AN ACT relating to sports wagering.

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AN ACT relating to sports wagering. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
SECTION 1. A NEW SECTION OF KRS 230.805 TO 230.826 IS CREATED 3
TO READ AS FOLLOWS: 4
(1) As used in this section, "suspicious wagering activity" means unusual wagering 5
activity that cannot be otherwise explained and is indicative of match fixing, the 6
manipulation of an event, misuse of inside information, or other prohibited 7
activity. 8
(2) Sports wagering licensees and service providers shall not limit the size or 9
frequency of deposits or wagers of any person engaging in sports wagering based 10
on: 11
(a) If a person obtai ns a financial benefit as a result of their wagering activity; 12
or 13
(b) Due to that person's wagering activity, unless the wagering activity: 14
1. Constitutes suspicious wagering activity; or 15
2. Indicates that a person is a problem or compulsive gambler. 16
(3) If a person is limited or banned, a sports wagering licensee or service provider 17
shall send that person an electronic notification within twenty -four (24) hours of 18
issuing the limit or ban to include: 19
(a) The manner in which a person is being restricted; 20
(b) An explanation of why the person is being limited or banned, including 21
specifying if the restriction is for suspicious wagering activity or problem 22
gambling; 23
(c) The duration of the limit or ban; 24
(d) Directions on how to appeal a limit or ban under subsection (4) of this 25
section; and 26
(e) A link to the Kentucky Cabinet for Health and Family Services problem 27
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gambling program resources webpage if the limit or ban is due to problem 1
gambling. 2
(4) Sports wagering licensees and service providers shall: 3
(a) Establish an appeal process for a person that has been limited or banned 4
under this section; and 5
(b) Notify that person of the determination of an appeal within one (1) week of 6
the appeal being submitted. 7
Section 2. KRS 230.805 is amended to read as follows: 8
(1) The corporation shall institute a system of sports wagering in conformance with 9
federal law, this chapter, and by administrative regulations promulgated under the 10
authority of KRS 230.215. 11
(2) Sports wagering shall not be offered in this state except as authorized by this 12
section and KRS 230.811. A track that holds a license to operate sports wagering 13
may contract with sports wagering service providers to conduct or manage sports 14
wagering operations as authorized by this chapter. Sports wagering may be 15
provided at a licensed facility for sports wagering or online through a website or 16
mobile application. The licensed facility for sports wagering or a sports wagering 17
service provider may provide sports wagering through a website or mobile interface 18
as approved by the corporation. The corporation may provide temporary licenses to 19
licensed facilities for sports wagering or sports wagering service providers, if t he 20
corporation deems that the information submitted by them is sufficient to determine 21
the applicant's suitability. The corporation may promulgate administrative 22
regulations to establish the suitability for temporary and ordinary license 23
applications for l icensed facilities for sports wagering, sports wagering service 24
providers, and any related parties. 25
(3) Sports wagering licensees and service providers that accept wagers online via 26
websites and mobile applications shall impose the following requirements: 27
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(a) Prior to placing a wager online via websites or mobile applications operated 1
by either a sports wagering licensee or a service provider, a patron shall 2
register the patron's sports wagering account with the operating sports 3
wagering licensee or service provider either in person at a licensed facility for 4
sports wagering or remotely through the service provider's website or mobile 5
application; 6
(b) 1. The registration process shall include attestation that the patron meets 7
the requirements to place a wage r with a sports wagering licensee or 8
service provider in this state. 9
2. Prior to verification of a patron's identity, a sports wagering licensee or 10
service provider shall not allow the patron to engage in sports wagering, 11
make a deposit, or process a withdrawal via the patron's sports wagering 12
account. 13
3. A sports wagering licensee or service provider shall implement 14
commercially and technologically reasonable procedures to prevent 15
access to sports wagering by any person under the age of twenty-one 16
(21)[eighteen (18)]: 17
a. At a licensed facility; and 18
b. Online via website or mobile application. 19
4. A sports wagering licensee or service provider may use information 20
obtained from third parties to verify that a person is authorized to open 21
an account, place wagers, and make deposits and withdrawals; 22
(c) A sports wagering licensee or service provider shall adopt an account 23
registration policy to ensure that all patrons are authorized to place a wager 24
with a sports wagering licensee or service provider within the Co mmonwealth 25
of Kentucky. This policy shall include, without limitation, a mechanism by 26
which to: 27
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1. Verify the name and age of the patron; 1
2. Verify that the patron is not prohibited from placing a wager; and 2
3. Obtain the following information: 3
a. A physical address other than a post office box; 4
b. A phone number; 5
c. A unique user name; and 6
d. An email[e-mail] account; 7
(d) A sports wagering licensee or service provider shall use all commercially and 8
technologically reasonable means to ensure that each patron is limited to one 9
(1) account with that service provider in the Commonwealth, but nothing in 10
this paragraph restricts a patron from holding other sports wagering accounts 11
in other jurisdictions; 12
(e) A sports wagering licensee or service provider, in addition to complying with 13
state and federal law pertaining to the protection of the private, personal 14
information of patrons, shall use all othe r commercially and technologically 15
reasonable means to protect this information consistent with industry 16
standards; 17
(f) A sports wagering licensee or service provider shall use all commercially and 18
technologically reasonable means to verify the identity of the patron making a 19
deposit or withdrawal; 20
(g) A sports wagering licensee or service provider shall utilize geolocation or 21
geofencing technology to ensure that wagers are only accepted from patrons 22
who are physically located in the Commonwealth. A sports wagering licensee 23
or service provider shall maintain in this state its servers used to transmit 24
information for purposes of accepting or paying out wagers on a sporting 25
event placed by patrons in this state; 26
(h) A patron may fund the patron's account using any acceptable form of payment 27
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or advance deposit method, which shall include the use of cash, cash 1
equivalents, credit cards, debit cards, automated clearing house, other 2
electronic methods, and any other form of payment authorized by the 3
corporation; and 4
(i) The corporation may enter into agreements with other jurisdictions or entities 5
to facilitate, administer, and regulate multijurisdictional sports betting by 6
sports betting operators to the extent that entering into the agreement is 7
consistent with st ate and federal laws and the sports betting agreement is 8
conducted only in the United States. 9
(4) A track may contract with no more than three (3) service providers at a time to 10
conduct and manage services and technology which support the operation of spor ts 11
betting both on the track and online via websites and mobile applications. The 12
website or mobile application used to offer sports betting shall be offered only 13
under the same brand as the track or that of the service provider contracted with the 14
track, or both. 15
(5) A track or service provider through an agreement with a licensed track shall not 16
offer sports wagering until the corporation has issued a sports wagering license to 17
the track, except for temporary licenses authorized under KRS 230.814. 18
(6) (a) A track licensed under KRS 230.811 may offer sports wagering at a facility 19
that meets the definition of "track" in KRS 230.210. 20
(b) A simulcast facility may offer sports wagering through an agreement with a 21
track by using any of that track's already established service providers. 22
Section 3. KRS 2.015 is amended to read as follows: 23
Persons of the age of eighteen (18) years are of the age of majority for all purposes in this 24
Commonwealth except for the purchase of alcoholi c beverages, sports wagering, and for 25
purposes of care and treatment of children with disabilities, for which twenty -one (21) 26
years is the age of majority, all other statutes to the contrary notwithstanding. 27
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Section 4. This Act may be cited as the Kentucky Fair Play Act. 1