See other bills
under the
same topic
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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(c) Exceptions.--Except as provided under section 342
(relating to licensed gaming entities), nothing in this section
shall be construed to authorize the board:
(1) To require background investigations for employees,
other than key employees and principals, of an applicant for
a fantasy contest license or a licensed operator.
(2) To require additional permits or licenses not
specifically enumerated in this chapter.
(3) To impose additional conditions of licensure on
licensed operators or prohibitions on the operation of
fantasy contests not specifically enumerated in this chapter.
(d) Additional powers.--The board may develop additional
classifications, investigations and conditions as it deems
appropriate.
§ 312. Temporary regulations.
(a) Promulgation.--In order to facilitate the prompt
implementation of this chapter, regulations promulgated by the
board shall be deemed temporary regulations and shall expire no
later than two years following publication. The board may
promulgate temporary regulations not subject to:
(1) Sections 201, 202 and 203 of the act of July 31,
1968 (P.L.769, No.240), referred to as the Commonwealth
Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Expiration.--Except for temporary regulations concerning
new fantasy contests or variations of approved fantasy contests,
network connectivity, security and testing and compulsive and
problem play, the authority provided to the board to adopt
temporary regulations in subsection (a) shall expire no later
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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.
(c) Other files and records.--The board shall maintain other
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.
(c) Additional information.--A person applying for a fantasy
contest license shall have the continuing duty to provide
information required by the board and to cooperate in any
inquiry or investigation.
(d) Abbreviated application process.--The board, at its
discretion, may establish an abbreviated application process for
a fantasy contest license for persons that are also licensed
gaming entities. The abbreviated application may only require
information not in possession of the board that is necessary to
fulfill the requirements of this chapter.
§ 323. Issuance and denial of license.
(a) Duty to review applications.--The board shall review all
applications for a license and shall issue a license to any
applicant that:
(1) Has submitted a completed application and paid the
nonrefundable application fee as required by the board under
section 322 (relating to application).
(2) Has demonstrated that the applicant has the
financial stability, integrity and responsibility to comply
with the provisions of this chapter and regulations
established by the board.
(3) Has not been denied a license under subsection (b).
(b) Reasons to deny applications.--The board may deny an
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.
(c) Time period for review.--The board shall conclude its
review of an application for a fantasy contest license within
180 days of receipt of the completed application. If the license
is not issued, the board shall provide the applicant with the
justification for not issuing a license with specificity.
(d) License fee.--
(1) Within 30 days of the board issuing a fantasy
contest license, an applicant shall pay to the board a
license fee of $50,000 or an amount equivalent to 7.5% of the
applicant's fantasy contest adjusted revenues for the
previous calendar year, whichever is less, except that an
applicant who is also a licensed gaming entity shall pay to
the board a license fee of $50,000. The minimum amount of the
license fee shall be $5,000.
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(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.
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