2638-S.E AMS RIVE JOSU 301

ESHB 2638 - S AMD TO S-7375.1 1329

By Senator Rivers

WITHDRAWN 03/05/2020

On page 1, after 13, insert

"In addition, the legislature intends that card rooms are currently licensed should be allowed to conduct sport wagering.

On page 1, line 29, after "(2)" insert the following:

"Beginning January 1, 2024, card rooms may conduct sports wagering through sports pools and online sports pools at the card room facility as provided in this chapter.

(3) The commission may issue licenses prior to January 1, 2024, to be effective on January 1, 2024. The commission may not issue a sports wagering license to any person or entity unless it was licensed and in operation as a card room as of January 1, 2020, and has established its financial stability, integrity, responsibility, good character, and honesty. No license to operate a sports pool may be issued to any person or entity that is disqualified for a license under chapter 9.46 or 67.16 RCW. The commission has the authority to charge a card room a fee for the issuance of a sports wagering license in an amount of five hundred thousand dollars for the initial issuance and, in the case of a renewal, a reasonable fee adopted by rule that is based upon the expense associated with renewal, enforcement, and programs for the prevention and treatment of problem gambling.

(4) "

On page 1, line 29, after "provisions of", strike " Sports wagering conducted pursuant to the provisions of a class III gaming compact entered into by a tribe and the state pursuant to RCW 9.46.360" and insert "Sports wagering conducted pursuant to the provisions of this chapter"

On page 2, line 2, after "9.46.225." insert the following:

" NEW SECTION. Sec. A new section is added to chapter 9.46 RCW to read as follows:

(1) No sports wagering may be offered or made available to the public, except as provided in this chapter.

(2) Any person who offers sports wagering without a license or pursuant to a compact is guilty of a class B felony and is subject to a fine of not more than twenty-five thousand dollars, and, in the case of a person other than a natural person, a fine of not more than one hundred thousand dollars.

NEW SECTION. Sec. A new section is added to chapter 9.46 RCW to read as follows:

(1)(a) Any person who: (i) Is an athlete, coach, referee, or director of a sports governing body or any of its member teams; (ii) is a sports governing body or any of its member teams; (iii) is a player or a referee personnel member in or on any sports event overseen by that person's sports governing body based on publicly available information; (iv) holds a position of authority or influence sufficient to exert influence over the participants in a sporting contest, including, but not limited to, coaches, managers, handlers, athletic trainers, or horse trainers; (v) has access to certain types of exclusive information on any sports event overseen by that person's sports governing body based on publicly available information; or (vi) is identified by any lists provided by the sports governing body to the commission, may not have any ownership interest in, control of, or otherwise be employed by, an operator, a sports wagering licensee, or a facility in which sports wagering is or will be conducted, or place a wager on a sports event that is overseen by that person's sports governing body based on publicly available information. Any person who violates this subsection is guilty of a misdemeanor and must, upon conviction, be punished by either imprisonment in the county jail for a maximum term fixed by the court of not more than ninety days or a fine in an amount fixed by the court of not more than one thousand dollars, or both.

(b) Any employee of a sports governing body or its member teams who is not prohibited from wagering on a sports event must provide notice to the commission prior to placing a wager on a sports event.

(c) The direct or indirect legal or beneficial owner of ten percent or more of a sports governing body or any of its member teams may not place or accept any wager on a sports event in which any member team of that sports governing body participates.

(2) The prohibition set forth in subsection (1) of this section does not apply to any person who is a direct or indirect owner of a specific sports governing body member team, and (a) the person has less than ten percent direct or indirect ownership interest in a casino or racetrack, or (b) the shares of such person are registered pursuant to section 12 of the securities exchange act of 1934 (15 U.S.C. Sec. 781), as amended, and the value of the ownership of such team represents less than one percent of the person's total enterprise value.

(3) An operator must adopt procedures to prevent persons who are prohibited from placing sports wagers from wagering on sports events.

(4) An operator may not accept wagers from any person whose identity is known to the operator and:

(a) Whose name appears on any self-exclusion programs list provided under RCW 9.46.071;

(b) Who is the operator, director, officer, owner, or employee of the operator or any relative thereof living in the same household as the operator;

(c) Who has access to nonpublic confidential information held by the operator; or

(d) Who is an agent or proxy for any other person.

(5) An operator must adopt procedures to obtain personally identifiable information from any individual who places any single wager in an amount of ten thousand dollars or greater on a sports event while physically present in a tribal casino or card room facility.

(6) For purposes of this section, "operator" means a tribal casino or card room conducting sport wagering.

NEW SECTION. Sec. A new section is added to chapter 9.46 RCW to read as follows:

(1) The commission may adopt rules to implement section 2 of this act. These rules may not be more restrictive for card rooms conducting sport wagering than the provisions authorizing sports wagering in any tribe's class III gaming compact with the state.

(2) The rules may address the following:

(a) Documentation and forms required for licensing;

(b) Licensing of employees conducting sport wagering;

(c) How wagering may be conducted, including requiring licensees to adopt and display its house rules governing sport wagering transactions;

(d) How unclaimed winnings may be disbursed, including providing for a percentage of the unclaimed winning to be remitted to the problem gambling account created in RCW 41.05.751; and

(e) Other matters as the commission deems necessary to protect the public and integrity of sport wagering."

Renumber the remaining sections consecutively and correct any internal references accordingly.

On page 12, line 21, after "gaming facility", insert "or a card room"

On page 12, line 23, after "gaming facility", insert "or a card room"

On page 13, line 5, after "1", strike everything through page 13, line 35 and insert

" For purposes of this chapter:

(a) "Card room" means a business licensed to conduct social card games pursuant to RCW 9.46.0325.

(b) "Online sports pool" means a sports wagering operation in which wagers on sports events are made through computers or mobile or interactive devices and accepted at a sports wagering lounge through an online gaming system that is operating pursuant to a sports wagering license issued by the commission.

(c) "Sports pool" means the business of accepting wagers on any sports event by any system or method of wagering, including, but not limited to, single-game bets, teaser bets, parlays, over/under, money line, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, or straight bets.

(d)(i) "Sports wagering" means the business of accepting wagers on any of the following sporting events, athletic events, or competitions by any system or method of wagering:

(A) A professional sport or athletic event;

(B) A collegiate sport or athletic event;

(C) An Olympic or international sports competition or event;

(D) An electronic sports or esports competition or event;

(E) A combination of sporting events, athletic events, or competitions listed in (d)(i)(A) through (D) of this subsection (1); or

(F) A portion of any sporting event, athletic event, or competition listed in (d)(i)(A) through (D) of this subsection (1).

(ii) Sports wagering does not include the business of accepting wagers on horse racing authorized pursuant to chapter 67.16 RCW.

(2) For purposes of this section:

(a) "Collegiate sport or athletic event" means a sport or athletic event offered or sponsored by, or played in connection with, a public or private institution that offers education services beyond the secondary level, other than such an institution that is located within the state of Washington.

(b) "Electronic or esports event" means a live event or tournament attended or watched by members of the public where games or matches are contested in real time by players and teams and players or teams can win a prize based on their performance in the live event or tournament.

(c) "Professional sport or athletic event" means an event that is not a collegiate sport or athletic event at which two or more persons participate in sports or athletic events and receive compensation in excess of actual expenses for their participation in the event."

On page 15, line 2, after "2021." insert the following:

"NEW SECTION. Sec. A new section is added to chapter 82.04 RCW to read as follows:

(1) There is levied and collected from every card room conducting sports wagering in this state, a tax in the amount of ten percent of the gaming revenue.

(2) Card rooms conducting sports wagering subject to the tax imposed by this section must report to the department the amount of gaming revenue earned by location. The tax imposed by this section must be paid to, and administered by, the department. The administration of the tax is governed by the provisions of chapter 82.32 RCW.

(3) For purposes of this section:

(a) "Card room" has the same meaning as in section 14 of this act.

(b) "Gaming revenue" means the total amount wagered less winnings paid out.

(c) "Sports wagering" has the same meaning as in section 14 of this act."

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