AN ACT REGULATING SPORTS WAGERING
Whereas, The deferred operation of this act would tend to defeat its purpose, which is forthwith to provide for economic investments and job creation associated with sports wagering in the commonwealth, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
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 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; (vi) charitable gaming conducted under said chapter 271; and (vii) a fantasy contest conducted under section 11M½.
SECTION 2. Section 7 of chapter 4 of the General Laws is hereby amended by striking out clause Tenth, as inserted by section 1, 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; (v) a game of bingo conducted under chapter 271; and (vi) charitable gaming conducted under said chapter 271.
SECTION 3. 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 pursuant to and in accordance with regulations promulgated by the attorney general; provided further, for the purposes of section 7 of chapter 4, a fantasy contest shall not be considered illegal gaming. “Fantasy contest” includes any fantasy or simulated game or contest, including, but not limited to, any fantasy or simulated game or contest based on professional sports events 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 reflect the relative knowledge and skill of the participants and shall be determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and (iii) no winning outcome is based on the score, point spread, or any performance or performances of any single actual team or combination of such teams or solely on any single performance of an individual athlete or player in any single actual event.
SECTION 4. Section 4 of chapter 23K of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by inserting the following subsection:-
(42) regulate and enforce chapter 23N relating to sports wagering.
SECTION 5. 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 shall be lawful when conducted in accordance with 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 fantasy wagering receipts”, the total gross receipts from fantasy contests as defined in section 11M1/2 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 the sum of: (i) the total of all winnings paid to participants; and (ii) all excise taxes paid pursuant to federal law; 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.
“Breaks”, the odd cents over any multiple of 10 cents of winnings per $1 wagered.
“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 2 individually-branded mobile applications or other digital platforms approved by the commission; provided, that the mobile applications or other digital platforms shall be qualified for and issued a category 3 license.
“Category 2 license”, a license issued by the commission that permits the operation of sports wagering in-person on the premises where either: (1) live horse racing is conducted in accordance with chapter 128A or (2) the licensee is authorized by law to conduct simulcast wagering on horse or greyhound racing, and through not more than 1 individually branded mobile application or other digital platform approved by the commission; provided, that the mobile applications or other digital platforms shall be qualified for and issued a category 3 license; provided further, that the commission may issue a category 2 license to: (1) a person or entity licensed by the commission in accordance with said chapter 128A to conduct a live horse racing meeting, (2) a running horse racing licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law, or (3) a greyhound meeting licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law; provided further, a category 2 licensee shall make a capital investment of not less than $7,500,000 within 3 years after receiving a sports wagering license.
“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.
“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 a gaming establishment or business licensed under this chapter.
“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.
“Collegiate tournament”, a series of collegiate sports or athletic events involving four or more collegiate teams that make up a single unit of competition.
“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”, any governmental unit of a national, state or local body exercising governmental functions, except the United States government.
“License”, any license applied for or issued by the commission 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 duties directly related to the operation of sports wagering in the commonwealth in a supervisory role.
“Official league data”, statistics, results, outcomes and other data relating to a sporting event that is obtained pursuant to an agreement with the relevant sports governing body, or with an entity expressly authorized by the relevant sports governing body to provide such data to sports wagering operators, which authorizes the use of such data for determining the outcome of tier 2 sports wagers on such sporting event.
“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.
“Operator license”, a category 1 license, category 2 license or category 3 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 such 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.
“Qualified gaming entity”, an entity that: (i) holds a gaming license as defined in section 2 of chapter 23K; (ii) (a) is licensed by the commission in accordance with chapter 128A to conduct a live horse racing meeting, (b) is a running horse racing licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law or (c) is a greyhound meeting licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law; or (iii) offers an interactive sports wagering platform through a mobile application or other digital platform.
“Sports event” or “sporting event”, a professional sport or athletic event, collegiate sport or athletic event, a collegiate tournament, motor race event, electronic sports event or other event authorized by the commission under this chapter; provided, however, that “sporting event” shall not include: (i) high school and youth sports or athletic events; or (ii) a collegiate sport or athletic event involving 1 or more collegiate teams from the commonwealth unless they are involved in a collegiate tournament.
“Sports governing body”, an organization that is headquartered in the United States and prescribes final rules and enforces codes of conduct with respect to a sporting event and participants therein; provided, however, that, notwithstanding the foregoing, the commission shall adopt regulations to determine the governing body for electronic sports for the purposes of this chapter.
“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, other 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, mobile applications and other digital platforms; provided, that sports wagering shall not include the acceptance of any wager: (i) with an outcome dependent on the performance of an individual athlete in any collegiate sport or athletic event, including, but not limited, to in-game or in-play wagers; (ii) on a high school or youth sporting event; (iii) 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 shall include, but shall 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.
“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.
“Tier 1 sports 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.
“Tier 2 sports wager”, a sports wager that is not a tier 1 sports wager.
“Wager”, a sum of money or thing of value risked on an uncertain occurrence.
Section 4. (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. The commission may promulgate emergency rules and regulations in accordance with applicable procedures for the promulgation of emergency rules and regulations.
(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; and (ii) the following advertising, marketing and branding activities: (A) advertisements, marketing and branding in such a manner that it is deceptive, false, misleading, or untrue, or tends to deceive or create a misleading impression whether directly, or by ambiguity or omission; (B) use of unsolicited pop-up advertisements on the internet or by text message directed to an individual on the list of self-excluded persons established pursuant to paragraph (2) of subsection (e) of section 13; (C) any form of advertising, marketing or branding that the commission deems unacceptable or disruptive to the viewer experience at a sports event; (D) advertising, marketing and branding deemed to appeal directly to a person younger than 21 years old; and (E) advertising on any billboards, or any other public signage, which fails to comply with any federal, state or local law.
(d)(1) The commission may promulgate rules and regulations including, but not limited to, those governing the acceptance of wagers on a sports event, other event or a series of sports events; 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; and 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 gaming 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 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 under this chapter.
(g) 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 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 to effectuate this chapter and the rules and regulations of the commission.
Section 5. (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 such previous national criminal records check. Any applicant convicted of any disqualifying offense, as determined by the commission, shall not be licensed.
(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 6. (a) A licensed qualified gaming entity may operate sports wagering upon the approval of the commission.
(b)(1) The commission shall issue a category 1 license to any 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; provided, however, that any holder of a category 1 license shall not be issued a category 2 license.
(2) The commission shall issue a category 2 license to: (i) any holder of a license to conduct a live horse racing meeting in accordance with chapter 128A; (ii) a running horse racing licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law; or (iii) a greyhound meeting licensee that conducted simulcast wagering as of December 31, 2020 as authorized by law; that meets the requirements of this chapter and the rules and regulations of the commission; provided, however, that any holder of a category 2 license shall not be issued a category 1 license; and provided further, that no more than 1 category 2 license shall be issued to any 1 person, entity, or affiliate or close associate of such person or entity.
(3) The commission may issue a category 3 license to any entity that offers sports wagering through a mobile application or other digital platform that meets the requirements of this chapter and the rules and regulations of the commission; provided, however, the commission shall issue no more than 7 category 3 licenses that are not connected to a category 1 or category 2 license.
(4) A category 1 or category 2 licensee may enter into agreements related to mobile or digital sports wagering with a category 3 licensee pursuant to the approval of the commission. Nothing in this chapter shall require a category 3 licensee to partner with or have any commercial relationship with a category 1 or 2 licensee.
(c)(1) A qualified gaming entity may submit to the commission a request for a temporary license for the immediate commencement of sports wagering operations. Such request shall include an initial licensing fee of $1,000,000 payable to the commission.
(2) Upon receiving a request for a temporary license, the executive director of the commission shall review the request. If the executive director determines that the entity requesting the temporary license is a qualified gaming entity and has paid the sports wagering initial licensing fee pursuant to paragraph (1), the commission shall authorize the qualified gaming entity to conduct sports wagering for a period of 1 year under a temporary license or until a final determination on its operator license application is made.
(3) All sports wagering conducted under authority of a temporary license shall comply with the house rules adopted under section 10.
(d) 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, 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.
(e) 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 affiliate, close associate, financial resources or any person required to be qualified by the commission; (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.
(f) Upon application by a qualified gaming entity that is not denied pursuant to subsection (e) and payment of a $5,000,000 licensing fee, the commission shall grant an operator license to a qualified gaming entity that provides the right to conduct sports wagering; provided, that the qualified gaming entity shall meet the requirements for licensure under this chapter and the rules and regulations of the commission. Such license shall be issued for a 5-year period, and may be renewed for 5-year periods upon payment of a $5,000,000 renewal fee; provided, that the operator shall continue to meet all requirements under this chapter and the rules and regulations of the commission. The commission shall credit any initial licensing fee paid pursuant to paragraph (1) of subsection (c) to a successful applicant for an operator license against the licensing fee due under this subsection.
(g) 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. An operator shall submit required documentation or information no later than 5 years after issuance of its operator license and every 5 years thereafter, or within lesser periods based on circumstances specified by the commission.
(h) No licensee shall transfer an operator license, or any direct or indirect interest in the license, without the majority approval of the commission. A person seeking to acquire such 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 and may reject a proposed transfer that, in the determination of the commission, would be injurious to the interests of the commonwealth. The commission may promulgate regulations governing this process which may include assessment of a fee to reflect the cost associated with reviewing the proposed transfer.
(i) Applications for operator licenses shall be public records under 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 under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure under said section 10 of said chapter 66.
Section 7. (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 8. (a) All persons employed by an operator to perform duties directly related to the operation of sports wagering in the commonwealth in a supervisory role 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 authorizes 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) An applicant for an occupational license shall submit any required application forms established by the commission and shall pay a nonrefundable application fee of $100. An employer may pay an application fee on behalf of an applicant.
(d) 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.
Section 9. (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 10. (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 11. (a) An operator shall employ commercially reasonable methods to: (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) 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 commission shall designate a state law enforcement entity to 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 other conduct that corrupts a betting outcome of a sporting event for purposes of financial gain, 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 or court order 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 newly hired 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 12. (a) 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.
(b) Sports wagering operators may use any data source for determining:
(1) the results of any and all tier 1 sports wagers on any and all sporting events; and
(2) the results of any and all tier 2 sports wagers on sporting events of an organization that is not headquartered in the United States.
(c) A sports governing body may notify the commission that it desires sports wagering operators to use official league data to settle tier 2 sports wagers on sporting events of such sports governing body. The notification shall be made in the form and manner as the commission may require. Within 5 days of receipt of the notification, the commission shall notify each sports wagering operator of the requirement to use official league data to settle tier 2 sports wagers. If a sports governing body does not notify the commission of its desire to supply official league data, a sports wagering operator may use any data source for determining the results of any and all tier 2 sports wagers on sporting events of the sports governing body.
(d) Within 60 days of the commission notifying a sport wagering operator of the requirement to use official league data to settle tier 2 sports wagers pursuant to subsection (c), or such longer period as may be agreed between the sports governing body and the applicable sports wagering operator, a sports wagering operator shall use only official league data to determine the results of tier 2 sports wagers on sporting events of that sports governing body, unless:
(1) the sports governing body or its designee cannot provide a feed of official league data to determine the results of a particular type of tier 2 sports wager, in which case a sports wagering operator may use any data source for determining the results of the applicable tier 2 sports wager until such time a data feed becomes available from the sports governing body on commercially reasonable terms and conditions; or
(2) a sports wagering operator can demonstrate to the commission that the sports governing body or its designee will not provide a feed of official league data to the sports wagering operator on commercially reasonable terms and conditions.
(e) In evaluating whether official league data is offered on commercially reasonable terms and conditions for purposes of paragraphs (1) and (2) of subsection (d), the commission may consider factors, including, but not limited to:
(1) the availability of official league data to a sports wagering operator from more than 1 authorized source;
(2) market information, including, but not limited to, price and other terms and conditions regarding the purchase by sports wagering operators of comparable data for the purpose of settling sports wagers in the commonwealth and other jurisdictions;
(3) the nature and quantity of data, including the quality and complexity of the process used for collecting the data; and
(4) the extent to which a sports governing body or its designee has made data used to settle tier 2 wagers available to sports wagering operators and any terms and conditions relating to the use of that data.
(f) Notwithstanding subsection (d) or any provision of this subsection to the contrary, during the pendency of the determination of the commission as to whether a sports governing body or its designee may provide official league data on commercially reasonable terms, a sports wagering operator may use any data source to determine the results of tier 2 sports wagers. The determination shall be made within 120 days of the sports wagering operator notifying the commission that it requests to demonstrate that the sports governing body or its designee will not provide a feed of official league data to the sports wagering operator on commercially reasonable terms.
(g) A sports governing body may enter into commercial agreements with a sports wagering operator or other entity in which such sports governing body may share in the amount wagered or revenues derived from sports wagering on sporting events of the sports governing body. A sports governing body shall not be required to obtain a license or any other approval from the commission to lawfully accept such amounts or revenues.
Section 13. (a) Holders of category 1 and category 2 licenses may accept wagers on sports events and other events authorized pursuant to this chapter in person at authorized facilities.
(b) Holders of an operator license may accept wagers on sports events and other events authorized pursuant to this chapter 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. All bets authorized pursuant to 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 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, 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 .
(e)(1) 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. No patron on the exclusion list shall be permitted to conduct sports wagering pursuant to this chapter.
(2) The commission shall establish a list of self-excluded persons from sports wagering. A person may request their name to 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. The commission shall adopt further regulations for the self-excluded persons list including procedures for placement, removal and transmittal of the list to sports wagering operators. 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. 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 may allow patrons to set self-imposed limitations on sports wagering when the patron joins the mobile application or digital platform.
(f) No employee may place a sports wager at any facility or through any mobile application or digital platform owned or operated by their employer.
(g) Sections 24, 24A and 27 of chapter 10 of the General Laws shall not apply to an operator conducting sports wagering in accordance with this chapter.
(h) Unclaimed winning sports wagers shall be retained by the operator for the person entitled to the wager for 1 year after the game or event in which the wager was won. If no claim is made for the wager within 1 year, the cash or equivalent cash value of the wager shall be deposited in the Sports Wagering Control Fund established in section 15.
Section 14. (a) An excise is hereby imposed upon sports wagering operators in the commonwealth at the rate of: (i) 15 per cent of the operator’s adjusted gross sports wagering receipts from the operation of in-person sports wagering; (ii) 20 per cent of the operator’s adjusted gross sports wagering receipts from the operation of sports wagering through mobile applications and other digital platforms approved by the commission; and (iii) 15 per cent of the adjusted gross fantasy wagering receipts of a person or entity that offers fantasy contests, as defined in section 11M½. The accrual method of accounting shall be used for purposes of calculating the amount of the tax owed by the licensee. 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 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.
(4) When an operator’s adjusted gross sports wagering receipts for a month is a negative number because the winnings paid to wagerers and excise taxes paid pursuant to federal law exceed the operator’s total gross receipts from sports wagering, the commission shall allow the operator to carry over the negative amount to returns filed for subsequent months. The negative amount of adjusted gross sports wagering receipts shall not be carried back to an earlier month and taxes previously received by the commission shall not be refunded unless the operator surrenders its license and the operator’s last return reported negative adjusted gross sports wagering receipts.
(c) The excise on adjusted gross sports wagering receipts imposed by this section shall be in lieu of all other state and local taxes and fees imposed on the operation of, or the proceeds from operation of, sports wagering.
(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 15. (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 the 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 7 and 8; (iv) breaks; and (v) such additional funds as are subject to the direction and control of the commission. All available money in the fund that is 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 operators 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 operators 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 in shares to be determined by the commission against each sports wagering operator that is not a category 1 or category 2 gaming licensee, as defined in section 2 of chapter 23K. The fee collected pursuant to this subsection shall be deposited into the Public Health Trust Fund established in section 58 of said 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 16. (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 has 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 17. There shall be established and set up on the books of the commonwealth a Sports Wagering Fund which shall receive revenues collected pursuant to sections 6 and 14. The commission shall be the trustee of the fund and shall transfer monies from the fund as follows:
(1) 45 per cent to the General Fund;
(2) 17.5 per cent to the Workforce Investment Trust Fund established in section 18;
(3) 27.5 per cent to the Gaming Local Aid Fund established in section 63 of section 23K;
(4) 1 per cent to the Youth Development and Achievement Fund established in section 19; and
(5) 9 per cent to the Public Health Trust Fund established in section 58 of section 23K.
Section 18. (a) There is hereby established and set up on the books of the commonwealth a separate fund to be known as the Workforce Investment Trust Fund. There shall be credited to the fund any sports wagering revenue transferred from the Sports Wagering Fund pursuant to section 16. Monies transferred to the fund shall be continuously expended, without regard for fiscal year, exclusively for carrying out the purposes of this section. Money remaining in the fund at the end of a fiscal year shall not revert to the General Fund.
(b) The fund shall be administered by the secretary of housing and economic development. Money in the fund shall be competitively granted to develop and strengthen workforce opportunities for low-income communities and vulnerable youth and young adults in the commonwealth, including providing opportunities and strategies to promote stable employment and wage growth.
(c) Eligible grant recipients shall provide opportunities which: (i) target at risk youth, including resources to empower youth to succeed in the workforce; (ii) provide job skills trainings, including programs offering trainings in multiple languages and areas for development, including education and hands on skills; (iii) promote adult literacy, including strategies to master reading and writing and providing digital formats to increase accessibility; and (iv) provide English language learning programs to promote access to the workforce. The secretary of housing and economic development shall establish criteria to evaluate applications for the grant program; provided, that the criteria shall include, but shall not be limited to, at risk populations; provided further, that preference shall be given to eligible grant recipients providing opportunities for individuals who meet at least 2 of the following: (i) is under 30 years of age; (ii) is a victim of violence; (iii) is over 18 years of age and does not have a high school diploma; (iv) has been convicted of a felony; (v) has been unemployed or has had a family income below 250 per cent of the federal poverty level for not less than 6 months; (vi) lives in a census tract where over 20 per cent of the populations fall below the federal poverty line; or (vii) is an immigrant, refugee or person of color.
(d) Annually, not later than October 1, the secretary of housing and economic development shall provide a report of the grants given and a breakdown of expenditures made by the fund. The report shall be posted on the website of the executive office of housing and economic development.
Section 18. There shall be established and set up on the books of the commonwealth a fund to be known as the Youth Development and Achievement Fund. The fund shall be credited any monies transferred from the Sports Wagering Fund pursuant to section 16 and all monies credited to or transferred to the fund from any other fund or source. Expenditures from the fund shall be subject to appropriation and shall be expended equally for the following purposes:
(1) For the purposes of providing financial assistance to students from the commonwealth enrolled in and pursuing a program of higher education in any approved public or independent college, university, school of nursing or any other approved institution furnishing a program of higher education;
(2) For the purposes of funding after-school and out-of-school activities, including, but not limited to, youth athletics and other activities that improve student health, literacy programs, English language learning programs, academic tutoring, art, theater and music programs and community service programs; and
(3) For the purposes of providing matching grants to elementary and secondary youth sports, organizations, clubs and other school groups to attend events including, but not limited to, academic events and programs, cultural events and award ceremonies both nationally and internationally.
Section 20. The commission shall conduct a study into the feasibility of allowing retail locations in the commonwealth to operate sports wagering kiosks. The study by the commission shall include, but not be limited to, an analysis of: (i) the economic impact of this chapter on retail establishments that serve alcoholic beverages for on premises consumption, such as restaurants and bars; (ii) which retail locations have the ability to operate a sports wagering kiosk; (iii) the economic impact to the commonwealth of authorizing retail locations to operate a sports wagering kiosk; (iv) the methods and availability of payouts of winnings by a sports wagering kiosks at retail locations; (v) the public health and safety impacts to the commonwealth of authorizing retail locations to operate a sports wagering kiosk; (vi) the potential effect of sports wagering kiosks at retail locations on problem gaming or gambling; (vii) the impact of sports wagering kiosks at retail locations on minors; (viii) the economic impact of authorizing this method of sports wagering on businesses owned by people of color; (ix) the public health and economic impact of this method of sports wagering as an alternative to the current black market, particularly in communities far from authorized in-person sports wagering; and (x) recommendations to ensure diversity, equity and inclusion are included in this method of sports wagering. As part of the study, the commission shall consult retailers, convenience stores, restaurants, women and minority owned businesses and small business owners. The commission shall report on its findings and submit any recommendations to the clerks of the house and senate, the house and senate committees on ways and means, the joint committee on consumer protection and professional licensure and the joint committee on economic development and emerging technologies no later than December 31, 2022.
Section 21. (a) 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 persons and is not limited to persons licensed under this chapter.
(b) The commission may condition, suspend, reprimand, assess a fine or revoke an operator 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; (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 licensee continues to conduct business or employ; (vi) is no longer capable of maintaining operations as a sports wagering operator or data supplier; or (vii) whose business practice, upon a determination by the commission, is injurious to the policy objectives of this chapter.
Section 21. (a) Whoever, other than an operator under this chapter, 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; and for a second offense, 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; and in the case of a third or subsequent violation by imprisonment in the state prison for not less than 1 but not more than 5 years or by a fine of not less than $25,000 and not more than $100,000, or both.
Section 22. 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 23. (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 6. Chapter 128C of the General Laws is hereby amended by inserting the following new 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 wager on greyhound dog racing, and a running horse racing meeting licensee shall conduct not less than 20 live racing days at a thoroughbred horse racing track, provided, the commission may waive this requirement as necessary and appropriate to ensure the financial ability of the licensee to develop and operate a race track.
SECTION 7. 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 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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 15. 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 16. 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 not being conducted pursuant to chapter 23N.
SECTION 17. 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 18. Said chapter 271, as so appearing, is hereby further amended by striking out section 17A and inserting in place thereof the following section:-
Section 17A. Except as permitted under chapter 23N, whoever uses a telephone, internet or other communications technology or, being the occupant in control of premises where a telephone, internet or other communications technology is located or 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 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; provided, however, that this section shall not apply to use of telephones or other devices or means to place wagers authorized pursuant to the provisions of section 5C of chapter 128A.
SECTION 19. 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 20. 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 21. 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 22. 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 23. 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 conducted pursuant to chapter 23N.
SECTION 24. 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 conducted pursuant to chapter 23N.
SECTION 25. 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 26. Section 135 of chapter 219 of the acts of 2016 is hereby repealed.
SECTION 27. Sections 2 and 6 shall take effect 1 year after the effective date of this act.
Approved, August 10, 2022.