This bill allows business entities to place wagers with horse racing and sports pool operators, establishing a framework similar to mutual funds where pooled funds are used to wager on sporting events. To participate, business entities must create a wagering account and provide documentation that verifies the age and identity of all individuals associated with the entity, including equity owners and designated individuals. Additionally, they must maintain records of all wagers and have a bank account in the state for financial transactions related to wagering. The bill emphasizes compliance with state and federal laws and mandates that any changes in the provided information be reported within five business days.

The legislation also outlines strict prohibitions against undisclosed financial transactions related to wagering. It is illegal for individuals to distribute profits or compensation to undisclosed parties, wager on behalf of undisclosed individuals, or submit false information. Violations of these provisions are classified as a second-degree crime, carrying penalties of up to ten years in prison and fines of up to $50,000. The bill is set to take effect 180 days after enactment, although regulatory bodies may begin preparations beforehand to ensure smooth implementation.