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1 S.105
2 Introduced by Senators Sears, Westman, Campion and Ram Hinsdale
3 Referred to Committee on
4 Date:
5 Subject: Recreation and sports; sports wagering
6 Statement of purpose of bill as introduced: This bill proposes to:
7 (1) authorize the Department of Liquor and Lottery to operate sports
8 wagering through contracts with sports wagering operators;
9 (2) establish minimum standards for the regulation of sports wagering
10 and grant the Department regulatory authority over sports wagering;
11 (3) establish a competitive bidding process for the selection of the
12 State’s operators;
13 (4) authorize the Department to establish a revenue sharing agreement
14 with operators; and
15 (5) establish responsible gaming standards and the Responsible Gaming
16 Special Fund, which shall be used by the Department of Mental Health for
17 services related to problem gambling.
18 An act relating to sports wagering VT LEG #366753 v.1
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1 It is hereby enacted by the General Assembly of the State of Vermont:
2 Sec. 1. 31 V.S.A. chapter 25 is added to read:
3 CHAPTER 25. SPORTS WAGERING
4 § 1301. DEFINITIONS
5 As used in this chapter:
6 (1) “Board” means the Board of Liquor and Lottery.
7 (2) “Category of wager” means the kind of event being wagered on.
8 (3) “Collegiate sports event” means a sports or athletic event
9 participated in or offered or sponsored by a public or private institution that
10 offers educational services beyond the secondary level.
11 (4) “Commissioner” means the Commissioner of Liquor and Lottery or
12 designee.
13 (5) “Department” means the Department of Liquor and Lottery.
14 (6) “Gross sports wagering revenue” means gross sports wagering
15 receipts, excluding voided bets, less winnings paid to authorized participants
16 and any federal excise tax.
17 (7) “High school sports event” means a sports or athletic event
18 participated in or offered or sponsored by a public or private institution that
19 offers educational services at the secondary level.
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1 (8) “Mobile sports wagering platform” means the combination of
2 hardware, software, and data networks used to manage, administer, record, or
3 control sports wagers through mobile devices or the Internet.
4 (9) “Operator” means a party who is authorized by contract or
5 agreement with the Department to conduct a sportsbook.
6 (10) “Prohibited sports bettor” means:
7 (A) any member or employee of the Department and any spouse,
8 child, sibling, or parent residing in the same household as a member or
9 employee of the Department;
10 (B) any principal or employee of any operator;
11 (C) any contractor of the Department or its operators when the
12 contract relates to the conduct of sports wagering;
13 (D) any contractor or employee of an entity that conducts sports
14 wagering in another jurisdiction when the bettor, as a result of the bettor’s
15 contract or employment, possesses confidential or nonpublic information
16 relating to the wager being placed;
17 (E) any amateur or professional athlete if the sports wager is based in
18 whole or part on a sport or athletic event overseen by the athlete’s governing
19 sports body;
20 (F) any sports agent, owner, or employee of a team; player; umpire;
21 referee; coach; union official; or official of a sport’s governing body if the VT LEG #366753 v.1
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1 sports wager is based in whole or in part on a sport or athletic event overseen
2 by the governing body that oversees the individual’s sport;
3 (G) any individual placing a wager as an agent of or proxy for a
4 prohibited sports bettor; or
5 (H) any person under 18 years of age.
6 (11)(A) “Prohibited sports event” means any:
7 (i) collegiate sports event in which one of the participants is a
8 collegiate team of a college institution that is primarily located in Vermont,
9 unless the collegiate sports event is subject to the provisions of subdivision (B)
10 of this subdivision (11);
11 (ii) high school or collegiate sports event that takes place in
12 Vermont; and
13 (iii) amateur or professional sports event where the participants
14 are primarily under 18 years of age.
15 (B) “Prohibited sports event” does not mean the games of a collegiate
16 sports tournament in which a Vermont college team participates, nor does it
17 include any games of a collegiate sports tournament that occur outside
18 Vermont even though some of the individual games or events are held in
19 Vermont.
20 (12) “Sports event” means an event at which two or more persons
21 participate in a sports or athletic event and receive compensation in excess of
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1 actual expenses for their participation in the event. “Sports event” shall also
2 mean horse racing and equestrian events.
3 (13) “Sports governing body” means the organization that prescribes
4 final rules and enforces codes of conduct with respect to a sports event and the
5 participants in the sports event.
6 (14) “Sports wager” means cash or cash equivalent paid by an individual
7 to participate in sports wagering.
8 (15)(A) “Sports wagering” means wagering on:
9 (i) sporting events or any portion of a sporting event; or
10 (ii) the individual performance statistics of athletes participating in
11 a sports event or a combination of sports events.
12 (B) “Sports wagering” means wagering on the matters enumerated in
13 subdivision (A) of this subdivision (16) by any system or method of wagering,
14 including in-person communication and electronic communication through
15 Internet websites accessed via a mobile device or computer and mobile device
16 applications.
17 (C) “Sports wagering” includes single game bets, teaser bets, parlays,
18 over-under bets, money line bets, pools, exchange wagering, in-game
19 wagering, in-play bets, proposition bets, and straight bets.
20 (16) “Sportsbook” means the business of accepting wagers on any sports
21 event by any system or method of wagering.
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1 § 1302. DEPARTMENT OF LIQUOR AND LOTTERY; AUTHORITY AND
2 DUTIES
3 (a) The Department is authorized to operate sports wagering within the
4 State.
5 (b) The Commissioner shall negotiate and contract to authorize a minimum
6 of two but not more than six operators to operate a sportsbook in Vermont
7 through a mobile sports wagering platform. This subsection shall not be
8 construed to require the Department to authorize unqualified applicants to
9 conduct a sportsbook. The Department may authorize a single operator to
10 conduct a sportsbook if an insufficient number of qualified applicants
11 participate in the competitive bidding process.
12 (c) The Department, either independently or through its operator, shall
13 provide:
14 (1) Age verification measures to be undertaken to block access to and
15 prevent sports wagers by persons under 18 years of age.
16 (2) Identity verification through secure online databases or by
17 examination of photo identification.
18 (3) That mobile sports wagers must be initiated and received within the
19 State of Vermont and may not be intentionally routed outside the State. The
20 incidental intermediate routing of a mobile sports wager shall not determine VT LEG #366753 v.1
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1 the location or locations in which the wager is initiated, received, or otherwise
2 made.
3 (4) Wager limits for daily, weekly, and monthly amounts consistent with
4 the best practices in addressing problem gambling.
5 (5) A voluntary self-exclusion program for players to exclude
6 themselves from wagering for a set period of time.
7 (6) Security mechanisms to ensure the confidentiality of wagering and
8 personal and financial information except as otherwise authorized by this
9 chapter.
10 (7) Measures to ensure that wagers are not placed by a prohibited sports
11 bettor.
12 (d) A sports governing body or college may request that the Department
13 restrict, limit, or exclude wagering on a sporting event or series of sporting
14 events. The Department shall review the request and seek input from the
15 Department’s operators. If the Department determines it is appropriate, then
16 the Department may grant the request or part of the request to prohibit
17 unlawful activity, protect the integrity of the event, or protect public
18 confidence in the integrity of the sports event.
19 (e) The Department shall have authority to review and approve categories
20 and types of wagers before an operator is permitted to offer the wager to the
21 public. The Department shall approve wager categories and types in a VT LEG #366753 v.1
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1 reasonable time frame. Once a particular category or wager type is approved
2 for its first use, it may be used on multiple events without further approval.
3 The Department may issue general approval for operators to conduct
4 enumerated categories and types of wagers.
5 (f) The Department shall only approve wagers on categories of events
6 where:
7 (1) the outcome can be verified;
8 (2) the outcome can be generated by a reliable and independent process;
9 and
10 (3) the event is conducted in conformity with applicable laws.
11 § 1303. PROCEDURES
12 (a)(1) The Board shall adopt procedures pursuant to 3 V.S.A. § 835 to
13 govern the establishment and operation of any sportsbook authorized by this
14 chapter. For each procedure proposed to be adopted or amended pursuant to
15 this section, the Board shall publish the proposal on the Department of Liquor
16 and Lottery’s website, provide notice of the proposal to all operators, provide
17 not less than 30 days for public comment on the proposal, and hold not fewer
18 than two public hearings at which members of the public may seek additional
19 information or submit oral or written comments on the proposal.
20 (2) The Board shall not be required to initiate rulemaking pursuant to
21 3 V.S.A. § 831(c) in relation to a procedure adopted pursuant to this section.
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1 (3) A procedure adopted pursuant to this section shall have the force of
2 law and be binding on all persons who play or offer sports wagering within the
3 State.
4 (b) The Board shall adopt procedures pursuant to this section that govern
5 the following minimum standards for the Department’s operators:
6 (1) minimum computer system security, including:
7 (A) documented system security testing performed by a licensed
8 third-party contractor approved by the Department;
9 (B) unique identification and verification systems for wagers;
10 (C) procedures to prevent past posting of wagers;
11 (D) minimum data that must be recorded relating to each wager;
12 (E) system redundancy to ensure recording of wagers during a system
13 outage; and
14 (F) integration with an independent control system to ensure integrity
15 of system wagering information;
16 (2) sports wagering system requirements that meet or exceed Gaming
17 Laboratories International’s GLI-33: Standards for Event Wagering Systems,
18 and its appendices, as amended or modified (GLI-33);
19 (3) minimum house rules, including:
20 (A) the method for calculation and payment of winning wagers;
21 (B) the effect of schedule changes for a sports event;
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1 (C) the method of notifying bettors of odds or proposition changes;
2 (D) acceptance of wagers at terms other than those posted;
3 (E) circumstances under which the operator will void a bet; and
4 (F) treatment of errors, late bets, and related contingencies;
5 (4) minimum accounting controls, including:
6 (A) processes for recording the collection of wagers, payment of
7 wagers, and cancellation of wagers issued; and
8 (B) requirements for an annual audit of accounting controls;
9 (5) minimum internal control standards; and
10 (6) minimum cash reserves to be maintained by each operator.
11 (c) Each operator shall pay to the Department a revenue share that is
12 determined through the competitive bidding process.
13 § 1304. RESPONSIBLE GAMING; OPERATOR PLANS, DUTIES, AND
14 REPORT
15 (a) Annually, each operator shall submit to the Department a responsible
16 gaming plan that shall include information related to the posting of materials
17 related to problem gambling, resources to be made available to bettors
18 expressing concerns about problem gambling, house-imposed player limits,
19 and self-exclusion programs. The Commissioner shall require each applicant
20 to submit a responsible gaming plan prior to authorizing the applicant to
21 conduct a sportsbook within the State.
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1 (b) Annually on or before January 15, the Department, in consultation with
2 the Department of Mental Health, shall submit to the General Assembly a
3 report on the impact of sports wagering on problem gambling in Vermont,
4 including an analysis of demographic populations that are disproportionately
5 impacted by problem gambling. The Department may require the operators to
6 pay for the costs associated with preparing and submitting the report.
7 (c) The Department shall ensure that each operator utilizes a mobile sports
8 wagering platform that:
9 (1) prohibits an individual from establishing more than one account;
10 (2) prohibits an individual from using a credit card to establish an
11 account or place wagers;
12 (3) allows a person to limit the amount of money that may be deposited
13 into an account and spent per day through an account;
14 (4) establishes a voluntary self-exclusion process to allow a person to:
15 (A) exclude themselves from establishing an account;
16 (B) exclude themselves from placing wagers through an account; or
17 (C) limit the amount that a person may spend using an account;
18 (5) provides responsible gaming and problem gambling information to
19 participants; and
20 (6) conspicuously displays on each applicable Internet website or mobile
21 application:
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1 (A) a link to a description of the provisions of this subsection (c);
2 (B) a link to responsible gambling information;
3 (C) a telephone number that an individual may use to obtain
4 information about problem gambling;
5 (D) a link to information about the voluntary self-exclusion process
6 described in subdivision (4) of this subsection (c);
7 (E) a periodic pop-up message displaying the amount of time an
8 individual has spent on the operator’s Internet website or mobile application;
9 (F) a means to initiate a break in play to discourage excessive play;
10 and
11 (G) a clear display of the amount of money available to the individual
12 in t