SECTION 1. Section 7 of chapter 4 of the General Laws, appearing in the 2018 Official Edition, is hereby amended by striking out the Tenth clause and inserting in place thereof the following clause:-

Tenth, “Illegal gaming,” a banking or percentage game played with cards, dice, tiles, dominoes, or an electronic, electrical or mechanical device or machine for money, property, checks, credit or any representative of value, but excluding: (i) a lottery game conducted by the state lottery commission, under sections 24, 24A and 27 of chapter 10; (ii) a game conducted under chapter 23K; (iii) sports wagering conducted under chapter 23N; (iv) pari-mutuel wagering on horse races under chapters 128A and 128C and greyhound races under said chapter 128C; (v) a game of bingo conducted under chapter 271; and (vi) charitable gaming conducted under said chapter 271.

SECTION 2. The General Laws are hereby amended by inserting after chapter 23M the following chapter:-

CHAPTER 23N.

AUTHORIZATION AND REGULATION OF SPORTS WAGERING

Section 1. This chapter shall be known and may be cited as the “Massachusetts Sports Wagering Act”.

Section 2. Notwithstanding any general or special 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 and regulations of the commission.

Section 3.  As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:-

“Adjusted gross sports wagering receipts”, an operator’s total gross receipts from sports wagering less the total of all winnings paid to wagerers in such games, which shall include the cash equivalent of any merchandise or thing of value awarded as a prize, and all excise taxes paid pursuant to federal law.

“Category 1 license”, a license issued by the commission that permits the operation of sports wagering in-person at a gaming establishment as defined in section 2 of chapter 23K, and through not more than three individually branded mobile applications or other digital platforms approved by the commission.

“Category 2 license”, a license issued by the commission that permits the operation of sports wagering in-person and through not more than one individually branded mobile application or other digital platform approved by the commission at a live race track as defined in section 1 of chapter 128A that has received a license pursuant chapter 128A or at a facility authorized to conduct simulcast wagering pursuant to chapter 128C. Prior to obtaining a category 2 license, a licensee shall maintain a racing facility on the premises where said in-person sports wagering shall occur and hold not less than 50 racing days in the initial calendar year when the license is authorized and each subsequent calendar year that a license is held unless, in consultation with the parties to any purse agreement, the commission determines it is in the best interest of all parties to adjust the amount of required racing days at a category 2 licensee based on fields, demand and racing performance.

“Category 3 license”, a license issued by the commission that permits the operation of sports wagering through a mobile application and other digital platforms approved by the commission.

“Collegiate sport or athletic event”, a sport or athletic event offered or sponsored by, or played in connection with, a public or private institution that offers educational services beyond the secondary level.

“Commission”, the Massachusetts gaming commission established in section 3 of chapter 23K. 

“Data supplier”, a person or entity that sells data, player or team statistics necessary to enable end-game sports wagering or live sports wagering.

“Data supplier license”, a license issued by the commission that permits a data supplier to contract with a category 1, 2, or 3 licensee under commercially reasonable terms and conditions for the provision of data, player, and team statistics used to determine the results of end-game and live sports wagers.

“Electronic sports” or “esports”, a single or multiplayer video game played competitively for spectators, typically by professional gamers.

“End-game wager”, a sports wager that is determined solely by the final score or outcome of a sporting event and is placed before the sporting event has begun.

“Gaming establishment”, a licensee offering gaming at a facility in this state or an applicant as defined in section 2 of chapter 23K.

“Gross sports wagering receipts”, the total gross receipts derived from sports wagers.

“Live sports wager”, a sports wager on a sporting event after the sporting event has begun and before it ends, provided that this type of sports wager shall be anything that is not an end-game sports wager. The commission shall approve all live sports wagering in a manner prescribed by the commission. This definition does not include wagers on the biometric data or personal medical information of an athlete or wagers where athletes are using wearable technology.

“Operator” or “sports wagering operator”, any entity permitted under this chapter to offer sports wagering to persons in the commonwealth through a category 1 license, category 2 license or category 3 license. 

"Patron”, an individual who places a bet or wager via a sports wagering operator.

“Personal biometric data”, an athlete’s personal and medical information including, but not limited to: DNA, heart rate, blood pressure, perspiration rate, internal or external body temperature, hormone levels, glucose levels, hydration levels, vitamin levels, bone density, muscle density, and sleep patterns.

“Players association”, a professional sports association that represents registered professional athletes.

“Professional sport or athletic event”, an event at which 2 or more persons participate in a sports event and receive compensation in excess of actual expenses for their participation in such event.

“Prohibited conduct”, any statement, action, and other communication intended to influence, manipulate, or control a betting outcome of a sporting contest or of any individual occurrence or performance in a sporting contest in exchange for financial gain or to avoid financial or physical harm.

“Prohibited sports event”, an amateur sporting event, including Olympic, college, high school, and any fantasy contest as defined in section 135 of chapter 219 of the acts of 2016.

“Sports event” or “sporting event”, any professional sport or athletic event. This definition shall not include a prohibited sporting event as defined in this chapter.

“Sports governing body”, a sports organization that has a regulatory, sanctioning or organizing function for a specific sport or athletic event. This definition shall include, but not be limited to, a professional sports organization as defined in 28 U.S.C. section 3701(3) and national governing body as defined in 36 U.S.C. section 220501(b)(8).   

“Sports wagering operation”, the business of accepting wagers on a sporting event by any system or method of wagering approved by the commission.

“Sports wagering”, the act of placing wagers on sporting events or portions of sporting events, the individual performance statistics of athletes in a sporting event or other events or a combination of any of the same by any system or method of wagering approved by the commission including, but not limited to, end-game bets, single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game or in-play wagers, proposition bets, straight bets, or other live bets. This definition does not include (i) bingo as authorized under section 22B of chapter 271, (ii) keno as authorized under section 27A of chapter 10, or (iii) lottery games of the Massachusetts state lottery as authorized under section 37 of chapter 10.

“Sports wagering account”, a financial record established by an operator for an individual patron in which the patron may deposit by any method approved by the commission and withdraw funds for sports wagering and other authorized purchases, and to which the operator may credit winnings or other amounts due to or authorized by that patron. Such account may be established and funded by the patron electronically through an approved mobile application or digital platform.

“Wager”, a cash or cash equivalent paid by an individual to participate in sports wagering. A wager shall not be paid by use of a credit card.

Section 4. (a) The commission shall have the authority to regulate the conduct of sports wagering under this chapter.  The power and authority granted to the commission shall be construed as necessary for the implementation, administration and enforcement of this chapter.

(b) The commission shall have the authority to promulgate rules and regulations necessary for the implementation, administration and enforcement of this chapter. The commission may promulgate emergency rules and regulations in accordance with applicable procedures for the promulgation of emergency rules and regulations.

(c) The commission may promulgate rules and regulations including, but not limited to, those governing licensees, the acceptance of wagers on a sports event, other event or a series of sports events; types of live sports wagering; types of wagering receipts which may be used; methods of issuing receipts; methods of accounting to be used by operators; types of records to be kept; types of systems for wagering; data and other pertinent standards and requirements for data suppliers; athlete protections; protections for patrons placing wagers; and promotion of social responsibility and responsible gambling. Said regulations shall include a requirement that all mobile applications and digital platforms authorized for sports wagering include prominently upon each entry into the application or platform, the number for a problem gambling hotline overseen by the department of public health.

(d) The commission 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. The commission may accept applications, evaluate qualifications of applicants, undertake initial review of licenses and issue licenses as it deems appropriate upon the effective date of this chapter.

(e) The commission shall levy and collect all fees, surcharges, civil penalties and taxes on adjusted gross sports wagering receipts imposed by this chapter, except as otherwise provided under this chapter.

(f) The commission shall have the authority to enforce this chapter and any rule or regulation of the commission and may request that the attorney general bring an action to enforce this chapter.

(g) The commission may hold hearings, administer oaths and issue subpoenas or subpoenas duces tecum in order to enforce this chapter and the rules and regulations of the commission.

(h) The commission shall approve all live sports wagering. The commission shall promulgate rules and regulations that prescribe the method of approving a live sports wager. Said method shall include not less than one public hearing administered by the commission to assist in its determination.

(i) The commission may exercise any other powers necessary to effectuate this chapter and the rules and regulations of the commission.

(j) The commission shall study whether sports wagering in Massachusetts should include esports wagering. The commission shall consider: (i) the average age of esports players and spectators; (ii) the consequences of gambling advertising to children and vulnerable populations; (iii) the extent of gambling content consumed and reacted to by children in states where esports gambling is allowed; (iv) the differences between the traditional sports and esports gambling ecosystems; (v) the monthly esports wagering revenues for operators in states where esports is allowed; (v) the number of problem gamblers below the age of 25 in states where esports gambling is allowed; and (vi) and any other information the commission deems appropriate. Upon completion of said study, the commission shall determine whether or not to allow for sports wagering on esports.

Section 5. (a) No person shall engage in any activity or operation in connection with sports wagering in the commonwealth unless all necessary licenses have been obtained in accordance with this chapter and rules and regulations of the commission.

(b) The following persons shall not be permitted to have ownership interest in, control of, or otherwise be employed by a licensee or place a wager on a sporting event that is overseen by that person’s sports governing body based on publicly available information:

(1) Any person who is an athlete, coach, referee, or director of a sports governing body or any of its member teams;

(2) A sports governing body or any of its members;

(3) A player or referee personnel member, in or on any sports event overseen by that person’s sports governing body based on publicly available information;

(4) A person who holds a position of authority or influence sufficient to exert influence over the participants in a sporting contest, including but not limited to, coaches, managers, handlers, and athletic trainers;

(5) A person with access to certain types of exclusive information on any sports event overseen by that person’s sports governing body based on publicly available information; or

(6) A person identified by any lists provided by the sports governing body to the commission.

(c) No persons or entities shall engage in prohibited conduct as defined in this chapter.

Section 6. (a) The commission shall issue a category 1 license, as defined in this chapter, to an applicant that meets the requirements of this chapter and the rules and regulations of the commission.

(b) A category 1 license under this chapter shall be in addition to any other license required to operate a category 1 gaming establishment pursuant to chapter 23K.

(c) All applicants under this section shall submit an application to the commission in a manner prescribed by the commission to verify the applicant’s eligibility under this chapter.

(d) Licensees under this section may offer sports wagering to persons on the premises of the licensed facility and through not more than three individually branded mobile applications or other digital platforms approved by the commission.

(e) The commission shall determine the minimum application fee, which shall not be less than $1,000,000, to account for costs associated with the processing of the application and investigation of the applicant. If the costs of the investigation exceed the initial application fee, the applicant shall pay the additional amount to the commission within 30 days after notification of insufficient fees or the application shall be rejected.  The application fee shall be deposited into the gaming control fund established in section 57 of chapter 23K and any funds not used by the commission in furtherance of its investigation into the suitability of the applicant shall revert to the general fund.

(f) A category 1 licensee shall pay an initial licensing fee of $2,500,000. The initial licensing fees shall be deposited into the general fund.

(g) Upon  receipt of an application for a category 1 license, the commission shall commence an investigation into the suitability of the applicant. The commission may use information obtained from the applicant pursuant to chapter 23K to relieve the applicant of duplicate requirements of this chapter. In evaluating the suitability of the applicant, the commission shall consider the overall reputation of the applicant including, without limitation:

(1) The integrity, honesty, good character and reputation of the applicant;

(2) The financial stability, integrity and background of the applicant;

(3) The business practices and the business ability of the applicant to establish and maintain a successful sports wagering operation;

(4) Whether the applicant has a history of compliance with gaming or sports wagering licensing requirements in other jurisdictions;

(5) Whether the applicant, at the time of application, is a defendant in litigation involving its business practices; and

(6) The suitability of all parties in interest to the license, including affiliates and close associates and the financial resources of the applicant.

(h) A category 1 license issued pursuant to this chapter shall be for a period of 5 years. Upon receipt of a renewal application, the commission shall automatically renew the license if the commission finds no infraction and the applicant’s license is suitable for renewal. The commission shall establish procedures for renewal and set the renewal application fee based on the costs associated with the evaluation of a licensee.  The cost of license renewal shall be $1,000,000 and shall be deposited into the general fund.

(i) Applications for licenses shall be public records under section 10 of chapter 66, and trade secrets, competitively-sensitive or other proprietary information provided in the course of an application for a gaming establishment license under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure under chapter 66.

Section 7.  (a) The commission shall issue a category 2 license, as defined in this chapter, to an applicant that meets the requirements of this chapter and the rules and regulations of the commission. A category 2 license shall not be awarded to an operator who is eligible for and has received a category 1 license.

(b) A category 2 license under this chapter shall be in addition to any other license required to operate a live race track or conduct simulcast wagering pursuant to chapter 128A or 128C.

(c) Licensees under this section may offer sports wagering to persons on the premises of the licensed facility and using one individually branded mobile or digital platform approved by the commission.

(d) All applicants under this section shall submit an application to the commission in a manner prescribed by the commission to verify the applicant’s eligibility under this chapter.

(e) The commission shall determine the minimum application fee, which shall not be less than $1,000,000, to account for costs associated with the processing of the application and investigation of the applicant. If the costs of the investigation exceed the initial application fee, the applicant shall pay the additional amount to the commission within 30 days after notification of insufficient fees or the application shall be rejected.  The application fee shall be deposited into the gaming control fund established in section 57 of chapter 23K, and any funds not used by the commission in furtherance of its investigation into the suitability of the applicant shall revert to the general fund.

(f) A category 2 licensee shall pay an initial licensing fee of $1,500,000. The initial licensing fee shall be deposited into the general fund.

(g) Upon receipt of an application for a category 2 license, the commission shall commence an investigation into the suitability of the applicant. The commission may use information obtained from the applicant pursuant to chapter 128A or 128C to relieve the applicant of duplicate requirements of this chapter. In evaluating the suitability of the applicant, the commission shall consider the overall reputation of the applicant including, without limitation:

(1) The integrity, honesty, good character and reputation of the applicant;

(2) The financial stability, integrity and background of the applicant;

(3) The business practices and the business ability of the applicant to establish and maintain a successful sports wagering operation;

(4) Whether the applicant has a history of compliance with gaming, live racing, or sports wagering licensing requirements in the commonwealth or other jurisdictions;

(5) Whether the applicant, at the time of application, is a defendant in litigation involving its business practices; and

(6) The suitability of all parties in interest to the license, including affiliates and close associates and the financial resources of the applicant.

(h) A category 2 license issued pursuant to this chapter shall be for a period of 5 years. Upon receipt of a renewal application, the commission shall automatically renew the license if the commission finds no infraction and the applicant’s license is suitable for renewal. The commission shall establish procedures for renewal and set the renewal application fee based on the costs associated with the evaluation of a licensee. The cost of license renewal shall be $500,000 and shall be deposited into the general fund.

(i) Applications for licenses shall be public records under section 10 of chapter 66, and trade secrets, competitively-sensitive or other proprietary information provided in the course of an application for a gaming establishment license under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure under chapter 66.

Section 8.  (a) The commission may issue not more than 6 category 3 licenses, as defined in this chapter, pursuant to an open and competitive selection process.

(b) A category 1 or category 2 licensee may enter into agreements related to online sports wagering with a category 3 licensee pursuant to the approval of the commission.

(c) All applicants under this section shall submit an application to the commission in a manner prescribed by the commission to verify the applicant’s eligibility under this chapter.

(d) Licensees under this section may offer sports wagering through a mobile application or other digital platforms approved by the commission

(e) The commission shall determine the minimum application fee, which shall not be less than $2,000,000, to account for costs associated with the processing of the application and investigation of the applicant If the costs of the investigation exceed the initial application fee, the applicant shall pay the additional amount to the commission within 30 days after notification of insufficient fees or the application shall be rejected.  The application fee shall be deposited into the gaming control fund established in section 57 of chapter 23K and any funds not used by the commission in furtherance of its investigation into the suitability of the applicant shall revert to the general fund.

(f) A category 3 licensee shall pay an initial licensing fee of $7,500,000. The initial licensing fee shall be deposited into the general fund.

(g) Upon receipt of an application for a category 3 license, the commission shall commence an investigation into the suitability of the applicant. In evaluating the suitability of the applicant, the commission shall consider the overall reputation of the applicant including, without limitation:

(1) The integrity, honesty, good character and reputation of the applicant;

(2) The financial stability, integrity and background of the applicant;

(3) The business practices and the business ability of the applicant to establish and maintain a successful sports wagering operation;

(4) Whether the applicant has a history of compliance with online or in-person sports wagering requirements in other jurisdictions;

(5) Whether the applicant, at the time of application, is a defendant in litigation involving its business practices; and

(6) The suitability of all parties in interest to the license, including affiliates and close associates and the financial resources of the applicant.

(h) A category 3 license issued pursuant to this chapter shall be for a period of 5 years. Upon receipt of a renewal application, the commission shall automatically renew the license if the commission finds no infraction and the applicant’s license is suitable for renewal. The commission shall establish procedures for renewal and set the renewal application fee based on the costs associated with the evaluation of a licensee. The cost of license renewal shall be $3,000,000 and shall be deposited into the general fund.

(i) Applications for licenses shall be public records under section 10 of chapter 66, and trade secrets, competitively-sensitive or other proprietary information provided in the course of an application for a gaming establishment license under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure under chapter 66.

Section 9. (a) The commission may issue one or more data supplier licenses, as defined in this chapter, that would allow a person or entity to sell data, player, and team statistics necessary to enable end-game sports wagering or live sports wagering to a category 1, 2, or 3 licensee on commercially reasonable terms and conditions. The commission shall issue a license or licenses under this section pursuant to an open and competitive selection process and shall determine the most appropriate number of data supplier licensees in the commonwealth.

(b) The commission shall provide oversight and approval of data supplier licenses in a manner prescribed by the commission.

(c) All applicants under this section shall submit an application to the commission in a manner prescribed by the commission to verify the applicant’s eligibility under this chapter.

(d) An applicant for a data supplier license shall demonstrate during the application process that the equipment, system and services that the applicant plans to offer conform to all data standards and requirements established by the commission.

(e) The commission shall determine the minimum application fee, which shall not be less than $1,000,000, to account for costs associated with the processing of the application and investigation of the applicant. If the costs of the investigation exceed the initial application fee, the applicant shall pay the additional amount to the commission within 30 days after notification of insufficient fees or the application shall be rejected. The application fee shall be deposited into the gaming control fund established in section 57 of chapter 23K and any funds not used by the commission in furtherance of its investigation into the suitability of the applicant shall revert to the general fund.

(f) A data supplier licensee shall pay an initial licensing fee of $5,000,000. The initial licensing fee shall be deposited into the general fund.

(g) Upon receipt of an application for data supplier license, the commission shall commence an investigation into the suitability of the applicant. In evaluating the suitability of the applicant, the commission shall consider the overall reputation of the applicant including, without limitation:

(1) The integrity, honesty, good character and reputation of the applicant;

(2) The financial stability, integrity and background of the applicant;

(3) The business practices and the business ability of the applicant to establish and maintain a legitimate data supplier operation as it relates to sports wagering;

(4) Whether the applicant has a history of compliance with data supplier requirements related to sports wagering in other jurisdictions;

(5) Whether the applicant, at the time of application, is a defendant in litigation involving its business practices; and

(6) The suitability of all parties in interest to the license, including affiliates and close associates and the financial resources of the applicant.

(h) A data supplier license issued pursuant to this chapter shall be for a period of 5 years. Upon receipt of a renewal application, the commission shall automatically renew the license if the commission finds no infraction, the applicant’s license is suitable for renewal, and the licensee continues to negotiate with category 1, 2, and 3 licensees using commercially reasonable terms and conditions. The commission shall establish procedures for renewal and set the renewal application fee based on the costs associated with the evaluation of a licensee. The cost of license renewal shall be $2,000,000 and shall be deposited into the general fund.

(i) Applications for licenses shall be public records under section 10 of chapter 66, and  trade secrets, competitively-sensitive or other proprietary information provided in the course of an application for a gaming establishment license under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure under chapter 66.

Section 10. The commission may condition, suspend, reprimand or revoke a category 1, category 2, category 3 or data supplier license upon a finding that a licensee: (i) has committed a criminal or civil offense under this chapter or under any other laws of the commonwealth; (ii) is not in compliance with sports wagering regulations or is under criminal investigation in another jurisdiction; (iii) has breached a condition of licensure; (iv) has affiliates, close associates or employees that are not qualified or licensed under this chapter with whom the licensee continues to conduct business or employ; (v) is no longer capable of maintaining operations as a sports wagering operator or data supplier; or (vi) whose business practice, upon a determination by the commission, is injurious to the policy objectives of this chapter.

Section 11. (a) An applicant or licensee qualified under this chapter shall have a continuing duty to provide any assistance or information required by the commission and to cooperate in any inquiry or investigation conducted by the commission. Refusal to answer or produce information, evidence or testimony by an applicant or licensee may result in denial of the application or suspension or revocation of the license by the commission.

(b) Sports wagering operators shall cooperate with investigations conducted by sports governing bodies, including but not limited to, providing or facilitating the provision of anonymized account-level sports wagering information and audio or video files relating to persons placing wagers. All disclosures under this section are subject to the obligation of a sports wagering operator to comply with all federal, state and local laws and regulations, including but not limited to, laws and regulations relating to privacy and personally identifiable information.

Section 12. (a) Each operator shall adopt comprehensive house rules for game play governing sports wagering transactions with its patrons. The house rules shall specify the amounts to be paid on winning wagers and the effect of sports event schedule changes. The commission shall approve house rules prior to implementation.

(b) The house rules, together with any other information the commission deems appropriate, shall be prominently displayed and readily accessible to any patrons of the sports wagering operation.

Section 13. (a) Prior to the allowance of sports wagering in the commonwealth, in order to provide robust protections for all patrons engaged in sports wagering, the commission shall promulgate regulations to:

(1) Maintain the security of wagering data, customer data and other confidential information from unauthorized access and dissemination. Nothing in this chapter shall preclude the use of internet or cloud-based hosting of such data and information or disclosure as required by court order, other law or this chapter.

(2) Prohibit persons under the age of 21 from participating in sports wagering.

(3) Prohibit the use of credit cards in placing sports wagers in any manner including  in-person, via website, or via online application.

(4) Prohibit licensees from purchasing or otherwise using any personal biometric data of an athlete for purposes of sports wagering or aiding a patron in placing a sports wager.

(5) Govern compulsive and problem gambling.

(6) Investigate complaints related to sports wagering and for handling suspected cheating and sports wagering irregularities.

(7) Ensure that online sports wagers are initiated and received within the geographic borders of the state of Massachusetts and may not be intentionally routed outside the state.

(8) Ensure that operators and data suppliers, where appropriate, implement annual comprehensive employee trainings developed by an unaffiliated third party on responsible gambling, including but not limited to, patron protection and responsible gambling interventions.

(9) Ensure that operators offer a voluntary program for patrons to self-exclude from wagering for a set period of time and report self-excluded patrons to the commission, who will provide excluded patrons with  information about available help and prevention services.

(10) Ensure that licensees allow patrons to set a variety of limits that are clearly signposted when a patron joins an online site. Limitations include, but are not limited to:

(i) Setting daily, weekly or monthly limits on the size of deposits;

(ii) Setting a system-wide or product-based limit on the amount of time or money spent;

(iii) Ability to block themselves from particular games or game types; and

(iv) Setting time-out limits.

(11) Prevent underaged, unregistered, unauthorized or excluded patrons from accessing a sports wagering account.

(12) Ensure sports wagering operators employ reasonable methods to comply with (1) through (11), inclusive.

(b) The commission shall designate a state law enforcement entity to have primary responsibility for conducting, or assisting the commission in conducting investigations into abnormal sports wagering activity, match fixing and other conduct that corrupts a betting outcome of a sporting event or events for purposes of financial gain.

Section 14.  A sports governing body, a players association or other interested party may submit to the commission in writing, by providing notice in such form and manner as the commission may require, a request to restrict, limit or exclude a certain type, form or category of sports wagering with respect to sporting events of such body, if the sports governing body or party believes that such type, form or category of sports wagering with respect to sporting events of such body is contrary to public policy, unfair to consumers, may undermine the perceived integrity of such body or sporting events of such body or affects the integrity of such body or sporting events of such body. The commission shall request comment from sports wagering operators on all such requests. The commission shall respond to a request concerning a particular event before the start of the event, or if it is not feasible to respond before the start of the event, no later than 7 days after the request is made. Until a decision is reached by the commission, sports wagering operators may continue to offer sports wagering on sporting events that are the subject of such a request during the pendency of the consideration of the applicable request. Nothing in this subsection shall limit the ability of the commission to limit or exclude a certain type, form or category of sports wagering.

Section 15. (a) Sports wagering operators and, where appropriate, data suppliers shall immediately report to the commission any information relating to but not limited to:

(1) criminal or disciplinary proceedings commenced against the sports wagering operator or data supplier in connection with its operations;

(2) abnormal betting activity or patterns that may indicate a concern with the integrity of a sporting event or events;

(3) any potential breach of the internal rules and codes of conduct pertaining to sports wagering of a relevant sports governing body;

(4) any other conduct that corrupts a betting outcome of a sporting event or events for purposes of financial gain, including match fixing; and

(5) suspicious or illegal wagering activities, including use of funds derived from illegal activity, wagers to conceal or launder funds derived from illegal activity, using agents to place wagers and using false identification. 

(b) The commission may report information relating to conduct described in paragraphs (1) to (5) of subsection (a) to the relevant sports governing body and shall promulgate regulations governing the reporting of such information from a sports wagering operator or data supplier to a relevant sports governing body.

(c) A sports wagering operator or data supplier shall maintain the confidentiality of information provided by a sports governing body for purposes of investigating or preventing the conduct described in paragraphs (1) to (5) of subsection (a), unless disclosure is required by this chapter, the commission, other law or court order or unless the sports governing body or data supplier consents to disclosure. The commission shall promulgate regulations governing the confidentiality of information shared by a sports governing body for purposes of investigating or preventing the conduct described in paragraphs (1) to (5) of subsection (a).

(d) Sports wagering operators shall maintain records of all wagers placed by its patrons, including personally identifiable information of the patron, amount and type of the bet, the time the bet was placed, the location of the bet, including the IP address if applicable, the outcome of the bet and records of abnormal betting activity for 3 years after a sporting event occurs and video camera recordings in the case of in-person wagers for at least 1 year after a sporting event occurs, and shall make such data available for inspection upon request of the commission or as required by court order.  Nothing in this section shall require a sports wagering operator to provide any information prohibited by federal, state or local laws or regulations, including but not limited to, laws and regulations relating to privacy and personally identifiable information.   

Section 16. (a) All operators licensed under this chapter to conduct sports wagering shall:

(1) Employ a monitoring system utilizing software to identify irregularities in volume or changes in odds that could signal suspicious activities and promptly report such information to the commission for further investigation. System requirements and specifications shall be developed according to standards set by the commission.

(2) Promptly report to the appropriate state or federal authorities any suspicious betting over a threshold set by the commission.

(3) Conduct all sports wagering activities and functions in a manner that does not pose a threat to the public health, safety or welfare of the residents of the commonwealth.

(4) Keep current in all payments and obligations to the commission.

(5) Prevent any person from tampering with or interfering with the operation of any sports wagering.

(6) Ensure that mobile sports wagering occurs only using a commission-approved mobile application or other digital platform to accept wagers initiated within the commonwealth.

(7) Maintain sufficient cash and other supplies to conduct sports wagering at all times.

(8) Maintain daily records showing the gross sports wagering receipts and adjusted gross sports wagering receipts of the licensee from sports wagering and shall timely file with the commission any additional reports required by rule, regulation or this chapter.

(9) Conduct a background check on each newly hired employee, and on any employee hired prior to the effective date of this act, that the commission deems necessary. Background checks shall search for criminal history, charges or convictions involving corruption or manipulation of sporting events and association with organized crime. 

(10) Not engage in prohibited conduct or accept wagers on prohibited sporting events.

(b) Sports wagering operators may use any data source that comes from a data supplier licensee for determining the results of any and all end-game and live sports wagers.

Section 17. (a) Holders of category 1 and category 2 licenses may accept wagers on sports events authorized under this chapter in person at authorized facilities. Holders of category 1 and category 2 licenses may also accept wagers on sports events authorized under this chapter from individuals using mobile applications or digital platforms approved by the commission, through a patron’s sports wagering account. The branding for each mobile application or digital platform shall be determined by the operator, subject to approval of the commission. All bets authorized under this section shall be initiated, received and otherwise made within the commonwealth. Consistent with the intent of the federal Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C. section 5361 to 5367, inclusive, the intermediate routing of electronic data related to a lawful intrastate wager authorized under this chapter shall not determine the location or locations in which the wager is initiated, received or otherwise made.

(b) A category 3 licensee may accept wagers on sports events and other events authorized under this chapter only from individuals physically located within the commonwealth using mobile applications or digital platforms approved by the commission, through a patron’s sports wagering account. All bets authorized under this section must be initiated, received and otherwise made within the commonwealth. Consistent with the intent of the federal Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C. section 5361 to 5367, inclusive, the intermediate routing of electronic data related to a lawful intrastate wager authorized under this chapter shall not determine the location or locations in which the wager is initiated, received or otherwise made.

Section 18. (a) The commission or operator may ban any person from participating in the play or operation of any sports wagering consistent with rules and regulations promulgated by the commission. A list of all excluded patrons shall be kept by the commission and provided to each licensee, and no patron on the exclusion list shall be permitted to conduct sports wagering under this chapter.

(b) The commission shall establish a list of voluntary self-excluded persons from sports wagering. A person may request to be placed on the list of self-excluded persons by filing a statement with the commission acknowledging that the person is a problem gambler and by agreeing that, during any period of voluntary exclusion, the person shall not collect any winnings or recover any losses resulting from any sports wagering. The commission shall adopt regulations for the self-excluded persons list including procedures for placement, removal and transmittal of such list to sports wagering operators and requirements for sports wagering operators to inform patrons of such lists and for the ability to contact the operator or commission and be placed on such list. The commission may revoke, limit, condition, suspend or fine a sports wagering operator if the operator knowingly or recklessly fails to exclude or eject from its premises any person placed on the list of self-excluded persons.

Section 19. The  commission shall promulgate regulations for the implementation, administration and enforcement of this chapter including, without limitation, advertising regulations that require the prohibition of the following advertising, marketing and branding activities:

(1) Advertisements, marketing and branding in such a manner that it is deemed to be deceptive, false, misleading, or untrue, or tends to deceive or create a misleading impression whether directly, or by ambiguity or omission.

(2) Use of unsolicited pop-up advertisements on the internet or text message directed to an individual who has added himself or herself to the self-exclusion list pursuant to section 18(b) of this chapter.

(3) Any form of advertising, marketing or branding that the commission otherwise deems unacceptable or disruptive to the viewer experience at a sports event.

(4) Advertising, marketing and branding deemed to appeal directly to a person younger than 21 years old.

(5) Advertising on any billboards, or any other public signage, which fails to comply with all state and local ordinances and requirements.

Section 20. The commission shall establish and set up a confidential integrity helpline for players, athletes, coaches, employees of a sports organization, employees of an operator and members of the general public to report good faith allegations of potential violations of this act. The confidential integrity helpline shall offer general guidance on inquiries concerning the unauthorized use and practice of sports wagering. There shall be a helpline phone number prominently displayed on the commission website and incorporated into public service announcements, displays and marketing mediums to ensure widest dissemination and availability.

Section 21. An operator or sports organization may not discharge, demote, suspend, threaten, harass or in any other manner discriminate against an employee because of any lawful act done by the employee to provide information, cause information to be provided or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of this act.

Section 22. (a) The commission, with the advice of the gaming policy advisory committee, established in section 68 of chapter 23K, shall develop an annual research agenda in order to understand the social and economic effects of sports wagering in the commonwealth and to obtain scientific information relative to the neuroscience, psychology, sociology, epidemiology and etiology of sports wagering. The secretary of health and human services, with the advice and consent of the commission, may expend funds from the Public Health Trust Fund established in section 58 of chapter 23K to implement the objectives of the sports wagering research agenda which shall mirror, to the extent practicable,  the requirements of section 7 of chapter 23K. Said research agenda shall also include: (i) an assessment of whether problem sports wagering is comorbid with problem gambling; (ii) an assessment as to whether the individuals participating in sports wagering are different than those who participate in other forms of gaming or gambling; (iii) an assessment of the impact of sports wagering on youth under the age of 25; (iv) an assessment of the impacts of sports wagering on college athletics and professional sports; and (v) the costs of implementing this chapter.

(b) The commission and the committee shall annually make scientifically-based recommendations which reflect the results of this research to the house and senate committees on ways and means, the joint committee on economic development and emerging technologies, the joint committee on mental health and substance abuse and the joint committee on public health. The commission shall consider any such recommendations, research and findings in all decisions related to enhancing responsible gambling and mitigating problem sports gambling.

Section 23. (a)(1) The commonwealth shall impose and collect an excise equal to 20 per cent of the operator’s adjusted gross sports wagering receipts from the operation of sports wagering on category 1 and category 2 licensees”.

(2)  The commonwealth shall impose and collect an excise equal to 25 per cent of the of the operator’s adjusted gross sports wagering receipts from the operation of sports wagering on category 3 licensees.   

(3) An operator of a fantasy contest as defined in section 135 of chapter 219 of the acts of 2016 shall pay an excise equal to 25 per cent of the operator’s gross fantasy wagering receipts.

(b) 5 per cent of revenue derived from this section shall be deposited into the public health trust fund established in section 58 of chapter 23K of the general laws and used to assist social service and public health programs dedicated to addressing problems associated with compulsive sports gambling including, but not limited to, sports gambling prevention and addiction services, substance abuse services, educational campaigns to mitigate the potential addictive nature of gambling and any studies and evaluations deemed necessary by the commission. The remainder of funds collected pursuant to this section shall be deposited into the general fund. The commission shall promulgate regulations regarding the method of accounting for purposes of calculating the amount of the tax owed by the licensee or operator of a fantasy contest.

(1) The tax levied and collected pursuant to subsection (a) shall be due and payable to the commission in monthly installments on or before the 15th calendar day following the calendar month in which the adjusted gross sports wagering receipts were received.

(2) The operator shall complete and submit the return for the preceding month by electronic communication to the commission, on or before the 15th of each month, in the form prescribed by the commission that provides:

(i) the total gross sports wagering receipts and adjusted gross sports wagering receipts from operation of sports wagering during that month;

(ii) if applicable, the total gross fantasy wagering receipts and adjusted gross fantasy wagering receipts from operation of fantasy wagering during that month;

(ii) the tax amount for which the sports wagering licensee is liable; and

(iii) any additional information necessary in the computation and collection of the tax on adjusted gross sports wagering receipts required by the commission.

(3) The tax amount shown to be due shall be remitted by electronic funds transfer simultaneously with the filing of the return.

Section 24. The commission may impose on any person who violates this chapter a civil penalty not to exceed $2,000 for each violation or $5,000 for violations arising from the same series of events. Such penalty shall be imposed on all individuals and is not limited to individuals licensed under this chapter.

Section 25. (a) Any person, other than an operator under this chapter, who engages in accepting, facilitating or operating a sports wagering operation is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $10,000 or confined in jail for not more than 90 days, or both fined and confined.

(b) Any person convicted of a second violation of subsection (a) is guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $50,000, or confined in jail for not more than 6 months, or both fined and confined.

(c) Any person convicted of a third or subsequent violation of subsection (a) is guilty of a felony, and upon conviction thereof, shall be fined not less than $25,000 nor more than $100,000 or imprisoned in a state correctional facility for not less than 1 year nor more than 5 years, or both fined and confined.

SECTION 3. Section 1 of chapter 137 of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by inserting after the figure “23K”, in line 3, the following words:- or sports wagering conducted pursuant to chapter 23N.

SECTION 4. Section 2 of said chapter 137, as so appearing, is hereby amended by inserting after the figure “23K”, in line 3, the following words:- or an operator who offers sports wagering pursuant to chapter 23N.

SECTION 5. Section 3 of said chapter 137, as so appearing, is hereby amended by inserting after the figure “23K”, in line 7, the following words:- or sports wagering conducted pursuant to chapter 23N.

SECTION 6. Section 1 of chapter 271 of the General Laws, as so appearing, is hereby amended by striking out, in line 4, the words “chapter 23K” and inserting in place thereof the following words:- chapters 23K and 23N.

SECTION 7. Section 2 of said chapter 271, as so appearing, is hereby amended by striking out, in line 4, the words “chapter 23K” and inserting in place thereof the following words:- chapters 23K and 23N.

SECTION 8. Section 3 of said chapter 271, as so appearing, is hereby amended by striking out, in line 1, the words “chapter 23K” and inserting in place thereof the following words:- chapters 23K and 23N.

SECTION 9. Section 5 of said chapter 271, as so appearing, is hereby amended by striking out, in line 1, the words “chapter 23K” and inserting in place thereof the following words:- chapters 23K and 23N.

SECTION 10. Section 5A of said chapter 271, as so appearing, is further amended by inserting after the words “chapter 23K”, in line 32, the following words:- or sports wagering conducted pursuant to chapters 23N.

SECTION 11. Section 5B of said chapter 271, as so appearing, is hereby amended by striking out, in line 58, the words “chapter 23K” and inserting in place thereof the following words:- chapters 23K and 23N.

SECTION 12. Section 8 of said chapter 271, as so appearing, is hereby amended by striking out, in lines 10 to 11, the words “other game of chance that is not being conducted in a gaming establishment licensed under chapter 23K” and inserting in place thereof the following words:- other game that is not being conducted pursuant to chapter 23K and any other sports wagering that is being conducted pursuant to chapter 23N.

SECTION 13. Section 17 of said chapter 271, as so appearing, is hereby amended by inserting after the words “chapter 23K”, in line 27, the following words:- or for the purpose of sports wagering conducted in accordance with chapter 23N.

SECTION 14. Section 19 of said chapter 271, as so appearing, is hereby amended by inserting after the words “chapter 23K”, in line 19, the following words:- and shall not apply to advertising of sports wagering conducted pursuant to chapter 23N.

SECTION 15. Section 20 of said chapter 271, as so appearing, is hereby amended by inserting at the end thereof the following sentence:- Nothing in this section shall prohibit an operator licensed under chapter 23N from posting, advertising or displaying materials relevant to its sports wagering operations.

SECTION 16. Section 23 of said chapter 271, as so appearing, is hereby amended by inserting after the words “chapter 23K”, in line 31, the following words:- and shall not apply to sports wagering conducted pursuant to chapter 23N.

SECTION 17. Section 27 of said chapter 271, as so appearing, is hereby amended by inserting after the word “thereto”, in line 15, the following words:- ; provided, however, that such provisions shall not apply to sports wagering conducting pursuant to chapter 23N.

SECTION 18. Section 28 of said chapter 271, as so appearing, is hereby amended by inserting after the word “prescribed”, in line 12, the following words:- ; provided, however, that such provisions shall not apply to sports wagering conducting pursuant to chapter 23N.

SECTION 19. Section 42 of said chapter 271, as so appearing, is hereby amended by inserting after the word “both”, in line 4, the following words:- ; provided, however, that such provisions shall not apply to sports wagering conducting pursuant to chapter 23N.