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20LSO-0542
2020
STATE OF WYOMING
20LSO-0542
Numbered
2.0
HOUSE BILL NO. HB0234
Gaming regulation.
Sponsored by: Representative(s) Walters, Blake, Hunt and Walters and Senator(s) Coe, Driskill, Gierau and Landen
A BILL
for
AN ACT relating to gaming; providing for regulation of certain types of games; requiring permitting; providing for fees and taxes; providing penalties; providing rulemaking authority; and providing for effective dates.
Be It Enacted by the Legislature of the State of Wyoming:
Section 1
.
W.S. 9
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17
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201 through 9
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17
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204 are created to read:
ARTICLE 2
SKILL BASED AMUSEMENT GAMES
9
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17
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201.
Definitions.
(a)
As used in this article:
(i)
"Distributor" means a person engaged in the business of leasing or selling skill based amusement games to operators;
(ii)
"Establishment" means a single physical place of business wherein skilled based amusement games are operated for profit;
(iii)
"Gross income" means all revenue less payment of winnings;
(iv)
"Manufacturer" means a person engaged in the business of initially constructing skill based amusement games and selling skill based amusement games and software to distributors;
(v)
"Operator" means a person that owns or leases skill based amusement games and operates skill based amusement games for profit;
(vi)
"Skill based amusement game" means a game played in exchange for consideration of cash, credit or
other thing of value on a fixed, commercial electrical gaming device in which the bona fide skill of the player, determined by an individual's level of strategy and skill rather than any inherent element of chance, is the primary factor in determining the outcome and for which the player may be awarded a prize or other thing of value for a successful outcome;
(vii)
"Terminal collection and control system" means a programmable system, not directly connected to the internet, that provides complete game information, including reports, regarding the use of skill based amusement games and that has the ability to authorize or deauthorize game play.
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17
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202.
Permits; fees; requirements.
(a)
The board shall regulate skill based amusement games, establishments with skill based amusement games and manufacturers, distributor and operators of skill based amusement games. An establishment shall possess a permit issued by the board to allow the operation of skill based amusement games. A manufacturer shall possess a permit
issued by the board to sell skill based amusement games in Wyoming. A distributor shall possess a permit issued by the board to lease or sell skill based amusement games in Wyoming. An operator shall possess a permit issued by the board to own or operate a skill based amusement game at the operator's place of business in Wyoming.
(b)
A person applying for an initial establishment, manufacturer, distributor or operator permit shall do so on a uniform application furnished by the corporation. The applicant shall provide the board
fingerprints and other information and permission necessary for a criminal history record background check. The corporation shall perform full criminal background investigations on all permit applicants. The cost of the criminal history record background check shall be paid using a portion of the applicant's permit fee charged pursuant to subsection (d) of this section.
(c)
The board shall issue permits to qualified applicants. The board shall develop a list of objective criteria upon which the qualification of establishments, manufacturers, distributors and operators shall be based.
In developing these criteria, the board shall consider factors including the applicant's financial responsibility, security of the applicant's place of business or activity, accessibility to the public, integrity and reputation. The board shall not consider political affiliation, activities or monetary contributions to political organizations or candidates for any public office.
(d)
The board shall charge a fee of five hundred dollars ($500.00) for an initial establishment fee. The board shall charge a fee of five thousand dollars ($5,000.00) for an initial distributor or operator permit. The board shall charge a fee of ten thousand dollars ($10,000.00) for an initial manufacturer permit. A permit shall be valid for one (1) year. The board shall charge a fee of two hundred fifty dollars ($250.00) for an establishment permit renewal. The board shall charge a fee of two thousand five hundred dollars ($2,500.00) for a distributor or operator permit renewal. The board shall charge a fee of five thousand dollars ($5,000.00) for a manufacturer permit renewal.
(e)
Permit fees charged pursuant to subsection (d) of this section shall be remitted to the state treasurer for deposit in the lottery corporation gaming account, which is hereby created. Amounts within the account may be used by the corporation for operating expenses incurred in administering this article.
(f)
The board shall regulate skill based amusement games in accordance with the following:
(i)
Each manufacturer shall provide for a nationally recognized, independent gaming laboratory approved by the board to directly submit to the board a general functional evaluation laboratory report regarding the software installed on each skill based amusement game indicating whether the skill based amusement game is in compliance with this article;
(ii)
A skill based amusement game shall allow a player to exercise control over the game to the extent that there are no automatic winners and no prize shall be awarded without application of the player's skill and strategy;
(iii)
Increased game prizes shall require a higher level of skill and strategy from the player;
(iv)
If a skill based amusement game includes any form of a puzzle game, the player shall be able to preview and evaluate the puzzle prior to the payment of cash, credit or other thing of value in order to play the game;
(v)
No skill based amusement game shall allow a game play of more than three dollars ($3.00) per play;
(vi)
No skill based amusement game shall allow a payout of more than three thousand dollars ($3,000.00) per play;
(vii)
Each skill based amusement game shall be equipped with a terminal collection and control system. A terminal collection and control system shall calculate gross income earned by the operator on a skill based amusement game. Gross income shall be made for the operator to earn in increments of ten thousand dollars ($10,000.00).
Once an increment made available to earn is entirely depleted, the terminal collection and control system shall deauthorize play on the skill based amusement game until another increment is made available to earn. The board shall by rule establish an appropriate minimum payout ratio for skill based amusement games;
(viii)
An establishment shall have not more than five (5) skill based amusement games at any one (1) time;
(ix)
An establishment shall not locate a skill based amusement game in an area of the establishment into which a person under the age of eighteen (18) years may enter. An establishment shall conspicuously mark each area of the business with a skill based amusement game as an "age
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restricted area." The establishment shall not allow a person under the age of eighteen (18) years to play a skill based amusement game;
(x)
Each board approved skill based amusement game shall bear a board issued decal. The decal shall identify the manufacturer of the skill based amusement game. Decals shall not be transferred between skill based
amusement games. A decal shall be valid for twelve (12) months. The board shall charge an annual fee of fifty dollars ($50.00) for a decal. Fees charged pursuant to this paragraph shall be remitted to the state treasurer for deposit in the lottery corporation gaming account;
(xi)
A skill based amusement game shall only be operable for play when located in an establishment that possesses a valid license issued under W.S. 12
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4
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201, 12
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4
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301, 12
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4
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401, 12
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4
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407 or 12
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4
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413.
(g)
The board may conduct inspections of skill based amusement games and terminal collection and control systems as it deems necessary to administer this article.
(h)
The board shall promulgate appropriate recordkeeping and reporting rules for establishments, manufacturers, distributers and operators and any other appropriate rules to allow for administration and enforcement of this article. The promulgation of these rules shall be exempt from the requirements of W.S. 16
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3
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101 through 16
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3
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115.
(j)
Any establishment, manufacturer, distributor or operator aggrieved by an action of the board may appeal that decision to the first judicial district court.
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17
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203.
Distributions to state, counties, cities and towns.
(a)
Taxes shall be calculated and paid on a daily basis based on the gross income authorized by the terminal collection and control system for software sales in increments of ten thousand dollars ($10,000.00).
(b)
On a daily basis, a manufacturer shall remit to the corporation an amount equivalent to four and one
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half percent (4.5%) on each gross income increment of ten thousand dollars ($10,000.00) authorized on the manufacturer's skill based amusement games. The corporation shall remit these monies to the state treasurer for distribution to each county and its cities and towns by computing the proportion of monies collected that are attributable to operators in the county including its cities and towns to total monies collected from all operators in all counties including their cities and towns.
This proportion of the balance shall be distributed within each county as follows:
(i)
To a county in the proportion that the population of the county situated outside the corporate limits of its cities and towns bears to the total population of the county including cities and towns;
(ii)
To each city and town within the county in the proportion the population of the city or town bears to the total population of the county including its cities and towns.
(c)
On a daily basis, a manufacturer shall remit to the corporation an amount equivalent to four and one
‑
half percent (4.5%) on each gross income increment of ten thousand dollars ($10,000.00) authorized on the manufacturer's skill based amusement games. The corporation shall remit these monies to the state treasurer for distribution to the school foundation program account.
(d)
O
n a daily basis, a manufacturer shall remit to the corporation an amount equivalent to one percent (1%) on
each gross income increment of ten thousand dollars ($10,000.00) authorized on the manufacturer's skill based amusement games. The corporation shall deposit these monies in the lottery corporation gaming account to be used for operating expenses of the corporation.
(e)
The chief executive officer
shall provide annually to the department of audit, the joint revenue interim committee, the joint travel, recreation, wildlife and cultural resources interim committee and the board a full and complete statement of revenues received by the corporation pursuant to this article.
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17
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204.
Penalties.
(a)
An operator who knowingly allows the operation of one (1) or more of the operator's skill based amusement games and who does not possess a valid operator permit issued by the board under this article shall be subject to the following, in addition to any penalty imposed under W.S. 6
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7
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102:
(i)
For a first offense:
(A)
A civil penalty of five thousand dollars ($5,000.00) per skill based amusement game in violation; and
(B)
Forfeiture of each of the operator's skill based amusement games in operation.
(ii)
For a second or subsequent offense:
(A)
A civil penalty of ten thousand dollars ($10,000.00) per skill based amusement game in violation; and
(B)
Forfeiture of each of the operator's skill based amusement games in operation.
(b)
The board shall not issue an operator permit to a person who has been subject to multiple civil penalties under subsection (a) of this section.
(c)
An operator or distributor who possesses a valid permit issued by the board under this article who knowingly
allows the operation of one (1) or more of the operator's skill based amusement games to be operated in a manner inconsistent with the requirements of W.S. 9
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17
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202(f)(i) through (xi) shall be subject to a civil penalty of five thousand dollars ($5,000.00) per skill based amusement game operated in a manner inconsistent with W.S. 9
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17
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202(f)(i) through (xi), in addition to any penalty imposed under W.S. 6
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7
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102.
Section 2
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W.S. 6
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7
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101(a)(iii) by creating a new subparagraph (M), 7
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19
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201(a)(xxi) and 9
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17
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103(a)(vi) and (xiv) are amended to read:
6
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7
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101.
Definitions.
(a)
As used in this article:
(iii)
"Gambling" means risking any property for gain contingent in whole or in part upon lot, chance, the operation of a gambling device or the happening or outcome of an event, including a sporting event, over which the person taking a risk has no control, but does not include any of the following:
(M)
Playing any skill based amusement game, as defined in W.S. 9
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17
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201(a)(vi), which bears a decal issued by the lottery corporation.
7
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19
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201.
State or national criminal history record information.
(a)
The following persons shall be required to submit to fingerprinting in order to obtain state and national criminal history record information:
(xxi)
Board members, applicants, vendors
,
and
retailers
, establishments, manufacturers, distributors and operators
required to receive a background investigation as provided in W.S. 9
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17
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104(c), 9
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17
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110(e)
,
and
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17
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120(b) and (c)(i)
and 9
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17
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202(b)
. Fingerprint card submissions under this paragraph shall be forwarded through the division of criminal investigation and the division of criminal investigation shall be responsible for receiving and screening the results of any record check to determine an applicant's suitability for employment or licensing under the provisions specified in this paragraph;
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17
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103.
Definitions.
(a)
As used in this chapter:
(vi)
"Lottery," "lotteries," "lottery game" or "lottery games" means any game of chance approved by the board and operated pursuant to this
chapter
article
, specifically limited to a state lottery or multi
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state games, and shall not include instant tickets, scratch
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off tickets, video lottery terminals or any other electronic game involving direct physical contact between the player and a machine;
(xiv)
"Vendor" or "retailer" means any person authorized to supply lottery goods or services under this
act
article
.
Section 3.
The board of directors of the lottery corporation shall promulgate rules required by this act not later than July 1, 2020.
Section 4.
(a)
Except as provided in subsection (b) of this section, this act is effective July 1, 2020.
(b)
Sections 3 and 4 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
(END)
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HB0234