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22LSO-0423
2022
STATE OF WYOMING
22LSO-0423
Numbered
2.0
HOUSE BILL NO. HB0126
Sports wagering entity-conditional operating permit.
Sponsored by: Representative(s) Walters and Senator(s) Landen
A BILL
for
AN ACT relating to gaming commission regulated activities; creating a conditional permit for sports wagering entities as specified; authorizing conditional operator permit holders to continue operating in the state as specified; imposing fees; providing a definition; requiring rulemaking; making conforming amendments; 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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24
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107 is created to read:
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24
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107.
Conditional operating permit; fees; application; continued operation.
(a)
The commission shall issue
a conditional operating permit
to an alternative
gaming entity
applicant that meets the following requirements:
(i)
Approval by the commission of the applicant's conditional operating permit application, accompanied by the required permit fee imposed by W.S. 9
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24
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103(b);
(ii)
Submission of initial information concerning the applicant's financial security and stability, which information shall include the applicant's anticipated quarterly handle, reserves, bonding amounts and any other information as provided by rule of the commission;
(iii)
No adverse finding by the commission on any disqualifying condition specified by W.S. 9
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103(j);
(iv)
No finding by the commission that issuing a permit to the applicant will endanger sports wagering patrons or the viability and integrity of the sports wagering industry in Wyoming;
(v)
Payment of the conditional operating permit fee imposed by W.S. 9
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103(c); and
(vi)
Certification by the applicant that the applicant will adhere to the continuing obligations imposed by subsection (b) of this section if issued a permit by the commission under this subsection.
(b)
Upon issuance of a conditional operating permit by the commission to an alternative gaming entity, and for the duration of the two (2) year permit period specified by W.S. 9
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103(c), the entity shall:
(i)
Submit to the commission on a bi
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weekly basis a risk verification report approved under rules of the commission concerning the balance of the alternative gaming entity's on
‑
hand cash reserves and bonding amounts
in comparison to its handle for the previous two (2) week period;
(ii)
Submit to the commission on a quarterly basis a report approved under rules of the commission detailing the alternative gaming entity's current handle, on
‑
hand cash reserves and bonding amounts; and
(iii)
Any other information as required by rule of the commission.
(c)
The commission shall promulgate rules specifying a process through which an alternative gaming entity may be regulated under this chapter as a qualified gaming entity, except that the entity shall not be required to offer online sports wagering in three (3) or more jurisdictions in the United States pursuant to a state regulatory structure. The rules shall provide for a uniform application to be submitted by the alternative gaming entity seeking to be regulated under this chapter as a qualified gaming entity, which application shall be submitted not more than one hundred eighty (180) days
before the expiration of the entity's conditional operating permit and shall be accompanied by a two thousand five hundred dollars ($2,500.00) application fee. Not more than ninety (90) days before the expiration of the entity's conditional operating permit, the commission shall issue the alternative gaming entity an initial sports wagering operator permit upon a finding by the commission that the entity has complied with the requirements of this section during the permit period up until the time of submitting the application and upon payment of a sports wagering operator permit fee in the amount of sixty thousand dollars ($60,000.00).
(d)
Any
alternative gaming entity
issued a sports wagering operator permit in accordance with subsection (c) of this section shall comply with the requirements imposed upon sports wagering operator permit holders under this chapter
except that the entity shall not be required to offer online sports wagering in not less than three (3) jurisdictions in the United States pursuant to a state regulatory structure. Any alternative gaming entity
issued
a sports wagering operator permit under this section may renew the permit in accordance with
W.S. 9
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103.
Section 2.
W.S. 9
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101(a)(x), (xiv) and by creating a new paragraph (xvi) and 9
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103(a), (b)(intro), (c), (f), (j)(intro), (k) and (o) are amended to read:
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101.
Definitions.
(a)
As used in this chapter:
(x)
"Qualified gaming entity" means a
gaming entity
person
that offers online sports wagering through computers, digital platforms or mobile applications in not less than three (3) jurisdictions in the United States pursuant to a state regulatory structure;
(xiv)
"Sports wagering operator" means any qualified
or alternative
gaming entity authorized by the commission to accept online sports wagers;
(xvi)
"Alternative gaming entity" means a person that offers online sports wagering through computers, digital platforms or mobile applications and who meets all the qualifications established by this chapter to accept online sports wagers;
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103.
Permits; fees; application.
(a)
A
sports wagering operator
qualified gaming entity and an alternative gaming entity
shall possess a permit issued by the commission to accept online sports wagers. No person shall accept online sports wagers without holding a valid permit issued by the commission.
(b)
A qualified gaming entity applying for a sports wagering operator permit
or an alternative gaming entity
applying for
a conditional operating permit under W.S. 9
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107
shall do so on
a
uniform
application
permit applications
furnished by the commission. The
fee for both an initial application and renewal
application
fee for an initial sports wagering operator permit and a
conditional operating permit
shall be two thousand five hundred dollars
($2,500.00). The application
renewal fee for a sports wagering operator permit shall be two thousand five hundred dollars ($2,500.00). Permit applications under this subsection
shall require an applicant, at a minimum, to provide:
(c)
The commission shall charge a permit fee of one hundred thousand dollars ($100,000.00) for an initial sports wagering operator permit
and a conditional operating permit under W.S. 9
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107
.
The commission shall charge a fee of fifty thousand dollars ($50,000.00) for a sports wagering operator permit renewal.
An initial
sports wagering operator
permit and any renewal permit shall each be valid for five (5) years.
The commission shall charge a fee of fifty thousand dollars ($50,000.00) for a sports wagering operator
A conditional operating
permit
renewal
under W.S. 9
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107 shall be valid for two (2) years and shall not be renewed
.
(f)
Sports wagering operator and sports wagering vendor permit fees charged pursuant to subsections (c) and
(e) of this section
and W.S. 9
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107(c)
shall be deposited
in the sports wagering account, which is hereby created. Subject to legislative appropriation, amounts within the account may be used by the commission for all expenses incurred in administering this chapter. On a quarterly basis, the commission shall transfer amounts within the account in excess of five hundred thousand dollars ($500,000.00) to the state treasurer for credit to the general fund.
(j)
The commission shall deny an application under this
article
chapter
upon finding any of the following:
(k)
Given a sufficient number of
qualified
gaming entity
applicants, at any one (1) time the commission shall issue not less than five (5) sports wagering operator permits to applicants that satisfy the requirements under this chapter. If an insufficient number of
qualified
gaming entity
applicants apply for a sports wagering operator permit, this provision shall not be interpreted to direct the commission to issue a permit to an unqualified applicant.
(o)
If the commission denies an application or intends to revoke or suspend a permit issued under this
article
chapter
, it shall notify the applicant or permittee in writing, stating the grounds for denial, revocation or suspension and informing the person of a right to submit, within not more than thirty (30) days, any additional documentation relating to the grounds for denial, revocation or suspension. Upon receiving any additional documentation, the commission shall reconsider its decision and inform the applicant of its decision within not more than twenty (20) days of the submission of information for reconsideration. A denial of an application or a revocation or suspension of a permit under this
article
chapter
shall be subject to the contested case procedures of the Wyoming Administrative Procedure Act.
Section 3
.
The Wyoming gaming commission shall promulgate rules necessary to implement this act on or before November 1, 2022.
Section 4.
(a)
Except as provided in subsection (b) of this section, this act is effective November 1, 2022.
(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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HB0126