Bill Text: NY S05833 | 2019-2020 | General Assembly | Introduced
Bill Title: Provides for regulation of betting; defines terms; implements a tax equivalent to eight and one-half percent of wagering gross revenue; requires reporting; provides for civil penalties for violations; makes related provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - REFERRED TO RACING, GAMING AND WAGERING [S05833 Detail]
Download: New_York-2019-S05833-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 5833 2019-2020 Regular Sessions IN SENATE May 15, 2019 ___________ Introduced by Sen. GRIFFO -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wager- ing AN ACT to amend the racing, pari-mutuel wagering and breeding law, in relation to regulation of betting The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1367 of the racing, pari-mutuel wagering and breed- 2 ing law, as added by chapter 174 of the laws of 2013, is amended to read 3 as follows: 4 § 1367. [Sports wagering] Wagering. 1. As used in this section: 5 (a) "Agent" means an entity that is party to a contract with a casino 6 authorized to operate a pool and is approved by the commission to oper- 7 ate a pool on behalf of such casino; 8 (b) "Authorized bettor" means an individual who is physically present 9 in this state when placing a wager, who is not a prohibited bettor, that 10 participates in wagering offered by a casino. All wagers placed in 11 accordance with this section are considered placed or otherwise made 12 when received by the operator at the licensed gaming facility, regard- 13 less of the authorized bettor's physical location at the time the wager 14 is initiated. 15 (c) "Casino" means a licensed gaming facility at which gambling is 16 conducted pursuant to the provisions of this article; 17 [(b)] (d) "Commission" means the commission established pursuant to 18 section one hundred two of this chapter; 19 [(c)] (e) "Collegiate sport or athletic event" means a sport or 20 athletic event offered or sponsored by or played in connection with a 21 public or private institution that offers educational services beyond 22 the secondary level; 23 [(d)] (f) "Exchange wagering" means a form of wagering in which an 24 authorized bettor, on the one hand, and one or more authorized bettors, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11741-01-9S. 5833 2 1 a casino or an agent or an operator, on the other hand place identically 2 opposing wagers on an exchange operated by a casino or an agent or an 3 operator; 4 (g) "Global risk management" means the direction, management, consul- 5 tation and/or instruction for purposes of managing risks associated with 6 wagering conducted pursuant to this section and includes the setting and 7 adjustment of betting lines, point spreads, or odds and whether to place 8 layoff bets as permitted by this section; 9 (h) "High school sport or athletic event" means a sport or athletic 10 event offered or sponsored by or played in connection with a public or 11 private institution that offers education services at the secondary 12 level; 13 (i) "In-play wager" means a wager placed on an event after the event 14 has begun and before it ends; 15 (j) "Layoff bet" means a wager placed by a casino pool with another 16 casino pool; 17 (k) "Minor" means any person under the age of twenty-one years; 18 (l) "Official league data" means statistics, results, outcomes, and 19 other data relating to an event that have been obtained from the rele- 20 vant governing body or an entity expressly authorized by the governing 21 body to provide such information to casinos; 22 (m) "Operator" means a casino which has elected to operate a [sports] 23 pool or an Indian Tribe (or an agent of such Indian Tribe) that has 24 entered into a tribal-state gaming compact in accordance with the Indian 25 Gaming Regulatory Act 25 U.S.C. 2710, that is in effect and has been 26 ratified by the state; 27 [(e)] (n) "Professional sport or athletic event" means an event at 28 which two or more persons participate in sports or athletic events and 29 receive compensation in excess of actual expenses for their partic- 30 ipation in such event; 31 [(f)] (o) "Prohibited bettor" means: 32 (i) any officer or employee of the commission; 33 (ii) any principal or key employee of a casino or operator, except as 34 may be permitted by the commission for good cause shown; 35 (iii) any casino gaming or non-gaming employee at the casino that 36 employs such person and at any operator that has an agreement with that 37 casino; 38 (iv) any contractor, subcontractor, or consultant, or officer or 39 employee of a contractor, subcontractor, or consultant, of a casino if 40 such person is directly involved in the operation or observation of 41 wagering, or the processing of wagering claims or payments; 42 (v) any person subject to a contract with the commission if such 43 contract contains a provision prohibiting such person from participating 44 in wagering; 45 (vi) any spouse, child, brother, sister or parent residing as a member 46 of the same household in the principal place of abode of any of the 47 foregoing persons at the same casino where the foregoing person is 48 prohibited from participating in wagering; 49 (vii) any individual with access to non-public confidential informa- 50 tion about wagering; 51 (viii) any amateur or professional athlete if the wager is based on 52 any sport or athletic event overseen by the athlete's sports governing 53 body; 54 (ix) any sports agent, owner or employee of a team, player and umpire 55 union personnel, and employee referee, coach or official of a sportsS. 5833 3 1 governing body, if the wager is based on any sport or athletic event 2 overseen by the individual's sports governing body; 3 (x) any individual placing a wager as an agent or proxy for an other- 4 wise prohibited bettor; or 5 (xi) any minor; 6 (p) "Prohibited sports event" means any collegiate sport or athletic 7 event that takes place in New York or a sport or athletic event in which 8 any New York college team participates regardless of where the event 9 takes place, or high school sport or athletic event; 10 [(g)] (q) "Registered sports governing body" means a sports governing 11 body that is headquartered in the United States and who has registered 12 with the commission to receive royalty fee revenue in such form as the 13 commission may require; 14 (r) "Sports event" means any professional sport or athletic event and 15 any collegiate sport or athletic event, except a prohibited sports event 16 or a horse racing event; 17 [(h) "Sports pool"] (s) "Governing body" means the organization that 18 prescribes final rules and enforces codes of conduct with respect to an 19 event and participants therein; 20 (t) "Pool" means the business of accepting wagers on any [sports] 21 event by any system or method of wagering; [and22(i) "Sports wagering lounge"] (u) "Wager" means cash or cash equiv- 23 alent that is paid by an authorized bettor to a casino to participate in 24 wagering offered by such casino; 25 (v) "Wagering" means wagering on events or any portion thereof, or on 26 the individual performance statistics of participants participating in 27 an event, or combination of events, by in-person communication. The term 28 "wagering" shall include, but is not limited to, single-game bets, teas- 29 er bets, parlays, over-under bets, money line, pools, exchange wagering, 30 in-game wagering, in-play bets, proposition bets and straight bets; 31 (w) "Wagering gross revenue" means: (i) the amount equal to the total 32 of all wagers not attributable to prohibited sports events that an oper- 33 ator collects from all players, less the total of all sums not attribut- 34 able to prohibited sports events paid out as winnings to all bettors, 35 however, that the total of all sums paid out as winnings to bettors 36 shall not include the cash equivalent value of any merchandise or thing 37 of value awarded as a prize, or (ii) in the case of exchange wagering 38 pursuant to this section, the commission on winning wagers by authorized 39 bettors retained by the operator. The issuance to or wagering by author- 40 ized bettors at a casino of any promotional gaming credit shall not be 41 taxable for the purposes of determining wagering gross revenue; 42 (x) "Wagering lounge" means an area wherein a [sports] pool is oper- 43 ated; 44 (y) "Tier one wager" means a wager that is determined solely by the 45 final score or final outcome of the event; 46 (z) "Tier two wager" means an in-play wager that is not a tier one 47 wager; 48 (aa) "Tier three wager" means a wager that is neither a tier one nor a 49 tier two wager; and 50 (bb) "Indian Tribe" means an Indian Tribe (or an agent of such tribe) 51 that has entered into a tribal-state gaming compact in accordance with 52 the Indian Gaming Regulatory Act of 1988 (18 U.S.C. Sec. 1166 to 1168, 53 inclusive, and 25 U.S.C. Sec. 2701 et seq.) which has been ratified by 54 the state. 55 (cc) "Event" means an event other than a horse race or a greyhound 56 race.S. 5833 4 1 2. [No gaming facility may conduct sports wagering until such time as2there has been a change in federal law authorizing such or upon a ruling3of a court of competent jurisdiction that such activity is lawful.43.] (a) In addition to authorized gaming activities, a [licensed5gaming facility] casino may [when authorized by subdivision two of this6section] operate a [sports] pool upon the approval of the commission and 7 in accordance with the provisions of this section and applicable regu- 8 lations promulgated pursuant to this article. The commission shall hear 9 and decide promptly and in reasonable order all applications for a 10 license to operate a [sports] pool, shall have the general responsibil- 11 ity for the implementation of this section and shall have all other 12 duties specified in this section with regard to the operation of a 13 [sports] pool. The license to operate a [sports] pool shall be in addi- 14 tion to any other license required to be issued to operate a [gaming15facility] casino. No license to operate a [sports] pool shall be issued 16 by the commission to any entity unless it has established its financial 17 stability, integrity and responsibility and its good character, honesty 18 and integrity. 19 No later than five years after the date of the issuance of a license 20 and every five years thereafter or within such lesser periods as the 21 commission may direct, a licensee shall submit to the commission such 22 documentation or information as the commission may by regulation 23 require, to demonstrate to the satisfaction of the executive director of 24 the commission that the licensee continues to meet the requirements of 25 the law and regulations. 26 (b) As a condition of licensure the commission shall require that each 27 agent authorized to conduct wagering pay a one-time fee of twelve 28 million dollars. Such fee shall be paid within thirty days of gaming 29 commission approval prior to license issuance and deposited into the 30 commercial gaming revenue fund established pursuant to section thirteen 31 hundred fifty-two of this article. 32 (c) A [sports] pool shall be operated in a [sports] wagering lounge 33 located at a casino. The lounge shall conform to all requirements 34 concerning square footage, design, equipment, security measures and 35 related matters which the commission shall by regulation prescribe. 36 [(c)] (d) The operator of a [sports] pool shall establish or display 37 the odds at which wagers may be placed on [sports] events. 38 [(d)] (e) An operator shall accept wagers on [sports] events only from 39 persons physically present in the [sports] wagering lounge. A person 40 placing a wager shall be at least twenty-one years of age. 41 [(e)] (f) An operator may also accept layoff bets as long as the 42 authorized pool places such wagers with another authorized pool or pools 43 in accordance with regulations of the commission. A pool that places a 44 layoff bet shall inform the pool accepting the wager that the wager is 45 being placed by a pool and shall disclose its identity. 46 (g) An operator may utilize global risk management pursuant to the 47 approval of the commission. 48 (h) An operator shall not admit into the [sports] wagering lounge, or 49 accept wagers from, any person whose name appears on the exclusion list. 50 [(f)] (i) The holder of a license to operate a [sports] pool may 51 contract with [an entity] an agent to conduct any or all aspects of that 52 operation, in accordance with the regulations of the commission. [That53entity] Each agent shall obtain a license as a casino vendor enterprise 54 prior to the execution of any such contract, and such license shall be 55 issued pursuant to the provisions of section one thousand three hundredS. 5833 5 1 twenty-seven of this article and in accordance with the regulations 2 promulgated by the commission. 3 [(g)] (j) If any provision of this article or its application to any 4 person or circumstance is held invalid, the invalidity shall not affect 5 other provisions or applications of this article which can be given 6 effect without the invalid provision or application, and to this end the 7 provisions of this article are severable. 8 [4.] 3. (a) All persons employed directly in wagering-related activ- 9 ities conducted within a [sports] wagering lounge shall be licensed as a 10 casino key employee or registered as a gaming employee, as determined by 11 the commission. All other employees who are working in the [sports] 12 wagering lounge may be required to be registered, if appropriate, in 13 accordance with regulations of the commission. 14 (b) Each operator of a [sports] pool shall designate one or more casi- 15 no key employees who shall be responsible for the operation of the 16 [sports] pool. At least one such casino key employee shall be on the 17 premises whenever [sports] wagering is conducted. 18 [5.] 4. Except as otherwise provided by this article, the commission 19 shall have the authority to regulate [sports] pools and the conduct of 20 [sports] wagering under this article to the same extent that the commis- 21 sion regulates other gaming. No casino shall be authorized to operate a 22 [sports] pool unless it has produced information, documentation, and 23 assurances concerning its financial background and resources, including 24 cash reserves, that are sufficient to demonstrate that it has the finan- 25 cial stability, integrity, and responsibility to operate a [sports] 26 pool. In developing rules and regulations applicable to [sports] wager- 27 ing, the commission shall examine the regulations implemented in other 28 states where [sports] wagering is conducted and shall, as far as practi- 29 cable, adopt a similar regulatory framework. The commission shall 30 promulgate regulations necessary to carry out the provisions of this 31 section, including, but not limited to, regulations governing the: 32 (a) amount of cash reserves to be maintained by operators to cover 33 winning wagers; 34 (b) acceptance of wagers on a series of [sports] events; 35 (c) maximum wagers which may be accepted by an operator from any one 36 patron on any one [sports] event; 37 (d) type of wagering tickets which may be used; 38 (e) method of issuing tickets; 39 (f) method of accounting to be used by operators; 40 (g) types of records which shall be kept; 41 (h) use of credit and checks by patrons; 42 (i) the process by which a casino may place a layoff bet; 43 (j) the use of global risk management; 44 (k) type of system for wagering; and 45 [(j)] (l) protections for a person placing a wager. 46 [6.] 5. Each operator shall adopt comprehensive house rules governing 47 [sports] wagering transactions with its [patrons] authorized bettors. 48 The rules shall specify the amounts to be paid on winning wagers and the 49 effect of schedule changes. The house rules, together with any other 50 information the commission deems appropriate, shall be conspicuously 51 displayed in the [sports] wagering lounge and included in the terms and 52 conditions of the account wagering system, and copies shall be made 53 readily available to patrons. 54 6. (a) Each casino that offers wagering shall annually submit a report 55 to the commission no later than the twenty-eighth of February of each 56 year, which shall include the following information:S. 5833 6 1 (i) the total amount of wagers received from authorized bettors; 2 (ii) the total amount of prizes awarded to authorized bettors; 3 (iii) the total amount of wagering gross revenue received by the casi- 4 no; 5 (iv) the total amount contributed in betting royalty revenue pursuant 6 to subdivision seven of this section; 7 (v) the total amount of wagers received on each governing body's 8 events; 9 (vi) the number of accounts held by authorized bettors; 10 (vii) the total number of new accounts established in the preceding 11 year, as well as the total number of accounts permanently closed in the 12 preceding year; 13 (viii) the total number of authorized bettors that requested to 14 exclude themselves from wagering; and 15 (ix) any additional information that the commission deems necessary to 16 carry out the provisions of this article. 17 (b) Upon the submission of such annual report, to such extent that the 18 commission deems it to be in the public interest, the commission shall 19 be authorized to conduct a financial audit of any casino, at any time, 20 to ensure compliance with this article. 21 (c) The commission shall annually publish a report based on the aggre- 22 gate information provided by all casinos pursuant to paragraph (a) of 23 this subdivision, which shall be published on the commission's website 24 no later than one hundred eighty days after the deadline for the 25 submission of individual reports as specified in such paragraph (a). 26 7. (a) Within thirty days of the end of each calendar quarter, a casi- 27 no offering wagering shall remit to the commission a wagering royalty 28 fee of one-fifth (.20) of one percent of the amount wagered on events. 29 The fee shall be remitted on a form as the commission may require, on 30 which the casino shall identify the percentage of wagering during the 31 reporting period attributable to each event 32 (b) No later than the thirtieth of April of each year, a registered 33 governing body may submit a claim for disbursement of the royalty fee 34 funds remitted by casinos in the previous calendar year on their respec- 35 tive events. Within thirty days of submitting its claim for disburse- 36 ment, the registered governing body shall meet with the commission to 37 provide the commission with evidence of policies, procedures and train- 38 ing programs it has implemented to protect the integrity of its events. 39 (c) Within thirty days of its meeting with the registered governing 40 body, the commission shall approve a timely claim for disbursement. 41 (d) Before any registered governing body may receive any such 42 disbursement of the royalty fee funds, such governing body shall have in 43 place procedures or processes that address: 44 (i) the protection of athletes, players, umpires, referees, club offi- 45 cials and personnel or officials of a sports league and members of their 46 families and associates from physical attacks, verbal threats, or other 47 forms of harassment occurring in the workplace or elsewhere; 48 (ii) the authority to remove spectators and others from any facility 49 for violation of a code of conduct, and after appropriate procedure, to 50 deny persons from access to all facilities they control, to revoke 51 season tickets or comparable licenses, and to share information about 52 such persons with other registered governing bodies and with the appro- 53 priate jurisdiction's law enforcement authorities. 54 8. For the privilege of conducting wagering in the state, casinos 55 shall pay a tax equivalent to eight and one-half percent of their wager- 56 ing gross revenue.S. 5833 7 1 9. The commission shall pay into the commercial gaming revenue fund 2 established pursuant to section ninety-seven-nnnn of the state finance 3 law eighty-five percent of the state tax imposed by this section; any 4 interest and penalties imposed by the commission relating to those 5 taxes; all penalties levied and collected by the commission; and the 6 appropriate funds, cash or prizes forfeited from wagering. The commis- 7 sion shall pay into the commercial gaming fund five percent of the state 8 tax imposed by this section to be distributed for problem gambling 9 education and treatment purposes pursuant to paragraph a of subdivision 10 four of section ninety-seven-nnnn of the state finance law. The commis- 11 sion shall pay into the commercial gaming fund five percent of the state 12 tax imposed by this section to be distributed for the cost of regulation 13 pursuant to paragraph c of subdivision four of section ninety-seven-nnnn 14 of the state finance law. The commission shall pay into the commercial 15 gaming fund five percent of the state tax imposed by this section to be 16 distributed in the same formula as market origin credits pursuant to 17 section one hundred fifteen-b of this chapter. The commission shall 18 require at least monthly deposits by the casino of any payments pursuant 19 to subdivision eight of this section, at such times, under such condi- 20 tions, and in such depositories as shall be prescribed by the state 21 comptroller. The deposits shall be deposited to the credit of the state 22 commercial gaming revenue fund. The commission shall require a monthly 23 report and reconciliation statement to be filed with it on or before the 24 tenth day of each month, with respect to gross revenues and deposits 25 received and made, respectively, during the preceding month. 26 10. The commission may perform audits of the books and records of a 27 casino, at such times and intervals as it deems appropriate, for the 28 purpose of determining the sufficiency of tax payments. If a return 29 required with regard to obligations imposed is not filed, or if a return 30 when filed or is determined by the commission to be incorrect or insuf- 31 ficient with or without an audit, the amount of tax due shall be deter- 32 mined by the commission. Notice of such determination shall be given to 33 the casino liable for the payment of the tax. Such determination shall 34 finally and irrevocably fix the tax unless the casino against whom it is 35 assessed, within thirty days after receiving notice of such determi- 36 nation, shall apply to the commission for a hearing in accordance with 37 the regulations of the commission. 38 11. Nothing in this section shall apply to interactive fantasy sports 39 offered pursuant to article fourteen of this chapter. Nothing in this 40 section authorizes any entity that conducts interactive fantasy sports 41 offered pursuant to article fourteen of this chapter to conduct wagering 42 unless it separately qualifies for, and obtains, authorization pursuant 43 to this section. 44 12. A governing body may notify the commission that it desires to 45 restrict, limit, or exclude wagering on its events by providing notice 46 in the form and manner as the commission may require. Upon receiving 47 such notice, the commission shall review the request in good faith, seek 48 input from the casinos on such a request, and if the commission deems it 49 appropriate, promulgate regulations to restrict such wagering. If the 50 commission denies a request, the governing body shall be afforded notice 51 and the right to be heard and offer proof in opposition to such determi- 52 nation in accordance with the regulations of the commission. Offering or 53 taking wagers contrary to restrictions promulgated by the commission is 54 a violation of this section. In the event that the request is in 55 relation to an emergency situation, the executive director of the 56 commission may temporarily prohibit the specific wager in question untilS. 5833 8 1 the commission has the opportunity to issue temporary regulations 2 addressing the issue. 3 13. (a) The commission shall designate the division of the state 4 police to have primary responsibility for conducting, or assisting the 5 commission in conducting, investigations into abnormal betting activity, 6 match fixing, and other conduct that corrupts a betting outcome of an 7 event or events for purposes of financial gain. 8 (b) Casinos shall maintain records of wagering operations in accord- 9 ance with regulations promulgated by the commission. These regulations 10 shall, at a minimum, require a casino to adopt procedures to obtain 11 personally identifiable information from any individual who places any 12 single wager in an amount of ten thousand dollars or greater. 13 (c) The commission shall cooperate with a governing body and casinos 14 to ensure the timely, efficient, and accurate sharing of information. 15 (d) The commission and casinos shall cooperate with investigations 16 conducted by governing bodies or law enforcement agencies, including but 17 not limited to providing or facilitating the provision of account-level 18 betting information and audio or video files relating to persons placing 19 wagers; provided, however, that the casino be required to share any 20 personally identifiable information of an authorized bettor with a 21 governing body only pursuant to an order to do so by the commission or a 22 law enforcement agency or court of competent jurisdiction. 23 (e) Casinos shall promptly report to the commission any information 24 relating to: 25 (i) criminal or disciplinary proceedings commenced against the casino 26 in connection with its operations; 27 (ii) abnormal betting activity or patterns that may indicate a concern 28 with the integrity of an event or events; 29 (iii) any potential breach of the relevant governing body's internal 30 rules and codes of conduct pertaining to wagering, as they have been 31 provided by the governing body to the casino; 32 (iv) any other conduct that corrupts a betting outcome of an event or 33 events for purposes of financial gain, including match fixing; and 34 (v) suspicious or illegal wagering activities, including use of funds 35 derived from illegal activity, wagers to conceal or launder funds 36 derived from illegal activity, using agents to place wagers, using 37 confidential non-public information, and using false identification. 38 The commission shall also promptly report information relating to 39 conduct described in subparagraphs (ii), (iii) and (iv) of this para- 40 graph to the relevant governing body. 41 (f) Casinos shall maintain the confidentiality of information provided 42 by a governing body to the casino, unless disclosure is required by this 43 section, the commission, other law, or court order. 44 (g) The commission, by regulation, may authorize and promulgate any 45 rules necessary to implement agreements with other states, or authorized 46 agencies thereof to enable the sharing of information to facilitate 47 integrity monitoring and the conduct of investigations into abnormal 48 betting activity, match fixing, and other conduct that corrupts a 49 betting outcome of an event or events for purposes of financial gain. 50 (h) The commission shall study the potential for the creation of an 51 interstate database of all wagering information for the purpose of 52 integrity monitoring, and shall create a final report regarding all 53 findings and recommendations to be delivered upon completion of all 54 objectives described herein, but in no event later than March first, two 55 thousand twenty, to the governor, the speaker of the assembly and the 56 temporary president of the senate.S. 5833 9 1 14. (a) Casinos shall use whatever data source they deem appropriate 2 for determining the result of wagering involving wagers. 3 (b) Casinos shall only use official league data in all wagering 4 involving tier two wagers, if the relevant governing body possesses a 5 feed of official league data, and makes such feed available for purchase 6 by the casinos on commercially reasonable terms as determined by the 7 commission. 8 (c) A governing body may notify the commission that it desires to 9 require casinos to use official league data in wagering involving 10 specific tier three sports wagers by providing notice in the form and 11 manner as the commission may require. Upon receiving such notice, the 12 commission shall review the request, seek input from the casinos on such 13 a request, and if the commission deems it appropriate, promulgate regu- 14 lations to require casinos to use official league data on wagering 15 involving such tier three wagers if the relevant governing body 16 possesses a feed of official league data, and makes such feed available 17 for purchase by the casinos on commercially reasonable terms as deter- 18 mined by the commission. 19 (d) When determining whether or not a supplier of official league data 20 is offering commercially reasonable terms, the commission shall consider 21 the amount charged by the supplier of official league data to gaming 22 operators in other jurisdictions. This information shall be provided to 23 the commission by the supplier of official league data upon request of 24 the commission. Any entity providing data to a casino for the purpose of 25 tier two wagers, other than a supplier of official league data, shall 26 obtain a license as a casino vendor enterprise and such license shall be 27 issued pursuant to the provisions of section thirteen hundred twenty- 28 seven of this article and in accordance with the regulations promulgated 29 by the commission. 30 (e) No casino shall enter into an agreement with a governing body or 31 an entity expressly authorized to distribute official league data to be 32 the exclusive recipient of their official league data. 33 (f) The commission shall promulgate regulations to allow an authorized 34 bettor to file a complaint alleging an underpayment or non-payment of a 35 winning wager. Any such regulations shall provide that the commission 36 utilize the statistics, results, outcomes, and other data relating to an 37 event that have been obtained from the relevant governing body, where 38 applicable, in determining the validity of such claim. 39 15. A casino shall not permit wagering by anyone they know, or should 40 have known, to be a prohibited bettor. 41 16. Wagering conducted pursuant to the provisions of this section is 42 hereby authorized. 43 16-a. The commission shall promulgate rules that require an operator 44 to implement responsible gaming programs that include comprehensive 45 employee trainings on responding to circumstances in which individuals 46 present signs of a gambling addiction. The commission shall establish a 47 hotline or other method of communication that will allow any person to 48 confidentially report information about prohibited conduct to the 49 commission. The commission shall promulgate regulations governing the 50 investigation and resolution of a charge of any person purported to have 51 engaged in prohibited conduct. 52 17. The conduct of wagering in violation of this section is prohibit- 53 ed. 54 18. (a) In addition to any criminal penalties provided for under arti- 55 cle two hundred twenty-five of the penal law, any person, firm, corpo- 56 ration, association, agent, or employee, who is not authorized to offerS. 5833 10 1 wagering under this section, and who knowingly offers or attempts to 2 offer wagering in New York shall be liable for a civil penalty of not 3 more than one hundred thousand dollars for each violation, not to exceed 4 five million dollars for violations arising out of the same transaction 5 or occurrence, which shall accrue to the state and may be recovered in a 6 civil action brought by the commission. 7 (b) Any person, firm, corporation, association, agent, or employee who 8 knowingly violates any procedure implemented under this section, shall 9 be liable for a civil penalty of not more than five thousand dollars for 10 each violation, not to exceed fifty thousand dollars for violations 11 arising out of the same transaction or occurrence, which shall accrue to 12 the state and may be recovered in a civil action brought by the commis- 13 sion. 14 § 2. Section 104 of the racing, pari-mutuel wagering and breeding law 15 is amended by adding a new subdivision 24 to read as follows: 16 24. To regulate wagering in New York state. 17 § 3. Subdivision 15 of section 1401 of the racing, pari-mutuel wager- 18 ing and breeding law, as added by chapter 237 of the laws of 2016, is 19 amended to read as follows: 20 15. "Prohibited sports event" shall mean any [collegiate sport or21athletic event, any] high school sport or athletic event or any horse 22 racing event. 23 § 4. Severability clause. If any provision of this act or application 24 thereof shall for any reason be adjudged by any court of competent 25 jurisdiction to be invalid, such judgment shall not affect, impair, or 26 invalidate the remainder of the act, but shall be confined in its opera- 27 tion to the provision thereof directly involved in the controversy in 28 which the judgment shall have been rendered. 29 § 5. This act shall take effect on the same date and in the same 30 manner as section 1367 of the racing, pari-mutuel wagering and breeding 31 law pursuant to subdivision (c) of section 52 of chapter 174 of the laws 32 of 2013, as amended, takes effect.