LB560 LB560
2021 2021
LEGISLATURE OF NEBRASKA
ONE HUNDRED SEVENTH LEGISLATURE
FIRST SESSION
LEGISLATIVE BILL 560
Introduced by Briese, 41.
Read first time January 19, 2021
Committee: General Affairs
1 A BILL FOR AN ACT relating to gaming; to amend sections 1, 3, 5, and 6,
2 Initiative Law 2020, No. 430, and sections 2, 3, 5, and 7,
3 Initiative Law 2020, No. 431; to change the name of the Nebraska
4 Gaming Commission and the State Racing Commission; to define and
5 redefine terms; to change provisions of the Nebraska Racetrack
6 Gaming Act; to provide requirements for licensure; to provide powers
7 and duties for the commission; to establish requirements for sports
8 wagering; to prohibit certain activities; to provide penalties; to
9 harmonize provisions; to repeal the original sections; and to
10 declare an emergency.
11 Be it enacted by the people of the State of Nebraska,
-1-
LB560 LB560
2021 2021
1 Section 1. Section 1, Initiative Law 2020, No. 430, is amended to
2 read:
3 Section 1. Sections 1 to 6 of this act and sections 5 to 14 of this
4 act shall be known and may be cited as the Nebraska Racetrack Gaming Act.
5 Sec. 2. Section 3, Initiative Law 2020, No. 430, is amended to read:
6 Sec. 3. For purposes of the Nebraska Racetrack Gaming Act:
7 (1) Authorized gaming operator means a person or entity licensed
8 pursuant to the act to operate games of chance within a licensed
9 racetrack enclosure;
10 (2) Authorized gaming operator license means a license to operate
11 games of chance as an authorized gaming operator at a licensed racetrack
12 enclosure;
13 (3) Collegiate sporting event means an athletic event or competition
14 of an intercollegiate sport played at the collegiate level for which
15 eligibility requirements for participation by a student athlete are
16 established by a national association for the promotion or regulation of
17 collegiate athletics;
18 (4) Commission means the Nebraska Racing and Gaming Commission;
19 (5) Designated sports wagering area means an area, as approved by
20 the commission, in which sports wagering is conducted;
21 (6) (3) Game of chance means any game which has the elements of
22 chance, prize, and consideration, including any wager on a slot machine,
23 table game, counter game, or card game or sports wagering. Game of chance
24 does not include any game the operation of which is prohibited at a
25 casino by federal law;
26 (7) (4) Gaming device means an electronic, mechanical, or other
27 device which plays a game of chance when activated by a player using
28 currency, a token, or other item of value;
29 (8) International sporting event means an international team or
30 individual sporting event governed by an international sports federation
31 or sports governing body, including sporting events governed by the
-2-
LB560 LB560
2021 2021
1 International Olympic Committee and the International Federation of
2 Association Football;
3 (9) (5) Licensed racetrack enclosure means premises at which
4 licensed live horseracing is conducted in accordance with the
5 Constitution of Nebraska and applicable Nebraska law;
6 (10) (6) Limited gaming device means an electronic gaming device
7 which (a) offers games of chance, (b) does not dispense currency, tokens,
8 or other items of value, and (c) does not have a cash winnings hopper,
9 mechanical or simulated spinning reel, or side handle; and
10 (11) (7) Racing license means a license issued to a licensed
11 racetrack enclosure by the commission; and State Racing Commission.
12 (12) Sports wagering means the acceptance of wagers on an authorized
13 sporting event by any system of wagering as authorized by the commission.
14 Sports wagering does not include (a) placing a wager on the performance
15 or nonperformance of any individual athlete participating in a single
16 game or match of a collegiate sporting event in which a collegiate team
17 from this state is a participant or (b) placing a wager on the
18 performance of athletes in an individual international sporting event in
19 which any participant in the international sporting event is under
20 eighteen years of age.
21 Sec. 3. Section 5, Initiative Law 2020, No. 430, is amended to read:
22 Sec. 5. (1) For purposes of providing the necessary licensing and
23 regulation of the operation of games of chance by authorized gaming
24 operators within licensed racetrack enclosures pursuant to the Nebraska
25 Racetrack Gaming Act, the Nebraska Racetrack Gaming Act shall be governed
26 by the commission. The commission shall have full jurisdiction over and
27 shall supervise all gaming operations pursuant to the Nebraska Racetrack
28 Gaming Act Gaming Commission is created.
29 (2) The commission shall consist of seven members. Not more than
30 four of the seven members shall be affiliated with the same political
31 party. No member shall have any personal financial interest in any
-3-
LB560 LB560
2021 2021
1 licensed racetrack enclosure or authorized gaming operator for the
2 duration of his or her term. The members of the commission shall elect
3 one of the members to be chairperson.
4 (3) The five members of the State Racing Commission shall be ex
5 officio members of the Nebraska Gaming Commission, serving terms and
6 receiving appointment in the same manner as provided in sections 2-1201
7 and 2-1202.
8 (4) The Governor shall appoint two additional members to serve with
9 the members of the State Racing Commission as members of the Nebraska
10 Gaming Commission. The members appointed pursuant to this subsection
11 shall serve five-year terms. One of such members shall have experience in
12 the Nebraska gaming industry, and one shall be a member of the
13 organization representing the majority of licensed owners and trainers of
14 horses at racetracks in Nebraska.
15 (5) The compensation of the members of the Nebraska Gaming
16 Commission shall be one thousand dollars per month, which may be adjusted
17 every two years in an amount not to exceed the change in the Consumer
18 Price Index for Urban Wage Earners and Clerical Workers for the period
19 between June 30 of the first year to June 30 of the year of adjustment.
20 Sec. 4. Section 6, Initiative Law 2020, No. 430, is amended to read:
21 Sec. 6. The commission Nebraska Gaming Commission shall:
22 (1) License and regulate authorized gaming operators for the
23 operation of all games of chance authorized pursuant to the Nebraska
24 Racetrack Gaming Act, including adopting, promulgating, and enforcing
25 rules and regulations governing such authorized gaming operators
26 consistent with the act;
27 (2) Regulate the operation of games of chance in order to prevent
28 and eliminate corrupt practices and fraudulent behavior, and thereby
29 promote integrity, security, and honest administration in, and accurate
30 accounting of, the operation of games of chance which are subject to the
31 act;
-4-
LB560 LB560
2021 2021
1 (3) Establish criteria to license applicants for authorized gaming
2 operator licenses and all other types of gaming licenses for other
3 positions and functions incident to the operation of games of chance,
4 including adopting, promulgating, and enforcing rules, regulations, and
5 eligibility standards for such authorized gaming operator licenses,
6 gaming licenses, and positions and functions incident to the operation of
7 games of chance;
8 (4) Charge fees for applications for licenses and for the issuance
9 of authorized gaming operator licenses and all other types of gaming
10 licenses to successful applicants which shall be payable to the
11 commission Nebraska Gaming Commission;
12 (5) Charge fees to authorized gaming operators in an amount
13 necessary to offset the cost of oversight and regulatory services to be
14 provided which shall be payable to the commission Nebraska Gaming
15 Commission;
16 (6) Impose a one-time authorized gaming operator license fee of one
17 million dollars on each authorized gaming operator for each licensed
18 racetrack enclosure payable to the commission Nebraska Gaming Commission;
19 (7) Grant, deny, revoke, and suspend authorized gaming operator
20 licenses and all other types of gaming licenses based upon reasonable
21 criteria and procedures established by the commission to facilitate the
22 integrity, productivity, and lawful conduct of gaming within the state;
23 (8) Grant or deny for cause applications for authorized gaming
24 operator licenses of not less than twenty years in duration with no more
25 than one such authorized gaming operator license granted for any licensed
26 racetrack enclosure within the state;
27 (9) Conduct background investigations of applicants for authorized
28 gaming operator licenses and all other types of gaming licenses;
29 (10) Adopt and promulgate rules and regulations for the standards of
30 manufacture of gaming equipment;
31 (11) Inspect the operation of any authorized gaming operator
-5-
LB560 LB560
2021 2021
1 conducting games of chance for the purpose of certifying the revenue
2 thereof and receiving complaints from the public;
3 (12) Issue subpoenas for the attendance of witnesses or the
4 production of any records, books, memoranda, documents, or other papers
5 or things at or prior to any hearing as is necessary to enable the
6 commission to effectively discharge its duties;
7 (13) Administer oaths or affirmations as necessary to carry out the
8 act;
9 (14) Have the authority to impose, subject to judicial review,
10 administrative fines not to exceed twenty-five thousand dollars for each
11 violation of the act or any rules and regulations adopted and promulgated
12 pursuant to the act;
13 (15) Collect and remit administrative fines collected under this
14 section to the State Treasurer for distribution in accordance with
15 Article VII, section 5, of the Constitution of Nebraska;
16 (16) Adopt and promulgate rules and regulations for any gaming taxes
17 assessed to authorized gaming operators;
18 (17) Collect and account for any gaming taxes assessed to authorized
19 gaming operators and remit such taxes to the State Treasurer or county
20 treasurer as required by Nebraska law;
21 (18) Promote treatment of gaming-related behavioral disorders;
22 (19) Establish procedures for the governance of the commission;
23 (20) Acquire necessary offices, facilities, counsel, and staff;
24 (21) Establish procedures for an applicant for a staff position to
25 disclose conflicts of interest as part of the application for employment;
26 and
27 (22) Establish a process to allow a person to be voluntarily
28 excluded from wagering in any game of chance under the act;
29 (23) Have the authority to issue directives without having to comply
30 with the Administrative Procedure Act relating to the adoption and
31 promulgation of rules and regulations; and
-6-
LB560 LB560
2021 2021
1 (24) (22) Do all things necessary and proper to carry out its powers
2 and duties under the Nebraska Racetrack Gaming Act act, including the
3 adoption and promulgation of rules and regulations and such other actions
4 as permitted by the Administrative Procedure Act.
5 Sec. 5. Any person applying for a gaming operator license pursuant
6 to the Nebraska Racetrack Gaming Act shall be subject to fingerprinting
7 and a check of such person's criminal history record information
8 maintained by the Identification Division of the Federal Bureau of
9 Investigation for the purpose of determining whether the commission has a
10 basis to deny the license application or to suspend, cancel, or revoke
11 the person's license. The applicant shall pay the actual cost of any
12 fingerprinting or check of such person's criminal history record
13 information.
14 Sec. 6. Credit cards shall not be accepted by any authorized gaming
15 operator for payment for any wager or to purchase coins, tokens, or other
16 forms of credit to be wagered on any game of chance. An account for the
17 purpose of participating in a game of chance under the Nebraska Racetrack
18 Gaming Act may only be funded with cash, coins, a debit card, or a direct
19 link to an account with a financial institution in the name of the
20 player.
21 Sec. 7. (1) The commission may permit an authorized gaming operator
22 to conduct sports wagering. Any sports wager shall be placed in person in
23 the defined designated sports wagering area at the licensed racetrack
24 enclosure.
25 (2) A floor plan identifying the designated sports wagering area,
26 including the location of any wagering kiosks, shall be filed with the
27 commission for review and approval. Modification to a previously approved
28 plan must be submitted for approval at least ten days prior to
29 implementation. The area shall not be accessible to persons under twenty-
30 one years of age and shall have a sign posted to restrict access.
31 Exceptions to this subsection must be approved in writing by the
-7-
LB560 LB560
2021 2021
1 commission.
2 (3) The authorized gaming operator shall submit controls, approved
3 by the commission, that include the following for operating the
4 designated sports wagering area:
5 (a) Specific procedures and technology partners to fulfill the
6 requirements set forth by the commission;
7 (b) Location detection procedures to reasonably detect and
8 dynamically monitor the location of a player attempting to place any
9 wager. A player outside the permitted boundary shall be rejected, and the
10 player shall be notified. The confidence radius shall be entirely located
11 within the permitted boundary of the licensed racetrack enclosure;
12 (c) Other specific controls as designated by the commission;
13 (d) A process to easily and prominently impose limitations or
14 notification for wagering parameters, including, but not limited to,
15 deposits and wagers; and
16 (e) An easy and obvious method for a player to make a complaint and
17 to enable the player to notify the commission if such complaint has not
18 been or cannot be addressed by the sports wagering operator.
19 Sec. 8. (1) Any person who knowingly cheats at any game of chance
20 is guilty of a Class I misdemeanor.
21 (2) Any person who manipulates, with the intent to cheat, any
22 component of a gaming device in a manner contrary to the designed and
23 normal operational purpose of the component, including varying the pull
24 of the handle of a gaming machine with knowledge that the manipulation
25 affects the outcome of the game