2022 22LSO-0423
STATE OF WYOMING
HOUSE BILL NO. HB0126
Sports wagering entity-conditional operating permit.
Sponsored by: Representative(s) Walters and Senator(s)
Landen
A BILL
for
1 AN ACT relating to gaming commission regulated activities;
2 creating a conditional permit for sports wagering entities
3 as specified; authorizing conditional operator permit
4 holders to continue operating in the state as specified;
5 imposing fees; providing a definition; requiring
6 rulemaking; making conforming amendments; and providing for
7 effective dates.
8
9 Be It Enacted by the Legislature of the State of Wyoming:
10
11 Section 1. W.S. 9-24-107 is created to read:
12
13 9-24-107. Conditional operating permit; fees;
14 application; continued operation.
15
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1 (a) The commission shall issue a conditional
2 operating permit to an alternative gaming entity applicant
3 that meets the following requirements:
4
5 (i) Approval by the commission of the
6 applicant's conditional operating permit application,
7 accompanied by the required permit fee imposed by W.S.
8 9-24-103(b);
9
10 (ii) Submission of initial information
11 concerning the applicant's financial security and
12 stability, which information shall include the applicant's
13 anticipated quarterly handle, reserves, bonding amounts and
14 any other information as provided by rule of the
15 commission;
16
17 (iii) No adverse finding by the commission on
18 any disqualifying condition specified by W.S. 9-24-103(j);
19
20 (iv) No finding by the commission that issuing a
21 permit to the applicant will endanger sports wagering
22 patrons or the viability and integrity of the sports
23 wagering industry in Wyoming;
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1
2 (v) Payment of the conditional operating permit
3 fee imposed by W.S. 9-24-103(c); and
4
5 (vi) Certification by the applicant that the
6 applicant will adhere to the continuing obligations imposed
7 by subsection (b) of this section if issued a permit by the
8 commission under this subsection.
9
10 (b) Upon issuance of a conditional operating permit
11 by the commission to an alternative gaming entity, and for
12 the duration of the two (2) year permit period specified by
13 W.S. 9-24-103(c), the entity shall:
14
15 (i) Submit to the commission on a bi-weekly
16 basis a risk verification report approved under rules of
17 the commission concerning the balance of the alternative
18 gaming entity's on-hand cash reserves and bonding amounts
19 in comparison to its handle for the previous two (2) week
20 period;
21
22 (ii) Submit to the commission on a quarterly
23 basis a report approved under rules of the commission
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1 detailing the alternative gaming entity's current handle,
2 on-hand cash reserves and bonding amounts; and
3
4 (iii) Any other information as required by rule
5 of the commission.
6
7 (c) The commission shall promulgate rules specifying
8 a process through which an alternative gaming entity may be
9 regulated under this chapter as a qualified gaming entity,
10 except that the entity shall not be required to offer
11 online sports wagering in three (3) or more jurisdictions
12 in the United States pursuant to a state regulatory
13 structure. The rules shall provide for a uniform
14 application to be submitted by the alternative gaming
15 entity seeking to be regulated under this chapter as a
16 qualified gaming entity, which application shall be
17 submitted not more than one hundred eighty (180) days
18 before the expiration of the entity's conditional operating
19 permit and shall be accompanied by a two thousand five
20 hundred dollars ($2,500.00) application fee. Not more than
21 ninety (90) days before the expiration of the entity's
22 conditional operating permit, the commission shall issue
23 the alternative gaming entity an initial sports wagering
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1 operator permit upon a finding by the commission that the
2 entity has complied with the requirements of this section
3 during the permit period up until the time of submitting
4 the application and upon payment of a sports wagering
5 operator permit fee in the amount of sixty thousand dollars
6 ($60,000.00).
7
8 (d) Any alternative gaming entity issued a sports
9 wagering operator permit in accordance with subsection (c)
10 of this section shall comply with the requirements imposed
11 upon sports wagering operator permit holders under this
12 chapter except that the entity shall not be required to
13 offer online sports wagering in not less than three (3)
14 jurisdictions in the United States pursuant to a state
15 regulatory structure. Any alternative gaming entity issued
16 a sports wagering operator permit under this section may
17 renew the permit in accordance with W.S. 9-24-103.
18
19 Section 2. W.S. 9-24-101(a)(x), (xiv) and by creating
20 a new paragraph (xvi) and 9-24-103(a), (b)(intro), (c),
21 (f), (j)(intro), (k) and (o) are amended to read:
22
23 9-24-101. Definitions.
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1
2 (a) As used in this chapter:
3
4 (x) "Qualified gaming entity" means a gaming
5 entity person that offers online sports wagering through
6 computers, digital platforms or mobile applications in not
7 less than three (3) jurisdictions in the United States
8 pursuant to a state regulatory structure;
9
10 (xiv) "Sports wagering operator" means any
11 qualified or alternative gaming entity authorized by the
12 commission to accept online sports wagers;
13
14 (xvi) "Alternative gaming entity" means a person
15 that offers online sports wagering through computers,
16 digital platforms or mobile applications and who meets all
17 the qualifications established by this chapter to accept
18 online sports wagers;
19
20 9-24-103. Permits; fees; application.
21
22 (a) A sports wagering operator qualified gaming
23 entity and an alternative gaming entity shall possess a
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1 permit issued by the commission to accept online sports
2 wagers. No person shall accept online sports wagers without
3 holding a valid permit issued by the commission.
4
5 (b) A qualified gaming entity applying for a sports
6 wagering operator permit or an alternative gaming entity
7 applying for a conditional operating permit under W.S.
8 9-24-107 shall do so on a uniform application permit
9 applications furnished by the commission. The fee for both
10 an initial application and renewal application fee for an
11 initial sports wagering operator permit and a conditional
12 operating permit shall be two thousand five hundred dollars
13 ($2,500.00). The application renewal fee for a sports
14 wagering operator permit shall be two thousand five hundred
15 dollars ($2,500.00). Permit applications under this
16 subsection shall require an applicant, at a minimum, to
17 provide:
18
19 (c) The commission shall charge a permit fee of one
20 hundred thousand dollars ($100,000.00) for an initial
21 sports wagering operator permit and a conditional operating
22 permit under W.S. 9-24-107. The commission shall charge a
23 fee of fifty thousand dollars ($50,000.00) for a sports
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1 wagering operator permit renewal. An initial sports
2 wagering operator permit and any renewal permit shall each
3 be valid for five (5) years. The commission shall charge a
4 fee of fifty thousand dollars ($50,000.00) for a sports
5 wagering operator A conditional operating permit renewal
6 under W.S. 9-24-107 shall be valid for two (2) years and
7 shall not be renewed.
8
9 (f) Sports wagering operator and sports wagering
10 vendor permit fees charged pursuant to subsections (c) and
11 (e) of this section and W.S. 9-24-107(c) shall be deposited
12 in the sports wagering account, which is hereby created.
13 Subject to legislative appropriation, amounts within the
14 account may be used by the commission for all expenses
15 incurred in administering this chapter. On a quarterly
16 basis, the commission shall transfer amounts within the
17 account in excess of five hundred thousand dollars
18 ($500,000.00) to the state treasurer for credit to the
19 general fund.
20
21 (j) The commission shall deny an application under
22 this article chapter upon finding any of the following:
23
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1 (k) Given a sufficient number of qualified gaming
2 entity applicants, at any one (1) time the commission shall
3 issue not less than five (5) sports wagering operator
4 permits to applicants that satisfy the requirements under
5 this chapter. If an insufficient number of qualified gaming
6 entity applicants apply for a sports wagering operator
7 permit, this provision shall not be interpreted to direct
8 the commission to issue a permit to an unqualified
9 applicant.
10
11 (o) If the commission denies an application or
12 intends to revoke or suspend a permit issued under this
13 article chapter, it shall notify the applicant or permittee
14 in writing, stating the grounds for denial, revocation or
15 suspension and informing the person of a right to submit,
16 within not more than thirty (30) days, any additional
17 documentation relating to the grounds for denial,
18 revocation or suspension. Upon receiving any additional
19 documentation, the commission shall reconsider its decision
20 and inform the applicant of its decision within not more
21 than twenty (20) days of the submission of information for
22 reconsideration. A denial of an application or a revocation
23 or suspension of a permit under this article chapter shall
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1 be subject to the contested case procedures of the Wyoming
2 Administrative Procedure Act.
3
4 Section 3. The Wyoming gaming commission shall
5 promulgate rules necessary to implement this act on or
6 before November 1, 2022.
7
8 Section 4.
9
10 (a) Except as provided in subsection (b) of this
11 section, this act is effective November 1, 2022.
12
13 (b) Sections 3 and 4 of this act are effective
14 immediately upon completion of all acts necessary for a
15 bill to become law as provided by Article 4, Section 8 of
16 the Wyoming Constitution.
17
18
19 (END)
10 HB0126


Statutes affected:
Introduced: 9-24-101, 9-24-103