Bill Summary – FastDemocracy

General Assembly                         Committee Bill No. 21
      February Session, 2020                  LCO No. 1587
     Referred to Committee on PUBLIC SAFETY AND SECURITY
     Introduced by:
       (PS)
 AN ACT AUTHORIZING SPORTS WAGERING, INTERNET GAMING, A
 CASINO GAMING FACILITY IN BRIDGEPORT, ENTERTAINMENT
 ZONE FACILITIES, INTERNET LOTTERY AND INTERNET KENO.
 Be it enacted by the Senate and House of Representatives in General
 Assembly convened:
       Section 1. (NEW) (Effective July 1, 2020) For the purposes of this
    section and sections 2 to 12, inclusive, of this act:
       (1) "Casino gaming facility" has the same meaning as provided in
    section 12-557b of the general statutes, as amended by this act;
       (2) "Electronic wagering platform" or "platform" means the
    combination of hardware, software and data networks used to manage,
    administer, offer or control sports wagering or casino gaming over the
    Internet, including through an Internet web site or a mobile device;
      (3) "Entertainment zone facility" means a facility authorized to
   conduct retail sports wagering and e-sports pursuant to section 5 of this
   act or any other provision of the general statutes or a public or special
   act;
      (4) "E-sports" means electronic sports and competitive video games
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 played as a game of skill and for which wagering by nonparticipants
 may be authorized pursuant to section 6 of this act or any other
 provision of the general statutes or a public or special act;
    (5) "Gross gaming revenue from online casino gaming" means the
 total of all sums actually received by an operator of online casino
 gaming less the total of all sums paid as winnings to patrons of the
 operator of online casino gaming and any federal excise tax applicable
 to such sums received, provided the total of all sums paid as winnings
 to such patrons shall not include the cash equivalent value of any
 merchandise or thing of value included in a jackpot or payout, and
 provided further the issuance to or wagering by such patrons of any
 promotional gaming credit shall not be included in the total of all sums
 actually received by an operator of online casino gaming for the
 purposes of determining gross gaming revenue;
    (6) "Gross gaming revenue from sports wagering" means the total of
 all sums actually received by an operator of sports wagering less the
 total of all sums paid as winnings to patrons of the operator of sports
 wagering and any federal excise tax applicable to such sums received,
 provided the total of all sums paid as winnings to such patrons shall not
 include the cash equivalent value of any merchandise or thing of value
 included in a jackpot or payout, and provided further the issuance to or
 wagering by such patrons of any promotional gaming credit shall not
 be included in the total of all sums actually received by an operator of
 sports wagering for the purposes of determining gross gaming revenue;
   (7) "Indian lands" has the meaning set forth in the Indian Gaming
 Regulatory Act, 25 USC 2703(4);
    (8) "Mashantucket Pequot memorandum of understanding" means
 the memorandum of understanding entered into by and between the
 state and the Mashantucket Pequot Tribe on January 13, 1993, as
 amended from time to time;
   (9)   "Mashantucket     Pequot    procedures"     means     the     Final
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 Mashantucket Pequot Gaming Procedures prescribed by the Secretary
 of the United States Department of the Interior pursuant to 25 USC
 2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31,
 1991), as amended from time to time;
    (10) "MMCT Venture, LLC" means a limited liability company (A)
 jointly and exclusively owned by the Mashantucket Pequot Tribe and
 the Mohegan Tribe of Indians of Connecticut; (B) in which no other
 person or business organization holds an equity interest; and (C) in
 which each tribe holds at least a twenty-five per cent equity interest;
    (11) "Mohegan compact" means the Tribal-State Compact entered
 into by and between the state and the Mohegan Tribe of Indians of
 Connecticut on May 17, 1994, as amended from time to time;
   (12) "Mohegan memorandum of understanding" means the
 memorandum of understanding entered into by and between the state
 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as
 amended from time to time;
    (13) "Online casino gaming" means any game of chance including, but
 not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat,
 chuck-a-luck, pan game, over and under, horse race game, acey-deucy,
 beat the dealer, bouncing ball and slot machine, conducted over the
 Internet, including through an Internet web site or a mobile device.
 "Online casino gaming" does not include sports wagering;
    (14) "Prohibited sports event" means any high school sport or high
 school e-sport event, except an international sports event in which
 persons under age eighteen make up a minority of the participants;
    (15) "Retail sports wagering" means in-person sports wagering at a
 casino gaming facility authorized under section 12-578f of the general
 statutes, as amended by this act, or an entertainment zone facility
 authorized under section 5 of this act;
   (16) "Skin" means the branded or cobranded name and logo on the
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 interface of an Internet web site or a mobile application that bettors use
 to access an electronic wagering platform for online sports wagering or
 online casino gaming;
    (17) "Sporting event" or "sports event" means any (A) sporting or
 athletic event at which two or more persons participate and receive
 compensation in excess of actual expenses for such participation in such
 sporting or athletic event, (B) sporting or athletic event sponsored by an
 intercollegiate athletic program of an institution of higher education, or
 (C) e-sports. "Sporting event" does not include horse racing or any
 sporting or athletic event sponsored by a minor league;
    (18) "Sports wagering" means risking or accepting any money, credit,
 deposit or other thing of value for gain contingent in whole or in part
 (A) by any system or method of wagering, including, but not limited to,
 in person or over the Internet through an Internet web site or a mobile
 device, and (B) based on (i) a sporting event or a portion or portions of
 a sporting event including future or propositional events during such
 an event, or (ii) the individual performance statistics of an athlete or
 athletes in a sporting event or a combination of sporting events. "Sports
 wagering" does not include the payment of an entry fee to play fantasy
 contests, as defined in section 12-578aa of the general statutes, or an
 entry fee to participate in e-sports; and
    (19) "Tribally owned company" means MMCT Venture, LLC, or any
 other limited liability company formed under the laws of the state of
 Connecticut (A) jointly and exclusively owned by the Mashantucket
 Pequot Tribe and the Mohegan Tribe of Indians of Connecticut, (B) in
 which no other person or business organization holds an equity interest,
 and (C) in which each tribe holds at least a twenty-five per cent equity
 interest.
    Sec. 2. (NEW) (Effective July 1, 2020) (a) Not later than October 1, 2020,
 the Governor shall enter into amendments to the Mashantucket Pequot
 procedures and to the Mashantucket Pequot memorandum of
 understanding with the Mashantucket Pequot Tribe and amendments
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 to the Mohegan compact and to the Mohegan memorandum of
 understanding with the Mohegan Tribe of Indians of Connecticut, or
 new compacts with the Mashantucket Pequot Tribe, Mohegan Tribe of
 Indians of Connecticut, or both, that conform to the provisions of
 sections 1 to 12, inclusive, of this act concerning:
    (1) The operation of retail sports wagering on Indian lands pursuant
 to the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25 USC 2701
 et seq., provided (A) such amendment or new compact shall provide
 that any individual making a sports wager is at least twenty-one years
 of age or older, and (B) the authorization to operate sports wagering
 shall not become effective until each new compact with the
 Mashantucket Pequot Tribe or Mohegan Tribe of Indians of Connecticut
 or each amendment to the Mashantucket Pequot procedures, the
 Mashantucket Pequot memorandum of understanding, the Mohegan
 compact and the Mohegan memorandum of understanding, for retail
 sports wagering on Indian lands, has become effective;
    (2) The operation of retail sports wagering at a casino gaming facility
 authorized under section 12-578f of the general statutes, as amended by
 this act;
    (3) The operation of one online skin for sports wagering conducted
 over the Internet through an Internet web site or mobile application
 within the state by each federally recognized Native American Tribe
 operating Class III gaming on its Indian lands in the state pursuant to a
 tribal-state gaming compact or procedures approved under the Indian
 Gaming Regulatory Act of 1988, P.L. 100-497, 25 USC 2710 et seq.,
 provided the Internet web site and mobile application used by each tribe
 clearly identifies, at all times, the skin on the display screen;
    (4) The operation of one online skin for online casino gaming
 conducted over the Internet through an Internet web site or mobile
 application within the state by each federally recognized Native
 American Tribe operating Class III gaming on its Indian lands in the
 state pursuant to a tribal-state gaming compact or procedures approved
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 under the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25 USC
 2710 et seq., provided the Internet web site and mobile application used
 by each tribe clearly identifies, at all times, the skin on the display
 screen;
    (5) The operation of retail sports wagering at entertainment zone
 facilities by a tribally owned company pursuant to section 5 of this act;
 and
    (6) The operation of a program by the Connecticut Lottery
 Corporation to sell lottery tickets for lottery draw games through the
 corporation's Internet web site, online service or mobile application,
 provided the total number of drawings across all such games in a given
 day shall not exceed six drawings.
    (b) (1) Any amendments to the Mashantucket Pequot procedures and
 the Mohegan compact pursuant to subsection (a) of this section shall
 include a provision that such amendments do not terminate the
 moratorium against the operation of video facsimile games by the
 Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of
 Connecticut on each tribe's reservation.
    (2) Any amendments to each tribe's memorandum of understanding
 pursuant to subsection (a) of this section shall include a provision that
 such amendments do not relieve each tribe from each tribe's obligation
 to contribute a percentage of the gross operating revenues of video
 facsimile games to the state as provided in each tribe's memorandum of
 understanding.
    (c) (1) Notwithstanding the provisions of section 3-6c of the general
 statutes and unless federal law or a gaming agreement or procedure
 entered into pursuant to the Indian Gaming Regulatory Act, P.L. 100-
 497, 25 USC 2701 et seq. requires otherwise, the Governor shall enter
 into the amendments or compacts pursuant to subsection (a) of this
 section, and such amendment or compact shall be effective, provided
 each tribe agrees to make contributions to the state from gaming
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 revenue for online sports wagering and online casino gaming on Indian
 lands that are equivalent to the rates established in section 8 of this act.
    (2) If federal law requires approval by the Secretary of the United
 States Department of Interior for any amendment or compact entered
 into pursuant to subsection (a) of this section, and such approval is
 overturned by a court in a final judgment, which is not appealable, the
 authorization provided for in such amendment or compact shall cease
 to be effective.
     Sec. 3. (NEW) (Effective July 1, 2020) Each federally recognized Native
 American Tribe that operates Class III gaming on its Indian lands in the
 state pursuant to a tribal-state gaming compact or procedures approved
 under the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25 USC
 2710 et seq., may operate one online skin for sports wagering within the
 state through an Internet web site or mobile application, provided (1)
 each compact or amendment to the Mashantucket Pequot procedures,
 the Mashantucket Pequot memorandum of understanding, the
 Mohegan compact and the Mohegan memorandum of understanding
 required under subdivision (3) of subsection (a) of section 2 of this act is
 effective; and (2) the Internet web site and mobile application used by
 each tribe clearly identifies, at all times, the skin on the display screen.
 Unless prohibited by federal law or any gaming agreement or procedure
 entered into pursuant to the Indian Gaming Regulatory Act, P.L. 100-
 497, 25 USC 2701 et seq., any online sports wager received by a casino
 on Indian lands and authorized pursuant to this section is considered to
 be a wager placed where the server receiving the wager is located,
 regardless of the authorized participant's location at the time the wager
 is initiated or otherwise placed.
    Sec. 4. (NEW) (Effective July 1, 2020) Each federally recognized Native
 American Tribe that operates Class III gaming on its Indian lands in the
 state pursuant to a tribal-state gaming compact or procedures approved
 under the Indian Gaming Regulatory Act of 1988, P.L. 100-497, 25 USC
 2710 et seq., may operate one online skin for online casino gaming
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 within the state through an Internet web site or mobile application,
 provided (1) each compact or amendment to the Mashantucket Pequot
 procedures, the Mashantucket Pequot memorandum of understanding,
 the Mohegan compact and the Mohegan memorandum of
 understanding required under subdivision (4) of subsection (a) of
 section 2 of this act is effective; and (2) the Internet web site and mobile
 application used by each tribe clearly identifies, at all times, the skin on
 the display screen. Unless prohibited by federal law or any gaming
 agreement or procedure entered into pursuant to the Indian Gaming
 Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., any online casino
 gaming wager received by a casino on Indian lands and authorized
 pursuant to this section is considered to be a wager placed where the
 server receiving the wager is located, regardless of the authorized
 participant's location at the time the wager is initiated or otherwise
 placed.
   Sec. 5. (NEW) (Effective July 1, 2020) (a) A tribally owned company is
 authorized to operate a casino gaming facility in the city of Bridgeport,
 provided such company invests a minimum of one hundred million
 dollars to develop such facility.
    (b) A tribally owned company is authorized to operate an
 entertainment zone facility (1) at the facility described in subsection (a)
 of this section, (2) at a facility in the city of Hartford, (3) at a facility in
 the city of New Haven, and (4) at a facility in one additional
 municipality in the state chosen by the tribally owned company.
    (c) (1) Authorization to operate a facility under subsection (a) or (b)
 of this section shall not be effective unless:
    (A) The governing bodies of the Mashantucket Pequot Tribe and
 Mohegan Tribe of Indians of Connecticut have enacted resolutions
 providing: (i) That, if the tribally owned company fails to pay any fees
 or taxes due the state, the tribes, as the members of the tribally owned
 company, waive the possible defense of sovereign immunity with
 respect to any action or claim by the state against the tribes as the
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 members of the tribally owned company to the extent such action or
 claim is permitted to be brought against a member of a limited liability
 company under state law to collect any fees or taxes, while pres