Florida Senate - 2011 COMMITTEE AMENDMENT
Bill No. SB 812
Barcode 683530
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
03/16/2011 .
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The Committee on Regulated Industries (Diaz de la Portilla)
recommended the following:
1 Senate Amendment (with title amendment)
2
3 Delete everything after the enacting clause
4 and insert:
5 Section 1. This act may be cited as the “Internet Poker
6 Consumer Protection and Revenue Generation Act.”
7 Section 2. Section 849.087, Florida Statutes, is created to
8 read:
9 849.087 Intrastate Internet poker authorized.—
10 (1) LEGISLATIVE INTENT.—It is the intent of the Legislature
11 to create a framework for the state to regulate intrastate
12 Internet poker which can ensure consumer protections and
13 additional revenue to the state by authorizing, implementing,
14 and creating a licensing and regulatory structure and system of
15 intrastate Internet poker to:
16 (a) Provide that intrastate Internet poker is offered for
17 play only in a manner that is lawful under the federal Unlawful
18 Internet Gambling Enforcement Act of 2006.
19 (b) Provide a new source of revenue that will generate
20 additional positive economic benefits to the state through the
21 authorization of lawful and regulated intrastate Internet poker
22 in Florida instead of flowing offshore to unregulated foreign
23 operators and markets.
24 (c) Create a contractual relationship with one or more
25 Internet poker hub operators having the technical expertise to
26 ensure that wagering authorized by this section is offered only
27 to registered players who are at least 18 years of age and
28 physically present within the borders of this state at the time
29 of play.
30 (d) Provide for a competitive procurement process to select
31 one or more Internet poker hub operators that are qualified to
32 be licensed by the state and meet all statutory, regulatory, and
33 contractual requirements of the state while protecting
34 registered poker players.
35 (e) Provide for a licensed cardroom operator to become a
36 licensed provider of intrastate Internet poker through Internet
37 poker hub operators.
38 (f) Ensure that the state is able to collect all taxes and
39 fees from the play of intrastate Internet poker.
40 (g) Create a system to protect each registered poker
41 player’s private information and prevent fraud and identity
42 theft and ensure that the player’s financial transactions are
43 processed in a secure and transparent fashion.
44 (h) Ensure that the regulatory agency has unlimited access
45 to the premises and records of the Internet poker hub operators
46 and cardroom affiliates to ensure strict compliance with its
47 regulations concerning credit authorization, account access, and
48 other security provisions.
49 (i) Require the Internet poker hub operators to provide
50 accessible customer service to registered poker players.
51 (j) Require the Internet poker hub operator’s Internet site
52 to contain information relating to problem gambling, including a
53 telephone number that an individual may call to seek information
54 and assistance for a potential gambling addiction.
55 (2) DEFINITIONS.—Unless otherwise clearly required by the
56 context, as used in this section:
57 (a) “Authorized game” means a game or series of games of
58 poker, which may include tournaments, which are played in a
59 nonbanking manner on a state Internet poker network.
60 (b) “Cardroom affiliate” means a licensed cardroom operator
61 as defined in s. 849.086 who maintains an Internet site as a
62 portal into a state Internet poker network.
63 (c) “Convicted” means having been found guilty, regardless
64 of adjudication, as a result of a jury verdict, nonjury trial,
65 or entry of a plea of guilty or nolo contendere.
66 (d) “Department” means the Department of Business and
67 Professional Regulation.
68 (e) “Division” means the Division of Pari-mutuel Wagering
69 of the department.
70 (f) “Gross receipts” means the total amount of money
71 received by an Internet poker hub operator from registered
72 players for participation in authorized games.
73 (g) “Internet poker hub operator” or “poker hub operator”
74 means a computer system operator that is licensed by the state
75 and contracts with the state to operate a state Internet poker
76 network.
77 (h) “Intrastate Internet poker” means authorized games of
78 poker played over the Internet by registered players who are
79 physically present within the borders of this state at the time
80 of play.
81 (i) “Liquidity” means the total number of registered
82 players available in a state Internet poker network.
83 (j) “Nonbanking game” means an authorized game in which an
84 Internet poker hub operator or cardroom affiliate is not a
85 participant and has no financial stake in the outcome of the
86 authorized game.
87 (k) “Player incentives” means any bonuses, rewards, prizes,
88 or other types of promotional items provided to a registered
89 player by an Internet poker hub operator or cardroom affiliate
90 as an incentive to begin or continue playing on a state Internet
91 poker network.
92 (l) “Rake” means a set fee or percentage of the pot
93 assessed by an Internet poker hub operator for providing the
94 Internet poker services to registered players for the right to
95 participate in an authorized game conducted by the poker hub
96 operator.
97 (m) “Registered player” means a person who is registered
98 with a poker hub operator under this section to participate in
99 an authorized game conducted on a state Internet poker network.
100 (n) “State Internet poker network” means a computer system
101 operated by one or more Internet poker hub operators which
102 authorizes the playing of and wagering on intrastate Internet
103 poker by registered players through the website portals of
104 cardroom affiliates.
105 (o) “Tournament fee” means a set fee assessed to registered
106 players by an Internet poker hub operator for providing the
107 Internet poker tournament services.
108 (3) INTRASTATE INTERNET POKER AUTHORIZED.—
109 (a) Under the Unlawful Internet Gambling Enforcement Act of
110 2006, a state is not precluded from regulating and conducting
111 intrastate Internet poker as long as all players and the online
112 wagering activities are located within the state.
113 (b) Notwithstanding any other provision of law, a person in
114 Florida may participate as a registered player in an authorized
115 game or tournament provided on a state Internet poker network by
116 a licensed cardroom affiliate or may operate a state Internet
117 poker network as a licensed Internet poker hub operator if such
118 game and poker operations are conducted strictly in accordance
119 with the provisions of this section and federal law.
120 (4) AUTHORITY OF DIVISION.—The division shall administer
121 this section and regulate the operation of a state Internet
122 poker network, the Internet poker hub operators, the cardroom
123 affiliates, and the play of intrastate Internet poker under this
124 section and the rules adopted pursuant to this section, and is
125 authorized to:
126 (a) Adopt rules related to Internet poker, including, but
127 not limited to, rules governing the issuance of operator and
128 individual occupational licenses to Internet poker hub
129 operators, cardroom affiliates, and their employees; operation
130 of a state Internet poker network and technical system
131 requirements; security of the financial information of
132 registered players and registered player accounts; bonuses,
133 awards, promotions, and other incentives to registered players;
134 recordkeeping and reporting requirements; the distribution of
135 Internet poker income; and the imposition and collection of all
136 fees and taxes imposed by this section.
137 (b) Conduct investigations and monitor operation of a state
138 Internet poker network and the playing of authorized games on a
139 network.
140 (c) Review the books, accounts, and records of any current
141 or former Internet poker hub operator or cardroom affiliate.
142 (d) Suspend or revoke any license, after a hearing, for any
143 violation of this section or the rules adopted pursuant to this
144 section.
145 (e) Take testimony, issue summons and subpoenas for any
146 witness, and issue subpoenas duces tecum in connection with any
147 matter within its jurisdiction.
148 (f) Monitor and ensure proper collection of taxes and fees
149 imposed by this section. The division shall monitor, audit, and
150 verify the cash flow and accounting of a state Internet poker
151 network revenue for any given operating day.
152 (g) Monitor and ensure that the playing of Internet poker
153 is conducted fairly and that all personal and financial
154 information provided by registered players is protected by the
155 Internet poker hub operators.
156 (5) INTERNET POKER HUB OPERATOR LICENSE REQUIRED;
157 APPLICATION.—A person may not operate as an Internet poker hub
158 operator in this state unless the person holds a valid Internet
159 poker hub operator license issued under this section.
160 (a) Only a person holding a valid Internet poker hub
161 operator license issued by the division may provide intrastate
162 Internet poker for play to registered players.
163 (b) An Internet poker hub operator must be an entity
164 authorized to conduct business in this state.
165 (c) A person seeking a license or renewal of a license to
166 operate as an Internet poker hub operator shall make application
167 on forms prescribed by the division. Applications for Internet
168 poker hub operator licenses shall contain all of the information
169 the division, by rule, determines is required to ensure
170 eligibility under this section.
171 (d) As a condition of licensure and to maintain continued
172 authority to conduct intrastate Internet poker, an Internet
173 poker hub operator licensee must provide the documentation
174 required under this section on a timely basis to the division
175 and the documentation must be appropriate, current, and
176 accurate. A change in ownership or interest of an Internet poker
177 hub operator licensee of 5 percent or more of the stock or other
178 evidence of ownership or equity in an Internet poker hub
179 operator licensee or any parent corporation or other business
180 entity that in any way owns or controls an Internet poker hub
181 operator licensee must be approved by the division before the
182 change, unless the owner is an existing holder of the license
183 who was previously approved by the division. A change in
184 ownership or interest of less than 5 percent which results in a
185 cumulative ownership or interest of 5 percent or more must be
186 approved by the division before the change, unless the owner is
187 an existing holder of the license who was previously approved by
188 the division. The division may then conduct an investigation to
189 ensure that the license is properly updated to show the change
190 in ownership or interest. Reporting is not required under this
191 paragraph if the person is holding 5 percent or less of the
192 equity or securities of a corporate owner of an Internet poker
193 hub operator licensee that has its securities registered
194 pursuant to s. 12 of the Securities Exchange Act of 1934, 15
195 U.S.C. ss. 78a-78kk, and if the corporation or entity files with
196 the United States Securities and Exchange Commission the reports
197 required by s. 13 of that act or if the securities of the
198 corporation or entity are regularly traded on an established
199 securities market in the United States.
200 (e) Any applicant and each licensee shall pay all fees as
201 required in subsections (24) and (25).
202 (6) SELECTION OF AN INTERNET POKER HUB OPERATOR BY
203 COMPETITIVE PROCUREMENT PROCESS; EVALUATION.—
204 (a) The division shall, subject to a competitive
205 procurement process, select no more than three Internet poker
206 hub operator applicants that meet the licensure and technical
207 requirements and expertise to provide services for lawful
208 intrastate Internet poker games in Florida. The applicants must
209 demonstrate the ability to ensure that intrastate Internet poker
210 is offered only to registered players who are at least 18 years
211 of age and who are physically present within the borders of this
212 state at the time of play.
213 (b) After each year of operation of intrastate Internet
214 poker, the division shall review and evaluate the current level
215 of liquidity in the state Internet poker network to determine if
216 there is a need to license additional Internet poker hub
217 operators, if the maximum number of Internet poker hub operators
218 has not already been authorized. If the division finds there is
219 sufficient evidence to support licensing additional Internet
220 poker hub operators, then the division may select additional
221 Internet poker hub operators pursuant to this subsection and the
222 qualifications specified in subsection (7). Notwithstanding the
223 power to license additional Internet poker hub operators under
224 this paragraph, only three Internet poker hub operators may be
225 licensed at any one time in the state.
226 (7) QUALIFICATIONS FOR AN INTERNET POKER HUB OPERATOR.—For
227 the purposes of this section, the division shall consider all of
228 the following as minimum qualifications to determine whether an
229 Internet poker hub operator applicant or any subcontractor
230 included in the hub operator applicant’s state application is
231 legally, technically, and financially qualified to become the
232 state’s Internet poker hub operator:
233 (a) The applicant is an entity authorized to conduct
234 business in this state.
235 (b) The applicant has not accepted any wager of money or
236 other consideration on any online gambling activity, including
237 poker, from any Florida resident since October 13, 2006.
238 However, this paragraph does not disqualify an applicant or
239 subcontractor who accepts online pari-mutuel wagers from any
240 Florida resident through a legal online pari-mutuel wagering
241 entity authorized in another state.
242 (c) The applicant’s executives and key employees meet the
243 requirements to obtain intrastate Internet poker occupational
244 licenses from the division, as set forth in subsection (12).
245 (d) The applicant has existing and established experience
246 with Internet gaming, or is licensed to conduct Internet gaming
247 activities, in one or more jurisdictions anywhere in the world
248 where Internet gaming is legal and regulated.
249 (e) The applicant and all entities with an ownership
250 interest in the applicant have demonstrated compliance with all
251 federal and state laws in the jurisdictions in which they
252 provide services.
253 (f) The applicant has provided all necessary documentation
254 and information relating to all proposed subcontractors of the
255 applicant.
256 (g) The applicant has provided a description of how it will
257 facilitate compliance with all of the standards set forth in
258 this section, including, but not limited to, those for:
259 1. Registered player processes and requirements relating to
260 intrastate play, age verification, and exclusion of problem
261 gamblers.
262 2. Network system requirements, including, but not limited
263 to, connectivity, hardware, software, anti-fraud systems, virus
264 prevention, data protection, access controls, firewalls,
265 disaster recovery, and redundancy.
266 3. Gaming systems, including, but not limited to, hardware
267 and software that ensures that: games are legal, games are
268 independent and fair, game and betting rules are available to
269 all registered players, and all data used for the conduct of
270 each game are randomly generated and unpredictable.
271 4. Ongoing auditing by the division and accounting systems,
272 including, but not limited to, those for registered player
273 accounts, participation fees, distribution of funds to
274 registered players, and distribution of revenue to the state.
275 (h) The applicant has provided all other documentation or
276 information that the division, by rule, has determined is
277 required to ensure that the applicant is legally, technically,
278 and financially qualified to enter into a contract to become the
279 state’s Internet poker hub operator.
280 (8) SUBMISSION OF THE APPLICATION FOR AN INTERNET POKER HUB
281 OPERATOR.—In addition to demonstrating that the applicant is
282 legally, technically, and financially qualified to become an
283 Internet poker hub operator in the state, the applicant must
284 describe how it will fulfill the contractual role envisaged by
285 this section. The applicant shall provide all of the following:
286 (a) All necessary documentation and information relating to
287 the applicant and its direct and indirect owners, including, but
288 not limited to:
289 1. Documentation that the entity is authorized to conduct
290 business in this state and other founding documents.
291 2. Current and historical audited financial and accounting
292 records.
293 3. Any and all documents relating to legal and regulatory
294 proceedings in this state and other jurisdictions involving the
295 applicant.
296 4. Any and all documents relating to the applicant’s
297 business history, including all state and federal tax filings.
298 5. Any and all documents relating to the nature and sources
299 of the applicant’s financing.
300 6. Any and all documentation that demonstrates that the
301 applicant is financially qualified to perform the obligations of
302 an Internet poker hub operator as described in this section.
303 7. Any other documentation or information that the
304 division, by rule, determines is required to ensure eligibility.
305 (b) All necessary documentation and information relating to
306 any of the subcontractors of the Internet poker hub operator
307 applicant, including, but not limited to:
308 1. A description of the services to be provided by each
309 subcontractor.
310 2. Information for each subcontractor as set forth in this
311 section.
312 3. Any other documentation or information that the
313 division, by rule, determines is required to ensure eligibility.
314 (c) A description as to how the applicant will facilitate
315 compliance with all of the standards set forth in this section,
316 including, but not limited to, those for:
317 1. Registered player requirements relating to:
318 a. Intrastate play.
319 b. Age verification.
320 c. Exclusion of problem gamblers.
321 2. Network system requirements, including, but not limited
322 to:
323 a. Connectivity.
324 b. Hardware.
325 c. Software.
326 d. Anti-fraud systems.
327 e. Virus prevention.
328 f. Data protection.
329 g. Access controls.
330 h. Firewalls.
331 i. Disaster recovery.
332 j. Redundancy.
333 3. Gaming systems, including, but not limited to, hardware
334 and software that ensures that:
335 a. Games are legal.
336 b. Games are independent and fair.
337 c. Game and betting rules are available to all registered
338 players.
339 d. All data used for the conduct of each game are randomly
340 generated and unpredictable.
341 4. Accounting systems, including, but not limited to, those
342 for:
343 a. Registered player accounts.
344 b. Participation fees.
345 c. Transparency and reporting to the division.
346 d. Distribution of revenue to the state, funds pursuant to
347 contract, and funds to registered players.
348 e. Ongoing auditing.
349 (d) A description of the games and services the applicant
350 proposes to offer to registered players.
351 (e) A description by the applicant of how it will ensure
352 that registered players are at least 18 years of age or older
353 and facilitate registered player protections and resolution of
354 player disputes.
355 (f) Upon submission of the initial application and
356 proposal, the applicant shall pay all fees required in
357 subsections (23) and (24).
358 (9) ANNUAL BOND REQUIRED.—The holder of a license to be an
359 Internet poker hub operator in the state shall be financially
360 and otherwise responsible for the operation of a state Internet
361 poker network and for the conduct of any employee involved in
362 the operation of the online poker network. Before the issuance
363 of an Internet poker hub operator license, each qualified
364 applicant for such a license must provide evidence of a surety
365 bond in the amount of $1 million, payable to the state, for each
366 year that the licensee is licensed to be an Internet poker hub
367 operator in the state. The bond shall be issued by a surety or
368 sureties authorized to do business in the state and approved by
369 the division and the Chief Financial Officer in his or her
370 capacity as treasurer of the division. The bond shall guarantee
371 that an Internet poker hub operator fulfills all financial
372 requirements of the contract. Such bond shall be kept in full
373 force and effect by an Internet poker hub operator during the
374 term of the license.
375 (10) CONTRACTUAL RELATIONSHIP; RIGHT TO TERMINATE
376 CONTRACT.—An Internet poker hub operator shall comply with the
377 terms of its contract with the state and this section.
378 (a) The accepted proposal agreed to by the division and an
379 Internet poker hub operator shall constitute the contract
380 between the state and the Internet poker hub operator.
381 (b) The contract between the state and an Internet poker
382 hub operator is for a 5-year period and may be renewed for a
383 period equal to the original contract, if agreed to by both
384 parties.
385 (c) The contract between the state and an Internet poker
386 hub operator may be amended by mutual written agreement of the
387 division and the Internet poker hub operator.
388 (d) If this section is amended in such a way that affects
389 the play of intrastate Internet poker or affects the operation
390 of intrasate Internet poker by the licensed Internet poker hub
391 operators contrary to the existing contract with the state, an
392 Internet poker hub operator may declare the contract null and
393 void within 90 days after the effective date of the amendment
394 and must provide at least 60 days prior written notice to the
395 division of such intent. Failure to provide notice of such
396 intent to declare the contract null and void within 60 days of
397 the effective date of any amendment to this section constitutes
398 an agreement to be bound by the amendments adopted after the
399 terms of the contract are established.
400 (e) In the event of commercial infeasibility due to a
401 change in federal law rendering the provision of intrastate
402 poker services illegal, an Internet poker hub operator or the
403 division may abandon the contract after providing the other
404 party with at least 90 days’ written notice of its intent to end
405 the contract and a statement explaining its interpretation that
406 continuing to provide services under the contract is
407 commercially infeasible.
408 (f) If a dispute arises between the parties to the
409 contract, either the division or the Internet poker hub operator
410 may go through an administrative law or circuit court for an
411 initial interpretation of the contract and the rights and
412 responsibilities in the contract.
413 (11) CARDROOM AFFILIATE LICENSE REQUIRED; APPLICATION;
414 FEES.—A cardroom affiliate license may only be issued or renewed
415 to a cardroom operator who is licensed under s. 849.086,
416 actively operates a cardroom with a minimum of 10 licensed
417 tables, and complies with all the requirements of s. 849.086 and
418 the rules adopted pursuant to that section.
419 (a) Only those persons holding a valid cardroom affiliate
420 license issued by the division may provide intrastate Internet
421 poker for play to registered players through its website.
422 (b) Prior to providing intrastate Internet poker for play
423 to registered players, a cardroom affiliate licensee must have
424 entered into a contractual relationship with a licensed Internet
425 poker hub operator to offer the play of Internet poker. A copy
426 of the contract must be on file with the division.
427 (c) After the initial cardroom affiliate license is
428 granted, the annual application for the renewal of that license
429 shall be made in conjunction with the applicant’s annual
430 application for its cardroom and pari-mutuel licenses under s.
431 849.086 and chapter 550, respectively.
432 (d) A person seeking a license or renewal of a license to
433 operate as a cardroom affiliate shall make the application on
434 forms prescribed by the division. An application for a cardroom
435 affiliate license shall contain all of the information the
436 division, by rule, determines is required to ensure eligibility.
437 (e) As a condition of licensure and to maintain continued
438 authority for the conduct of intrastate Internet poker, the
439 cardroom affiliate licensee must provide the documentation
440 required under this section on a timely basis to the division
441 and the documentation must be appropriate, current, and
442 accurate.
443 (f) As a condition of eligibility for license renewal, a
444 cardroom affiliate must have, as either an individual or as part
445 of a coalition as allowed in subsection (26)(d), an active and
446 operating portal, must have a current contract on file with the
447 division, and must have contributed at least 1 percent of the
448 total revenue generated from the play of intrastate Internet
449 poker through the Internet poker hub the cardroom affiliate has
450 contracted with from the previous state fiscal year, as
451 determined by the division.
452 (g) The annual cardroom affiliate license fee shall be
453 $1,000 as referenced in subsection (23)(c).
454 (h) The division shall adopt rules regarding cardroom
455 affiliate licenses and renewals.
456 (12) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE REQUIRED;
457 APPLICATION; FEES.—
458 (a) A person employed by or otherwise working for an
459 Internet poker hub operator or a cardroom affiliate in any
460 capacity related to and while conducting intrastate Internet
461 poker operations must hold a valid occupational license issued
462 by the division.
463 (b) An Internet poker hub operator or a cardroom affiliate
464 may not employ or allow to be employed any person in any
465 capacity related to the operation of intrastate Internet poker
466 unless the person holds a valid occupational license.
467 (c) An Internet poker hub operator or cardroom affiliate
468 may not contract with, or otherwise do business with, a business
469 required to hold a valid intrastate Internet poker business
470 occupational license, unless the business holds such a valid
471 license.
472 (d) A proprietorship, partnership, corporation,
473 subcontractor, or other entity must obtain a valid intrastate
474 Internet poker business occupational license issued by the
475 division to partner with, contract with, be associated with, or
476 participate in the conduct of intrastate Internet poker
477 operations with an Internet poker hub operator or a cardroom
478 affiliate.
479 (e) The division shall establish, by rule, a schedule for
480 the annual renewal of Internet poker hub operator and cardroom
481 affiliate occupational licenses. Intrastate Internet poker
482 occupational licenses are not transferable.
483 (f) A person seeking an intrastate Internet poker
484 occupational license, or renewal of such a license, shall make
485 the application on forms prescribed by the division and include
486 payment of the appropriate application fee. An application for
487 an intrastate Internet poker occupational license shall contain
488 all of the information the division, by rule, determines is
489 required to ensure eligibility under this section.
490 (g) The division shall adopt rules regarding intrastate
491 Internet poker occupational licenses and renewals.
492 (h) An intrastate Internet poker occupational license is
493 valid for the same term as a pari-mutuel occupational license
494 issued under s. 550.105(1).
495 (i) Pursuant to rules adopted by the division, any person
496 may apply for and, if qualified, be issued an intrastate
497 Internet poker occupational license valid for a period of 3
498 years upon payment of the full occupational license fee for each
499 of the 3 years for which the license is issued. The intrastate
500 Internet poker occupational license is valid during its
501 specified term at any Internet poker hub operator or a cardroom
502 affiliate where intrastate Internet poker is authorized to be
503 conducted.
504 (j) The intrastate Internet poker occupational license fee
505 for initial application and annual renewal shall be determined
506 by rule of the division but may not exceed $50 for an
507 occupational license for an employee of an Internet poker hub
508 operator or a cardroom affiliate licensee or $1,000 for a
509 business occupational license for nonemployees of the licensee
510 providing goods or services to an Internet poker hub operator or
511 a cardroom affiliate occupational licensee. Failure to pay the
512 required fee constitutes grounds for disciplinary action by the
513 division against an Internet poker hub operator or a cardroom
514 affiliate occupational licensee.
515 (k) A person holding a valid individual cardroom
516 occupational license issued by the division under s. 849.086(6)
517 is not required to obtain an individual employee occupational
518 license under this subsection.
519 (13) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE DENIAL,
520 REVOCATION, SUSPENSION, LIMITATION, OR NONRENEWAL.—The division
521 may:
522 (a) Deny an application for, or revoke, suspend, or place
523 conditions or restrictions on, a license of a person or entity
524 that has been refused a license by any other state gaming
525 commission, governmental department, agency, or other authority
526 exercising regulatory jurisdiction over the gaming of another
527 state or jurisdiction.
528 (b) Deny an application for, or suspend or place conditions
529 or restrictions on, a license of any person or entity that is
530 under suspension or has unpaid fines in another state or
531 jurisdiction.
532 (c) Deny, suspend, revoke, or refuse to renew any Internet
533 poker hub operator or cardroom affiliate occupational license if
534 the applicant for the license or the licensee has violated this
535 section or the rules of the division governing the conduct of
536 persons connected with the play of intrastate Internet poker.
537 (d) Deny, suspend, revoke, or refuse to renew any Internet
538 poker hub operator or cardroom affiliate occupational license if
539 the applicant for the license or the licensee has been convicted
540 in this state, in any other state, or under the laws of the
541 United States of a capital felony, a felony, or an offense in
542 any other state that would be a felony under the laws of this
543 state involving arson; trafficking in, conspiracy to traffic in,
544 smuggling, importing, conspiracy to smuggle or import, or
545 delivery, sale, or distribution of a controlled substance;
546 racketeering; or a crime involving a lack of good moral
547 character, or has had a gaming license revoked by this state or
548 any other jurisdiction for any gaming-related offense.
549 (e) Deny, revoke, or refuse to renew any Internet poker hub
550 operator or cardroom affiliate occupational license if the
551 applicant for the license or the licensee has been convicted of
552 a felony or misdemeanor in this state, in any other state, or
553 under the laws of the United States if such felony or
554 misdemeanor is related to gambling or bookmaking as described in
555 s. 849.25.
556 (14) BUSINESS AND EMPLOYEE OCCUPATIONAL LICENSE;
557 FINGERPRINTS; FEES; CITATIONS.—
558 (a) A person employed by or working with an Internet poker
559 hub operator or a cardroom affiliate must submit fingerprints
560 for a criminal history record check and may not have been
561 convicted of any disqualifying criminal offense specified in
562 subsection (7). Division employees and law enforcement officers
563 assigned by their employing agencies to work within the premises
564 as part of their official duties are excluded from the criminal
565 history record check requirements under this subsection.
566 (b) Fingerprints for all intrastate Internet poker
567 occupational license applications shall be taken in a manner
568 approved by the division upon initial application, or as
569 required thereafter by rule of the division, and shall be
570 submitted electronically to the Department of Law Enforcement
571 for state processing. The Department of Law Enforcement shall
572 forward the fingerprints to the Federal Bureau of Investigation
573 for national processing. The results of the criminal history
574 record check shall be returned to the division for purposes of
575 screening. The division requirements under this subsection shall
576 be instituted in consultation with the Department of Law
577 Enforcement.
578 (c) The cost of processing fingerprints and conducting a
579 criminal history record check for an intrastate Internet poker
580 occupational license shall be borne by the person being checked.
581 The Department of Law Enforcement may invoice the division for
582 the fingerprints submitted each month.
583 (d) All fingerprints submitted to the Department of Law
584 Enforcement and required by this section shall be retained by
585 the Department of Law Enforcement and entered into the statewide
586 automated fingerprint identification system as authorized by s.
587 943.05(2)(b) and shall be available for all purposes and uses
588 authorized for arrest fingerprint cards entered into the
589 statewide automated fingerprint identification system under s.
590 943.051.
591 (e) The Department of Law Enforcement shall search all
592 arrest fingerprints received under s. 943.051 against the
593 fingerprints retained in the statewide automated fingerprint
594 identification system. Any arrest record that is identified with
595 the retained fingerprints of a person subject to the criminal
596 history screening requirements of this section shall be reported
597 to the division. Each licensed facility shall pay a fee to the
598 division for the cost of retention of the fingerprints and the
599 ongoing searches under this paragraph. The division shall
600 forward the payment to the Department of Law Enforcement. The
601 amount of the fee to be imposed for performing these searches
602 and the procedures for the retention of licensee fingerprints
603 shall be as established by rule of the Department of Law
604 Enforcement. The division shall inform the Department of Law
605 Enforcement of any change in the license status of licensees
606 whose fingerprints are retained under paragraph (d).
607 (f) The division shall request the Department of Law
608 Enforcement to forward the fingerprints to the Federal Bureau of
609 Investigation for a national criminal history records check
610 every 3 years following issuance of a license. If the
611 fingerprints of a person who is licensed have not been retained
612 by the Department of Law Enforcement, the person must file a
613 complete set of fingerprints as provided for in paragraph (a).
614 The division shall collect the fees for the cost of the national
615 criminal history record check under this paragraph and shall
616 forward the payment to the Department of Law Enforcement. The
617 cost of processing fingerprints and conducting a criminal
618 history record check under this paragraph for an intrastate
619 Internet poker occupational license shall be borne by the person
620 being checked. The Department of Law Enforcement may invoice the
621 division for the fingerprints submitted each month. Under
622 penalty of perjury, each person who is licensed or who is
623 fingerprinted as required by this subsection must agree to
624 inform the division within 48 hours if he or she is convicted of
625 or has entered a plea of guilty or nolo contendere to any
626 disqualifying offense, regardless of adjudication.
627 (g) All moneys collected under this subsection shall be
628 deposited into the Pari-mutuel Wagering Trust Fund.
629 (h) The division may deny, revoke, or suspend any
630 occupational license if the applicant or holder of the license
631 accumulates unpaid obligations, defaults in obligations, or
632 issues drafts or checks that are dishonored or for which payment
633 is refused without reasonable cause.
634 (i) The division may fine or suspend, revoke, or place
635 conditions upon the license of any licensee who provides false
636 information under oath regarding an application for a license or
637 an investigation by the division.
638 (j) The division may impose a civil fine of up to $10,000
639 for each violation of this section or the rules of the division
640 in addition to or in lieu of any other penalty provided for in
641 this subsection. The division may adopt a penalty schedule for
642 violations of this section or any rule adopted pursuant to this
643 section for which it would impose a fine in lieu of a suspension
644 and adopt rules allowing for the issuance of citations,
645 including procedures to address such citations, to persons who
646 violate such rules. In addition to any other penalty provided by
647 law, the division may exclude from all licensed pari-mutuel,
648 cardroom, and slot machine facilities in this state, for a
649 period not to exceed the period of suspension, revocation, or
650 ineligibility, any person whose occupational license application
651 has been declared ineligible to hold an occupational license or
652 whose occupational license has been suspended or revoked by the
653 division.
654 (15) INTRASTATE INTERNET POKER; AUTHORIZED GAMES.—
655 (a) In order to offer a specific game of poker for play, an
656 Internet poker hub operator shall provide the division with:
657 1. A description of any game of poker and the betting rules
658 it proposes to offer to registered players; and
659 2. Documentation relating to development and testing of the
660 game’s software.
661 (b) Upon submission of the information required in
662 paragraph (a), an Internet poker hub operator may begin offering
663 the game. If the division does not object to the proposed game
664 of poker within 30 days after receipt of the submission, the
665 game will be considered authorized and the Internet poker hub
666 operator submitting the proposal may continue to offer the game
667 to registered players.
668 (c) Games and betting events shall be operated strictly in
669 accordance with the specified game and betting rules.
670 (d) An Internet poker hub operator shall ensure that the
671 authorized games of poker are fair. For each proposed or
672 authorized game offered for play, the gaming system shall
673 display the following information:
674 1. The name of the game.
675 2. Any restrictions on play.
676 3. The rules of the game.
677 4. All instructions on how to play.
678 5. The unit and total bets permitted.
679 6. The registered player’s current account balance, which
680 shall be updated in real time.
681 7. Any other information that an Internet poker hub
682 operator determines is necessary for the registered player to
683 have in real time to compete fairly in the proposed or
684 authorized game.
685 (e) All proposed and authorized game results shall be
686 conducted in such a fashion that:
687 1. Data used to create results shall be unpredictable such
688 that it is infeasible to predict the next occurrence in a game,
689 given complete knowledge of the algorithm or hardware generating
690 the sequence, and all previously generated numbers.
691 2. The game or any game event outcome shall not be affected
692 by the effective bandwidth, link utilization, bit error rate, or
693 other characteristic of the communications channel between the
694 gaming system and the playing device used by the player.
695 (f) An Internet poker hub operator shall deploy controls
696 and technology to ensure the ability to minimize fraud or
697 cheating through collusion, such as external exchange of
698 information between different players, or any other means.
699 1. If an Internet poker hub operator becomes aware that
700 fraud or cheating is taking place or has taken place, it shall
701 immediately take steps to stop such activities and inform the
702 division of all relevant facts.
703 2. An Internet poker hub operator shall immediately inform
704 the division of any complaints of fraud or collusion and shall
705 investigate whether the complaints are true and shall
706 expeditiously act to prevent further fraud or collusion from
707 taking place on the Internet poker hub. An Internet poker hub
708 operator shall report the results of the investigation in
709 writing to the division within 24 hours after the complaint and
710 shall continue to report every 24 hours until its investigation
711 is concluded. This paragraph does not prevent the division from
712 conducting an independent investigation or initiating an
713 administrative action to protect registered players from fraud
714 and collusion on the Internet poker hub site and does not
715 prohibit a registered player, the Internet poker hub operator, a
716 cardroom affiliate, or the division from reporting suspected
717 criminal activities to law enforcement officials.
718 3. A registered player may not bring an action for damages
719 against an Internet poker hub operator for preventing fraud or
720 cheating or attempting to prevent fraud or cheating if the
721 Internet poker hub operator can demonstrate that it acted to
722 prevent such actions as soon as it became aware of them.
723 (g) If the gaming server or software does not allow a game
724 to be completed, the hand shall be voided and all funds relating
725 to the incomplete hand shall be returned to the registered
726 player’s account.
727 (16) REGISTERED PLAYERS; ELIGIBILITY.—
728 (a) All registered players must be located within this
729 state at the time of play of intrastate Internet poker.
730 (b) A person who has not attained 18 years of age may not
731 be a registered player or play intrastate Internet poker.
732 (c) All Internet poker hub operators and cardroom
733 affiliates shall exclude from play any person who has submitted
734 a completed Internet Poker Self-Exclusion Form.
735 1. All Internet poker hub operators and cardroom affiliates
736 shall have an Internet Poker Self-Exclusion Form available
737 online and accessible on the Internet page that is displayed
738 when:
739 a. A person opens the Internet page to register as a
740 registered player; or
741 b. A registered player accesses the first page of the
742 Internet page prior to playing.
743 2. Upon receipt of a completed Internet Poker Self
744 Exclusion Form, an Internet poker hub operator or cardroom
745 affiliate shall immediately provide a copy of the completed form
746 to each Internet poker hub operator, each cardroom affiliate,
747 and the division. The division shall ensure that all other
748 cardroom affiliates exclude the person from the play of
749 intrastate Internet poker.
750 3. Each Internet poker hub operator and cardroom affiliate
751 shall retain the original form to identify persons who request
752 to be excluded from play.
753 4. Each Internet poker hub operator and cardroom affiliate
754 shall prominently display a link to the website of a responsible
755 gaming organization that is under contract with the division
756 pursuant to s. 551.118(2) for services related to the prevention
757 of compulsive and addictive gambling.
758 5. A person may not bring any action against an Internet
759 poker hub operator or a cardroom affiliate for negligence or any
760 other claim if a person who has filled out an Internet Poker
761 Self-Exclusion Form gains access and plays despite the request
762 to be excluded.
763 (17) REGISTERED PLAYER ACCOUNTS.—
764 (a) An Internet poker hub operator shall register players
765 and establish registered player accounts prior to play and shall
766 ensure that the player's personally identifiable information is
767 accessible to the player and regulators but is otherwise secure.
768 (b) A person may not participate in any game on a state
769 Internet poker network unless the person is registered as a
770 player and holds an account.
771 (c) Accounts may be established in person or by mail,
772 telephone, or any electronic means.
773 (d) To register and establish an account, a person must
774 provide the following registration information:
775 1. First name and surname.
776 2. Principal residence address.
777 3. Telephone number.
778 4. Social security number.
779 5. Legal identification or certification to prove that the
780 person is at least 18 years of age.
781 6. Valid email address.
782 7. The source of funds to be used to establish the account
783 after the registration process is complete.
784 (e) Prior to completing the registration process, an
785 Internet poker hub operator shall explain to the person in a
786 conspicuous fashion the privacy policies of the Internet poker
787 hub, and the person must assent to the following policies:
788 1. Personal identifying information will not be shared with
789 any nongovernment third parties except for licensed
790 subcontractors of an Internet poker hub operator for the sole
791 purpose of permitting registered players to participate in games
792 on the Internet poker hub or upon receipt of a court order to
793 subpoena such information from the Internet poker hub.
794 2. All personally identifiable information about registered
795 players will be shared with the division, the Department of Law
796 Enforcement, and any other governmental agency that receives a
797 court order to subpoena such information.
798 (f) An Internet poker hub operator shall also require that
799 a person agree to the terms of a use agreement applying to
800 registered players.
801 (g) An Internet poker hub operator shall provide a
802 registered player with the means to update the information
803 provided in paragraph (d).
804 (h) An Internet poker hub operator may revoke the accounts
805 of a registered player for the following reasons:
806 1. The registered player provided false information in the
807 registration process;
808 2. The registered player has not updated registration
809 information to keep it current; or
810 3. The registered player has violated an Internet poker hub
811 operator’s terms of use agreement.
812 (i) An Internet poker hub operator may suspend or revoke
813 the account of a registered player if the operator suspects the
814 registered player has participated in illegal activity on a
815 state Internet poker network.
816 (j) An Internet poker hub operator shall establish and
817 maintain an account for each registered player. An Internet
818 poker hub operator shall:
819 1. Provide a means for a registered player to put funds
820 into an account; however, a registered player may not increase
821 the amount in an account after a game has started and before its
822 completion.
823 2. Maintain records on the balance of each registered
824 player’s account.
825 3. Prohibit a registered player from placing a wager unless
826 the player’s account has sufficient funds to cover the amount of
827 the wager.
828 4. Not provide credit to a registered player’s account or
829 act as an agent for a credit provider to facilitate the
830 provision of funds.
831 5. Provide a means for a registered player to transfer
832 money out of the player’s account.
833 (k) An Internet poker hub operator shall put in place other
834 systems that provide registered players with the ability to
835 control aspects of their play. Upon registration and at each
836 time when a registered player logs on to a state Internet poker
837 network, an Internet poker hub operator shall permit the
838 registered player to adjust the player’s play settings to:
839 1. Set a limit on the deposits that can be made per day;
840 2. Set a limit on the amount that can be wagered within a
841 specified period of time;
842 3. Set a limit on the losses that may incur within a
843 specified period of time;
844 4. Set a limit on the amount of time that can be played
845 after logging on to the Internet poker hub; or
846 5. Prevent the Internet poker hub from allowing the
847 registered player to play for an indefinite period of time.
848 (l) During play, in order to assist a registered player to
849 decide whether to suspend play, the registered player’s screen
850 shall:
851 1. Indicate how long the player has been playing;
852 2. Indicate the player’s winnings or losses since the time
853 of last logging in;
854 3. Give an option to the player to end the session or
855 return to the game; and
856 4. Require the player to confirm that the player has read
857 the message.
858 (18) REGISTERED PLAYER ACCOUNTS; RECORDS AND REPORTS.—
859 (a) An Internet poker hub operator shall establish a book
860 of accounts, regularly audit, and make all financial records
861 available to the division. An Internet poker hub operator shall
862 demonstrate that it has a system of maintaining records and
863 reports that are readily available to the division. The records
864 and reports shall include the following:
865 1. Monthly auditable and aggregate financial statements of
866 gaming transactions.
867 2. Calculation of all fees payable to government.
868 3. The identity of players.
869 4. The balance on the player’s account at the start of a
870 session of play.
871 5. The wagers placed on each game time stamped by the games
872 server.
873 6. The result of each game time stamped by the games
874 server.
875 7. The amount won or lost by the player.
876 8. The balance on the player’s account at the end of the
877 game.
878 (b) An Internet poker hub operator shall reconcile all data
879 logs files regarding the registered players’ accounts on a
880 monthly basis.
881 (19) INTERNET POKER HUB OPERATOR; OBLIGATIONS; TECHNICAL
882 SYSTEMS REQUIREMENTS.—
883 (a) Before an Internet poker hub operator can begin
884 intrastate Internet poker operations, an Internet poker hub
885 operator shall establish a physical site in the state that will
886 house the game and database servers and other components and
887 equipment necessary to conduct intrastate Internet poker. In
888 addition, managerial employees of the Internet poker hub
889 operator who manage or oversee the daily operations of the
890 Internet poker hub network must reside in the state.
891 (a) An Internet poker hub operator shall put in place
892 technical systems that materially aid the division in fulfilling
893 its regulatory, consumer protection, and revenue-raising
894 functions and allow the division unrestricted access to and the
895 right to inspect the technical systems.
896 (b) An Internet poker hub operator shall ensure that the
897 network is protected from manipulation or tampering to affect
898 the random probabilities of winning plays.
899 (c) An Internet poker hub operator shall define and
900 document its methodology for the following:
901 1. The development, implementation, and maintenance of
902 gaming software in a manner representative of industry best
903 practice standards.
904 2. Server connectivity requirements that include:
905 a. Minimum game server connectivity requirements that
906 ensure players are protected from losses due to connectivity
907 problems.
908 b. The system’s ability to recover all transactions
909 involving player funds in the event of a failure or malfunction.
910 c. Aborted game procedures.
911 3. Ability of the system to recover all information
912 required for viewing a game interrupted due to loss of
913 connectivity.
914 4. Consumer protection requirements.
915 5. Responsible advertising, marketing, and promotion that
916 ensure that players are not misled through advertising or
917 promotional activities, and will ensure that the terms and
918 conditions of their promotions are followed.
919 6. Anti-money-laundering controls.
920 7. Preventive and detective controls addressing money
921 laundering and fraud risks which shall be documented and
922 implemented.
923 (d) An Internet poker hub operator shall retain all such
924 documentation for at least 12 months.
925 (20) FEE FOR PARTICIPATION.—An Internet poker hub operator
926 shall charge a fee or a tournament fee to registered players for
927 the right to participate in authorized games or tournaments
928 conducted on a state Internet poker network. The participation
929 fee may be a per-hand charge, a flat fee, an hourly rate, or a
930 rake subject to the posted maximum amount but may not be based
931 on the amount won by players. The fee shall be designated and
932 conspicuously posted on the registered player’s screen prior to
933 the start of each proposed or authorized game.
934 (21) PROHIBITED RELATIONSHIPS.—
935 (a) A proprietorship, partnership, corporation,
936 subcontractor, or other entity must obtain a valid intrastate
937 Internet poker business occupational license issued by the
938 division to partner with, contract with, be associated with, or
939 participate in the conduct of intrastate Internet poker
940 operations with an Internet poker hub operator or a cardroom
941 affiliate.
942 (b) A person employed by or performing any function on
943 behalf of the division may not:
944 1. Be an officer, director, owner, or employee of any
945 person or entity licensed by the division.
946 2. Have or hold any interest, direct or indirect, in or
947 engage in any commerce or business relationship with any person
948 licensed by the division.
949 (c) An employee of the division or a relative living in the
950 same household as the employee may not play at any time on a
951 state Internet poker network.
952 (d) An occupational licensee of an Internet poker hub
953 operator or a relative living in the same household as the
954 occupational licensee may not play at any time on a state
955 Internet poker network. This paragraph does not apply to an
956 occupational licensee of a cardroom affiliate.
957 (e) A cardroom affiliate licensee may not sell or lease all
958 or a portion of a percentage of its cardroom licensed under s.
959 849.086 to any person or entity who has accepted any wager of
960 money or other consideration on any online gambling activity,
961 including poker, from any Florida resident since October 13,
962 2006. This paragraph does not apply if the person or entity who
963 accepted the wager is licensed as an Internet poker hub operator
964 or cardroom affiliate.
965 (f) A cardroom affiliate licensee may not contract with any
966 person or entity to operate the cardroom affiliate's portal link
967 to the state Internet poker network on its website, to conduct
968 marketing or promotional activities, or to conduct any other
969 aspects of business associated with the play of intrastate
970 Internet poker if that person or entity has accepted any wager
971 of money or other consideration on any online gambling activity,
972 including poker, from any Florida resident since October 13,
973 2006. This paragraph does not apply if the person or entity who
974 accepted the wager is licensed as an Internet poker hub operator
975 or cardroom affiliate.
976 (22) PROHIBITED ACTS; PENALTIES.—
977 (a) An Internet poker hub operator may conduct any proposed
978 or authorized game under subsection (16) unless specifically
979 prohibited by the division or by this section.
980 (b) A person who has not attained 18 years of age may not
981 hold an intrastate Internet poker occupational license or engage
982 in any game conducted therein.
983 (c) It is a violation of the laws of this state for any
984 entity to offer Internet poker for free or for money or any
985 other consideration to individuals present in this state unless
986 that entity can demonstrate that it is in compliance with the
987 laws and tax regulations of the United States and of this state.
988 (d) Any entity that has accepted any wager of money or
989 other consideration on any online gambling activity, including
990 poker, from any Florida resident since October 13, 2006, is not
991 eligible to apply for licensure and participate in intrastate
992 Internet poker in this state for a period of 3 years after the
993 effective date of this act. However, this prohibition does not
994 disqualify an applicant or subcontractor who accepts online
995 pari-mutuel wagers from any Florida resident through a legal
996 online pari-mutuel wagering entity authorized in another state.
997 (e) Except as otherwise provided by law and in addition to
998 any other penalty, any person who knowingly makes or causes to
999 be made, or aids, assists, or procures another to make, a false
1000 statement in any report, disclosure, application, or other
1001 document required under this section or any rule adopted under
1002 this section is subject to an administrative fine of up to
1003 $10,000.
1004 (f) Any person who manipulates or attempts to manipulate
1005 the outcome, payoff, or operation of the play of intrastate
1006 Internet poker by tampering, collusion, or fraud, or by the use
1007 of any object, instrument, or device, by any means, commits a
1008 felony of the third degree, punishable as provided in s.
1009 775.082, s. 775.083, or s. 775.084.
1010 (g) All penalties imposed and collected under this
1011 subsection shall be deposited into the Pari-mutuel Wagering
1012 Trust Fund.
1013 (23) LICENSE FEES.—
1014 (a) Upon submission of the initial application and
1015 proposal, the applicant for an Internet poker hub operator
1016 license shall pay an initial filing fee of $25,000 to compensate
1017 the division for reasonably anticipated costs to be incurred to
1018 conduct a comprehensive investigation of the applicant to
1019 determine if the applicant is legally, technically, and
1020 financially qualified to become an Internet poker hub operator
1021 and is suitable for licensure. The division shall, by rule,
1022 require the applicant to make an additional payment if necessary
1023 to complete the investigation; however, the total amount
1024 collected under this paragraph may not exceed the actual cost
1025 incurred to conduct the investigation. The division shall, by
1026 rule, set a procedure for refunding any amount of the filing fee
1027 and additional payment collected under this paragraph which is
1028 not used to cover the cost of the investigation.
1029 (b) Upon submission of the initial application for an
1030 Internet poker hub operator license, and annually thereafter, on
1031 the anniversary date of the issuance of the initial license, an
1032 internet poker hub operator licensee shall pay a nonrefundable
1033 license fee of $500,000 for the succeeding 12 months of
1034 licensure to fund the division’s regulation and oversight of the
1035 operation and play of intrastate Internet poker.
1036 (c) Upon submission of the initial application for a
1037 cardroom affiliate license, and annually thereafter, as required
1038 in subsection (11)(b), a cardroom affiliate licensee shall pay a
1039 nonrefundable license fee of $1,000 for the succeeding 12 months
1040 of licensure.
1041 (d) All funds received under this section shall be
1042 deposited by the division with the Chief Financial Officer to
1043 the credit of the Pari-mutuel Wagering Trust Fund.
1044 (24) ADVANCE PAYMENT BY AN INTERNET POKER HUB OPERATOR.
1045 Upon the awarding of a contract to be an Internet poker hub
1046 operator by the division under subsection (6), an Internet poker
1047 hub operator licensee shall pay to the division a nonrefundable
1048 payment of $10 million. This payment shall be treated as an
1049 advance payment to the state by each Internet poker hub operator
1050 and shall be credited against the tax on monthly gross receipts
1051 derived from the play of intrastate Internet poker under
1052 paragraph (25)(a) until the original amount is recouped by each
1053 Internet poker hub operator.
1054 (25) TAX RATE; OTHER PAYMENTS; PENALTIES.—
1055 (a) Each Internet poker hub operator shall pay a tax to the
1056 state of 10 percent of the operator’s monthly gross receipts
1057 derived from the play of intrastate Internet poker. However, an
1058 Internet poker hub operator shall pay no taxes under this
1059 paragraph until the full amount of the advance payment made by
1060 that poker hub operator under subsection (24) has been credited
1061 against the tax. Credit of the advance payment toward the tax
1062 shall be made upon receipt by the division of the monthly report
1063 required under paragraph (b).
1064 (b) The gross receipts tax imposed by this section shall be
1065 paid to the division. Each Internet poker hub operator shall
1066 remit the gross receipts tax and licensee fees to the division
1067 to be deposited with the Chief Financial Officer, to the credit
1068 of the Pari-mutuel Wagering Trust Fund. Such payments shall be
1069 remitted to the division by electronic funds transfer on the 5th
1070 day of each calendar month for taxes and fees imposed for the
1071 preceding month’s intrastate Internet poker activities.
1072 Licensees shall file a report under oath by the 5th day of each
1073 calendar month for all taxes remitted during the preceding
1074 calendar month. Such payments shall be accompanied by a report
1075 under oath showing all intrastate Internet poker activities for
1076 the preceding calendar month and such other information as may
1077 be prescribed by the division.
1078 (c) A licensee who fails to make tax payments as required
1079 under this section is subject to an administrative penalty of up
1080 to $10,000 for each day the tax payment is not remitted. All
1081 penalties imposed and collected under this subsection shall be
1082 deposited in the Pari-mutuel Wagering Trust Fund. If a licensee
1083 fails to pay penalties imposed by order of the division under
1084 this subsection, the division may suspend, revoke, or refuse to
1085 renew the license of an Internet poker hub operator or cardroom
1086 affiliate.
1087 (d) All of the moneys deposited in the Pari-mutuel Wagering
1088 Trust Fund under this section shall be utilized and distributed
1089 in the manner specified in s. 550.135(1) and (2).
1090 (26) DISTRIBUTION OF INCOME DERIVED FROM THE PLAY OF
1091 INTERNET POKER.—
1092 (a) After the tax on the monthly gross receipts derived
1093 from the play of intrastate Internet poker is paid to the state
1094 as specified under subsection (25), the remaining monthly gross
1095 receipts shall be distributed by the Internet poker hub
1096 operators as follows:
1097 1. Seventy percent shall be distributed to eligible
1098 licensed cardroom affiliates.
1099 a.(I) Fifty percent shall be divided and distributed among
1100 the cardroom affiliates based on each cardroom affiliate’s total
1101 rake generated from the play of authorized games defined in s.
1102 849.086(2)(a) for the previous state fiscal year divided by the
1103 total previous year’s rake for all the cardroom affiliates, as
1104 determined by the division.
1105 (II) Fifty percent shall be divided and distributed to the
1106 cardroom affiliates based on the amount wagered for the previous
1107 month through each cardroom affiliate’s portal as determined by
1108 the division, divided by the total amount wagered for the
1109 previous month through all cardroom affiliates’ portals.
1110 b. If two or more cardroom affiliates join together to
1111 operate a portal for purposes of sub-sub-subparagraphs b.(I) and
1112 (II), their portal wagers and previous year’s rake shall be
1113 combined.
1114 c. Each permitholder that receives payments under this
1115 subparagraph shall use at least 4 percent of its monthly gross
1116 receipts from the play of intrastate Internet poker to
1117 supplement pari-mutuel purses or prize money, respectively,
1118 during the permitholder’s current meet or no later than the next
1119 ensuing pari-mutuel meet.
1120 2. Twenty-five percent shall be retained by the Internet
1121 poker hub operators from which they shall pay all costs for the
1122 intrastate Internet poker hub operations.
1123 3. Four percent shall be retained by the Internet poker hub
1124 operators to fund statewide advertising, marketing, and
1125 promotion of the play of intrastate Internet poker on a state
1126 Internet poker network. The division shall perform an annual
1127 audit to verify that the Internet poker hub operators use such
1128 funds solely for the statewide advertising, marketing, and
1129 promotion of the play of intrastate Internet poker on a state
1130 Internet poker network.
1131 4. One percent shall fund services related to the
1132 prevention and treatment of compulsive and addictive gambling
1133 provided by the entity that is under contract with the division
1134 under s. 551.118(2). The division shall be responsible for the
1135 distribution and audit of the funds under this subparagraph.
1136 (b) The distribution of the preceding monthly gross
1137 receipts shall be by the 20th day of each calendar month.
1138 (c) The division shall ensure that all distributions are
1139 made in accordance with this section and may adopt rules to
1140 ensure the implementation and proper distribution of funds.
1141 (d) This subsection does not prevent individual cardrooms
1142 or a number of cardroom affiliates from joining together in a
1143 coalition for the purpose of the marketing and promotion of the
1144 play of intrastate Internet poker on a state Internet poker
1145 network.
1146 (27) SUSPENSION, REVOCATION, OR DENIAL OF LICENSE.—
1147 (a) The division may deny a license or the renewal of a
1148 license, or may suspend or revoke any license, when the
1149 applicant has: violated or failed to comply with section or any
1150 rule adopted pursuant to this section; knowingly caused, aided,
1151 abetted, or conspired with another to cause any person to
1152 violate this section or any rule adopted pursuant to this
1153 section; or obtained a license or permit by fraud,
1154 misrepresentation, or concealment; or if the holder of the
1155 license is no longer eligible under this section.
1156 (b) If a cardroom affiliate’s pari-mutuel permit or license
1157 is suspended or revoked by the division pursuant to chapter 550,
1158 or its cardroom operator’s license is suspended or revoked by
1159 the division pursuant to s. 849.086, the division shall suspend
1160 or revoke the cardroom affiliate’s license. If a cardroom
1161 affiliate’s license is suspended or revoked under this section,
1162 the division may, but is not required to, suspend or revoke the
1163 licensee’s cardroom operator’s license.
1164 (28) PENALTIES.— The division may revoke or suspend any
1165 Internet poker hub operator license or cardroom affiliate
1166 license issued under this section upon the willful violation by
1167 the licensee of this section or any rule adopted pursuant to
1168 this section.
1169 (a) Notwithstanding any other provision of law, the
1170 division may impose an administrative fine not to exceed $10,000
1171 for each violation against any person who has violated or failed
1172 to comply with this section or any rule adopted pursuant to this
1173 section.
1174 (b) Nothwithstanding any other provision of law, the
1175 division may impose an administrative fine, not exceeding
1176 $100,000 for each count or separate offense, upon an Internet
1177 poker hub operator or a cardroom affiliate for willfully
1178 violating this section or any rule adopted pursuant to this
1179 section.
1180 (c) All penalties imposed and collected under this section
1181 shall be deposited into the Pari-mutuel Wagering Trust Fund.
1182 (29) RULEMAKING.—The division may adopt rules pursuant to
1183 ss. 120.536(1) and 120.54 to administer the provisions of this
1184 section.
1185 (30) LEGISLATIVE AUTHORITY; ADMINISTRATION OF SECTION.—The
1186 Legislature finds and declares that it has exclusive authority
1187 over the conduct of intrastate Internet poker in this state.
1188 Only the Division of Pari-mutuel Wagering and other authorized
1189 state agencies shall administer this section and regulate the
1190 intrastate Internet poker industry in the state, including
1191 operation of all Internet poker hub operators and cardroom
1192 affiliates, play of authorized games, and the Internet poker
1193 computer systems authorized in this section, as provided by law
1194 and rules adopted by the division.
1195 Section 3. This act shall take effect July 1, 2011.
1196
1197
1198 ================= T I T L E A M E N D M E N T ================
1199 And the title is amended as follows:
1200 Delete everything before the enacting clause
1201 and insert:
1202 A bill to be entitled
1203 An act relating to Internet poker; creating the
1204 “Internet Poker Consumer Protection and Revenue
1205 Generation Act”; providing for intrastate Internet
1206 poker to be provided to the public by cardroom
1207 operators through a state Internet poker network
1208 operated by licensed Internet poker hub operators;
1209 creating s. 849.087, F.S.; providing legislative
1210 intent; providing definitions; authorizing
1211 participation in and operation of intrastate Internet
1212 poker; providing for the Division of Pari-mutuel
1213 Wagering of the Department of Business and
1214 Professional Regulation to administer the act and
1215 regulate the operation of a state Internet poker
1216 network, Internet poker hub operators, cardroom
1217 affiliates, and the playing of intrastate Internet
1218 poker; authorizing the division to adopt rules,
1219 conduct investigations and monitor operations, review
1220 books and accounts and records, suspend or revoke any
1221 license or permit for a violation, take testimony,
1222 issue summons and subpoenas, monitor and ensure the
1223 proper collection of taxes and fees, and monitor and
1224 ensure that the playing of Internet poker is conducted
1225 fairly and that player information is protected by
1226 Internet poker hub operators; requiring Internet poker
1227 hub operators to be licensed; providing qualifications
1228 and conditions for licensure; providing application
1229 requirements; providing for an advance payment to be
1230 credited toward taxes; providing initial and renewal
1231 license fees; providing for selection of Internet
1232 poker hub operators through competitive procurement
1233 process; requiring payment of certain costs and refund
1234 of amounts collected in excess of the cost; requiring
1235 a surety bond; providing for a contract between the
1236 state and the poker hub operator; requiring the
1237 division to annually determine the need for additional
1238 operators; providing for a cardroom affiliate license
1239 to be issued to a cardroom operator to provide
1240 intrastate Internet poker for play; providing for
1241 applications for the affiliate license and renewal
1242 thereof; providing conditions for licensure and
1243 renewal of licensure as an affiliate; requiring
1244 reporting to and approval by the division of a change
1245 of ownership of the affiliate licensee; prohibiting
1246 certain acts by an affiliate; providing a fee;
1247 providing for employee and business occupational
1248 licenses; requiring certain employees of and certain
1249 companies doing business with a cardroom affiliate or
1250 an Internet poker hub operator to hold an appropriate
1251 occupational license; prohibiting such operator or
1252 affiliate from employing or allowing to be employed
1253 such a person or doing business with such a company if
1254 that person or company does not hold an occupational
1255 license; directing the division to adopt rules
1256 regarding Internet poker hub operator, cardroom
1257 affiliate, and occupational licenses and renewal of
1258 such licenses; providing a fee for occupational
1259 license and renewal thereof; providing penalties for
1260 failure to pay the fee; exempting from licensure a
1261 person holding a valid individual cardroom
1262 occupational license; providing grounds for the
1263 division to deny an application for or revoke,
1264 suspend, or place conditions or restrictions on or
1265 refuse to renew such occupational license; requiring
1266 fingerprints; providing procedures for processing
1267 fingerprints and conducting a criminal history records
1268 check and for payment of costs; providing for
1269 citations and civil penalties; providing requirements
1270 to register and play intrastate Internet poker;
1271 providing for an Internet Poker Self-Exclusion Form;
1272 requiring the Internet poker hub operator to exclude
1273 from play any person who has completed such form;
1274 providing for maintenance of the form and distribution
1275 to cardroom affiliates and the division; requiring the
1276 Internet poker hub operator to display a link to the
1277 website offering services related to the prevention of
1278 compulsive and addictive gambling; limiting liability;
1279 providing requirements for approval of games to be
1280 offered to players; providing requirements for all
1281 offered games and game results and games not
1282 completed; providing requirements to minimize fraud
1283 and cheating; prohibiting action for damages against
1284 the Internet poker hub operator to prevent fraud or
1285 cheating under certain circumstances; providing
1286 requirements for player eligibility and registration
1287 and player accounts; authorizing the Internet poker
1288 hub operator to suspend or revoke player accounts;
1289 providing requirements for poker hub operations;
1290 requiring the Internet poker hub operator to establish
1291 a book of accounts, regularly audit financial records,
1292 and make the records available to the division;
1293 providing technical system requirements; requiring the
1294 Internet poker hub operator to define, document, and
1295 implement certain methodologies relating to its
1296 systems; requiring the Internet poker hub operator to
1297 maintain such documentation for a certain period of
1298 time; providing for player participation fees;
1299 prohibiting certain relationships and acts by
1300 employees of the division and occupational license
1301 holders and certain relatives; authorizing conduct of
1302 proposed and authorized games; prohibiting a person
1303 who has not attained a certain age from holding an
1304 Internet poker occupational license or engaging in any
1305 game conducted; prohibiting offering Internet poker to
1306 persons located in the state except in compliance with
1307 law; providing that an entity that has accepted any
1308 wager on any online gambling activity from a Florida
1309 resident since a certain date is not eligible to apply
1310 for licensure and participate in intrastate Internet
1311 poker in Florida for a specified period of time;
1312 prohibiting false statements; prohibiting manipulation
1313 of Internet poker play and operations; providing civil
1314 and criminal penalties; providing for disposition of
1315 fines collected; providing for license fees to be paid
1316 by the Internet poker hub operator and cardroom
1317 affiliates; providing for disposition and accounting
1318 of fees collected; providing for an advance payment by
1319 the Internet poker hub operator to be credited toward
1320 taxes; providing for the tax rate and procedures for
1321 payment; requiring payments to be accompanied by a
1322 report showing all intrastate Internet poker
1323 activities for the preceding calendar month and
1324 containing such other information as prescribed by the
1325 division; providing penalties for failure to pay taxes
1326 and penalties; providing for use of certain deposits;
1327 providing for distribution of moneys received from
1328 Internet poker hub operations; providing grounds for
1329 the division to deny a license or the renewal thereof
1330 or suspend or revoke a license; providing penalties;
1331 authorizing the division to adopt rules; providing for
1332 administration of the act and regulation of the
1333 intrastate Internet poker industry; providing an
1334 effective date.