PRINTER'S NO. 1044
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
843
Session of
2021
INTRODUCED BY FONTANA, AUGUST 30, 2021
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
AUGUST 30, 2021
AN ACT
Amending Title 4 (Amusements) of the Pennsylvania Consolidated
Statutes, in sports wagering, further providing for
definitions, for petition requirements, for standard for
review of petitions, for award of certificate and for sports
wagering certificate, providing for tavern sports wagering
kiosk placement agreements and further providing for
authorized locations for operation and for sports wagering
authorization fee.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "sports wagering certificate,"
"sports wagering certificate holder" and "sports wagering
device" in section 13C01 of Title 4 of the Pennsylvania
Consolidated Statutes are amended and the section is amended by
adding definitions to read:
§ 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:
* * *
"Placement agreement." The formal written agreement or
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contract between an applicant for a tavern sports wagering
certificate and a licensed tavern that establishes the terms and
conditions regarding the conduct of tavern sports wagering
through the use of a tavern sports wagering kiosk.
"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 using a tavern sports wagering kiosk.
* * *
"Sports wagering certificate." A certificate awarded by the
board under this chapter that authorizes a slot machine licensee
to conduct sports wagering and tavern sports wagering in
accordance with this chapter.
"Sports wagering certificate holder." A slot machine
licensee to whom the board has awarded a sports wagering
certificate or a tavern sports wagering certificate.
"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 or wagering on a
tavern sports wagering kiosk.
"Tavern." A restaurant licensee or club licensee with a
valid license to sell liquor and malt or brewed beverages under
the act of April 12, 1951 (P.L.90, No.21), known as the Liquor
Code.
"Tavern sports wagering certificate." A certificate awarded
by the board under this chapter that authorizes a slot machine
licensee to enter placement agreements and conduct sports
wagering and tavern sports wagering in accordance with this
chapter through the use of a tavern sports wagering kiosk.
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"Tavern sports wagering kiosk." As follows:
(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
conduct sports wagering and may:
(i) Award a winning player either a credit that
shall only be redeemable for cash or cash equivalents at
a redemption terminal operated by the licensee or at the
licensee's licensed facility.
(ii) Utilize video displays.
(iii) Use an electronic credit system for receiving
wagers and making payouts that are only redeemable at a
redemption terminal or at the licensee's licensed
facility.
(2) The term includes associated equipment necessary to
conduct the operation of the contrivance, terminal, machine
or other device described in paragraph (1).
(3) A tavern sports wagering kiosk shall have 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).
Section 2. Section 13C12(b) heading and (c) of Title 4 are
amended and the section is amended by adding a subsection to
read:
§ 13C12. Petition requirements.
* * *
(b) Petition contents regarding sports wagering.--* * *
(b.1) Petition contents regarding tavern sports wagering.--A
petition seeking authorization to conduct tavern sports wagering
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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 tavern
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) A brief description of the economic benefits
expected to be realized by the Commonwealth, its
municipalities and its residents if tavern sports wagering is
authorized at a licensed tavern.
(5) The details of any financing obtained or that will
be obtained to fund an expansion or modification of the
licensed facility or tavern to accommodate tavern sports
wagering and to otherwise fund the cost of commencing tavern
sports wagering.
(6) 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.
(7) 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 tavern sports wagering
operation.
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(8) 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 13C61.
(9) Detailed site plans identifying the petitioner's
proposed tavern sports wagering area within the licensed
facility.
(10) Other information as the board may require.
(c) Confidentiality.--Information submitted to the board
under [subsection] subsections (b)(4), (5), (6), (7) and (8) and
(b.1)(5), (6), (7), (8) and (9) may be considered confidential
by the board if the information would be confidential under
section 1206(f) (relating to board minutes and records).
Section 3. Section 13C13(a)(3) and (4) of Title 4 are
amended and the subsection is amended by adding paragraphs to
read:
§ 13C13. 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:
* * *
(2.1) The conduct of tavern sports wagering at a
licensed tavern detailed in the petition will increase
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.
( i.1) Fund any necessary expansion or modification
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of the licensed tavern to accommodate the conduct of
tavern sports wagering.
(ii) Pay the authorization fee in accordance with
section 13C61 (relating to sports wagering authorization
fee).
(iii) Commence sports wagering operations at its
licensed facility or at a licensed tavern.
(4) The petitioner has the financial stability,
integrity and responsibility to conduct sports wagering and
tavern sports wagering.
* * *
( 6.1) The petitioner's proposed internal and external
security and proposed surveillance measures within the area
of the licensed tavern where the petitioner seeks to conduct
tavern sports wagering are adequate.
* * *
Section 4. Sections 13C14 and 13C15 of Title 4 are amended
to read:
§ 13C14. Award of certificate.
(a) General rule.--Upon approval of a petition, the board
shall award a sports wagering certificate or tavern 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 13C61 (relating to sports
wagering authorization fee) shall not relieve the petitioner
from complying with the provisions of section 13C61.
(b) Statement of conditions.--Upon awarding a sports
wagering operation certificate or tavern sports wagering
certificate, the board shall amend the slot machine licensee's
statement of conditions pertaining to the requirements of this
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chapter.
(c) Term of sports wagering certificate.--Subject to the
power of the board to deny, revoke or suspend a sports wagering
certificate or tavern sports wagering certificate issued in
accordance with the requirements of this section, a sports
wagering certificate or tavern 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 or tavern 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 sports
wagering certificate holder or tavern sports wagering
certificate holder is suspended, revoked or not renewed
by the board consistent with the requirements of this
part; or
(iii) the sports wagering certificate holder or
tavern sports wagering certificate holder relinquishes or
does not seek renewal of its slot machine license.
(2) A sports wagering certificate holder or tavern
sports wagering 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.
Section 5. Title 4 is amended by adding a section to read:
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§ 13C17. Tavern sports wagering kiosk placement agreements.
(a) Requirements.--No slot machine licensee may place and
operate tavern sports wagering kiosks on the premises of a
licensed tavern except pursuant to a placement agreement
approved by the board. Approval shall be presented upon
connection of one or more tavern sports wagering kiosks at the
licensed tavern to the central control computer.
(b) Form of agreement.--The board shall establish through
regulation minimum standards for placement agreements.
(c) Length of agreement.--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 slot
machine license, tavern sports wagering certificate or tavern
license application or the slot machine license, tavern
sports wagering certificate or tavern license or
establishment licensee application is denied, revoked, not
renewed, withdrawn or surrendered.
(2) Provides the licensed tavern no more and no less
than 25% of gross terminal revenue from each tavern sports
gaming kiosk located on the premises of the licensed tavern.
(3) Provides the licensed tavern no more and no less
than $100 per month siting fee for the siting of a tavern
sports gaming kiosk on the premises of the licensed tavern.
(4) Identifies who solicited the terminal placement
agreement on behalf of a terminal operator licensee or
applicant.
(e) Parties to agreement.--Only a licensee and licensed
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tavern or applicant may sign or agree to sign a placement
agreement with an applicant for a sports wagering certificate.
(f) Void agreements.--An agreement entered into by a
licensed tavern prior to the effective date of this section with
an individual or entity for the placement, operation, service or
maintenance of a sports wagering kiosk, including an agreement
granting an individual 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.
(g) Transferability of agreements.--No placement agreement
may be transferred or assigned unless the individual or entity
making the assignment is a tavern sports wagering applicant or
licensee and the individual or entity receiving the assignment
of the placement agreement is a licensee under this chapter.
Section 6. Sections 13C21(a) and 13C61 of Title 4 are
amended to read:
§ 13C21. Authorized locations for operation.
(a) Restriction.--A sports wagering certificate holder may
only be permitted to conduct sports wagering at a licensed
facility, a temporary facility authorized under subsection (b),
an area authorized under subsection (c) [or], through an
Internet-based system or through a tavern sports wagering kiosk.
* * *
§ 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 13C11 (relating to authorization to
conduct sports wagering) shall pay a one-time nonrefundable
authorization fee in the amount of $10,000,000.
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(a.1) Amount.--Each slot machine licensee that is issued a
tavern sports wagering certificate to conduct tavern sports
wagering in accordance with section 13C11 shall pay a one-time
nonrefundable authorization fee in the amount of $10,000.
(b) Payment of fee.--A slot machine licensee shall remit the
authorization fee under subsection (a) or (a.1) to the board
within 60 days of the approval of a petition to conduct sports
wagering. Sports wagering may not be conducted until the fee
under subsection (a) is paid in full.
(c) Renewal fee.--Notwithstanding any other provision of
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 and
a fee in the amount of $2,000 upon the renewal of a tavern
sports wagering certificate in accordance with sections 1326
(relating to renewals) and 13C14(c) (relating to award of
certificate).
(d) Failure to pay by deadline.--If a petitioner [or],
sports wagering certificate holder or tavern sports wagering
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 sports wagering
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 or tavern sports wagering
certificate if the sports wagering certificate holder fails to
pay the total authorization fee and the penalty prior to the
expiration of an extension period granted under subsection (d).
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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, tavern sports wagering fees, manufacturer
license fees, manufacturer renewal fees and all fees for
licenses issued under Chapter 16 (relating to junkets) and all
money collected by the board for violations of this subchapter
shall be deposited into the General Fund.
Section 7. This act shall take effect in 60 days.
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