MOBILE SPORTS WAGERING; TAX

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SENATE BILL NO. 194

IN THE LEGISLATURE OF THE STATE OF ALASKA

THIRTY-FOURTH LEGISLATURE - FIRST SESSION

BY SENATOR CRONK

Introduced: 5/14/25
Referred: Labor and Commerce, Finance

A BILL

FOR AN ACT ENTITLED

"An Act authorizing mobile sports wagering; relating to the reg ulation of mobile sports 1
wagering; imposing a tax on mobile sports wagering revenue; rel ating to criminal 2
history record checks for licensure to operate mobile sports wagering; and providing for 3
an effective date." 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 5
* Section 1. AS 04.11.370(c) is amended to read: 6
(c) If the board receives notice from the Department of Revenu e that a 7
licensee or permittee has viol ated a provision of AS 05.15 or AS 05.18 related to 8
gambling, the board 9
(1) may suspend the license or permit; and 10
(2) shall suspend the license or permit for a period of at least 30 days if 11
the offense is the person's second or subsequent violation of A S 05.15 or AS 05.18 12
related to gambling. 13
* Sec. 2. AS 05 is amended by adding a new chapter to read: 14
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Chapter 18. Mobile Sports Wagering. 1
Sec. 05.18.010. Mobile sports wagering license. (a) A person may not offer 2
or operate mobile sports wagering in this state without a licen se issued under this 3
chapter. 4
(b) The commissioner may issue or renew a mobile sports wageri ng license to 5
a person that 6
(1) submits an application on a form approved by the commissioner; 7
(2) pays the license fee required under (d) of this section; 8
(3) meets the application requi rements established under (c) o f this 9
section; 10
(4) has, or has a subsidiary, partner, or joint operating agre ement with 11
a person who has, a mobile sports wagering license in at least three other states; 12
(5) meets any other qualifications established by the commissi oner by 13
regulation; and 14
(6) has submitted the fingerprints of the applicant and each p erson 15
disclosed under (c)(2) of this s ection and has provided the fee s required by the 16
Department of Public Safety under AS 12.62.160 for criminal jus tice information and 17
a national criminal history record check; the fingerprints and fees shall be forwarded 18
to the Department of Public Safety to obtain a report of crimin al justice information 19
under AS 12.62 and a national criminal history record check und er AS 12.62.400; or 20
submits the results of a criminal history record check conducted in another state within 21
the previous 12 months and a certification that there has been no material change since 22
the criminal history record check was completed. 23
(c) An applicant for a license or license renewal under this chapter shall 24
(1) include in the applicati on the name, current address, and telephone 25
number of the applicant; 26
(2) disclose, if the applicant is not an individual, 27
(A) the state in which the app licant is incorporated, organize d, 28
or formed and any state in which the applicant is registered to do business; 29
(B) the names and addresses of all of the applicant's partners , 30
executive officers, managers, directors, and corporate officers; 31
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(C) each corporate holding company, parent company, or 1
subsidiary company of a corporate applicant and each person tha t owns 15 2
percent or more of the corporate applicant's business and that has the ability to 3
control the activities of the corporate applicant or elect a ma jority of the board 4
of directors of that corporate applicant, except for a bank or other licensed 5
lending institution that holds a mortgage or other lien acquire d in the ordinary 6
course of business; 7
(D) each person associated with a noncorporate applicant that 8
directly or indirectly holds a b eneficial or proprietary intere st in the 9
noncorporate applicant's business operation or that the commissioner otherwise 10
determines has the ability to control the noncorporate applicant; and 11
(E) any executive, employee, or agent of the applicant who has 12
ultimate decision-making authorit y over the conduct of the appl icant's mobile 13
sports wagering operations in the state; 14
(3) provide a record of any other gambling-related licenses or 15
applications previously issued or revoked for the applicant under this chapter or in any 16
other jurisdiction; 17
(4) provide proof that the mob ile sports wagering system the a pplicant 18
intends to use has been tested and certified for use in another jurisdiction of the United 19
States by an independent testing laboratory; and 20
(5) provide any additional information required by the commissioner. 21
(d) An applicant for an initial license or license renewal und er this section 22
shall pay a license fee of $100,000. In addition to the license fee, the commissioner 23
may charge a processing fee for an initial or renewed license. 24
(e) A mobile sports wagering license issued under this section g r a n t s a 25
licensee the authority to conduct mobile sports wagering throug h any mobile 26
application or digital platform approved by the commissioner wi thin the terms of the 27
license and regulations adopted under this chapter. A mobile sp orts wagering license 28
or renewal is valid for one yea r unless suspended or revoked un der AS 05.18.020 and 29
may not be transferred to another person. 30
(f) A licensee shall give written notice within 30 days after any material 31
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change to information provided in the licensee's application fo r a license or license 1
renewal, including any change in the information disclosed in (c)(2) of this section. 2
(g) The commissioner may not approve the issuance of more than 10 mobile 3
sports wagering licenses under this section. If there are more applicants than available 4
licenses, the commissioner shall issue licenses to the applican ts that the commissioner 5
determines are the most qualifie d based on each applicant's pas t relevant experience 6
and projected adjusted gross revenue and the projected amount o f tax revenue the 7
applicant is expected to generate. 8
(h) The commissioner shall keep confidential all application i nformation used 9
in the course of approving or denying an application, including a n y p r o p r i e t a r y 10
information, confidential comme rcial information, or confidenti al financial 11
information that pertains to an applicant or licensee. The comm issioner may only 12
release records and information that are kept confidential under this subsection 13
(1) if the release is necessary to comply with a court order, if the 14
requester is a state or federal agency, or if the requester is under contract with the state 15
or federal agency to conduct research; 16
(2) if the information is an aggregate compilation of tax info rmation 17
from three or more licensees; and 18
(3) after 25 years, at which time the records and information that were 19
kept confidential under this subs ection become public records s ubject to inspection 20
and copying under AS 40.25.110 - 40.25.140. 21
Sec. 05.18.020. Denial, reprimand, suspension, or revocation of license. 22
The commissioner may deny a license to an applicant, reprimand a licensee, or 23
suspend or revoke a license if the applicant or licensee 24
(1) knowingly makes a false stat ement of material fact to the 25
commissioner; 26
(2) intentionally does not disc lose the existence or identity of a person 27
as required under AS 05.18.010(c)(2); 28
(3) has had a license revoked by any government agency respons ible 29
for the regulation of wagering or gaming activities; 30
(4) has been convicted of a crime of moral turpitude, a gambli ng-31
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related offense, or a theft or fraud offense or has otherwise d emonstrated, evidenced 1
by a police record or other satisfactory evidence, a lack of respect for law and order; 2
(5) has not demonstrated to the satisfaction of the commission er 3
financial responsibility sufficient to adequately meet the requ irements of the operation 4
of a mobile sports wagering business or proposed mobile sports wagering business; or 5
(6) has not met the requirements of this chapter. 6
Sec. 05.18.030. Licensee duties. (a) A licensee shall 7
(1) use a software monitoring system that meets industry stand ards to 8
identify irregularities in volume or usage changes that may sig nal suspicious activity 9
requiring further investigation; a licensee shall promptly report irregular activity to the 10
commissioner for further investigation; 11
(2) promptly report to state or federal law enforcement any fa cts or 12
circumstances related to the operation of a mobile sports wager ing system that 13
constitute a violation of state or federal law, any suspicious betting over a threshold set 14
by the licensee and approved by the commissioner, or any bettin g that would require 15
disclosure under 31 C.F.R. 1021.320; 16
(3) conduct all mobile sports w agering activities in a manner that does 17
not threaten the public health, safety, or welfare of the people of the state; 18
(4) verify the identity of a person opening a sports wagering account to 19
ensure that persons placing wagers are real; 20
(5) keep current all payments and obligations to the commissioner; 21
(6) prevent any person from tamp ering or interfering with the 22
operation of mobile sports wagering activities; 23
(7) ensure that mobile sports wagering is offered only using a mobile 24
application or digital platform approved by the commissioner, i n a manner consistent 25
with federal law, that uses communication technology to accept wagers originating in 26
the state or in a state or jurisdiction approved by the commissioner; 27
(8) maintain sufficient funds t o conduct mobile sports wagerin g at all 28
times; and 29
(9) maintain daily records of gross receipts and adjusted gros s receipts 30
and timely file any additional reports required by the commissioner. 31
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(b) A licensee may not advertise or otherwise promote mobile s ports wagering 1
to persons under 21 years of age. 2
Sec. 05.18.040. Commissioner of reve nue to administer chapter; duties of 3
commissioner. (a) The commissioner shall 4
(1) administer and enforce this chapter; 5
(2) keep a record of all licenses issued under this chapter; 6
(3) impose and collect all fees, penalties, and tax on adjuste d gross 7
revenue imposed by this chapter. 8
(b) The commissioner may 9
(1) conduct hearings and investigations necessary to administe r this 10
chapter; 11
(2) issue a subpoena to compel the attendance of a witness or a 12
subpoena duces tecum for the production of books, records, and other relevant 13
documents necessary for an investigation under this chapter; 14
(3) administer an oath or affirmation to a witness; 15
(4) take appropriate action to e nforce this chapter, including filing a 16
petition for injunctive relief, bringing a civil action, or iss uing a notice of violation of 17
this chapter or a regulation adopted under this chapter, an ord er to cease and desist, or 18
a closure order; 19
(5) enter into a mobile sports wagering agreement with another state, 20
territory, jurisdiction, government, or other entity to accept wagers from patrons 21
located outside the state, in compliance with applicable state and federal law; and 22
(6) take all necessary actions t o ensure that a mobile sports wagering 23
agreement entered into under this chapter becomes effective. 24
Sec. 05.18.050. House rules; required disclosures. (a) A licensee shall adopt 25
house rules for mobile sports wagering transactions. The house rules must specify how 26
amounts to be paid on winning wagers are determined, the circum stances under which 27
the licensee will void a bet, treatment of errors, late bets, a nd related contingencies, 28
and the effect of schedule changes. A licensee shall obtain app roval of house rules 29
from the commissioner before starting mobile sports wagering operations. 30
(b) The house rules must be available on the mobile sports wagering system. 31
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(c) A licensee shall include a statement on its mobile sports wagering system 1
providing information on gambling disorders and resources and e ntities providing 2
assistance for gambling disorders, including the telephone number 1-800-GAMBLER. 3
The licensee shall display the statement in a manner and place conspicuous to a person 4
gambling on the mobile sports wagering system. 5
Sec. 05.18.060. Permissible forms of mobile sports wagering. Permissible 6
forms of mobile sports wagering that may be conducted under a m obile sports 7
wagering license include single-game bets, teaser bets, parlays , over-under, money-8
line, pools, exchange wagering, in-game wagering, in-play bets, proposition bets, 9
straight bets, futures, and othe r forms of sports wagering appr oved by the 10
commissioner. 11
Sec. 05.18.070. Wagers and excluded persons. (a) A licensee may accept 12
wagers on wagering events through the use of a mobile applicati on, a digital platform, 13
or a person's sports wagering account. 14
(b) A licensee may accept and place layoff wagers by and with other licensees. 15
A licensee placing a layoff wager with another licensee shall i nform the other licensee 16
that the wager is being placed by a licensee and disclose the licensee's identity. 17
(c) A person placing a wager must be 21 years of age or older and physically 18
located in the state or in a state, territory, or jurisdiction with which the commissioner 19
has entered into a mobile sports wagering agreement. 20
(d) The commissioner or a licensee may exclude a person from participating in 21
or operating mobile sports wagering. The commissioner shall kee p a list of all 22
excluded persons and share the list with each licensee. 23
(e) A licensee, employee of a licensee, or family member livin g in the same 24
household of a licensee may not p lace a wager on any wagering e vent through the 25
mobile sports wagering system under control of the licensee. 26
Sec. 05.18.080. Funding wagers. (a) A licensee may establish a sports 27
wagering account electronically t hrough an approved mobile appl ication or digital 28
platform. 29
(b) A licensee shall permit a person to fund a sports wagering account using 30
(1) a credit or debit card in that person's name; 31
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(2) bonuses or promotions; 1
(3) electronic bank transfers from a bank account in that pers on's 2
name; 3
(4) an online or mobile payment system that supports online mo ney 4
transfers; 5
(5) any other means approved by the commissioner. 6
Sec. 05.18.090. Mobile sports wagering revenue tax. (a) Each calendar year, 7
a tax of 20 percent is levied on the adjusted gross revenue received by a licensee from 8
mobile sports wagering authorized under this chapter. The provi sions of AS 43.05 and 9
AS 43.10 apply to the enforcement and collection of the tax. 10
(b) On or before the 15th day of each month, a licensee shall complete and 11
submit to the commissioner, by electronic means on a form presc ribed by the 12
commissioner, a tax return for each preceding month that includes 13
(1) the gross revenue and adjusted gross revenue received from mobile 14
sports wagering authorized under this chapter for the preceding month; 15
(2) the tax due for which the licensee is liable; 16
(3) any additional information necessary for the computation a nd 17
collection of the tax on adjusted gross revenue under this section. 18
(c) A licensee shall remit the tax due, as shown on the tax re turn filed under 19
(b) of this section, by electronic means simultaneously with the filing of the return. 20
(d) If the winnings paid to a licensee's patrons exceed the li censee's gross 21
revenue for a month, the licensee may carry forward the negativ e amount for tax 22
returns filed in subsequent months for up to three years from t he date of the negative 23
gross receipt. The negative amount of adjusted gross revenue ma y not be carried back 24
to an earlier month and tax revenue previously received by the commissioner may not 25
be refunded, unless the licensee surrenders its mobile sports w agering license and the 26
licensee's last return reported negative adjusted gross revenue. 27
(e) A licensee under AS 05.18.010 is exempt from taxes levied and collected 28
on wagering revenue by municipalities. 29
Sec. 05.18.100. Regulations. The commissioner shall adopt regulations under 30
AS 44.62 (Administrative Procedure Act) necessary to carry out this chapter. When 31
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adopting regulations, the commissi oner shall review regulations in other states where 1
mobile sports wagering is conducte d and, as practicable, adopt similar regulations. 2
The regulations must include 3
(1) standards and procedures for the issuance, renewal, and re vocation 4
of a mobile sports wagering license; 5
(2) the establishment of fees necessary to administer and enfo rce this 6
chapter; 7
(3) instructions for how wagers on a wagering event or series of 8
wagering events may be placed and accepted; 9
(4) a requirement that a licensee use the accrual method of accounting; 10
(5) the types of records a licensee must keep; 11
(6) protections for patrons; 12
(7) promotion of social responsibility and responsible wagering; 13
(8) standards for the adoption of house rules by a licensee an d the 14
approval of house rules; 15
(9) minimum design and security requirements for mobile applic ations 16
and digital platforms for the acceptance of wagers from digital participants, including 17
age verification, physical location in the state, and identity requirements; 18
(10) minimum design, security, testing, and approval requireme nts for 19
mobile sports wagering systems; 20
(11) standards for involuntary placement on a list of persons who are 21
not authorized to wager on wageri ng events and procedures for v oluntarily requesting 22
one's name to be included on the list or removed from the list; 23
(12) internal control standards for a licensee, including proc edures for 24
safeguarding assets and revenue; recording of cash and indebted ness; maintenance of 25
reliable records, accounts and re ports of transactions, and ope rations and events; 26
required audits; and the content of and frequency with which re ports of mobile sports 27
wagering activities and revenue shall be made to the commissioner; and 28
(13) other matters the commissi oner considers necessary to car ry out 29
the purposes of this chapter and to protect the public interest. 30
Sec. 05.18.110. Violations of chapter; fraudulent acts. If a person violates 31
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this chapter or engages in a fraudulent act, the commissioner may 1
(1) if the person is a licensee, suspend, revoke, or restrict the license of 2
the licensee; 3
(2) if the person is an employee of a licensee, require the suspension or 4
termination of the employee in order for the licensee to continue operations; 5
(3) impose for each violation of this chapter a penalty of not more than 6
$10,000. 7
Sec. 05.18.120. Authorized act ivities a privilege. The activities specified in 8
AS 05.18.010 may be permitted as a privilege and do not confer a right on any person 9
to conduct the activities. 10
Sec. 05.18.190. Definitions. In this chapter, 11
(1) "adjusted gross revenue" means gross revenue from mobile s ports 12
wagering authorized under this chapter, less winnings, voided b ets, and excise taxes 13
paid under federal law; 14
(2) "commissioner" means the commissioner of revenue; 15
(3) "gross revenue" means the total amount of wagers received; 16
(4) "licensee" means a person licensed under this chapter; 17
(5) "mobile sports wagering" means the business of accepting w agers 18
on a wagering event, a portion of a wagering event, individual performance statistics 19
of an individual participating in a wagering event, or a combin ation of performance 20
statistics of individuals participating in a wagering event by a system or method of 21
wagering approved by the commissioner conducted on a mobile app lication or digital 22
platform that uses communicati on technology to accept wagers; " mobile sports 23
wagering" does not include fanta sy sports contests in which par ticipants assemble 24
teams of athletes or individuals and the winning outcome may de pend on the 25
knowledge and skill of the participants but is determined predo minantly by the 26
accumulated statistical results of the performance of athletes or individuals 27
participating in the sporting event; 28
(6) "professional athletic event " means an event at which two or more 29
contestants participate in an at hletic event and one or more co ntestants have the 30
opportunity to receive compensation that exceeds the contestant 's actual expenses for 31
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their participation in the event; 1
(7) "sports wagering account" means a financial account established by 2
a licensee for a patron in which the patron may deposit and wit hdraw funds for wagers 3
and other authorized purchases, and to which the licensee may c redit winnings or 4
other amounts due to a patron; 5
(8) "wager" means a sum of money or thing of value risked on a n 6
uncertain occurrence; 7
(9) "wagering event" includes a collegiate, amateur, or profes sional 8
athletic event, an international athletic event, a motor vehicl e race, an electronic 9
sporting event, or another event permitted by the commissioner; "wagering event" 10
does not include an athl etic event, other than an Olympic event , in which most of the 11
participants are under 18 years of age. 12
* Sec. 3. AS 11.66.280(3) is amended to read: 13
(3) "gambling" means that a person stakes or risks something o f value 14
upon the outcome of a contest of chance or a future contingent event not under the 15
person's control or influence, upon an agreement or understandi ng that that person or 16
someone else will receive something of value in the event of a certain outcome; 17
"gambling" does not include 18
(A) bona fide business transac tions valid under the law of 19
contracts for the purchase or sale at a future date of securiti es or commodities 20
and agreements to compensate for loss caused by the happening o f chance, 21
including contracts of indemnity or guaranty and life, health, or accident 22
insurance; 23
(B) playing an amusement device that 24
(i) confers only an immediate right of replay not 25
exchangeable for something of va lue other than the privilege of 26
immediate replay and does not contain a method or device by which the 27
privilege of immediate replay may be cancelled or revoked; 28
(ii) confers only tickets, cred its, allowances, tokens, or 29
anything of value that can be redeemed for toys, candy, or elec tronic 30
novelties offered at the same facility where the amusement devi ce is 31
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located; or 1
(iii) allows a player to manipulate a claw machine or 2
similar device within an enclosure and enables a person to rece ive 3
merchandise directly from the machine; 4
(C) an activity authorized by the Department of Revenue under 5
AS 05.15 or AS 05.18; or 6
(D) the permanent fund divi dend raffle authorized under 7
AS 43.23.230; 8
* Sec. 4. AS 12.62.400(a) is amended by adding a new paragraph to read: 9
(26) licensure to operate mobile sports wagering under AS 05.18.010. 10
* Sec. 5. AS 44.64.030(a)(2) is amended to read: 11
(2) AS 05.15 and AS 05.18 (charitable gaming ; mobile sports 12
wagering); 13
* Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 14
read: 15
TRANSITION: REGULATIONS. (a) The Department of Revenue may adop t 16
regulations necessary to implement the changes made by this Act . The regulations take effect 17
under AS 44.62 (Administrative Procedure Act), but not before t he effective date of the law 18
implemented by the regulation. 19
(b) If the Department of Reve nue adopts regulations under this section after the 20
effective date of secs. 1 - 5 and 7 of this Act, the regulation s may be imposed retroactively to 21
the effective date of secs. 1 - 5 and 7 of this Act. 22
* Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 23
read: 24
TRANSITION: START OF OPERATIONS. The Department of Revenue shal l 25
announce to the general public, at least 14 days in advance, wh en licensees operating under 26
AS 05.18.010, enacted by sec. 2 of this Act, may start operatio ns. Operations may not start 27
under this section until the commissioner of revenue issues a minimum of three licenses under 28
AS 05.18.010, enacted by sec. 2 of this Act. 29
* Sec. 8. Section 6 of this Act takes effect immediately under AS 01.10.070(c). 30
* Sec. 9. Except as provided in sec. 8 of this Act, this Act takes effect January 1, 2026. 31