENEWED, WITHDRAWN OR SURRENDERED.

(2) PROVIDES THE ESTABLISHMENT LICENSEE NO MORE OR LESS

THAN 26% OF GROSS TERMINAL REVENUE FROM EACH VIDEO GAMING

TERMINAL LOCATED ON THE PREMISES OF THE ESTABLISHMENT

LICENSEE.

(3) IDENTIFIES WHO SOLICITED THE TERMINAL PLACEMENT

AGREEMENT ON BEHALF OF A TERMINAL OPERATOR LICENSEE OR

APPLICANT.

(E) PROCUREMENT AGENT.--NO PERSON MAY BE COMPENSATED FOR THE

SOLICITATION OR PROCUREMENT OF A TERMINAL PLACEMENT AGREEMENT ON

BEHALF OF A TERMINAL OPERATOR LICENSEE OR APPLICANT.

(F) PARTIES TO AGREEMENT.--ONLY AN ESTABLISHMENT LICENSEE OR

APPLICANT MAY SIGN OR AGREE TO SIGN A TERMINAL PLACEMENT

AGREEMENT WITH AN APPLICANT FOR A TERMINAL OPERATOR LICENSE OR A

TERMINAL OPERATOR LICENSEE.

(G) VOID AGREEMENTS.--AN AGREEMENT ENTERED INTO BY AN

ESTABLISHMENT PRIOR TO THE EFFECTIVE DATE OF THIS SECTION WITH A

PERSON OR ENTITY FOR THE PLACEMENT, OPERATION, SERVICE OR

MAINTENANCE OF VIDEO GAMING TERMINALS, INCLUDING AN AGREEMENT

GRANTING A PERSON OR ENTITY THE RIGHT TO ENTER INTO AN AGREEMENT

OR MATCH ANY OFFER MADE AFTER THE EFFECTIVE DATE OF THIS SECTION

SHALL BE VOID AND MAY NOT BE APPROVED BY THE BOARD.

(H) TRANSFERABILITY OF AGREEMENTS.--NO TERMINAL PLACEMENT

AGREEMENT MAY BE TRANSFERRED OR ASSIGNED UNLESS THE INDIVIDUAL

OR ENTITY MAKING THE ASSIGNMENT IS EITHER A TERMINAL OPERATOR

APPLICANT OR LICENSEE AND THE INDIVIDUAL OR ENTITY RECEIVING THE

ASSIGNMENT OF THE TERMINAL PLACEMENT AGREEMENT IS EITHER A

TERMINAL OPERATOR APPLICANT OR LICENSEE UNDER THIS CHAPTER.

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§ 3705. DUTIES OF LICENSEES.

A PERSON ISSUED A LICENSE UNDER THIS PART SHALL:

(1) PROVIDE ASSISTANCE OR INFORMATION REQUIRED BY THE

BOARD, THE BUREAU OR THE PENNSYLVANIA STATE POLICE AND TO

COOPERATE IN INQUIRIES, INVESTIGATIONS AND HEARINGS.

(2) CONSENT TO INSPECTIONS, SEARCHES AND SEIZURES.

(3) INFORM THE BOARD OF ACTIONS THAT THE PERSON BELIEVES

WOULD CONSTITUTE A VIOLATION OF THIS PART.

(4) INFORM THE BOARD OF ARRESTS FOR VIOLATIONS OF

OFFENSES ENUMERATED UNDER 18 PA.C.S. (RELATING TO CRIMES AND

OFFENSES).

§ 3706. COMPULSIVE AND PROBLEM GAMBLING.

(A) REQUIRED POSTING.--

(1) AN ESTABLISHMENT LICENSEE SHALL CONSPICUOUSLY POST

SIGNS SIMILAR TO THE FOLLOWING STATEMENT:

IF YOU OR SOMEONE YOU KNOW HAS A GAMBLING PROBLEM,

HELP IS AVAILABLE. CALL (TOLL-FREE TELEPHONE NUMBER)

OR TEXT (TOLL-FREE TELEPHONE NUMBER).

(2) AT LEAST ONE SIGN SHALL BE POSTED WITHIN THE VIDEO

GAMING AREA AND AT LEAST ONE SIGN SHALL BE POSTED WITHIN FIVE

FEET OF EACH AUTOMATED TELLER MACHINE LOCATED WITHIN THE

ESTABLISHMENT LICENSEE'S PREMISES, IF APPLICABLE.

(B) TOLL-FREE TELEPHONE NUMBER.--THE TOLL-FREE TELEPHONE

NUMBER REQUIRED TO BE POSTED IN SUBSECTION (A) SHALL BE THE SAME

NUMBER MAINTAINED BY THE DEPARTMENT OF DRUG AND ALCOHOL PROGRAMS

OR SUCCESSOR AGENCY UNDER SECTION 3310 (RELATING TO DEPARTMENT

OF DRUG AND ALCOHOL PROGRAMS).

(1) AN ESTABLISHMENT LICENSEE SHALL HAVE AVAILABLE IN

ITS ESTABLISHMENT ACCESS TO MATERIALS REGARDING COMPULSIVE

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AND PROBLEM GAMBLING ASSISTANCE.

(2) THE AVAILABLE MATERIALS REQUIRED BY PARAGRAPH (1)

SHALL BE A UNIFORM, STATEWIDE HANDOUT DEVELOPED BY THE BOARD

IN CONSULTATION WITH THE DEPARTMENT OF DRUG AND ALCOHOL

PROGRAMS OR SUCCESSOR AGENCY.

(3) THE AVAILABLE MATERIALS REQUIRED BY PARAGRAPH (1)

SHALL BE DISPLAYED CONSPICUOUSLY AT LEAST WITHIN THE VIDEO

GAMING AREA.

(D) MANDATORY TRAINING.--

(1) THE BOARD'S OFFICE OF COMPULSIVE AND PROBLEM

GAMBLING, IN CONSULTATION WITH THE DEPARTMENT OF DRUG AND

ALCOHOL PROGRAMS OR SUCCESSOR AGENCY, SHALL DEVELOP A

MANDATORY TRAINING PROGRAM FOR EMPLOYEES AND MANAGEMENT OF AN

ESTABLISHMENT LICENSEE WHO OVERSEE THE LICENSEE'S VIDEO

GAMING AREA. THE TRAINING PROGRAM SHALL ADDRESS RESPONSIBLE

GAMING AND OTHER COMPULSIVE AND PROBLEM GAMBLING ISSUES