SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2862

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Second General Court
(2021-2022)

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SECTION 1. Section 7 of chapter 4 of the General Laws is hereby amended by striking out clause Tenth, as appearing in the 2020 Official Edition, and inserting in place thereof the following clause:-

Tenth, “Illegal gaming”, a banking or percentage game played with cards, dice, tiles, dominoes or with an electronic, electrical or mechanical device or machine for money, property, checks, credit or any representative of value; provided, however, that “illegal gaming” shall not include: (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; (v) a game of bingo or any other charitable gaming conducted under chapter 271; and (vi) a fantasy contest conducted under section 11M½ of chapter 12.

SECTION 2. Chapter 12 of the General Laws is hereby amended by inserting after section 11M the following section:-

Section 11M½. Notwithstanding sections 24, 24A and 27 of chapter 10, chapter 271 or any other general or special law to the contrary, a person or entity that offers fantasy contests for a cash prize to members of the public may offer a fantasy contest to residents of the commonwealth in accordance with regulations promulgated by the attorney general. For the purposes of this section, “fantasy contest” shall mean a fantasy or simulated game or contest based on a professional sports event in which: (i) the value of all prizes and awards offered to winning participants are established and made known to the participants in advance of the contest; (ii) all winning outcomes shall be determined predominantly by accumulated statistical results of the performance of individual athletes; (iii) no winning outcome is based on the score, point spread or any performance of a single actual team or combination of teams or solely on a single performance of an individual athlete or player in a single actual event; (iv) all winning outcomes are based upon a participant’s performance relative to other participants in the contest; and (v) the per cent of gross revenue retained by the person or entity offering the fantasy contest is prominently displayed prior to a participant’s entry into the fantasy or simulated game or contest.

SECTION 3. Section 4 of chapter 23K of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by striking out subsections (40) and (41) and inserting in place thereof the following 2 subsections:-

(40) provide assistance to the governor in negotiating a compact with a federally-recognized Indian tribe in the commonwealth; and

(41) regulate and enforce chapter 23N relating to sports wagering.

SECTION 4. Section 58 of said chapter 23K, as so appearing, is hereby amended by striking out, in line 6, the word “may” and inserting in place thereof the following words:- , in addition to expenditures for administering the compulsive gambling direct assistance program, may.

SECTION 5. Said section 58 of said chapter 23K, as so appearing, is hereby further amended by adding the following 2 paragraphs:-

The secretary of health and human services shall expend money in the fund to administer a compulsive gambling assistance program to provide counselling, treatment, referrals and indirect financial recovery to residents with a gambling addiction. Participants in the program shall be required to self-exclude from gambling under chapters 23K and 23N and attend treatment or other counselling to be eligible for indirect financial recovery; provided, however, that financial recovery shall not exceed $5,000 per participant.

Annually, not later than January 1, the secretary shall report on activities of the fund including, but not limited to: (i) the total expenditure of the fund; (ii) the number of people receiving assistance from the fund, delineated by the number of individuals receiving counselling, treatment, referrals and indirect financial recovery; (iii) the average amount of indirect financial recovery funds distributed to each individual; (iv) the purposes for which indirect financial recovery payments were made; and (v) the zip codes associated with the domiciles, if any, of the people who received assistance from the fund. The report shall be submitted to the house and senate committees on ways and means, the joint committee on public health and the joint committee on mental health, substance use and recovery.

SECTION 6. Clause (2) of section 59 of said chapter 23K, as so appearing, is hereby amended by striking out subclause (l) and inserting in place thereof the following subclause:-

(l) 2.5 per cent to: (i) the Race Horse Development Fund established in section 60 if not less than 20 live racing days at a thoroughbred horse track with a 1-mile circumference occurred in the immediately preceding calendar year; or (ii) the Education Fund established in section 64 if not more than 19 live racing days at a thoroughbred horse track with a 1-mile circumference occurred in the immediately preceding calendar year.

SECTION 7. Section 60 of said chapter 23K, as so appearing, is hereby amended by adding the following subsection:-

(d) Notwithstanding subsection (c), if not more than 19 live racing days occurred in the immediately preceding calendar year at a thoroughbred horse track with a 1-mile circumference, all money in the fund may go to the benefit of standardbred accounts.

SECTION 8. The General Laws are hereby further amended by inserting after chapter 23M the following chapter:-

CHAPTER 23N.

AUTHORIZATION AND REGULATION OF SPORTS WAGERING.

Section 1. Notwithstanding any general or special law to the contrary, the operation of sports wagering and ancillary activities shall be conducted in accordance with this chapter and the rules and regulations of the commission.

Section 2. As used in this chapter, the following words shall have the following meanings unless the context clearly requires otherwise:

“Adjusted gross fantasy wagering receipts”, the total gross receipts from fantasy contests as defined in section 11M½ of chapter 12, less only the total of all cash prizes paid to participants in the fantasy contests; provided, however, that the total of all cash prizes paid to participants shall not include the cash equivalent of any merchandise or thing of value awarded as a prize.

“Adjusted gross sports wagering receipts”, the total gross receipts from sports wagering less only the total of all winnings paid to participants; provided, however, that the total of all winnings paid to participants shall not include the cash equivalent of any merchandise or thing of value awarded as a prize.

“Affiliate”, a person who directly or indirectly controls or is controlled by or is under common control with a specified person.

“Applicant”, a person who has applied for a license to engage in activity regulated under this chapter.

“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 1 mobile application or other digital platform approved by the commission.

“Category 2 license”, a license issued by the commission that permits the operation of sports wagering in person at a facility approved by the commission and through 1 mobile application or other digital platform approved by the commission.             

“Close associate”, a person who holds a relevant financial interest in, or is entitled to exercise power in, the business of an applicant or licensee and, by virtue of that interest or power, is able to exercise a significant influence over the management or operation of the applicant or licensee.

“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.

“Electronic sports”, a single or multiplayer video game played competitively for spectators.

“Governmental authority”, a governmental unit of a national, state or local body exercising governmental functions; provided, however, that “governmental authority” shall not include the United States government.

“License”, a license applied for or issued under this chapter including, but not limited to: (i) an operator license; or (ii) an occupational license.

“National criminal history background check”, a criminal history background check conducted using the criminal history record system maintained by the Federal Bureau of Investigation and based on fingerprint identification or any other method of positive identification.

“Occupational license”, a license required to be held by an employee of an operator when the employee performs supervisory duties directly related to the operation of sports wagering.

“Operator”, an entity under this chapter that is authorized to offer sports wagering to persons in the commonwealth through a category 1 license or category 2 license.

“Operator license”, a category 1 license or category 2 license to operate sports wagering.

“Person”, an individual, corporation, association, operation, firm, partnership, trust or other form of business association.

“Personal biometric data”, any information about an athlete that is derived from that athlete’s physical or physiological characteristics including, but not limited to, deoxyribonucleic acid, heart rate, blood pressure, perspiration rate, internal or external body temperature, hormone levels, glucose levels, hydration levels, vitamin levels,               bone density, muscle density or sleep patterns.

“Players association”, a professional sports association recognized by a sports governing body that represents professional athletes.

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

“Promotional gaming credit”, a sports wagering credit or other item issued by an operator to a patron to enable the placement of a sports wager.

“Sporting event”, a professional sport or athletic event, motor race event or other event authorized by the commission under this chapter; provided, however, that “sporting event” shall not include: (i) electronic sports; or (ii) amateur sports or athletic events including, but not limited to, collegiate, high school and youth sports or athletic events or Olympic sports or athletic events.

“Sports governing body”, a sports organization that has a regulatory, sanctioning or organizing function for a specific sporting event including, but not be limited to, a professional sports organization as defined in 28 U.S.C. 3701(3) and a national governing body as defined in 36 U.S.C. 220501(b)(9).

“Sports wager”, a wager on a sporting event or a portion of a sporting event.

“Sports wagering”, the business of accepting wagers on sporting events or portions of sporting events, the individual performance statistics of athletes in a sporting event or any combination thereof by any system or method of wagering approved by the commission including, but not limited to, a mobile application or other digital platform; provided, however, that “sports wagering” shall include, but not be limited to, single-game bets, teaser bets, parlays, over-under, moneyline, pools, exchange wagering, in-game wagering, in-play bets, proposition bets and straight bets; provided further, that “sports wagering” shall not include the acceptance of a wager on injuries, penalties, player discipline or replay review; and provided further, that “sports wagering” shall not include fantasy contests as defined in section 11M½ of chapter 12.

“Sports wagering account”, a financial record established by an operator for a 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; provided, however, that such account may be established and funded by the patron electronically through an approved mobile application or digital platform; and provided further, that a deposit into a sports wagering account shall not be made using a credit card or a third-party payment method providing funds through the use of a credit card.

“Wager”, a sum of money or thing of value risked on an uncertain occurrence.

Section 3. (a) The commission shall regulate the conduct of sports wagering under this chapter.

(b) The commission shall promulgate rules and regulations necessary for the implementation, administration and enforcement of this chapter.

(c) The commission shall promulgate regulations to prohibit: (i) the purchase or other use of any personal biometric data of an athlete for sports wagering or aiding a patron in placing a wager with sports wagering operators; (ii) advertising, marketing or branding in a manner that is deceptive, false, misleading or untrue or that tends to deceive or create a misleading impression whether directly or by ambiguity or omission; (iii) the use of unsolicited pop-up advertisements on the internet or by text message; (iv) any form of advertising, marketing or branding that is determined by the commission to disrupt the ability of a viewer, at a sporting event or remotely, to watch, listen to or otherwise experience a sporting event; (v) advertising, marketing and branding deemed to appeal directly to a person younger than 21 years old; (vi) advertising, marketing or branding, including statements by an operator, that makes any false or misleading statements concerning other operators and the conduct and products of such other operators; (vii) advertising, marketing and branding through certain identified promotional items that, as determined by the commission, tend to increase the likelihood of problem gambling, which may include giveaways, coupons or promotional gaming credits; (viii) advertising on billboards or any other public signage that does not comply with federal, state or local law; (ix) advertising on television during the live broadcast or online streaming of a sporting event, to the extent practicable, including the period beginning 5 minutes before the start of the sporting event and ending 5 minutes after the end of the sporting event; and (x) advertising, marketing and branding by means of television, radio or internet, to the extent practicable, unless at least 85 per cent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition data.

(d)(1) The commission may promulgate rules and regulations regarding: (i) the acceptance of wagers on a sporting event or series of sporting events; (ii) types of wagering receipts that may be used; (iii) methods of issuing receipts; (iv) methods of accounting to be used by operators; (v) types of records that shall be kept; (vi) types of systems for wagering; and (vii) any other sports wagering-related issues.

(2) The commission shall promulgate rules and regulations regarding protections for patrons placing wagers and the promotion of social responsibility and responsible gambling that shall include, but not be limited to, a requirement that an operator: (i) implement responsible gaming programs that include comprehensive employee trainings on responding to circumstances in which individuals present signs of a gambling addiction; (ii) assess, prevent and address problem gaming by an operator’s consumers; (iii) permit a consumer to permanently close an account registered to the consumer on any or all platforms owned or operated by the operator at any time and for any reason; (iv) offer consumers access to their account history and account details; (v) refrain from making claims as to a consumer’s winnings or money earned that is not net of wagers placed; (vi) allow a consumer to withdraw funds without further solicitation or promotion in the manner in which the funds were deposited; (vii) annually submit a problem gaming plan for approval by the commission, in consultation with the department of public health, that includes the objectives of and timetables for implementing the plan, identification of the persons responsible for implementing and maintaining the plan, procedures for identifying consumers with suspected or known problem gaming behavior, procedures for providing information to consumers concerning problem gaming identification and resources, procedures to prevent gaming by minors and self-excluded persons and any other information the commission may require; and (viii) shall not offer or provide a line of credit to any consumer.

(3) The commission shall promulgate regulations that require mobile applications and digital platforms authorized for sports wagering to prominently display upon each entry into the application or platform the telephone number and website for a problem gambling hotline overseen by the department of public health.

(e) The commission shall: (i) determine the eligibility of a person to hold or continue to hold a license; (ii) issue all licenses; and (iii) maintain a record of all licenses issued under this chapter.

(f) 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 in this chapter. All such fees, surcharges, civil penalties and taxes shall revert to the General Fund unless otherwise specified in this chapter; provided however, that 9 per cent of said fees, surcharges, civil penalties and taxes shall be deposited in the public health trust fund established under section 58 of chapter 23K.

(g) The commission may 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 or any rule or regulation of the commission by civil action or petition for injunctive relief.

(h) 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.

(i) The commission may exercise any other powers necessary or convenient to carry out and effectuate the commission’s purposes including, but not limited to, the power to: (i) develop criteria, in addition to those outlined in this chapter, to assess which applications for an operator license will provide the highest and best value to the commonwealth and the region in which in-person sports wagering is to be operated; and (ii) demand access to and inspect, examine, photocopy and audit all papers, books and records of any affiliate of an operator that the commission suspects is involved in the financing, operation or management of the operator; provided, however, that the inspection, examination, photocopying or audit shall take place on the affiliate’s premises or elsewhere, as practicable, and in the presence of the affiliate or the affiliate’s agent.

Section 4. (a) A person shall not engage in any activity in connection with sports wagering in the commonwealth unless all required licenses have been obtained in accordance with this chapter and the rules and regulations of the commission.

(b) The commission shall not grant an operator license until it determines that each person who has control of the applicant meets all qualifications for licensure. For the purposes of this chapter, the following shall be considered to have control of an applicant:

(i) a person who owns 10 per cent or more of a corporate applicant and who has the ability to control the activities of the corporate applicant; provided, however, that a bank or other licensed lending institution that holds a mortgage or other lien acquired in the ordinary course of business shall not be considered to have control of an applicant;

(ii) a person who holds a beneficial or proprietary interest of 10 per cent or more of a non-corporate applicant’s business operation and who has the ability to control the activities of the non-corporate applicant; and

(iii) at the commission’s discretion, an executive, employee or agent having the power to exercise significant influence over decisions concerning the applicant’s sports wagering operations in the commonwealth.

(c) A person having control of an applicant pursuant to subsection (b) shall submit to the commission an application in a form determined by the commission. Each such person who is a natural person shall also submit to the commission: (i) fingerprints for a national criminal records check by the department of state police and the Federal Bureau of Investigation; and (ii) a signed authorization for the release of the person’s information by the department of state police and the Federal Bureau of Investigation; provided, however, that a person having control of an applicant who is a natural person that has submitted to a national criminal records check in any jurisdiction within the previous year shall not be required to submit to another national criminal records check if such person submits to the commission the results of the previous national criminal records check.

(d) Each person licensed under this chapter shall give the commission written notice not more than 30 days after any change to any material information provided in the application for a license or renewal.

(e) A commission employee shall not be an applicant for any license issued under this chapter.

Section 5. (a) A person with a category 1 license or category 2 license may operate sports wagering.

(b)(1) The commission shall issue a category 1 license to a holder of a gaming license, as defined in section 2 of chapter 23K, that meets the requirements of this chapter and the rules and regulations of the commission.

(2)(A) The commission may issue not more than 6 category 2 licenses based on the applications and competitive bids submitted to the commission; provided, however, that at least 1 category 2 license shall be made available in each region established in subsection (a) of section 19 of chapter 23K. If the commission is not convinced that there is an applicant that has both met the eligibility criteria and provided convincing evidence that the applicant will provide value to the commonwealth and promote responsible sports wagering, a category 2 license shall not be awarded. In selecting the locations of the category 2 licensed facilities, the commission shall take into consideration how the location would maximize benefits to the commonwealth. 

(B) The commission shall establish a competitive application process for the issuance of category 2 licenses. As a part of the application process, the commission shall require applicants to submit a proposal. Each proposal shall be scored on the following factors: (i) economic development, which shall include, but not be limited to: (A) capital investments, or commitments for capital investments, made prior to or after the receipt of the license, which may include new construction or improvements to existing infrastructure for the operation of sports wagering in person at a facility and ancillary activities; (B) an estimate of the applicant’s projected taxable revenues from ancillary activities at the facility; (C) an estimate of the number of long-term employees to be hired to support the operation of sports wagering and ancillary activities at the facility and an estimate of the projected wages of such employees; (ii) specific efforts demonstrating a commitment to responsible sports wagering and the mitigation of negative economic and public health outcomes for consumers including, but not limited to, self-exclusion functionality, bet limits, wellness checks, financial health checks and cooling-off periods; (iii) the promotion of diversity, equity and inclusion, which shall include, but not be limited to, the inclusion of an affirmative action program of equal opportunity and an affirmative marketing program that are consistent with the requirements for gaming licensees under clauses (20) to (22), inclusive, of section 21 of chapter 23K; (iv) community support for the proposed in person sports wagering facility demonstrated in a manner established by the commission; and (v) any other factor the commission determines is necessary to maximize the benefits to the commonwealth or to promote responsible sports wagering. The commission shall set requirements concerning the size, furnishings and equipment of an in person sports wagering facility and the minimum capital investment made or to be made in a sports wagering facility that is necessary to ensure strong economic development; provided, however, that all sports wagering at a sports wagering facility shall be done in person and not through an automated kiosk or other computer terminal that is owned or operated by the operator unless the automated kiosk or computer terminal is in the gaming area of a category 1 licensee or located in a portion of a sports wagering facility limited to persons 21 years of age or older; provided further, that the automated kiosk shall collect the same customer data that is required to be collected through a mobile application or other digital platform under this chapter; and provided further, that an automated kiosk shall only be used when an authorized sports wagering employee is on site to resolve any consumer or technology issue that may arise with the use of the kiosk.

(C) The commission shall provide public notice of its intent to solicit applications and competitive bids for category 2 licenses by posting the notice, application instructions and materials on its website not less than 120 calendar days before the applications are due. Failure by an applicant to submit all required information may result in the application being disqualified. The commission may notify an applicant that the applicant’s application is incomplete and provide an opportunity to cure. Application instructions shall include a brief overview of the selection process and how applications are scored.

(c) Prior to issuing an operator 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, chapter 128A or chapter 128C or information from other jurisdictions where the applicant is authorized to conduct sports wagering. In evaluating the suitability of the applicant, the commission shall consider the overall reputation of the applicant including, but not limited to:

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

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

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

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

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

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

(d) The commission shall consider the rehabilitation of an applicant for a license and shall not automatically disqualify an applicant if the applicant affirmatively demonstrates, by clear and convincing evidence, that the applicant has financial responsibility, character, reputation, integrity and general fitness as such to warrant belief by the commission that the applicant will act honestly, fairly, soundly and efficiently as a licensee under this chapter. The commission may deny an application, if the commission determines during its investigation that an applicant has failed to: (i) establish the applicant’s integrity or the integrity of any of the applicant’s affiliates, close associates or financial resources; (ii) demonstrate responsible business practices in any jurisdiction; or (iii) overcome any other reason, as determined by the commission, as to why it would be injurious to the interests of the commonwealth to award the applicant an operator license.

(e) (1)The commission shall grant a category 1 license to a qualified applicant after the applicant pays a $5,000,000 licensing fee; provided, however, that the applicant shall meet the requirements for licensure under this chapter and the rules and regulations of the commission. The license shall be issued for a 5-year period and may be renewed for additional 5-year periods upon payment of a $5,000,000 renewal fee; provided, however, that the operator shall continue to meet all requirements under this chapter and the rules and regulations of the commission.

(2) The commission may issue a category 2 license after the competitive application process described in subparagraph (B) of paragraph (2) of subsection (b) and after the selected applicant makes a payment of a $5,000,000 licensing fee; provided, however, that the applicant meets the requirements for licensure under this chapter and the rules and regulations of the commission. The license shall be issued for a 5-year period and may be renewed for additional 5-year periods upon payment of a $5,000,000 renewal fee; provided, however, that an operator continues to meet all requirements under this chapter and the rules and regulations of the commission.

(3) The commission shall have full discretion as to whether to issue a license. Applicants shall have no legal right or privilege to an operator license and shall not be entitled to any further review if denied by the commission

(f) An operator shall submit to the commission such documentation or information as the commission may require to demonstrate that the operator continues to meet the requirements of this chapter and the rules and regulations of the commission.

(g) An operator shall not transfer an operator license, or any direct or indirect interest in the operator license, without the majority approval of the commission. A person seeking to acquire an operator license through a transfer shall qualify and otherwise be determined by the commission to be eligible for licensure under this chapter. The commission may reject a proposed license transfer or a proposed transfer of interest in the license to an unsuitable person, as determined by the commission, and may reject a proposed transfer that, in the determination of the commission, would be disadvantageous to the interests of the commonwealth. The commission may promulgate regulations governing this process that may include the assessment of a fee to reflect the cost associated with reviewing the proposed transfer. The commission may also require the transferor, transferee or both to pay to the commission an amount representing the commonwealth's share of the increased value for the transferred licenses or interest; provided, however, that the commission shall consider the market value of the license or interest, at the time the license or interest was acquired and at the time of the transfer, as a factor in determining the amount of the payment. The commission may place additional conditions or restrictions on a transfer that the commission considers suitable. Any payment collected by the commission on behalf of the commonwealth based on the transfer shall be deposited in the same manner as license fees are deposited.

(h) An application for an operator license and records and information provided to the commission as part of the commission’s regulatory oversight function shall be a public record under clause twenty-sixth of section 7 of chapter 4 and section 10 of chapter 66; provided, however, that trade secrets, competitively-sensitive or other proprietary information provided in the course of an application for an operator license or as part of the commission’s regulatory oversight function under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure.

(i) No person shall hold, or have a controlling interest in, more than 1 operator license. The commission shall not issue an operator license or permit the transfer of an operator license, or a controlling interest therein, to a person that already has an operator license or a controlling interest therein.

(j) An operator may enter into an agreement, subject to the approval of the commission, with another person to operate sports wagering in person or through a mobile application or other digital platform on behalf of the operator; provided, however, that the person who operates the sports wagering shall be subject to any requirement imposed upon the operator under this chapter that the commission determines is necessary to effectuate this chapter and the rules and regulations of the commission.

Section 6. (a) An applicant for an operator license shall pay to the commission a nonrefundable processing fee of $200,000 for the costs associated with the processing of the application and investigation of the applicant; provided, however, that if the costs of the investigation exceed the initial application fee, the applicant shall pay the additional amount to the commission not more than 30 days after notification of insufficient fees or the application shall be rejected.

(b) All fees in this section shall be deposited into the Sports Wagering Control Fund established in section 14.

Section 7. (a) All persons employed by an operator to perform supervisory duties directly related to the operation of sports wagering in the commonwealth shall maintain a valid occupational license issued by the commission. The commission shall issue such occupational license to a person who meets the requirements of this section.

(b) An occupational license shall authorize the licensee to be employed in the capacity designated by the commission while the license is active. The commission may establish, by rule or regulation, job classifications with different requirements based on the extent to which a particular job impacts, or has the potential to impact, the lawful operation of sports wagering.

(c) The commission shall not grant or renew an occupational license to a person who holds a position of authority or influence sufficient to exert influence over the participants in a sporting event including, but not limited to, coaches, managers, handlers and athletic trainers.

(d) An applicant for an occupational license shall submit any required application form established by the commission and shall pay a nonrefundable application fee of $100. An employer may pay the application fee on behalf of an applicant.

(e) Not later than March 1 of the third calendar year following the issuance or renewal of an occupational license, an occupational license holder shall pay a nonrefundable license renewal fee of $100 and submit a renewal application on a form established by the commission. An employer may pay the license renewal fee on behalf of the licensed employee.

(f) All fees in this section shall be deposited into the Sports Wagering Control Fund established in section 14.

Section 8. (a) The commission may deny a license to any applicant, reprimand any licensee or suspend or revoke a license if the applicant or licensee:

(i) has knowingly made a false statement of a material fact to the commission;

(ii) has had a license revoked by any governmental authority responsible for regulation of gaming activities;

(iii) has been convicted of a felony or other crime involving embezzlement, theft, fraud, perjury or a gambling-related offense;

(iv) has not demonstrated to the satisfaction of the commission financial responsibility sufficient to adequately meet the requirements of the proposed enterprise;

(v) has affiliates or close associates that would not qualify for a license or whose relationship with the applicant may pose an injurious threat to the interests of the commonwealth in awarding an operator license to the applicant; or

(vi) in the case of an operator or an applicant for an operator license, is not the true owner of the business or is not the sole owner and has not disclosed the existence or identity of other persons who have an ownership interest in the business.

(b) The commission may deny, suspend or revoke an operator license or reprimand any licensee if the applicant or licensee has not met the requirements of this chapter.

Section 9. (a) An operator shall adopt comprehensive house rules for game play governing sports wagering transactions with the operator’s patrons. The house rules shall specify the amounts to be paid on winning wagers and the effect of sports event schedule changes.  An operator shall not conduct sports wagering until the commission has approved the house rules and an operator shall not conduct sports wagering in a manner inconsistent with approved house rules.

(b) The house rules, together with any other information the commission deems appropriate, shall be accessible to any patrons of the sports wagering operator. The operator shall make copies readily available to patrons and shall post the house rules as required by the commission, including on a prominent place on the operator's public website and mobile application or other digital platform.

Section 10. (a) An operator shall:

(i) prohibit the operator, directors, officers, owners and employees of the operator and any relative living in the same household as any such person from placing bets with the operator;

(ii) prohibit athletes, coaches, referees, team owners, employees of a sports governing body or its member teams and player and referee union personnel from wagering on any sporting event of their sport’s governing body; provided, however, that the operator shall use lists of such persons that a sports governing body may provide to the commission to determine which persons are excluded from placing wagers under this subsection; and provided further, that the commission may use the list of barred employees from the operator and may work directly with a member team to determine the risk posed by certain employees for obtaining nonpublic confidential information on a sporting event and may remove an employee without knowledge of team strategy or game operations from such a list if the commission determines any such risk is de minimis;

(iii) prohibit any individual with access to nonpublic confidential information held by the operator from placing wagers with the operator;

(iv) prohibit persons from placing wagers as agents or proxies for others; and

(v) employ commercially reasonable methods to maintain the security of wagering data, customer data and other confidential information from unauthorized access and dissemination; provided, however, that 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; and provided further, that such data and information shall be hosted in the United States.

(b) A sports governing body or players association representing athletes who participate in sporting events of the sports governing body may submit to the commission, in writing, by providing notice in a 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 the sports governing body, if the sports governing body or players association believes that such type, form or category of sports wagering with respect to sporting events of the sports governing body: (i) is contrary to public policy; (ii) unfair to consumers; (iii) may undermine the perceived integrity of the sports governing body, sporting events of the sports governing body or the athletes participating therein; or (iv) affects the integrity of the sports governing body or sporting events of the sports governing body or the athletes participating therein.

The commission shall request comment from operators on all such requests. After giving due consideration to all comments received, the commission shall, upon a demonstration of good cause from the requestor, grant the request. 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, not later than 7 days after the request is made; provided, however, that if the commission determines that the requestor is more likely than not to prevail in successfully demonstrating good cause for its request, the commission may provisionally grant the request until the commission makes a final determination as to whether the requestor has demonstrated good cause. Absent a provisional grant by the commission, an operator may continue to offer sports wagering on sporting events that are the subject of a request during the pendency of the consideration of the applicable request.

(c) The department of state police shall have primary responsibility for conducting, or assisting the commission in conducting, investigations into abnormal betting activity, match fixing and other conduct that corrupts a betting outcome of a sporting event for purposes of financial gain.

(d) The commission and operators shall use commercially reasonable efforts to cooperate with investigations conducted by sports governing bodies or law enforcement agencies including, but not limited to, using commercially reasonable efforts to provide or facilitate the provision of anonymized account-level betting information and audio or video files relating to persons placing wagers. All disclosures under this section are subject to the obligation of an 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.

(e) An operator shall immediately report to the commission any information relating to:

(i) criminal or disciplinary proceedings commenced against the operator in connection with its operations;

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

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

(iv) any prohibited conduct including, but not limited to, match fixing; or

(v) suspicious or illegal wagering activities including, but not limited to: (A) use of funds derived from illegal activity; (B) wagers to conceal or launder funds derived from illegal activity;               (C) use of agents to place wagers; and (D) use of false identification.

An operator shall immediately report information relating to conduct described in clauses (ii), (iii) and (iv) of this subsection to the relevant sports governing body.

(f) The commission and operators shall maintain the confidentiality of information provided by a sports governing body for purposes of investigating or preventing the conduct described in clauses (ii), (iii) and (iv) of subsection (e), unless disclosure is required by this chapter, the commission, other law or court order or unless the sports governing body consents to disclosure.

(g) With respect to any information provided by an operator to a sports governing body relating to conduct described in clauses (ii), (iii) and (iv) of subsection (e), a sports governing body shall:

(i) only use such information for integrity purposes and shall not use the information for any commercial or other purpose; and

(ii) maintain the confidentiality of such information, unless disclosure is required by this chapter, the commission, other law, court order or a collective bargaining agreement with a players association or unless the operator consents to disclosure; provided, however, that the sports governing body may make any disclosure necessary to conduct and resolve integrity-related investigations and may publicly disclose such information if required by its integrity policies or if deemed by the sports governing body in its reasonable judgment to be necessary to maintain the actual or perceived integrity of its sporting events, and subject in all cases to the sports governing body’s compliance with federal, state and local laws and regulations including, but not limited to, laws and regulations relating to privacy and personally identifiable information; and provided further, that prior to any such public disclosure that would identify the operator by name, the sports governing body shall provide the operator with notice of such disclosure and an opportunity to object to such disclosure.

(h) An operator shall maintain records of all wagers placed by its patrons, including: (i) personally identifiable information of a patron who places a sports wager through a mobile application or other digital platform or a patron who places an in-person sports wager that exceeds an amount determined by the commission; (ii) amount and type of the bet; (iii) the time the bet was placed; (iv) the location of the bet, including the Internet Protocol address if applicable; (v) the outcome of the bet; and (vi) 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. An operator shall make these records available for inspection upon request of the commission or as required by court order.

(i) An operator shall use commercially reasonable efforts to maintain, in real time and at the account level, anonymized information for each patron, including: (i) the amount and type of bet; (ii) the time the bet was placed; (iii) the location of the bet, including the internet protocol address if applicable; (iv) the outcome of the bet; and (v) records of abnormal betting activity. The commission may request the information in the form and manner as it requires. Nothing in this section shall require an 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.

(j) If a sports governing body has notified the commission and demonstrated a need for access to the information described in subsection (i) for wagers placed on sporting events of the sports governing body for integrity monitoring purposes and demonstrated the capability to use the data for the purpose of effectively monitoring the integrity of sporting events of the sports governing body, an operator shall share, in a commercially reasonable frequency, form and manner, with the sports governing body or its designee the same information the operator is required to maintain pursuant to said subsection (i) with respect to sports wagers on sporting events of the sports governing body. A sports governing body and its designee shall only use information received pursuant to this section for integrity-monitoring purposes and shall not use information received pursuant to this section for any commercial or other purpose. Nothing in this section shall require an operator to provide any information that is prohibited by federal, state or local law or regulation including, but not limited to, laws and regulations relating to privacy and personally identifiable information.

(k)(1) An operator shall conduct a background check on each prospective employee. Background checks shall search for criminal history, charges or convictions involving corruption or manipulation of sporting events and association with organized crime.

(2) An operator shall conduct a single background check on any employee hired before the operator was issued an operator license. Background checks shall search for criminal history, charges or convictions involving corruption or manipulation of sporting events and association with organized crime.

Section 11. An operator shall:

(i) 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; provided, however, that system requirements and specifications shall be developed according to industry standards and implemented by the commission as part of the minimum internal control standards;

(ii) promptly report to the commission any facts or circumstances related to the operation of a sports wagering license that constitute a violation of state or federal law and promptly report to the appropriate state or federal authorities any suspicious betting over a threshold set by the operator that has been approved by the commission;

(iii) 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;

(iv) keep current in all payments and obligations to the commission;

(v) prevent any person from tampering or interfering with the operation of any sports wagering;

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

(vii) maintain sufficient cash and other supplies to conduct sports wagering at all times;

(viii) maintain daily records showing the gross sports wagering receipts and adjusted gross sports wagering receipts of the operator from sports wagering;

(ix) timely file with the commission any additional reports required by this chapter or by any rule or regulation; and

(x) use commercially reasonable efforts to prevent a person under 21 years old from placing a wager.

Section 12. (a) An operator may accept wagers on sporting events in person at a facility approved by the commission.

(b) An operator may accept wagers on sporting events from individuals physically located within the commonwealth using mobile applications or digital platforms approved by the commission through the patron’s sports wagering account. The branding for each mobile application or digital platform shall be determined by the operator. A bet authorized pursuant to this section shall be initiated, received and otherwise made within the commonwealth. Consistent with the federal Unlawful Internet Gambling Enforcement Act of 2006, 31 U.S.C. 5361, et seq., the intermediate routing of electronic data related to a lawful intrastate wager authorized pursuant to this chapter shall not determine the location or locations in which the wager is initiated, received or otherwise made.

(c) An operator may: (i) accept wagers placed by other operators; and (ii) place wagers with other operators; provided, however, that any operator that places a wager with another operator shall inform the operator accepting the wager that the wager is being placed by an operator and shall disclose the operator’s identity.

(d) An operator shall not accept: (i) a wager from a person who is less than 21 years of age; or (ii) a credit card or payment through a third-party payment method providing funds through the use of a credit card for the purpose of placing a sports wager or depositing credit into the person’s account; provided, however, that this clause shall not exclude the use of debit cards.

(e)(1) The commission may establish a list of persons who are to be excluded from the play or operation of any sports wagering in a manner and to an extent that is consistent with the process for establishing a list of excluded persons under section 45 of chapter 23K. A list of all excluded persons shall be kept by the commission and provided to each operator. A person on the exclusion list shall not be permitted to participate in sports wagering pursuant to this chapter.

(2) The commission shall establish a list of self-excluded persons from sports wagering. A person may request that their name be placed on the list of self-excluded persons by filing a statement with the commission acknowledging that they are a problem gambler and by agreeing that, during any period of voluntary exclusion, they shall not collect any winnings or recover any losses resulting from any sports wagering or from any gaming activity at a gaming establishment, as defined in section 2 of chapter 23K; provided, however, that any person that is on the list of self-excluded persons from gaming establishments required in section 45 of said chapter 23K shall be included on the list of self-excluded persons from sports wagering, subject to the rules and regulations of the commission. The commission shall adopt regulations for the self-excluded persons list including procedures for placement, removal and transmittal of the list to operators; provided, however, that the list may include substantially similar rules, requirements or procedures promulgated pursuant to said section 45 of said chapter 23K. The commission may revoke, limit, condition, suspend or fine an 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. The list of self-excluded persons from sports wagering shall not be open to public inspection.

(3) An operator that operates sports wagering through a mobile application or other digital platform shall require patrons to set self-imposed limitations on sports wagering when the patron joins the mobile application or digital platform. The commission shall establish the limitations, which may include, but shall not be 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 on the mobile application or digital platform; (iii) the ability to self-block from a particular game or game types; and (iv) setting a self-imposed time-out. Notwithstanding the forgoing, when a patron's lifetime deposits exceed $2,500, the operator shall prevent any further sports wagering until: (A) the patron acknowledges that the patron has met the deposit threshold; (B) the patron is given the opportunity to establish self-imposed limitations on sports wagering or to close the account; and (C) the patron has received problem gaming resources from the operator. Once a patron has reached the $2,500 lifetime deposit threshold, the patron shall annually make the acknowledgement required by in clause (A).

(f) An employee shall not place a sports wager at any facility or through any mobile application or digital platform owned or operated by the employee’s employer.

(g) Sections 24, 24A and 27 of chapter 10 shall not apply to an operator conducting sports wagering in accordance with this chapter.

Section 13. (a) An excise is hereby imposed upon sports wagering operators in the commonwealth at the rate of: (i) 20 per cent of an operator’s adjusted gross sports wagering receipts from the operation of in-person sports wagering; (ii) 35 per cent of an operator’s adjusted gross sports wagering receipts from the operation of sports wagering through a mobile application or other digital platform approved by the commission; and (iii) 35 per cent of the adjusted gross fantasy wagering receipts of a person or entity that offers fantasy contests, as defined in section 11M½ of chapter 12; provided, however, that the cash method of accounting shall be used for purposes of calculating the amount of the tax owed by the operator. The excise shall be paid to the commission at the time provided for filing the return pursuant to subsection (b).

(b)(1) The excise imposed and collected pursuant to subsection (a) shall be due and payable to the commission in monthly installments on or before the fifteenth calendar day following the calendar month in which the adjusted gross sports wagering receipts or adjusted gross fantasy wagering receipts were received.

(2) On or before the fifteenth calendar day of each month, the operator shall complete and submit the return for the preceding month by electronic communication to the commission in a 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) the total gross fantasy wagering receipts and adjusted gross fantasy wagering receipts from the offering of fantasy contests, as defined in section 11M½ of chapter 12, during that month;

(iii) the tax amount for which an operator or a person or entity that offers fantasy contests, as defined in said section 11M½ of said chapter 12, is liable; and

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

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

(d) Annually, not later than July 1, the commission shall publish on its website a report stating the amount in fees, surcharges and civil penalties received from operators and taxes received from operators and from people or entities that offer fantasy contests, as defined in section 11M½ of chapter 12.

Section 14. (a) There shall be established and set up on the books of the commonwealth a separate fund to be known as the Sports Wagering Control Fund. The commission shall be the trustee of the fund and shall expend money to finance operational activities of the commission pertaining to sports wagering. The fund shall be credited with: (i) any appropriation, bond proceeds or other monies authorized by the general court and specifically designated to be credited thereto; (ii) the proceeds of any fees collected pursuant to this section unless otherwise specified; (iii) fees collected pursuant to sections 6 and 7; and (iv) such additional funds as are subject to the direction and control of the commission. All available money in the fund that are unexpended at the end of each fiscal year shall not revert to the General Fund and shall be available for expenditure in the subsequent fiscal year.

(b) The commission shall establish fees for any investigation into a violation of this chapter or regulation promulgated hereunder by a sports wagering operator to be paid by the sports wagering operator including, but not limited to, billable hours by commission staff involved in the investigation and the costs of services, equipment or other expenses that are incurred by the commission during the investigation.

(c) Any remaining costs of the commission necessary to maintain regulatory control over sports wagering operator that are not covered by: (i) the fees set forth in subsection (b); (ii) any other fees assessed pursuant to this chapter; or (iii) any other designated sources of funding, shall be annually assessed on sports wagering operator pursuant to this chapter in proportion to each operator’s share of the commonwealth’s total adjusted gross sports wagering receipts. Each operator shall pay the amount assessed against the operator not more than 30 days after the date of the notice of assessment from the commission.

(d) If the fees collected pursuant to subsections (b) and (c) exceed the cost required to maintain regulatory control, the surplus funds shall be credited in proportional shares against each sports wagering operator’s next assessment.

(e) The commission shall annually assess and collect a $1,000,000 fee collected from among all operators divided in a manner to be determined by the commission. The fee collected pursuant to this subsection shall be deposited into the Public Health Trust Fund established in section 58 of chapter 23K and shall be used for the costs of services and public health programs provided for in said section 58 of said chapter 23K.

Section 15. (a) The commission may assess a civil administrative penalty on an operator who fails to comply with any provision of this chapter, house rules or any regulation or order adopted by the commission; provided, however, that the noncompliance shall have occurred after the commission has given such operator written notice of the noncompliance and the time stated in the notice for coming into compliance has elapsed; provided further, that the commission may assess a penalty without providing written notice if the failure to comply: (i) was part of a pattern of noncompliance and not an isolated instance; (ii) was willful or neglectful and not the result of error; (iii) resulted in a significant breach to the integrity of the operator or the sports wagering laws of the commonwealth; or (iv) consisted of failure to promptly report to the commission any knowledge of evidence or circumstances that would cause a reasonable person to believe that a violation of this chapter had been committed. The civil administrative penalty shall be in addition to any other civil penalty that may be prescribed by law.

(b) For the purpose of determining whether such noncompliance was part of a pattern of noncompliance and not an isolated instance, the commission shall consider, but not be limited to: (i) whether the commission had previously notified the operator of such noncompliance on more than 1 occasion during the previous month or of any noncompliance with the same provision of a law, regulation, order, license or approval as the current noncompliance during the previous 6–month period; or (ii) whether the current and previous instances of noncompliance, considered together, indicate a potential threat to the integrity of the operator and sports wagering in the commonwealth or an interference with the commission's ability to efficiently and effectively regulate sports wagering in the commonwealth and enforce any regulation, license or order. If an operator that has received a notice of noncompliance fails to come into compliance within the time period stated in the notice, the civil administrative penalty may be assessed by the commission upon the operator from the date of receipt of such notice.

(c) If the commission seeks to assess a civil administrative penalty on an operator, the commission shall cause to be served upon the operator, by service in hand or by certified mail, return receipt requested, a written notice of its intent to assess a civil administrative penalty that shall include: (i) a concise statement of the alleged act or omission for which such civil administrative penalty is sought to be assessed; (ii) each law, regulation, order, license or approval that has not been complied with as a result of such alleged act or omission; (iii) the amount that the commission seeks to assess as a civil administrative penalty for each alleged act or omission; (iv) a statement of the operator’s right to an adjudicatory hearing on the proposed assessment; (v) the requirements the operator shall comply with to avoid being deemed to have waived the right to an adjudicatory hearing; and (vi) the manner of payment thereof if the operator elects to pay the penalty and waive an adjudicatory hearing. After written notice of noncompliance or intent to assess a civil administrative penalty has been given, each day thereafter during which noncompliance occurs or continues shall constitute a separate offense and shall be subject to a separate civil administrative penalty if reasonable efforts have not been made by the operator to promptly come into compliance.

(d) If the commission seeks to assess a civil administrative penalty on an operator, the operator shall have the right to an adjudicatory hearing under chapter 30A, the provisions of which shall apply except when they are inconsistent with the provisions of this chapter.

(e) An operator shall be deemed to have waived its right to an adjudicatory hearing unless, not more than 21 days after the date of the commission’s notice that the commission seeks to assess a civil administrative penalty, the operator files with the commission a written statement denying the occurrence of any of the acts or omissions alleged by the commission in the notice or asserting that the amount of the proposed civil administrative penalty is excessive. In an adjudicatory hearing authorized under chapter 30A, the commission shall be required to prove, by a preponderance of the evidence, the occurrence of each act or omission alleged by the commission in the notice.

(f) If an operator waives the right to an adjudicatory hearing, the proposed civil administrative penalty shall be final immediately upon such waiver. If a civil administrative penalty is assessed at the conclusion of an adjudicatory hearing, the civil administrative penalty shall be final upon the expiration of 30 days unless an action for judicial review of the decision is commenced under chapter 30A.

(g) An operator who institutes proceedings for judicial review of the final assessment of a civil administrative penalty shall place the full amount of the final assessment in an interest-bearing escrow account in the custody of the clerk or magistrate of the reviewing court. The establishment of an interest-bearing escrow account shall be a condition precedent to the jurisdiction of the reviewing court unless the party seeking judicial review demonstrates, in a preliminary hearing held not more than 20 days after the filing of the complaint, the presence of a substantial question for review by the court or the operator’s inability to pay. Upon such a demonstration, the court may grant an extension or waiver of the interest-bearing escrow account requirement or may require, in lieu of such interest-bearing escrow account, the posting of a bond payable directly to the commonwealth in the amount of 125 per cent of the assessed penalty.

If, after judicial review, in a case where the escrow account requirement has been waived, and in cases where a bond has been posted in lieu of such requirement, the court affirms, in whole or in part, the assessment of a civil administrative penalty, the commission shall be paid the amount thereof together with interest at the rate provided in section 6C of chapter 231. If, after judicial review in a case where an interest-bearing escrow account has been established, the court affirms the assessment of such penalty, in whole or in part, the commission shall be paid the amount thereof together with the accumulated interest in the interest-bearing escrow account. If the court sets aside the assessment of a civil administrative penalty in a case where the amount of such penalty has been deposited in an interest-bearing escrow account, the operator on whom the civil administrative penalty was assessed shall be repaid the amount so set aside, together with the accumulated interest thereon.

(h) Each operator who fails to timely pay a civil administrative penalty and each operator who issues a bond under this section and fails to timely pay to the commission the amount required for the bond, shall be liable to the commonwealth for up to 3 times the amount of the civil administrative penalty, together with costs, plus interest accrued from the time the civil administrative penalty became final and attorneys’ fees, including all costs and attorneys fees incurred directly in the collection of the penalty. The rate of interest shall be the rate provided in section 6C of chapter 231. The commission may require that the amount of a civil administrative penalty imposed under this section exceed any economic benefit realized by a person.

(i) The commission may impose conditions on, suspend or revoke an operator’s license or reprimand or assess a fine on an operator upon a finding that the operator: (i) has committed a criminal or civil offense under this chapter or under any other law; (ii) is not in compliance with sports wagering regulations promulgated pursuant to this chapter; (iii) is under criminal investigation in another jurisdiction; (iv) has breached a condition of licensure; (v) has affiliates, close associates or employees that are not qualified or licensed under this chapter with whom the operator continues to conduct business or employ; (vi) is no longer capable of maintaining operations as a sports wagering operator; or (vii) whose business practice, upon a determination by the commission, is injurious to the policy objectives of this chapter.

Section 16. (a) A person, other than an operator under this chapter, who engages in accepting, facilitating or operating a sports wagering operation shall be punished by imprisonment in the house of correction for not more than 90 days or by a fine not to exceed $10,000 or both such fine and imprisonment.

(b) A person convicted of a second violation of subsection (a) shall be punished by imprisonment in the house of correction for not more than 6 months or by a fine of not more than $50,000 or both such fine and imprisonment.

(c) A person convicted of a third or subsequent violation of subsection (a) shall be punished by imprisonment in the state prison for not more than 5 years or by a fine of not more than $100,000 or both such fine and imprisonment.

Section 17. An operator shall 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 that the employee reasonably believes constitutes a violation of this chapter.

Section 18. (a) Prior to disbursement of cash or a prize in excess of $5,000, an operator shall review information made available by the IV–D agency, as set forth in chapter 119A and by the department of revenue to determine if the winner of the cash or prize owes any past-due: (i) child support to the commonwealth or to an individual to whom the IV–D agency is providing services; or (ii) tax liability to the commonwealth.

(b)(1) If an operator determines that the winner of the cash or prize owes past-due child support or past-due tax liability, the operator shall notify the IV–D agency or the commonwealth, as applicable, of the winner’s name, address and social security number.

(2) Subsequent to statutory state and federal tax withholding, the operator shall first disburse to the IV–D agency the full amount of the cash or prize or such portion of the cash or prize that satisfies the winner's past-due child support obligation.

(3) If funds remain available after the disbursement to the IV–D agency or if no such obligation to the IV–D agency is owed, the operator shall disburse to the department of revenue the full amount of the cash or prize or such portion of the cash prize that satisfies the winner’s past-due tax liability.

(4) The operator shall disburse to the winner only that portion of the prize, if any, remaining after the holder's past-due child support obligation and the winner’s past-due tax liability have been satisfied.

Section 19. (a) Annually, not later than February 28, each operator shall submit a report to the commission that shall include: (i) the total amount of sports wagers received; (ii) the total amount of winning wagers and prizes awarded to consumers; (iii) the total amount of sports wagering gross revenue received by the operator; (iv) the total amount of sports wagers received on each sporting event; (v) the total number of accounts held by consumers; (vi) the total number of new accounts established in the preceding year, as well as the total number of accounts permanently closed in the preceding year; (vii) the total number of consumers that requested to exclude themselves in a prior year who participated in sports wagering; (viii) the total dollar amounts that the operator contracted for and paid to minority business enterprises, women business enterprises and veteran business enterprises, as defined in section 58 of chapter 7, in: (A) design contracts; (B) construction contracts; and (C) contracts for every good and service procured by the operator; provided, however, that the report shall also identify the amounts so contracted as a percentage of the total dollar amounts contracted for and actually paid to all businesses by the operator; (ix) any diversity, equity and inclusion initiatives the operator has implemented to support and encourage hiring and employment opportunities; and (x) any additional information that the commission deems necessary.  The commission shall publish the reports on its website after redacting any confidential or proprietary business information and any personal information as required by law.

Section 20. Nothing in this chapter shall authorize any person or entity that offers fantasy contests for a cash prize to members of the public pursuant to and in accordance with regulations promulgated by the attorney general to conduct sports wagering unless the person or entity separately qualifies for and obtains an operator license under this chapter.

Section 21.  (a) The commission 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; provided, however, that the objectives of the sports wagering research agenda shall, to the extent practicable, be substantially similar to the objectives of the research agenda established under section 71 of said chapter 23K. The sports wagering research agenda shall also include, but not be limited to: (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) Annually, the commission shall make scientifically-based recommendations that reflect the results of the research under clause (a) to the clerks of the senate and house of representatives, the senate and house committees on ways and means, the joint committee on economic development and emerging technologies, the joint committee on mental health, substance use and recovery 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 wagering. The recommendations shall be posted on the commission’s website.

Section 22. Notwithstanding any general or special law to the contrary, a federally recognized Indian tribe that has entered into a compact with the commonwealth in accordance with the Indian Gaming Regulatory Act and section 91 of chapter 194 of the acts of 2011 may conduct sports wagering in the same manner and to the same extent as a person with a category 1 license; provided, however, that sports wagering conducted by such an Indian tribe through a mobile application or other digital platform shall be governed as a form of internet gaming as defined in the existing compact.

Section 23. Notwithstanding any general or special law or rule or regulation to the contrary, an operator shall supply the commission with customer tracking data collected or generated by loyalty programs, player tracking software, player card systems, online gambling or sports wagering transactions or any other information system. The commission shall contract with an experienced nonprofit research entity to develop an anonymizing system that automatically removes from the data personally identifying information, including consumer name, street address, bank or credit information and the last 4 digits of a player’s zip code, in compliance with section 2 of chapter 93H. The data shall retain information on consumer characteristics including, but not limited to, gender, age and region of residence, consumer behavior including, but not limited to, frequency of play, length of play, speed of play, denomination of play, amounts wagered. The commission shall convey the anonymized data to a research facility which shall make the data available to qualified researchers for the purposes of: (1) conducting analyses that improve understanding of how gambling addiction develops and progresses; (2) developing evidence-based harm minimization strategies; and (3) developing evidence-based systems to monitor, detect and intervene in high-risk gambling. The commission shall request reports on researcher analyses of the behavioral data, which may provide informed recommendations to the general court relative to more effective regulation of gambling operations. The commission may directly initiate studies assessing the effectiveness of any specific measures, programs or interventions which the commonwealth has implemented in gaming operations and which might be illuminated through the behavioral data in question. Any researcher report received by the commission under this section shall be posted on the commission’s website.

Section 24. Annually, not later than February 28, each operator shall prepare and submit a report on the demographic data of new employees hired in the preceding calendar year. The report shall include, but not be limited to: (i) a breakdown of new employees hired, by race, ethnicity and gender; (ii) the retention rate of minority employees; (iii) any perceived barriers or challenges to hiring minority employees; (iv) any diversity, equity and inclusion initiatives that the operator has implemented to support and encourage the hiring and retention of minority employees; and (v) any additional information that the commission deems necessary. The report shall be submitted to the commission and filed with the clerks of the senate and house of representatives, the house and senate committees on ways and means and the joint committee on economic development and emerging technologies.

SECTION 9. Chapter 128C of the General Laws is hereby amended by adding the following section:-

Section 9. Notwithstanding sections 1 to 8, inclusive, or any other general or special law to the contrary, no racing meeting licensee, including licensees holding racing meetings in connection with a state or county fair as defined in section 1 of chapter 128A, shall simulcast or accept a simulcast wager on greyhound dog racing.

SECTION 10. Section 1 of chapter 137 of the General Laws, as appearing in the 2020 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 11. 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 12. 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 13. 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 14. 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 15. 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 16. 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 17. 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 chapter 23N.

SECTION 18. 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 19. Section 8 of said chapter 271, as so appearing, is hereby amended by striking out, in lines 10 and 11, the words “of chance that is not being conducted in a gaming establishment licensed under chapter 23K” and inserting in place thereof the following words:- that is not being conducted pursuant to chapter 23K or any other sports wagering that is not being conducted pursuant to chapter 23N.

SECTION 20. Section 17 of said chapter 271, as so appearing, is hereby amended by inserting after the figure “23K”, in line 27, the following words:- or for the purpose of sports wagering conducted in accordance with chapter 23N.

SECTION 21. Said chapter 271 is hereby further amended by striking out section 17A, as so appearing, and inserting in place thereof the following section:-

Section 17A. Except as authorized under chapter 23N, whoever uses a telephone, internet or other communications technology or whoever being the occupant in control of premises where a telephone, internet or other communications technology is located or whoever is a subscriber for such communications technology, knowingly permits another to use a telephone, internet or other communications technology so located or for which such person subscribes, as the case may be, for the purpose of accepting wagers or bets, or for the buying or selling of pools, or for placing all or any portion of a wager with another, upon the result of a trial or contest of skill, speed or endurance of man, beast, bird or machine or upon the result of an athletic game or contest or upon the lottery called the numbers game or for the purpose of reporting the same to a headquarters or booking office or who under another name or otherwise falsely or fictitiously procures telephone, internet or other communications technology service for oneself or another for such purposes shall be punished by a fine of not more than $2,000 or by imprisonment for not more than 1 year.

SECTION 22. Section 19 of said chapter 271, as so appearing, is hereby amended by inserting after the figure “23K”, in line 19, the following words:- and shall not apply to advertising of sports wagering conducted pursuant to chapter 23N.

SECTION 23. Section 20 of said chapter 271, as so appearing, is hereby amended by adding 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 24. Section 23 of said chapter 271, as so appearing, is hereby amended by inserting after the figure “23K”, in line 31, the following words:- and shall not apply to sports wagering conducted pursuant to chapter 23N.

SECTION 25. 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 this section shall not apply to sports wagering conducting pursuant to chapter 23N.

SECTION 26. 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 this section shall not apply to sports wagering conducted pursuant to chapter 23N.

SECTION 27. 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 this section shall not apply to sports wagering conducted pursuant to chapter 23N.

SECTION 28. Section 135 of chapter 219 of the acts of 2016 is hereby repealed.

SECTION 29. Notwithstanding any general or special law to the contrary, a person shall not operate sports wagering through a mobile application or other digital platform under chapter 23N of the General Laws until the Massachusetts gaming commission completes an initial competitive application process pursuant to paragraph (2) of subsection (a) of section 5 of said chapter 23N; provided, however, that the initial competitive application process shall be complete upon the issuance of a category 2 license or upon the certification from the commission  that none of the applications were accepted; provided further, that any such certification shall be posted on the commission’s website.

SECTION 30. The Massachusetts gaming commission, in consultation and cooperation with the trial court of the commonwealth, shall report on court activity related to illegal gaming, as defined in section 7 of chapter 4 of the General Laws, based on actions that constitute sports wagering as defined in section 2 of chapter 23N of the General Laws, as reasonably practicable, but for a period of not less than 10 years prior to the effective date of this act. The report shall include, but not be limited to: (i) the incarceration rates of those convicted of illegal gaming based on actions that constitute sports wagering; (ii) fines assessed to individuals found guilty of illegal gaming based on actions that constitute sports wagering; (iii) the number of indictments and arrests related to illegal gaming based on actions that constitute sports wagering; and (iv) where possible, a demographic breakdown including, but not limited to, the income, race, ethnicity and gender of individuals who are or have been incarcerated, fined, indicted or arrested for activity related to illegal gaming based on actions that constitute sports wagering. Personally identifiable information shall be redacted from the report. The report shall be submitted to the clerks of the senate and house of representatives, the senate and house committees on ways and means and the joint committee on the judiciary not later than August 31, 2023.

SECTION 31. The Massachusetts gaming commission shall conduct a study on the participation by minority business enterprises, women business enterprises and veteran business enterprises in the sports wagering industry in the commonwealth. The study shall include, but not be limited to, an analysis of: (i) participation in activities related to the regulation, licensing and promotion of sports wagering operators; (ii) the level of participation of women, minority and veteran employees working for sports wagering licensees and employers; (iii) the level of participation by minority-owned and women-owned businesses that contract with or provide services to sports wagering licensees and employers; (iv) any barriers to employment of women and minorities in the sports wagering industry; and (v) methods for increasing racial and gender diversity in the workforce in the sports wagering industry, including whether to set reasonable and appropriate goals and procedures for increasing the number of minority business enterprises providing sports wagering industry-related services to sports wagering licensees and employers. The commission shall report on its findings and submit any recommendations to the clerks of the senate and house of representatives, the house and senate committees on ways and means, the joint committee on racial equity, civil rights, and inclusion and the joint committee on economic development and emerging technologies not later than December 31, 2022.

SECTION 32. Section 6 shall take effect on January 1, 2025.

SECTION 33. Section 7 shall take effect on January 1, 2027.