Bill Summary – FastDemocracy

130th MAINE LEGISLATURE
                    FIRST SPECIAL SESSION-2021
Legislative Document                                                               No. 1405
S.P. 454                                                           In Senate, April 12, 2021
           An Act To Regulate, Tax and Control Sports Wagering
   Received by the Secretary of the Senate on April 8, 2021. Referred to the Committee on
Veterans and Legal Affairs pursuant to Joint Rule 308.2 and ordered printed.
                                                                      DAREK M. GRANT
                                                                     Secretary of the Senate
Presented by President JACKSON of Aroostook.
Cosponsored by Representative McCREIGHT of Harpswell and
Senators: CHIPMAN of Cumberland, CYRWAY of Kennebec, Representatives: DOORE of
Augusta, LANDRY of Farmington, PARRY of Arundel.
                                       Printed on recycled paper
 Be it enacted by the People of the State of Maine as follows:
                                           PART A
     Sec. A-1. 7 MRSA §86, sub-§8, as enacted by PL 2005, c. 563, §3, is amended to
 read:
      8. Maximum allowed distribution from Stipend Fund. A licensee may not receive
 a stipend from the Stipend Fund greater than the amount actually raised and spent by the
 licensee on premiums and gratuities in the classes provided in subsection 5. A licensee
 may not receive a stipend from the Stipend Fund in excess of $10,000, except that this
 limitation does not apply to any additional stipend provided for by Title 8, section 287 or
 to funds distributed from the Fair Fund or in accordance with section 85, the Agricultural
 Fair Support Fund in accordance with section 91 or the Agricultural Fair Promotion Fund
 in accordance with section 103.
     Sec. A-2. 7 MRSA §103 is enacted to read:
 §103. Agricultural Fair Promotion Fund
     1. Eligible nonprofit organization defined. As used in this section, "eligible nonprofit
 organization" means a nonprofit organization that is exempt from federal income taxation
 under Section 501(a) of the United States Internal Revenue Code of 1986 as an organization
 described by Section 501(c) and that has had, for at least the preceding 25 years, a sole or
 primary purpose of promoting agricultural fairs in the State.
     2. Identification of eligible nonprofit organizations. On January 1st and July 1st of
 each year, the commissioner shall send a list of all eligible nonprofit organizations to the
 Treasurer of State.
     3. Fund created. The Treasurer of State shall establish an account to be known as "the
 Agricultural Fair Promotion Fund" and shall credit to it all money received under Title 8,
 section 1215, subsection 1, paragraph E and Title 8, section 1215, subsection 2, paragraph
 E. The fund is a dedicated, nonlapsing fund. All revenues deposited in the fund must be
 disbursed in accordance with this section.
      4. Distribution. On January 31st and July 31st of each year, all amounts credited to
 the fund established by this section as of the last day of the preceding month and not
 distributed before that day must be distributed by the Treasurer of State in equal shares to
 each organization in the State that has been identified by the commissioner as an eligible
 nonprofit organization under subsection 2.
     Sec. A-3. 8 MRSA §290, as enacted by PL 1997, c. 528, §46, is amended to read:
 §290. Purse supplement
     1. Payment. Amounts received pursuant to section 1215, subsection 1, paragraph C
 and section 1215, subsection 2, paragraph C and amounts calculated as purse supplement
 share under section 286 must be paid to the commission for distribution as provided in
 subsection 2.
      2. Distribution. On May 30th, September 30th and January 30th, payments made
 amounts received under this subsection and subsection 1 for distribution in accordance with
 this subsection must be divided among the licensees conducting live racing in the State.
 The amount of the payment made to a licensee is calculated by dividing multiplying the
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 amount of money available for distribution by a fraction, the numerator of which is the
44
 number of race dates on which that licensee conducted live racing in any calendar year by
45
 and the denominator of which is the total number of race dates on which all licensees
46
 conducted live racing in that year. Beginning January 30, 1997, the January 30th payment
47
 must be adjusted to reflect the dates when live racing was actually conducted during the
48
 previous year, not the dates granted.
     Sec. A-4. 8 MRSA §1003, sub-§5, as repealed and replaced by PL 2017, c. 475,
 Pt. A, §11, is amended to read:
     5. Additional duties of the director. The director also serves as the director of the
 Gambling Control Unit, established as a bureau within the Department of Public Safety
 under Title 25, section 2902, subsection 12. As director of the unit, the director shall
 administer and enforce the laws governing fantasy contests under chapter 33, sports
 wagering under chapter 35 and beano and games of chance under Title 17, chapters 13-A
 and 62, respectively.
     Sec. A-5. 8 MRSA §1104, sub-§2, as enacted by PL 2017, c. 303, §2, is amended
 to read:
     2. Certain leagues and contests prohibited. A fantasy contest operator may not offer
 a fantasy contest based on the performances of participants in collegiate or high school
 athletic events or other athletic events involving participants under 18 years of age.
     Sec. A-6. 8 MRSA c. 35 is enacted to read:
                                       CHAPTER 35
                       REGULATION OF SPORTS WAGERING
 §1201. Authorization of sports wagering; license required
     Notwithstanding any provision of law to the contrary, the operation of sports wagering
 and ancillary activities are lawful when conducted in accordance with the provisions of this
 chapter and the rules adopted under this chapter.
    A person or entity may not engage in any activities in this State that require a license
 under this chapter unless all necessary licenses have been obtained in accordance with this
 chapter and rules adopted under this chapter.
 §1202. Definitions
    As used in this chapter, unless the context otherwise indicates, the following terms
 have the following meanings.
     1. Adjusted gross sports wagering receipts. "Adjusted gross sports wagering
 receipts" means an operator's gross receipts from sports wagering less the total of all
 winnings paid to patrons, which includes the cash equivalent of any merchandise or thing
 of value awarded as a prize, and less excise tax payments remitted to the Federal
 Government.
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     2. Collegiate sports or athletic event. "Collegiate sports or athletic event" means a
 sports or athletic event offered or sponsored by, or played in connection with, a public or
 private institution that offers postsecondary educational services.
     3. Commissioner. "Commissioner" means the Commissioner of Public Safety.
     4. Department. "Department" means the Department of Public Safety.
    5. Director. "Director" means the director of the Gambling Control Unit within the
 department.
    6. Facility operator. "Facility operator" means a facility sports wagering licensee
 under subsection 7, paragraph A.
      7. License. "License" means any license applied for or issued by the director under
 this chapter, including, but not limited to:
     A. A facility sports wagering license under section 1206 to conduct sports wagering
     in which wagers are placed within a physical location in this State;
     B. A mobile sports wagering license under section 1207 to permit a mobile operator
     to operate sports wagering through an approved mobile application or other digital
     platform that involves, at least in part, the use of the Internet;
     C. A supplier license under section 1208 to sell goods and services to be used in
     connection with sports wagering, but not to directly accept wagers;
     D. A management services license under section 1209 to manage sports wagering on
     behalf of a facility sports wagering licensee or a mobile sports wagering licensee; and
     E. An occupational license under section 1210 to be employed by a facility sports
     wagering licensee to operate sports wagering when the employee performs duties in
     furtherance of or associated with the operation of sports wagering.
    8. Mobile operator. "Mobile operator" means a mobile sports wagering licensee
 under subsection 7, paragraph B.
     9. Operator. "Operator" includes a facility operator and a mobile operator.
     10. Professional sports or athletic event. "Professional sports or athletic event"
 means an event at which 2 or more persons participate in sports or athletic contests and
 receive compensation in excess of actual expenses for their participation in the event.
     11. Prohibited sports event. "Prohibited sports event" means a high school sports or
 athletic event, any other event in which a majority of the participants are under 18 years of
 age or a collegiate sports or athletic event in which any Maine collegiate sports team
 participates, regardless of where the event takes place.
     12. Sports event. "Sports event" means any professional sports or athletic event,
 collegiate sports or athletic event or amateur sports or athletic event, including but not
 limited to an Olympic or international sports or athletic event, a motor vehicle race or an
 electronic sports event, commonly referred to as "e-sports."
      13. Sports wagering. "Sports wagering" means the business of accepting wagers on
 sports events or portions of sports events, the individual performance statistics of athletes
 in a sports event or a combination of any of the same by any system or method of wagering
 approved by the director, including, but not limited to, in person on the property of a facility
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 operator or via a mobile operator's mobile applications and digital platforms that use
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 communications technology to accept wagers. "Sports wagering" does not include the sale
44
 of pari-mutuel pools authorized under chapter 11 or the operation of fantasy contests as
45
 defined in section 1101, subsection 4.
    14. Wager. "Wager" means a sum of money or thing of value risked on an uncertain
 occurrence.
 §1203. Powers and duties of director
    1. Powers and duties. In administering and enforcing this chapter, the director:
    A. Has the power to regulate the conduct of sports wagering;
    B. Shall determine the eligibility of a person to hold or continue to hold a license, shall
    issue all licenses and shall maintain a record of all licenses issued under this chapter;
    C. Shall levy and collect all fees, civil penalties and tax on adjusted gross sports
    wagering receipts imposed by this chapter, except as otherwise provided under this
    chapter;
    D. May sue to enforce any provision of this chapter or any rule of the director by civil
    action or petition for injunctive relief;
    E. May hold hearings, administer oaths and issue subpoenas or subpoenas duces tecum
    in the manner provided by applicable law; and
    F. May exercise any other powers necessary to effectuate the provisions of this chapter
    and the rules of the director.
     2. Rules. The director shall adopt rules governing the conduct of sports wagering in
 the State, which must, at a minimum, include the following:
    A. Additional qualifications and procedures for obtaining a facility sports wagering
    license, supplier license, management services license, mobile sports wagering license
    or occupational license, including the procedure and qualifications for obtaining a
    waiver of the occupational license requirement, consistent with the purposes and
    provisions of this chapter;
    B. Additional qualifications and procedures for obtaining a temporary facility sports
    wagering license, temporary supplier license, temporary management services license
    and temporary mobile sports wagering license, consistent with the purposes and
    provisions of this chapter;
    C. The methods of operation of sports wagering, including but not limited to the
    permitted systems and methods of wagers; the use of credit and checks by persons
    making wagers; the types of wagering receipts that may be used; the method of issuing
    receipts; the prevention of sports wagering on prohibited sports events; the protection
    of patrons placing wagers; and the promotion of social responsibility and responsible
    gaming and display of information on resources for problem gambling at a facility
    operator's premises or on any mobile application or digital platform used to place
    wagers;
    D. If the director determines that establishment of a maximum wager is necessary for
    the protection of public safety, the maximum wager that may be accepted from any one
    person on a single sports event;
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    E. Standards for the adoption of comprehensive house rules governing sports wagering
    by operators and the approval of house rules by the director as required under section
    1211;
    F. Minimum design and security requirements for the physical premises of facility
    operators in which sports wagering is conducted, including but not limited to minimum
    requirements for the acceptance of wagers at a self-serve kiosk located on the premises
    and minimum required methods for verifying the identity and age of a person who
    places a wager with a facility operator, for verifying that the person making a wager is
    not prohibited from making a wager under section 1213 and for requiring the refund of
    any wager determined to have been placed by a person prohibited from making a wager
    under section 1213;
    G. Minimum design and security requirements for mobile applications and digital
    platforms for the acceptance of wagers by mobile operators, including required
    methods for verifying the age and identity of a person who places a wager with a mobile
    operator, for verifying that the person making the wager is physically located in the
    State and is not prohibited from making a wager under section 1213 and for requiring
    the refund of any wager determined to have been placed by a person prohibited from
    making a wager under section 1213;
    H. The types of interested parties, including sports team or league employees or
    owners, from whom operators are prohibited from accepting wagers under section
    1213, subsection 4;
    I. Minimum design, security, testing and approval requirements for sports wagering
    equipment, systems or services sold by suppliers licensed under section 1208;
    J. Minimum requirements for a contract between a management services licensee
    under section 1209 and an operator on whose behalf the management services licensee
    conducts sports wagering, including but not limited to requirements that the person
    providing management services is licensed prior to entering a contract and that the
    contract be approved by the director prior to the conduct of sports wagering;
    K. Establishment of a list of persons who are not authorized to place a wager on a
    sports event, including but not limited to those persons who voluntarily request that
    their names be included on the list of unauthorized persons. The rules adopted under
    this paragraph must define the standards for involuntary placement on the list and for
    removal from the list; and
    L. Minimum internal control standards for operators, including but not limited to
    procedures for safeguarding assets and revenues; the recording of cash and evidence
    of indebtedness; the maintenance of reliable records, accounts and reports of
    transactions, operations and events; the authority of operators to retain any winnings
    that are not claimed within one year of the date that a sports wager was made; required
    audits; and the content and frequency of reports of sports wagering activities and
    revenues that must be made to the director.
     3. Rulemaking. Rules adopted by the director pursuant to this chapter are routine
 technical rules as defined in Title 5, chapter 375, subchapter 2-A.
 §1204. Application; criminal history background check
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     1. Application. An application for a license or for renewal of a license required under
 this chapter must be submitted on a form or in a format approved by the director. An
 application submitted to the director must, at a minimum, include the following:
     A. The full name, current address and contact information of the applicant;
     B. Disclosure of each person that has control of the applicant as described in subsection
     2;
     C. Consent to permit the director to conduct a criminal history record check in
     accordance with subsection 3 of the applicant and each person disclosed under
     paragraph B in accordance with procedures established by the director;
     D. For the applicant and each person disclosed under paragraph B, a record of previous
     issuances and denials of or any adverse action taken against a gambling-related license
     or application under this Title or in any other juri