H-3878.1

HOUSE BILL 2478

ByRepresentative Vick

AN ACT Relating to authorizing sports wagering at tribal casinos, card rooms, and racetracks; amending RCW 9.46.0335, 9.46.070, 9.46.130, 9.46.153, 9.46.155, 9.46.190, 9.46.210, 9.46.220, 9.46.240, 67.04.010, 67.04.020, 67.04.030, 67.04.040, 67.04.050, 67.04.060, 67.04.070, and 67.04.080; adding a new section to chapter 82.04 RCW; adding a new section to chapter 67.04 RCW; adding a new chapter to Title 9 RCW; recodifying RCW 67.24.010; repealing RCW 67.24.020; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

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

(2) "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 educational services beyond the secondary level.

(3) "Commission" means the Washington state gambling commission created in RCW 9.46.040.

(4) "Fantasy sports activity" means any fantasy or simulated activity or contest with an entry fee in which a participant owns or manages an imaginary team and competes against other participants or a target score for a predetermined prize with the outcome reflecting the relative skill of the participants and determined by statistics generated based on performance by actual individuals participating in actual competitions or athletic events, provided that the outcome must not be based solely on the performance of an individual athlete, or on the score, point spread, or any performance of any single real team or combination of real teams. "Fantasy sports activity" does not include any activity in which no entry fee is paid to the fantasy sports operator or in which a prize is not collected, managed, or awarded by the operator.

(5) "Internet sports pool operator" means an entity that is licensed as a casino service industry enterprise and that holds a license issued by the commission to operate an online sports pool.

(6) "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.

(7) "Operator" means a tribal casino or sport wagering licensee that has elected to operate a sports pool, either independently or jointly, and any entity with whom a tribal casino or sport wagering licensee contracts to operate a sports pool or online sports pool, including an internet sports pool operator, on its behalf.

(8) "Professional sport or athletic event" means an event at which two or more persons participate in a sport or athletic event and receive compensation in excess of actual expenses for their participation in such event.

(9)(a) "Prohibited sports event" means any collegiate sport or athletic event that takes place in this state or a sport or athletic event in which any Washington state college team participates regardless of where the event takes place. "Prohibited sports event" includes all high school sports events, electronic sports, and competitive video games, but does not include international sports events in which persons under age eighteen make up a minority of the participants.

(b) "Prohibited sports event" does not include the other games of a collegiate sport or athletic tournament in which a Washington state college team participates, nor does it include any games of a collegiate tournament that occurs outside Washington state, even though some of the individual games or events are held in Washington.

(10) "Racetrack" means a business licensed to conduct horse race meets under a license issued by the Washington horse racing commission pursuant to chapter 67.16 RCW.

(11) "Sports event" means any professional sport or athletic event, any Olympic or international sports competition event, or any collegiate sport or athletic event, or any portion thereof, including, but not limited to, the individual performance statistics of athletes in a sports event or combination of sports events. "Sports event" does not include a prohibited sports event or a fantasy sports activity.

(12) "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.

(13) "Sports wagering lounge" means an area wherein an authorized sports pool is operated at a tribal casino, card room, or racetrack complex.

(14) "Tribal casino" means a federally recognized Indian tribe or an entity owned by a federally recognized Indian tribe authorized to conduct sports wagering through sports pools or online sports pools on federal Indian lands in accordance with the terms of a class III gaming compact entered into by a federally recognized Indian tribe and the state pursuant to the Indian gaming regulatory act, 25 U.S.C. Sec. 2701 et seq., and RCW 9.46.360 that expressly addresses how sports wagering will be conducted, operated, and regulated consistent with this chapter.

(2) Sports wagering conducted pursuant to the provisions of this chapter does not constitute bookmaking and is not subject to civil or criminal penalties.

(3) The commission has the power to: (a) Negotiate compacts with tribes authorizing sports wagering for tribal casinos; and (b) issue all sports wagering licenses and renewals to card rooms and racetracks. The commission must hear and promptly decide all applications for a sports wagering license.

(4) The license to operate a sports pool is in addition to any other license required to be issued pursuant to chapters 9.46 and 67.16 RCW.

(5) A tribal casino and a sports wagering licensee may operate a sports pool in accordance with the provisions of this chapter.

(6) A tribal casino and a sports wagering licensee may enter into an agreement to jointly operate a sports pool at a racetrack in accordance with the provisions of this chapter.

(7) A tribal casino and a sports wagering licensee may conduct an online sports pool or may authorize an internet sports pool operator licensed as a casino service industry enterprise to operate an online sports pool on its behalf, provided the terms of the agreement are approved by the commission.

(8) The powers and duties of the commission specified in chapter 9.46 RCW and other provisions with respect to tribal casinos and licensees apply to the extent not inconsistent with the provisions of this chapter.

(9) The commission has the authority to charge a card room and a racetrack 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.

(10) No sports wagering license may be issued by the commission to any person or entity unless it has established its financial stability, integrity, responsibility, good character, and honesty.

(11) 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.

(12) A licensee must submit to the commission, no later than five years after the date of the issuance of a license and every five years thereafter, or within such lesser periods as the commission may direct, documentation or information as the commission may, by rule, require to demonstrate to the satisfaction of the commission that the licensee continues to meet the requirements of this chapter.

(13) The commission, following consultation with the sports wagering licensees, must annually provide a report to the governor and the appropriate committees of the legislature on the impact of sports wagering, including internet wagering on sports events, on problem gamblers and gambling addiction in the state. The report must be prepared by a private organization or entity with expertise in serving the needs of persons with gambling addictions, as selected by the commission. The report must be distributed by the commission. Any costs associated with the preparation and distribution of the report will be borne by the licensees who have been authorized by the commission to conduct internet gaming, and the commission is authorized to assess a fee against the licensees for these purposes. The commission may also periodically report to the governor and the appropriate committees of the legislature on the effectiveness of the statutory and regulatory controls in place to ensure the integrity of gaming operations through the internet.

(2) No online sports pool may be opened to the public, and no sports wagering, except for test purposes, may be conducted until an internet sports pool operator receives a sport wagering license or pursuant to the terms of a compact.

(3) Tribal casinos, sports wagering licensees, and operators may provide promotional credits, incentives, bonuses, complimentaries, or similar benefits designed to induce sports betters to wager.

(4) The server or other equipment used by a tribal casino or a sports wagering licensee to accept wagers at a sports pool or online sports pool must be located in that tribal casino, card room, or racetrack complex.

(5) A sports pool must be operated in a sports wagering lounge located at the tribal casino, card room, or racetrack complex. A sports wagering lounge may be located at a casino simulcasting facility. The lounge must conform to all requirements concerning square footage, design, equipment, security measures, and related matters which the commission may prescribe. The space required for the establishment of a lounge must not reduce the space authorized for other gambling activities pursuant to other laws or rules.

(6) No tribal casino or sport wagering licensee may operate a sports pool or accept wagers via an online sports pool unless a sports wagering lounge is established and has commenced operation in its complex; provided, however, that a tribal casino or a sports wagering licensee may petition the commission to commence operation of the sports pool at either a temporary facility or an online sports pool, or both, during the pendency of construction of a sports wagering lounge in its complex. The temporary facilities may include, at the discretion of the commission, the utilization of designated windows at the current casino cage or racetrack betting window for purposes of placing sports betting wagers and self-service wagering machines located at the complex.

(7) The operator must establish or display the odds at which wagers may be placed on sports events.

(8) An operator may accept wagers on sports events only: (a) From persons physically present in the sports wagering lounge; (b) through self-service wagering machines located in its complex as authorized by the commission; or (c) through an online sports pool.

(9) A person placing a wager on a sports event must be at least eighteen years of age.

(2) Any person who offers a sports pool or an online sports pool 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.

(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, card room, or racetrack complex.

(a)(i) Any criminal or disciplinary proceedings commenced against the operator or its employees in connection with the operations of the sports pool or online sports pool; (ii) any abnormal betting activity or patterns that may indicate a concern about the integrity of a sports event or events; (iii) any other conduct with the potential to corrupt a betting outcome of a sports event for purposes of financial gain, including, but not limited to, match fixing; and

(b) Suspicious or illegal wagering activities, including the use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, the use of agents to place wagers, or the use of false identification.

(2) The commission is authorized to share any information under this section with any law enforcement entity, team, sports governing body, or regulatory agency the commission deems appropriate.

(2) All wagers on sports events authorized under this chapter must be initiated, received, and otherwise made within this state unless otherwise determined by the commission in accordance with applicable federal and state laws. Consistent with the intent of the United States congress as articulated in the unlawful internet gambling enforcement act of 2006, 31 U.S.C. Sec. 5361 et seq., the intermediate routing of electronic data relating to a lawful intrastate wager authorized under this chapter does not determine the location or locations in which such wager is initiated, received, or otherwise made.

(2) As to each holding, intermediary, and subsidiary company or entity of an applicant for, or holder of, a sports wagering license, applicants and holders are required to establish and maintain the qualifications of the following: (a) Each board-appointed officer of the entity; (b) each director of the company or entity; (c) each person who directly holds any voting or controlling interest of five percent or more of the securities issued by such applicant or holder; and (d) each person who directly holds any nonvoting or passive ownership interest of twenty-five percent or more in the holding or intermediary company.

(2) All other employees who are working in the sports wagering lounge may be required to be registered by the commission.

(3) Each operator must designate one or more sports wagering key employees who are responsible for the operation of the sports pool. At least one sports wagering key employee must be on the premises whenever sports wagering is conducted.

(2) No tribal casino, card room, or racetrack may be authorized to operate a sports pool or online sports pool unless it has produced, to the satisfaction of the commission, information, documentation, and assurances concerning its financial background and resources, including cash reserves, that are sufficient to demonstrate that it has the financial stability, integrity, and responsibility to operate a sports pool or online sports pool.

(3) In developing and adopting rules applicable to sports wagering, the commission may examine the regulations implemented in other states where sports wagering is conducted and may, as far as practicable, adopt a similar regulatory framework. The commission will adopt rules necessary to carry out the provisions of this chapter, including regulations governing the:

(a) Amount of cash reserves to be maintained by operators to cover winning wagers;

(b) Acceptance of wagers on a series of sports events;

(c) Maximum wagers which may be accepted by an operator from any one patron on any one sports event;

(d) Type of wagering tickets which may be used;

(e) Method of issuing tickets;

(f) Method of accounting to be used by operators;

(g) Types of records which must be kept;

(h) Use of credit and checks by patrons;

(i) Type of system for wagering;

(j) Protections for a person placing a wager; and

(k) Display of the words "If you or someone you know has a gambling problem and wants help, call 1-800 GAMBLER," or some comparable language approved by the commission, which language must include the words "gambling problem" and "call 1-800 GAMBLER" in all print, billboard, sign, online, or broadcast advertisements of a sports pool, online sports pool, and sports wagering lounge.

(2) The rules must specify the amounts to be paid on winning wagers and the effect of schedule changes.

(3) The house rules, together with any other information the commission deems appropriate, must be conspicuously displayed in the sports wagering lounge, posted on the operator's internet web site, and included in the terms and conditions of the account wagering system, and copies must be made readily available to patrons.

(2) Gaming revenue from sports wagering must be sourced to the location where the bet is placed.

(3) Tribal casinos and sports wagering licensees subject to the tax imposed by this chapter must report to the department of revenue the amount of gaming revenue earned by location, identifying the amount of gaming revenue received from wagers or bets placed on tribal land, broken down by tribe, and the amount of gaming revenue received in Washington outside tribal land. Taxes paid on gaming revenue received from wagers or bets placed on tribal lands will be remitted to the tribe on whose lands the bet was placed.

(4) The tax imposed by this chapter must be paid to, and administered by, the department of revenue. The administration of the tax is governed by the provisions of chapter 82.32 RCW.

(5) For purposes of this section, "gaming revenue" means the total amount wagered less winnings paid out.

NEW SECTION.  Sec. 20. A new section is added to chapter 82.04 RCW to read as follows:

This chapter does not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under chapter 9.--- RCW (the new chapter created in section 21 of this act).

Sec. 22. RCW 9.46.0335 and 1987 c 4 s 31 are each amended to read as follows:

(1) The legislature ((hereby)) authorizes any person, association, or organization to ((conduct sports pools without a license to do so from the commission but only when the outcome of which is dependent upon the score, or scores, of a certain athletic contest and which is conducted only))conduct sports boards in the following manner:

(((1) A board or piece of paper is divided into one hundred equal squares, each of which constitutes a chance to win in the sports pool and each of which is offered directly to prospective contestants at one dollar or less;

(2)))(a) The purchaser of each chance or square signs his or her name on the face of each square or chance he or she purchases; ((and

(3)))(b) At some time not later than prior to the start of the subject athletic contest, the ((pool))sports board is closed and no further chances in the ((pool))sports board are sold;

(((4)))(c) After the ((pool))sports board is closed, a prospective score is assigned by random drawing to each square;

(((5)))(d) All money paid by entrants to enter the ((pool))sports board less taxes is paid out as the prize or prizes to those persons holding squares assigned the winning score or scores from the subject athletic contest;

(((6)))(e) The sports ((pool)) board is available for inspection by any person purchasing a chance thereon, the commission, or by any law enforcement agency upon demand at all times prior to the payment of the prize;

(((7)))(f) The person or organization conducting the ((pool))sports board is conducting no ((other))more than two sports ((pool))boards on the same athletic event; and

(((8) The sports pool conforms))(g) Sports boards must conform to any rules and regulations of the commission ((applicable thereto)), including maximum wager limits set by the commission.

Sec. 23. RCW 9.46.070 and 2012 c 116 s 1 are each amended to read as follows:

The commission shall have the following powers and duties:

(1) To authorize and issue licenses for a period not to exceed one year to bona fide charitable or nonprofit organizations approved by the commission meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said organizations to conduct bingo games, raffles, amusement games, and social card games, to utilize punchboards and pull-tabs in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto, and to revoke or suspend said licenses for violation of any provisions of this chapter or any rules and regulations adopted pursuant thereto: PROVIDED, That the commission shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: PROVIDED FURTHER, That the commission or director shall not issue, deny, suspend, or revoke any license because of considerations of race, sex, creed, color, or national origin: AND PROVIDED FURTHER, That the commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;

(2) To authorize and issue licenses for a period not to exceed one year to any person, association, or organization operating a business primarily engaged in the selling of items of food or drink for consumption on the premises, approved by the commission meeting the requirements of this chapter and any rules and regulations adopted pursuant thereto permitting said person, association, or organization to utilize punchboards and pull-tabs ((and)), to conduct social card games as a commercial stimulant in accordance with the provisions of this chapter and any rules and regulations adopted pursuant thereto, and to revoke or suspend said licenses for violation of any provisions of this chapter and any rules and regulations adopted pursuant thereto: PROVIDED, That the commission shall not deny a license to an otherwise qualified applicant in an effort to limit the number of licenses to be issued: PROVIDED FURTHER, That the commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;

(3) To authorize and issue licenses ((for a period not to exceed one year to any person, association, or organization approved by the commission meeting the requirements of this chapter and meeting the requirements of any rules and regulations adopted by the commission pursuant to this chapter as now or hereafter amended, permitting said person, association, or organization to conduct or operate amusement games in such manner and at such locations as the commission may determine. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission))as provided in chapter 9.--- RCW (the new chapter created in section 21 of this act);

(4) To require any license holder to report suspicious activities or irregular betting activities regarding type, scope, and manner, as directed by the commission, and submit such reports as the commission may deem necessary;

(5) To authorize, require, and issue, for a period not to exceed one year, such licenses as the commission may by rule provide((,)) to any person, association, or organization to engage in the manufacturing, selling, distributing, or ((otherwise)) supplying ((or in the manufacturing of devices for use within this state))of devices, equipment software, hardware, or any gambling-related services for those activities authorized by this chapter. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission;

(((5)))(6) To establish a schedule of annual license fees for carrying on specific gambling activities upon the premises, and for such other activities as may be licensed by the commission, which fees shall provide to the commission not less than an amount of money adequate to cover all costs incurred by the commission relative to licensing under this chapter and the enforcement by the commission of the provisions of this chapter and rules and regulations adopted pursuant thereto: PROVIDED, That all licensing fees shall be submitted with an application therefor and such portion of said fee as the commission may determine, based upon its cost of processing and investigation, shall be retained by the commission upon the withdrawal or denial of any such license application as its reasonable expense for processing the application and investigation into the granting thereof: PROVIDED FURTHER, That if in a particular case the basic license fee established by the commission for a particular class of license is less than the commission's actual expenses to investigate that particular application, the commission may at any time charge to that applicant such additional fees as are necessary to pay the commission for those costs. The commission may decline to proceed with its investigation and no license shall be issued until the commission has been fully paid therefor by the applicant: AND PROVIDED FURTHER, That the commission may establish fees for the furnishing by it to licensees of identification stamps to be affixed to such devices and equipment as required by the commission and for such other special services or programs required or offered by the commission, the amount of each of these fees to be not less than is adequate to offset the cost to the commission of the stamps and of administering their dispersal to licensees or the cost of administering such other special services, requirements, or programs;

(((6)))(7) To prescribe the manner and method of payment of taxes, fees, and penalties to be paid to, or collected by, the commission;

(((7)))(8) To require that applications for all licenses contain such information as may be required by the commission: PROVIDED, That all persons (a) having a managerial or ownership interest in any gambling activity, or the building in which any gambling activity occurs, or the equipment to be used for any gambling activity, ((or)) (b) participating as an employee in the operation of any gambling activity, or (c) participating as an employee in the operation or management of providing gambling-related services for sports gambling as provided in this chapter and chapter 9.--- RCW (the new chapter created in section 21 of this act) shall be listed on the application for the license, and the applicant shall certify on the application, under oath, that the persons named on the application are all of the persons known to have an interest in any gambling activity, building, or equipment by the person making such application: PROVIDED FURTHER, That the commission shall require fingerprinting and national criminal history background checks on any persons seeking licenses, certifications, or permits under this chapter or of any person holding an interest in any gambling activity, building, or equipment to be used therefor, or of any person participating as an employee in the operation of any gambling activity. All national criminal history background checks shall be conducted using fingerprints submitted to the ((United States department of justice-))federal bureau of investigation. The commission must establish rules to delineate which persons named on the application are subject to national criminal history background checks. In identifying these persons, the commission must take into consideration the nature, character, size, and scope of the gambling activities requested by the persons making such applications;

(((8)))(9) To require that any license holder maintain records as directed by the commission and submit such reports as the commission may deem necessary;

(((9)))(10) To require that all income from bingo games, raffles, and amusement games be recorded and reported as established by rule or regulation of the commission to the extent deemed necessary by considering the scope and character of the gambling activity in such a manner that will disclose gross income from any gambling activity, amounts received from each player, the nature and value of prizes, and the fact of distributions of such prizes to the winners thereof;

(((10)))(11) To regulate and establish maximum limitations on income derived from bingo. In establishing limitations pursuant to this subsection, the commission shall take into account (a) the nature, character, and scope of the activities of the licensee; (b) the source of all other income of the licensee; and (c) the percentage or extent to which income derived from bingo is used for charitable, as distinguished from nonprofit, purposes. However, the commission's powers and duties granted by this subsection are discretionary and not mandatory;

(((11)))(12) To regulate and establish the type ((and)), scope of, and manner of conducting the gambling activities authorized by this chapter, including, but not limited to, the extent of wager, money, or other thing of value which may be wagered ((or)), contributed, or won by a player in any such activities;

(((12)))(13) To regulate the collection of, and the accounting for, the fee which may be imposed by an organization, corporation, or person licensed to conduct a social card game on a person desiring to become a player in a social card game in accordance with RCW 9.46.0282;

(((13)))(14) To cooperate with, and secure the cooperation of, county, city, and other local or state agencies in investigating any matter within the scope of its duties and responsibilities;

(((14)))(15) In accordance with RCW 9.46.080, to adopt such rules and regulations as are deemed necessary to carry out the purposes and provisions of this chapter. All rules and regulations shall be adopted pursuant to the administrative procedure act, chapter 34.05 RCW;

(((15)))(16) To set forth for the perusal of counties, city-counties, or cities and towns((,)) model ordinances by which any legislative authority thereof may enter into the taxing of any gambling activity authorized by this chapter;

(((16)))(17)(a) To establish and regulate a maximum limit on salaries or wages which may be paid to persons employed in connection with activities conducted by bona fide charitable or nonprofit organizations and authorized by this chapter, where payment of such persons is allowed, and to regulate and establish maximum limits for other expenses in connection with such authorized activities, including, but not limited to, rent or lease payments. However, the commissioner's powers and duties granted by this subsection are discretionary and not mandatory.

(b) In establishing these maximum limits the commission shall take into account the amount of income received, or expected to be received, from the class of activities to which the limits will apply and the amount of money the games could generate for authorized charitable or nonprofit purposes absent such expenses. The commission may also take into account, in its discretion, other factors, including, but not limited to, the local prevailing wage scale and whether charitable purposes are benefited by the activities;

(((17)))(18) To authorize, require, and issue for a period not to exceed one year such licenses or permits, for which the commission may by rule provide, to any person to work for any operator of any gambling activity authorized by this chapter in connection with that activity, or any manufacturer, supplier, or distributor of devices for those activities in connection with such business. The commission may authorize the director to temporarily issue or suspend licenses subject to final action by the commission. The commission shall not require that persons working solely as volunteers in an authorized activity conducted by a bona fide charitable or bona fide nonprofit organization, who receive no compensation of any kind for any purpose from that organization, and who have no managerial or supervisory responsibility in connection with that activity, be licensed to do such work. The commission may require that licensees employing such unlicensed volunteers submit to the commission periodically a list of the names, addresses, and dates of birth of the volunteers. If any volunteer is not approved by the commission, the commission may require that the licensee not allow that person to work in connection with the licensed activity;

(((18)))(19) To publish and make available at the office of the commission or elsewhere to anyone requesting it a list of the commission licensees, including the name, address, type of license, and license number of each licensee;

(((19)))(20) To establish guidelines for determining what constitutes active membership in bona fide nonprofit or charitable organizations for the purposes of this chapter;

(((20)))(21) To renew the license of every person who applies for renewal within six months after being honorably discharged, removed, or released from active military service in the armed forces of the United States upon payment of the renewal fee applicable to the license period, if there is no cause for denial, suspension, or revocation of the license;

(((21)))(22) To issue licenses under subsections (1) through (4) of this section that are valid for a period of up to eighteen months, if it chooses to do so, in order to transition to the use of the business licensing services program through the department of revenue; and

(((22)))(23) To perform all other matters and things necessary to carry out the purposes and provisions of this chapter.

Sec. 24. RCW 9.46.130 and 2011 c 336 s 303 are each amended to read as follows:

The premises and paraphernalia, and all the books ((and)), records, databases, hardware, software, or any other electronic data storage device of any person, association, or organization conducting gambling activities authorized under this chapter and any person, association, or organization receiving profits therefrom or having any interest therein shall be subject to inspection and audit at any reasonable time, with or without notice, upon demand, by the commission or its designee, the attorney general or his or her designee, the chief of the Washington state patrol or his or her designee or the prosecuting attorney, sheriff, or director of public safety or their designees of the county wherein located, or the chief of police or his or her designee of any city or town in which said organization is located, for the purpose of determining compliance or noncompliance with the provisions of this chapter and any rules or regulations or local ordinances adopted pursuant thereto, or any federal or state law. A reasonable time for the purpose of this section shall be: (1) If the items or records to be inspected or audited are located anywhere upon a premises, any portion of which is regularly open to the public or members and guests, then at any time when the premises are so open((,)) or at which they are usually open; or (2) if the items or records to be inspected or audited are not located upon a premises set out in subsection (1) of this section, then any time between the hours of 8:00 a.m. and 9:00 p.m., Monday through Friday.

The commission shall be provided at such reasonable intervals as the commission shall determine with a report, under oath, detailing all receipts and disbursements in connection with such gambling activities, together with such other reasonable information as required in order to determine whether such activities comply with the purposes of this chapter or any local ordinances relating thereto.

Sec. 25. RCW 9.46.153 and 1981 c 139 s 14 are each amended to read as follows:

(1) It shall be the affirmative responsibility of each applicant and licensee to establish by clear and convincing evidence the necessary qualifications for licensure of each person required to be qualified under this chapter, as well as the qualifications of the facility in which the licensed activity will be conducted;

(2) All applicants and licensees shall consent to inspections, searches and seizures, and the supplying of handwriting examples as authorized by this chapter and rules adopted hereunder;

(3) All licensees, and persons having any interest in licensees, including, but not limited to, employees and agents of licensees, and other persons required to be qualified under this chapter or rules of the commission shall have a duty to inform the commission or its staff of any action or omission which they believe would constitute a violation of this chapter or rules adopted pursuant thereto, or a violation of state or federal law. No person who so informs the commission or the staff shall be discriminated against by an applicant or licensee because of the supplying of such information;

(4) All applicants, licensees, persons who are operators or directors thereof, and persons who otherwise have a substantial interest therein shall have the continuing duty to provide any assistance or information required or requested by the commission and to investigations conducted by the commission. If, upon issuance of a formal request to answer or produce information, evidence, or testimony, any applicant, licensee or officer or director thereof, or person with a substantial interest therein, refuses to comply, the applicant or licensee may be denied or revoked by the commission;

(5) All applicants and licensees shall waive any and all liability as to the state of Washington, its agencies, employees, and agents for any damages resulting from any disclosure or publication in any manner, other than a ((wilfully))willfully unlawful disclosure or publication, of any information acquired by the commission during its licensing ((or)), other investigations ((or)), inquiries, or hearings;

(6) Each applicant or licensee may be photographed for investigative and identification purposes in accordance with the rules of the commission;

(7) An application to receive a license under this chapter or rules adopted pursuant thereto constitutes a request for a determination of the applicant's, and those person's with an interest in the applicant, general character, integrity, and ability to engage or participate in, or be associated with, gambling or related activities impacting this state. Any written or oral statement made in the course of an official investigation, proceeding, or process of the commission by any member, employee, or agent thereof, or by any witness, testifying under oath, which is relevant to the investigation, proceeding, or process, is absolutely privileged and shall not impose any liability for slander, libel, or defamation, or constitute any grounds for recovery in any civil action.

Sec. 26. RCW 9.46.155 and 2003 c 53 s 34 are each amended to read as follows:

(1) No ((applicant or licensee))person shall give or provide, or offer to give or provide, directly or indirectly, to any public official ((or)), employee, or agent of this state, or any of its agencies or political subdivisions, any compensation or reward, or share of the money or property paid or received through gambling activities, in consideration for obtaining any license, authorization, permission, or privilege to participate in any gaming operations except as authorized by this chapter or rules adopted pursuant thereto.

(2) ((Violation))No person shall give or provide, or attempt to give or provide, directly or indirectly, any compensation, reward, or thing of value to a sporting event participant, including an athlete, coach, referee, official, medical staff, team, school, league official or employee, or anyone else having actual or potential influence over a sporting event, to influence or require the sporting event participant to manipulate a game or contest as prohibited in chapter 67.04 RCW, or provide confidential or insider information with the intent to use the information to gain an advantage in a gambling activity.

(3) Unless otherwise provided in another title or section, violation of this section is a class C felony for which a person, upon conviction, shall be punished by imprisonment for not more than five years or a fine of not more than one hundred thousand dollars, or both.

Sec. 27. RCW 9.46.190 and 1991 c 261 s 7 are each amended to read as follows:

Any person ((or)), association, or organization operating any gambling activity who or which, directly or indirectly, shall in the course of such operation:

(1) Employ any device, scheme, or artifice to defraud; or

(2) Make any untrue statement of a material fact, or omit to state a material fact necessary in order to make the statement made not misleading, in the light of the circumstances under which said statement is made; or

(3) Engage in any act, practice, or course of operation as would operate as a fraud or deceit upon any person; or

Shall be guilty of a ((gross misdemeanor))class C felony subject to the penalty set forth in RCW 9A.20.021.

Sec. 28. RCW 9.46.210 and 2000 c 46 s 1 are each amended to read as follows:

(1) It shall be the duty of all peace officers, law enforcement officers, and law enforcement agencies within this state to investigate, enforce, and prosecute all violations of this chapter.

(2) In addition to the authority granted by subsection (1) of this section, law enforcement agencies of cities and counties shall investigate and report to the commission all violations of the provisions of this chapter and of the rules of the commission found by them and shall assist the commission in any of its investigations and proceedings respecting any such violations. Such law enforcement agencies shall not be deemed agents of the commission.

(3) In addition to its other powers and duties, the commission shall have the power to enforce the penal provisions of ((chapter 218, Laws of 1973 1st ex. sess.))chapters 9.46 and 9.--- RCW (the new chapter created in section 21 of this act) and as it may be amended, and the penal laws of this state relating to the conduct of, or participation in, gambling activities, including chapter 9A.83 RCW, and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. The director, the deputy director, both assistant directors, and each of the commission's investigators, enforcement officers, and inspectors shall have the power, under the supervision of the commission, to enforce the penal provisions of ((chapter 218, Laws of 1973 1st ex. sess.))chapters 9.46 and 9.--- RCW (the new chapter created in section 21 of this act) and as it may be amended, and the penal laws of this state relating to the conduct of, or participation in, gambling activities, including chapter 9A.83 RCW, and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. They shall have the power and authority to apply for and execute all warrants and serve process of law issued by the courts in enforcing the penal provisions of ((chapter 218, Laws of 1973 1st ex. sess.))chapters 9.46 and 9.--- RCW (the new chapter created in section 21 of this act) and as it may be amended, and the penal laws of this state relating to the conduct of, or participation in, gambling activities, including chapter 9A.83 RCW, and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. They shall have the power to arrest without a warrant((,)) any person or persons found in the act of violating any of the penal provisions of ((chapter 218, Laws of 1973 1st ex. sess.))chapters 9.46 and 9.--- RCW (the new chapter created in section 21 of this act) and as it may be amended, and the penal laws of this state relating to the conduct of, or participation in, gambling activities, including chapter 9A.83 RCW, and the manufacturing, importation, transportation, distribution, possession, and sale of equipment or paraphernalia used or for use in connection therewith. To the extent set forth above, the commission shall be a law enforcement agency of this state with the power to investigate for violations of, and to enforce, the provisions of this chapter, as now law or hereafter amended, and to obtain information from, and provide information to, all other law enforcement agencies.

(4) Criminal history record information that includes nonconviction data, as defined in RCW 10.97.030, may be disseminated by a criminal justice agency to the Washington state gambling commission for any purpose associated with the investigation for suitability for involvement in gambling activities authorized under this chapter. The Washington state gambling commission shall only disseminate nonconviction data obtained under this section to criminal justice agencies.

Sec. 29. RCW 9.46.220 and 1997 c 78 s 2 are each amended to read as follows:

(1) A person is guilty of professional gambling in the first degree if he or she engages in, or knowingly causes, aids, abets, or conspires with another to engage in, professional gambling as defined in this chapter, and:

(a) Acts in concert with or conspires with five or more people; or

(b) Personally accepts wagers exceeding five thousand dollars during any thirty-day period on future contingent events; or

(c) The operation for whom the person works, or with which the person is involved, accepts wagers exceeding five thousand dollars during any thirty-day period on future contingent events; or

(d) Operates, manages, or profits from the operation of a premises or location where persons are charged a fee to participate in card games, lotteries, or other gambling activities that are not authorized by this chapter or licensed by the commission; or

(e) Engages in bookmaking as defined in RCW 9.46.0213.

(2) However, this section shall not apply to those activities enumerated in RCW 9.46.0305 through 9.46.0361 or to any act or acts in furtherance of such activities when conducted in compliance with the provisions of this chapter and in accordance with the rules adopted pursuant to this chapter.

(3) Professional gambling in the first degree is a class B felony subject to the penalty set forth in RCW 9A.20.021.

Sec. 30. RCW 9.46.240 and 2006 c 290 s 2 are each amended to read as follows:

(1) Whoever knowingly transmits or receives gambling information by telephone, telegraph, radio, semaphore, the internet, a telecommunications transmission system, or similar means, or knowingly installs or maintains equipment for the transmission or receipt of gambling information shall be guilty of a class C felony subject to the penalty set forth in RCW 9A.20.021. ((However, this))

(2) This section shall not apply to such information transmitted or received, or equipment or devices installed or maintained, relating to activities authorized by this chapter, chapter 9.--- RCW (the new chapter created in section 21 of this act), or to any act or acts in furtherance thereof when conducted in compliance with the provisions of this chapter ((and)), in accordance with the rules adopted under this chapter, and consistent with tribal-state gambling compacts.

Sec. 31. RCW 67.04.010 and 2012 c 117 s 294 are each amended to read as follows:

Any person who shall bribe or offer to bribe((,)) any ((baseball player))sporting event participant, including an athlete, coach, referee, official, medical staff, or anyone else having actual or potential influence over a sporting event, with the intent to influence ((his or her play, action, or conduct in any baseball game))the outcome of a play, game, match, or event, or any person who shall bribe or offer to bribe any ((umpire of a baseball game, with intent to influence him or her to make a wrong decision or to bias his or her opinion or judgment in relation to any baseball game or any play occurring therein, or any person who shall bribe or offer to bribe any manager, or other official of a baseball club, league, or association, by whatsoever name called, conducting said game of baseball to throw or lose a game of baseball))team, school, or league official or employee to obtain confidential or insider information on a player, team, or coach with the intent to violate a section of this act or use the information to gain a gambling advantage in violation of chapters 9.46 and 9.--- RCW (the new chapter created in section 21 of this act), shall be guilty of a ((gross misdemeanor))class B felony.

Sec. 32. RCW 67.04.020 and 2012 c 117 s 295 are each amended to read as follows:

Any ((baseball player))sporting event athlete, player, or participant who shall accept or agree to accept((,)) a bribe offered for the purpose of wrongfully influencing his or her play, action, decision making, or conduct in any ((baseball game))sporting event, or any umpire ((of a baseball game)), official, referee, or any other person responsible for implementing game or event rules and scoring who shall accept or agree to accept a bribe offered for the purpose of influencing him or her to make a wrong decision, or biasing his or her opinions, rulings, or judgment with regard to any play, or any ((manager of a baseball club, or club))person, including an owner, manager, coach, medical staff, official, employee of a team, organization, or league official, who shall accept((,)) or agree to accept((,)) any bribe offered for the purpose of inducing him or her to manipulate a game or contest, including to lose or cause to be lost any ((baseball)) game or contest, as set forth in RCW 67.04.010, shall be guilty of a ((gross misdemeanor))class C felony.

Sec. 33. RCW 67.04.030 and 2012 c 117 s 296 are each amended to read as follows:

To complete the offenses mentioned in RCW 67.04.010 and 67.04.020, it shall not be necessary that ((the baseball))a player, manager, umpire, ((or)) official, or anyone else having actual or potential influence over a sporting event shall, at the time, have been actually employed, selected, or appointed to perform his or her respective duties; it shall be sufficient if the bribe be offered, accepted, or agreed to with the view of probable employment, selection, or appointment of the person to whom the bribe is offered, or by whom it is accepted. Neither shall it be necessary that such ((baseball)) player, umpire, ((or)) manager, official, or anyone else having actual or potential influence over a sporting event actually play or participate in a game or games concerning which said bribe is offered or accepted; it shall be sufficient if the bribe be given, offered, or accepted in view of his or her possibly participating therein.

Sec. 34. RCW 67.04.040 and 2012 c 117 s 297 are each amended to read as follows:

By a "bribe" as used in RCW 67.04.010 through 67.04.080, is meant any gift, emolument, money or thing of value, testimonial, privilege, appointment, or personal advantage, or the promise of either, bestowed or promised for the purpose of influencing, directly or indirectly, any ((baseball)) player, manager, umpire, club or league official, or anyone else having actual or potential influence over a sporting event to see which game an admission fee may be charged, or in which game of ((baseball)) any player, manager, ((or)) umpire, official, or anyone else having actual or potential influence over a sporting event is paid any compensation for his or her services. Said bribe as defined in RCW 67.04.010 through 67.04.080 need not be direct; it may be such as is hidden under the semblance of a sale, bet, wager, payment of a debt, or in any other manner designed to cover the true intention of the parties.

Sec. 35. RCW 67.04.050 and 2012 c 117 s 298 are each amended to read as follows:

Any ((baseball)) player, manager, umpire, referee, official, or club or league ((official))employee who shall commit any willful act of omission or commission in playing, or directing the playing, of a ((baseball)) game, sporting event, or contest, with intent to ((cause))manipulate a sporting event, including causing the ((ball club))team, with which he or she is affiliated, to lose a ((baseball)) game or event; or any umpire, referee, or official officiating in a ((baseball)) game or event, or any club or league ((official))employee who shall commit any willful act connected with his or her official duties for the purpose and with the intent to ((cause))manipulate a sporting event, including causing a ((baseball club))team to win or lose a ((baseball)) game or event, which it would not otherwise have won or lost under the rules governing the playing of said game, shall be guilty of a ((gross misdemeanor))class C felony.

Sec. 36. RCW 67.04.060 and 1921 c 181 s 6 are each amended to read as follows:

In all prosecutions under RCW 67.04.010 through 67.04.080, the venue may be laid in any county where the bribe herein referred to was given, offered or accepted, or in which the ((baseball game))sporting event or contest was played in relation to which the bribe was offered, given or accepted, or the acts referred to in RCW 67.04.050 committed.

Sec. 37. RCW 67.04.070 and 2012 c 117 s 299 are each amended to read as follows:

Nothing in RCW 67.04.010 through 67.04.080 shall be construed to prohibit the giving or offering of any bonus or extra compensation to any manager ((or baseball)), player, coach, or other persons connected with a collegiate or professional team, organization, or league by any person to encourage such manager or player to a higher degree of skill, ability, or diligence in the performance of his or her duties.

Sec. 38. RCW 67.04.080 and 1921 c 181 s 8 are each amended to read as follows:

RCW 67.04.010 through 67.04.080 shall apply only to ((baseball league and club officials))sporting event leagues, teams, players, referees, umpires, managers ((and players)), or anyone else having actual or potential influence over a sporting event who act in ((such))their official capacity in ((games))sporting events or contests where the public is generally invited to attend and ((a general admission))an entrance fee is charged.

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